Northern District of Illinois

CHICAGO — A suburban Chicago chiropractor has been sentenced to more than a year and a half in federal prison for fraudulently submitting reimbursement claims to private insurers and Medicare for nonexistent treatment.

JOHN KOSLOSKI operated Diagnostic & Therapeutic Rehab in Dolton, Ill.  From 2010 to 2017, Kosloski billed the private insurers for services that he purportedly provided to Amtrak employees and their family members, knowing that he was not actively treating them or had never seen them as patients.  Kosloski paid cash to the Amtrak employees in exchange for the ability to falsely bill using the employees’ and their family members’ personal information.  During the course of his scheme, Kosloski submitted more than 18,000 claims to insurers for services that he knew he did not provide, and he received more than $500,000 in reimbursements for the false claims.

Kosloski, 57, of Beecher, Ill., pleaded guilty last year to one count of health care fraud.  U.S. District Chief Judge Rebecca R. Pallmeyer on Monday imposed a 20-month prison term and ordered Kosloski to pay a $25,000 fine and more than $500,000 in restitution to the insurers.

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 Basil P. Demczak, Special Agent-in-Charge of the Central Region of Amtrak’s Office of Inspector General. 

“In a world that has limited funds to pay for health care, insurance providers paid defendant for fraudulent claims that could have been used to pay for necessary medical services,” Assistant U.S. Attorney Kelly M. Greening argued in the government’s sentencing memorandum.  “He made the choice to defraud insurers over and over again for eight years, stealing hundreds of thousands of dollars.”

CHICAGO — A federal judge in Chicago today sentenced a Chinese national to 14 years in prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.

XIANBING 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.  Unbeknownst to Gan, a purported money courier who picked up the drug proceeds in Chicago was an undercover law enforcement agent.

Gan, 51, is a Chinese national who facilitated the money transfers while residing in Guadalajara, Mexico.  U.S. authorities arrested him in November 2018 at Los Angeles International Airport during a layover on a flight from Hong Kong to Mexico.  He has remained in U.S. custody since then.

A federal jury in Chicago last year convicted Gan on three counts of money laundering and one count of operating an unlicensed money transmitting business.  U.S. District Judge Thomas M. Durkin 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; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. 

“The defendant was part of a recent phenomenon in which a relatively small network of Chinese money brokers based in Mexico have come to dominate international money laundering markets,” Assistant U.S. Attorneys Sean J.B. Franzblau and Richard M. Rothblatt argued in the government’s sentencing memorandum.  “Like defendant, many of these brokers are also engaged in legitimate business, and use that business as cover for and to further money laundering activity.  It does not matter that defendant never personally distributed narcotics – drug distribution and money laundering are two-sides of the same malignant coin.”

CHICAGO — A man has been sentenced 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.

ANTONIO EDWARDS and two co-defendants engaged in a conspiracy to rob a series of cell phone stores in 2017.  The crew conducted takeover-style robberies in which two or three robbers would enter a store and order employees to the back of the store at gunpoint.  The robbers then loaded phones into bags and fled the store.  Edwards personally participated in three of the heists – in Chicago, Waukegan, and Bradley – and he brandished a gun during the Waukegan and Bradley robberies.

Edwards, 26, of Chicago, pleaded guilty to conspiracy and robbery charges, and a jury convicted him after a trial on charges of brandishing a firearm during a crime of violence.  U.S. District Judge Elaine E. Bucklo on Friday imposed a prison sentence of 18 years and eight months.

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 police departments in Chicago, Waukegan, Bradley, Mount Prospect, North Aurora, Skokie, and Homewood.  The government was represented by Assistant U.S. Attorneys Aaron R. Bond and Kristen Totten.

Two other members of the robbery crew – ANDREW MCHANEY, 29, of Chicago, and JAMES BATES, 60, of Chicago – previously pleaded guilty and were sentenced to federal prison terms of more than 14 years and more than eight years, respectively.

ROCKFORD — A federal grand jury returned indictments in separate cases charging two men with illegally possessing machine guns. 

The defendants are charged with possessing devices that were used to convert a conventional semi-automatic pistol into a fully automatic firearm.  The devices are commonly referred to as “switches,” “auto-sears,” or “conversion devices,” among other names.

The indictments were returned Tuesday in U.S. District Court in Rockford.

In one case, JAVAUGHN A. HIXSON, 21, of Rockford, was charged with three counts of possessing a conversion device, and one count of illegal possession of a firearm as a convicted felon.  Hixson pleaded not guilty to the charges during arraignment this afternoon before U.S. Magistrate Judge Lisa A. Jensen.  Hixson was ordered to remain detained in federal custody pending trial.  According to the indictment, Hixson knowingly possessed conversion devices on Oct. 22, 2020, Nov. 5, 2020, and Dec. 8, 2020.  Hixson illegally possessed the firearm - a loaded Glock pistol - on Jan. 4, 2021, the indictment states.

In the other case, MARCUS D. WILLIAMS, 25, of Loves Park, was charged with one count of possessing a firearm that had been converted into a machine gun.  According to the indictment, Williams on Jan. 7, 2021, knowingly possessed a loaded Glock .40-caliber firearm that had been converted into a machine gun by an aftermarket “switch” device.  Williams is currently in the custody of the Illinois Department of Corrections.  His arraignment in federal court has not yet been scheduled.

The indictments were 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 & Explosives; Gary Caruana, Winnebago County Sheriff; and Dan O’Shea, Chief of the Rockford Police Department.  The government is represented in the Hixson case by Assistant U.S. Attorney Talia Bucci, and in the Williams case by Assistant U.S. Attorney Jessica Maveus.

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

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.

CHICAGO — A suburban Chicago woman who trafficked numerous undocumented immigrants from Guatemala was sentenced today to six and a half years in federal prison.

CONCEPCION MALINEK, 50, of Cicero, Ill., pleaded guilty last year to one count of labor trafficking.  From 2009 to 2019, Malinek assisted at least ten undocumented Guatemalan immigrants with illegally entering the U.S. and forced them to work to pay off their debt to her.  Malinek threatened the victims with deportation and separation from their children to force the victims to continue to work and pay Malinek the debt she demanded from them.

In addition to the 78-month prison sentence, U.S. District Judge Edmond E. Chang ordered Malinek to pay $112,545 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 U.S. Department of Homeland Security, U.S. Department of Labor, Cook County Sheriff’s Office, and Chicago Police Department. 

“Malinek controlled her victims’ every move, knowing their whereabouts at all times, the exact amount of each paycheck she stole from them, and what levers to push and pull to keep them all in line,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum.  “Malinek knew her victims were scared of deportation and separation from their loved ones far more than they dreaded the abuse and exploitive actions she imposed on them.”

If you believe you are a victim of labor trafficking, you are encouraged to contact the National Human Trafficking Hotline by calling 1-888-373-7888, or logging on to https://humantraffickinghotline.org/.

CHICAGO — A man who trafficked firearms and re-sold them to Chicago gang members has been sentenced to 12 years in federal prison.

DAVID SANTIAGO, 39, sold firearms and narcotics out of his residence in the Chicago Lawn neighborhood on Chicago’s Southwest Side.  Many of the guns were sold to individuals whom Santiago knew were members of Chicago street gangs.  During one sale that was surreptitiously recorded by an individual cooperating with law enforcement, the individual discussed how he intended to give a firearm to younger members of a gang, to which Santiago responded that he was going to provide one to the “guys” as well.

During the investigation law enforcement seized 16 firearms, including rifles and semi-automatic handguns, as well as more than 100 grams of heroin.  Santiago purportedly obtained many of the firearms in Kansas and boasted to the Chicago buyers that the guns were “clean” and “brand new.”

Santiago pleaded guilty last year to two counts of illegal possession of firearms.  Santiago had previously been convicted of multiple felonies, including four cases involving domestic violence, and was not lawfully allowed to possess a firearm.

U.S. District Judge Robert M. Dow, Jr., imposed the 12-year sentence Thursday after a hearing in federal court in Chicago.

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

“Santiago was running an illegal gun store from his bedroom,” Assistant U.S. Attorney Timothy J. Storino argued in the government’s sentencing memorandum.  “The over-proliferation of firearms in this city and the easy access of firearms in the hands of persons who should not have them has a direct correlation to the cyclical gun violence epidemic in Chicago.”

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 — A Chicago man has been indicted on a federal firearm charge for allegedly straw purchasing handguns in a suburban store on behalf of another individual.

On July 15, 2020, DARIUS BROWN purchased three handguns from a licensed firearms dealer in Mokena, Ill., and falsely certified on federal forms that he was the actual buyer, according to an indictment unsealed today in U.S. District Court in Chicago.  In reality, Brown purchased the guns on behalf of another individual, the charges allege.

Brown, 24, is charged with one count of making a false statement in connection with the acquisition of firearms.  He pleaded not guilty today during his arraignment in federal court in Chicago.  A status hearing was set for April 30, 2021, before U.S. District Judge John Z. Lee.

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 Ankur Srivastava.

“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the violence that can follow,” said U.S. Attorney Lausch.  “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally purchase them.”

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

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

CHICAGO — A Chicago man has been sentenced to three and a half years in federal prison for illegally possessing a loaded handgun in the city’s Austin neighborhood.

