Northern District of Illinois

CHICAGO — Four men sought to maintain and increase their positions in a violent Chicago street gang when they committed fatal shootings on the city’s Northwest Side, according to a newly unsealed federal indictment.

Charged with committing murder in aid of racketeering are HECTOR ROJAS, 26, JOSE MARTINEZ, 25, SANTO LOZOYA, 21, and PEDRO NAVARRO, 22, all of Chicago.  Navarro is also charged with committing two attempted murders in aid of racketeering.

The indictment was returned last month by a federal grand jury in Chicago, and it was ordered unsealed on May 9, 2019.  The defendants have pleaded not guilty to the charges.  U.S. District Judge Matthew F. Kennelly set a status hearing for June 20, 2019, at 1:30 p.m., in federal court in Chicago.

The defendants are members of the Milwaukee Kings street gang, according to the indictment.  All four defendants are currently in law enforcement custody. 

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Jeannice Appenteng and Jordan Matthews.

“Combating violent gangs like the Milwaukee Kings is a top priority in our office,” said U.S. Attorney Lausch.  “With this indictment, we’ve taken a major step toward removing violent offenders from the streets of Chicago.”

“When gang members engage in drug trafficking and other violent crimes, fear is generated in our communities,” said SAC Sallet.  “This indictment demonstrates our commitment to working with our law enforcement partners to keep our streets safe.  Together we will remove armed, violent criminals from our neighborhoods and bring them to justice.”

The indictment alleges that the Milwaukee Kings is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder, attempted murder, and assault.  Members of the Milwaukee Kings boasted of the gang’s activities on social media, threatened violence against rival gang members, and took steps to prevent law enforcement’s detection of criminal activities, according to the indictment.

Navarro is accused in the indictment of murdering Xavier Soto on April 27, 2017, for the purpose of maintaining and increasing Navarro’s position in the gang.  Soto, 15, was fatally shot in the 4900 block of West George Street in Chicago’s Cragin neighborhood.  Navarro also attempted to murder two other individuals on the same day as the Soto killing, the indictment states.

Martinez and Lozoya are accused of killing Crispin Coliz on Dec. 16, 2016, for the purpose of maintaining and increasing their positions in the gang, the indictment states.  Coliz, 28, was fatally shot in the 7200 block of West Grace Street in Chicago’s Dunning neighborhood.

The indictment accuses Rojas of murdering Daniel Guerra on Sept. 2, 2015, for the purpose of maintaining and increasing Rojas’s position in the gang.  Guerra, 19, was fatally shot in the 5900 block of West Diversey Avenue in Chicago’s Belmont Cragin 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.  Murder in aid of racketeering is punishable by a mandatory sentence of life in prison, and the death penalty is also possible.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — An information technology specialist has been sentenced to three years in federal prison for hacking into the servers of a north suburban company where he formerly worked as a contractor.

EDWARD SOYBEL, 35, of Chicago, illegally accessed the servers of Lake Forest-based W.W. Grainger Inc., on multiple occasions in late 2016.  Soybel intentionally caused damage to Grainger’s automated inventory management program, which operates on-site dispensing machines for customers throughout the United States.  The dispensing machines provide secure access to durable products, such as safety equipment.  Soybel had worked as a technical support contractor at Grainger’s facility in Niles until he was terminated in early 2016.

A federal jury last year convicted Soybel on all 12 counts against him, including ten counts of intentionally causing damage to protected computers, one count of attempting to cause damage to protected computers, and one count of attempting to access a protected computer without authorization. 

Soybel has been in custody since December 2018, after he recorded a video of himself issuing threats of violence to law enforcement.  Before imposing the sentence Wednesday in federal court, U.S. District Judge Matthew F. Kennelly stated that he considered Soybel’s threats to be a significant aggravating factor, and he increased the sentence due to the gravity of the threats.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The Chicago Police Department provided valuable assistance.

“Defendant’s crimes were not an isolated lapse of judgment or one-off outburst,” Assistant U.S. Attorney Nicholas J. Eichenseer argued in the government’s sentencing memorandum.  “He essentially declared cyber war on Grainger, not out of principle or for financial gain, but out of spite.”

Evidence at trial revealed that Soybel repeatedly gained unauthorized access to a secure computer network of Grainger, a multi-national industrial supply company.  The network was an inventory-management system that operated a nationwide grid of dispensing machines to securely provide tools and safety equipment at customer sites.  Soybel remotely broke into the computer system by stealing and then using his former co-workers’ usernames and passwords.  Once inside the network, Soybel deleted millions of database records and reset the passwords.

The deletions caused outages of the system, locked out users, and temporarily impaired the dispensing machines.  Soybel’s attacks began in July 2016 and continued for several months.  Grainger incurred at least $300,000 in costs responding to the cyber-attacks.

CHICAGO — A Chicago software developer has been sentenced to three months in federal prison for fraudulently obtaining $200,000 in grant funds from the National Aeronautics and Space Administration and the National Science Foundation.

MIROSLAV VELEV, a mathematician with a doctorate in electrical and computer engineering, operated the Chicago-based software development and consulting company Aries Design Automation LLC, which developed methods to solve electronic design automation problems.  Velev sought and obtained federal grant funds for his company through the Small Business Innovation Research program, which provides opportunities for small businesses to participate in federally-sponsored research and development.  Aries was awarded a total of $200,000 in grants from NASA and the NSF after Velev made materially false representations about the company’s financial condition.

Velev, 50, of Chicago, pleaded guilty last year to one count of conversion of government funds, a misdemeanor.  U.S. District Judge Gary Feinerman on Wednesday sentenced Velev to three months in federal prison.  Velev previously paid restitution of $150,000 to NASA and $50,000 to the NSF.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Curtis Vaughn, Special Agent-in-Charge of the Office of Investigations of NASA’s Office of Inspector General, Eastern Field Office; and Jennifer Springmann, Special Agent-in-Charge of the NSF’s Office of Inspector General’s Civil, Criminal and Program Integrity Division.

“Absent Velev’s fraud and false statements, his proposals would not have been approved and he would not have been awarded federal funds,” Assistant U.S. Attorney William R. Hogan, Jr., argued in the government’s sentencing memorandum.  “By intentionally deceiving the government, Velev personally benefitted at the expense of another eligible small business, and at the expense of the taxpayers who funded the SBIR program.”

“This investigation exposed an individual that used federal funds to advance his own personal gain,” said SAC Vaughn.  “I applaud the outstanding efforts of our agents and law enforcement partners.”

“The Small Business Innovation Research Program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research,” said SAC Springmann.  “It is essential to protect the integrity of this program.  The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds, and I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort.”

The SBIR program required applicant companies to show independent, third-party investments or commitments of investments in their projects.  Velev admitted in a plea agreement that he falsely represented to NASA and the NSF that Aries had received the required independent investment from an individual investor.  Velev fraudulently submitted in his grant proposals a screenshot of his company’s bank account that reflected a funds transfer from the purported investor.  In reality, the investor did not exist, and Velev had routed his own money into the account to support the false appearance of an investment. 

Velev also submitted in his grant proposals an “investment letter” that identified a Chief Financial Officer for the purported investor.  In fact, the alleged CFO was an acquaintance of Velev’s wife and had no connection with an investment in Aries.

CHICAGO — A suburban Chicago man was sentenced today to 16 years in federal prison for attempting to detonate an explosive device at a bar in downtown Chicago.

ADEL DAOUD, 25, of Hillside, Ill., attempted to detonate what he thought was a 1,000-pound car bomb at a popular bar in the downtown Loop neighborhood of Chicago on Sept. 14, 2012.  Prior to the evening of the planned attack, Daoud had been preaching for violent jihad and expressed an interest in working with operational terrorists.  He researched and created a list of potential Chicago-area targets, which included movie theaters, bars and nightclubs, a suburban mall, and military recruiting centers.  Unbeknownst to Daoud, the explosive device at the Loop bar was inert and had been constructed by bomb technicians from the Federal Bureau of Investigation.  Daoud was arrested on the scene after twice attempting to detonate the purported bomb.  He has been in federal custody since then.

U.S. District Judge Sharon Johnson Coleman imposed the sentence in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI.  The government is represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam of the Northern District of Illinois, with assistance by Trial Attorney Bridget Behling of the National Security Division’s Counterterrorism Section.

“Protecting our national security is the Department of Justice’s top priority,” said U.S. Attorney Lausch.  “We will continue to work with our law enforcement partners to prevent, disrupt, and defeat terrorist operations before they occur.”

“The conviction and sentencing of Adel Daoud are evidence of the FBI’s commitment to working vigilantly with our local, state, and federal law enforcement partners to prevent violent attacks before they occur,” said SAC Sallet.  “This investigation would not have been possible without the joint efforts of our law enforcement community.  As long as terrorists threaten the security of our nation, we will unite to shield our citizens from harm.  Our message to terrorists is clear: We will find you, we will arrest you, and we will bring you to justice.”

The attempted bombing was one of three cases against Daoud to be resolved today as part of the sentencing order.  While he was jailed for attempting to detonate the bomb, Daoud in late 2012 solicited his cellmate to have a violent gang member murder an FBI agent who had posed undercover as a terrorist during the investigation.  The murder-for-hire plot was not carried out, and the FBI agent was not injured.  The third case against Daoud involved a violent assault on a fellow jail inmate in 2015.  While incarcerated at the Metropolitan Correctional Center in Chicago, Daoud attacked an inmate who had drawn what Daoud felt was an insulting picture of the prophet Mohammad.  The inmate suffered lacerations on his head and a bite mark on an arm.

CHICAGO — A federal jury in Chicago has convicted a suburban man of conspiring to straw purchase several handguns on behalf of a woman who allegedly tried to smuggle the weapons into Egypt.

OMRAN ISMAIL, 53, of Burbank, was found guilty Wednesday of both counts against him, including one count of conspiracy to knowingly make a materially false statement to a licensed dealer and knowingly and willfully smuggle the firearms on a common carrier, and one count of acquiring a firearm from a licensed dealer by means of a materially false statement.  Evidence at trial revealed that Ismail in November 2013 purchased four handguns from a licensed firearms dealer in Tinley Park, and then immediately transferred the guns to co-defendant OLA SAYED so that Sayed could bring them to Egypt.  The guns were discovered in Sayed’s checked luggage at O’Hare International Airport in Chicago as she attempted to board a flight to Cairo, via London.  Sayed, 47, of Palos Park, was charged in the conspiracy but fled and is considered a fugitive.

The conspiracy count carries a maximum sentence of five years in prison, while the straw purchasing count is punishable by up to ten years.  U.S. District Judge Sara L. Ellis set sentencing for Dec. 3, 2019, at 10:00 a.m.

Ismail’s conviction was 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; and Eddie Johnson, Superintendent of the Chicago Police Department.  Valuable assistance was provided by U.S. Customs and Border Protection.  The government is represented by Assistant U.S. Attorneys Abigail L. Peluso and Katie M. Durick.

“Straw purchasers enable unlawful possession of guns and the violence that may follow,” said U.S. Attorney Lausch.  “We will continue to work with our law enforcement partners to hold accountable those who engage in these illicit transactions.”

“Individuals who circumvent our nation’s gun laws to illegally obtain firearms for others stand as a threat to our public safety and national security,” said Special Agent-in-Charge Gibbons.  “HSI will continue to work with our law enforcement partners to enforce these vital laws.”

According to evidence presented at the three-day trial, Ismail purchased four 9mm firearms from the dealer on Nov. 18, 2013.  Sayed accompanied Ismail to the gun store, and Ismail falsely represented to the dealer that Sayed was his wife.  When he purchased the firearms, Ismail completed a federal form falsely certifying that he was the “actual buyer.”  Ismail picked up the guns from the dealer five days later, at which time he confirmed that all of his answers on the form were “still true, correct, and complete.”  Ismail then immediately transferred all four firearms to Sayed, so that Sayed could take the firearms with her to Egypt. 

Sayed purchased two additional 9mm firearms, and then took all six guns with her to O’Hare Airport on Dec. 23, 2013, according to the charges pending against her.  Authorities at the airport discovered the guns in Sayed’s checked luggage as she waited to board her flight, the charges allege.

