Northern District of Illinois

CHICAGO — A Chicago financial adviser has been sentenced to three and a half years in federal prison for swindling more than $3 million from clients, including a man who received compensation from the State of Illinois in a wrongful conviction settlement.

MARCUS E. BOGGS represented to clients and his employer, an investment advisory firm, that he would use client funds to buy and sell securities.  In reality, Boggs spent more than $3 million of his clients’ funds over a ten-year period to pay his personal credit cards and the mortgage on his residence.  His credit card purchases included international vacations, expensive dinners at restaurants, and rent for multiple apartments that Boggs leased in Chicago. 

One of the defrauded clients was wrongfully imprisoned for several years after being convicted of a 1991 sexual assault, kidnapping, and murder of a teenage girl.  After DNA testing exonerated the client and led to his release from prison, he received approximately $5 million from the State of Illinois and retained Boggs to manage and invest some of the money.  Boggs instead stole approximately $800,000 of the client’s funds.

Boggs, 51, of Chicago, pleaded guilty earlier this year to a charge of wire fraud.  In addition to the 36-month prison sentence, U.S. District Judge Mary M. Rowland on Thursday ordered Boggs to pay more than $3.08 million in restitution to the victims.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which filed a civil enforcement action against Boggs.

“Defendant had a personal relationship with his clients and knew what they hoped to achieve with their life savings and retirement,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum.  “But that didn’t stop him from stealing their hard-earned money.”

CHICAGO — A federal jury in Chicago convicted a man of illegally possessing a semi-automatic handgun in Evanston after he tried to flee from police in a car and on foot.

DARIUS MORALES illegally possessed the firearm in Evanston on May 8, 2019.  Evanston Police responded to gun shots fired in an alley and saw a silver Jeep Commander pull out and speed away.  An officer pursued the vehicle at a high rate of speed until the Jeep crashed into a fence in the backyard of a residence.  Morales, who was a passenger in the Jeep, left the gun on the fence and fled on foot.  He was arrested a few blocks away.

After a three-day trial in federal court in Chicago, the jury on Thursday convicted Morales, 31, of Evanston, of illegally possessing the firearm.  Morales had previously been convicted of multiple felonies and was not legally allowed to possess a gun.

Judge Amy J. St. Eve of the U.S. Court of Appeals for the Seventh Circuit, sitting by designation in the U.S. District Court, heard the trial and scheduled sentencing for Nov. 29, 2021, at 1:00 p.m.

The conviction is punishable by a sentence of up to ten years in federal prison.

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

CHICAGO — A Will County man has been arrested on federal charges for allegedly transporting a minor to Illinois from Iowa to engage in criminal sexual activity.

RYAN ZELEK, 28, of Wilmington, Ill., is charged with one count of production of child pornography and one count of transportation of a minor with intent to engage in criminal sexual activity.  The FBI on Tuesday arrested Zelek and conducted a court-authorized search of his residence.  A detention hearing in federal court in Chicago is set for Friday at 1:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes.

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.  Valuable assistance was provided by the Wilmington, Ill., Police Department.  The government is represented by Assistant U.S. Attorney Kate McClelland.

According to a criminal complaint filed in federal court, Zelek communicated with the 13-year-old girl on the social media application Snapchat.  On July 30, 2021, Zelek drove to Iowa, picked up the girl outside of a movie theatre, and drove her to his home in Illinois, where he sexually abused her, the complaint states.  Zelek allegedly used his cell phone to record part of the sexual encounter.  Zelek then drove the victim back to Iowa, the complaint states.

If convicted on the count of producing child pornography, Zelek faces a mandatory minimum sentence of 15 years in federal prison and a maximum of 30 years.  If convicted on the transportation count, Zelek faces a mandatory minimum sentence of ten years and a maximum of life.

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 calling 1-800-843-5678 or logging on to www.cybertipline.com.

CHICAGO — The U.S. Attorney’s Office in Chicago today charged an Indiana man with federal firearm violations for allegedly conspiring to straw purchase a semi-automatic handgun that the charges allege was used to shoot two Chicago Police officers last weekend, including the fatal wounding of Officer Ella French.

JAMEL DANZY purchased the firearm at a federal firearms dealer in Hammond, Ind., on March 18, 2021, and falsely certified on the required forms that he was the actual buyer, according to a criminal complaint filed in U.S. District Court in Chicago.  In reality, Danzy was a straw purchaser who bought the gun at the request of someone whom Danzy knew resided in Chicago, Ill., and was not lawfully allowed to purchase a firearm due to a felony criminal conviction, the complaint states.  Danzy gave the firearm to the Illinois resident shortly after the purchase, the complaint states.

Officer French was shot and killed and another CPD officer was critically wounded Saturday night during a traffic stop of a vehicle on the South Side of Chicago.  The handgun was used in the shooting, the complaint states.  The Illinois resident to whom Danzy gave the gun was one of the vehicle’s occupants and was arrested by responding officers, the complaint states.  At the time of his arrest, the Illinois resident was in possession of the handgun purchased by Danzy, according to the complaint.

Danzy, 29, of Hammond, Ind., is charged with conspiracy to violate federal firearm laws, including knowingly transferring and giving a firearm to an out-of-state resident, knowingly making a false written statement to acquire a firearm, and knowingly disposing of a firearm to a convicted felon.  Danzy made an initial appearance this afternoon in federal court in Chicago and was ordered to remain detained in federal custody.  U.S. Magistrate Judge Jeffrey T. Gilbert scheduled a detention hearing for Wednesday at 2:00 p.m.

“Straw purchasers and firearm traffickers enable violence with deadly consequences,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “Fighting violent crime is a top priority in our office, and we are committed to holding accountable those who engage in illicit firearm transactions.”

U.S. Attorney Lausch announced the charges along with Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Prashant Kolluri.

“Tragedies like this happen when people straw purchase firearms on behalf of those who are prohibited from purchasing and possessing firearms themselves,” said ATF SAC de Tineo.  “ATF remains committed to working with our law enforcement partners and the U.S. Attorney’s Office to investigate these firearms trafficking schemes and prosecute those responsible.”

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.

The federal conspiracy charge against Danzy is punishable by a maximum sentence of five years in federal prison.  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. 

Law enforcement continues to investigate the murder of Officer French and the wounding of the other CPD officer.

CHICAGO — A joint federal and local criminal investigation in the far north suburbs of Chicago has resulted in federal drug or firearm charges against four individuals.

The alleged drug trafficking and illegal firearm possession occurred last winter in Waukegan and Beach Park, according to indictments unsealed this week in U.S. District Court in Chicago.  According to the charges, ROBERT SPURLOCK, 36, of Beach Park, distributed cocaine and illegally possessed a loaded handgun with an obliterated serial number; KURT NASH, JR., 34, of Milwaukee, Wisc., distributed cocaine on two occasions; RAFAEL ALVAREZ-MURILLO, 27, of Waukegan, distributed methamphetamine and illegally possessed a handgun; and JASON NAJERA-PRADO, 31, of Waukegan, illegally possessed two handguns.  Spurlock, Alvarez-Murillo, and Najera-Prado were previously convicted of felonies and were not lawfully allowed to possess firearms.

Spurlock, Nash, and Najera-Prado pleaded not guilty during arraignments Wednesday in federal court in Chicago.  Arraignment for Alvarez-Murillo will be scheduled at a later date.  Six other individuals were charged in state court as part of this investigation.

The federal indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and John Idleburg, Lake County Sheriff.  Assistant U.S. Attorneys Shawn McCarthy and Alejandro Ortega represent the government in the federal cases. 

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

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

CHICAGO — Ten Chicago-area residents have been indicted on federal fraud charges for allegedly scheming to cash counterfeit U.S. Postal Service money orders.

The defendants deposited the counterfeit USPS money orders into various bank accounts to which they had access and then quickly withdrew the funds before the banks learned of the fraudulent nature of the deposits, according to indictments returned July 28, 2021, in U.S. District Court in Chicago.  The defendants had purchased or caused to be purchased the money orders from post offices in amounts less than $10, so that the orders could then be altered to higher amounts – typically between $800 and $1,000 – before the deposits, the charges allege.

Charged with bank fraud are NATHAN R. CHAVIS, 29, of Chicago, Ill.; MARVIN L. COLE, 29, of Chicago Heights, Ill.; REGINALD RUSSELL, 29, of Glenwood, Ill.; DARIUS D. GOODWIN, 26, of Country Club Hills, Ill.; VICTOR J. JOHNSON, 27, of Oak Forest, Ill.; LANCE BRANDON COLE, 27, of Richton Park, Ill.; MUNANG O. EKOI, 26, of Lisle, Ill.; SERNARD D. GILL, JR., 26, of Matteson, Ill.; ARMANI M. SPENCER-SPRATTLIN, 32, of Park Forest, Ill.; and ALEXANDER S. COCROFT, 28, of Country Club Hills, Ill..  Most of the defendants have made initial appearances in federal court in Chicago.

The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  The Elmhurst, Ill., Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorneys L. Heidi Manschreck and Ramon Villalpando.

According to the indictments, Chavis caused at least $158,610 in altered and counterfeit money orders to be deposited into third-party bank accounts; Marvin Cole and Russell were responsible for at least $132,593; Goodwin, Johnson, Lance Cole, Ekoi, Gill, and Spencer-Sprattlin were responsible for at least $895,000; and Cocroft was responsible for at least $207,985.

Bank fraud is punishable by up to 30 years in federal prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.

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 who illegally possessed a loaded handgun during widespread looting in downtown Chicago last summer was sentenced today to 18 months in federal prison.

Chicago Police officers attempted to detain JAVONTE T. WILLIAMS for suspected looting near North State Street and East Lake Street in downtown Chicago at 5:00 a.m. on Aug. 10, 2020.  As officers pursued and arrested Williams, a semi-automatic handgun fell from his body to the ground.  The gun was loaded with multiple rounds of ammunition in the magazine and one in the chamber.

During the investigation, law enforcement uncovered multiple social media postings by Williams in which he boasted about looting in Chicago in the summer of 2020.

Williams, 28, of Chicago, pleaded guilty earlier this year to illegal possession of a firearm by a convicted felon.  He was prohibited from possessing a gun after previously being convicted of a felony firearm offense in the Circuit Court of Cook County, for which he was sentenced to probation. 

U.S. District Judge Virginia M. Kendall imposed the 18-month federal sentence 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.  Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing the charge. 