ALVIN WASHINGTON, 39, illegally possessed the firearm inside a restaurant in the 5100 block of West Chicago Avenue on May 12, 2020.  A Chicago Police Department Police Observation Device (“POD camera”) captured Washington holding the gun between his legs while sitting near a window in the restaurant.  CPD officers were dispatched to the restaurant, where they conducted a protective pat-down search of Washington and discovered the loaded gun in his waistband.

Washington had previously been convicted of multiple felonies, including a firearm-related offense, and was not legally allowed to possess the gun.

Washington pleaded guilty earlier this year to one count of illegal possession of a firearm.  U.S. District Judge Gary S. Feinerman imposed the 42-month prison sentence Wednesday after a hearing in federal court in Chicago.

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

The government was represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee of the U.S. Attorney’s Office’s Gun Crimes Prosecution Team.  The team works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.

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 — A man has been indicted on criminal charges for allegedly threatening to assault and murder a federal judge in Chicago.

JOSHUA FARNER, 35, of Marion, Ill., is charged with two counts of mailing threatening communications, and one count of threatening to assault and murder a United States judge.  The indictment was returned Monday 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; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Marshals Service.  The government is represented by Assistant U.S. Attorneys Misty N. Wright, Kartik K. Raman, and Vincenza Tomlinson.

According to the indictment, Farner on April 18, 2016, mailed a letter to the judge in Chicago threatening to assault and murder the judge.  The indictment accuses Farner of sending the threatening letter to retaliate against the judge and impede, intimidate, and interfere with the judge’s official duties.

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

CHICAGO — A man has been charged in federal court with conducting an illegal sports gambling business in Chicago and the suburbs.

JOHN AMABILE, 33, of Melrose Park, Ill., is charged with one count of conducting an illegal gambling business, according to a criminal information filed today in U.S. District Court in Chicago.  According to the charge, Amabile conducted an illegal sports bookmaking business in 2018 and 2019 in Chicago, Elmwood Park, and Melrose Park.  The information seeks forfeiture from Amabile of $100,000 in alleged criminally derived proceeds.

Arraignment in federal court in Chicago has not yet been scheduled.

The information 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 Chicago office of the IRS Criminal Investigation Division.   The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava.

The public is reminded that a charge 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 gambling charge carries a maximum sentence of five years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A man from a north suburb of Chicago was sentenced today to more than 13 years in federal prison for conspiring to provide material support to the Islamic State of Iraq and al Sham, a foreign terrorist organization also known as ISIS.

U.S. District Judge Andrea R. Wood imposed the 162-month sentence on EDWARD SCHIMENTI, 39, of Zion, Ill.  A jury in 2019 convicted Schimenti on one count of conspiring to provide material support and resources to ISIS, and one count of making false statements to the FBI.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Zion, Ill., Police Department provided valuable assistance.  The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state, and local law enforcement agencies.  The government was represented by Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois, and Trial Attorney Alexandra S. Hughes of the National Security Division’s Counterterrorism Section.

Evidence at trial revealed that Schimenti advocated on social media for violent extremism in support of the terrorist group.  In 2015, Schimenti began meeting with undercover FBI employees and individuals who, unbeknownst to Schimenti, were cooperating with law enforcement.  During the meetings, Schimenti discussed his devotion to ISIS and his commitment to ISIS principles. 

In 2017, Schimenti furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas.  On April 7, 2017, Schimenti drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.

A co-defendant, JOSEPH D. JONES, 39, of Zion, Ill., was also convicted of the conspiracy charge.  Judge Wood last month sentenced Jones to 12 years in federal prison.

WASHINGTON – An Illinois man was sentenced today to 162 months, the equivalent of 13 ½ years, in prison for conspiring to provide material support to the Islamic State of Iraq and al Sham (ISIS), a foreign terrorist organization.

Edward Schimenti, 39, of Zion was convicted by a federal jury in 2019 on one count of conspiring to provide material support and resources to ISIS, and one count of making false statements to the FBI. According to court documents, Schimenti advocated on social media for violent extremism in support of the terrorist group. In 2015, Schimenti began meeting with undercover FBI employees and individuals who, unbeknownst to Schimenti, were cooperating with law enforcement. During the meetings, Schimenti discussed his devotion to ISIS and his commitment to ISIS principles. 

In 2017, Schimenti furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas. On April 7, 2017, Schimenti drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.

Co-defendant, Joseph D. Jones, 39, of Zion was also convicted of a conspiracy charge and sentenced last month to 12 years in federal prison.

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

The Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state and local law enforcement agencies, investigated the case.

Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois and Trial Attorney Alexandra S. Hughes of the National Security Division’s Counterterrorism Section prosecuted the case.

CHICAGO — A man admitted in federal court today that he threw a lit firework into a Chicago Police vehicle during a period of civil unrest in downtown Chicago last May.

JACOB MICHAEL FAGUNDO, 23, of Chicago, pleaded guilty to one count of interfering with a law enforcement officer during the commission of a civil disorder.  The charge is punishable by up to five years in federal prison.  U.S. District Judge Robert W. Gettleman set sentencing for July 14, 2021, at 10:00 a.m.

The guilty plea 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 Chicago Fire Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney John D. Cooke.

Fagundo admitted in a plea agreement that on the evening of May 30, 2020, he and other individuals approached the unoccupied CPD vehicle in a garage at 30 E. Kinzie St. in the city’s River North neighborhood.  After Fagundo and the other individuals shattered the vehicle’s rear windshield, Fagundo lit a firework and threw it through the open window, the plea agreement states.  The vehicle became engulfed in flames and the Chicago Fire Department was called to extinguish the blaze. 

CPD officers had parked the vehicle in the garage while engaged in their official duties during a period of civil disorder in the city.  In addition to setting fire to the vehicle, Fagundo spray-painted another Chicago Police vehicle earlier in the day, the plea agreement states.

Fagundo admitted that he bought the fireworks, lighter fluid, and other products a day earlier at a department store in Chicago so that he could bring them to the planned protests downtown.

WASHINGTON – The Justice Department today moved to intervene in a disability discrimination lawsuit that private plaintiffs with visual disabilities brought against the City of Chicago under the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). The department’s proposed complaint alleges that the city fails to provide people who are blind, have low vision, or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street. 

Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages, and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,700 intersections, it has installed APSs at only 15 of those intersections. The proposed suit alleges that the lack of APSs at over 99 percent of Chicago’s signalized intersections subjects people who are blind, have low vision, or are deaf-blind to added risks and burdens not faced by sighted pedestrians, including fear of injury or death. 

“The U.S. Attorney’s Office is taking this action to ensure that Chicagoans with disabilities are provided equal access to city services, particularly those services whose purpose is public safety,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We are concerned about the serious lack of accessibility to safe intersection crossings for Chicagoans who are blind, have low vision, or are deaf-blind, and we are confident that our involvement in this important case will ultimately bring a meaningful resolution to the city and its millions of residents, daily commuters, and visitors.”

“The ADA and Section 504 require that individuals with disabilities have equal access to public services, including access to pedestrian crossing information that is critical for safety and for full participation in community life,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “Chicago has determined that safe-crossing information is necessary for sighted pedestrians to navigate throughout the city, and this suit seeks to ensure that the city provides the same benefit to people with visual disabilities.” 

The motion and complaint seeking intervention were jointly filed by the Disability Rights Section of the department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Illinois. The case is being handled by Assistant U.S. Attorneys Patrick Johnson and Sarah J. North, and Trial Attorney Matthew Faiella.

For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

CHICAGO — A suburban Chicago man was sentenced today to two and a half years in federal prison for conducting an illegal sports gambling business and filing false tax returns.

GREGORY EMMETT PALOIAN conducted his illegal sports bookmaking business in Chicago, Melrose Park, and Elmwood Park.  Paloian accepted wagers on the outcome of sporting events, including collegiate games and professional football, basketball, baseball, and hockey games.  Paloian retained the services of a website where his bettors could view odds on sporting events, place bets, and track their winnings and losses.  Paloian and his agents regularly met with the bettors to collect losses or pay out winnings.

From 2012 to 2018, Paloian caused an accountant to file false tax returns that Paloian knew substantially understated his income, including income derived from the operation of his illegal gambling business.  The conduct caused a total loss to the IRS of $172,458, and the Illinois Department of Revenue of $25,238.

Paloian, 66, of Elmwood Park, pleaded guilty earlier this year to one count of conducting an illegal gambling business, and one count of filing a false tax return.  U.S. District Judge Joan Humphrey Lefkow imposed the 30-month sentence after a hearing in federal court in Chicago.

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

“This was a large, high stakes, predatory gambling organization,” Assistant U.S. Attorneys Terry M. Kinney and Ankur Srivastava argued in the government’s sentencing memorandum.  “It was a highly lucrative illegal business which generated hundreds of thousands of dollars of revenue for Paloian and his agents during the many years it was in operation.”

CHICAGO — The self-appointed bishop of a Pennsylvania ministry has been sentenced to 12 years in federal prison for forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.

A jury in 2019 convicted TRACIE DICKEY, also known as “Tracie Williams,” 57, of Pittsburgh, Pa., on wire fraud and labor trafficking charges. 

Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in Pennsylvania, North Carolina, and Florida.  She also purported to operate a travel agency known as World Ambassador Travel.  Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels.  She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, even though her agency never actually booked reservations on behalf of the hotel guests.  The hotel scheme resulted in at least $66,525 in fraudulent proceeds. 

Dickey also collected hundreds of thousands of dollars in wages earned by members of her ministry.  Dickey emotionally and physically abused the members and coerced them into following her rules.  Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules.  Several of Dickey’s victims testified at trial about their ordeals.

U.S. District Judge Sara L. Ellis imposed the 12-year sentence Monday in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh Field Office.  The government was represented by Assistant U.S. Attorney Maureen E. Merin.

CHICAGO – A suburban Chicago tax preparer has been indicted on federal fraud charges for allegedly fraudulently assisting customers in obtaining millions of dollars in loans under the Coronavirus Aid, Relief, and Economic Security Act.

HADI ISBAIH, 39, of Palos Heights, Ill., was charged in an indictment returned Monday in the Northern District of Illinois with four counts of wire fraud.  An initial court appearance is scheduled for today at 2:15 p.m. before U.S. Magistrate Judge Beth W. Jantz.

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; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Sharon Johnson, Special Agent-in-Charge of the Central Region of the U.S. Small Business Administration Office of Inspector General.  The government is represented by Assistant U.S. Attorney Nicholas J. Eichenseer.

“The relief programs provided by the CARES Act were designed to assist small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch.  “Our office is committed to working with our law enforcement partners to root out abuse of these important programs and hold accountable anyone who seeks to fraudulently profit from them.”

“These programs were developed to help out small business owners survive the devastation caused by the COVID-19 pandemic, it’s unfortunate someone thought to take advantage of these programs,” said FBI SAC Buie.  “We are honored to work with our law enforcement partners to identify whom those perpetrators are and ensure they pay for their crimes.”

“This indictment is an important victory for America's taxpayers who play by the rules and have no tolerance for those who make up their own," said IRS-CI Acting SAC Cantu.  "Those that use the CARES Act relief funds as a free money pot steal vital lifelines from those that need it the most during the COVID-19 crisis and could face criminal prosecution and lengthy prison sentences.  IRS Criminal Investigation has committed our resources and provides our financial expertise to pursue COVID-19 fraud of all kinds, and those like Mr. Isbaih will be brought to justice.”

“Falsifying documents to fraudulently gain access to SBA program funds is unconscionable,” said SBA-OIG SAC Johnson.  “SBA-OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

Two sources of relief established by the CARES Act, which was passed in March 2020, were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan program (EIDL).  The programs allowed qualifying small businesses to receive low-interest, government-backed loans to cover a temporary loss of revenue.

According to the indictment, Isbaih owned and operated Flash Tax Service Inc., a tax and investment consulting business in Bridgeview, Ill.  From April to October 2020, Isbaih submitted on behalf of hundreds of Flash Tax customers PPP and EIDL applications that contained materially false statements and misrepresentations about the customers’ businesses, such as gross revenues, expenses, and number of employees, the indictment states.  Isbaih’s false statements and misrepresentations caused millions of dollars in fraudulently obtained PPP and EIDL funds to be disbursed to those customers, the charges allege.

Isbaih charged Flash Tax customers an upfront fee of approximately several hundred dollars before he submitted the fraudulent applications on the customers’ behalf, the indictment states.  If the customers received the PPP or EIDL funds based on those applications, Isbaih charged the customers an additional fee of approximately $1,000, the indictment states.

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

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

CHICAGO — A Chicago man pleaded guilty in federal court today to participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.

NICHOLAS STELLA, 43, pleaded guilty to one count of conspiracy to conduct an illegal gambling business.  The charge is punishable by up to five years in federal prison.  U.S. District Judge Virginia M. Kendall set sentencing for June 22, 2021, at 10:00 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Terry Kinney, Ankur Srivastava, and Abigail Peluso.

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 consultant was indicted today on tax offenses for allegedly underreporting and failing to file federal income taxes.

ANNAZETTE COLLINS, also known as “Annazette Collins-Langston” and “Annazette Collins-Momon-Langston,” 58, of Chicago, is charged with two counts of willfully filing a false individual income tax return, two counts of willfully failing to file a corporate income tax return, and one count of willfully failing to file an individual income tax return.  The indictment was 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; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Sarah E. Streicker, Diane MacArthur, Michelle Kramer, Matthew L. Kutcher, Timothy J. Chapman, and Julia Schwartz.

According to the indictment, Collins willfully filed a false individual tax return for the calendar years 2014 and 2015, and willfully failed to file an individual income tax return for the calendar year 2016.  The indictment also accuses Collins of willfully failing to file a corporate income tax return for the calendar years 2015 and 2016 on behalf of her consulting and lobbying business, Chicago-based Kourtnie Nicole Corp.

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 felony count of filing a false individual income tax return is punishable by up to three years in federal prison.  The misdemeanor counts of willfully failing to file individual or corporate income tax returns each carry a maximum prison sentence of one year.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A woman has been indicted on a federal firearm charge for allegedly providing a semi-automatic handgun to a convicted felon whom she knew was not lawfully allowed to possess it. The convicted felon was also charged.

BENITTA GROSS knowingly disposed of the gun in Chicago on June 20, 2020, to TERRANCE ELKINS, knowing that Elkins was previously convicted of a felony and not lawfully allowed to possess a firearm, according to an indictment returned in U.S. District Court in Chicago.

Gross, 32, of Springfield, Ill., is charged with one count of disposal of a firearm to a prohibited person.  Elkins, 32, of Springfield, Ill., is charged with one count of illegal possession of a firearm by a convicted felon.  Gross and Elkins made initial court appearances Friday before U.S. Magistrate Judge Young B. Kim in Chicago.  Elkins was ordered detained in federal custody, while Gross was ordered released on bond.  A status hearing was scheduled for April 6, 2021, at 10:00 a.m., before U.S. District Judge John J. Tharp, Jr.

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.  Substantial assistance was provided by the Cook County State’s Attorney’s Office, Sangamon County State’s Attorney’s Office, Sangamon County Sheriff's Office, U.S. Marshals Service, and Springfield, Ill., Police Department.  The government is represented by Assistant U.S. Attorney Kartik K. Raman.

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

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

CHICAGO — A federal jury today convicted the former mayor of Portage, Ind., on a bribery charge for soliciting and pocketing money in connection with the awarding of city contracts.

The jury in U.S. District Court in Hammond, Ind., convicted JAMES SNYDER, 43, of Portage, Ind., on one count of bribery.  Evidence at the two-week trial revealed that while serving as mayor, Snyder corruptly solicited and received $13,000 from a business that received more than $1.125 million in city contracts.  The conviction is punishable by up to ten years in federal prison. 

Snyder was also convicted following a prior trial in 2019 of obstructing and impeding collection efforts of the IRS.  He faces a maximum sentence of three years in prison on that charge.  Sentencing for both charges is set for July 1, 2021. 

The verdict today was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Paul Keenan, Special Agent-in-Charge of the Indianapolis Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The Indiana State Police provided valuable assistance.  The government was represented at trial by Assistant U.S. Attorney Jill R. Koster of the Northern District of Indiana, and Assistant U.S. Attorney Ankur Srivastava of the Northern District of Illinois.  The prosecution was supervised by the U.S. Attorney’s Office for the Northern District of Illinois upon recusals by supervisory personnel from the U.S. Attorney’s Office for the Northern District of Indiana.

CHICAGO — A man has been indicted on federal charges for allegedly threatening to commit violence against former President Trump, a federal judge, and the former United States Attorney for the Central District of Illinois.

DAMIEN GRANT, 33, of Peoria, Ill., is charged with three counts of influencing a federal official by threat, two counts of mailing threatening communications, and one count of threatening the President of the United States.  The indictment was returned Tuesday in U.S. District Court in Peoria.  Arraignment has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Sean M. Cox, Special Agent-in-Charge of the Springfield, Ill., Division of the FBI; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Brendan O. Heffner, United States Marshal for the Central District of Illinois.  Valuable assistance in the investigation was provided by the Tazewell County, Ill., Sheriff’s Office.

The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Illinois upon recusal by the U.S. Attorney’s Office for the Central District of Illinois.

According to the indictment, Grant on Nov. 30, 2020, stated in a letter addressed to the U.S. Attorney for the Central District of Illinois, “You have 2 days to drop all charges and investigations against me or im going to make sure you never see Christmas...I might have someone walk in the Court House and blow all you evil [expletive] to pieces.”

The indictment accuses Grant of sending similarly threatening letters in December 2020 to President Trump and a U.S. District Judge in the Central District of Illinois.

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

CHICAGO — A federal judge today sentenced an Indiana man to 38 years in federal prison for kidnapping a ten-year-old child as she walked home from school in Calumet City.

On the afternoon of Dec. 20, 2017, BRYAN PROTHO grabbed the child as she walked on a sidewalk in the south suburb.  Protho forcibly dragged the victim into a sport-utility vehicle and drove away.  He then parked the vehicle in a nearby alley, assaulted the child, and threatened to kill her.  The victim was able to get out of the car and flag down a passing vehicle, and law enforcement was contacted.

A jury last year convicted Protho, 42, of East Chicago, Ind., on one count of kidnapping.  During a two-week trial in federal court in Chicago, the victim testified about her ordeal and identified Protho as her abductor.