CHICAGO — A musician from a west suburb of Chicago was sentenced today to ten years in federal prison for enticing several underage girls, some as young as 14 years old, to produce sexually explicit videos of themselves.

AUSTIN JONES, 26, of Bloomingdale, pleaded guilty earlier this year to one count of receipt of child pornography.  U.S. District Judge John Z. Lee imposed the sentence after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago.  The Illinois Attorney General’s Internet Crimes Against Children Task Force and the Bloomingdale Police Department provided valuable assistance in the investigation.

“Production and receipt of child pornography are extraordinarily serious offenses that threaten the safety of our children and communities,” Assistant U.S. Attorney Katherine Neff Welsh argued in the government’s sentencing memorandum.  “Jones’s actions took something from his victims and their families that they will never be able to get back.”

“Today’s sentencing of Austin Jones represents a major step towards justice for the young victims whom he manipulated and exploited,” said Special Agent-in-Charge Gibbons.  “HSI is committed to protecting the most vulnerable members of our society, our children, from predators who abuse their trust.”

Jones is a musician with a significant following on social media, including Facebook and YouTube.  His online music videos have been viewed millions of times. 

Jones admitted in a plea agreement that in 2016 and 2017 he chatted with six underage girls on Facebook and enticed them to produce pornographic videos of themselves and send them to him.  Jones told some of his victims to send him the videos as a way to “prove” they were his biggest fans.  He also told some of his victims that the videos were part of a modeling opportunity, and that he could assist them in gaining followers on Instagram.

In addition to the six victims who sent videos, Jones further admitted in the plea agreement that he used Facebook on approximately 30 other occasions to attempt to persuade minor girls to send him sexually explicit videos and photographs.

If you believe you are a victim of sexual exploitation, you are encouraged to call the ICE Tip Line at 1-866-DHS2-ICE (1-866-347-2423) or the National Center for Missing and Exploited Children at 1-800-843-5678.  The hotlines are available 24 hours a day, seven days a week.

CHICAGO — A suburban tax professional has pleaded guilty to preparing and filing more than 160 fraudulent tax returns in an attempt to bilk the Internal Revenue Service out of at least $550,000.

LAURIE HELFER, 57, of Hillside, pleaded guilty Tuesday to two counts of willfully aiding and assisting in the preparation of a fraudulent tax return.  Each count is punishable by a maximum sentence of three years in federal prison.  U.S. District Judge Virginia M. Kendall set sentencing for Aug. 22, 2019.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.  The government is represented by Assistant U.S. Attorney Carol Bell.

Helfer operated the tax-preparation businesses Laurie’s Freelance & Tax Preparation Services and The Tax Lady Laurie Inc., which were based in the western suburbs of Chicago.  According to a written plea agreement, Helfer filed approximately 162 false returns for the tax years 2007 through 2010.  In each of the returns, Helfer knowingly made material, false statements to obtain refunds to which her clients were not otherwise entitled.  The statements included false information about employment, educational, and child care expenses.  Helfer’s conduct resulted in an actual federal tax loss of approximately $54,797, and attempted losses of between $550,000 and $1.5 million, the plea agreement states.

CHICAGO — A Chicago man sought to maintain and increase his position in a violent street gang when he fatally shot a man outside a South Side gas station last fall, according to a federal indictment unsealed today.

DERRICK SWANSON, 22, of Chicago, is charged with committing murder in aid of racketeering, and illegally possessing a handgun.  He was arrested this morning.  Arraignment in U.S. District in Chicago has not yet been scheduled.

The indictment accuses Swanson of murdering Anthony Carter on Oct. 2, 2018, for the purpose of maintaining and increasing Swanson’s position in the Evans Mob street gang.  Carter, 27, was fatally shot outside a gas station in the 800 block of East 79th Street in Chicago’s Grand Crossing neighborhood.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Vikas Didwania, Rajnath Laud, and Albert Berry III.

The indictment alleges that the Evans Mob, also known as “GuttaGang” and “HitzSquad,” is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder, attempted murder and assault, to acquire and preserve the gang’s territory on the South Side of Chicago.  Members of the Evans Mob publicly claimed responsibility for their acts of violence, taunted rival gang members, and took steps to prevent law enforcement’s detection of criminal activities, according to the indictment.

The indictment also renews a charge that was initially filed in November against another suspected Evans Mob member, PIERRE ROBINSON, 26, of Chicago.  Robinson is accused of murdering Glenn Houston on Dec. 23, 2014, for the purpose of maintaining and increasing Robinson’s position in the gang.  Houston, 23, was fatally shot inside a store about four blocks west of where Carter was killed.  

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.  Murder in aid of racketeering is punishable by a mandatory sentence of life in prison, and the death penalty is also possible.   The illegal gun possession charge is punishable by up to ten years in prison.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal judge has sentenced a Chicago man to 30 years in prison for leading an armed robbery crew that targeted stores on the city’s North and Northwest Sides.

ROBERT L. BERRIOS, 51, committed 24 armed robberies or attempted armed robberies in 2012.  His crew mainly struck at cellular telephone stores, often terrorizing store employees by wearing masks and brandishing firearms.  In some of the heists, the robbers physically restrained store employees with zip ties.  The robberies netted the crew $115,063.60 in cash.

A jury in 2017 convicted Berrios on robbery, firearm, and conspiracy charges.  In addition to the 30-year prison sentence, U.S. District Judge Matthew F. Kennelly on Tuesday ordered Berrios to pay $115,063.60 in restitution to the victim stores.  Judge Kennelly made findings that Berrios was the leader of the robbery crew and that he obstructed justice by committing perjury during his trial.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The Chicago Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Angel M. Krull and Georgia Alexakis.

Three other members of the robbery crew were previously sentenced to prison terms.  DAVID REVIS, of Chicago, was sentenced to 15 years; JULIO RODRIGUEZ, of Chicago, was sentenced to nine years; and LUIS DIAZ, of Chicago, was sentenced to three years.

Evidence at Berrios’s trial revealed that the crew worked together to gather intelligence about possible targets, including store hours and the number of employees working at a given time.  The crew communicated with one another to plan the robberies and procure the necessary tools, including masks, zip ties, firearms, and getaway vehicles.

The jury convicted Berrios of leading the conspiracy to commit all 24 robberies or attempted robberies, and specifically made findings of guilt for nine robberies:

July 1, 2012: Walgreens store, 5935 W. Addison St., Chicago.

July 28, 2012: Currency Exchange, 2753 N. Ashland Ave., Chicago.

Aug. 15, 2012: Currency Exchange, 2814 N. Milwaukee Ave., Chicago.

Sept. 19, 2012: T-Mobile store, 1552 W. Chicago Ave., Chicago.

Sept. 28, 2012: T-Mobile store, 1958 W. Irving Park Rd., Chicago.

Oct. 2, 2012: T-Mobile store, 4000 W. Fullerton Ave., Chicago.

Oct. 13, 2012: T-Mobile store, 3951 N. Kimball Ave., Chicago.

Oct. 16, 2012: Cricket store, 3200 W. Armitage Ave., Chicago.

Oct. 22, 2012: AT&T store, 3955 W. Belmont Ave., Chicago.

CHICAGO — An Elk Grove Village man has been indicted in federal court on charges he tried to kill a postal carrier on New Year’s Eve.

CAMERON RUEBUSCH, 24, is charged with one count of attempted murder, one count of assault with a dangerous weapon, one count of using and discharging a firearm during a crime of violence, and one count of illegal possession of a firearm by a convicted felon.  A co-defendant, RONALD BEYER, JR., 24, of Mount Prospect, is charged with one count of being an accessory after the fact to the assault allegedly committed by Ruebusch.

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

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The Elk Grove Village Police Department worked closely with the U.S. Postal Inspection Service and provided substantial assistance during the investigation.  The government is represented by Special Assistant U.S. Attorney Chester Choi.

According to the indictment and a criminal complaint previously filed in the case, Ruebusch shot the U.S. Postal Service carrier on Dec. 31, 2018, in Elk Grove Village.  According to the complaint, the mail carrier had recently completed a delivery in the 200 block of West Brantwood Avenue when Ruebusch approached the USPS vehicle and said something to the effect of, “What’s up man?”  The mail carrier put the vehicle in drive and drove away as Ruebusch fired a handgun, the charges allege.  The mail carrier was wounded but survived.

Beyer allegedly drove Ruebusch from the scene after the shooting.

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

The attempted murder and assault charges are each punishable by up to 20 years in prison, while the maximum sentence for each of the firearm counts is ten years.  The accessory charge against Beyer is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal jury in Chicago has convicted a Southern California man of participating in an insider trading conspiracy that used inside information about an impending corporate acquisition to earn trading profits.

ERIC WELLER, 54, of Hermosa Beach, Calif., was found guilty Tuesday of one count of conspiracy to engage in insider trading.  The jury acquitted Weller on three counts of securities fraud.

The conviction is punishable by a maximum sentence of five years in prison.  U.S. District Judge Matthew F. Kennelly set sentencing for July 10, 2019.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The U.S. Securities and Exchange Commission provided valuable assistance.  The government is represented by Assistant U.S. Attorneys John D. Mitchell and Jason Yonan.

Weller was among nine defendants charged as part of the federal investigation.  Five defendants pleaded guilty to the conspiracy charge prior to trial and are awaiting sentencing.  Three other defendants entered into deferred prosecution agreements after admitting their roles in the conspiracy and cooperating with the government’s investigation. 

Evidence at trial revealed that a vice president of corporate sales at Minnesota-based Life Time Fitness Inc. obtained material, non-public information about the potential sale of the company in 2015.  The executive knew that a sale would likely cause an increase in the company’s stock price, and the executive shared the inside information with a longtime friend so that the friend could trade and profit.  The friend shared the information with three co-conspirators, one of whom then shared it with Weller and three others.          

After receiving the material, non-public information, Weller purchased Life Time Fitness securities before news of the potential sale became public via a media report.  The report caused the stock price to increase substantially.  During a three-week period, the defendants earned more than $860,000 in illegal profits from the trades, including more than $550,000 earned by Weller.

ROCKFORD — A Rockford man, BRIAN KOTLIENTHONG, 32, appeared in federal court today following a grand jury indictment charging him with three counts of distributing cocaine and three counts of illegally possessing a firearm as a convicted felon.

Kotlienthong appeared before U.S. Magistrate Judge Iain D. Johnston, who scheduled a detention hearing for April 22, 2019, at 2:00 p.m., in federal court in Rockford.

As alleged in the indictment, Kotlienthong distributed cocaine three times in Rockford in December 2017.  The indictment further alleged that Kotlienthong, who had a previous felony conviction, illegally possessed two 9mm pistols and a 9mm rifle.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The investigation was conducted by ATF and the Stateline Area Narcotics Team, which includes law enforcement officers and agents from the Illinois State Police and the Ogle County Sheriff’s Office. The government is represented by Assistant U.S. Attorney Talia Bucci.

Each count of distributing cocaine carries a maximum penalty of up to 20 years in prison, to be followed by a period of supervised release of three years to life, and a fine of up to $1 million.  Each count of illegally possessing a firearm carries a maximum penalty of up to ten years in prison, to be followed by up to three years of supervised release, and a fine of up to $250,000.  If convicted, the Court must impose a reasonable sentence under federal sentencing 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 entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

ROCKFORD — A DeKalb resident, LUIS ALFREDO DELACRUZ, 49, was indicted today by a federal grand jury in Rockford on two counts of bringing aliens to the United States at a place other than a designated port of entry for commercial advantage or private financial gain, two counts of bringing aliens to the U.S. at a place other than a designated port of entry, two counts of transporting illegal aliens within the U.S. for commercial advantage or private financial gain, and eight counts of harboring illegal aliens for commercial advantage or private financial gain.

Delacruz will appear for arraignment on April 23, 2019, at 11:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  The DeKalb Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.

As alleged in the indictment, in November 2015 and April 2016, Delacruz brought to the United States two alien individuals who had not received prior official authorization to enter.  Delacruz did not bring the individuals through immigration at a designated port of entry, the indictment states.  It is further alleged that on June 1, 2018, Delacruz illegally harbored eight illegal aliens in buildings or other places through employment by Alfredo’s Iron Works in Cortland.  Delacruz allegedly harbored these aliens for commercial advantage and his own financial gain.