“During a night of complete lawlessness in the city of Chicago, the defendant put himself at ground zero and endangered the lives of law enforcement, the general public, and himself by carrying a loaded firearm in his waistband,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum.  “The illegal possession of a firearm by a felon is always a dangerous and serious offense.”

Williams’s sentencing was the second sentencing this week in federal court for illegal firearm possession during looting incidents in downtown Chicago last summer.  Judge Kendall on Tuesday sentenced BRANDON PEGUES, of Riverdale, to a year in federal prison for illegally possessing a semiautomatic handgun on the Near South Side on May 31, 2020.

CHICAGO — Two suburban Chicago physicians have been indicted on federal criminal charges for allegedly prescribing opioids to individuals who lacked a legitimate medical need for the drugs.

STANLEY DAVID DEMOREST managed Demorest Consultants LLC, a medical practice in Melrose Park, Ill.  NICHOLAS RECCHIA was employed there as a physician.  From 2015 to 2020, Demorest and Recchia agreed to dispense hydrocodone, oxycodone, fentanyl, and other controlled substances to various individuals who visited Demorest Consultants but received no meaningful physical examination or medical tests, and whom Demorest and Recchia knew had no legitimate medical need for the drugs, according to an indictment returned Monday in U.S. District Court in Chicago.  Demorest, who in 2015 voluntarily surrendered his DEA Registration Number and lost his ability to lawfully prescribe controlled substances, used Recchia’s name and DEA Registration Number to issue prescriptions for controlled substances to patients, the charges allege. 

Demorest and Recchia also caused pharmacies to submit numerous claims to Medicare and Medicaid seeking payment for the improper prescriptions, the indictment states.

The indictment charges Demorest, 65, of Bloomingdale, Ill., and Recchia, 62, of River Grove, Ill., with conspiracy to dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose.  The pair also face individual counts of health care fraud and unlawful dispensing of controlled substances.  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; Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the DEA; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI;  Lamont Pugh III, Special Agent-in-Charge of the Chicago Division  of the U.S. Department of Health and Human Services, Office of Inspector General; and Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Kaitlin G. Klamann and Valerie R. Raedy.

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

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 on a federal arson charge for allegedly setting fire to a building in Chicago last year.

An indictment returned in U.S. District Court in Chicago accuses JOSE VALDOVINOS, 32, of Cicero, Ill., of maliciously damaging and destroying a building at 4000 West 59th Street in Chicago on June 1, 2020.

Valdovinos was arrested Monday.  A detention hearing in federal court is set for Wednesday at 2:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes.

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 Kavitha J. Babu.

“Anyone committing crimes during the course of civil unrest should know that federal law enforcement will use every available tool to hold them accountable,” said U.S. Attorney Lausch.  “The U.S. Attorney’s Office will continue to work with ATF, CPD, and our other federal, state, and local partners to apprehend and charge arsonists and others engaging in violent crime.”

“ATF Special Agents will continue to work with our law enforcement partners to follow every lead related to destructive behavior during civil unrest,” said ATF SAC de Tineo.  “I appreciate the commitment from our colleagues and the U.S. Attorney in charging this case.”

The arson charge is punishable by a minimum sentence of five years in federal prison and a maximum of 20 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 suburban Chicago accountant has been sentenced to more than eight years in federal prison for misappropriating more than $1.1 million from four employers and three lending institutions.

PAUL ERIC COLLINS, 55, of Naperville, Ill., pleaded guilty last year to wire fraud.  U.S. District Judge Elaine E. Bucklo imposed a 98-month prison sentence Wednesday after a hearing in federal court in Chicago.  Judge Bucklo also ordered Collins to pay $1,159,414 in restitution to the victims.

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

“Collins stole funds from his employers, even though he knew that they desperately needed those funds to operate their businesses,” Assistant U.S. Attorney Jacqueline Stern argued in the government’s sentencing memorandum.  “Collins stole from the victims for his own wholly selfish ends.”

Collins was an accountant who handled the finances for four employers from 2013 to 2018.  During that time, Collins stole more than $1 million from the companies by writing corporate checks to himself, his wife, and phony companies he created.  Collins also fraudulently withdrew money from ATMs and charged personal expenses on company credit cards.  He attempted to conceal the thefts by making Ponzi-type payments to certain victims.

Collins also stole more than $70,000 from three lenders by obtaining loans based on false representations.  Collins fraudulently used the identity of one of his employer’s owners and falsely represented that the owner personally guaranteed the loans.  When Collins failed to repay the full amount of the loans and the lenders sought repayment, the owner was left having to dispute the fraudulent guarantee.

WASHINGTON - The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country.  Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions:  New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.

Each strike force region will be led by designated United States Attorneys, who will collaborate with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with federal, state, and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.

“All too often, guns found at crime scenes come from hundreds or even thousands of miles away," said Attorney General Merrick B. Garland.  "We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes.  These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors.  The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”

“Straw purchasers and unlicensed gun sellers enable violence,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “The cross-jurisdictional strike force will increase collaboration with our federal, state, and local law enforcement partners, and enhance our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”

According to gun trace data, a significant number of firearms recovered in Chicago originate outside Chicago and are illegally trafficked into the city.  The new strike force, led by U.S. Attorney Lausch, will help ensure sustained and focused coordination between law enforcement and prosecutors in Chicago with counterparts in the locations where many of the firearms originate.

The strike forces represent one important, concrete step in implementing the Department of Justice’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime - and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.

CHICAGO — A Chicago man was sentenced today to more than a year in federal prison for participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.

NICHOLAS STELLA, 43, pleaded guilty earlier this year to a charge of conspiring to conduct an illegal gambling business.  U.S. District Judge Virginia M. Kendall today sentenced Stella to 15 months in federal prison.

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 Donald "Trey" Eakins, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government was represented by Assistant U.S. Attorneys Terry Kinney and Ankur Srivastava.

The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.

Stella stated in a plea agreement that from 2016 to 2019 he conspired with bookmaker VINCENT DELGIUDICE, also known as “Uncle Mick,” and others to accept wagers on the outcome of professional and collegiate sporting events.  Stella admitted in the plea agreement that he recruited gamblers for Delgiudice’s operation and regularly met with them to pay out winnings or collect on losses.  During the conspiracy, Stella communicated with Delgiudice via text messaging and phone calls, the plea agreement states.  In a text exchange in December 2018, Stella stated to Delgiudice, “Between my two big losers in Minnesota, they’ve dumped 73k,” according to the plea agreement.  In another text exchange cited in the plea agreement, Stella asked DelGiudice shortly before the 2019 Super Bowl to contact the gamblers directly in order to “settle up” after the game.

Delgiudice pleaded guilty earlier this year to a money laundering charge and is awaiting sentencing.

CHICAGO — A Chicago man who allegedly carjacked a vehicle at gunpoint on the city’s West Side and fired a handgun while attempting to carjack another vehicle has been arraigned in federal court.

KIAR EVANS, 22, was indicted earlier this month by a federal grand jury on one count of carjacking, one count of attempted carjacking, one count of discharging a firearm during a crime of violence, one count of brandishing a firearm during a crime of violence, and one count of illegal possession of a firearm by a previously convicted felon.  Evans was arraigned in federal court on July 16, 2021, and pleaded not guilty to the charges.  U.S. District Judge Martha M. Pacold ordered the parties to file a joint status report on Sept. 7, 2021.

The indictment and arraignment were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Caitlin Walgamuth.

According to the indictment and a criminal complaint previously filed in the case, the carjacking and attempted carjacking occurred within minutes of each other on the afternoon of May 20, 2021.  In the attempted carjacking, Evans approached a Chevrolet Impala near the intersection of Independence Boulevard and Congress Parkway in Chicago and fired two shots into the passenger-side window while attempting to get inside, the charges allege.  The driver of the Impala was able to drive away from the scene.

Evans then approached the driver-side window of a Nissan Altima, pointed a firearm at the driver and demanded that the driver exit the vehicle, the charges allege.  The victim complied and Evans drove off in the Nissan, the charges allege.  A short time later, Evans was allegedly driving the stolen vehicle when he was involved in a multi-vehicle crash at the intersection of Harrison Street and Ogden Avenue in Chicago.  Chicago Police officers arrested Evans and discovered a loaded semi-automatic handgun in the Nissan, the charges allege.

As a previously convicted felon, Evans was not lawfully allowed to possess a firearm.

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 firearm discharge count is punishable by a mandatory minimum sentence of ten years in federal prison and a maximum of life, and the firearm brandishing count is punishable by a mandatory minimum of seven years and a maximum of life.  The carjacking and attempted carjacking counts are each punishable by a maximum sentence of 15 years, while the illegal firearm possession charge carries a maximum sentence of ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal grand jury has indicted a former Chicago Public Schools principal on fraud charges for allegedly scheming to fraudulently obtain overtime pay.

A ten-count indictment returned Tuesday in U.S. District Court in Chicago alleges that SARAH JACKSON ABEDELAL carried out the fraud scheme from 2012 to 2019 while serving as Principal of Brennemann Elementary School on the North Side of Chicago.  Abedelal told certain school employees that she would authorize overtime pay for hours the employees would not be required to work, and she directed them to then deliver the proceeds of the unearned overtime to Abedelal or another individual, the indictment states.  Abedelal told the employees who received the overtime that the money would be used to pay legitimate school expenses incurred by Brennemann Elementary, when, in fact, Abedelal intended to convert the money to her own personal use, the indictment states.  The charges allege that Abedelal fraudulently obtained at least $200,000 in CPS money through the scheme.

Abedelal, 57, of Chicago, is charged with ten counts of wire fraud.  She was arrested this morning and is scheduled to make an initial appearance in federal court today at 2:30 p.m. before U.S. Magistrate Judge Heather K. McShain.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; 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 indictment, Abedelal directed the school employees to withdraw the unearned overtime money in cash on the day the paychecks were deposited into their bank accounts.  Abedelal would then meet with the employees individually in her office or classrooms to collect the cash from them, the indictment states.  To conceal and prevent detection of the scheme, Abedelal used the fraudulently obtained money to purchase money orders at a currency exchange and then pay her personal expenses, including the mortgage on her home, 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 Chicago man who allegedly used and attempted to use several minors to engage in sexually explicit conduct and surreptitiously recorded it has been indicted on federal child pornography charges.

MICHAEL PORTER, 55, is charged with seven counts of production and attempted production of child pornography, two counts of receipt of child pornography, and one count of possession of electronic devices containing child pornography, according to an indictment returned Tuesday in U.S. District Court in Chicago.  Arraignment is set for July 22, 2021, at 11:00 a.m., before U.S. Magistrate Judge Jeffrey T. Gilbert.

