Northern District of Illinois

CHICAGO — The former controller of a Chicago insurance company has been arrested on a federal fraud charge for allegedly stealing $5 million in company funds.

From approximately October 2018 to June 2020, KEVIN J. MIX initiated and authorized approximately 35 wire transfers from the insurance company to his bank accounts and the accounts of shell companies that he created, according to a criminal complaint filed in U.S. District in Chicago.  Mix attempted to conceal the scheme by making false entries in the company’s records, creating fake emails, and making false statements to representatives of the insurance company and the company’s bank, the complaint states. 

Mix allegedly used the stolen money to purchase a Lexus RX sport-utility vehicle, a Mercedes-Benz automobile, and real estate in Chicago and Columbus, Ohio. 

The complaint charges Mix, 41, of Chicago, with one count of wire fraud.  He was arrested Tuesday and remains in federal custody.  U.S. District Judge Steven C. Seeger scheduled a detention hearing for Aug. 13, 2020, at 1:30 p.m.

The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Matthew Schneider.

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

CHICAGO — The mayor of Crestwood has been indicted by a federal grand jury for using an interstate facility in aid of bribery, and lying to federal law enforcement about his request and receipt of benefits from a representative of a red-light camera company that provided services to the southwest suburb.

LOUIS PRESTA, 69, of Crestwood, is charged with three counts of using a facility in interstate commerce in aid of bribery and official misconduct, two counts of willfully filing a false income tax return, one count of willfully failing to file an income tax return, and one count of making false statements to the FBI and IRS.  The indictment was returned Thursday in U.S. District Court in Chicago.  Arraignment has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Christopher J. Stetler and James P. Durkin.

According to the indictment, the red-light camera company provided camera services to Crestwood that enabled the municipality to issue tickets to motorists for certain traffic violations.  During that time and while the company was attempting to provide additional such services to Crestwood, Presta asked for and accepted benefits from representatives of the company, the indictment states.

The false statement charge pertains to Presta’s September 2019 interview with the FBI and IRS, during which Presta denied receiving gifts, cash, or campaign contributions from the red-light camera company.  When shown a recording of a March 7, 2018, meeting at which Presta allegedly accepted from the company representative an envelope containing $5,000 in cash, Presta falsely stated that there was no money in the envelope, the indictment states.

The tax charges in the indictment accuse Presta of willfully filing a false income tax return for the calendar years 2015 and 2018, and willfully failing to file an income tax return for the calendar year 2014.

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 bribery and false statement counts are each punishable by up to five years in prison.  Filing a false tax return is punishable by up to three years, while failing to file a tax return carries a maximum sentence of one year.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Creston man pleaded guilty Tuesday before U.S. District Judge Philip G. Reinhard to charges of transportation of child pornography via the internet and possession of child pornography. 

ERIC CANCHOLA, 27, admitted in a written plea agreement that on March 21, 2018, he used a computer to send a video file over the internet to a fellow KIK chat application user.  The image depicted a prepubescent female child engaged in sexually explicit conduct.  Canchola also admitted that on May 8, 2018, he possessed two iPods, a desktop computer, and two portable hard drives that each contained more than 600 images of children engaged in sexually explicit conduct.

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 Ogle County Sheriff’s Office assisted in the investigation.  The government is represented by Assistant U.S. Attorney Michael D. Love.

Sentencing is set for Dec. 11, 2020, at 9:00 a.m.

Canchola faces a mandatory minimum of five years and a maximum sentence of 20 years in federal prison for transporting child pornography, and a maximum of 20 years for possession of child pornography.  The actual sentence will be determined by the U.S. District Court, guided by the Sentencing Guidelines.   

CHICAGO — Three family members have been indicted on a labor trafficking conspiracy charge for allegedly forcing two undocumented West African teenagers to work in the Chicago suburbs.

NAWOMI AWOGA, 71, of Hazel Crest, and her two daughters, MARINA OKE, also known as Marina Fandohan, 34, of Country Club Hills, and ASSIBA LEA FANDOHAN, 31, of Hazel Crest, are charged with conspiracy to conceal, harbor, and shield from detection two children from the West African country of Benin, according to an indictment returned in U.S. District Court in Chicago.  The indictment also charges the defendants with forcing labor through threats of serious harm to a victim or another person.

The defendants were arrested Monday.  Awoga is scheduled to make an initial court appearance on Aug. 5, 2020, at 3:00 p.m., before U.S. Magistrate Judge Young B. Kim, while Oke and Fandohan will appear before Judge Kim for detention hearings on Aug. 6, 2020, at noon.

The indictment and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Patrick S. Mills, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service (DSS), Chicago Field Office.  Substantial assistance in the investigation was provided by the Cook County Sheriff’s Office, Chicago Police Department, and the Regional Security Office at the U.S. Embassy in Cotonou, Benin.  The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam.

According to the charges, Awoga coached the victims, then age 14 and 12, in Benin to lie to U.S. immigration authorities about their family relationships in order to obtain tourist visas, and then accompanied them into the United States.  Once in the U.S., the defendants harbored the victims in residences in the Chicago suburbs of Country Club Hills and Hazel Crest while the victims were forced to provide labor and services for the defendants’ financial gain, the indictment states.

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

CHICAGO — The owner of several Illinois nursing homes has been indicted by a federal grand jury for allegedly skimming money from federally insured facilities that had defaulted on mortgage loans to pay expenses of a non-federally insured facility.

MARK YAMPOL, 57, of St. Louis, Mo., is charged with one count of equity skimming, according to an indictment returned Wednesday in U.S. District Court in Chicago.  The charge is punishable by up to five years in federal prison.  A date for arraignment has not yet been set.

According to the indictment, Yampol controlled a portfolio of nursing homes in Illinois, including homes in the Chicago suburbs of Northbrook and St. Charles.  The U.S. Department of Housing and Urban Development insured the mortgage loans made by private lending institutions to all but one of Yampol’s nursing homes.  By March 1, 2015, the HUD-insured facilities had not made timely mortgage payments and were in default of their loans.  From May 2015 to August 2015, Yampol diverted approximately $1.1 million in funds derived from the HUD-insured facilities, which remained in default on their loans, to pay the mortgage and operating expenses of the non-HUD-insured facility, the indictment states.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Rae Oliver Davis, Inspector General of the U.S. Department of Housing and Urban Development.  The government is represented by Assistant U.S. Attorneys Devlin Su and Kathryn Malizia.

 “We would like to acknowledge our partners at the U. S. Attorney’s Office, who have worked tirelessly to bring this case forward,” said Inspector General Davis.  “The alleged diversion of funds is not only significant in its own right but played a significant role in one of the largest insured claims involving HUD’s Section 232 mortgage insurance program for elderly and disabled residents.  This office remains steadfastly committed to ensuring the integrity of HUD programs and particularly those designed to assist vulnerable populations.”

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.

CHICAGO — The alleged leader of the Black Disciples street gang in Chicago is among 23 individuals facing criminal charges as part of a federal investigation into drug and gun trafficking on the city’s South Side.

During the multi-year investigation, law enforcement seized 24 firearms, more than 13 kilograms of cocaine, more than a kilogram of heroin, approximately 1,350 grams of heroin laced with fentanyl, approximately 750 grams of fentanyl or fentanyl analogue, approximately 378 grams of crack cocaine, $52,595 in suspected illicit cash proceeds, and distribution quantities of suspected MDMA pills.  Much of the alleged drug and gun trafficking occurred in the Englewood neighborhood on the South Side of Chicago.

Indictments and criminal complaints unsealed this week in U.S. District Court in Chicago charge 22 of the defendants with various drug or firearm offenses, while one defendant faces bank fraud charges.  The defendants were arrested Tuesday and have begun making initial appearances in federal court.

Included among the defendants is DARNELL MCMILLER, also known as “Murder,” who is described in the charges as the current leader of the Black Disciples street gang in Chicago.  Several other alleged high-ranking members of the Black Disciples were also charged and arrested, including CLARENCE JANUARY, who allegedly leads the gang’s “Dog Pound” faction, and KENNETH BROWN, who allegedly supplied the gang with drugs for distribution in Chicago.  CHARLES KNIGHT, an alleged high-ranking member of the Gangster Disciples street gang, is charged as part of the probe with supplying narcotics to McMiller’s crew.

The investigation was led by the FBI and Chicago Police Department, with assistance from ATF, DEA, IRS Criminal Investigation Division, the Chicago High Intensity Drug Trafficking Task Force (HIDTA), and the FBI Windy City Task Force.

The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; David Brown, Superintendent of CPD; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of ATF; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Kathy A. Enstrom, Special Agent-in-Charge of IRS-CI in Chicago.  Assistant U.S. Attorneys Andrew J. Dixon, Esther Mignanelli, Tobara Richardson, and Jasmina Vajzovic represent the government.

Valuable assistance in the probe was provided by the U.S. Attorney’s Office for the Eastern District of Wisconsin, which unsealed an eight-person indictment this week charging heroin trafficking offenses that are related to this investigation. 

The Black Disciples are a national street gang that is prevalent throughout Chicago and the surrounding suburbs.  According to the charges, members of the Black Disciples have been distributing narcotics and guns in the Englewood neighborhood and other parts of Chicago.  The charges describe more than 50 illicit transactions in which alleged Black Disciples members sold guns or drugs to individuals who were cooperating with law enforcement.  In many instances, the cooperating individuals surreptitiously video-recorded the transaction at the direction of law enforcement.

The complaint against McMiller, 34, of Chicago, accuses him of conspiring with Knight, 56, of Riverdale, to distribute fentanyl-laced heroin to a cooperating individual on Sept. 30, 2019.  The transaction occurred in the 7000 block of South Lowe Avenue in Chicago, the complaint states.

Brown, 59, of Chicago, is charged with conspiring with alleged Black Disciple member TERRENCE MORRIS, 48, of Chicago, to distribute heroin in March 2019.  During the investigation, law enforcement carried out a court-authorized search of a South Side storage unit rented by Brown and discovered 13 kilograms of cocaine, which were individually wrapped in sealed packages, the charges state. 

January, 27, of Chicago, is accused of trafficking three handguns in the summer of 2019.  He had previously been convicted of a felony firearm offense in the Circuit Court of Cook County and was not lawfully allowed to possess the guns.  Several other convicted felons were also charged with unlawfully possessing firearms, including rifles and a shotgun furnished to members of the Black Disciples.

Charged with federal drug offenses are: McMiller; Knight; Brown; Morris; ALONZO BROOKS, 49, of Chicago; SHONGO COLLIER, 48, of Riverdale; LAWRENCE DRAUS, 41, of Crestwood; FREDRICK STEWART, 47, of Chicago; TONY REDDING, 44, of Chicago; RAMONT AUSTIN, 39, of Chicago; FRANKLIN REDDING, 46, of Chicago; BARRY MICKIEL, 49, of Chicago; BRIAN BILLUPS, 40, of Plainfield; JOSEPH ANDERSON, 43, of Chicago; and SANTANA STEELE, 36, of Chicago.

Charged with federal firearm offenses are January; ANTOINE MCDANIELS, 44, of Chicago; DEANDRE MARTIN, 32, of Chicago; WILLIE ALFORD, 45, of Chicago; TRAVIS WASHINGTON, 24, of Chicago; WENDALL KEMP, 55, of Chicago; and SHAWN HUDSON, 48, of Harvey.

Charged with bank fraud is JOHN ECTOR, 47, of Chicago.

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

The U.S. Attorney’s Office holds gun offenders accountable through Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  The U.S. Attorney’s Office has deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.  Additional federal law enforcement resources were recently allocated to Chicago under Operation Legend, which will enhance existing efforts by federal law enforcement agencies working in conjunction with state and local law enforcement offices to fight violent crime.

CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois announced today that, as part of continued efforts to enforce the Americans with Disabilities Act, it has reached a settlement with Midwest Plastic Surgery in Hinsdale to resolve claims of discrimination against a 47-year-old woman with HIV.  