Each count of bringing aliens to the United States at a place other than a designated port of entry for commercial advantage or private financial gain carries a mandatory minimum sentence of three years in prison and a maximum of ten years.  Each count of bringing aliens to the U.S. at a place other than a designated port of entry carries a maximum sentence of five years in prison.  Each count of transporting illegal aliens within the U.S. for commercial advantage or private financial gain and each count of harboring illegal aliens for commercial advantage or private financial gain carries a maximum sentence of ten years in prison.  Each count in the indictment also carries a maximum fine of $250,000, and a period of supervised release following imprisonment of up to three years.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. 

The public is reminded that an indictment contains only charges and is not evidence of guilt.  The 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 — Federal authorities today announced criminal prosecutions against several Chicago-area defendants for a variety of alleged tax schemes.  With the arrival of Tax Day, the prosecutions serve as a reminder that individual taxpayers are responsible for the contents of their own return.

The recent prosecutions announced today include charges against a south suburban tax professional who allegedly filed a false personal income tax return, as well as a guilty plea by a west suburban general contractor who admitted willfully failing to file income tax returns for nearly a decade.

In addition to criminal penalties, including potential incarceration, tax evaders remain responsible for all taxes and interest due, as well as civil penalties. 

Today is the nation’s tax deadline.

“Preserving the integrity of the federal tax system is a significant priority in our office,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “Through vigorous criminal enforcement of the internal revenue laws, we will hold accountable those who attempt to cheat the system.”

“As the tax filing deadline quickly approaches, I urge all Chicago-area residents to fully comply with federal tax laws,” said Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  “If you choose to disobey these laws, please understand that you are not just hurting the government, you are hurting your neighbors and your community.  IRS special agents will continue to serve the American people by aggressively pursuing tax criminals year round.”

A federal jury last week convicted JERMAINE JACKSON, 48, of Chicago, of filing 13 fraudulent federal income tax returns in the names of various trusts he created.  Each of the returns sought a fraudulent tax refund based on fictitious income and withholding numbers.  The IRS identified the bogus nature of a dozen of the returns, but the agency paid a refund of $900,000 on one of them.  U.S. District Judge John Z. Lee set sentencing for July 10, 2019.  The government in Jackson’s case is represented by Assistant U.S. Attorneys Stephen Heinze and Patrick King.

In a criminal information filed last month, the U.S. Attorney’s Office charged LISA LLOYD TAYLOR, 51, of Country Club Hills, with one count of willfully filing a false personal income tax return, and one count of stealing approximately $134,835 of Social Security funds.  According to the charges, Taylor, who owned Ebiz Accounting Services in Country Club Hills, filed a false personal income tax return for calendar year 2012 that falsely listed gross receipts or sales from her business as $7,890, when Taylor knew that her gross receipts or sales substantially exceeded that amount.  Taylor has pleaded not guilty to the charges.  A status hearing is set for April 23, 2019, before U.S. District Judge Andrea R. Wood.  The government in Taylor’s case is represented by Assistant U.S. Attorney Nani Gilkerson.  The public is reminded that charges are not evidence of guilt.  Taylor is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The general contractor, STEPHEN KEEFE, 47, of Downers Grove, pleaded guilty last month to multiple counts of willfully failing to file personal income tax returns.  Keefe, who previously owned Downers Grove-based Stephen Keefe Construction and S. Keefe Construction, admitted in a plea agreement that he willfully failed to file income tax returns for the calendar years 2010 through 2017, despite receiving taxable income of at least $2.08 million in those years.  Keefe’s conduct caused a combined tax loss to the federal and state government of approximately $379,493.  U.S. Magistrate Judge Sunil R. Harjani set sentencing for June 28, 2019.  The government in Keefe’s case is represented by Assistant U.S. Attorney Patrick King.

Another recent tax prosecution resulted in a term of imprisonment for a northwest suburban business executive.  PETER KONOPKA, 72, of Marengo, was sentenced in December to six months in federal prison, and ordered to pay restitution of $189,837.  While President of Illinois-based Solarcrete Energy Efficient Building Systems, Konopka filed a bankruptcy petition on behalf of Solarcrete that contained false statements in order to conceal corporate assets from the bankruptcy trustee.  In addition, Konopka willfully failed to report personal income for the calendar year 2011 that included payments from business accounts that were used to pay off personal loans.  The government in Konopka’s case was represented by Assistant U.S. Attorney William Hogan.

For tips to assist taxpayers in choosing a reputable tax professional or preparing their own taxes, visit the official IRS website: https://www.irs.gov/help-resources.

CHICAGO — A recycling executive has been sentenced to three years in federal prison for illegally landfilling potentially hazardous electronic waste as part of a scheme to re-sell the materials and avoid paying income taxes.

BRIAN BRUNDAGE owned Intercon Solutions Inc. and EnviroGreen Processing LLC, which purported to recycle electronic waste on behalf of corporate and governmental clients.  Brundage represented to the clients that the materials would be disassembled and recycled in an environmentally sound manner.  In reality, from 2005 to 2016, Brundage caused thousands of tons of e-waste and other potentially hazardous materials to be landfilled, stockpiled, or re-sold at a profit to companies who shipped the materials overseas.  Brundage evaded $743,984 in federal taxes by concealing the income he earned from re-selling the e-waste and from paying himself funds that he falsely recorded as Intercon business expenses.  Brundage spent the purported expenses for his own personal benefit, including wages for a nanny and housekeeper, jewelry purchases, and payments to a casino in Hammond, Ind.

Brundage, 47, of Schererville, Ind., pleaded guilty last year to one count of wire fraud and one count of tax evasion.  U.S. District Judge Joan Humphrey Lefkow on Thursday imposed the three-year prison sentence and ordered Brundage to pay more than $1.2 million in restitution to his victims.

The sentence was announced by John C. Kocoras, First Assistant United States Attorney for the Northern District of Illinois; Jennifer Lynn, Special Agent-in-Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division; Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Jeffrey Ryan, Special Agent-in-Charge of the U.S. General Services Administration’s Office of Inspector General, Great Lakes Regional Investigations Office.  The Hong Kong Environmental Protection Department provided valuable assistance in the investigation.  The government was represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Kelly Greening of the Northern District of Illinois, and Special Assistant U.S. Attorney Crissy Pellegrin of the EPA.

Brundage admitted in a plea agreement that he caused employees of Chicago Heights-based Intercon and Gary, Ind.-based EnviroGreen to sell some of the e-waste and other materials to vendors who Brundage knew would ship the materials overseas.  Some of the materials contained Cathode Ray Tubes, which are glass video display components of computer and television monitors, and which contain potentially hazardous amounts of lead.  Brundage admitted causing multiple tons of CRT glass and other potentially hazardous materials to be destroyed in environmentally unsafe ways and later landfilled.

“Improper management of cathode ray tubes can pose risk to human health and the environment, as they contain significant quantities of lead,” said Special Agent-in-Charge Lynn.  “This case demonstrates that EPA and our law enforcement partners are committed to protecting the environment and ensuring that companies follow the law.”

“The GSA Office of Inspector General will aggressively pursue contractors who make false representations in order to obtain federal business,” said Special Agent-in-Charge Ryan.

“This sentence should serve as a reminder that HSI will continue to work with its federal, state and local partners to pursue offenders who endanger others by engaging in fraud and deceit,” said Special Agent-in-Charge Gibbons.

CHICAGO — A real estate developer has been indicted on federal bribery charges for allegedly steering private legal work to a Chicago alderman in an effort to influence and reward the alderman in connection with a permit and tax increment financing for a Northwest Side redevelopment project.

CHARLES CUI, 48, of Lake Forest, is charged with one count of federal program bribery, one count of making a false statement to the Federal Bureau of Investigation, and two counts of using interstate commerce to facilitate bribery and official misconduct.  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; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI.  The City of Chicago Inspector General’s Office provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Amarjeet Bhachu, Diane MacArthur, Matthew Kutcher, Sarah Streicker and Timothy Chapman.

According to the indictment, Cui was the managing member of a company that owned property in the 4900 block of West Irving Park Road in the Portage Park neighborhood of Chicago.  In 2016, the Chicago City Council passed an ordinance that approved a redevelopment plan for the property and provided Cui’s company with $2 million in tax increment financing.  The City Council’s Finance Committee, which was chaired by the 14th Ward alderman, had recommended passage of the ordinance.  The property was located outside of the 14th Ward.

The following year, Cui submitted an application for a permit to use an existing sign at the property.  The sign would be used to advertise a retailer that contracted with Cui’s company to operate a store at the site.  After the Department of Planning and Development denied the application, Cui emailed the 14th Ward alderman, asking the alderman to “look into the matter,” the indictment states.  Cui’s email stated that the retailer “really needs it, otherwise they will either cancel the lease, or ask for significant rent reduction,” according to the indictment.  Cui, on behalf of his company, had previously entered into an agreement with the retailer that provided for the rent reduction if Cui’s company was unable to obtain the permit, according to the charges.  Cui estimated that the reduction would cost his company a total of $750,000, the indictment states.

The indictment states that in August 2017, Cui sent an email to a real estate attorney who had represented Cui with respect to the property.  In the email, Cui asked the attorney if the alderman, who in addition to the City Council position operated a private law firm specializing in contesting real estate tax assessments, could take over the property tax work for the property, stating, “I have TIF deal going with the City and he is the Chairman of Finance Committee.  He handled [sic] his tax appeal business card to me, and I need his favor for my tif money.  In addition, I need his help for my zoning etc for my project.  He is a powerful broker in City Hall, and I need him now.  I’ll transfer the case back to you after this year.”

Less than two weeks later, Cui signed a contingent fee agreement with the alderman’s law firm that provided for Cui to retain the firm to perform real estate tax work, the indictment states.

According to the indictment, the false statement charge pertains to Cui’s November 2018 interview with the FBI, during which Cui falsely stated that he hired the alderman’s law firm “just because he is a good tax appeal lawyer.”

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.

Federal program bribery is punishable by up to ten years in prison.  The false statement charge carries a maximum penalty of five years in prison.  Using interstate commerce to facilitate bribery and official misconduct is punishable by up to five years in prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Freeport man was sentenced Tuesday by U.S. District Judge Frederick J. Kapala on a federal drug trafficking charge.

FRANK HOWARD, 36, was sentenced to 15 years in prison, to be followed by three years of supervised release.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Leo P. Schmitz, Director of the Illinois State Police; and Todd Barkalow, Freeport Police Chief. The investigation was conducted by the Rockford Area Violent Gang Task Force, the Stateline Area Narcotics Team ("SLANT"), and the Freeport Police Department. The Rockford Area Violent Gang Task Force is led by the FBI and includes members of the Rockford, Loves Park, and Freeport Police Departments. SLANT is a task force led by the Illinois State Police. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

Howard pleaded guilty on Dec. 18, 2018, to possessing cocaine with the intent to distribute. In a written plea agreement, Howard admitted that on April 26, 2018, he drove to Chicago from Freeport and picked up cocaine from a source of supply. As Howard was driving the cocaine back to Freeport to sell to customers, he was stopped by law enforcement on Interstate 90 near Rockford. With the assistance of a K-9 unit, law enforcement officers discovered approximately 126 grams of cocaine in Howard’s vehicle.

Howard also admitted in the plea agreement that during the same time period, he sold cocaine on four occasions to an individual who, unbeknownst to Howard, was a confidential informant working with law enforcement.

CHICAGO — A federal judge in Chicago has sentenced several defendants in a bank fraud scheme to prison terms and ordered them to pay more than $14.3 million in restitution.

CHARNPAL GHUMAN, 39, of Palatine, and AGA KHAN, 39, of Bloomingdale, were business partners who “flipped” gas stations by purchasing them and re-selling to buyers whom Ghuman and Khan knew were not qualified to obtain bank financing.  The pair conspired with a loan officer inside American Enterprise Bank to submit false application documents to obtain loans from the bank guaranteed by the U.S. Small Business Administration.  An accountant participated in the scheme by furnishing AEB with false tax returns to help get more than half of the loan applicants qualified for financing.  From 2006 to 2009, Ghuman and Khan obtained more than $40 million in loan proceeds as a result of the scheme.