According to the charges, Porter produced the child pornography after using, persuading, inducing, and enticing several minors to engage in sexually explicit conduct.  He also possessed four hard drives, a cell phone, and a laptop computer that contained pornographic images of a prepubescent minor and a minor who had not attained 12 years of age, the indictment states.

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 Kristen Totten.

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 production count is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years.  Each receipt count is punishable by a minimum sentence of five years and a maximum of 20 years.  The possession count carries a maximum sentence of ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you believe you are a victim of sexual exploitation by Michael Porter, you are encouraged to contact the FBI Chicago Field Office by calling 1-312-421-6700.

CHICAGO — A woman has been arrested on a federal drug charge after allegedly selling two kilograms of cocaine while vacationing in Chicago this week.

MARINA RIVERA, 33, sold the cocaine Wednesday evening in the 3200 block of South Komensky Avenue in the Little Village neighborhood of Chicago, according to a criminal complaint filed in U.S. District Court in Chicago.  Unbeknownst to Rivera, the buyer was cooperating with law enforcement, who conducted surveillance on the transaction, the complaint states.  Rivera was arrested shortly thereafter.

Rivera was staying in a nearby residence this week while on vacation in Chicago from Mexico, the complaint states.  Law enforcement searched the residence and discovered approximately eight kilograms of cocaine inside a suitcase in the bedroom where Rivera was staying, the complaint states.

The complaint charges Rivera with one count of possession of a controlled substance with intent to distribute.  She made an initial appearance in federal court Thursday and was ordered to remain detained in federal custody.  A detention hearing is set for July 14, 2021, at 1:30 p.m., before U.S. Magistrate Judge Heather K. McShain.

The arrest and complaint 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 Division of the U.S. Drug Enforcement Administration.  The government is represented by Assistant U.S. Attorneys Andrew J. Dixon and Megan DeMarco.

The drug charge is punishable by a maximum sentence of life in federal prison. 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.

CHICAGO — A criminal complaint filed today in federal court accuses a man of forcibly assaulting two federal agents and a task force officer in Chicago yesterday morning.

EUGENE MCLAURIN, 28, of Chicago, is charged with one count of using a dangerous and deadly weapon to assault a special agent from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  The charge is punishable by a maximum sentence of 20 years in federal prison.

McLaurin is scheduled to make an initial appearance in federal court today at 1:30 p.m. before U.S. Magistrate Judge Heather K. McShain.  The hearing will be conducted telephonically.

The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of ATF; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Illinois State Police.  The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo and Jared Jodrey.

According to the complaint, two ATF agents and an ATF Task Force officer were driving in an unmarked law enforcement vehicle early Wednesday morning while participating in a federal investigation on the South Side of Chicago.  The officers noticed that a white Chevrolet Malibu sedan was following their vehicle, and they took note of the license plate number, the complaint states.  The driver of the Malibu pulled alongside the officers’ vehicle, and the officers observed the driver’s side window roll down, the complaint states.  A man later identified as McLaurin began shooting at the officers’ vehicle, wounding all three officers, the complaint states.

After the shooting, law enforcement located the Malibu parked on a street in Chicago, the complaint states.  McLaurin was taken into law enforcement custody later Wednesday morning.

The investigation into the shooting remains ongoing.

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

CHICAGO — Three men have been charged in a federal indictment with unlawfully dealing or possessing firearms in Chicago.

JOHNATHAN BURGOS, 28, of Chicago, illegally dealt firearms in Chicago from January to March of last year, according to an indictment returned in U.S. District Court in Chicago.  Burgos also illegally possessed handguns and a semiautomatic rifle on seven occasions last year and this year, the indictment states.  As a previously convicted felon, Burgos was not lawfully allowed to possess the firearms.

Two other convicted felons – ALEJANDRO DAVIS, 29, of Chicago, and DAMIAN REYES, 23, of Chicago – are also charged in the indictment with illegally possessing firearms in the city.

All three defendants were arrested Wednesday and have made initial appearances 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; and David Brown, Superintendent of the Chicago Police Department.  Assistant U.S. Attorney Paul Mower represents the government.

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.

Illegal possession of a firearm by a convicted felon is punishable by a maximum sentence of ten years in federal prison, while dealing firearms without a license is punishable by up to five 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 been charged in federal court with trafficking a loaded submachine gun and dealing cocaine in the city.

JOSUE CANALES, 28, knowingly transferred a loaded Israeli Military Industries Model submachine gun to another individual on Dec. 15, 2020, according to an indictment returned in U.S. District Court in Chicago.  The indictment also accuses Canales of distributing cocaine in Chicago on four occasions in 2019.

Canales was arrested Wednesday and has made an initial appearance 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; and David Brown, Superintendent of the Chicago Police Department.  Assistant U.S. Attorney Paul Mower represents the government.

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.

One of the four drug counts against Canales carries a mandatory minimum sentence of five years in federal prison and a maximum of 40 years.  The three other drug counts are each punishable by a maximum sentence of 20 years, while the firearm count carries a maximum sentence of ten years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal grand jury today indicted City of Chicago Alderman CARRIE M. AUSTIN and her Chief of Staff on bribery offenses for allegedly conspiring to receive home improvements from construction contractors seeking city assistance for a development project in Austin’s Far South Side ward.

Austin, 72, of Chicago, is charged with one count of conspiring to use interstate facilities to promote bribery, two counts of using interstate facilities to promote bribery, and one count of willfully making materially false statements to the FBI.  Austin’s Chief of Staff, CHESTER WILSON JR., 55, of Chicago, is charged with one count of conspiring to use interstate facilities to promote bribery, two counts of using interstate facilities to promote bribery, and one count of theft of government funds.

The indictment was returned today in U.S. District Court in Chicago.  Arraignments have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Anthony Mohatt, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Joseph M. Ferguson, Inspector General for the City of Chicago.  The government is represented by Assistant U.S. Attorneys Andrianna Kastanek and Katie M. Durick.

According to the indictment, starting in 2014 a construction company planned to construct a residential development in Austin’s ward at a cost of approximately $49.6 million.  Under an agreement with the city, the company was responsible for making infrastructure improvements within the project, including construction of new interior streets, street lighting, landscaping, and sidewalk improvements, and was eligible to receive more than $10 million in tax increment financing and other payments from the city. 

The indictment alleges that, beginning in 2016, Austin and Wilson were provided with personal benefits by the owner of the construction company and other contractors in an effort to influence them in their official capacities.  The benefits included home improvements, furniture, and appliances for Austin’s residence, and home improvement materials and services for rental properties owned by Wilson, the indictment states.

According to the charges, in June 2017 a contractor on the development project paid an invoice for $5,250 to cover a portion of the purchase price of kitchen cabinets at Austin’s residence by falsely representing that the cabinets were for an address within the development.  In addition, in July 2017 Austin accepted from a contractor on the project an offer to pay for two “brand new” and “expensive” sump pumps, and to have the contractor’s family member buy and install a new dehumidifier, the indictment states.  Wilson also solicited benefits from a contractor on the project for his rental property, including services for “heating and air,” the charges allege.  In October 2017 the contractor told Wilson that he would pay for a portion of a new HVAC system at Wilson’s property because, “you help me a lot, and I’ll help you,” the indictment states.

The indictment alleges that Austin and Wilson authorized the expenditure of aldermanic menu funds to benefit the construction company for infrastructure within the development, and that on multiple occasions in 2017 and 2018 Austin coordinated with the construction company owner to seek the city’s release of TIF and other payments.

The theft charge against Wilson accuses him of engaging in a separate scheme to purchase Supplemental Nutrition Assistance Program (SNAP) benefits at a discount.  Wilson, who was not eligible for SNAP benefits due to his city of Chicago salary, allegedly obtained a card containing SNAP benefits by paying cash to the recipient in an amount below the face value of the card, 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.  The conspiracy, bribery, and false statement counts are each punishable by up to five years in federal prison, while the theft charge is punishable by up to one year.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Two men have been charged in federal court with conspiring to steal a dozen handguns from a suburban Chicago firearms dealer.

RONEAL NIGHTENGALE and ERIC ROWE conspired to steal the guns from Shoot Point Blank, a firearms dealer and shooting range in Naperville, Ill., on June 1, 2020, according to an indictment returned in U.S. District Court in Chicago.  The indictment alleges that Nightengale drove Rowe and an unindicted co-conspirator to Shoot Point Blank around 9:00 p.m., and that Rowe and the co-conspirator burglarized the facility and stole the guns.

In addition to the conspiracy charge, the indictment charges Nightengale and Rowe with stealing the firearms, possessing the stolen firearms, and illegally possessing the firearms as previously convicted felons. 

Nightengale, 34, of Glendale Heights, Ill., was arrested earlier this month in Arizona.  He pleaded not guilty Tuesday during his arraignment before U.S. Magistrate Judge Sunil R. Harjani in Chicago.  A detention hearing is set for Thursday at 9:15 a.m.

Rowe, 36, of Bellwood, Ill., is not in custody and a warrant has been issued for his arrest.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Robert Marshall, Chief of the Naperville Police Department.  Substantial assistance was provided by the DuPage County Sheriff’s Office.  The government is represented by Assistant U.S. Attorney Jared C. Jodrey.

Each count of stealing firearms from a licensed firearms dealer, illegally possessing stolen firearms, and illegally possessing firearms as a convicted felon carries a maximum sentence of ten years in federal prison, while the conspiracy charge is punishable by up to five 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 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 man has been sentenced to more than 15 years in federal prison for sharing child pornography in an online chat room.

BENNY L. BUTLER, 36, possessed more than 2,800 videos and more than 7,600 images of child pornography on multiple electronic devices.  Butler in 2017 shared several videos and images with users of Chatstep, an anonymous online chat room service.

Butler pleaded guilty earlier this year to one count of transportation of child pornography.  U.S. District Judge Andrea R. Wood on Tuesday sentenced Butler to 15 years and eight months in federal prison, to be followed by 20 years of court-supervised release.  Judge Wood also ordered Butler to pay $47,000 in restitution to the known victims depicted in the child pornography he shared.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  The U.S. Coast Guard Investigative Service provided valuable assistance.

“It is impossible to overstate the seriousness of defendant’s conduct and the need for just punishment,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum.  “Defendant not only possessed a staggering amount of child pornography, but also distributed, downloaded, and traded child pornography with others online.”

ROCKFORD — A former employee of the city of Rochelle was sentenced today in federal court before U.S. District Judge Iain D. Johnston for wire fraud. 