The U.S. Attorney’s Office found that Midwest Plastic Surgery discriminated against the patient when its plastic surgeon unlawfully refused to perform a breast reduction surgery due to the patient’s HIV status.  The patient had been living with HIV for more than 25 years, but this was the first time she had been refused medical treatment because of the virus.  The U.S. Attorney's Office’s investigation revealed that Midwest Plastic Surgery’s actions were not based on, or consistent with, current medical knowledge.  Moreover, an individual’s HIV status is not a legitimate or lawful reason to refuse to treat a patient seeking medical care.   

Under the terms of the settlement agreement and consistent with penalties available under the ADA, Midwest Plastic Surgery will pay $25,000 to the victim of discrimination.  In addition, Midwest Plastic Surgery must train its employees on the requirements of the ADA, implement an antidiscrimination policy, and report to the U.S. Attorney’s Office every time a person is not accepted as a patient, with a written justification for the decision.  The U.S. Attorney’s Office waived the civil fine in recognition of the remorse expressed by the plastic surgeon for his misconduct and Midwest Plastic Surgery’s cooperation during the investigation.   

This settlement is the second HIV-related discrimination case the U.S. Attorney's Office has resolved in recent months.  In December 2019, the office reached a settlement with Downers Grove Tattoo Company, which had unlawfully refused to give a customer a tattoo because she was HIV-positive.  Under the terms of that settlement agreement, the Downers Grove Tattoo Company paid $10,000 to the victim for violating the ADA.  In addition, Downers Grove Tattoo Company was required to train its employees on the requirements of the ADA and implement an antidiscrimination policy. 

“Physicians, tattoo artists, and others should understand that individuals seeking medical treatment or other physical care should not be excluded based on HIV,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “These settlements should send a clear message that individuals living with HIV are entitled to the same services as everyone else.”  

Title III of the ADA prohibits public accommodations, such as doctor’s offices and tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying goods, services, privileges, facilities, advantages and accommodations provided.  For more information regarding the Department of Justice’s efforts to combat HIV discrimination, please visit https://www.ada.gov/hiv/ada_hiv_discrimination.htm.

The ADA was signed into law 30 years ago this week.  To learn more about the obligations of public accommodations under federal disability rights statutes, call the Department of Justice’s toll-free ADA information line at 800-514-0301, 800-514-0383 (TTY), or log on to the ADA website at www.ada.gov.

CHICAGO — A Cicero woman who helped numerous undocumented immigrants from Guatemala illegally enter the United States pleaded guilty today to a federal labor trafficking charge.

CONCEPCION MALINEK, 50, pleaded guilty to one count of labor trafficking.  The charge is punishable by up to 20 years in federal prison.  U.S. District Judge Edmond E. Chang set sentencing for Oct. 20, 2020, at 3:00 p.m.

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

Malinek admitted in a plea declaration that she assisted ten undocumented Guatemalan immigrants with illegally entering the U.S. from 2009 to 2019.  Once in the country, Malinek arranged for the immigrants to reside in her home in Cicero while they worked in nearby jobs.  Malinek then threatened to contact U.S. immigration authorities if the immigrants wouldn’t pay her a substantial portion of their earnings.

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 — Three individuals have been charged with federal offenses for allegedly illegally possessing guns or ammunition in Chicago this week.  The charges are the first federal prosecutions in Chicago under the Department of Justice’s Operation Legend.

DARRYL COLLINS, 30, of Dolton, is charged with one count of illegal possession of ammunition by a convicted felon, while ROMEO HOLLOWAY, 21, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon.  Collins and Holloway were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm or ammunition. 

DARRYL PHILLIPS, 22, of Chicago, is charged with one count of illegal possession of a machinegun. 

All three defendants are currently detained in federal custody.

The federal charges 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 David Brown, Superintendent of the Chicago Police Department.  The government is represented in the Collins case by Assistant U.S. Attorney Julia K. Schwartz; in the Holloway case by Assistant U.S. Attorney Jared Hasten; and in the Phillips case by Assistant U.S. Attorney Jeannice W. Appenteng.

The charges are the first federal prosecutions brought under Operation Legend, a Department of Justice initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime.  As part of Operation Legend, Attorney General William P. Barr directed ATF, FBI, U.S. Marshals Service, and DEA to significantly increase resources into Chicago to help state and local officials fight violent crime, particularly gun offenses.  ATF has deployed its national Crime Gun Intelligence Mobile Command Vehicle to assist local law enforcement with analysis of crime scenes and spent shell casings through the National Integrated Ballistic Information Network (NIBIN).

“Operation Legend has strengthened our efforts to apprehend and charge illegal gun offenders in Chicago,” said U.S. Attorney Lausch.  “Under Operation Legend, we are working closer than ever with the Chicago Police Department, ATF, and other federal, state, and local law enforcement partners to arrest and prosecute individuals engaging in violent crime in the city.”

According to criminal complaints filed in U.S. District Court in Chicago, Collins was arrested Wednesday afternoon by Chicago Police officers for illegally possessing ammunition, which was in a loaded handgun, in the 8200 block of South Maryland Avenue in the East Chatham neighborhood.

Holloway was arrested Tuesday night by federal and local law enforcement officers for illegally possessing a loaded handgun in the 2700 block of West Flournoy Street in the East Garfield Park neighborhood, according to the complaint.  The gun contained ten rounds of live ammunition and had a bullet in the chamber, the complaint states. 

Phillips was arrested early Wednesday morning by federal and local law enforcement officers executing a court-authorized search warrant in the 2700 block of West Flournoy Street in the East Garfield Park neighborhood, according to the complaint.  Officers discovered a semiautomatic handgun in a bedroom, the complaint states.  An ATF special agent reviewed the firearm and determined it was equipped with an auto-sear device, also known as a “switch,” which transformed the firearm into a machinegun capable of automatically shooting more than one shot without manually reloading, the complaint states.

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

In addition to the resources allocated under Operation Legend, the U.S. Attorney’s Office holds gun offenders accountable through Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  The U.S. Attorney’s Office has deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, including by prosecuting individuals who illegally possess firearms.

CHICAGO — A convicted felon has been sentenced to 15 years in federal prison for illegally possessing a loaded handgun in the Avalon Park neighborhood of Chicago.

ANTOINE JACKSON, 31, of Chicago, illegally possessed the loaded gun in the 8200 block of South Woodlawn Avenue on March 4, 2018.  Jackson initially ran from Chicago Police officers who attempted to handcuff him, but he was apprehended a short time later.  The semiautomatic handgun had a 16-round magazine and was capable of accepting an even larger capacity magazine.

Jackson was not legally allowed to possess a firearm after previously being convicted in the Circuit Court of Cook County for armed robbery and attempted armed robbery.

Jackson pleaded guilty earlier this year in the federal case to one count of illegal possession of a firearm by a felon.  U.S. District Judge Joan Humphrey Lefkow imposed the 15-year sentence Wednesday 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.

“Despite being a convicted felon, just three years after getting paroled on his state cases, Jackson was again in possession of a firearm on the streets of Chicago,” Assistant U.S. Attorney Jared C. Jodrey argued in the government’s sentencing memorandum.  “Jackson’s criminal record and offense conduct demonstrate a continued disrespect for the law.”

Holding illegal firearm possessors accountable through federal prosecution is 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.

CHICAGO – John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today joined Attorney General William P. Barr and President Donald J. Trump to announce the expansion of Operation Legend to Chicago. 

Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime.  The Operation was first launched on July 8, 2020, in Kansas City, Mo., as a result of President Trump’s promise to assist America’s cities that are plagued by recent violence.  Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29, 2020, in Kansas City.  The first federal arrest under Operation Legend was announced on July 20, 2020.

As part of Operation Legend, Attorney General Barr directed the FBI, U.S. Marshals Service, DEA, and ATF to significantly increase resources into Chicago, as well as Albuquerque, N.M., in the coming weeks to help state and local officials fight high levels of violent crime, particularly gun violence. 

“A top priority as federal prosecutors is to reduce violent crime, particularly in a large urban area like Chicago,” said U.S. Attorney Lausch.  “As part of Operation Legend, additional federal resources will assist our office and our federal, state, and local law enforcement partners to increase prosecutions of trigger-pullers, drug traffickers, carjackers, and those who illegally traffic, use, and possess firearms.  We will use these new resources and every other available federal law enforcement tool to reduce the unacceptable level of violent crime in Chicago.”

“The most basic responsibility of government is to protect the safety of our citizens,” said Attorney General Barr.  “Today, we have extended Operation Legend to Chicago and Albuquerque to protect the residents of those cities from senseless acts of deadly violence by targeting those involved in gang activity and those who use guns to commit violent crime.  For decades, the Department of Justice has achieved significant success when utilizing our anti-violent crime task forces and federal law enforcement agents to enforce federal law and assist American cities which are experiencing upticks in violent crime.  The Department of Justice’s assets will supplement local law enforcement efforts, as we work together to take the shooters and chronic violent criminals off of our streets.”

Chicago is currently experiencing a significant increase in violent crime, with homicides up 51% over 2019.  Over the weekend of July 17, more than 60 people were shot in the city of Chicago, with 14 fatalities.  Similarly, Albuquerque is currently on pace to break 2019’s record for homicides in the city.  On the weekend of July 10, there were four murders in Albuquerque within a 24-hour period. 

In Chicago, the Department of Justice will supplement state and local law enforcement agencies by sending more than 100 federal investigators from the FBI, DEA, and ATF to the city.  Under the leadership of U.S. Attorney Lausch, these investigators will complement the work already underway by existing joint federal, state and local task forces focused on combatting Chicago’s violent criminals, gangs, and drug trafficking organizations.  The investigatory efforts will be advanced by more than 100 members of the U.S. Marshals Service Great Lakes Task Force, which will direct violent fugitive apprehension operations within Chicago to identify wanted gang members, violent criminals, and firearms violators.  The Department of Homeland Security’s Homeland Security Investigations (HSI) is also committing 100 agents, already stationed in Chicago, to Operation Legend.  HSI agents will conduct investigations into gangs, narcotics traffickers, violent offenders, and firearms traffickers. 

To further support the Chicago Police Department in reducing violent crime, ATF has deployed its national Crime Gun Intelligence Mobile Command Vehicle to assist local law enforcement with analysis of crime scenes and spent shell casings through the National Integrated Ballistic Information Network (NIBIN).  ATF will also make available additional resources to assist the city of Chicago in providing timely, efficient analysis of ballistic evidence from shootings in order to quickly disrupt violent criminals and prosecute those prohibited from possessing firearms under federal law.  The Bureau of Justice Assistance will make available $3.5 million in funding to reimburse the Chicago Police Department and City of Chicago for the work of local law enforcement on the federal task forces supporting Operation Legend’s violent crime reduction efforts.  The COPS Office has also made $9.375 million available to the Chicago Police Department to fund the hiring of 75 officers.

In Albuquerque, the Department of Justice will supplement state and local law enforcement agencies by sending more than 25 federal investigators from the FBI, DEA, and ATF to the city.  Under the leadership of John C. Anderson, United States Attorney for the District of New Mexico, these federal investigators will work closely with the Albuquerque Police Department and the Bernalillo County Sheriff’s Department, along with other local partners, through preexisting task forces directed at combatting violent crimes.  Up to ten HSI agents will assist with the efforts in Albuquerque, as well.  The Department of Justice has also made available more than $1.5 million in COPS Hiring Grants to the Bernalillo County Sheriff’s Department to onboard five deputies and to support additional federal task force officers committed to violent crime reduction efforts.  Separately, the Bureau of Justice Assistance has made available $1.4 million to reimburse the Bernalillo County Sheriff’s Office for the work of local law enforcement on the federal task forces supporting Operation Legend’s violent crime reduction efforts. The Department has also assisted Albuquerque through the Joint Law Enforcement Operations (JLEO) fund to assist reimbursement of local law enforcement serving as federal task force officers with FBI, ATF, DEA, and the U.S. Marshals Service.  These JLEO funds also will be used to assist the city of Albuquerque in acquiring technology used for detection of gunshots and development of an integrated response plan to gunshots by local law enforcement.