U.S. District Judge Andrea R. Wood sentenced Protho to 38 years in prison, to be followed by 15 years of court-supervised release.

The Calumet City Police Department led the investigation, with assistance from the Chicago FBI Field Office and the Lansing Police Department.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher Fletcher, Chief of the Calumet City Police Department; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Richard Slough, Interim Chief of the Lansing Police Department.

“As this innocent child skipped home from school with dreams of the upcoming Christmas break in her head, Protho attacked and forever changed the life of this bright child,” Assistant U.S. Attorneys Christopher V. Parente and Kelly Guzman argued in the government’s sentencing memorandum.  “He is the worst kind of predator – a child predator.”

CHICAGO — The owner of five Chicago-area Pepe’s Mexican Restaurant franchises pleaded guilty in federal court today to filing false corporate tax returns that underreported approximately $2.5 million in gross receipts and sales.

JUAN C. HURTADO, 45, of Joliet, pleaded guilty to one count of making a false statement in a tax return.  The conviction is punishable by up to three years in federal prison.  U.S. District John F. Kness set sentencing for June 7, 2021, at 2:30 p.m.

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.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Tamera D. Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorney Rick D. Young.

CHICAGO — A federal grand jury in Chicago has indicted five suspected associates of the Sinaloa Cartel 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.

Charged with conspiracy to possess a controlled substance with the intent to distribute are ROBERTO VELAZQUEZ MARTINEZ, 36, of Santiago Papasquiaro, Mexico; CAMILO ALVAREZ, 44, of Durango, Mexico; JOSE HERNANDEZ RAMIREZ, 36, of Tamaulipas, Mexico; INES CHAVEZ RODRIGUEZ, 36, of Santiago Papasquiaro, Mexico; and LOUIS REYES VELEZ, 44, of Stickney, Ill.

According to a criminal complaint and indictments filed in U.S. District Court in Chicago, the defendants worked together to attempt to import and distribute cocaine into the United States on behalf of the Sinaloa Cartel in Mexico.  The charges allege that Velazquez Martinez traveled to Chicago in 2018 to attempt to arrange a multi-kilogram cocaine shipment with co-conspirators and two other individuals who, unbeknownst to Velazquez Martinez, were confidentially working with U.S. law enforcement.

Reyes Velez was arrested Tuesday in Cicero, Ill.  He pleaded not guilty at his arraignment Tuesday before U.S. Magistrate Judge Young B. Kim.  A detention hearing for Reyes Velez is scheduled for this afternoon.  Velazquez Martinez was arrested in October 2019 in Lima, Peru, and was extradited in December 2020 to the United States.  He has pleaded not guilty.  His case is set for a status hearing on March 31, 2021, before U.S. District Judge Joan H. Lefkow.

Alvarez, Hernandez Ramirez, and Chavez Rodriguez are believed to be residing in Mexico.  U.S. warrants for their arrests have been issued.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Valuable assistance was provided by the Justice Department’s Office of International Affairs, U.S. Customs and Border Protection, U.S. Marshals Service, and INTERPOL.  The government is represented by Assistant U.S. Attorneys Aaron R. Bond and Matthew J. Hernandez.

The investigation was conducted with the support of the Chicago HIDTA and OCDETF Task Forces, which are comprised of federal, state, and local law enforcement agencies working together to identify, disrupt, and dismantle the most serious drug trafficking organizations.

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 drug conspiracy 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.

CHICAGO — A member of a violent Chicago street gang has been sentenced to ten years in federal prison for engaging in a pattern of racketeering activity that included attempted murder, drug trafficking, and obstruction of justice.

RONTRELL TURNIPSEED, 28, of Matteson, pleaded guilty in 2019 to a racketeering conspiracy charge.  Turnipseed admitted in a plea agreement that he conspired with leadership of the Four Corner Hustlers street gang to engage in a pattern of racketeering activity that included using violence and intimidation to protect the gang’s cocaine and heroin dealing in Chicago.  Turnipseed also admitted participating in the attempted murder of a 15-year-old girl on Aug. 31, 2012, in the West Garfield Park neighborhood of Chicago.  A dispute with a man about selling drugs at a particular location in the neighborhood escalated into a shootout, with Turnipseed and the man firing shots.  Two bullets struck the girl as she walked home from school.  The girl was seriously injured but survived.

While Turnipseed’s case was pending, he obstructed justice by instructing individuals to delete photographs and videos from his social media accounts.  The images showed Turnipseed illegally possessing firearms and drugs and represented evidence in the case against him.

U.S. District Judge Thomas M. Durkin imposed the ten-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; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; 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 investigation was conducted with support from the Organized Crime Drug Enforcement Task Force (OCDETF) and assistance from the Chicago FBI’s Safe Street Task Force, the Chicago High Intensity Drug Trafficking Area Task Force (HIDTA),  ATF’s Chicago Crime Gun Strike Force, and the Chicago Police Gang Investigations Division.  Additional assistance was provided by the Illinois Secretary of State Police Department, U.S. Bureau of Prisons, Illinois Department of Corrections, and Illinois State Police. 

“The distribution of controlled substances, such as cocaine and heroin, leads to predictably dire consequences in the communities in which the drugs are sold and ingested,” Assistant U.S. Attorneys Peter S. Salib, William Dunne, and Kavitha J. Babu argued in the government’s sentencing memorandum.  “And when those sales were combined with the power of the Four Corner Hustlers — a street gang willing and ready to use violence to protect itself — it made for an often lethal combination.”

Turnipseed was indicted on the racketeering charge in 2017 along with eight other alleged members of the Four Corner Hustlers and two additional defendants.  Eight of the co-defendants have pleaded guilty, while three have pleaded not guilty and are awaiting trial.  Turnipseed is the third defendant to be sentenced.

ROCKFORD — A former employee of the City of Rochelle, Ill., pleaded guilty Tuesday to wire fraud for fraudulently obtaining at least $150,000 from a non-profit business association. 

SCOTT KOTESKI, 58, of Rochelle, was selected by the city to sit on the board of directors of a non-profit business association that provided broadband internet technology to smaller municipalities in northern Illinois.  According to a plea agreement, Koteski in 2011 began serving as the association's treasurer, handling the invoicing and billing of member municipalities.  Koteski as of February 2012 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, which he deposited into his personal bank account for his personal benefit.  Koteski concealed his acts by writing false information on the memo line to make it appear the checks 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, Koteski in 2018 made online payments from the association’s bank account to a credit card company to pay balances on his personal credit card, and to an online loan financing company to pay balances on a loan.

Wire fraud is punishable by a maximum sentence of 20 years in federal prison.  U.S. District Judge Iain D. Johnston set sentencing for June 29, 2021, at 10:00 a.m.

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

CHICAGO — A woman has been indicted on federal firearm charges for allegedly straw purchasing handguns in a Chicago suburb on behalf of another individual.

On three occasions in 2019 and 2020, DIAMOND SMITH purchased a total of seven handguns, including two semi-automatic pistols, from a licensed firearms dealer in Oak Forest, Ill., and falsely certified on federal forms that she was the actual buyer, according to an indictment returned in U.S. District Court in Chicago.  In reality, Smith purchased the guns on behalf of another individual, the charges allege.

Smith, 28, of Chicago, is charged with three counts of making false statements in connection with the acquisition of a firearm.  Arraignment is set for today at 2:00 p.m. before U.S. Magistrate Judge Young B. Kim.

The charges were 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 Cornelius Vandenberg.

“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the violence that can follow,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally purchase them.”

“When firearms are purchased on behalf of those who are prohibited from possessing them, it poses immense danger to the community,” said ATF SAC deTineo.  “We will continue to work closely with our partners to identify these straw purchasers.”

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

Each count in the indictment is punishable by a maximum sentence of ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A newly filed federal indictment adds firearm and drug charges against a suburban Chicago man accused of attempting to provide material support to the Islamic State of Iraq and al-Sham, also known as ISIS.

JASON BROWN, also known as “Abdul Ja’ Me” and “Matthew Dobbs,” was originally charged in 2019 with attempting on three separate occasions to provide $500 in cash to ISIS, knowing that the group was engaging in terrorist activity.  A superseding indictment filed in U.S. District Court in Chicago alleges that Brown illegally possessed four loaded handguns in furtherance of a drug trafficking crime that included distributing methamphetamines.  The superseding indictment also accuses Brown of distributing fentanyl and conspiring to possess marijuana plants with the intent to distribute.

Brown, 38, of Lombard, Ill., has been in law enforcement custody since his arrest in 2019.  He pleaded not guilty to the new charges during arraignment today before U.S. Magistrate Judge Sunil R. Harjani.

The superseding indictment was announced by John R. Lausch, United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and David Brown, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Homeland Security Investigations, Lombard (Ill.) Police Department, and Addison (Ill.) Police Department.  The government is represented by Assistant U.S. Attorneys Shoba Pillay, Sean Driscoll and Nicholas Eichenseer of the Northern District of Illinois, with support from the National Security Division, Counterterrorism Section.