SCOTT KOTESKI, 58, of Rochelle, was sentenced to two years in federal prison and ordered to pay restitution in the amount of $150,332.17. 

Koteski pleaded guilty to the wire fraud charge on March 9, 2021.  According to a plea agreement, starting in 2011, Koteski was selected to sit on the board of directors of a non-profit business association and serve as the association's treasurer.  As treasurer, Koteski handled the invoicing and billing of the member municipalities, and as of February 2012, Koteski had signatory authority on the association’s bank account.  From September 2012 through April 2018, Koteski fraudulently obtained from the association at least $150,000, which he used for his own benefit without the association’s knowledge or consent.  Koteski wrote numerous checks to himself from the association’s bank account, and he deposited the checks into his personal bank account for his personal benefit.  Koteski concealed his acts by writing false information on the memo line of the checks to make it appear they were for reimbursement of personal monies Koteski spent for the association when, in fact, Koteski was not entitled to reimbursement.

Additionally, according to the plea agreement, in 2018 Koteski made online payments from the association’s bank account to pay for a personal credit card and a personal loan.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Illinois State Police assisted in the investigation.  The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.

CHICAGO — A man has been charged in federal court with carjacking and murdering a rideshare driver in Chicago earlier this year.

EDMOND HARRIS, 18, of Chicago, carjacked a Lexus GS sedan from Javier Ramos on March 23, 2021, according to an indictment returned Thursday in U.S. District Court in Chicago.  During the carjacking, Harris brandished a firearm and fatally shot Ramos, the indictment states.

The indictment charges Harris with one count of carjacking, one count of discharging a firearm during a crime of violence, and one count of causing death through the use of a firearm during a crime of violence.  The charges in the indictment carry a mandatory minimum sentence of ten years in federal prison and a maximum sentence of death. 

Harris was taken into federal custody this morning.  An initial court appearance is scheduled for today at 3:15 p.m. before U.S. Magistrate Judge Jeffrey I. Cummings.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Michelle Kramer.

“Senseless acts of violence like the ones charged in this indictment have no place in our society,” said U.S. Attorney Lausch.  “The charges announced today are the direct result of a strong partnership between federal, state, and local law enforcement in Chicago.  We will not hesitate to prosecute violent carjackers to the fullest extent of federal law.”

“Carjacking is a threat to the safety of the community,” said ATF SAC deTineo.  “I pledge the continued full support of the men and women of the Chicago Field Division to work collaboratively with our law enforcement partners to investigate these crimes.” 

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 — The owner of five Chicago-area Pepe’s Mexican Restaurant franchises has been sentenced to more than a year in federal prison for filing false corporate tax returns that underreported $2.5 million in gross receipts and sales.

JUAN C. HURTADO, 45, of Joliet, pleaded guilty earlier this year to one count of making a false statement in a tax return.  U.S. District Judge John F. Kness on Wednesday sentenced Hurtado to 15 months in federal prison and fined him $45,000.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.

“Defendant engaged in this conduct solely out of greed,” Assistant U.S. Attorney Rick D. Young argued in the government’s sentencing memorandum.  “He wanted more money for himself at the expense of other taxpayers who pay their fair share of taxes.”

Hurtado owned Pepe’s franchises in Chicago, Tinley Park, Hickory Hills, Matteson, and Chicago Heights.  Hurtado admitted in a plea agreement that from 2016 to 2018 he caused the filing of eleven materially false corporate tax returns with the IRS, as well as materially false sales and income tax returns with the State of Illinois, that underreported the gross receipts and sales of his restaurants by a combined total of approximately $2.5 million.  Hurtado further admitted that he created false sales reports and gave them to his accountants, knowing the reports would be used as a basis for underreporting the receipts and sales.

ROCKFORD — A Rockford man has been sentenced to two and a half years in federal prison for threatening to kill a deputy U.S. Marshal.

GIANNI GASPARE ANTHONY CARDENAS, 25, pleaded guilty earlier this year to a charge of transmitting a threat in interstate commerce.  U.S. District Judge John J. Tharp, Jr., imposed the 30-month sentence Tuesday 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 Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorney Talia Bucci.

According to a written plea agreement, the deputy U.S. Marshal in February 2018 interviewed Cardenas at a county jail regarding the whereabouts of a federal fugitive.  Cardenas told the deputy U.S. Marshal during the interview that Cardenas would “kick [the deputy's] [expletive]” when Cardenas got out of jail.  The plea agreement stated further that, on or about Oct. 20, 2019, Cardenas sent two threatening emails to the deputy U.S. Marshal.  The first email stated, among other things, “Hopefully we can meet again this time with me not being in handcuffs."  The second email stated, “I’ll kill you.”

CHICAGO — A man and his wife have been charged in federal court in Chicago with participating in a mortgage fraud scheme that defrauded financial institutions out of at least $2.5 million.

MARCO LURIGIO, also known as “Demetrio Cardone,” and SANDY LURIGIO, also known as “Janette Chavez,” owned several Illinois-based companies, including S&G Technologies Inc., O.C. Management Group Inc., Riverview Financial Inc., and Toro Management, Inc.  According to the indictment, the Lurigios recruited buyers to fraudulently obtain mortgage loans for properties on Chicago’s South Side by making and causing to be made materially false representations in documents submitted to financial institutions.  The false representations included documents and statements regarding, among other things, the buyers’ employment, income, assets, source of down payment, and intention to occupy the property as a primary residence, the indictment states.  In some instances, the Lurigios fraudulently claimed to lenders that the buyers were employed by one of the Lurigios’ companies, even though they knew that was untrue, the indictment states.  The alleged fraud scheme lasted from 2011 to 2014, the indictment states.

The indictment was returned Tuesday in U.S. District Court in Chicago.  It charges Marco Lurigio, 45, and Sandy Lurigio, 39, both of Downers Grove, Ill., with eight counts of financial institution fraud.  Arraignments have not yet been scheduled.  

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Michael Powell, Special Agent-in-Charge of the Chicago office of the U.S. Department of Housing and Urban Development, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Jason Yonan and Alejandro Ortega.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of financial institution fraud is punishable by up to 30 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 indictment unsealed today in federal court charges five defendants with conspiring to launder illicit drug proceeds in Chicago for more than a decade.

Charged in the money laundering conspiracy are VIVIANNA LOPEZ, also known as “Mia Flores,” 40; VALERIE GAYTAN, also known as “Olivia Flores,” 45; ARMANDO FLORES, 52, of Round Rock, Texas; LAURA LOPEZ, 58, of Chicago, Ill.; and BIANCA FINNIGAN, 32, of Sycamore, Ill.

The indictment was returned June 9, 2021, in U.S. District Court in Chicago, and ordered unsealed today.  Initial court appearances for Laura Lopez and Finnigan are scheduled to occur telephonically today at 3:00 p.m. before U.S. Magistrate Judge Jeffrey T. Gilbert in Chicago.  Vivianna Lopez, Gaytan, and Armando Flores were arrested today outside of the Northern District of Illinois.  Their initial court appearances in other federal district courts will be held at times to be determined.

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 Field Division of the U.S. Drug Enforcement Administration; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  The government is represented by Assistant U.S. Attorneys Andrew C. Erskine and Erika L. Csicsila.

According to the indictment, the defendants laundered drug trafficking proceeds generated by the husbands of Vivianna Lopez and Gaytan.  The husbands surrendered to federal authorities in December 2008 and were incarcerated by the U.S. Bureau of Prisons, the indictment states.  For the next 12 years, the defendants maintained portions of the drug proceeds at multiple locations, including Laura Lopez’s residence in Chicago and Armando Flores’s residence in Texas, and used the money for the benefit of themselves, the incarcerated husbands, and others, the indictment states.  The conspirators allegedly laundered the money through the use of currency exchanges, credit cards, money orders, gift cards, U.S. mail deliveries, and other means. 

The charges allege that the money was spent on various items, including more than $165,000 in private school tuition for children of Vivianna Lopez and Gaytan, more than $99,000 in international and domestic travel by Vivianna Lopez and Gaytan, more than $80,000 for Vivianna Lopez’s residential rent, and approximately $11,000 in child support for a child of one of the incarcerated husbands.

The indictment seeks forfeiture from Vivianna Lopez and Gaytan in the amount of $504,858.

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

CHICAGO — A man has pleaded guilty to a federal criminal charge for using an explosive device in an attempt to damage a suburban Chicago restaurant last year.

On June 1, 2021, DIEGO VARGAS threw a lit explosive device through the window of Egg Harbor Cafe in Naperville, Ill., resulting in two explosions.  Vargas, 26, of Aurora, pleaded guilty Thursday to one count of maliciously attempting to damage and destroy a building by means of an explosive device.  The charge is punishable by a minimum sentence of five years in federal prison and a maximum of 20 years.  U.S. District Judge Elaine E. Bucklo set sentencing for Sept. 2, 2021. 

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 Naperville Police Department and Aurora Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Barry Jonas and Kate McClelland.

In addition to the restaurant incident, Vargas admitted in a plea agreement that a night earlier he tried to steal cash from an ATM in Aurora.  Vargas admitted that he struck the ATM with a baseball bat and a metal pole from a street sign to try and pry it open.  The ATM, located in the drive-through area of a First Midwest Bank branch in the first block of South Broadway, held more than $50,000 at the time of the attempted theft.

CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for kidnapping and assaulting three women he met online.

KEITH DEWITT DAVIS, 31, assaulted the women in vacant buildings in Calumet City, Ill., in the summer of 2016.  Davis met the women online and used a pretext of engaging in consensual, commercial sex acts to lure them to the vacant buildings.  Once there, he physically assaulted each of the women and raped two of them.  Davis displayed a handgun and pointed it at one of the victims, and he displayed a wrench or pipe in the two other incidents.

Davis pleaded guilty in 2019 to three counts of kidnapping for sexual gratification.  U.S. District Judge Harry D. Leinenweber imposed the sentence after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The case was investigated by the FBI and the Will County Safe Streets Task Force.  Substantial assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.

“Defendant’s crime was vicious,” Assistant U.S. Attorney Abigail L. Peluso argued in the government’s sentencing memorandum.  “Defendant showed a complete disregard for human life and respect for a person’s dignity.”

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 number of violent crimes in Chicago remains stubbornly high, including homicides, shootings, and carjackings, and we have seen troubling increases in these areas since the pandemic began,” said U.S. Attorney Lausch.  “We are using every available federal law enforcement tool to continue to bring quality, impactful cases that hold violent offenders accountable and reduce violent crime in 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 wreak havoc in their communities.  Through enforcement actions, prosecutions, and community partnerships, the U.S. Attorney’s Office works to lower violent crime and make neighborhoods safer.