Ghuman and Khan pleaded guilty to bank fraud charges, as did the loan officer, AKASH BRAHMBHATT, 44, of Spring, Texas, and the accountant, SHITAL MEHTA, 53, of Elk Grove Village.

U.S. District Judge John J. Tharp, Jr., on Thursday ordered restitution to AEB of $14,343,899.  Judge Tharp had previously sentenced all four defendants to prison terms.

The sentences and restitution order were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.  The SBA and the Federal Deposit Insurance Corp. assisted in the investigation.

According to evidence in the case, Ghuman and Khan set up various corporate entities that purchased multiple gas stations in Illinois and other areas of the Midwest for immediate resale at a higher price.  Ghuman and Khan arranged for the financing on behalf of the buyers through AEB loans, which were guaranteed by the SBA if certain requirements were met, including that the borrowers provide a percentage of equity.  Ghuman and Khan worked with Brahmbhatt to falsify the loan applications, which included false statements regarding the buyers’ income, employment and experience, as well as false tax returns submitted by Mehta.  Ghuman and Khan also falsified equity payments required by the buyers.

“Ghuman and Khan walked away with millions of dollars in loan proceeds, while the borrowers defaulted, leaving the bank’s loss in the millions of dollars,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum.  “This was not a one-time lapse in judgment.  Defendants’ fraud was repeated and ongoing, over the course of years.”

Judge Tharp ordered prison terms and restitution for each of the defendants:

Ghuman: Five years and six months in prison; restitution of $11,843,899, of which $2 million is owed personally and the remainder owed jointly with Khan.  Ghuman also received a concurrent sentence of three years in prison and was ordered to pay $1,952,653 to the IRS after also pleading guilty to filing a false tax return.

Khan: Three years in prison; restitution of $10,843,899, of which $1 million is owed personally and the remainder owed jointly with Ghuman.

Brahmbhatt: Three years in prison; restitution of $10,843,899, of which $1 million is owed personally and the remainder owed jointly with Ghuman.

Mehta: One year and one day in prison; restitution of $500,000, owed personally.

CHICAGO — A federal judge has sentenced a Bolingbrook man to 19 years in prison for engaging in sex acts with an underage boy and enticing him to produce sexually explicit images of himself.

RONALD GOBENCIONG, 46, posed on social media as three separate individuals – an escort, an escort’s manager, and a client – to entice the 17-year-old boy to produce pornographic images of himself.  In February 2017, Gobenciong engaged in sex acts with the boy at a suburban hotel, after which he gave the boy money.  Gobenciong later threatened to distribute the pornographic images to the boy’s father unless the boy continued to have sex with him.  Gobenciong admitted in a plea agreement that he engaged in similar conduct with two other underage boys during the same approximate time period.

Gobenciong, also known as “David Marco,” “Steve John,” and “Joe,” pleaded guilty last year to one count of production of child pornography, and one count of sex trafficking of a minor.  U.S. District Judge Manish S. Shah imposed the 19-year sentence on Thursday in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Thomas J. Dart, Cook County Sheriff.  Valuable assistance was provided by the Bolingbrook Police Department.

As part of online and text communications with the boys, Gobenciong requested and received pornographic photos and videos of them.  Gobenciong knew the victims were under 18 years old at the time.

“Defendant cynically played on the fears and insecurities of children, as well as their desire for friendship,” Assistant U.S. Attorney Eric S. Pruitt argued in the government’s sentencing memorandum.  “The depravity and cruelty of this conduct cannot be overstated.”

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

ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of sex trafficking. 

TRAVIS THOMAS, also known as “Travis Thompson,” “Dontaveous Harper,” and “Dontavious Harper," 28, was charged with sex trafficking and transporting an individual in interstate commerce for the purposes of prostitution. 

As alleged in the indictment, Thomas coerced the victim to engage in sex acts from December 2017 to April 2018, and transported the victim from Illinois to Wisconsin and Texas in February 2018 to engage in prostitution.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The Hoffman Estates Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Monica V. Mallory.

The sex trafficking count is punishable by a statutory minimum sentence of 15 years in prison, and a maximum of life in prison.  Transporting an individual for prostitution is punishable by up to ten years in prison.  Transportation of an individual for prostitution through coercion is punishable by up to a maximum of life in prison.  If convicted, the Court must impose a reasonable sentence under federal sentencing 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 north suburban man pleaded guilty today to federal criminal charges for enticing underage girls to engage in sex acts with him.

CASEY IRELAND, 36, of Antioch, pleaded guilty to one count of enticement of a minor to engage in criminal sexual activity, and one count of attempted enticement of a minor to engage in criminal sexual activity.  Each count carries a mandatory minimum sentence of ten years in prison, and a maximum sentence of life in prison.  U.S. District Judge Rebecca R. Pallmeyer set sentencing for June 24, 2019, at 11:30 a.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Leo Lamont, Special Agent-in-Charge of the Naval Criminal Investigative Service, Resident Agency Great Lakes.  Valuable assistance was provided by the Antioch Police Department and law enforcement authorities in Wisconsin.  The government is represented by Assistant U.S. Attorney A.J. Dixon.

Ireland admitted in a plea agreement that in the spring of 2017 he had sex with two 15-year-old girls from Wisconsin.  Ireland began communicating with the girls via online messaging applications. 

On May 18, 2017, and June 1, 2017, Ireland drove to Wisconsin to pick up the first victim at her high school, and then drove her back to his home in Antioch to engage in sex acts, the plea agreement states.  On May 31, 2017, Ireland arranged to pick up the second victim at a park near her home in Wisconsin, and then drove her to his home to engage in sex acts, the plea agreement states.

After the second victim informed law enforcement about her encounter with Ireland, authorities took control of her messaging account and reestablished communication with him.  During subsequent messages, Ireland and law enforcement – posing as the victim – arranged for Ireland to pick up the victim at the same park near her home to engage in another sexual encounter.  When Ireland drove to the park on June 7, 2017, he was arrested.

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

A federal jury found the owner of a now-defunct Chicago, Illinois home health company guilty today for her role in a scheme involving over $3 million in fraudulent claims to Medicare for home health services that were procured through the payment of kickbacks.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois, Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.

After a seven-day trial, Jacqueline Tuanqui, 56, of Bartlet, Illinois, was convicted of one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, seven counts of payment for specific kickbacks and one count of visa fraud.  Sentencing has been scheduled for July 1, 2019, before U.S. District Judge Andrea R. Wood of the Northern District of Illinois, who presided over the trial.

According to evidence presented at trial, from 2008 to 2015, Tunaqui paid kickbacks in return for the referral of Medicare beneficiaries to Hexagram Home Health Care (Hexagram), a home health company that operated in the Chicago metropolitan area between 2008 and 2016.  The evidence established that Tuanqui and her co-conspirators billed Medicare $12 million, at least $3 million of which was fraudulent.  Trial evidence included the testimony of four individuals who were charged and pleaded guilty, including Hexagram’s former general manager, director of nursing and two patient recruiters.  The government’s witnesses also included four other former employees who admitted to facilitating kickback payments and forging patient files to advance the conspiracies. 

This case was investigated by the FBI and HHS-OIG with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Illionis.  The case was prosecuted by Trial Attorneys Leslie Garthwaite and Daniel Griffin of the Criminal Division’s Fraud Section. 

CHICAGO — Ten individuals are facing criminal charges as part of a federal drug and gun investigation in Chicago.

During the multi-year investigation, law enforcement seized approximately 13 pounds of suspected methamphetamines, a half-kilogram of suspected heroin, approximately 13,000 pills of suspected ecstasy, and 18 firearms.  Much of the alleged drug trafficking occurred in the East Garfield Park neighborhood on the West Side of Chicago.

Many of the defendants were arrested Thursday, and detention hearings are being held this week in U.S. District Court in Chicago.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and Eddie Johnson, Superintendent of the Chicago Police Department.  The Illinois State Police provided valuable assistance.  Assistant U.S. Attorneys Katie M. Durick, William Dunne and John Mitchell represent the government.

Indictments and criminal complaints unsealed in federal court charge ten defendants with drug or gun offenses.  GREGORY HARRIS, 32, of Dolton, is suspected of supplying ecstasy and heroin to ERIC JONES, 44, of Posen, according to the complaint against Jones.  Jones sold narcotics on three occasions earlier this year to an individual who, unbeknownst to Jones, was cooperating with law enforcement, the complaint states.  Jones was charged with distribution of a controlled substance. 

Law enforcement last week carried out a court-authorized search of Harris’s residence and discovered a loaded handgun.  Harris was previously convicted of several felonies and was not lawfully allowed to possess a firearm.  Harris was charged with one count of illegal possession of a firearm by a convicted felon.  During the search, law enforcement also discovered approximately 13 pounds of suspected methamphetamines packaged in cellophane-wrapped, heat-sealed baggies, as well as a quarter-kilogram of suspected heroin, and approximately 10,000 pills of suspected ecstasy.

Three other convicted felons were charged with illegal possession of a firearm: JHALEYL LOTT, 28, of Chicago; DARIAN TAYLOR, 32, of Melrose Park; and TYSHAWN HOLLINS, 21, of Chicago.  Taylor and Hollins are also charged with drug offenses for allegedly distributing narcotics.

Five other defendants are charged with various narcotics offenses as part of the investigation: CURTIS SHEPPARD, 21, of Chicago; MICHAEL WARD, 38, of Chicago; DIONETE DOTSON, 28, of North Riverside; KYERRE HENDERSON, 28, of Chicago; and CARL DANIELS, 23, 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.

ROCKFORD — A Chicago man was arrested Friday after being indicted on charges of bank theft.

BRANDON MOORE, 29, was indicted by a federal grand jury in Rockford on March 19, 2019.  According to the indictment, on June 28, 2018, Moore stole more than $1,000 belonging to the Heartland Bank and Trust in Sycamore.  Moore has been in custody since his arrest and was scheduled to appear at 2:00 p.m. today before U.S. Magistrate Judge Iain D. Johnston.

The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jim Winters, Chief of the Sycamore Police Department. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.

The charge of bank theft carries a maximum sentence of ten years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater, plus full restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.  

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

CHICAGO — City of Chicago Alderman WILLIE B. COCHRAN pleaded guilty today to a federal fraud charge for pocketing money from a charitable fund intended to help families and children in his South Side ward.

Cochran, 66, of Chicago, pleaded guilty to one count of wire fraud.  The conviction is punishable by up to 20 years in prison.  U.S. District Judge Jorge L. Alonso set sentencing for June 20, 2019, at 2:00 p.m.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The FBI initiated the investigation after receiving information from the former City of Chicago Legislative Inspector General’s Office, which was headed at that time by Faisal Khan.  The government is represented by Assistant U.S. Attorneys Heather McShain and Christopher Stetler.

While representing the 20th Ward in the Chicago City Council, Cochran operated the “20th Ward Activities Fund,” which he purported to use for charitable endeavors to help families and children living in the ward.  Cochran controlled a bank account connected to the fund.  When soliciting donations to the fund, Cochran falsely represented that all contributions would be used for charitable events, including a back-to-school picnic, a Valentine’s Day party for senior citizens, and events during the holiday season in November and December.

Cochran admitted in a plea agreement that he used some of the contribution money for his own personal use, including paying his daughter’s college tuition, withdrawing cash at casino ATM’s, and purchasing items for his home.  From January 2010 to April 2014, Cochran pocketed approximately $14,285 from the fund and converted the money to his own personal use, the plea agreement states.

CHICAGO — A federal judge has sentenced a Will County man to more than four years in prison for stealing his elderly mother-in-law’s identity to misappropriate more than $175,000 from her.

JOHN V. KNAPP, 66, of Romeoville, pleaded guilty last year to one count of wire fraud and one count of aggravated identity theft.  U.S. District Judge Sharon Johnson Coleman on Friday sentenced Knapp to four and a half years in prison and ordered him to pay restitution of $177,538.38.