CHICAGO — An undercover federal law enforcement investigation has identified a variety of cyber-enabled fraud conspiracies allegedly carried out by two Nigerian nationals and a U.S. citizen residing in the Chicago suburbs. 

One of the alleged schemes involved “romance scams,” in which a conspirator builds trust with a victim through a purported online romance before convincing the victim to send money to a predetermined recipient.  The conspirators allegedly communicated with victims throughout the United States via social media and dating websites, including Match.com and OKCupid.com.  The charges allege that the conspirators also engaged in other cyber-enabled frauds, including a “business email compromise” scheme and an inheritance fraud.  The alleged scams resulted in a loss to victims of at least $750,000, the complaint states.

Charged with conspiracy to commit wire fraud are SAMUEL ANIUKWU, 46, a Nigerian national residing in Romeoville; ANTHONY EMEKA IBEKIE, 55, a Nigerian national residing in Oswego; and JENNIFER GOSHA, 48, a U.S. citizen residing in Oak Park.  All three defendants were arrested last week.  Aniukwu is scheduled to appear for a detention hearing today at 2:30 p.m. before U.S. Magistrate Judge Susan E. Cox.  Ibekie is scheduled to appear for a detention hearing before Judge Cox on July 24, 2020, at 9:30 a.m.  Gosha has been released on bond.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Robert Berlin, DuPage County State’s Attorney.  Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Paige Nutini represent the government.

In the business email compromise scheme, the conspirators allegedly defrauded victims by targeting corporate email accounts via computer intrusion techniques, the complaint states.  Correspondence to those email accounts were blocked while the conspirators used them to communicate with unsuspecting victims in an attempt to induce fraudulent wire transfers.  In the inheritance fraud scam, the conspirators fraudulently told victims that they had received a substantial inheritance and needed to send money to the conspirators in order to claim it, the complaint states.

The charges allege that the defendants created fictitious business entities and opened numerous bank accounts in those entities’ names in order to launder proceeds from the fraud schemes.  During a court-authorized search last week of Aniukwu’s residence, law enforcement seized multiple digital devices, including a cellphone that contained letters purported to be from “Standard Charter Financial Group,” according to the government’s memorandum in support of Aniukwu’s detention.  The letters were addressed to victims regarding processing of the bogus inheritance payments, the memorandum states.

The charge in the complaint carries a maximum sentence of 20 years in prison.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

The public is reminded that a complaint contains only accusations 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 Chicago man who allegedly possessed numerous sexually explicit videos of children has been indicted on a federal child pornography charge.

JOSEPH WERWATH, 36, is charged with one count of possession of child pornography.  The charge carries enhanced sentencing penalties, including a mandatory minimum sentence of ten years in federal prison and a maximum of 20 years, due to a prior qualifying conviction involving a minor, for which Werwath has had to register as a sex offender.

During a court-authorized search of Werwath’s residence last month, federal law enforcement observed a video depicting child pornography playing on an electronic device in a bedroom, according to a criminal complaint previously filed in the case.  Approximately 40 other videos depicting child pornography were discovered on the device, according to the complaint.

Werwath is currently detained in federal custody.  He was arraigned in U.S. District Court in Chicago this morning and pleaded not guilty to the child pornography charge.  The next court date was set for Sept. 9, 2020, at 1:30 p.m.

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 investigation was conducted by the FBI Chicago Child Exploitation and Human Trafficking Task Force, which includes the Chicago Police Department, Cook County  Sheriff’s Office, and Cook County State’s Attorney’s Office.  Valuable assistance was provided by the Harwood Heights Police Department.  The government is represented by Assistant U.S. Attorney Jason A. Julien.

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 — Eighteen individuals have been charged in federal court with conspiring to sell heroin or fentanyl-laced heroin on the Northwest Side of Chicago.

The defendants participated in a drug trafficking operation that was responsible for distributing approximately 12.6 kilograms of heroin, more than 23 kilograms of heroin laced with fentanyl or fentanyl-analogue, and 2.56 kilograms of heroin laced with both fentanyl and fentanyl analogue, according to a criminal complaint filed in U.S. District Court in Chicago.  Much of the alleged drug trafficking occurred in the Humboldt Park neighborhood on the Northwest Side of Chicago. 

During the multi-year investigation, dubbed “Operation Monticello’s Revenge,” law enforcement shut down a busy open-air drug market utilized by the defendants in the 1000 block of North Monticello Avenue in Chicago.  Agents and officers from the U.S. Drug Enforcement Administration and Chicago Police Department made approximately eighty undercover purchases of heroin and fentanyl-laced heroin from various members of the crew, the charges allege.

Most of the 18 federal defendants were arrested last week and have begun making initial appearances in U.S. District Court in Chicago.  In addition to the federal defendants, four other individuals were charged in state court and will be prosecuted by the Cook County State’s Attorney’s Office.

The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA; and David Brown, Superintendent of CPD.  Substantial assistance was provided by the Cook County State’s Attorney’s Office and the IRS Criminal Investigation Division in Chicago.  Assistant U.S. Attorneys Richard M. Rothblatt and Jason A. Julien represent the government.

The investigation was conducted with the support of the Chicago High Intensity Drug Trafficking Task Force (HIDTA).  The task force is comprised of federal, state, and local law enforcement agencies who work together to identify, disrupt, and dismantle the most serious drug trafficking organizations. 

Charged in the federal drug conspiracy are: SAM HOWARD, 32; WILLIE  TATE, 45; KELVIN FRANKLIN, 28; STEVEN DYER, 43; MORRIO BONDS, 37; ANTONIO LEE, 39; DWAYNE PETERSON, 36; ANTHONY DAVIS, 30; FLOYD STEWART, 35; WILL HOWARD, 29; TORIAN JOHNSON, 26; JAMES HUGHES, 36; KAMRON GARRAWAY, 27; SAVAN WARD, 28; JEREMY HAMPTON, 31; JOHNNIE DANIELS, 34; and ROBERT STUCKEY, 20, all of Chicago; and BRYANT BARNES, 29, of Justice.

According to the federal complaint, Sam Howard and Franklin personally sold drugs and also worked as street-level managers of the trafficking organization.  They coordinated with Tate, Bonds, and Lee to ensure that the crew had sufficient quantities of narcotics to distribute to customers, the complaint states.  The other defendants allegedly served as street-level traffickers who would give Sam Howard and Franklin the proceeds from the sales.

The complaint also describes an attempt by Franklin to secure a handgun for use at the Monticello Avenue drug market.  In October 2019, Franklin asked a woman to deliver the loaded gun to members of the drug trafficking organization, the complaint states.  Law enforcement intervened in the delivery and the gun was never delivered, the complaint states.  The firearms aspect of the federal probe remains under investigation.

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

CHICAGO — Commonwealth Edison Company (“ComEd”), the largest electric utility in Illinois, has agreed to pay $200 million to resolve a federal criminal investigation into a years-long bribery scheme, the U.S. Attorney’s Office in Chicago announced today.

The criminal investigation of ComEd is being resolved with a deferred prosecution agreement under which ComEd admitted it arranged jobs, vendor subcontracts, and monetary payments associated with those jobs and subcontracts, for various associates of a high-level elected official for the state of Illinois, to influence and reward the official’s efforts to assist ComEd with respect to legislation concerning ComEd and its business.  The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging ComEd with bribery.  Under the agreement, the government will defer prosecution on the charge for three years and then seek to dismiss it if ComEd abides by certain conditions, including continuing to cooperate with ongoing investigations of individuals or other entities related to the conduct described in the bribery charge.

The deferred prosecution agreement, which is subject to approval by the U.S. District Court, requires ComEd to pay a $200 million fine.  A court date for the approval hearing has not yet been scheduled.

The bribery charge and deferred prosecution agreement 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 office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer.

In addition to the monetary penalty and obligation to continue cooperating with government investigations, ComEd’s obligations under the deferred prosecution agreement include enhancing its compliance program and providing annual reports to the government regarding remediation and implementation of its compliance measures.  If ComEd fails to completely perform or fulfill each of its obligations under the agreement during the three-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.

ComEd’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement.  ComEd admitted that its efforts to influence and reward the high-level elected official – identified in the Statement of Facts as “Public Official A” – began in or around 2011 and continued through in or around 2019.  During that time, the Illinois General Assembly considered bills and passed legislation that had a substantial impact on ComEd’s operations and profitability, including legislation that affected the regulatory process used to determine the electricity rates ComEd charged its customers.  Public Official A controlled what measures were called for a vote in the Illinois House of Representatives and exerted substantial influence over fellow lawmakers concerning legislation affecting ComEd.  The company admitted that it arranged for jobs and vendor subcontracts for Public Official A’s political allies and workers even in instances where those people performed little or no work that they were purportedly hired by ComEd to perform. 

In addition to the jobs and contracts, ComEd further admitted that it undertook other efforts to influence and reward Public Official A, including by appointing an individual to ComEd’s Board of Directors at the request of Public Official A; retaining a particular law firm at the request of Public Official A; and accepting into the company’s internship program a certain amount of students who resided in the Chicago ward where Public Official A was associated.

To date, ComEd has provided substantial cooperation with the federal investigations.  Per the terms of the agreement, the company will continue to provide such cooperation until all investigations and prosecutions arising out of the charged conduct are concluded.

CHICAGO — A former Chicago Police officer was sentenced today to nearly six years in federal prison for fraudulently obtaining search warrants and stealing cash and drugs from properties he searched.

U.S. District Judge Matthew F. Kennelly imposed the 71-month sentence on DAVID SALGADO after a hearing in federal court in Chicago.  Last month, Judge Kennelly sentenced Salgado’s former Chicago Police partner, XAVIER ELIZONDO, to seven years and three months in prison.

The sentences were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.  The Chicago Police Department provided valuable assistance.

Salgado, 39, and Elizondo, 48, both of Chicago, were assigned to a gang team in the Chicago Police Department’s Tenth District.  The officers conspired to submit materially false information to state court judges to fraudulently obtain search warrants that enabled them to enter various properties and seize cash and drugs.  The officers would then steal the items and falsify police reports to conceal the thefts. 

A jury in October 2019 convicted Elizondo and Salgado on all counts against them, including conspiracy to commit theft, deprivation of civil rights, embezzlement, and obstruction of justice. Salgado was also convicted of making a false statement to the FBI.

“The defendants fundamentally betrayed the trust placed in them by the public and the state’s criminal justice system,” Assistant U.S. Attorneys Sean J.B. Franzblau and Ankur Srivastava argued in the government’s joint sentencing memorandum.  “The defendants not only harmed individual victims, but they also impaired the public’s confidence in law enforcement.”

ROCKFORD — Six Rockford residents were sentenced Monday in federal court by U.S. District Judge Matthew F. Kennelly on wire fraud or money laundering charges.

Leeform “John” Xayvandy, Sr., 39, pleaded guilty on Nov. 27, 2019, to one count of wire fraud and one count of money laundering.  He was sentenced to three years in prison and ordered to pay approximately $3.18 million in restitution.

Som Xayvandy, 49, pleaded guilty on Nov. 4, 2019, to one count of wire fraud.  He was sentenced to 18 months in prison and ordered to pay approximately $2.77 million in restitution.

Vansy “Dee” Xayvandy, 45, pleaded guilty on Jan. 27, 2020, to one count of wire fraud. She was sentenced to 15 months in prison and ordered to pay approximately $2.77 million in restitution.

Christiana “Tina” Xayvandy, 28, pleaded guilty on Nov. 4, 2019, to one count of wire fraud.  She was sentenced to 15 months in prison and ordered to pay approximately $2.97 million in restitution.