Enforcement Actions and Prosecution Activity

The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (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 the Chicago Police Department (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 U.S. Attorney’s Office’s Gun Crimes Prosecution Team continues to enhance 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 those Chicago neighborhoods suffering from the most violent crimes,” said U.S. Attorney Lausch.  “Our partnerships with CPD and other state and local law enforcement have never been better.”

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.

Following up on the activities our office reported in October of last year, the U.S. Attorney’s Office remains active in fighting violent crime through various enforcement actions, prosecutions, and sentencings, as illustrated by the examples below: 

• 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.

• Last month, DAVID SANTIAGO, of Chicago, was sentenced to 12 years in federal prison for illegally selling guns to Chicago gang members.  During the investigation law enforcement seized 16 firearms, including rifles and semi-automatic handguns.  Santiago purportedly obtained many of the firearms in Kansas and boasted to the Chicago buyers that the guns were “clean” and “brand new.”  The case was investigated by ATF and CPD.
• RONTRELL TURNIPSEED, of Matteson, Ill., was sentenced in March to ten years in federal prison for engaging in a pattern of racketeering activity that included attempted murder, drug trafficking, and obstruction of justice.  Turnipseed conspired with leadership of the Four Corner Hustlers street gang to violently protect the gang’s drug dealing in Chicago.  Eight co-defendants have pleaded guilty, while three have pleaded not guilty and are awaiting trial.  The probe was led by FBI, ATF, and CPD.  The effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the U.S. using a prosecutor-led, intelligence-driven, multi-agency approach.
• A superseding indictment in March accused JASON BROWN, the alleged leader of the AHK street gang, of illegally possessing four loaded handguns in furtherance of a drug trafficking crime that included distributing methamphetamines.  The superseding indictment also renewed charges previously filed against Brown for allegedly providing material support to the terrorist organization ISIS.  The case was investigated by FBI, CPD, IRS-CI, ISP, USPIS, U.S. Customs and Border Protection, HSI, Lombard, Ill., Police Department, and Addison, Ill., Police Department, with assistance from the National Security Division of the Department of Justice.
• Firearm Trafficking and Firearm Theft Prosecutions

“Straw purchasers and 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, including our colleagues in other U.S. Attorney’s Offices in the Midwest and across the country, to hold accountable individuals or groups who traffic firearms into Chicago.”

• KALIL WARNER, of Chicago, was charged earlier this month with five counts of illegal transfer and possession of a machine gun.  The indictment accuses Warner of transferring and possessing “switch devices,” which are designed to convert handguns into machine guns.  The investigation was led by ATF.
• Earlier this month, three U.S. Army soldiers at Fort Campbell were charged in the Middle District of Tennessee with illegally purchasing and transferring dozens of firearms to the streets of Chicago.  During the probe, five firearms recovered from a shooting scene in Chicago were found to have been purchased at firearms dealers in Tennessee.  Further investigation identified the soldiers as the alleged majority purchasers of the firearms.  Law enforcement in Chicago, including CPD and ATF, assisted in the investigation.
• Last month, SCOTT TREECE, of Rockford, Ill., and KYLE HALL, of Skokie, Ill., were charged with trafficking firearms.  In social media postings, Treece allegedly offered to purchase firearms in Georgia on behalf of others and distribute the guns in the Chicago area.  The investigation was led by ATF.
• DARIUS BROWN, of Chicago, was indicted last month on a federal firearm charge for allegedly straw purchasing multiple handguns in a suburban store on behalf of another individual.  ATF led the probe.
• BENITTA GROSS, of Springfield, Ill., was charged in March with providing a semi-automatic handgun to a convicted felon in the Chicago area whom she knew was not lawfully allowed to possess it.  The investigation was led by ATF and CPD, with valuable assistance from the Cook County State’s Attorney’s Office, Sangamon County State’s Attorney’s Office, Sangamon County Sheriff's Office, USMS, and Springfield Police Department.
• Alleged straw-purchaser DIAMOND SMITH, of Chicago, was charged in March with making false statements in the acquisition of a firearm for allegedly buying handguns in a Chicago suburb on behalf of another individual.  ATF conducted the investigation.
• LEONARD D. JOHNSON was charged in December after law enforcement seized machine guns and more than 100 “switch devices” from his home in the Chicago suburb of Robbins.  Each “switch device” is capable of converting a semi-automatic handgun into a machine gun.  ATF led the probe, with valuable assistance from the Lansing Police Department and Midlothian Police Department.
• BENJAMIN CORTEZ-GOMEZ and GUSTAVO URIEL GOMEZ-HIPOLITO were indicted in November for allegedly trafficking multiple handguns from Indiana to Chicago.  ATF and CPD led the investigation, with assistance from the Cook County Sheriff’s Office and the U.S. Customs and Border Protection’s Air and Marine Operations.

• Carjacking and Robbery 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 violent carjacking late last week in Chicago led to a federal charge against KIAR EVANS, of Chicago.  Evans allegedly took a vehicle at gunpoint near Garfield Park.  The U.S. Attorney’s Office filed the carjacking charge directly in federal court the day after the incident.  FBI and CPD investigated the case.
• ANTONIO EDWARDS, of Chicago, was sentenced last month to more than 18 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the Chicago area and downstate.  Two other members of the crew – ANDREW MCHANEY and JAMES BATES, both of Chicago – previously pleaded guilty and were sentenced to federal prison terms of 14 years and eight years, respectively. The probe was led by the FBI, with assistance from police departments in Chicago, Waukegan, Bradley, Mount Prospect, North Aurora, Skokie, and Homewood.
• Chicago residents FALANDIS RUSSELL and TERRANCE WILLIAMS were charged earlier this year with conspiring to violently rob pawn shops, currency exchanges, and retail stores in Chicago and the suburbs, netting the conspirators more than $22,000 in cash and more than $305,000 worth of jewelry.  The case was investigated by the FBI, with valuable assistance from Police Departments in Chicago, Calumet City, Summit, Burbank, Bolingbrook, Round Lake Beach, Hammond (Ind.), Streamwood, and Arlington Heights.
• DAVID JOHNSON, of Chicago, was charged in February after he allegedly carjacked a vehicle in Orland Park and fired a shot at a police officer who was pursuing him.  Johnson allegedly drove the stolen vehicle to Chicago, where he crashed into another car and fled on foot before being arrested.  ATF, CPD, Oak Forest Police Department, and Orland Park Police Department participated in the probe.
• Carjacking charges were also filed against OMARION FRANKLIN, of Chicago, who allegedly violently took an Infiniti G35 sedan from a victim in Skokie last summer.  FBI investigated, with valuable assistance from the Cook County State’s Attorney’s Office, Skokie Police Department, and CPD.
• An Uber Eats driver was the victim of a carjacking last summer allegedly carried out by JAHEIM HENYARD, of Chicago.  Henyard was also charged with a carjacking in Cicero and an attempted carjacking in Oak Park.  FBI, CPD, Oak Park Police Department, and Cicero Police Department participated in the investigation, with assistance from the Cook County State’s Attorney’s Office.
• Lake County resident ZAYVEON THOMAS was charged in January with attempted carjacking for allegedly trying to violently take a Lexus IS300 sedan from a victim in the parking lot of a north suburban golf course last summer.  FBI led the probe, with assistance from the Cook County State’s Attorney’s Office.

• 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.

• Earlier this month, RODNEY BURNETT, of Chicago, was sentenced to more than nine years in federal prison for illegally possessing ammunition near Garfield Park on the city’s West Side.  As a convicted felon, Burnett was prohibited by federal law from possessing a firearm.  The case was investigated by FBI and CPD.
• Last month, MARIO PRADO, of South Elgin, Ill., who had previously been convicted of a felony firearm offense, was sentenced to nine years in federal prison for illegally possessing a semi-automatic rifle and numerous semi-automatic handguns.  ATF and ISP conducted the probe.

• Convicted felon RAMONE SHAFFERS, of Chicago, was sentenced in January to eleven years in federal prison for illegally possessing a loaded gun and offering to pay witnesses to lie on his behalf.  ATF and CPD investigated.
• Eight-time convicted felon LARRY CARADINE, of Chicago, was sentenced in December to more than five years in federal prison for illegally possessing a loaded handgun in the city’s West Garfield Park neighborhood.  The case was investigated by ATF and CPD, with assistance from the Cook County State’s Attorney’s Office.

• Opioid Prosecutions

Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone.  Public safety is being threatened by unprecedented levels of opioid misuse and overdose.  The Department of Justice is committed to using every available tool to enforce federal drug laws and combat the opioid epidemic.  In the Northern District of Illinois, the U.S. Attorney’s Office has deployed a strategy of aggressive investigations and prosecutions of those who are most responsible for this epidemic.  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. 

“The current opioid epidemic is the deadliest drug crisis in American history,” said U.S. Attorney Lausch.   “We are actively attacking this crisis from all investigative and prosecutorial angles.”

• Suburban Chicago resident DENNIS GERMAN was charged in February with allegedly trafficking fentanyl, cocaine, and heroin, and illegally possessing loaded handguns.  The indictment also accuses German of conspiring with two others to traffic cocaine and heroin last year.  ATF investigated, with assistance from the Midlothian Police Department, Orland Park Police Department, and Dolton Police Department.
• More than 26 individuals were charged with various narcotics trafficking or firearms offenses as part of an investigation into criminal activities on the West Side of Chicago.  As part of the probe, law enforcement shut down a telephone drug hotline utilized by the defendants to sell narcotics.  DEA, ATF and CPD participated in the investigation, with assistance from the Cook County State’s Attorney’s Office, USMS, Cook County Sheriff’s Office, and IRS-CI. 

• Other 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.

• This week, a drug trafficking investigation dubbed “Operation Tragic Blow” resulted in federal charges against 17 individuals for allegedly distributing or attempting to distribute heroin and cocaine in Chicago.  Law enforcement during the multi-year probe seized multiple kilograms of the narcotics.  HSI and CPD led the investigation, which was part of an OCDETF operation.
• Last month, Chinese national XIANBING GAN was sentenced to 14 years in federal prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.  Gan schemed in 2018 to have approximately $534,206 in narcotics proceeds picked up in Chicago and transferred to various bank accounts in China, with the money ultimately intended for drug traffickers in Mexico. The investigation was conducted by HSI and IRS-CI.
• In March, five suspected associates of the Sinaloa Cartel were indicted on drug trafficking charges for allegedly conspiring to distribute cocaine in the Chicago area.  One defendant was recently extradited to the United States to face the charges.  DEA conducted the probe, with valuable assistance from the Justice Department’s Office of International Affairs, U.S. Customs and Border Protection, USMS, and INTERPOL.
• Federal drug and gun charges were filed in February against LARRY DENNIS, of Markham, who allegedly sold suspected crack cocaine on three occasions.  Dennis also allegedly illegally possessed a loaded handgun in his residence in January.  ATF and the Midlothian Police Department investigated the case, with assistance from the Markham Police Department, Dolton Police Department, and Orland Park Police Department.