Knapp admitted in a plea agreement that he misappropriated funds from his mother-in-law in 2014 and 2015.  At the time, his mother-in-law was in her mid-90s.  At sentencing, the mother-in-law submitted a statement to the Court detailing the impact of Knapp’s conduct, which included stealing money that the mother-in-law’s late husband had earned to take care of her.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The government was represented by Assistant U.S. Attorneys Edward G. Kohler and Rebekah Holman.

Evidence in the case revealed that Knapp on approximately 100 occasions misappropriated funds from his mother-in-law’s investment and bank accounts.  Knapp assumed her identity during four phone calls to her investment company to fraudulently authorize $129,500 in withdrawals from her investments.  During the calls, Knapp fraudulently provided his mother-in-law’s personal identifying information, which at times included her address, date of birth, telephone number, investment account number, and last four digits of her Social Security number.  As soon as the funds were deposited in his mother-in-law’s bank account, Knapp fraudulently caused checks to be made payable to him out of the account.

During one of the fraudulent phone calls, Knapp’s mother-in-law was residing in a hospital.  At the time of two other calls, she was residing at a rehabilitation center.

CHICAGO — A north suburban man was sentenced today to five years in federal prison for swindling more than $1.4 million from several clients, some of whom were elderly and had pledged their retirement savings.           

RICHARD K.  BOOY, the founder of Principal Financial Strategies LLC and Safe Financial Strategies Inc., used the promise of no-risk investments and guaranteed returns to persuade at least 15 clients to hand over more than $1.4 million.  Although Booy claimed to be affiliated with the more widely known investment firm Principal Financial Group, he had no actual relationship with the firm and was not authorized to invest client funds with it.  Instead of investing the funds as promised to clients, Booy used the victims’ money to cover personal expenses, including health insurance, fitness club membership, and purchases at Best Buy and DirecTV, and to make Ponzi-type payments to earlier investors.

Booy, 50, of Vernon Hills, pleaded guilty last year to one count of mail fraud.  U.S. District Judge Gary Feinerman imposed the 60-month sentence in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State.

“Defendant committed much of this egregious conduct while sitting in his victims’ homes and in their places of worship,” Assistant U.S. Attorney Matthew S. Ebert argued in the government’s sentencing memorandum.  “While face-to-face repeatedly with his victims, Booy brazenly made his pitch knowing that his actual purpose was to obtain and then devour his victims’ savings, pensions, and income.”

Booy carried out his fraud scheme from 2012 to 2016.  He continued his scheme even after Principal Financial Group obtained a temporary restraining order against him that led to a court-authorized seizure of his computer and other evidence from Booy’s home.

Most of Booy’s victims were elderly, and some furnished him with their entire life savings.  The victims included a Chicago pastor, a retired painter, a retired government worker, and an individual who suffers from Parkinson’s Disease.

CHICAGO — The owner of a debt collection company spent tens of thousands of dollars in an effort to corruptly influence and obtain business from court clerks in Florida and Illinois, including the Cook County Circuit Court Clerk, according to a federal indictment returned in Chicago.

DONALD DONAGHER, JR., 67, of Mechanicsburg, Pa., and Palm Beach Gardens, Fla., was the owner and Chief Executive Officer of Harrisburg, Pa.-based PENN CREDIT CORPORATION.  From 2009 to 2016, Donagher and Penn Credit provided money and services to benefit the court clerks and related individuals and entities, corruptly seeking favorable treatment in the awarding of the courts’ debt collection work, the indictment states.  The efforts included payments to certain clerks’ campaign committees, donations to charities supported by certain clerks, financial sponsorship of events hosted by certain clerks, and free or discounted “robocalls” made by Penn Credit on behalf of certain clerks’ campaigns, according to the indictment.  

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges Donagher and Penn Credit with one count of conspiracy to commit federal program bribery, and five counts of federal program bribery.  Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Patrick M. Blanchard, Cook County Inspector General.  The government is represented by Assistant U.S. Attorneys Heather K. McShain and Ankur Srivastava.

According to the charges, Donagher in June 2011 caused Penn Credit to pay $5,000 to a scholarship fund named for the Cook County Circuit Court Clerk.  Later that summer, Penn Credit began collecting debt for the Clerk’s Office, the indictment states.  On Aug. 19, 2011 – less than three weeks after Penn Credit began its work for Cook County – Donagher sent an email to Penn Credit employees and an Illinois lobbyist, advising that Donagher had promised the Cook County Clerk “10k of ‘early’ money,” the indictment states.  The following month, Donagher caused a $10,000 contribution to be made in his name “towards the fundraising efforts of Contributions to Friends of [the Cook County Circuit Court Clerk],” the indictment states.  The indictment further states that, several months later, Penn Credit made hundreds of thousands of phone calls on behalf of the Cook County Circuit Court Clerk without invoicing or receiving payment from the Clerk’s campaign. 

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

The conspiracy charge is punishable by up to five years in prison, while the maximum sentence for federal program bribery is ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The creator of a fraudulent Chicago-area pharmacy has been sentenced to 60 months in federal prison for his role in a $1.6 million health care fraud scheme.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Jeffrey S. Sallet of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.

James Calhoun, 74, of Des Plaines, Illinois, was sentenced by U.S. District Judge John Z. Lee of the Northern District of Illinois.  Judge Lee also ordered Calhoun to pay $1.6 million in restitution.  Calhoun pleaded guilty in September 2018 to one count of conspiracy to commit health care fraud. 

As part of his guilty plea, Calhoun admitted that he defrauded Medicare Part D of $1.6 million through an elaborate scheme in which he created a fictitious pharmacy on paper called “Cal’s Pharmacy” and used it to process hundreds of prescription claims for drugs that were never dispensed.  For most of its existence, the pharmacy had no physical location or inventory, he admitted.  Calhoun further admitted that he enrolled himself as a beneficiary in a Part D program and, from around January 2012 continuing through at least May 2015, Calhoun went to doctors’ appointments to try to obtain prescriptions for drugs that he would then pretend to fill at Cal’s Pharmacy, including and most often for the drug Arixtra, an expensive daily injection.  Calhoun also admitted that acting as Cal’s Pharmacy’s owner, a fact that was concealed through the use of a straw owner, Calhoun collected all of the Part D reimbursement payments made to Cal’s Pharmacy.  In addition to pretending to fill prescriptions for himself, Calhoun admitted that he fabricated prescription claims for three other people, including his codefendant and wife, Betty Calhoun.  Calhoun also admitted that later on in the scheme, when Medicare started to deny the prescription claims, Calhoun appealed the denial and knowingly created and submitted to Medicare false and fabricated checks as part of his appeal, including to an administrative law judge, claiming they showed his payment for Arixtra prescriptions from Cal’s Pharmacy.   

The total loss to Medicare was $1.6 million, Calhoun admitted.

Betty Calhoun pleaded guilty to one count of health care false statements in November 2018 and was sentenced to probation. 

This case was investigated by the FBI and HHS-OIG.  Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section prosecuted the case. 

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.   In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

CHICAGO — A federal jury has convicted a former Chicago Police Department sergeant of participating in a robbery and extortion crew that targeted suspected drug dealers.

The jury in U.S. District Court in Chicago on Monday convicted EDDIE C. HICKS, also known as “David Rose,” 70, on all eight counts against him, including conspiracy to commit racketeering; drug conspiracy; possession of a controlled substance with intent to distribute; carrying a firearm in furtherance of a drug trafficking offense and crime of violence; theft of government funds; and failure to appear for a judicial proceeding.  The conviction is punishable by up to life in prison.  U.S. District Judge Joan Humphrey Lefkow did not immediately schedule sentencing.  A status hearing is set for April 10, 2019.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Valuable assistance was provided by the U.S. Attorney’s Office in the Eastern District of Michigan, U.S. Marshals Service, Detroit, Mich., Police Department, Chicago Police Department, Cook County Sheriff’s Police Department, Bolingbrook Police Department, and Alsip Police Department.

The government is represented by Assistant U.S. Attorneys Morris Pasqual and Grayson Walker.

Hicks served as a Chicago Police officer from 1970 to 2000, ultimately attaining the rank of sergeant.  In the 1990s, he was assigned to CPD’s Narcotics Section.  Evidence at trial revealed that for nearly a decade Hicks and three other law enforcement personnel participated in a robbery ring that targeted suspected drug dealers under the guise of legitimate police investigations.  The four-person crew staged phony drug raids and automobile stops of suspected dealers, threatened them with arrest, then kept the drugs, cash or weapons they discovered.  From the early 1990s to 2001, the scheme netted the crew thousands of dollars in cash, multi-kilogram quantities of cocaine, hundreds of pounds of marijuana, and several firearms.

The three other crew members were previously convicted: LARRY HARGROVE, a former Chicago Police sergeant, was sentenced to 13 years in prison; MATTHEW L. MORAN, a former investigator for the State of Illinois Department of Professional Regulation, was sentenced to seven years and ten months in prison; and LAWRENCE W. KNITTER, a former CPD electrical mechanic, was sentenced to nine years and four months in prison.

The failure-to-appear charge against Hicks stemmed from his flight on the eve of trial when it was originally scheduled in June 2003.  Hicks was free on bond when he failed to appear in court.  He remained a fugitive until his arrest in Detroit, Mich., in September 2017.

CHICAGO — Thirty-five individuals are facing criminal charges as part of a joint federal and state investigation into heroin and fentanyl trafficking in Chicago.

During the multi-year investigation, dubbed “Operation Road Rage,” law enforcement seized a kilogram of heroin, most of which contained fentanyl, approximately $100,000 in cash, five firearms, and four vehicles.  Much of the alleged drug trafficking occurred in the West Garfield Park neighborhood on the West Side of Chicago.  Many of the defendants allegedly distributed heroin and fentanyl-laced heroin to customers in the Chicago area, with drivers dispatched to make deliveries after customers placed orders on a telephone hotline.

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 partner with federal, state and local law enforcement agencies to identify, disrupt and dismantle the most serious drug trafficking organizations.

Criminal complaints unsealed in U.S. District Court in Chicago charge 22 defendants with federal drug offenses.  Many of the federal defendants were arrested Thursday, and detention hearings will be held this week in federal court in Chicago.  Thirteen other defendants were charged in state complaints, and many of them were also arrested Thursday.  The state defendants have begun making initial appearances in Cook County Criminal Court.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Nicholas Roti, Director of HIDTA; and Eddie Johnson, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the U.S. Marshals Service.  Assistant U.S. Attorneys Misty Wright and Shy Jackson represent the government.

Fourteen federal defendants are charged in U.S.A. v. Robinson, et al (19 CR 201).  The complaint describes a drug trafficking organization in which heroin hotline operators and dispatchers often referred to themselves as “Sean.”  Customers intending to purchase heroin and fentanyl-laced heroin called a designated telephone number operated by members of the “Sean” drug trafficking operation, the complaint states.  The dispatchers then sent the organization’s many distributors to various West Side locations to conduct the drug deals, the complaint states.  Undercover law enforcement officers disrupted the Sean organization by conducting approximately 50 narcotics purchases after calling the Sean phones and meeting with the distributors, according to the complaint.  Charged with drug conspiracy are four individuals who, at various times, were responsible for dispatching the distributors: THOMAS CLEVELAND, 27, of Chicago, FREDERICK GILES, 26, of Chicago, AMELIA SMITH, 30, of Country Club Hills, and MICHAEL ROBINSON, 24, of Country Club Hills; as well as ten alleged distributors: WILLIE BLAIR, 32, of Chicago, LAWRENCE CLARK, 26, of Chicago, CARDELL COLEMAN, 21, of Chicago, JOLISA GAINES, 29, of Chicago, D’ANGELO GILES, 21, of Chicago, TYRELL KELLY, 27 of Chicago, KEITH MANNING, 27, of Bellwood, DEVONTE SMITH, 26, of Chicago, KAJUAN SMITH, 30, of Chicago, and DESMOND WHITE, 25, of Chicago.

Two federal defendants are charged in U.S.A. v. Chose, et al (19 CR 202).  Charged with drug conspiracy are ANNA T. CHOSE, 54, of Morris, and ROXANNE E. CONN, 56, of Wilmington.  The charges accuse the pair of being regular customers of the Sean drug trafficking organization.  The complaint describes three instances in the summer of 2018 when Chose and Conn purchased distribution quantities of narcotics from Robinson, and alleges that they regularly purchased narcotics from the Sean drug trafficking organization.

