Northern District of Illinois

CHICAGO — A federal grand jury has indicted a Chicago man on carjacking and firearm charges for allegedly stealing multiple vehicles at gunpoint last month.

EARRIOUS MOORE, 24, stole three cars, attempted to steal two others, and twice discharged a handgun during a series of crimes in Chicago on April 26, 2018, according to a ten-count indictment returned Thursday.  The indictment charges Moore with three counts of carjacking, two counts of attempted carjacking, three counts of using, carrying and brandishing a firearm during a crime of violence, and two counts of discharging a firearm during a crime of violence. 

Moore was originally charged in a criminal complaint last month.  The firearm charges in the indictment each carry a maximum sentence of life in federal prison, while each attempted carjacking is punishable by up to 25 years due to the alleged firearm discharge during the attempts, and each carjacking by up to 15 years.  Arraignment in U.S. District 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; Eddie Johnson, Superintendent of the Chicago Police Department; and Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.

The case was investigated by the Vehicular Hijacking Task Force, a joint federal and state initiative consisting of officers, agents and prosecutors from the U.S. Attorney’s Office, Chicago Police Department, ATF, Federal Bureau of Investigation, Cook County State’s Attorney’s Office, Illinois State Police, and suburban police departments.

“Carjacking is a senseless act of violence that has no place in our society,” said U.S. Attorney Lausch.  “Our office is committed to working closely with CPD, ATF and other law enforcement partners to pursue and prosecute violent offenders.  The carjacking and gun charges announced today are the direct result of that strong partnership.”

“Today's federal indictment sends a very clear message of just how serious we are taking carjackings throughout Chicago,” said Superintendent Johnson.  “U.S. Attorney Lausch continues to be a formidable partner to the Chicago Police Department and shares our commitment and dedication to holding individuals accountable and keeping our streets safe.”

“There is no place in our society for violent criminals targeting innocent people,” said Special Agent-in-Charge Nunez.  “Chicago is a great city.  Citizens and visitors have the right to feel safe and ATF will continue to work closely with the United States Attorney’s Office and our law enforcement partners to restore peace and bring violent criminals to justice.”

According to the indictment, Moore carjacked two sport-utility vehicles and a sedan, and attempted to carjack two other vehicles.  He brandished a loaded .40-caliber pistol during all three carjackings, and he discharged the pistol during the two attempted carjackings.  In the final attempted carjacking, an individual sitting in a Mercedes-Benz in the 1400 block of North Lake Shore Drive was shot and wounded and subsequently treated at a hospital, according to the criminal complaint previously filed in the case.  Moore ran away from that vehicle and was apprehended by Chicago Police Department officers in the lobby of a nearby building, the complaint states.

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

The government is represented by Assistant U.S. Attorney Matthew L. Kutcher.

CHICAGO — An Elmwood Park man has been charged with federal drug offenses for allegedly importing a fentanyl analogue from China to the Chicago area.

ROLANDO ESTRADA, 42, imported furanyl fentanyl from China in the summer of 2016, according to an indictment returned this week in federal court in Chicago.  Estrada arranged to have the substances shipped to the Chicago area from a Chinese chemical company, according to a criminal complaint filed against him in 2016.  In June 2016, law enforcement agents intercepted and seized two packages from China that contained approximately four kilograms of furanyl fentanyl, the complaint states.  The following month, authorities seized more than five kilograms of cocaine and $90,000 in cash from Estrada’s residence in Elmwood Park.

Estrada fled to Mexico in July 2016, and a warrant was issued for his arrest.  He was taken into custody last month in Querètaro, Mexico.

The five-count indictment was returned Tuesday.  It charges Estrada with two counts of distribution of a controlled substance, two counts of importing a controlled substance from outside the U.S., and one count of possession of a controlled substance with the intent to distribute.  Arraignment is set for May 24, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.

The arrest and indictment were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian M. McKnight, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and William Hedrick, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  Substantial assistance was provided by the Downers Grove Police Department, Chicago Police Department, U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Illinois State Police, and Berwyn Police Department.  The government is represented by Assistant U.S. Attorneys Eric Pruitt and Matthew Kutcher.