The public is reminded that charges contain only accusations and are not evidence of guilt.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

The charges in the superseding indictment and the maximum sentence for each count are as follows:  Three counts of attempting to provide material support to a foreign terrorist organization (20 years); one count of drug conspiracy involving the possession of marijuana plants (life in prison, and a minimum sentence of ten years); one count of distribution of a controlled substance involving fentanyl (life in prison, and a minimum sentence of ten years); one count of distribution of a controlled substance involving marijuana (30 years); one count of possession of methamphetamines with intent to distribute (life in prison, and a minimum sentence of 15 years); one count of illegal possession of a firearm as a convicted felon (ten years); and one count of possession of a firearm in furtherance of a drug trafficking crime (life in prison, and a minimum sentence of five years).

CHICAGO — A man from a north suburb of Chicago was sentenced today to 12 years in federal prison for conspiring to provide material support to the Islamic State of Iraq and al Sham, a foreign terrorist organization also known as ISIS.

U.S. District Judge Andrea R. Wood imposed the sentence on JOSEPH D. JONES, 38, of Zion, Ill.  A jury in 2019 convicted Jones on one count of conspiring to provide material support and resources to ISIS.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Zion, Ill., Police Department provided valuable assistance.  The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of numerous federal, state, and local law enforcement agencies.  The government was represented by Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois, and Trial Attorney Alexandra S. Hughes of the National Security Division’s Counterterrorism Section.

Evidence at trial revealed that Jones advocated on social media for violent extremism in support of the terrorist group.  In 2015, Jones began meeting with undercover FBI employees and individuals who, unbeknownst to Jones, were cooperating with law enforcement.  During the meetings, Jones discussed his devotion to ISIS and his commitment to ISIS principles. 

In 2017, Jones furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas.  On April 7, 2017, Jones drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.

A co-defendant, EDWARD SCHIMENTI, 39, of Zion, Ill., was also convicted of the conspiracy charge, as well as a charge of making false statements to the FBI.  Judge Wood set sentencing for Schimenti for April 9, 2021, at 12:30 p.m.

WASHINGTON – An Illinois man was sentenced today to 12 years in prison for conspiring to provide material support to the Islamic State of Iraq and al Sham, a foreign terrorist organization (aka ISIS).

Joseph D. Jones, 38, of Zion, Illinois, was convicted by a federal jury on one count of conspiring to provide material support and resources to ISIS in 2019.  According to court documents, Jones advocated on social media for violent extremism in support of the terrorist group.  In 2015, Jones began meeting with undercover FBI employees and individuals who, unbeknownst to Jones, were cooperating with law enforcement.  During the meetings, Jones discussed his devotion to ISIS and his commitment to ISIS principles.

In 2017, Jones furnished cellular phones to one of the cooperating individuals, believing the phones would be used to detonate explosive devices in ISIS attacks overseas.  On April 7, 2017, Jones drove with the cooperating individual to O’Hare International Airport in Chicago, with the understanding that the cooperating individual would be traveling to Syria to fight with ISIS.

A co-defendant, Edward Schimenti, 39, of Zion, Illinois, was also convicted of the conspiracy charge, as well as a charge of making false statements to the FBI.  U.S. District Judge Andrea R. Wood set sentencing for Schimenti for April 9, 2021 at 12:30 p.m.

U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois; Assistant Attorney General John C. Demers of the Justice Department’s National Security Division; and Special Agent-in-Charge Emmerson Buie Jr. of the FBI Chicago Field Office made the announcement.

The Chicago Joint Terrorism Task Force comprised of numerous federal, state and local law enforcement agencies investigated the case.

Trial Attorney Alexandra S. Hughes of the Justice Department’s National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Barry Jonas and David Rojas of the Northern District of Illinois prosecuted the case.

CHICAGO — A federal grand jury has indicted two men for allegedly conspiring to violently rob several pawn shops, currency exchanges, and other retail stores in Chicago and the suburbs.

The robbers wore masks and brandished dangerous weapons in 12 heists from July 2020 to January 2021, according to an indictment returned in U.S. District Court in Chicago.  The robbers stole jewelry valued at more than $305,000, as well as more than $22,000 in cash, the indictment states.

Charged with conspiracy to commit robbery are FALANDIS RUSSELL, 25, of Chicago, and TERRANCE WILLIAMS, 24, of Chicago.  Russell is currently in law enforcement custody.  He pleaded not guilty at his arraignment Tuesday, and he is set to appear for a detention hearing this afternoon before U.S. Magistrate Judge Jeffrey T. Gilbert.  Williams has been ordered released on bond.  His arraignment is set for this afternoon before U.S. District Judge Edmond E. Chang.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by Police Departments in Chicago, Calumet City, Summit, Burbank, Bolingbrook, Round Lake Beach, Hammond (Ind.), Streamwood, and Arlington Heights.  The government is represented by Assistant U.S. Attorney Matthew J. McCrobie.

“The charges in this significant case are the result of the strong partnership between federal, state, and local law enforcement in the Chicago area,” said U.S. Attorney Lausch.  “We will continue working together to hold violent offenders accountable.”

“The defendants are accused of a multistate, violent crime spree with 12 armed robberies in almost as many communities,” said FBI SAC Buie.  “The public should feel safer when doing business at local establishments, and we hope they feel secure knowing that justice is being done.”

The indictment identifies the 12 robberies allegedly carried out as part of the conspiracy:

• July 31, 2020: Russell and others robbed Cash America, located in the 1800 block of River Oaks Drive in Calumet City.
• Aug. 10, 2020: Russell and others robbed EZ Pawn, located in the 6100 block of South Archer Street in Summit.
• Aug. 10, 2020: Russell and others robbed Cash America, located in the 4500 block of South Cicero Avenue in Chicago.
• Aug. 28, 2020: Russell and Williams robbed Midwest Title & Loan, located in the 8300 block of South Cicero Avenue in Burbank.
• Aug. 28, 2020: Russell and Williams robbed Cash America, located in the 6300 block of South Kedzie Avenue in Chicago.
• Sept. 25, 2020: Russell, Williams, and others robbed Helzberg Diamonds, located in the 600 block of East Boughton Road in Bolingbrook.
• Oct. 13, 2020: Russell, Williams, and others robbed EZ Pawn, located in the 300 block of West Rollins Road in Round Lake Beach.
• Oct. 21, 2020: Russell and Williams robbed EZ Pawn, located in the 4800 block of South Ashland Avenue in Chicago.
• Nov. 6, 2020: Russell, Williams, and others robbed Cash America, located in the 3200 block of West Lawrence Avenue in Chicago.
• Dec. 16, 2020: Russell, Williams, and others robbed Cash America, located in the 6800 block of Indianapolis Boulevard in Hammond, Ind.
• Jan. 19, 2021: Russell and others robbed EZ Pawn, located in the 900 block of East Irving Park Road in Streamwood.
• Jan. 22, 2021: Russell and Williams robbed EZ Pawn, located in the 1700 block of West Algonquin Road in Arlington Heights.

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 charge in the indictment is punishable by a maximum sentence of 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 has been charged in federal court with inciting rioting involving multiple incidents of property damage and looting in the city last summer.

JAMES MASSEY, 22, is charged with one count of using a facility of interstate commerce to incite a riot.  According to a criminal complaint filed in U.S. District Court in Chicago, Massey on Aug. 9, 2020, posted multiple videos and messages on Facebook calling for people to travel to downtown Chicago to engage in property damage and looting, the complaint states.  In the early morning hours of Aug. 10, 2020, numerous individuals damaged and looted retail stores, predominantly in downtown Chicago and the city’s Near North Side.

Massey was arrested this morning on the federal charge.  He made an initial court appearance this afternoon before U.S. Magistrate Judge Sunil R. Harjani and was ordered released on bond with electronic monitoring and subject to a curfew.  A preliminary hearing was scheduled for March 18, 2021, at 1:30 p.m.

The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Jordan Matthews and Sheri L. Wong.

The investigation was jointly conducted by the Chicago Police Department and FBI.

According to the complaint, Massey sent Facebook messages to numerous individuals directing them to meet at a certain location in Chicago to travel together to the downtown area.  Several people responded to the messages throughout the night to discuss, among other things, the location of property damage and looting activity, the complaint states.  In one of the messages, a Facebook user allegedly stated to others in the group, “We like 13 cars deep.”

One of the locations discussed in the Facebook messages was a marijuana dispensary in the 900 block of West Weed Street on the Near North Side of Chicago.  At approximately 1:00 a.m. on Aug. 10, 2020, several individuals broke into the dispensary by smashing a window with tools they had retrieved from the trunk of Massey’s vehicle, which was parked in the dispensary’s parking lot, the complaint states.

Another incident cited in the complaint occurred at a retail store in the 800 block of North Michigan Avenue in Chicago.  At approximately 1:25 a.m. on August 10, 2020, Massey approached the store with a tire iron while another individual broke a store window, the complaint states.  Massey and several others entered the store, stole numerous coats, and returned to Massey’s vehicle, the complaint states.  Shortly thereafter, an individual allegedly wrote to the Facebook group, “We just hit the [partial name of retail store].”

Massey and others later looted a convenience store in the city’s South Loop neighborhood after individuals broke windows to gain entry and then broke display counters inside, the complaint states.  Shortly before 6:00 a.m., Massey and several others looted a cell phone store in the West Loop neighborhood after offenders broke the side door of the store to gain entrance, 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.  Inciting a riot is punishable by a maximum sentence of five years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A former executive vice president of a Chicago staffing company was sentenced today in federal court for assisting a factory owner with the hiring of undocumented workers.