Clark and three other federal defendants are charged in U.S.A. v. Pitts, et al (19 CR 204).  Charged with drug conspiracy and distribution offenses are MICHAEL PITTS, 33, of Bellwood, TEVIN FORD, 27, of Chicago, and JHAMAAL HANEY, 26, of Chicago.  According to the complaint, the four defendants conspired to distribute approximately 94.8 grams of fentanyl-laced heroin to an undercover law enforcement officer from August 2017 to March 2018.  The charges also hold Pitts personally responsible for distributing a total of approximately 386.5 grams of heroin and fentanyl-laced heroin to undercover officers from August 2017 to May 2018.  One of Pitts’ customers suffered a drug overdose in May 2018 after Pitts distributed 1.13 grams of fentanyl-laced heroin to him, the complaint states.  The man appeared to be unconscious when Pitts pulled him out of a vehicle and left him at a nearby bus stop, the complaint states.  Chicago Fire Department personnel arrived on the scene and worked to successfully revive the man, the complaint states.

Three other federal defendants are charged with narcotics offenses as part of the investigation: JUSTIN BANASIAK, 35, of Chicago; JACLYN ROWLEY, 31, of Michigan City, Ind.; and MATTHEW ROSOLIK, 32, of Trail Creek, Ind.

The charges in the complaints carry maximum penalties of between 20 years and life imprisonment.  If convicted, the Court must impose reasonable sentences under federal sentencing 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.

CHICAGO — Former Illinois attorney EDWARD R. VRDOLYAK pleaded guilty today to federal tax evasion for assisting another lawyer in evading taxes on income received from a multi-billion dollar legal settlement with tobacco companies.

Vrdolyak, 81, of Chicago, pleaded guilty to one count of tax evasion.  The charge is punishable by up to five years in prison.  U.S. District Judge Robert M. Dow, Jr., set sentencing for July 23, 2019.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorney Amarjeet S. Bhachu and Special Assistant U.S. Attorney Michael T. Donovan.

Vrdolyak admitted in a plea agreement that he assisted another lawyer, co-defendant DANIEL P. SOSO, in evading federal income taxes owed by Soso for the calendar years 1993 through 2004, and 2008 through 2013.  The income was derived from attorney fees received in connection with a $9.2 billion settlement between the State of Illinois and a number of tobacco companies in the 1990s.  At the time of the settlement, Vrdolyak and Soso were licensed Illinois attorneys.  The pair collected legal fees from the settlement pursuant to agreements with one of the attorneys that represented the State of Illinois.  Pursuant to these agreements, Vrdolyak made payments to Soso between 2000 and 2005 of approximately $1,925,830, representing Soso’s agreed-upon share of the fees of the tobacco litigation.

In August 2005, the IRS served a notice of levy on The Law Offices of Edward R. Vrdolyak, which required the turnover of all salary, wages and other amounts owed to Soso.  Over the next two years, Vrdolyak received approximately $262,854 due Soso, but he concealed receipt of these funds from the IRS, knowing such concealment would assist Soso in evading the payment of taxes and assessments due the IRS, the plea agreement states.  Vrdolyak later caused approximately $170,242 to be paid to Soso instead of remitting these funds to the IRS.

Soso, 67, of Alsip, pleaded guilty last month to one count of tax evasion.  Judge Dow set Soso’s sentencing for June 25, 2019.

ROCKFORD — LEILANI HILLIS, 60, of Rockford, the former director of operations of a Rockford non-profit organization, pleaded guilty Monday before U.S. District Judge Frederick J. Kapala to one count of mail fraud and one count of tax fraud.

According to a written plea agreement, since 2001 Hillis was an employee of a non-profit organization whose mission was to attract, retain and expand jobs in the Rockford area.  The organization received funding from private sources and local governments. During her employment, Hillis handled the organization’s payroll, human resource matters and accounting, and oversaw the annual audit.  As of 2009, Hillis had signatory authority on the organization’s bank account and access to the organization’s PayPal account.  The organization issued employees, including Hillis, a credit card in the employee’s name.  From 2009 through April 2018, Hillis used her employee-issued credit card to make unauthorized purchases for her personal benefit totaling $632,718.99.  Hillis concealed her crime by using the organization’s accounting codes to make it appear the purchases were for the organization’s benefit, and she forged the initials of the organization’s president on the expense reports.  Hillis issued and signed checks from the organization’s account to the bank, knowing the payments included money to pay for her unauthorized purchases.

Hillis also admitted that she did not report as income the money from the organization that she used to pay the organization’s credit card for her unauthorized personal purchases.  As a result, for the tax years 2014 through 2017, Hillis failed to pay $151,186.91 in federal income taxes.

HILLIS faces a maximum sentence of 20 years’ imprisonment for mail fraud, and a maximum sentence of three years for tax fraud, while each charge also carries a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater, plus full restitution. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  Sentencing for Hillis is set for June 27, 2019, at 9:00 a.m., before U.S. District Judge Philip G. Reinhard. 

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

CHICAGO — Six defendants have been charged as part of an ongoing federal investigation into corruption schemes allegedly carried out by city of Harvey officials or their associates.  Among the defendants are two cousins with high-ranking relatives in Harvey government who allegedly extorted cash from a strip club owner, and two Harvey police officers who allegedly falsified a police report to protect acquaintances from facing firearm charges.  Federal law enforcement today executed court-authorized search warrants at two locations in Harvey.

Several of the defendants were arrested today and are scheduled to make initial court appearances today at 2:00 p.m. before U.S. Magistrate Judge Maria Valdez in Chicago.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; and Thomas J. Dart, Cook County Sheriff.  The Harvey Police Department is cooperating in the investigation.  The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau, Grayson S. Walker and Brian P. Netols.

Criminal complaints unsealed today in federal court in Chicago allege three separate corruption schemes:

U.S. v. Kellogg, et al, 19 CR 192

ROMMELL KELLOGG, 66, of Harvey, and COREY JOHNSON, 63, of Harvey, are charged with conspiracy to commit extortion.  Kellogg and Johnson are cousins with high-ranking relatives in Harvey government, the complaint states.  From 2012 to 2016, Kellogg and Johnson conspired to regularly extort payments from a Harvey strip club owner based on threats that the city would shut down the business if the payments were not made, the complaint states.  The charges allege that in exchange for the payments, city officials allowed the business to operate, knowing that acts of prostitution were occurring onsite.

U.S. v. Muhammad, et al, 19 CR 190

DERRICK MUHAMMAD, 70, of South Holland, and DERRICK MOORE, 48, of Blue Island, are charged with obstruction of justice and conspiracy to obstruct justice.  Muhammad and Moore are Harvey Police Department officers who allegedly worked together to falsify a police report to protect two acquaintances from possibly facing firearm charges.  The acquaintances – a father and son – were convicted felons who could not legally possess a firearm, the complaint states. 

In March 2018, the operator of a Harvey-based towing company notified Muhammad that a handgun was discovered in a Chrysler 300 sedan that had been reported stolen and ordered towed by police in nearby Calumet City, the complaint states.  The sedan was used by the father and had recently been driven by the son.  Muhammad and Moore schemed to conceal the firearm’s connection to the pair, with Moore preparing and filing a police report stating that he discovered the weapon in some brush near the towing company “while on patrol,” the charges allege.

U.S. v. Luster, et al, 19 CR 191

DONALD LUSTER, 55, of Dixmoor, and WILL WILEY, 56, of Harvey, are charged with conspiracy to commit federal program bribery.  Luster worked as a private consultant to the city of Harvey.  In November 2017, he agreed with Wiley to solicit bribe payments from an entrepreneur who owned a towing company in a nearby suburb, the complaint states.  In exchange for the bribes, Luster would provide the entrepreneur with a lease to a parcel of land owned by the city of Harvey, the complaint states.