Feuy Khaikham, 59, pleaded guilty on Nov. 18, 2019, to one count of wire fraud and one count of money laundering.  She was sentenced to 15 months in prison and ordered to pay approximately $2.03 million in restitution.

Aung Gyaw, 25, pleaded guilty on Jan. 3, 2020, to one count of wire fraud.  He was sentenced to six months of home confinement and ordered to pay approximately $2.97 million in restitution.

The sentencings were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Anthony Mohatt, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General in Chicago; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service, Criminal Investigation Division.  The Rockford Police Department and Winnebago County Sheriff’s Office assisted in the investigation.  The government was represented by Assistant U.S. Attorney Talia Bucci.

The wire fraud charges relate to the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the food stamp program. SNAP is a federal benefit program administered by the U.S. Department of Agriculture in conjunction with state governments.  It provides nutrition benefits to supplement the food budgets of eligible individuals and families.  Stores authorized to participate in SNAP can accept SNAP benefits only as payment for eligible food items, and it is illegal for stores and individuals to exchange SNAP benefits for cash - a practice commonly referred to as SNAP trafficking.

According to written plea agreements entered by the six defendants, between April 2015 and January 2017, the defendants schemed to defraud the USDA by fraudulently accepting and redeeming SNAP benefits exchanged for discounted amounts of cash, knowing that such exchanges were prohibited under SNAP.  As part of the scheme, defendants conducted SNAP trafficking at multiple stores in Rockford, including Pattaya Grocery Foods, formerly located at 108 15th Ave., B&P Foods Market, formerly located at 102 15th Ave.), Platinum Electronics and More, formerly located at 1114 Broadway, and Mr. Clark Groceries, formerly located at 1019 S. Main St..  Proceeds from the SNAP trafficking transactions were deposited into bank accounts controlled by the defendants and then distributed to other members of the scheme through cash payments or check. Som Xayvandy and Khaikham admitted in their plea agreements that they previously owned stores that were permanently disqualified from participating in SNAP in 2014 after USDA Food and Nutrition Services found that SNAP trafficking had been conducted at those stores.

Leeform Xayvandy, Sr., and Khaikham also admitted that they conducted financial transactions affecting interstate commerce involving the proceeds of the wire fraud scheme. Khaikham admitted that she directed a nominee owner of B&P Foods Market to cash checks from the store’s bank account and return the proceeds to Khaikham. Leeform Xayvandy, Sr., admitted that he issued checks from B&P Foods Market’s bank account to two other individuals, and directed those individuals to cash the checks and return the proceeds to him. Leeform Xayvandy, Sr., and Khaikham admitted that they did so in order to conceal the nature, ownership, and control of the wire fraud proceeds involved in those transactions.

A seventh defendant, Bounleung “Tommy” Thamontri, 56, was also charged with wire fraud, food stamp fraud, money laundering, and conspiracy to commit money laundering.  Thamontri remains at large.

CHICAGO — With the upcoming arrival of Tax Day on July 15, the U.S. Attorney’s Office and IRS Criminal Investigation Division in Chicago remind taxpayers to accurately file their returns and promptly pay any money owed.

The new deadline to file and pay 2019 income taxes and estimated taxes is Wednesday, July 15, 2020.  The federal government and state of Illinois postponed the original filing deadline of April 15 due to the COVID-19 pandemic. 

Tax evaders face criminal charges, including potential incarceration, as well as civil penalties, and they remain responsible for all taxes and interest due, said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.

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

“As the tax filing deadline quickly approaches, I am asking all citizens to file correct and accurate tax returns and to pay their share of taxes,” said Special Agent-in-Charge Enstrom.  “We all pay when others cheat the government.  IRS Criminal Investigation, together with the U.S. Attorney’s Office, works year-round to make certain that those who willfully defy the tax laws will be investigated and criminally prosecuted.  Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”

Several Chicago-area defendants have recently been prosecuted in federal court for a variety of tax violations, exemplifying the serious nature of the offense.

MOHAMMAD KHATIB and his wife, LISA KHATIB, pleaded guilty to filing false tax returns.  The couple concealed more than $2.2 million in taxable income from their business in south suburban Harvey, leading to a total tax loss of at least $822,266.  U.S. District Judge Sharon Johnson Coleman sentenced Mohammad Khatib to two years in federal prison, and Lisa Khatib to six months of home confinement.  The government was represented by Assistant U.S. Attorney Sean J.B. Franzblau.

SAMANTHA RILEY, of Oak Park, pleaded guilty to stealing federal tax refunds in other taxpayers’ names and directing the money to be deposited into her personal bank accounts.  Riley used the illegal proceeds to purchase clothing at Gucci and to make a down payment on a Porsche Cayenne.  U.S. District Judge Virginia M. Kendall sentenced Riley to five years of probation and ordered her to pay $77,726 in restitution to the IRS.  The government was represented by Assistant U.S. Attorney Sean K. Driscoll.

Another recent tax prosecution resulted in a term of imprisonment for a Chicago business owner for filing a false tax return.  PATRYK TRYNDA, the sole owner of Kitchen and Bath Design Inc., failed to report $4.03 million of gross receipts for 2015 and 2016, resulting in tax losses of $345,091.  Trynda also employed at least eleven individuals but failed to pay payroll taxes to the IRS for the years 2015, 2016, and 2017, causing $166,617 in additional tax losses.  U.S. District Judge Andrea R. Wood sentenced Trynda to a year and day in federal prison and ordered him to pay a fine of $10,000.  The government was represented by Assistant U.S. Attorney Jordan Matthews.

A federal prison sentence was also handed down to ROBERT S. WAKSMUNDZKI, of Chicago and Palos Hills, on conspiracy and false tax return charges.  For several years Waksmundzki significantly underreported income he received from operating multiple websites, including Torrentz, through which visitors were re-directed via links to other sites where they could download motion picture content without the authority of lawful copyright holders.  U.S. District Judge Edmond E. Chang sentenced Waksmundzki to a year and a day in federal prison and ordered him to pay $194,166 in restitution to the IRS.  The government was represented by Assistant U.S. Attorney Sean K. Driscoll.

RICHARD T. DAVIS, the owner of a McHenry County tooling and plastics business, pleaded guilty to diverting nearly $500,000 in business receipts into his personal checking account and failing to report the income on his personal tax return.  U.S. District Judge Philip G. Reinhard sentenced Davis to two years of probation and ordered him to pay restitution of $113,845 to the IRS.  The government was represented by Assistant U.S. Attorney Michael Love.

For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website at https://www.irs.gov/newsroom/irs-tax-tips.  Taxpayers facing hardships due to COVID-19 may also find assistance by visiting the official IRS website at https://www.irs.gov/coronavirus-tax-relief-and-economic-impact-payments.

CHICAGO — Thirteen individuals are facing criminal charges as part of the second phase of a federal investigation into heroin trafficking on the West Side of Chicago.

The 13 new defendants allegedly participated in a drug trafficking operation that was responsible for distributing at least 25 kilograms of heroin to individual customers in Chicago from at least February 2019 until earlier this month, when law enforcement shut down the operation.  The street-level sales occurred at two open-air drug markets in the city’s Austin neighborhood. 

The charges are the result of the second phase of “Operation Dirty Ice,” a multi-agency investigation led by the FBI, IRS Criminal Investigation Division, and Chicago Police Department.  The first phase of the probe led to drug conspiracy charges against eleven other defendants in October 2018.  Operation Dirty Ice was conducted in collaboration with the Organized Crime Drug Enforcement Task Force (OCDETF), whose principal mission is to identify, disrupt, and dismantle the most serious drug trafficking organizations.

During the probe, authorities seized three kilograms of heroin, 500 grams of crack cocaine, approximately $1.1 million in illicit cash proceeds, five handguns, and a rifle. 

A criminal complaint filed in U.S. District Court in Chicago charges the 13 new defendants with conspiracy to possess a controlled substance with the intent to distribute.  All of the defendants have made initial appearances in federal court in Chicago.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and David Brown, Superintendent of CPD.  Assistant U.S. Attorneys Kelly Guzman and Kaitlin Klamann represent the government.

The newly charged defendants are CLIFTON COLEMAN, 45, of Westchester; TARRENCE WATSON, 45, of Bellwood; BERNARD ROWSEY, 42, of Chicago, and his brother, RODNEY ROWSEY, 41, of Chicago; CHARLES ARMSTRONG, 55, of Chicago; DEXTER JONES, 48, of Chicago; VERNON EDWARDS, 49, of Chicago; LAVERIC DAWSON, 36, of Chicago; KEITH MOORE, 49, of Oak Park; ERIC BERNARD, 53, of Chicago; KENNETH BOWDRY, 57, of Chicago; BRYAN LANDFAIR, 58, of Chicago; and MORRIS SIMMONS, 59, of Chicago.

According to the charges, Coleman led a drug trafficking organization that obtained and distributed 800 to 1,000 grams of heroin in the Chicago area on a weekly basis.  Coleman’s crew used two stash houses to mix the heroin with other substances, including sleeping pills, in preparation for street-level distribution, the complaint states.  During the investigation, law enforcement observed numerous hand-to-hand purchases of heroin at the two open-air drug markets, located near the intersections of Chicago and Lavergne Avenues, and Chicago and Pine Avenues.  Police also coordinated undercover purchases of heroin at the markets, the complaint states.

The public is reminded that a complaint only contains a charge 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 — Five individuals have been indicted on drug charges as part of a federal investigation into cocaine trafficking on Chicago’s North Side.

During the multi-year investigation, law enforcement seized more than 365 grams of suspected crack or powder cocaine, and six grams of fentanyl.  Much of the alleged drug trafficking occurred in the West Ridge neighborhood on the North Side of Chicago.

An indictment returned Thursday in U.S. District Court in Chicago charges five defendants with conspiracy and other federal drug offenses: JOSHUA MOORE, also known as “Big Moe” and “Big Guy,” 41; JOHN HEARD, also known as “Bird,” 30; EARNEST GREENE, also known as “Ernie,” 20; JOSE FONTANEZ, also known as “Joey Crack,” 38; and ANTONIO MAXEY, also known as “Tone,” 32; all of Chicago.  Greene currently remains at large, while the other defendants are either in law enforcement custody or have been released on court-supervised bond.

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 office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  Assistant U.S. Attorneys Shawn McCarthy and Katie M. Durick represent the government.

According to the indictment and a criminal complaint previously filed in the case, Moore operated a drug trafficking organization near the intersection of Devon and Western Avenues in Chicago.  Moore’s operation also utilized a drug stash house in the 7000 block of North Rockwell Street in Chicago, directly across the street from Indian Boundary Park, the charges allege.

As part of his operation, Moore purchased wholesale quantities of cocaine and packaged it for distribution on the street, the charges state.  He also allegedly “cooked” the powder cocaine into crack cocaine for street sale.  Moore either sold narcotics directly to customers or supplied the drugs to his co-defendants to handle the sales, the charges state. 

During the investigation, law enforcement made numerous undercover purchases of crack cocaine or powder cocaine from Moore’s organization, according to the charges.

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

CHICAGO — The U.S. Attorney’s Office in Chicago today charged a north suburban man with illegal sports bookmaking and filing a false federal income tax return.

From 2014 to 2018, DOMINIC POETA, 63, of Highland Park, unlawfully operated a business that provided sports betting and wagering services, both domestically and abroad, according to a criminal information filed in U.S. District Court in Chicago.  The information also charges Poeta with filing a false federal income tax return for the calendar year 2016 that falsely reported his total income was $81,609, knowing his actual income substantially exceeded that amount.

Poeta will be arraigned in federal court in Chicago on a future date to be set by the Court.

The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kathy A. Enstrom, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and John Crawford, Special Agent-in-Charge of the Chicago Regional Office of the Federal Deposit Insurance Corporation, Office of Inspector General.   The government is represented by Assistant U.S. Attorney Patrick King.