SERGIO BADANI used his role as Vice President of Operations for a large Chicago staffing company to knowingly conceal from the U.S. government the true identities of 17 undocumented workers.  The workers had previously been identified by law enforcement as undocumented during a civil audit of the factory.  After the factory owners assured the government that the undocumented workers were terminated, the factory owners worked with Badani to hire them back using false identity documents.  Badani admitted that he learned of the illegal scheme and assisted in concealing the information from the government while his staffing company continued to collect more than $1 million in fees from the factory owners.  Badani admitted that he received a portion of the profit from this contract in the form of monetary bonuses.

Badani, 51, of St. Charles, Ill., pleaded guilty last year to one count of conspiracy to commit alien harboring for purposes of commercial advantage.  U.S. District Judge Sara L. Ellis sentenced Badani to two years’ probation and fined him $15,000.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and R. Sean Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of U.S. Homeland Security Investigations.  The U.S. Department of Labor Office of Inspector General and U.S. Social Security Administration provided valuable assistance.

“Undocumented workers are at a significant disadvantage in the workplace, making them much more likely to be exploited by employers,” Assistant U.S. Attorneys Christopher V. Parente and Ashley A. Chung argued in the government’s sentencing memorandum.

“When businesses knowingly hire an illegal workforce, it threatens the integrity of our country’s immigration system, economic health and puts the security of our homeland at risk,” said HSI Acting SAC Fitzgerald.  “HSI is committed to protecting our communities from the abuses of corrupt business owners seeking to gain an illegal advantage and make a steep profit off the backs of others.”

Four employees of the staffing agency’s manufacturing client, KSO MetalFab Inc. of Streamwood, Ill., were previously charged in federal court with knowingly hiring and harboring undocumented workers.  They pleaded not guilty and are awaiting trial.

CHICAGO — An ongoing federal criminal investigation into the failure of Washington Federal Bank for Savings has resulted in charges against four new defendants, three of whom are alleged to have embezzled a total of more than $23 million from the Chicago bank.

Washington Federal was shut down in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans.  Four former Washington Federal employees, including the bank’s Chief Financial Officer and Treasurer, were indicted last year for allegedly conspiring with an Illinois attorney – ROBERT M. KOWALSKI, of Chicago – and others to embezzle money from the bank in the years preceding the closure.  On Thursday, a federal grand jury in Chicago returned a superseding indictment that added four more defendants, including the bank’s former Vice President, bringing the total number of charged defendants to ten. 

The new charges allege that the Vice President – JAMES R. CROTTY, 41, of Tinley Park, Ill. – joined several of the other defendants in a conspiracy to embezzle at least $31 million in bank funds.  Crotty and the other conspirators transferred bank funds to the attorney and the three other new defendants – real estate developers BOGUSLAW KASPROWICZ, 63, of Burbank, Calif., and MIROSLAW KREJZA, 62, of Chicago, and contractor MAREK MATCZUK, 57, of Park Ridge, Ill. – and others, without all of the required documentation and often without any documentation whatsoever, the indictment states.  The conspirators allegedly falsified bank records to conceal the embezzlement from the OCC and the Federal Deposit Insurance Corp.

The new charges further allege that, of the $14.3 million that Kasprowicz embezzled, at least $1.6 million was used by Kasprowicz for the benefit of the bank’s former President, who has since died and is not charged in the indictment.  Kasprowicz allegedly paid credit card accounts in the name of the bank President or an entity associated with him, and also made payments to another bank for a loan on the purchase of a $450,000 Sea Ray powerboat called “Expelliarmus.”

The superseding indictment charges all ten defendants with conspiracy to commit embezzlement.  Kasprowicz also faces several tax charges for allegedly underreporting his personal and corporate income in numerous tax returns.  The indictment also renews tax charges against Robert Kowalski, as well as bankruptcy fraud charges against Robert Kowalski and his sister, JAN R. KOWALSKI, of LaGrange, for allegedly defrauding Robert Kowalski’s creditors and the trustee in his bankruptcy case.

In addition to Crotty, the former bank employees charged in the conspiracy are: ROSALLIE C. CORVITE, of Chicago, who served as Chief Financial Officer and Treasurer; JANE V. IRIONDO, formerly known as Jane V. Tran, of Boise, Idaho, who served as Corporate Secretary; ALICIA MANDUJANO, of Chicago, who worked as a loan servicer; and CATHY M. TORRES, of Chicago, who worked as a loan officer.

Arraignments on the new charges are set for March 4, 2021, at 10:00 a.m., before U.S. District Judge Virginia M. Kendall in Chicago.

The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; 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; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Joseph M. Ferguson, City of Chicago Inspector General; and Elissa Rhee-Lee, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the U.S. Trustee Program and the Department of the Treasury, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Brian Netols, Michelle Petersen, Jeremy Daniel, and Nicholas Eichenseer.

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 — Former U.S. Postal Service employees are among eleven individuals charged with conspiring to steal credit cards and other financial instruments from the mail.

Law enforcement uncovered the 18-month conspiracy through a federal investigation dubbed Operation Cash on Delivery.  The former USPS employees, who at the time worked as mail carriers in the Chicago area, stole credit cards and other financial instruments from the mail and provided them to others in exchange for cash or other items, according to a 20-count indictment unsealed Thursday in federal court in Chicago.  Two of the defendants unlawfully obtained USPS customers’ personal identifying information, including dates of birth and Social Security numbers, which was then used to fraudulently activate the stolen cards and make purchases at various retailers, including Best Buy, Fry’s Electronics, Walmart, and Meijer, the charges allege.

Many of the defendants were arrested Thursday and have begun making initial appearances in federal court in Chicago.

The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Andre Martin, Special Agent-in-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service, Office of Inspector General; and R. Sean Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  The government is represented by Assistant U.S. Attorneys Shy Jackson and Paige Nutini, and Special Assistant U.S. Attorney Peter Madrinan.

“Individuals who attempt to steal from the mail or illegally access personal identifying information must be held accountable,” said U.S. Attorney Lausch.  “Our office will continue to work with our law enforcement partners to investigate and prosecute these serious offenses.”

“Postal Inspectors are committed to ensuring the public’s trust in the U.S. mail system,” said USPIS Inspector-in-Charge Hedrick.  “The U.S. Postal Service relies on its employees to perform their duties with honor and pride.  Postal Inspectors, along with our federal partners, bear the burden of holding responsible those individuals who compromise the security of the U.S. mail at the expense of the public.  Furthermore, this investigation aims to restore the integrity of the mail and deliver justice to the victims of those arrested today.”

“These arrests represent our commitment to work with our law enforcement partners to maintain the integrity and trust in the U.S. mail,” said USPS-OIG SAC Martin.  “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination.  The USPS OIG, along with the U.S. Attorney’s Office, remain committed to safeguarding the integrity of the U.S. mail and ensuring the accountability and integrity of U.S. Postal Service employees.”

“The actions in this case demonstrate our commitment to protecting our communities from criminal enterprises seeking to steal identities and defraud honest, hard-working people,” said HSI Acting SAC Fitzgerald.  “HSI is proud of the work we’ve accomplished with our law enforcement partners in this investigation.”

Charged with conspiring to steal mail and commit unauthorized access device fraud are former USPS employees REBECCA OKUNOREN, 28, of Chicago, JESSICA JEFFERSON, 32, of Broadview, Ill., MONIQUE D. LOVE, 29, of Chicago, MYIESHA WEAVER, 34, of College Park, Ga., and DOMINIQUE SYKES, 28, of Chicago.  Also charged in the conspiracy are DAVEY HINES, 28, of Naperville, Ill., BILLYE HARRIS, 26, of Harvey, Ill., TERRANCE SCALES, 29, of Chicago, STEPHON JOHNSON, 33, of Alsip, Ill., LOREAL ROSS, 31, of Chicago, and BRITTNAY P. SHEPARD, 28, of Chicago.  Hines, Harris, Johnson, and Ross also face charges of unauthorized access device fraud and aggravated identity theft. 

The federal investigation previously resulted in charges last summer against five other individuals, including four other former U.S. Postal Service employees.

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

CHICAGO — Three individuals have been indicted on tax offenses in separate indictments returned in federal court in Chicago.

EDWARD ACEVEDO, 57, of Chicago, is charged with four counts of willfully failing to file an income tax return and two counts of tax evasion.  MICHAEL ACEVEDO, 34, of Chicago, is charged with three counts of willfully failing to file an income tax return and one count of willfully filing a false tax return.  ALEX ACEVEDO, 35, of Chicago, is charged with two counts of willfully filing a false tax return.

Arraignment for Alex Acevedo is set for March 3, 2021, at 10:00 a.m., before U.S. District Judge Edmond E. Chang.  Arraignment for Michael Acevedo is set for March 3, 2021, at 1:30 p.m., before U.S. Magistrate Judge Beth W. Jantz.  Arraignment for Edward Acevedo is set for March 5, 2021, at 1:30 p.m., before U.S. District Judge Matthew F. Kennelly.