Unbeknownst to Luster and Wiley, the entrepreneur was cooperating with law enforcement and had agreed to make consensual recordings of conversations and meetings with the pair, the complaint states.  In a recorded meeting on Dec. 3, 2017, the entrepreneur paid a cash bribe of $5,000 to Wiley, the complaint states.  Shortly thereafter, an employee of the city of Harvey provided the entrepreneur access to the parcel of land.  On Jan. 5, 2018, the entrepreneur delivered a $7,000 cash bribe to Luster, after which Luster and the city employee advised that the entrepreneur could continue to access and use the parcel, the complaint states.  An official lease was never provided to the entrepreneur, the complaint states.

~~~

The public is reminded that charges 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.  The conspiracy counts are each punishable by up to five years in prison, while the obstruction charge is punishable by up to 20 years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

Anyone wishing to notify law enforcement of suspected corruption in Harvey is encouraged to email the FBI at harvey.info@fbi.gov.

CHICAGO — A federal jury today convicted a Chicago man on sex trafficking charges for arranging a commercial sex encounter for a 16-year-old girl that ended in the child’s murder in a south suburban garage.

JOSEPH HAZLEY, 35, was convicted on one count of conspiracy to engage in sex trafficking of a minor, one count of sex trafficking of a minor, and four counts of transporting a person across state lines for the purposes of prostitution.

The conviction is punishable by a maximum sentence of life in prison.  U.S. District Judge Sharon Johnson Coleman set sentencing for June 4, 2019.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Chicago Police Superintendent.  Substantial assistance was provided by the South Suburban Major Crimes Task Force, Cook County Sheriff’s Office, Cook County State’s Attorney’s Office, and Markham Police Department.  The government is represented by Assistant U.S. Attorneys Christopher Parente and Kelly Greening.

Evidence at trial revealed that Hazley posted the girl’s information in commercial sex advertisements on Backpage.com, and arranged multiple meetings for her to engage in prostitution.  Hazley drove the girl to several meetings in the Chicago area in December 2016. 

One of the meetings occurred in the early morning hours of Christmas Eve, after a customer had responded to Hazley’s posting.  Hazley drove the girl to Markham and waited in his car a few yards from the garage while she met with the customer.  During the encounter, the customer allegedly murdered the girl.

The suspected customer was subsequently arrested by the Chicago Police Department and charged with murder in Cook County Criminal Court.

If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678.  The hotline is available 24 hours a day, 7 days a week.

ROCKFORD — ALVIN J. MALONE, 31, of Rockford, was indicted today by a federal grand jury in Rockford for illegally possessing firearms as a convicted felon. 

The indictment alleges that on Feb. 19, 2019, Malone illegally possessed a loaded 12-gauge shotgun, a .22-caliber rifle, and a loaded .45 semi-automatic pistol.

Malone has been in custody since his arrest on Feb. 19, 2019.  He will appear for arraignment on March 6, 2019, at 11:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.

The indicted was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.  The Rockford Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.

The charge of illegally possessing a firearm carries a maximum sentence of ten years in prison, to be followed by up to three years of supervised release, and a fine of up to $250,000.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The public is reminded that an indictment is only a charge 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.

ROCKFORD — A Poplar Grove man was sentenced today by U.S. District Judge Frederick J. Kapala for theft of government funds. 

JONATHAN GORZELA, 56, was sentenced to 21 months in federal prison, to be followed by three years of supervised release. Gorzela, who pleaded guilty to the charge on Oct. 12, 2018, was also ordered to pay restitution in the amount of $160,858.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Tracey Thanos, Special Agent-in-Charge of the Social Security Administration’s Office of Inspector General in Chicago. The Illinois Department of Rehabilitative Services assisted in the investigation. The government was represented by Assistant U.S. Attorney Margaret J. Schneider.

According to a written plea agreement, between April 1991 and December 2015, Gorzela received disability benefits from funds administered by the Social Security Administration that he was not entitled to receive.  Gorzela began receiving Social Security Income disability benefits in July 1984 after he sustained a gunshot wound to his back that left him a paraplegic.  Gorzela was required to immediately report to the SSA any changes in income, family size or composition, family income, benefits from other sources, improvement in medical condition, or return to work.  In multiple documents submitted to the SSA, Gorzela acknowledged he understood his responsibility to report any such changes to the SSA.  Gorzela married in April 1991 and from that date through October 2015 did not disclose his marriage, nor the fact that his spouse was employed throughout the time of the marriage, or his spouse’s income. 

In February 1998, Gorzela used false documentation to obtain a second Social Security number under another name.  From 2000 through 2014 Gorzela obtained various jobs using the second social security number and the other name.  None of the income obtained from that employment was reported to the SSA.  As a result of Gorzela’s failure to report his marriage, his wife’s income, and the income he earned using his second identity to the SSA, Gorzela was overpaid approximately $160,858 in SSI disability benefits.

Gorzela also used his second identity to falsely obtain payment from the Illinois Dept. of Rehabilitative Services for the use of a paid personal assistant for which he qualified due to his injury.  Between April 2006 and June 2008, Gorzela billed the IDRS approximately $28,566 for services purportedly provided to him under his alias identity.  In addition, Gorzela billed the IDRS for services purportedly provided to the defendant by his son during the time periods that his son was incarcerated and during periods that Gorzela was working full time.  Those billings resulted in the IDRS paying the defendant’s son approximately $21,382 for services that were not performed.  In total, Gorzela caused the IDRS to overpay $49,948 for services that were not performed.

CHICAGO — A federal jury has convicted a 30-year employee of a McHenry County manufacturing firm of stealing trade secret information while planning to move to China to work for a rival company.

The jury in U.S. District Court in Chicago on Monday convicted ROBERT O’ROURKE, 59, of Lake Geneva, Wisc., on seven counts of theft of trade secrets.  Each count is punishable by up to ten years in prison.  U.S. District Judge Andrea R. Wood set sentencing for June 3, 2019.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorneys Shoba Pillay and Christopher V. Parente.

According to evidence at trial, O’Rourke since 1984 worked for Dura-Bar, a Woodstock-based manufacturer of continuous cast-iron products.  O’Rourke held the positions of plant metallurgist, quality assurance manager and salesperson, and helped the company develop business in China and other locations.  In late 2013, he began several months of negotiations to take a similar job with a rival firm in Jiangsu, China, eventually accepting the position of Vice President.

Evidence at trial revealed that in September 2015, while still employed with Dura-Bar, O’Rourke accepted the job offer in China.  He then downloaded electronic data and documents belonging to Dura-Bar without authorization two days before officially leaving the company.  The following week, he packed up the proprietary information and went to O’Hare International Airport in Chicago to board a flight to China.  Federal authorities intervened at the airport and seized the stolen trade secrets from O’Rourke before he could travel to China.

CHICAGO — A federal jury today convicted a Chicago investment manager on fraud charges for swindling more than $10 million from clients and lenders.

SHAWN BALDWIN, who owned and controlled various investment firms in Chicago, exaggerated his financial success and professional connections to fraudulently obtain more than $10 million from at least 15 investors and lenders.  Baldwin falsely claimed that their funds would be invested in stocks and other investment products, when in reality he spent the money for his own personal benefit.  Baldwin’s fraud scheme began in 2006 and continued until 2017.

The jury in U.S. District Court in Chicago convicted Baldwin, 53, of Olympia Fields, on seven counts of wire fraud.  U.S. District Judge John Robert Blakey set sentencing for July 9, 2019.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorneys Matthew Getter, Heidi Manschreck and Michelle Petersen.

According to evidence presented at trial, Baldwin obtained funds from individual investors, as well as from corporate lenders who lent him money for use in business and personal dealings.  Baldwin claimed that compliance officers and professional advisors were affiliated with his firms, when no such relationships actually existed. 

Baldwin also deceived investors and lenders by misrepresenting and minimizing the serious disciplinary actions taken against him by regulators.  The regulatory actions included the revocation of his certifications with the Financial Industry Regulatory Authority in 2009, and a permanent prohibition from offering securities sales or investment advice, which the State of Illinois imposed in 2013.

Evidence at trial further revealed that Baldwin attempted to conceal the fraud scheme by furnishing victims with bogus account statements that misrepresented the value of their funds.  He also lulled his victims by falsely maintaining that he was developing lucrative business deals and new contacts that would lead to profits from initial public stock offerings.  In reality, Baldwin could not pay back investors because he had lost or spent their money.

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

ROCKFORD — A Rockford man pleaded guilty in federal court today before U.S. District Judge Frederick J. Kapala to illegally possessing a firearm and ammunition as a convicted felon.

AUSTIN A. RICHARDSON, 25, admitted that on Sept. 20, 2017, he possessed a Taurus 9mm pistol and approximately 50 rounds of ammunition at a shooting range after having been previously convicted of a felony.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government is represented by Assistant U.S. Attorney Talia Bucci.

As stated in the plea agreement, Richardson and another individual took the Taurus 9mm pistol to a firearms retailer and shooting range in Loves Park, and Richardson shot the pistol numerous times at the shooting range.  Richardson and the other individual also bought approximately 50 rounds of ammunition from the firearms retailer, with Richardson providing the money for the purchase.

Richardson faces a maximum sentence of ten years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000.  The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  Sentencing is scheduled for June 20, 2019, at 2:00 p.m.

ROCKFORD — A Rockford man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to one count of attempted robbery and one count of using, carrying, and brandishing a firearm during a crime of violence. 

DARNELL LEAVY, 28, admitted in a written plea agreement that at approximately 7:00 p.m. on Nov. 5, 2015, he and others attempted to rob the Zake Convenience store, 824 Seventh St. in Rockford.  As stated in Leavy's plea agreement, co-defendant RICKEY CLAYBRON, 33, of Rockford, entered the store first with his gun pointed at two clerks who were behind a glass enclosure.  Leavy entered second and also began pointing his gun at the clerks, according to Leavy's plea agreement.  A third individual then entered the store carrying a bag meant for the proceeds of the robbery, Leavy's plea agreement states.  The employees of the store barricaded themselves in the glassed-in area where the registers were located.  Leavy's plea agreement further states that Leavy tried to kick the door open, but was unsuccessful.  In the meantime, according to Leavy's plea agreement, Claybron came around the front of the glass enclosure and pointed his gun through the small hole in the front that is used to conduct business with customers.  Eventually, Leavy and the other robbers gave up on the robbery and walked out of the store, Leavy's plea agreement states.

Leavy's guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes law enforcement officers and agents from the FBI, Rockford Police Department, Loves Park Police Department and Freeport Police Department. The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

For the attempted robbery, Leavy faces a maximum sentence of 20 years’ imprisonment, to be followed by a term of supervised release of up to three years following imprisonment.  For the firearm charge, Leavy faces a statutory mandatory minimum sentence of seven years and a maximum sentence of life, to be consecutive to any other sentence imposed, as well as a  term of supervised release of up to five years following imprisonment.  Both charges also carry a fine of up to $250,000 apiece.  The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  Sentencing for Leavy is set for June 4, 2019, at 11:00 a.m.

Claybron is charged with one count of conspiracy to commit robbery, three counts of robbery, one count of attempted robbery, and four counts of using, carrying, and brandishing a firearm during a crime of violence.  Claybron has pleaded not guilty and is in custody while awaiting trial.

Also charged in the case is DEANDRE R. HAYWOOD, also known as “Duke,” 28, of Rockford. Haywood is charged with one count of conspiracy to commit robbery, three counts of robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence. Haywood has pleaded not guilty and is in custody while awaiting trial. 

The public is reminded that an indictment contains only charges and 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.

ROCKFORD — A husband and wife from Crystal Lake have pleaded guilty in federal court to multiple bank robberies in Northern Illinois. 

DANIEL R. PLUSHKIS, 27, pleaded guilty today to three counts of bank robbery, and he admitted as part of a plea agreement that he committed two other bank robberies. His wife, JESSICA E. PLUSHKIS, 29, pleaded guilty on Feb. 11, 2019, to two counts of aiding and abetting a bank robbery.

The guilty pleas were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The Cary, Huntley, Arlington Heights, Streamwood, Algonquin, and Crystal Lake Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.

As stated in Daniel Plushkis’s written plea agreement, on Dec. 1, 2017, Daniel Plushkis robbed the Chase Bank, 300 Northwest Hwy. in Cary.  Daniel Plushkis entered the bank wearing a long fake beard, a hooded black jacket, a camouflage hat, and sunglasses.  He handed a teller an envelope with a note on it stating that he had a gun, and he began counting down from 30.  The teller put $5,870 from the bank’s cash drawer into the envelope, and Daniel Plushkis fled from the bank with the cash.

Daniel also admitted that he robbed the TCF Bank, 13200 Village Green Dr. in Huntley, on Dec. 10, 2017, and the TCF Bank, 1860 S. Arlington Heights Rd., in Arlington Heights, on Dec. 13, 2017.  In those robberies, Daniel Plushkis wore a disguise including a long fake beard and sunglasses, handed the teller an envelope with a note taped to it, and began a countdown.  Daniel Plushkis stole $237 during the Dec. 10, 2017, robbery in Huntley, and $2,676 during the Dec. 13, 2017, robbery in Arlington Heights. As part of Daniel Plushkis’s written plea agreement, he also admitted that he robbed the TCF Bank, 217 E. Irving Park Rd. in Streamwood, on Dec. 20, 2017.  Daniel Plushkis wore a disguise including a long fake beard, sunglasses, and a hooded black jacket.  He handed the teller an envelope with a note taped to it and verbally demanded that the teller give him the money that the teller was in the process of counting.  The teller handed over $500, and Daniel Plushkis fled from the bank with the cash.

As part of Jessica Plushkis’s written plea agreement, she admitted that she aided and abetted her husband in committing the Dec. 13, 2017, bank robbery in Arlington Heights.  Jessica Plushkis admitted that she purchased a fake beard, black-colored hair spray, and black face paint for Daniel Plushkis a few hours before the Dec. 13, 2017, robbery, knowing that Daniel Plushkis intended to use those items as part of his disguise for the robbery.