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 children aged 13-17 to identify a path other than gang membership.  The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and the University of Chicago Crime Lab, which tracks the progress of the children to assess results.

ROCKFORD — A superseding indictment returned Tuesday by a federal grand jury in Rockford adds an additional charge of bank robbery against DEMONTRION DESHAN PHILLIPS, 27, of Rockford.

Phillips was originally charged with one count of bank robbery for allegedly stealing $5,930 in a heist on Apr. 7, 2021, at Midland States Bank, 1700 N. Alpine Rd. in Rockford.  The superseding indictment charges Phillips with an additional count of bank robbery for allegedly taking $4,408 from Midland States Bank, 600 S. State St. in Belvidere, on May 3, 2021. 

Phillips has been ordered detained in federal custody pending trial.  His arraignment on the superseding indictment is set for June 21, 2021, at 10:00 a.m., before U.S. District Judge Iain D. Johnston in Rockford. 

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; Randy Berke, Interim Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.

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

Each count of bank robbery carries a maximum sentence of 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

CHICAGO — A joint federal and local drug trafficking investigation has resulted in federal charges against 17 individuals for distributing or attempting to distribute heroin and cocaine in Chicago.

During the multi-year probe, dubbed “Operation Tragic Blow,” law enforcement seized multiple kilograms of heroin and cocaine, including a 14-kilogram cocaine seizure in Chicago’s Belmont Cragin neighborhood and a two-kilogram heroin seizure in a high-rise apartment building in Chicago’s Buena Park neighborhood.  The joint federal and local investigation, led by U.S. Homeland Security Investigations and the Chicago Police Department, utilized extensive undercover and covert surveillance operations to shut down the defendants’ drug trafficking activities.

Many of the 17 federal defendants were arrested Wednesday and have begun making initial appearances in U.S. District Court in Chicago.  In addition to the 17 federal defendants, two other individuals were charged in state court as part of this investigation.

The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of HSI; and David Brown, Superintendent of CPD.  Substantial assistance was provided by the IRS Criminal Investigation Division in Chicago and the Cook County State’s Attorney’s Office.  Assistant U.S. Attorneys Aaron Bond, Erin Kelly, and Brian Kerwin represent the government. 

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

Charged with a federal drug offense are: YARNELL ALLEN, 41, of Dolton, Ill.; ULISES AVINA, 32, of Chicago; OSCAR BALDERAMA, 42, of Chicago; CELESTINO BARAHONA-SERRANO, 38, of Chicago; DIEGO GALEANA-GONZAGA, 35, of Mexico; MARGARITO GALEANA-GOMEZ, 36, of Mexico; JOSE GONZAGA, 58, of Chicago; RAFAEL MEDELLIN, JR., 32, of Chicago; RICHARD C. RINCON, 39, of Oak Lawn, Ill.; JUAN ROSAS-CABRERA, 31, of Mexico; SERGIO SANCHEZ-CHAVEZ, 36, of Mexico; FRANCISCO SANCHEZ-YANEZ, 32, of Chicago; ANTONIO SEGURA, 39, of Oak Lawn, Ill.; JORGE A. VALDEZ, 40, of Chicago; VIRGINIA VAZQUEZ-PEREZ, 37, of Cicero, Ill.; DELVIN WILLIAMS, 42, of Chicago; and RAFAEL ZARCO-PICAZO, 33, of Chicago.

According to criminal complaints unsealed in U.S. District Court in Chicago, Zarco-Picazo sold distribution levels of cocaine to Jorge Valdez, who in turn re-sold it in smaller quantities to customers in Chicago.  Law enforcement on Jan. 30, 2021, seized 14 kilograms of cocaine from Zarco-Picazo’s Nissan Z sedan, which was parked at a residence in the 2300 block of North Menard Avenue in Chicago, the charges allege.  The cocaine was packed into several bricks and hidden behind a speaker console, the complaint states.

The complaint also describes the heroin seizure in the high-rise apartment building in the 4200 block of North Marine Drive in Chicago.  Galeana-Gomez and Gonzaga had allegedly conspired to sell nearly two kilograms of heroin to an undercover law enforcement officer and an individual who was surreptitiously cooperating with law enforcement.  On the afternoon of Sept. 17, 2020, Gonzaga attempted to sell the heroin, which was wrapped in two vacuum-sealed bricks, to the undercover officer and the cooperating individual in the building’s underground parking garage.  Law enforcement arrested Gonzaga and then searched two apartments on the 27th-floor of the building, where they discovered supplies used to package narcotics, including a heat sealer, vacuum sealer rolls, and a digital scale, the complaint states. 

Other alleged illicit transactions cited in the charges include a two-kilogram cocaine deal on April 30, 2020, involving Segura and Allen behind a residence in the 6100 block of South Talman Avenue in Chicago’s Chicago Lawn neighborhood, and a kilogram of heroin distributed by Galeana-Gonzaga in two separate deliveries – 720 grams to Williams at an apartment building in the Chicago suburb of Brookfield, and 280 grams to Vazquez-Perez in a vehicle in the 2900 block of North Cicero Avenue in Chicago’s Belmont Cragin neighborhood.

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

CHICAGO – Six former railroad employees have been indicted on criminal charges for allegedly fraudulently obtaining federal disability benefits.

The indictments accuse the defendants of working other jobs while providing false information to the U.S. Railroad Retirement Board’s Disability Benefits Division.  The defendants were charged as part of an ongoing, nationwide investigation into alleged fraud perpetrated against benefits programs administered by the RRB to rail workers and their families.   The investigation is being jointly conducted by the RRB Office of Inspector General, FBI, and U.S. Department of Health and Human Services Office of Inspector General.

Charged in indictments returned in the Northern District of Illinois are SCOTT CARLBERG, 50, of Menomonie, Wisc., a former engineer at Soo Line Railroad; RONALD LEE CRIBBS, 49, of Hastings, Fla., a former employee of Chessie Seaboard Consolidated; ROBIE VONDERHAAR, 58, of Guttenberg, Iowa, a former foreman for Dakota, Minnesota & Eastern Railroad Corp.; RICHARD W. BROWNER, JR., 65, of Toms River, N.J., a former assistant line engineer at the New Jersey Transit Corp.; JAMES BONNER, 52, of Shalimar, Fla., a former engineer for Burlington North Santa Fe; and KING BRADLEY, JR., 48, of Medina, Tenn., a former conductor for Illinois Central Railroad.

The indictments were ordered unsealed this week.  The defendants will be arraigned in federal court in Chicago on a date to be set by the Court.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Martin J. Dickman, Inspector General of the RRB; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Lamont Pugh, Special Agent-in-Charge of the Chicago Division  of the HHS-OIG.  Valuable assistance was provided by Brian Jeanfreau, Special Agent-in-Charge of the Coast Guard Investigative Service Gulf Region.  The government is represented by Assistant U.S. Attorneys Richard Rothblatt and Terry Kinney.

“Disability payments from the Railroad Retirement Board are a critical benefit for those who truly need them,” said U.S. Attorney Lausch.  “Individuals who seek to fraudulently obtain these benefits jeopardize the viability of the program and must be held accountable.”

“The fraud alleged in these indictments is appalling,” said RRB IG Dickman.  “My office will continue to pursue individuals who attempt to defraud the USRRB and the actors who may help perpetuate the fraud, whether they be medical professionals, contractors, private employers, or government employees.  I would also like to acknowledge the hardworking prosecutors and agents assigned to this ongoing, national investigation.”

“Disability benefits are a critical lifeline for injured workers,” said FBI SAC Buie.  “Defrauding the U.S. Railroad Retirement Board means stealing resources from hardworking citizens, and we will continue to work with our partners to prevent future abuses.”

“Making false statements and concealing material facts in order to obtain benefits from federally funded programs is wrong and illegal,” said HHS-OIG SAC Pugh.  “Those who receive disability benefits may be deemed eligible for other federal benefits such as Medicare before attaining age 65.  Therefore, falsifying information to receive benefits that individuals are not entitled to wastes valuable taxpayer dollars across multiple federally funded programs.  HHS-OIG will continue to work with our federal partners to identify instances where benefit programs are being defrauded and protect vital taxpayer dollars.”

According to the indictments, Carlberg operated and managed a tanning salon in Wisconsin for six years while simultaneously receiving occupational disability benefits;  Cribbs worked in the construction and landscaping trades for various companies in Florida for six years while simultaneously receiving occupational disability benefits; Vonderhaar managed a construction company in Iowa for three years while simultaneously receiving occupational disability benefits; Browner co-owned and managed a donut shop in New Jersey for six years while simultaneously receiving occupational disability benefits; Bonner captained a chartered fishing boat in Florida for three years while simultaneously receiving occupational disability benefits; and Bradley worked for a construction company for six years while simultaneously receiving total and permanent disability benefits.

The charges seek cash forfeiture from the defendants in the following amounts: Carlberg $273,974; Cribbs $145,000; Vonderhaar $110,732; Browner $226,443; Bonner $10,180; and Bradley $211,650.

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.  Carlberg, Cribbs, Vonderhaar, and Browner face multiple counts of wire fraud, each of which is punishable by up to 20 years in federal prison.  Bonner and Bradley are charged with making materially false statements to the FBI and RRB, which is punishable by up to five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

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

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

TIMOTHY MAPES, 66, of Springfield, Ill., is charged with one count of making false declarations before a grand jury and one count of attempted obstruction of justice, according to an indictment returned in U.S. District Court in Chicago.  Arraignment has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Julia Schwartz, Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer.  The officials noted that the federal investigation into the allegations of public corruption remains ongoing.

According to the indictment, the federal grand jury was investigating possible violations of federal criminal law, including efforts by the Illinois Speaker of the House and an individual acting on the Speaker’s behalf, to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity.  On March 24, 2021, Mapes was granted immunity to testify before the grand jury.  The immunity order provided that no testimony or evidence provided by Mapes could be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order. 