The indictments 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 Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Sarah E. Streicker, Diane MacArthur, Timothy J. Chapman, Matthew L. Kutcher, and Michelle Kramer.

According to the indictment against Edward Acevedo, Edward Acevedo received gross income from an Illinois company in the calendar years 2017 and 2018 but he attempted to evade taxes for those years by receiving payments in cash and handling his affairs in a manner so as to avoid the creation and maintenance of customary business and accounting records, the indictment states.  He also willfully failed to file individual income tax returns for those years, as well as for the calendar years 2015 and 2016, the indictment states. 

The charges against Michael Acevedo allege that he willfully failed to file an income tax return for the calendar years 2016, 2017, and 2018, while the charges against Alex Acevedo accuse him of willfully filing a false tax return for the calendar years 2016 and 2018.

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

CHICAGO — Three individuals have been charged with arson for allegedly setting fire to a Chicago Transit Authority van during a period of civil unrest last spring.

DENZAL STEWART, 24, of Chicago, LAMAR TAYLOR, 23, of Chicago, and DARION LINDSEY, 19, of Park Forest, are each charged with one count of arson, according to an indictment unsealed Wednesday in federal court in Chicago.  The indictment accuses the three of maliciously damaging and destroying the CTA van by setting fire to it on May 30, 2020.

Stewart and Taylor were arrested Wednesday morning.  They pleaded not guilty at their arraignments Wednesday afternoon before U.S. Magistrate Judge M. David Weisman.  Detention hearings for Stewart and Taylor are scheduled for Friday at 10:30 a.m.  Lindsey was already in law enforcement custody on an unrelated charge.  Lindsey’s arraignment on the arson charge has not yet been scheduled.

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 U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives in Chicago; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Chicago Transit Authority, U.S. Marshals Service, and U.S. Transportation Security Administration.  The government is represented by Assistant U.S. Attorney Albert Berry III.

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 consultant has been indicted on federal charges for allegedly offering and providing bribes to City of Chicago officials in an effort to benefit his clients.

ROBERTO CALDERO in 2016 offered and arranged for bribes to be provided to a City of Chicago alderman and a Chicago Public Schools employee in exchange for them taking official actions to benefit Caldero’s clients, who were seeking a custodial services contract at CPS, an honorary street name designation in Chicago, and the renaming of a Chicago park, according to an indictment returned Wednesday in U.S. District Court in Chicago.  The benefits Caldero allegedly offered the CPS employee included future employment, champagne, discounted event space for a family event, and admission to an annual benefit for a museum.  To influence the alderman, Caldero arranged for campaign contributions to be made to political organizations affiliated with the alderman or his ward, the indictment states.  Unbeknownst to Caldero, the alderman was cooperating with the FBI and acting at the direction of law enforcement in connection with Caldero’s bribery efforts, the indictment states.

The indictment charges Caldero, 68, of Chicago, with four counts of honest services wire fraud, two counts of federal program bribery, and two counts of using a facility in interstate commerce to facilitate bribery.  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 Chicago Public Schools Office of Inspector General participated in the investigation.  The government is represented by Assistant U.S. Attorneys Matthew Kutcher and Michelle Kramer.

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.

Honest services wire fraud is punishable by up to 20 years in federal prison.  Federal program bribery is punishable by up to ten years.  Using a facility in interstate commerce to facilitate bribery is punishable by up to five years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

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

A 12-count indictment returned in federal court in Chicago charges DENNIS GERMAN, 34, of Robbins, Ill., with using the firearms in furtherance of his drug-trafficking activities in 2019 and 2020.  The indictment also accuses German of conspiring with two others – NICOLE SCHMIDT, 34, of Midlothian, Ill., and JOHN P. SEIWERT, 40, of Orland Park, Ill. – to traffic cocaine and heroin in Robbins last year.  A fourth defendant – MARCUS WASHINGTON, 23, of Markham, Ill. – is charged in the indictment with trafficking cocaine and illegally possessing a loaded handgun in Robbins in 2019.

German, Seiwert, and Washington are in law enforcement custody, and an arrest warrant has been issued for Schmidt.  Arraignments for German and Washington are set for March 2, 2021, before U.S. District Judge Matthew F. Kennelly.  Arraignment for Seiwert is set for March 5, 2021, before Judge Kennelly.

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 U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives in Chicago.  Substantial assistance was provided by the Midlothian Police Department, Orland Park Police Department, and Dolton Police Department.  The government is represented by Assistant U.S. Attorneys Maureen Merin and Ramon Villalpando.

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

“Individuals who possess firearms in furtherance of drug trafficking activity pose a significant threat to public safety,” said ATF SAC deTineo.  “We will continue to investigate individuals in partnership with the United States Attorney’s Office to ensure the safety of the community.”

The charges in the indictment and the maximum sentence for each count are as follows:

• German: Two counts of possession of a firearm in furtherance of a drug trafficking crime (life in prison, with a mandatory minimum of five years); four counts of possession of a controlled substance with intent to deliver (20 years); one count of maintaining a residence for the purpose of manufacturing and distributing a controlled substance (20 years); two counts of illegal possession of a firearm as a previously convicted felon (ten years); and one count of conspiracy to possess a controlled substance with intent to deliver (20 years).
• Schmidt: One count of possession of a controlled substance with intent to deliver (20 years); and one count of conspiracy to possess a controlled substance with intent to deliver (20 years).
• Seiwert: One count of conspiracy to possess a controlled substance with intent to deliver (20 years).
• Washington: One count of possession of a controlled substance with intent to deliver (20 years); and one count of illegal possession of a firearm as a previously convicted felon (ten years).

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 federal grand jury has indicted a Chicago man for allegedly transporting a minor from Wisconsin to Illinois to engage in commercial sex acts.

The two-count federal indictment charges WILLIAM MCBETH, also known as “Tony,” 35, with sex trafficking of a minor and transporting that victim from Wisconsin to Illinois for purposes of prostitution.  The sex trafficking count is punishable by a minimum prison sentence of ten years and a maximum term of life, while the transportation charge is punishable by up to ten years.  McBeth is currently in law enforcement custody.  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 Chicago Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Michelle Petersen.

According to the indictment and a criminal complaint previously filed in the case, the minor victim was 15 years old in December 2015 when McBeth enticed her to engage in commercial sex acts in the Chicago area.  McBeth transported her to various locations in Chicago and the surrounding suburbs to engage in commercial sex acts, and on at least one occasion brought her from Wisconsin back to Illinois for that purpose, according to the charges.

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

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

CHICAGO — A man has been found guilty in federal court of conspiring to steal cash from an automated-teller machine in Chicago during a period of civil unrest last spring.

On the evening of June 1, 2020, RICKIE FOY, 38, of Chicago, joined several others in attempting to break into a Bank of America ATM located in a grocery store parking lot at 620 W. 63rd St. in the city’s Englewood neighborhood.  Over the course of approximately eight minutes, Foy and the others used various tools to try to gain access to the machine and steal cash, but they were unsuccessful.  Chicago Police officers arrived at the scene and arrested Foy and two others after a foot chase.

U.S. District Judge Thomas M. Durkin on Tuesday found Foy guilty of conspiracy to commit bank theft.  A one-day bench trial had been conducted last week entirely via videoconference. 

The conviction is punishable by up to five years in federal prison.  Judge Durkin set sentencing for May 11, 2021, at 10:00 a.m.

The guilty verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Ramon Villalpando and Matthew Madden.

Two other individuals were charged with participating in the conspiracy.  They pleaded not guilty and are awaiting trial.

CHICAGO — A Chicago man has been arrested and charged in federal court with carjacking after he allegedly took a vehicle from a victim in Orland Park and fired a shot at a police officer who was pursuing him.

DAVID JOHNSON, 23, of Chicago, is charged with one count of carjacking in connection with the Friday evening incident.  Johnson made an initial court appearance Tuesday before U.S. Magistrate Judge Jeffrey T. Gilbert and was ordered to remain detained in federal custody.  A preliminary hearing was set for Feb. 26, 2021, at 11:30 a.m.

The complaint and arrest were 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; Jason Reid, Chief of the Oak Forest Police Department; David Brown, Superintendent of the Chicago Police Department; and Joseph Mitchell, Chief of the Orland Park Police Department.  The government is represented by Assistant U.S. Attorneys Sheri Wong and Scott Edenfield.

According to a criminal complaint filed in U.S. District Court in Chicago, the victim on Friday evening was sitting in his car parked on the street outside of his home in Orland Park when Johnson approached, pointed a gun at the victim’s head, and demanded the key.  Johnson stole the vehicle and drove it to Chicago, where he crashed into another car in the city’s Morgan Park neighborhood, the complaint states.  Johnson then fled on foot and fired a shot at an Oak Forest Police officer who was pursuing him, the complaint states.  Chicago Police officers arrested Johnson a short time later.

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 suburban Chicago man has been arrested for allegedly illegally possessing a loaded handgun and dealing crack cocaine.

LARRY DENNIS, 36, of Markham, is charged with one count of possession of a controlled substance with intent to distribute, and one count of illegal possession of a firearm as a previously convicted felon, according to a criminal complaint unsealed Thursday in U.S. District Court in Chicago.  The complaint alleges that Dennis on three occasions last month sold suspected crack cocaine to an individual who, unbeknownst to Dennis, was cooperating with law enforcement.  Dennis also illegally possessed the loaded handgun in his residence on Jan. 20, 2021, the complaint states.  Dennis had previously been convicted of multiple state felonies, including robbery and firearm offenses, and was not lawfully allowed to possess a gun.