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

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

ROCKFORD — A superseding indictment returned today by a federal grand jury in Rockford adds new charges against FLOYD E. BROWN in connection with the killing of Special Deputy U.S. Marshal Jacob Keltner.

Brown, 41, of Springfield, was originally charged with one count of killing a federal law enforcement officer and two counts of illegal firearm possession.  Special Deputy Keltner was fatally wounded on March 7, 2019, in Rockford.  He served as a McHenry County Sheriff’s deputy and was a sworn member of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force.

The superseding indictment returned today renews the three prior counts and adds several new charges in connection with the killing of Special Deputy Keltner and other acts allegedly committed by Brown on the day of the murder: one count of attempting to kill a Deputy Marshal and two Special Deputy Marshals; one count of using a deadly and dangerous weapon to forcibly assault Special Deputy Keltner; one count of using a deadly and dangerous weapon to forcibly assault a Deputy Marshal and two Special Deputy Marshals; one count of discharging a firearm during a crime of violence, causing the death of Special Deputy Keltner; and one count of discharging a firearm during the assault and attempted murder of the Deputy Marshal and two Special Deputy Marshals.

An arraignment date in federal court in Rockford has not yet been scheduled.

The superseding 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 office of the FBI.  Several agencies have assisted in the investigation, including the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, Rockford Police Department, Winnebago County Sheriff’s Office, Bloomington Police Department, Lincoln Police Department, Logan County Sheriff’s Office, and Illinois State Police.  The government is represented by Assistant U.S. Attorneys Talia Bucci and Scott Paccagnini.

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

The counts pertaining to the killing of Special Deputy Keltner carry a maximum sentence of life imprisonment or death.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago man who fired a gun into the grave of a murder victim during his burial service has been sentenced to 15 years in federal prison.

During the Nov. 22, 2017, service at Evergreen Cemetery in Evergreen Park, ELSTON STEVENSON drew a handgun and said words to the effect of, “You ain’t [expletive].  You got what you deserved.”  Stevenson fired a single shot into the grave of the deceased man, who had been murdered two days earlier.

Stevenson then waved the gun in the direction of the mourners as he fled the service.  He was arrested a short time later near the entrance of the cemetery.

Stevenson, 57, pleaded guilty to one count of illegal possession of a firearm by a previously convicted felon.  U.S. District Judge John J. Tharp, Jr., imposed the 15-year sentence July 1, 2020, in federal court in Chicago.

The sentence 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.  Valuable assistance was provided by the Cook County State’s Attorney’s Office and the Evergreen Park Police Department.

“When a felon brings a loaded gun to a populated area and uses the gun to threaten and endanger strangers, this conduct will not be tolerated,” Assistant U.S. Attorney Cornelius A. Vandenberg argued in the government’s sentencing memorandum.  “The mourners were all in the immediate vicinity of the defendant when he produced the loaded weapon and were placed in danger by the defendant’s reckless firing of the weapon into the gravesite.”

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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.

CHICAGO — A Nigerian national who allegedly orchestrated an international cyber fraud scheme targeting several U.S.-based companies has been expelled from the United Arab Emirates to face a federal criminal charge in Chicago.

OLALEKAN JACOB PONLE, also known as “Mr. Woodbery” and “Mark Kain,” 29, originally of Lagos, Nigeria, is charged in U.S. District Court in Chicago with conspiracy to commit wire fraud.  A criminal complaint accuses Ponle of orchestrating “business email compromise” schemes to defraud several U.S.-based companies.  The schemes resulted in attempted or actual losses to victim companies in the tens of millions of dollars, including a Chicago-based company that was defrauded into sending wire transfers totaling $15.2 million, the complaint states.

Ponle was arrested last month by law enforcement in the United Arab Emirates, where he had been residing.  He was subsequently expelled from the UAE into the custody of the FBI and arrived in Chicago Thursday evening.  Ponle made an initial court appearance this morning in Chicago.  U.S. Magistrate Judge Jeffrey T. Gilbert set a detention hearing for July 9, 2020, at 4:00 p.m.

The complaint and expulsion were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.  The Criminal Division’s Office of International Affairs at the Justice Department provided substantial assistance.  The government of the United Arab Emirates and the Dubai Police Department provided valuable assistance.  Assistant U.S. Attorney Melody Wells of the Northern District of Illinois is prosecuting the case.

Ponle’s alleged cyber fraud scheme spanned at least the first nine months of 2019.  The complaint describes several instances in which one or more unknown subjects gained unauthorized access to a U.S.-based company’s email account and sent messages to unwitting employees claiming to be from the company or a known business contact.  The emails were nearly identical to prior legitimate emails sent over the company’s email account, but the fraudulent emails instructed victims to wire funds to a bank account that was set up by money mules at the direction of Ponle, the complaint states.  Ponle then instructed the mules to convert the fraud proceeds to Bitcoin and send them to a virtual wallet that Ponle owned and operated, the complaint states.

In addition to the Chicago-based companies, other victims included companies based in Iowa, Kansas, Michigan, New York, and California, the complaint states.

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

CHICAGO — Three men have been charged in federal court with attempting to steal cash from an automated-teller machine in downtown Aurora.

On the evening of May 31, 2020, FERMIN OCAMPO-TELLEZ, DIEGO VARGAS, and MICHAEL GOMEZ, along with other individuals, attempted to remove the ATM from its enclosure in the drive-through area of a First Midwest Bank branch in the first block of South Broadway in Aurora, according to a criminal complaint filed in U.S. District Court in Chicago.  The trio forcibly grabbed the machine and Ocampo-Tellez repeatedly struck it with a baseball bat in an unsuccessful attempt to move it, the complaint states.  No money was taken, but bank officials estimated it will cost $30,000 to repair the machine, the complaint states.

The complaint charges Ocampo-Tellez, 27, Vargas, 24, and Gomez, 19, all of Aurora, with one count of conspiracy to commit bank theft.  All three defendants were arrested Wednesday and have made initial appearances in federal court in Chicago.  The investigation remains ongoing.

The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.  The Aurora Police Department and Naperville Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Kate McClelland.

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

The conspiracy 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.

U.S. Attorney John R. Lausch, Jr., Chicago Police Superintendent David Brown, ATF Chicago Special Agent-in-Charge Kristen deTineo, DEA Chicago Special Agent-in-Charge Robert J. Bell, IRS-CI Special Agent-in-Charge Kathy A. Enstrom, and Chicago HIDTA Executive Director Nicholas Roti will hold a news conference today to announce charges in a significant gang investigation.  

The news conference will begin at 10:30 a.m. It will be held outdoors at Quincy Plaza, the east courtyard of the Dirksen Federal Building, 219 S. Dearborn Street, Chicago IL 60604.  Media members will enter the building on Dearborn, proceed through security, and enter the enclosed courtyard.

     Media credentials and masks will be required to access the news conference. Social distancing will be required during the conference

 

WHO:               John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, Kristen deTineo, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; David Brown, Superintendent of the Chicago Police Department, and Nicholas Roti, Executive Director of Chicago HIDTA.

               

WHAT:             The officials will announce charges against multiple defendants in a joint federal, state, and local gang investigation.

 

WHERE:         Quincy Plaza, 219 S. Dearborn Street, Chicago IL 60604

Media credentials and masks will be required to access the news conference.

 

WHEN:            Friday, June 26, 2020, 10:30 A.M.

 

CONTACT:     U.S. Attorney’s Office - Public Information Office

                      Email: Kelly.greening@usdoj.gov          

                      Phone: (312) 371-3191

CHICAGO — A Chinese businesswoman was sentenced today to 37 months in federal prison for conspiracy to commit visa fraud.

WEIYUN HUANG, also known as “Kelly Huang,” 30, of Beijing, China, provided false verifications of employment for foreign nationals seeking to stay in the United States on F-1 or H-1B visas.  Huang previously pleaded guilty to one count of conspiracy to commit visa fraud. U.S. District Court Judge Thomas M. Durkin on Friday imposed the prison sentence 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 office of the FBI; and James M. Gibbons, Special Agent-in-Charge of Homeland Security Investigations in Chicago.  The government is represented by Assistant U.S. Attorney Shoba Pillay.

An F-1 visa permitted a foreign national to study in the United States at a university or other academic institution.  An F-1 visa-holder could extend the visa by participating in a program that required the student to obtain temporary employment in their area of study.  An H-1B visa permitted U.S.-based employers to temporarily employ foreign nationals in specialty occupations. Foreign nationals with an H-1B visa were permitted to stay in the U.S. for three years, with the possibility of extending their stay to six years.

Huang admitted in a plea agreement that she founded two companies – FINDREAM LLC and SINOCONTECH LLC – for the purported purpose of employing foreign nationals in the United States.  Huang advertised fraudulent visa-related employment with Findream on websites. In reality, in exchange for a fee, Huang and the companies provided false offer letters and verification of employment letters as purported evidence of employment, knowing the customers did not work at Findream or Sinocontech. Huang also completed, signed, and certified immigration forms detailing the customers’ purported work at the companies. For customers who sought proof of payroll, the customer had to provide the payroll funds to Huang, and Huang then caused direct deposits, falsely purporting to be payroll payments, from Findream’s bank accounts to be deposited in the customers’ bank accounts, and issued Form 1099-MISC tax forms documenting the purported salary.

The fraud scheme allowed at least approximately 2,693 customers to list Findream or Sinocontech as their employer in order to stay in the U.S. on the visas, Huang further admitted in a plea agreement.  Huang and her two companies received at least approximately $1.5 million from customers for whom they agreed to falsely certify employment.

“Immediately upon graduating from a United States-based university, defendant manufactured a scheme to defraud the United States for her own financial benefit and in direct violation of the United States immigration and criminal laws,” Assistant U.S. Attorney Shoba Pillay argued in the government’s sentencing memorandum. “Defendant took her deep understanding of the United States visa system to exploit that system for her own benefit, while creating a significant risk to the United States.”

Findream, which was incorporated in California, and Sinocontech, which was incorporated in Delaware, previously pleaded guilty to conspiracy to commit visa fraud. 

Huang plea agreement

CHICAGO — An Aurora man was arrested today on a federal civil disorder charge for allegedly throwing an explosive or incendiary device at a Naperville Police Department vehicle during a protest earlier this month.

                CHRISTIAN REA threw the explosive device in the proximity of the police vehicle, and the officers that were standing near the vehicle, which subsequently detonated causing an explosion, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago.  Panic ensued in the crowd of protesters, with people running in all directions, the complaint states.

The complaint charges Rea, 19, with one count of civil unrest.  Federal authorities arrested Rea Thursday morning.  An initial federal court appearance was held on June 25, 2020, before U.S. Magistrate Judge Beth Jantz.

The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the Naperville Police Department, the Aurora Police Department, and the FBI Joint Terrorism Task Force. The government is represented by Assistant U.S. Attorney Barry Jonas.

“Federal law enforcement will use all tools available to hold accountable individuals who interfere with law enforcement officers performing their duties during a civil disorder,” said U.S. Attorney Lausch.  “We will continue to work with our federal, state, and local partners to apprehend and charge individuals engaging in violent crime.”

The public is reminded that a complaint is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The charge in the complaint is punishable by a maximum sentence of 5 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Twenty-four individuals are facing federal charges following an investigation targeting two street gangs responsible for firearms offenses, narcotics trafficking, and violence on the West Side of Chicago. 

During the investigation, dubbed “Operation Full Circle,” federal, state, and local law enforcement officers worked together to seize 34 firearms, more than 6.7 kilograms of heroin, more than 17 kilograms of cocaine, more than a kilogram of fentanyl, approximately 50 grams of crack cocaine, 200 pounds of marijuana, and more than $1.3 million in cash and jewelry allegedly purchased with narcotics trafficking proceeds.  Much of the alleged firearms offenses, drug trafficking, and violence occurred in the Austin neighborhood on the West Side of Chicago. 