On March 31, 2021, Mapes testified before the grand jury and knowingly made false material declarations in response to several questions about a consultant’s relationship with the Speaker from 2017 to 2019, the indictment states.  Mapes in his testimony denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf, the indictment states.

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The obstruction charge is punishable by up to 20 years in federal prison, while the false declaration charge carries a maximum sentence of five years.

CHICAGO — Twenty-two individuals have been indicted on fraud and identity theft charges for allegedly purchasing and using credit, debit, and gift cards that were stolen in a cyber attack from a national retain chain.

According to an indictment unsealed in the Northern District of Illinois, the cyber attack occurred in 2016 and 2017 when an individual installed a malicious software program on multiple computers of the retail chain, which is headquartered in the Chicago area.  The malware allowed the co-schemer to capture data from more than three million payment cards, including credit cards, debit cards, and gift cards, that had been used at more than 400 of the company’s retail stores.  The co-schemer then sold the card data for $4 million in bitcoin to another individual, who in turn sold it online to thousands of others, including the 22 charged defendants, the indictment states.

The defendants used data from the cards to purchase items at businesses throughout the country, including restaurants, gas stations, and hotels, the charges allege.  At least 80 people were victimized by the defendants’ conduct, the indictment states.

Twenty defendants were arrested this month and have begun making initial appearances in federal courts throughout the country.  Two defendants remain at large and are believed to be residing overseas.  The investigation remains ongoing.

The indictment and arrests 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.  The government is represented by Assistant U.S. Attorneys Peter M. Flanagan and Thomas P. Peabody.

Charged with wire fraud and aggravated identity theft are BARRY SHI, 35, of Rosemead, Calif.; ANDREW DARIEN MCLEOD, 26, of Brooklyn, N.Y.; JAMEL T. WILLIAMS, 30, of Raleigh, N.C.; SAAQUAN RAM, 33, of Grand Rapids, Mich.; JAMES B. GIBBS, 32, of South Carolina; YI LIU, 32, of Temple City, Calif.; CHRISTOPHER JOHNSON, 38, of Monroe Township, N.J.; DAJUAN GEE, 32, of Redmond, Mich.; YANG SONG, 34, of Rosemead, Calif.; JAYVON A. PUGH, 23, of Brooklyn, N.Y.; KADEEM DEAN, 28, of Brooklyn, N.Y.; ENPING QU, 26, of Calif.; CAN JIANG, 27, of San Gabriel, Calif.; ESRON A. MURRELL, 30, of Jamaica, N.Y.; ZANPENG CHEN, 27, of Los Angeles, Calif.; JEFF MURAT, 41, of Miami, Fla.; CHRISTOPHER T. THOMPSON, 32, of Woodland Hills, Calif.; JOHN LIU, 37, of West Covina, Calif.; SADIKIFU NAWAB SHABAZZ, 42, of Atlanta, Ga.; BYRON HICKMAN, 32, of New York, N.Y.; CLIVE BAKER, 26, of New York, N.Y.; and DAVIN SMART, 31, of Spotsylvania, Va. 

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.  Wire fraud is punishable by up to 20 years in federal prison, while aggravated identity theft carries a mandatory, consecutive prison sentence of two years.  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 and charged in federal court with carjacking after he allegedly took a vehicle at gunpoint near Garfield Park in Chicago late last week.

KIAR EVANS, 22, of Chicago, is charged with one count of carjacking in connection with the Thursday afternoon incident.  Evans is scheduled to make an initial appearance in federal court today at 1:00 p.m. before U.S. Magistrate Judge Jeffrey I. Cummings.

The arrest and federal charge were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Caitlin Walgamuth.

According to a criminal complaint filed in U.S. District Court in Chicago, Evans approached the driver’s side window of a Nissan Altima at the intersection of West Congress Parkway and Independence Boulevard in Chicago.  Evans pointed a firearm at the Nissan’s driver and demanded that the driver exit the vehicle, the complaint states.  The victim complied and Evans drove off in the Nissan, the complaint states. 

Shortly after the carjacking, Evans was driving the stolen Nissan when he was involved in a multi-vehicle crash at the intersection of Harrison Street and Ogden Avenue in Chicago, the complaint states.  Chicago Police officers arrested Evans and discovered a loaded semi-automatic handgun in the Nissan, the complaint states.

The public is reminded that a complaint is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The carjacking charge is punishable by a maximum sentence of 15 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A north suburban businessman pleaded guilty today to willfully evading more than $2.4 million in income taxes.

ANTHONY D. PANICO, 68, of Libertyville, pleaded guilty to one count of tax evasion.  The conviction is punishable by up to five years in federal prison.  U.S. District Judge John Z. Lee set sentencing for Aug. 31, 2021.

Panico owned Libertyville-based AP Capital Management LLC, and he operated, controlled, or was otherwise associated with several other business entities.  From 2010 to 2017, he received more than $9.2 million of income for which he was required to file returns and pay taxes.  Panico admitted in a plea agreement that he willfully failed to file federal or state income tax returns for each of those years, resulting in a total federal and state tax loss of approximately $2,462,934.    

Panico admitted that he attempted to conceal his receipt of income by the creation and use of multiple entities, the use of nominees, misidentifying the use of funds he obtained from banks, paying personal expenses from corporate entities he controlled, and using various trust and nominee entities to acquire real estate and other assets.  Several of the entities used by Panico also failed to file tax returns, the plea agreement states.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera D. Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corp.’s Office of Inspector General.  The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.

ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury for the robbery last month of a bank in Rockford. 

DEMONTRION DESHAN PHILLIPS, 27, took approximately $5,930 from the Midland States Bank branch, 1700 N. Alpine Rd. in Rockford, on April 7, 2021.

Phillips is charged with one count of bank robbery, which is punishable by a maximum sentence of 20 years in federal prison.  He pleaded not guilty Wednesday during his arraignment before U.S. District Judge Iain D. Johnston in Rockford.  Judge Johnston ordered Phillips to remain in federal custody pending trial.

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; Randy Berke, Interim Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department.  The government is represented by Assistant U.S. Attorney Talia Bucci.

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 United States Sentencing Guidelines.

ROCKFORD — A Georgia man was indicted Tuesday by a federal grand jury in Rockford on fraud charges involving unemployment compensation claims and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

ROBERT CARTER, 27, of Hampton, Ga., was charged with three counts of wire fraud.  Arraignment is set for May 14, 2021, at 9:00 a.m., before U.S. Magistrate Judge Lisa A. Jensen in Rockford.

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 Region of the Department of Labor – Office of Inspector General; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

As alleged in the indictment, from June through August 2020, Carter and others schemed to submit fraudulent unemployment insurance claims to the Maryland Division of Unemployment Insurance for claimants whom Carter knew did not work or live in Maryland and were not entitled to benefits.  Carter caused the unemployment claims in his name and others to be sent from Homewood, Ill., and DeKalb, Ill., and he opted to have the benefits paid via debit cards and mailed to residences connected to Carter and others involved in the scheme.  Funds were then withdrawn from the debit cards at financial institutions and ATMs in Illinois.  The fraud scheme resulted in more than $506,000 paid in unemployment benefits, the indictment alleges.

The CARES Act expanded states’ ability to provide unemployment insurance for many workers impacted by the COVID-19 pandemic.  The Act created several benefit programs, including the Federal Pandemic Unemployment Compensation Program, the Pandemic Emergency Unemployment Compensation Program, and the Pandemic Unemployment Assistance Program. 

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud carries a maximum sentence of 20 years in federal prison.  If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

CHICAGO — A suburban Chicago man admitted in federal court today that he fraudulently misappropriated hundreds of thousands of dollars from a non-profit organization for physically and psychologically challenged children.

STUART NITZKIN, 45, of Deerfield, Ill., pleaded guilty to one count of wire fraud.  U.S. District Judge Sara L. Ellis set sentencing for Aug. 3, 2021.

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

According to a plea agreement, Nitzkin from 2011 to 2016 worked as the Executive Director of an Illinois-based non-profit organization whose mission was the rehabilitation of physically and psychologically challenged children.  During that time, Nitzkin knowingly submitted to the organization invoices and receipts for payment and reimbursement of expenses that Nitzkin claimed were incurred on behalf of the organization.  In reality, Nitzkin knew the expenses were not actually incurred by the organization but rather by Nitzkin for his and others’ personal benefit, the plea agreement states.

The expenses Nitzkin submitted for reimbursement included luxury vacations for Nitzkin and his family to Las Vegas, Florida, Ireland, and Puerto Rico, personal golfing expenses, tickets to Chicago Bulls basketball games and other professional sporting events, personal medical expenses, real estate taxes for his family residence, health club dues, household goods, meals, and car maintenance, the plea agreement states.  Nitzkin also pocketed cash from fundraising events held on behalf of the organization and used the money for personal expenses, the plea agreement states.

Nitkin admitted in the plea agreement that as a result of the scheme he fraudulently misappropriated at least $550,000 from the organization.  The government charged, and intends to prove at sentencing, that Nitzkin misappropriated approximately $831,400.

Wire fraud is punishable by up to 20 years in prison.  The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A suburban Chicago man was sentenced today to 27 years in federal prison for threatening to publish sexually explicit images of an underage girl unless she sent him additional photos and videos of herself.

DAVID J. COTTRELL, 31, of Niles, Ill., enticed the underage victim into sending him sexually explicit photos of herself via online social messaging applications.  After collecting the photos, Cottrell informed the girl that he knew her real name, the name of her school, and her parents’ jobs, and he threatened to post the images online and send them to her family unless the girl sent him additional, more explicit photos and videos, which she did.  Cottrell contacted the victim on a regular basis until her parents discovered the messages and contacted law enforcement.

Cottrell pleaded guilty last year to one count of sexual exploitation of a child and one count of possession of child pornography.  He admitted in a plea agreement that he similarly induced or attempted to induce four other minor victims into sending him sexually explicit images of themselves.  While communicating with the victims online, Cottrell used the screennames “sevendollarcab,” “brightcitylights,” “b88785,” and “YouShallSubmitToMe Sir.”

U.S. District Judge Robert W. Gettleman imposed the sentence today 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 Angie Salazar, Special Agent-in-Charge of the Chicago office of U.S. Homeland Security Investigations.  The government was represented by Assistant U.S. Attorney Charles W. Mulaney.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by calling 1-800-843-5678 or logging on to www.cybertipline.com.

CHICAGO — A Chicago man has been indicted on federal firearm charges for allegedly illegally transferring and possessing “switch” devices that are capable of converting a semi-automatic pistol into a machine gun.