Dennis was arrested Thursday on the federal charges.  He appeared today before U.S. Magistrate Judge Jeffrey T. Gilbert and was ordered to remain detained in federal custody.

The complaint and arrest were 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 Daniel Delaney, Chief of the Midlothian Police Department.  Valuable assistance in the investigation was provided by the Markham Police Department, Dolton Police Department, and Orland Park Police Department.  The government is represented by Assistant U.S. Attorney Saurish Appleby-Bhattacharjee. 

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 drug charge is punishable by a maximum sentence of 20 years in federal prison, 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 suburban Chicago man has been sentenced to nine years in federal prison for sharing videos of child pornography with users of an online messaging application.

AUSTIN BURCHERT, 22, of Elk Grove Village, possessed on his cell phone more than 3,000 images and approximately 54 videos of children engaged in sexually explicit conduct.  Under the screenname “so_raven_,” Burchert on Feb. 12, 2018, shared 13 such images and one video file in a chat group on the Kik online messaging application.  There were approximately 50 people in the chat group at the time, including an undercover law enforcement agent.

Burchert pleaded guilty last year to a federal charge of transportation of child pornography.  In addition to the nine-year prison sentence, U.S. District Judge Jorge L. Alonso on Tuesday ordered Burchert to pay $65,000 in restitution to the known victims depicted in the pornographic images and videos.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Richard S. Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Substantial assistance in the investigation was provided by the Elk Grove Village Police Department, Illinois Attorney General’s Office, and Deerfield Police Department.  The government was represented by Assistant U.S. Attorneys Misty N. Wright and Esther Mignanelli.

“The defendant’s crime contributed to the perpetual victimization of hundreds of children by contributing to the ever-growing market for the creation and distribution of child pornography,” Assistant U.S. Attorney Misty N. Wright argued in the government’s sentencing memorandum.  “Defendant’s victims and their parents have to live with the fact that these photos and videos depicting their abuse were shared and may be viewed for years to come by pedophiles.”

“Let this sentence serve as a reminder that HSI is committed to standing firmly in the way of those who prey on and exploit our most vulnerable population – our children,” said HSI Acting SAC Fitzgerald.  “HSI will continue to work closely with our law enforcement and judicial partners to identify and bring to justice individuals who commit these very serious crimes.”

If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing & Exploited Children at 1-800-843-5678, or log on to http://www.missingkids.com.  The service is available 24 hours a day, seven days a week.

CHICAGO — The former operator of a suburban Chicago nightclub has been charged in federal court with assisting in the preparation and submission of false corporate income tax returns for six years.

ALICIA ARNOLD willfully assisted in the preparation and submission of false and fraudulent income tax returns for the calendar years 2012 to 2017 for Arnie’s Idle Hour, the nightclub Arnold operated in Harvey, Ill., according to a criminal information filed Feb. 5, 2021, in U.S. District Court in Chicago.  Each of the false tax returns substantially underreported the nightclub’s gross receipts and sales, the information states.

Arnold, 51, of Las Vegas, Nev., and formerly of Homer Glen, Ill., pleaded not guilty today at her arraignment before U.S. Magistrate Judge Jeffrey T. Gilbert.  A status hearing was set for March 3, 2021, at 10:30 a.m., before U.S. District Judge Jorge L. Alonso.

The charges were 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 Internal Revenue Service Criminal Investigation Division in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Thomas J. Dart, Cook County Sheriff.   The government is represented by Assistant U.S. Attorneys Grayson Walker and Maureen Merin.

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

CHICAGO — The Department of Justice has recognized Ronald DeWald, an Assistant U.S. Attorney for the Northern District of Illinois, for his outstanding work in support of the Project Safe Neighborhood (PSN) initiative. 

PSN is a nationwide initiative that brings together law enforcement, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them.  Through the annual PSN Achievement Awards, the Department of Justice recognizes outstanding individual efforts in achieving safety and security in the United States.  The Department in 2020 bestowed on Mr. DeWald an award for “Outstanding Individual Contribution to the PSN Program,” in recognition of his work designing and overseeing violent crime reduction strategies in Chicago and throughout northern Illinois.

“Ron DeWald has served the citizens of the Northern District of Illinois and the United States with tremendous distinction,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “Violent crime can only be addressed with a multi-disciplinary effort involving federal, state, and local law enforcement, community members, and other stakeholders.  Ron’s dedication has fostered these important relationships, and for that we owe him a debt of gratitude.”

Mr. DeWald has been an AUSA in Chicago for more than 15 years.  In his current position as Counsel to the U.S. Attorney for Violent Crime, Mr. DeWald was instrumental in establishing and leading the office’s various violent crime efforts, including its Gun Crimes Prosecution Team, an initiative that has led to a substantial increase in the effectiveness of federal firearm prosecutions since its inception in 2018. 

Mr. DeWald has taught courses at the Chicago Police Academy on federal firearm prosecutions, and he leads the Northern District’s PSN Forums, where state parolees are warned of the consequences of recidivism and presented with offers of social services.  Research has found that ex-offenders who attend a notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.

CHICAGO — A man has been arrested for allegedly robbing a Chicago bank and holding a customer at gunpoint.

CHRISTOPHER PORTER, 49, of Chicago, is charged with one count of bank robbery for allegedly robbing a Fifth Third Bank branch, 3957 W. 26th St. in Chicago’s Little Village neighborhood, on Feb. 4, 2021.  Porter made an initial court appearance Friday before U.S. Magistrate Judge Maria Valdez.  He waived his right to a detention hearing and was ordered to remain in federal custody.

According to a criminal complaint and affidavit filed in U.S. District Court in Chicago, Porter entered the bank shortly after 5:00 p.m. and demanded that a teller place cash in a bag.  Porter then put a customer in a headlock, pointed a gun at the customer’s head, and repeatedly said he would shoot the customer if the teller did not comply with his demand, the complaint states.  The teller put cash in a bag and handed it to Porter, who fled the bank, the complaint states.  The FBI arrested Porter later that evening in the parking lot of a Chicago apartment complex about four miles from the bank.

The arrest and complaint 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. Attorney Paige A. Nutini.

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 robbery charge is punishable by up to 20 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A procurement supervisor at the Jesse Brown Veterans Affairs Medical Center in Chicago pocketed kickbacks from the president of a medical supply company to steer the company at least $1.7 million in product orders, many of which were never fulfilled, according to an indictment returned in federal court in Chicago.

The indictment accuses THOMAS E. DUNCAN, a supervisor in the medical center’s Central Supply department, of receiving approximately $36,250 in kickbacks paid by checks, as well as an additional amount in cash, from DANIEL DINGLE, the president of a medical supply company based in south suburban Dolton.  The checks were made payable to Helping Hands Properties LLC – a third-party entity managed by Duncan – and contained false and misleading memo entries in order to conceal and disguise the existence and purpose of the kickbacks, the indictment states.  In exchange for the kickbacks, Duncan used his official position at the VA to fraudulently initiate and approve purchases of products from Dingle’s company, knowing that many of the products would not be delivered to the VA, the indictment states.

The alleged fraud scheme began in 2012 and continued until 2019.  In late 2018 and early 2019, while the Veterans Affairs Inspector General’s Office was investigating the matter, Duncan told Dingle to falsely tell investigators that the payments Duncan received from Dingle’s company were for work performed by Helping Hands Properties, the indictment states.

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges Duncan, 37, of Chicago, with five counts of wire fraud, one count of witness tampering, and one count of falsifying records.  Dingle, 50, of Riverdale, is charged with four counts of wire fraud.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gregg Hirstein, Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General.  The government is represented by Assistant U.S. Attorney Heidi Manschreck.

“These charges demonstrate the VA OIG’s commitment to protecting American taxpayers,” said Special Agent-in-Charge Hirstein.  “Individuals and companies involved in corrupting the VA’s business practices will be held accountable.”

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

ROCKFORD — A Rockford man was sentenced Wednesday by U.S. District Judge John Z. Lee to nine years in federal prison for drug trafficking and illegally possessing a firearm as a convicted felon. 

BRIAN KOTLIENTHONG, 33, pleaded guilty to the charges on Aug. 13, 2020.  According to a written plea agreement, Kotlienthong distributed a total of approximately 83.6 grams of cocaine to an individual in Rockford in December 2017.  Kotlienthong, who had previously been convicted of a felony and was prohibited from possessing a firearm, admitted that on Feb. 8, 2018, he illegally possessed a 9mm rifle and sold it to an individual.  Kotlienthong also admitted in the plea agreement that on Dec. 21, 2017, he possessed and sold a 9mm pistol and approximately 27.6 grams of cocaine, and on March 26, 2018, he possessed and sold another 9mm pistol while showing approximately one pound of marijuana that he offered to sell.

The sentencing 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 & Explosives. The investigation was conducted by ATF and the Stateline Area Narcotics Team, which includes law enforcement officers and agents from the Illinois State Police and Ogle County Sheriff’s Office.  The government was represented by Assistant U.S. Attorney Talia Bucci.