The investigation was jointly conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High Intensity Drug Trafficking Task Force (HIDTA).  The task forces are comprised of federal, state and local law enforcement agencies who work together to identify, disrupt and dismantle the most serious drug trafficking organizations.

“Operation Wicked Stones,” part of “Operation Full Circle,” focused on activities by alleged high-ranking members of both the Wicked Town faction of the Traveling Vice Lords and the Black P-Stone Nation street gangs.  The indictments and a criminal complaint unsealed in U.S. District Court in Chicago allege federal firearms, narcotics, and money laundering offenses. The investigation also resulted in previously filed federal charges against three defendants for their alleged role in a murder-for-hire conspiracy.  Many of the federal defendants were arrested Thursday, and detention hearings will be held next week in federal court in Chicago. 

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration; Kathy A. Enstrom, Special Agent in Charge of the Internal Revenue Service Criminal Investigation; Nicholas Roti, Executive Director of Chicago HIDTA; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Cook County State’s Attorney’s Office and the Cook County Sheriff’s Office. The government is represented by Assistant U.S. Attorneys John D. Mitchell and Grayson S. Walker and Special Assistant U.S. Attorney Maureen B. McCurry.

Seven federal defendants are charged in United States v. Harris, et al (20 CR 308).  The complaint describes a drug trafficking organization in which the defendants worked together to distribute wholesale quantities of heroin and cocaine on the West Side of Chicago, and two of the seven defendants are also charged with firearms offenses. The defendants are: JAMES HARRIS, 51, of Berkley, PATRICK TURNER, 52, of Bellwood, GREGORY HOPKINS, 50, of Chicago, LARNELL PILLOW, 51, of Chicago, RICKEY GRIFFIN, 51, of South Holland, ERIC BERGER, ­­­ 53, of Chicago, and REGINALD RICHMOND, 29, of Sunrise Terrace. According to the Complaint, in April 2020, HARRIS, wearing his Chicago Transit Authority work uniform, met with TURNER to acquire 322 grams of heroin. Federal and state law enforcement officers seized the heroin from HARRIS outside of TURNER’s residence, the complaint alleges. The complaint also alleges that during April 2020, law enforcement officers seized a firearm from GRIFFIN, who could not lawfully possess a firearm because of prior felony convictions.

As part of the investigation, three federal defendants were previously charged in United States v. Morgan et al. (19 CR 641).  In that case, DESHAWN MORGAN, 37, of Chicago, DARIUS MURPHY, 20, of Chicago, and DEMOND BROWN, 26, of Chicago were charged by indictment for their alleged role in a murder-for-hire conspiracy in 2018 that resulted in the murder of an individual.  All three defendants are in federal custody awaiting trial.

DONALD LEE, 47, of Chicago, is charged in three indictments unsealed in the U.S. District Court in Chicago.  LEE and two other individuals—JAMAR SPENCER, 34, of Chicago, and TERRENCE JENKINS, 52, of Chicago—are charged with firearms offenses in United States v. Lee, et al. (20 CR 311).  LEE and CREAVON CURRY, 25, of Chicago, are charged with firearms offenses in United States v. Lee, et al. (20 CR 310). LEE is also charged with firearms and narcotics offenses in United States v. Lee (20 CR 312).

Two other federal defendants and SPENCER are charged by indictment in United States v. Jones, et al. (20 CR 309).  That indictment charges LARRY JONES, 39, of Broadview, MARSHA FOUNTAIN, 48, of Plainfield, and SPENCER with conspiracy to distribute heroin.

ENRIQUE FUENTES-ORTIZ, 45, of Chicago, is charged with firearms and narcotics offenses in United States v. Fuentes-Ortiz (20 CR 288).

As part of the investigation, three other federal defendants are charged in separate indictments with firearms offenses: DESHON GEORGE, 26, of Chicago (20 CR 289); DANTE DOCKETT, 42, of Chicago (18 CR 710); and DERRIUS BURNS, 27, of Chicago (19 CR 758). 

DANIEL CERPA, 41, of Elmhurst, and WILFREDO GOMEZ, 48, of Chicago are charged in a fentanyl and heroin trafficking conspiracy in United States v. Cerpa, et al. (20 CR 295).

MARSHAW RANSON, 40, of Chicago, is charged with fentanyl trafficking, as well as money laundering offenses in United States v. Ranson (20 CR 309).

JESSE OCHOA, 38, of Chicago, is charged with narcotics offenses in United States v. Ochoa (20 CR 297).

The firearms, narcotics, and money laundering charges in the indictments and complaint carry maximum penalties of between 10 years and life imprisonment. The murder-for-hire charges carry a mandatory sentence of life in prison, while a sentence of death is also possible.  Only the Attorney General of the United States has the authority to seek the death penalty.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.  

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

Holding drug dealers and illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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.

CHICAGO – The owner and operator of several information technology companies in the Chicago area has been charged with filing a bank loan application that fraudulently sought more than $400,000 in a forgivable Paycheck Protection Program loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.

Rahul Shah, 51, of Evanston, was charged in a criminal complaint filed in the Northern District of Illinois with bank fraud and making false statements to a financial institution.  An initial appearance in U.S. District Court in Chicago has not yet been scheduled.

The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Inspector General J. Russell George of the Treasury Department Inspector General for Tax Administration (TIGTA); Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG), and Special Agent-in-Charge Emmerson Buie, Jr., of the FBI’s Chicago Field Office.  The government is represented by Assistant U.S. Attorney Tyler C. Murray of the Northern District of Illinois, and Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section.

“The Paycheck Protection Program was designed as a lifeline for small businesses struggling to survive the COVID-19 pandemic,” said U.S. Attorney Lausch.  “My office is working closely with our law enforcement partners to hold accountable anyone who seeks to commit fraud in connection with this important program.”

The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.  The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within 24 weeks of receipt and use at least 60% of the forgiven amount for payroll.

According to the complaint, Shah caused to be submitted to a federally insured bank an application for a $441,138 loan guaranteed by the SBA which significantly overstated the payroll expenses of a company that he controlled.  In support of the loan application, Shah allegedly caused to be submitted to the lender several false and fraudulent IRS documents, including IRS Forms 1099-MISC representing that the company made payments to several individuals who later confirmed to federal investigators that they had not received such payments. 

In addition, Shah allegedly signed and caused to be submitted to the lender what purported to be IRS Forms 941 representing his company’s quarterly payroll expenses for 2019.  A comparison between the documents submitted to the lender and the company’s IRS filings revealed that Shah’s company reported significantly lower payroll expenses to the IRS, the complaint states.

A complaint is merely an accusation.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.  The bank fraud and false statement charges are each punishable by up to 30 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Shah Complaint

 

The owner and operator of several information technology companies based in the Chicago area has been charged in a complaint with allegedly filing a bank loan application fraudulently seeking more than $400,000 in a forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Inspector General J. Russell George of the Treasury Department Inspector General for Tax Administration (TIGTA), Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA OIG), and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office made the announcement.      

Rahul Shah, 51, of Evanston, Illinois, was charged in a federal criminal complaint filed in the Northern District of Illinois with bank fraud and making false statements to a financial institution.  

Shah allegedly caused to be submitted to a federally-insured bank an application for a $441,138 loan that was guaranteed by the SBA which significantly overstated the payroll expenses of a company that he controlled.  In support of the loan application, Shah allegedly caused to be submitted to the lender several different false and fraudulent IRS documents.  The complaint alleges that Shah caused to be submitted to the lender false IRS Forms 1099-MISC representing that the company made payments to several individuals who confirmed to investigators that they had not received the payments.  In addition, Shah signed and caused to be submitted to the lender what purported to be IRS Forms 941 representing his company’s quarterly payroll expenses for 2019.  However, a comparison between the documents submitted to the lender and the company’s IRS filings revealed that Shah’s company reported significantly lower payroll expenses to the IRS.  

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.   

A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tyler C. Murray for the Northern District of Illinois are prosecuting the case.  The Justice Department acknowledges and thanks the TIGTA, the SBA OIG, and the FBI for their efforts investigating this matter. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.  

CHICAGO — A former high-ranking member of the Sinaloa drug cartel in Mexico was arraigned today on federal drug charges following his extradition from Mexico. The defendant, FELIPE CABRERA SARABIA, was charged with one count of conspiracy to possess with the intent to distribute cocaine and heroin, one count of conspiracy to import into the United States cocaine and heroin, and distribution of heroin, in an indictment that was returned by a federal grand jury in January 2012.

Cabrera Sarabia, 50, was brought to the United States on June 12, 2020, after Mexican courts ordered him extradited on the three counts of the Indictment. He remains in federal custody after pleading not guilty this afternoon before U.S. Magistrate Judge Maria Valdez in Federal Court in Chicago.

According to the Indictment, from at least May 2005 until December 2008, Cabrera Sarabia conspired with other Sinaloa Cartel members to transport multi-ton quantities of illegal drugs into the United States.  Cabrera Sarabia is one of more than 20 members of the Sinaloa or Beltran-Leyva drug cartels to be charged in federal court in Chicago.  The investigation has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamines, and 78 kilograms of heroin.

The developments 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 Internal Revenue Service Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorneys Erika L. Csicsila and Andrew C. Erskine.

The conspiracy to possess with the intent to distribute cocaine and heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison. The conspiracy to import cocaine and heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison, and the distribution of heroin count carries a mandatory minimum penalty of 10 years’ imprisonment and a maximum penalty of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

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

CHICAGO — A man and a woman have been charged in federal court with attempting to steal cash from an automated-teller machine on the South Side of Chicago last week.

In the early morning hours of June 2, 2020, PARIS MICKLE and TAHKISHA HODGE, along with other unidentified individuals, forcibly removed the ATM from its enclosure in the drive-through area of a PNC Bank branch in the 8700 block of South Cottage Grove Avenue in Chicago’s Chatham neighborhood, according to a criminal complaint filed in U.S. District Court in Chicago.  The pair then unsuccessfully attempted to break into the machine, with Mickle using a blowtorch and Hodge at one point driving a vehicle with a rear chain connected to the ATM, the complaint states.  Chicago Police officers arrived at the scene and arrested Mickle and Hodge after brief chases, the complaint states.

The complaint charges Mickle, 29, of Madison, Wisc., and Hodge, 35, of Chicago, with one count of conspiracy to commit bank theft.  An initial federal court appearance for Hodge was held on June 10, 2020, before U.S. Magistrate Judge M. David Weisman, while an initial federal court appearance for Mickle has not yet been scheduled.

The complaint and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges.  The government is represented by Assistant U.S. Attorney Prashant Kolluri.

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

The conspiracy 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 — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced that, over the past several weeks, the city of Chicago and other municipalities in northern Illinois received more than $8.4 million in Department of Justice grants to respond to challenges posed by the COVID-19 pandemic.  The newly announced grants follow similar allocations from the Department in April of more than $20 million.

The grants were made pursuant to the Coronavirus Emergency Supplemental Funding program, which was authorized by recent legislation signed by President Trump.  The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19.  Potential uses include hiring personnel, paying overtime, purchasing protective equipment, and distributing resources to hard-hit areas.  Funds may also be used to help correctional facilities cover costs related to the virus, including, but not limited to, sanitation, contagion prevention, and measures designed to address the related medical needs of inmates, detainees, and correctional personnel.

“The Justice Department remains committed to helping offset the enormous costs incurred by local municipalities in the fight against COVID-19,” said U.S. Attorney Lausch.  “These important federal funds will provide critical resources to the city of Chicago and other municipalities throughout northern Illinois working to keep people safe during the pandemic.”

The recipients and awards announced today are as follows:

• City of Chicago: $6,785,503
• City of Rockford: $572,968
• City of Aurora: $144,486
• City of Joliet: $119,390
• City of Waukegan: $95,895
• City of Harvey: $65,348
• Town of Cicero: $61,259
• Lake County: $58,008
• DeKalb County: $58,008
• Kane County: $58,008
• City of Elgin: $56,526
• City of DeKalb: $49,712
• Cook County: $48,349
• Village of Maywood: $48,268
• Village of Skokie: $39,849
• City of Zion: $35,200
• City of Berwyn: $34,878
• Village of Bolingbrook: $34,797
• Village of Riverdale: $33,918
• City of Blue Island: $33,354

For a list of all awards in northern Illinois and across the country thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.