As part of both plea agreements, the couple also admitted that Daniel Plushkis robbed the TCF Bank, 103 S. Randall Rd. in Algonquin, on Dec. 23, 2017, and that Jessica aided and abetted him in committing that robbery.  After Daniel Plushkis handed the teller a note stating that he had a gun, the teller put $4,350 from the bank drawer into an envelope. Daniel Plushkis fled the premises with the envelope and cash.  Daniel Plushkis headed toward the vehicle where his wife was waiting for him, but he was apprehended by a private citizen in the parking lot before making it back to the vehicle.  Jessica Plushkis admitted that, after her husband was apprehended, she quickly drove out of the parking lot to avoid being apprehended by law enforcement, but was quickly pulled over by a law enforcement officer as she exited the parking lot.  Law enforcement officers at the scene recovered the money Daniel Plushkis stole from the bank.

Each of the counts to which Daniel Plushkis and Jessica Plushkis pleaded guilty carries a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000.  Each defendant’s sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  U.S. District Judge Frederick J. Kapala set sentencing for Jessica Plushkis on May 28, 2019, at 2:30 p.m., and for Daniel Plushkis on June 25, 2019, at 2:00 p.m.

CHICAGO — A convicted felon was charged today with federal firearm violations for allegedly illegally possessing a machine gun, silencers and ammunition in his Lake County home.

GREGORY DOMENICO, 35, of Wauconda, is charged with one count of illegal possession of ammunition by a convicted felon, and one count of illegal possession of an unregistered machine gun and three silencers.  Domenico possessed the machine gun, silencers and five rifle cartridges at his residence in December 2018 and January 2019, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago.  Domenico was arrested Thursday, and law enforcement carried out a court-authorized search of his residence. 

Domenico made an initial court appearance today before U.S. Magistrate Judge Sheila Finnegan in Chicago and was ordered to remain in federal custody.  A detention hearing was scheduled for Feb. 27, 2019, at 10:30 a.m.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; John Idleburg, Lake County Sheriff; and David Wermes, Chief of the Wauconda Police Department.  The case was investigated by the Lake County Gang Crimes Task Force.  The government is represented by Assistant U.S. Attorney Tiffany Ardam.

According to the complaint, an undercover law enforcement officer made several purchases of unregistered firearm parts from Domenico.  The sales occurred at Domenico’s residence, the complaint states.

According to the complaint, Domenico sold the undercover officer two silencers on Dec. 13, 2018; a silencer and an auto-sear, which is designed to convert a semi-automatic pistol into a machine gun, on Dec. 18, 2018; and five rifle cartridges on Jan. 22, 2019.  Domenico was previously convicted of a felony and could not lawfully possess a firearm, firearm parts, or ammunition.  Domenico has never held a federal firearms license nor has he registered the possession and transfer of any items with the National Firearm Registration and Transfer Record, the complaint states.

ROCKFORD — A Calumet City man pleaded guilty to firearms charges today before U.S. District Judge Frederick J. Kapala in Rockford. 

BRUCE WALKER, 24, pleaded guilty to one count of conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, and one count of possessing a stolen firearm. 

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.  The Manteno, Tinley Park, Chicago, and Loves Park Police Departments assisted in the investigation. The government is represented by Assistant U.S. Attorney Talia Bucci.

According to the written plea agreement, in the early hours of April 18, 2017, Walker and two other individuals obtained a stolen vehicle from Cook County and drove it to a federally-licensed firearms dealer in Manteno.  The three individuals then used a hammer to shatter one of the dealer's glass exterior doors and entered the premises.  After entering, they attempted to break into a firearms safe inside the office, but were not successful.  On the way out, one of the individuals stole a rifle and a 30-round magazine hidden inside an office.  Walker and the other two individuals also stole boxes of firearm ammunition before fleeing the premises, and returned to Cook County with the rifle, 30-round magazine, and ammunition.  About three hours later, the three individuals used the same stolen vehicle to drive to a federally-licensed firearms dealer in Tinley Park, where Walker and another individual attempted to shatter the front glass door and a front window.  When they were unable to gain entry to the business, they fled to the stolen vehicle where their getaway driver was waiting.

Walker faces a maximum sentence of five years’ imprisonment on the conspiracy charge, and a maximum of ten years’ imprisonment for possessing a stolen firearm.  In addition, Walker faces a period of supervised release of up to three years following imprisonment, and a fine of up to $250,000 on each charge.   The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.  Sentencing is set for May 30, 2019, at 10:00 a.m. 

KELVIN CULPS, also known as “Forty,” 22, of Dolton, was also indicted in the case and charged with conspiracy to commit an offense against the United States by stealing a firearm from a licensed firearms dealer, possessing a stolen firearm, and illegally possessing a firearm as a convicted felon. Culps is currently in custody pending trial.  The public is reminded that an indictment contains only charges and is not evidence of guilt.  Culps 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 federal jury in Chicago has convicted the self-appointed bishop of a Pennsylvania ministry of forcing church members to work certain jobs, pocketing their earnings, and directing them to defraud various hotels.

TRACIE DICKEY, also known as “Tracie Williams,” 55, of Pittsburgh, Pa., was found guilty Friday on one count of wire fraud and one count of labor trafficking.  Each count is punishable by up to 20 years in prison.  U.S. District Judge Sara L. Ellis set sentencing for Aug. 7, 2019, in federal court in Chicago.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Valuable assistance was provided by U.S. Attorney’s Offices in the Northern District of Texas and Middle District of Florida, and the FBI’s Pittsburgh, Pa., field office.  The government is represented by Assistant U.S. Attorneys Maureen E. Merin and Eric S. Pruitt.

Dickey was a self-appointed bishop of Deliverance Tabernacle Ministries, an organization she founded that proclaimed to offer faith-based services in locations such as Pennsylvania, North Carolina, and Florida.  She also purported to operate a travel agency known as World Ambassador Travel. 

Evidence at trial revealed that Dickey recruited young women to become members of the ministry, and directed them to work multiple jobs, including as desk clerks at hotels.  She instructed the members on how to have the hotels pay reservation-commission fees to Dickey’s travel agency, via a bank account controlled by Dickey.  In reality, the travel agency never actually booked hotel reservations on behalf of guests.  

From 2005 to 2013, the hotels paid approximately $86,000 in commissions to Dickey.  Dickey also collected approximately $333,000 in wages earned by members of her ministry.  Dickey emotionally and physically abused the members, and coerced them into following her rules and remitting their earnings to Dickey or her church.  Dickey’s tactics included starving and humiliating church members, forcing some of them into homelessness, and threatening that God would harm their families if they did not comply with Dickey’s rules.  Several of Dickey’s victims testified at trial about their ordeals.

CHICAGO — A federal jury today convicted the mayor of Portage, Ind., on a corruption charge for soliciting and pocketing a bribe in exchange for influencing the awarding of city contracts.

The jury in U.S. District Court in Hammond, Ind., convicted JAMES SNYDER, 38, of Portage, Ind., on one count of bribery and one count of obstruction of internal revenue laws.  The jury acquitted Mayor Snyder on one other bribery count.  U.S. District Judge Joseph S. Van Bokkelen set sentencing for May 14, 2019.  The bribery conviction is punishable by up to ten years in prison, while the obstruction count is punishable by up to three years.

The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Grant Mendenhall, Special Agent-in-Charge of the Indianapolis office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.  The Indiana State Police provided valuable assistance.  The government was represented at trial by Assistant U.S. Attorneys Philip C. Benson and Jill R. Koster of the U.S. Attorney’s Office for the Northern District of Indiana.  The prosecutors were supervised by the U.S. Attorney’s Office for the Northern District of Illinois after recusals by supervisory personnel from the Northern District of Indiana.

Evidence at trial revealed that from 2012 to 2014, Mayor Snyder corruptly solicited and agreed to accept a $13,000 check to influence the awarding of a series of city contracts, including more than $1.1 million in contracts approved by the Portage Board of Works.

The obstruction charge involved a scheme to impede the IRS’s collection of personal taxes owed by Mayor Snyder, and the collection of payroll taxes owed by Mayor Snyder’s mortgage business – Portage, Ind.-based First Financial Trust Mortgage LLC.  While the IRS was attempting to collect these tax debts, Mayor Snyder secretly diverted funds from the mortgage business to a sole proprietorship that he created.  Mayor Snyder submitted forms to the IRS that failed to disclose, among other things, the existence of the sole proprietorship and its bank account.

CHICAGO — A convicted felon has been found guilty of illegally possessing an assault rifle and a loaded handgun in DuPage County.

CAMERON BATTISTE, 36, possessed the guns in April 2017 at an apartment complex in Willowbrook.  At the time of his arrest on April 7, 2017, the handgun was loaded with six live rounds.  Battiste had previously been convicted of a felony and was not legally allowed to possess a firearm.

A federal jury in Chicago on Wednesday convicted Battiste on one count of illegal possession of a firearm by a felon.  The conviction is punishable by up to ten years in prison.  U.S. District Judge Matthew F. Kennelly set sentencing for May 9, 2019, at 1:30 p.m.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  Substantial assistance was provided by the Cook County Sheriff’s Police Department and the Bolingbrook Police Department.  The government is represented by Assistant U.S. Attorneys Ankur Srivastava, William Dunne and Saurish Appleby-Bhattacharjee.

Evidence at the three-day trial revealed that the two firearms had been stolen from a cargo train that passed through Chicago on Sept. 18, 2016.  Another convicted felon, co-defendant IESHA STANCIEL, 39, of Willowbrook, was arrested at the same time as Battiste for illegally possessing the same two firearms.  Stanciel pleaded guilty prior to trial and was sentenced last month to six years in federal prison. 

During Stanciel’s sentencing hearing, the government presented evidence that Stanciel threatened an individual who was cooperating with law enforcement.  In November 2016, Stanciel posted intimidating messages on the cooperating individual’s Facebook page.  One of the posts contained several emojis of a handgun and referred to the individual as a “snitch.”

CHICAGO — A convicted felon from Chicago was arraigned today on a federal firearm charge for illegally possessing three handguns on the city’s South Side.

DERRICK CLAIBORNE, 43, of Chicago, pleaded not guilty to one count of illegal possession of a firearm by a convicted felon.  U.S. Magistrate Judge Sidney I. Schenkier ordered Claiborne to remain detained in federal custody.

Claiborne was one of four defendants indicted last month as part of a federal investigation that disrupted a Missouri-to-Chicago firearms pipeline.  The probe, led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, revealed that numerous handguns were brought to Chicago last year by two Missouri residents – JUMONTA MOORE and MARCUS INGRAM, according to a criminal complaint and affidavit previously filed in the case.  Moore and Ingram then supplied the guns to JAMES SAUNDERS, a convicted felon from Chicago, who illegally sold some of the firearms to confidential informants who were cooperating with law enforcement, the complaint states.  Saunders also allegedly sold three guns to Claiborne.

All four defendants were recently arrested.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of ATF; and Eddie Johnson, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Jared C. Jodrey.

Saunders, 47, is charged with five counts of illegal possession of a firearm by a convicted felon, and one count of dealing firearms without a license.  On Friday, Saunders pleaded not guilty to the charges.  He remains in federal custody. 

Ingram, 26, of Charleston, Mo., is charged with two counts of illegal transportation of a firearm by a person under felony indictment.  Ingram allegedly transported five handguns to Chicago last fall while under an unrelated felony indictment in Scott County, Mo.  Ingram pleaded not guilty to the federal charges during his arraignment earlier this month.  He remains in federal custody.

Moore, 20, of Sikeston, Mo., is charged with one count of illegal transportation of a firearm by a person under felony indictment.  Moore allegedly transported two handguns to Chicago last June while under an unrelated felony indictment in New Madrid County, Mo.  Moore pleaded not guilty to the federal charge during his arraignment last month.  Judge Schenkier ordered Moore released from custody on a $50,000 appearance bond.

Claiborne was previously convicted of two felonies, including a gun-related conviction, and was not lawfully allowed to possess a firearm when he allegedly purchased three handguns from Saunders last fall in Chicago’s Woodlawn 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. 

Dealing firearms without a license is punishable by a maximum sentence of five years in prison.  Illegal possession by a convicted felon carries a maximum sentence of ten years.  Illegal transportation by a person under felony indictment is punishable by up to ten years.  If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

ROCKFORD — A Rockford man was arrested today on a charge of aiming the beam of a laser pointer at an aircraft and at the flight path of an aircraft on Dec. 6, 2018, in Rockford.

BRENTON WELLS, 45, was indicted on the charge by a federal grand jury on Feb. 5, 2019. Wells will appear for arraignment today at 3:30 p.m. in federal court in Rockford, before U.S. Magistrate Judge Iain D. Johnston.

The charge carries a maximum potential penalty of up to five years in prison and a fine of up to $250,000.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The arrest was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Dan O’Shea, Rockford Chief of Police.

The public is reminded that an indictment is only a charge 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 government is represented by Assistant U.S. Attorney Scott R. Paccagnini.

CHICAGO — An Illinois accountant was charged today with criminal fraud for allegedly misappropriating more than $65 million from individuals and financial institutions.

SULTAN ISSA was a certified public accountant and the Chief Financial Officer of a group of partnerships, corporations and trusts owned by a Chicago-area family.  From 2007 to 2017, Issa embezzled at least $55 million of the family’s assets and solicited at least another $8.8 million from individuals in his personal capacity, claiming he would invest their money in legitimate opportunities, including a luxury auto dealership Issa owned in Burr Ridge, according to a criminal information filed in U.S. District Court in Chicago.  Issa used tens of millions of dollars in fraud proceeds to cover personal expenses and to secure fraudulent loans from financial institutions totaling at least $83 million to acquire, among other things, 25 residential properties in Illinois, Montana, Michigan, and Cabo San Lucas, Mexico, two private aircraft, four yachts, approximately 60 firearms, and assorted watches, jewelry and memorabilia, the information states.  He used another $15 million in fraudulently obtained funds to pay expenses related to the auto dealership, including the purchase of a showroom, the acquisition of luxury cars, and the salaries of employees, the information states.

The information charges Issa, 45, of Hinsdale, with one count of wire fraud affecting a financial institution.  Arraignment in federal court in Chicago has not yet been scheduled.

The information was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorney Kathryn E. Malizia.

Issa attempted to conceal the scheme by providing financial institutions with fraudulent loan documents and forging authorizations to gain control of funds belonging to the family-owned group, the information states.  Issa also created false account statements and made Ponzi-type payments to individual investors, the information states.

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

Wire fraud affecting a financial institution carries a maximum sentence of 30 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.