KALIL WARNER, 24, is charged with five counts of illegal transfer and possession of a machine gun.  The indictment accuses Warner of transferring and possessing the switch devices in Chicago on five occasions earlier this year.  Each switch component is solely and exclusively designed to convert weapons into machine guns, the indictment states.  Switch devices, once properly installed, allow a handgun to expel more than one projectile by a single pull of the trigger.

Warner pleaded not guilty Monday during his arraignment in U.S. District Court in Chicago.  U.S. District Judge Sharon Johnson Coleman scheduled a status hearing for June 15, 2021, at 10:30 a.m.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The government is represented by Assistant U.S. Attorney Albert Berry III.

Holding illegal firearm offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods.  In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

“Switch devices pose a dangerous threat to public safety and have no place on the streets of Chicago,” said U.S. Attorney Lausch. “Federal law enforcement will act swiftly to neutralize the threat posed by illegal machine guns and keep our communities safe.”

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

CHICAGO – In honor of National Police Week, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today recognized the service of federal, state, and local law enforcement officers, especially those who have made the ultimate sacrifice.

“All of us at the U.S. Attorney’s Office consider it a privilege to work with the brave men and women who serve our communities with honor and integrity,” said U.S. Attorney Lausch.  “National Police Week presents a special opportunity to acknowledge their courage and sacrifice.  To them, I say thank you for your valor and commitment to justice.”

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Merrick B. Garland.  “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer.  To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice.  On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

While many National Police Week events have been postponed due to the COVID-19 pandemic, the National Law Enforcement Officers Memorial Fund will host a virtual Candlelight Vigil on Thursday, May 13, 2021, at 7:00 p.m. CDT.  During the vigil, the names of fallen officers who are being added to the wall of the National Law Enforcement Memorial will be read aloud.  The vigil can be viewed live on YouTube here.

According to 2020 statistics reported by the FBI, 46 on-duty law enforcement officers nationwide died as a result of felonious acts, and 47 died in accidents.  One of the officers killed in an on-duty auto accident was Terrence Engle, Chief of the Hampton, Ill., Police Department.

Additionally, hundreds more law enforcement personnel succumbed to COVID-19 in 2020 while bravely protecting their communities.  At least eight of those individuals served in the Northern District of Illinois:

• Marco DiFranco, Chicago Police Department
• Clifford Martin, Chicago Police Department
• Ronald Newman, Chicago Police Department
• Titus Moore, Chicago Police Department
• Sheila Rivera, Cook County Sheriff’s Office
• Richard O’Brien, Cook County Sheriff’s Office
• Antoine P. Jones, Cook County Sheriff’s Office
• Jose P. Marquez, Cook County Sheriff’s Office

“There is no higher calling than to be willing to die for the safety of others,” said U.S. Attorney Lausch.  “We pay a special tribute to those officers who lost their lives in the line of duty.  We will never forget their courage and sacrifice.”

In 1962, President John F. Kennedy signed a proclamation designating May 15 as the annual Peace Officers Memorial Day, and the week in which that date falls as National Police Week.  To learn more about National Police Week, please visit www.policeweek.org.

CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been sentenced to more than 13 years in federal prison for defrauding those clients out of $5.1 million.

DARAYL DAVIS falsely represented to clients that they would receive fixed annual interest payments and guaranteed protection against losses if they invested with his firms - Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC.  Davis claimed that some of the investments would be backed by a well-known multinational life insurance company.  In reality, Davis did not invest the funds as promised, and none of the purported investments had any affiliation with the life insurance company. 

Davis instead spent the money for his own personal benefit, including rent for an eight-bedroom mansion in Los Angeles, airline tickets, luxury hotels, car rentals, a club membership, theater tickets, and other items.  Davis often attempted to conceal the scam by using funds from some investors to make Ponzi-type payments to other investors.

The alleged fraud scheme lasted from at least 2003 to 2018.  In all, Davis defrauded more than 25 victims out of more than $5.1 million.  Many of the victims were retirees who gave Davis all of their savings.

Davis, 48, of Chicago, and formerly of Bowie, Md., pleaded guilty earlier this year to one count of mail fraud.  U.S. District Judge Robert W. Gettleman on Monday imposed a 160-month prison sentence.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Securities and Exchange Commission, which filed a civil complaint against Davis. 

“Davis targeted his victims personally, seeking out fellow church members, individuals who had previously purchased legitimate investment products from him, or ‘friends’ to whom he offered the ‘favor’ of an inside investment opportunity,” Assistant U.S. Attorneys Christopher Catizone and Philip N. Fluhr argued in the government’s sentencing memorandum.  “Davis knew these people trusted him and deliberately exploited that trust.”

CHICAGO — A man has been sentenced to more than nine years in federal prison for illegally possessing ammunition near Garfield Park on Chicago’s West Side.

RODNEY BURNETT, 25, of Chicago, illegally possessed four rounds of .40-caliber ammunition on May 15, 2018.  Burnett, driving a stolen vehicle and fleeing the area where a shooting had recently occurred, led Chicago Police on a high-speed chase that ended when he crashed his car at the intersection of Hamlin and Jackson Boulevards near Garfield Park.  Burnett and two passengers in his vehicle then fled on foot and discarded two firearms.  CPD officers apprehended them a short time later.

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

U.S. District Judge John Z. Lee on April 27, 2021, imposed a 110-month federal prison sentence.  Judge Lee found that, in addition to possessing the ammunition, the government met its burden in proving that Burnett possessed a firearm and was involved in the nearby shooting that preceded the vehicular chase.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government was represented by Assistant U.S. Attorney Katie M. Durick.

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

CHICAGO — Two men have been indicted by a federal grand jury in Chicago for allegedly trafficking firearms.

SCOTT TREECE, 33, of Rockford, Ill., and KYLE HALL, 21, of Skokie, Ill., illegally dealt firearms in the Northern District of Illinois from November 2020 to January 2021, according to an indictment unsealed today in U.S. District Court in Chicago.  In social media postings in January, Treece offered to purchase firearms in Georgia on behalf of others and distribute the guns in the Chicago area, according to a criminal complaint against Treece previously filed in the case.  In one of his social media postings, Treece allegedly posted an image of ammunition and stated, “I’m tellin y’all no bread no poles so y’all better make your minds up I already got 2 [expletive] who sent bread so.”

Treece was arrested in February after he sold a loaded handgun for $550 to a buyer who, unbeknownst to Treece, was cooperating with law enforcement, the complaint states.  The transaction allegedly occurred in a retail store parking lot in Addison, Ill.

Treece and Hall pleaded not guilty today during arraignments in federal court in Chicago.  Treece remains detained in federal custody, while Hall was ordered released with bond conditions.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Assistant U.S. Attorney Jasmina Vajzovic represents the government.

The indictment charges Treece with one count of dealing firearms without a license, two counts of illegally possessing firearms as a previously convicted felon, and one count of witness tampering.  The witness tampering charge alleges that while in custody following his arrest, Treece instructed an individual not to speak to law enforcement about Treece’s alleged trafficking offenses and to tell another person to do the same.

Hall is charged with one count of dealing firearms without a license, and one count of knowingly selling and disposing a firearm to a convicted felon, Treece.

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.  Witness tampering is punishable by up to 20 years in federal prison.  The counts for illegal possession and selling a firearm to a convicted felon each carry a maximum sentence of ten years.  Dealing firearms without a license is punishable by up to five years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal grand jury today indicted former City of Chicago Alderman RICARDO MUNOZ on fraud charges for allegedly using money from a political fund to pay personal expenses.

A 16-count indictment returned in U.S. District Court in Chicago alleges that while serving as Alderman of the 22nd Ward in Chicago, Munoz used money from a political action committee formed by the Chicago Progressive Reform Caucus (CPRC) to pay a relative’s college tuition and other personal expenses, including jewelry, clothing, cell phones, vacations, sports tickets, and airline tickets.  Munoz obtained the money through cash withdrawals and debit card charges from the CPRC’s bank account or by transferring funds from CPRC to another political fund he controlled – Citizens for Munoz (CFM) – and then on to his personal checking account, the indictment states.  Munoz attempted to conceal the fraud scheme by making materially false representations to the Illinois State Board of Elections and staff members and contractors of the CPRC, the indictment states.

CPRC was a political organization whose voting membership consisted of certain Aldermen in the Chicago City Council.  Munoz, who was a member of the City Council from 1993 to 2019, served as chairman of the CPRC and performed the duties of its treasurer.  Public officials were prohibited by law from receiving payments from the CPRC for personal expenditures.

Munoz, 56, of Chicago, is charged with 15 counts of wire fraud and one count of money laundering.  Arraignment in federal court in Chicago has not yet been scheduled.

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

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

CHICAGO — A suburban Chicago man has been sentenced to nine years in federal prison for illegally possessing a semi-automatic rifle and numerous semi-automatic handguns.

MARIO PRADO, 28, illegally possessed the firearms on Feb. 14, 2019, in his residence in South Elgin, Ill.  Law enforcement on that date conducted a court-authorized search of the residence and discovered the rifle and eight handguns.  Prado had previously been convicted of a felony firearm offense in the Circuit Court of Kane County and was not legally allowed to possess a firearm.

Prado pleaded guilty on Nov. 20, 2020, to a federal charge of illegal possession of a firearm by a convicted felon.  U.S. District Judge Sharon Johnson Coleman imposed the nine-year sentence Monday 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 deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Brendan F. Kelly, Director of the Illinois State Police.  The government was represented by Special Assistant U.S. Attorney Niranjan Emani.

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

CHICAGO — A Chicago attorney was indicted today on false statement and tax charges in connection with funds he received from Washington Federal Bank for Savings.

PATRICK D. THOMPSON, 51, is charged with 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., according to an indictment returned in U.S. District in Chicago.  Arraignment has not yet been scheduled.

The 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; Tamera Cantu, Acting 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; Joseph M. Ferguson, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, Jeremy Daniel, and Nicholas Eichenseer.

According to the charges, 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, the indictment states.  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, when Thompson knew he had actually received $219,000 and that $110,000 of it was paid by the bank to a law firm as Thompson’s capital contribution, the indictment states.

The tax charges accuse Thompson of falsely representing on five years of income taxes that he paid interest on money he received from Washington Federal, even though he knew he did not pay interest in the amounts reported on the returns.

Ten other defendants, including several high-ranking former bank employees, were previously charged as part of the ongoing federal criminal investigation into the failure of Washington Federal.

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