The Justice Department continues to move quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.  Local jurisdictions can determine if they are eligible and apply immediately by visiting the website of the Bureau of Justice Assistance, a component of the Office of Justice Programs (OJP).

“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for OJP.  “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”

OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims, and enhance the rule of law by strengthening the criminal and juvenile justice systems.  More information about OJP and its components can be found at www.ojp.gov.

The United States has filed a complaint seeking to permanently bar Markham, Illinois tax preparer Patricia Rivers, her daughter-in-law, Ki’esha M. Gary, and Rivers’s business, Alpha II Omega Tax, from preparing federal tax returns for others, the Justice Department announced today. 

The complaint against Rivers, Gary, and Alpha II Omega Tax was filed in the U.S. District Court for the Northern District of Illinois, and alleges that those parties prepare false federal income tax returns on which they understate their customers’ tax liabilities by reporting false or exaggerated itemized deductions, sole proprietorship business expenses, and rental real estate losses.

According to the complaint, the Internal Revenue Service interviewed 38 customers of Alpha II Omega Tax, who allegedly stated that they were not self-employed or did not incur the business expenses reported on their income tax returns; had no rental real estate or never suffered the significant rental losses reflected on their tax returns; did not make the donations or expend funds for the employment expenses listed by the defendants; and did not give Rivers and Gary any reason to believe that such deductions were legitimate. 

The complaint alleges that, by repeatedly understating their customers’ tax liabilities, the preparers at Alpha II Omega Tax have caused the United States to lose substantial tax revenue. The government contends in the complaint that Rivers and Gary prepared over 2,750 income tax returns between 2016 and 2019, and the returns of just the 38 customers the IRS interviewed reflect an actual tax loss to the IRS of $278,461. The complaint also asks the court to order the defendants to turn over the ill-gotten tax preparation fees they earned while engaging in this fraudulent conduct.

“The Tax Division will work with its IRS partners to shut down return preparers who claim improper or illegal deductions and credits for their customers” said Principal Deputy Assistant Attorney General Zuckerman. “Taxpayers should be vigilant so they do not file tax returns claiming false deductions.”

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.

In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

CHICAGO — A man has been charged with a federal firearm offense for allegedly illegally possessing a loaded semiautomatic handgun in Chicago this past weekend.

ADAM WALTON was arrested early Monday morning near the 11700 block of South Marshfield Avenue after Chicago Police officers observed him exit a store through a broken window, according to a criminal complaint filed in U.S. District Court in Chicago.  He was later taken into custody while in possession of a loaded semiautomatic handgun and a case of .22-caliber long-rifle ammunition, the complaint states.  A city of Chicago curfew took effect at 9:00 p.m. Sunday, and Walton was arrested more than three hours later.

Walton, 40, of Chicago, is charged with one count of illegal possession of a firearm by a convicted felon.  Walton was previously convicted of multiple criminal felonies, including two firearm-related offenses, and was not lawfully allowed to possess a firearm.  An initial appearance in federal court in Chicago has not yet been scheduled.

The federal charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing this charge.  The government is represented by Assistant U.S. Attorney Paul Mower.

Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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, including by prosecuting individuals who illegally possess firearms.

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.  Illegal possession of a firearm by a convicted felon is punishable by up to ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Two convicted felons have been charged with federal firearm offenses for allegedly illegally possessing loaded handguns in Chicago this past weekend.

KEVIN D. TUNSTALL, 29, of Oak Forest, and JOHNNIE L. LEE, 32, of Chicago, are each charged with one count of illegal possession of a firearm by a convicted felon.  Tunstall and Lee were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm.  Initial court appearances in U.S. District Court in Chicago have not yet been scheduled.

The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago 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.  Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges.  The government is represented in the Tunstall case by Assistant U.S. Attorney Shy Jackson, and in the Lee case by Assistant U.S. Attorney Shawn McCarthy.

Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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, including by prosecuting individuals who illegally possess firearms.

Tunstall and Lee were arrested separately this past weekend by Chicago Police officers. 

Tunstall was arrested early Saturday morning near the 600 block of South State Street after officers observed him in possession of a loaded semiautomatic handgun while seated in a vehicle, according to the charges. 

Lee was arrested late Sunday night after a vehicle he was driving crashed into a Chicago Police car near the 3200 block of North Southport Avenue, the charges allege.  He was taken into custody while in possession of a loaded handgun.  A city of Chicago curfew took effect at 9:00 p.m. Sunday, and Lee was arrested nearly two hours later.

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

CHICAGO — A Chicago man who allegedly pointed a loaded semiautomatic handgun at a federal agent early this morning has been charged with a federal firearm offense.

The agents approached JOSEPH HAMMOND near the 6800 block of South Sangamon Street in Chicago’s Englewood neighborhood while investigating a report of a man holding a gun and a toddler, according to a criminal complaint filed in U.S. District Court in Chicago.  As the agents approached in a vehicle, Hammond pointed the gun at one of the agents’ faces and told them to “keep moving,” the complaint states.  Hammond then picked up the toddler and ran from the area.  The agents pursued Hammond and later arrested him nearby, the complaint states.  Neither the toddler nor the agents were injured.

Hammond, 33, is charged with one count of illegal possession of a firearm by a convicted felon.  Hammond was previously convicted of criminal felonies, including firearm offenses and attempted murder, and was not lawfully allowed to possess a firearm.  A detention hearing in federal court in Chicago has been set for June 8, 2020.

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

Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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, including by prosecuting individuals who illegally possess firearms.

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.  Illegal possession of a firearm by a convicted felon is punishable by up to ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — Two individuals have been charged with federal firearm offenses for allegedly illegally possessing loaded handguns in downtown Chicago this past weekend.

BRANDON PEGUES, 28, of Riverdale, and AMBER L. PELTZER, 28, of Lansing, are each charged with one count of illegal possession of a firearm by a convicted felon.  Pegues and Peltzer were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm.  Initial court appearances in U.S. District Court in Chicago have not yet been scheduled.

The federal charges 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 David Brown, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Cook County State’s Attorney’s Office in bringing these charges.  The government is represented in the Pegues case by Assistant U.S. Attorney Matthew J. McCrobie, and in the Peltzer case by Assistant U.S. Attorney Albert Berry.

“We are working with the Chicago Police Department and our federal and state law enforcement partners to arrest and prosecute anyone involved in violence and destruction in Chicago,” said U.S. Attorney Lausch.  “We will continue our efforts to apprehend and charge illegal gun offenders and others engaging in violent crime.”

Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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, including by prosecuting individuals who illegally possess firearms.

Pegues and Peltzer were arrested separately early Sunday morning by Chicago Police Officers who were investigating reports of various malfeasances and unrest in the downtown area of the city.  A city of Chicago curfew took effect at 9:00 p.m. Saturday, and the defendants were arrested nearly four hours later.

According to the charges, Pegues was arrested near the 800 block of South Federal Street after officers observed a loaded semiautomatic handgun fall from his waistband.  Peltzer was arrested near the 1600 block of South Michigan Avenue after officers observed her peering out of a bar that had its glass front door shattered, the complaint states.  She was later taken into custody while in possession of a loaded handgun, the complaint states.

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

CHICAGO — A Chicago man was arrested today on a federal arson charge for allegedly setting fire to a Chicago Police Department vehicle this past weekend.

TIMOTHY O’DONNELL placed a lit object into the gas tank of the marked police vehicle while it was parked in the 200 block of North State Street in downtown Chicago on Saturday, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago.  The vehicle ignited in flames.  At the time, Chicago Police officers were in the area investigating reports of various malfeasances and unrest.  O’Donnell set the fire while wearing a “joker” mask that partially covered his face, the complaint states.

The complaint charges O’Donnell, 31, with one count of arson.  Federal authorities arrested O’Donnell this afternoon and carried out a court-authorized search of his residence.  An initial appearance in federal court in Chicago has not yet been scheduled.

The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; David Brown, Superintendent of the Chicago Police Department; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.  The government is represented by Assistant U.S. Attorneys James P. Durkin and Rajnath Laud.

“Anyone involved in destructive behavior – such as setting fire to a police car – should know that federal law enforcement will use all tools available to us to hold them accountable,” said U.S. Attorney Lausch.  “We will continue to work with the Chicago Police Department and our federal and state partners to apprehend and charge arsonists and others engaging in violent crime.”

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

CHICAGO — A federal grand jury has returned indictments against three convicted felons for allegedly illegally possessing loaded handguns in Chicago.

MITCHELL AGNEW, 20, CARL ADAMS, 35, and ROLAND BLACK, 39, all of Chicago, are each charged with one count of illegal possession of a firearm by a convicted felon.  All three defendants were previously convicted of criminal felonies and were not lawfully allowed to possess a firearm.

Three separate indictments were returned Wednesday in U.S. District Court in Chicago.  All three defendants are in law enforcement custody.  Arraignments have 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, and Explosives; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and David Brown, Superintendent of the Chicago Police Department.  The government is represented in the Agnew and Adams cases by Assistant U.S. Attorney Cornelius S. Vandenberg, and in the Black case by Assistant U.S. Attorney Grayson S. Walker.

Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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, including by prosecuting individuals who illegally possess firearms.

According to the charges, Agnew illegally possessed a loaded semiautomatic handgun on Feb. 16, 2020, in the East Garfield Park neighborhood; Adams illegally possessed a loaded handgun on Feb. 1, 2020, in the West Garfield Park neighborhood; and Black illegally possessed a loaded semiautomatic handgun on Feb. 11, 2017, in the Douglas neighborhood.

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.  Illegal possession of a firearm by a convicted felon is punishable by up to ten years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A Chicago man has been arrested on a federal complaint charging him with selling fentanyl-laced heroin on the city’s Southwest Side.

CHARLES KINDRED, 33, sold approximately 2.4 grams of the fentanyl-laced heroin during a meeting last month in a retail store parking lot in Chicago’s Ashburn neighborhood, according to a criminal complaint and affidavit filed in federal court.  Unbeknownst to Kindred, the buyer was cooperating with law enforcement, who conducted surveillance on the transaction, the complaint states.

The complaint charges Kindred with one count of distribution of a controlled substance.  Kindred was arrested Thursday morning and made an initial appearance in federal court Thursday afternoon.  A detention hearing is set for May 26, 2020, at 8:45 a.m., before U.S. District Judge Matthew F. Kennelly.

The arrest and complaint were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  The Oak Lawn Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Shy Jackson.

The federal investigation remains ongoing.

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

The drug distribution charge 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 — Two top officers of a north suburban subprime auto lending company have been indicted on federal fraud charges for allegedly misappropriating at least $5.3 million in company funds.

JAMES COLLINS was the Chief Executive Officer of Evanston-based Honor Finance LLC, and ROBERT DIMEO was its Chief Operating Officer.  From 2011 to 2018, Collins and DiMeo schemed with an accountant, MICHAEL WALSH, to divert money owed to Honor Finance to an outside entity the trio created and controlled, according to an indictment returned Wednesday in U.S. District Court in Chicago.  The defendants used the outside entity, Skokie-based LHS Solutions Ltd., to purchase GPS devices and then resell them to Honor Finance at a significant markup, the indictment alleges.  Honor Finance required that GPS devices be installed in certain vehicles purchased with loans it financed, so that the vehicles could be located and repossessed if the borrowers defaulted.

The indictment alleges that the defendants fraudulently misappropriated approximately $5.3 million from Honor Finance.  The trio transferred some of the misappropriated funds to themselves and their family members, the indictment states.  They also used some of the fraud proceeds to pay for a down payment on a lake house in Dowagiac, Michigan, according to the indictment.

The indictment charges Collins, 50, of Evanston, DiMeo, 49, of Park Ridge, and Walsh, 62, of Evanston, with ten counts each of mail fraud.  Arraignments via videoconference are set for May 20, 2020, at 10:00 a.m., before U.S. District Judge Robert M. Dow, Jr.

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 office of the FBI.  The government is represented by Assistant U.S. Attorney Matthew Getter.

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

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

CHICAGO — A federal grand jury has indicted a Chicago man for allegedly trafficking fentanyl-laced heroin and illegally possessing a loaded assault rifle while on parole from a previous drug conviction.

MITCHELL DWAYNE SIMMONS, 48, is charged with one count of possession of a controlled substance with intent to distribute, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegally possessing firearms as a previously convicted felon, according to an indictment unsealed Thursday in federal court in Chicago.  The indictment alleges that Simmons possessed the assault rifle and a handgun, both of which were loaded, as well as heroin, fentanyl-laced heroin, and marijuana, on Dec. 28, 2019, in Chicago.  At the time, Simmons was on court-supervised release after recently completing a prison sentence for a federal drug conviction in the Central District of Illinois.

Simmons was arrested Thursday on the new charges and was arraigned later that day in federal court in Chicago.  He pleaded not guilty to all charges in the indictment.  A detention hearing via videoconference is set for May 18, 2020, at 10:30 a.m., before U.S. District Judge Gary S. Feinerman.

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

Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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, including by prosecuting individuals who illegally possess firearms. 

Possession of a firearm in furtherance of a drug trafficking crime is punishable by a maximum sentence of life in federal prison and a mandatory minimum of five years, which must be served consecutively to the sentence for the underlying drug trafficking offense.  Possession of a controlled substance with the intent to distribute is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of 40 years.  Illegal possession of a firearm by a convicted felon carries a maximum sentence of ten years in federal prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

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.

CHICAGO – John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced a commitment to investigating reports of housing-related sexual harassment resulting from the COVID-19 pandemic.  The initiative is consistent with recent direction from Attorney General William P. Barr.

As the country adopts measures to slow the spread of COVID-19, many Americans have lost their jobs or had wages curtailed.  These losses have forced some to seek abatements or suspensions of rent.  According to a recent memo from the Attorney General, there have been reports of landlords demanding sexual favors and other acts of unwelcome sexual conduct to defer rent payments.  Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability.

“Sexual harassment in housing is illegal and despicable,” said U.S. Attorney Lausch.  “No one should have to tolerate this behavior under normal circumstances, and particularly not during a public health crisis.  My office will aggressively investigate these cases and bring action when warranted.”

U.S. Attorney Lausch this month sent a letter to fair housing advocacy groups, domestic violence organizations, and state and local law enforcement agencies, asking them to contact the U.S. Attorney’s Office if they receive complaints of sexual harassment in housing.  The letter renewed the U.S. Attorney’s commitment to deploying all available federal enforcement tools against anyone who engages in housing-related sexual harassment.

Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often impacts society’s most vulnerable populations.  Attorney General Barr’s directive reaffirmed the commitment the Department of Justice made in 2017 when it launched the Sexual Harassment in Housing Initiative.  The initiative works to identify barriers to reporting sexual harassment in housing, increase awareness of enforcement efforts, improve collaboration between federal, state, and local partners to increase reporting, and help survivors quickly and easily connect with valuable resources.

Anyone who believes they may have been a victim of housing-related sexual harassment is encouraged to contact the Department of Justice via phone: (844) 380-6178, email: fairhousing@usdoj.gov, or mail: U.S. Attorney’s Office, Attention: Patrick Johnson, Civil Rights Coordinator, 219 S. Dearborn St., Suite 500, Chicago, Ill. 60604.

CHICAGO – In honor of National Police Week, U.S. Attorney John Lausch recognized the service of federal, state, and local law enforcement, especially those officers who have made the ultimate sacrifice.

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

“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr.  “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety.  And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic.  This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers.  Their devotion and sacrifice to our peace and security will not be taken for granted.”

While most National Police Week events this year have been suspended due to the COVID-19 pandemic, the National Law Enforcement Officers Memorial Fund will host a virtual Candlelight Vigil tonight at 7:00 p.m. central time.  During the vigil, the names of fallen officers who are being added to the wall of the National Law Enforcement Memorial will be read aloud.  The vigil can be viewed live on YouTube by clicking here.

Unfortunately, 89 law enforcement officers died nationwide in the line of duty in 2019, according to the FBI’s Law Enforcement Officer Killed and Assaulted Program.  Five of those officers served in Illinois:

• Gerald Ellis, Illinois State Police
• Nicholas Hopkins, Illinois State Police
• Brooke Jones-Story, Illinois State Police
• Christopher Lambert, Illinois State Police
• Jacob Keltner, McHenry County Sheriff’s Office

This year, the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering service to the communities they swore to serve.  According to the Fraternal Order of Police and media reports, 101 law enforcement officers have died as a result of duty-related complications from the virus.

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

CHICAGO — A federal grand jury has indicted two roommates for allegedly trafficking cocaine and illegally possessing handguns in their apartment in downtown Oak Park.

An indictment returned in U.S. District Court in Chicago charges ISAIAH INGRAM, 30, and KEVIN HAGER, 34, with drug conspiracy and possession of firearms in furtherance of drug trafficking crimes.  The pair is also charged with illegally possessing firearms as previously convicted felons.

Law enforcement in February searched the defendants’ apartment in downtown Oak Park and discovered distribution quantities of cocaine and crack cocaine, as well as five semiautomatic handguns, all of which were loaded.  The search also revealed a money-counting machine, electronic scales, and a cooking pot and utensils with white residue on them.

Ingram is detained in federal custody without bond.  His arraignment is scheduled for May 12, 2020, at 9:30 a.m., before U.S. District Judge Robert M. Dow, Jr.  Hager is currently at large, and a warrant for his arrest has been issued.

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 office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The Oak Park Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Elizabeth R. Pozolo and Tiffany Ardam. 

Holding gun offenders accountable through federal prosecution is a centerpiece of Project Guardian and Project Safe Neighborhoods – the Department of Justice’s violent crime reduction strategies.  Project Guardian focuses specifically on investigating, prosecuting, and preventing gun crimes, and it emphasizes the importance of using modern technologies to promote gun crime intelligence.  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, including by prosecuting individuals who illegally possess firearms. 

The counts for drug conspiracy and possessing a firearm during a crime of violence are each punishable by up to life imprisonment, while illegal possession of a firearm by a convicted felon 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.

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 — Ten individuals are facing criminal charges as part of a federal investigation that disrupted a Mexico-to-Chicago cocaine pipeline.

During the investigation, law enforcement seized approximately 18 kilograms of cocaine and more than $300,000 in suspected illicit drug proceeds.  The alleged drug trafficking occurred in the South Loop and Streeterville neighborhoods of Chicago, as well as suburban locations.

The indictments were returned Wednesday in U.S. District Court in Chicago.  Two of the defendants remain at large, and warrants have been issued for their arrests.  Arraignments for the other eight defendants have not yet been scheduled.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Substantial assistance was provided by the Milwaukee, Wisc., Field Division of the DEA, Calumet City Police Department, Chicago Police Department, Evergreen Park Police Department, Gurnee Police Department, Oak Park Police Department, Palos Heights Police Department, Peoria Police Department, and the U.S. Postal Inspection Service.  Assistant U.S. Attorneys A.J. Dixon and Ashley A. Chung represent the government.

According to the indictments and criminal complaints previously filed in the case, ANDRES VILLEGAS, 30, of Berwyn, worked with suppliers in Mexico to transport cocaine into the United States.  Villegas conspired with a network of traffickers to distribute the drugs in the Chicago area, the charges allege.

The charges describe several drug transactions last year in Chicago and the suburbs.  One of the deals occurred in a high-rise parking garage in the Streeterville neighborhood on Chicago’s Near North Side, while another occurred in a parking garage in the South Loop neighborhood on the city’s Near South Side, according to the charges.  Other transactions cited in the charges occurred in Plainfield and Bolingbrook.

Charged in four separate indictments with drug conspiracy are Villegas; GUSTAVO AVILA, 23, of Plainfield; AARON ADAMS, 41, of Peoria; ADRIAN CURTIS, 42, of Peoria; DAVID PALM, 50, of Chicago; ALVIN BROWN, 51, of Chicago; SANTIAGO MERAZ, 35, of Milwaukee, Wisc.; JORGE VALDEZ, 33, of Milwaukee, Wisc.; ISIDRO MOYA, 59, of Chicago; and EDUARDO CARRIZALES, 45, of Laredo, Texas.

Moya and Meraz are currently at large.

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

CHICAGO — The head of a Chicago not-for-profit organization fraudulently converted or misappropriated at least $200,000 in State of Illinois grants intended to develop suburban commercial properties and fund a job training program, according to a 15-count federal indictment.

YESSE YEHUDAH operated the not-for-profit organization Fulfilling Our Responsibilities Unto Mankind, also known as FORUM.  From 2013 to 2016, Yehudah, on behalf of FORUM, applied for and received three grants totaling approximately $575,000 from the Illinois Department of Commerce and Economic Opportunity.  Two of the grants were intended to develop commercial properties in south suburban Dolton, while the third was meant for FORUM to operate a weatherization jobs training program.  The indictment alleges that Yehudah fraudulently converted substantial quantities of the grant funds by making materially false statements and submitting false documents to the DCEO.  The indictment describes several of the alleged false statements, including when Yehudah represented to the DCEO that FORUM had spent almost all of a $100,000 grant on construction work, when, in fact, no actual construction work had begun.

The indictment was returned Wednesday in U.S. District Court in Chicago.  Yehudah, 71, of Chicago, is charged with eight counts of bank fraud and seven counts of wire fraud.  Arraignment has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Teri Donaldson, Inspector General, U.S. Department of Energy, Office of the Inspector General.  The DCEO provided valuable assistance during the investigation.  The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau.

In addition to the alleged fraud in obtaining the DCEO grants, the indictment accuses Yehudah of scheming to defraud a bank.  After FORUM received similar development grants from the DCEO and other federal and local agencies, including the U.S. Department of Housing and Urban Development and the Community and Economic Development Association of Cook County, Yehudah issued checks from FORUM and another entity he controlled to various subcontractors, the indictment states.  Yehudah then forged the subcontractors’ signatures – without their knowledge – to endorse the checks over to himself, the indictment alleges.

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 bank fraud is punishable by up to 30 years in prison, while each count of wire fraud carries a maximum sentence of 20 years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced that state and local governmental entities in northern Illinois received more than $20 million in Department of Justice grants to respond to challenges posed by the COVID-19 pandemic.

The grants were made pursuant to the Coronavirus Emergency Supplemental Funding program, which was authorized by recent legislation signed by President Trump.  Additional grants are expected to be made soon.  The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19.  Potential uses include hiring personnel, paying overtime, purchasing protective equipment, and distributing resources to hard-hit areas.  Funds may also be used to help correctional facilities cover costs related to the virus, including, but not limited to, sanitation, contagion prevention, and measures designed to address the related medical needs of inmates, detainees, and correctional personnel.

“These substantial federal funds will provide crucial resources to northern Illinois agencies working to keep people safe during the pandemic,” said U.S. Attorney Lausch.  “The Justice Department is committed to helping offset the tremendous costs incurred by our state and local partners in the fight against COVID-19.”

The recipients and awards announced today are as follows:

• Illinois Criminal Justice Information Authority: $19,956,148
• Winnebago County: $58,008
• City of Calumet City: $54,203
• Will County: $32, 313

For a list of all awards across the country thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.

The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.  Local jurisdictions can determine if they are eligible and apply immediately by visiting the website of the Bureau of Justice Assistance, a component of the Office of Justice Programs (OJP).

“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for OJP.  “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”

OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems.  More information about OJP and its components can be found at www.ojp.gov.