The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF) Chicago Strike Force, a partnership between federal, state and local law enforcement agencies.  The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking organizations.

According to a search warrant and affidavit previously filed in the case, Estrada continued to coordinate shipments of fentanyl to Chicago after fleeing to Mexico.  The fentanyl was allegedly mixed with other substances before being sold to customers in the Chicago area.  After the sales, Estrada allegedly directed an associate to convert some of the proceeds into Bitcoin, a virtual currency typically circulated via the internet.  Estrada also allegedly instructed the associate on how to use a cellphone application to transfer Bitcoin to Estrada’s virtual wallet.

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

The charges against Estrada carry a maximum potential sentence of life in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal judge in Chicago has sentenced a suburban man to 16 years in prison for leading a Chicago-area cell of an international drug trafficking organization.

JESUS SALGADO ran a stash house in Bensenville where heroin and cash from drug sales were stored.  He also sold drugs in the Chicago area.  Before meeting with customers, Jesus Salgado would often pick up the heroin from the stash house, and then drop off the proceeds at the house after the sales.

Jesus Salgado was charged as part of “Operation Over the Top,” a federal probe that spanned more than two years and disrupted a Mexico-to-Chicago drug pipeline.  Authorities seized four kilograms of heroin from the Bensenville stash house and shut it down as part of the investigation.  The probe was led by the U.S. Drug Enforcement Administration and conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).

Jesus Salgado, 25, of Bensenville, pleaded guilty last year to a drug conspiracy charge.  U.S. District Judge John Robert Blakey imposed the 16-year sentence Wednesday in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian M. McKnight, Special Agent-in-Charge of the Chicago Field Division of the DEA; 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 streets of this city are made immeasurably more dangerous because of the drug trade,” Assistant U.S. Attorneys Kelly M. Greening, Misty Wright and John Cooke argued in the government’s sentencing memorandum.  “People like defendant, who regularly supplied kilogram quantities of heroin and cocaine to wholesale buyers, perpetuate the drug trafficking crisis in Chicago and all that goes with it, including addiction, crime, and violence.”

Jesus Salgado’s drug-dealing operation was allegedly overseen by his father, LORENZO SALGADO, who resides in Mexico but communicated with his son via phone, according to the indictment filed against both men.  Lorenzo Salgado allegedly directed the narcotics sales and the subsequent transportation of the proceeds to Mexico.  Lorenzo Salgado is charged with drug conspiracy and is considered a fugitive.

In his written plea agreement, Jesus Salgado stated that he operated the Bensenville stash house with his girlfriend, RUBY JOY BUENAVENTURA, 27, of Chicago, and that he and Buenaventura delivered drugs to customers in the Chicago area.  One of the deals occurred in a grocery store parking lot in Bensenville on May 3, 2016, when Jesus Salgado delivered two kilograms of heroin to SERGIO AREVALO-GOMEZ, 23, of Chicago. 

Arevalo-Gomez pleaded guilty to a drug distribution charge and was sentenced last year to four years in prison.  Buenaventura also pleaded guilty to a drug charge and was sentenced last year to three years in prison.

CHICAGO — An investment advisor was sentenced today to more than five years in federal prison for stealing $6.5 million from several clients, including family members in the Chicago area.

HENRY MEYER, who owned HCM Asset Management LLC in Coral Gables, Fla., misappropriated the money from 2009 to 2016.  Most of Meyer’s clients were his family members and friends, some of whom were elderly and had invested their retirement savings.  Meyer used some of the stolen funds to pay personal expenses, including rent, utilities and car payments.  His credit card statements reflect expensive purchases at restaurants, including lavish tips in the hundreds of dollars.

U.S. District Judge Charles R. Norgle imposed the 69-month prison sentence and ordered Meyer to pay $6.5 million in restitution to the victims.  Meyer, 47, of Coral Gables, Fla., pleaded guilty last year to one count of mail fraud.

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.

“This case is about a bold and brash con man who has little concern for anybody but himself,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum.  “The harm he has caused the victims is hard to overstate.” 

According to his plea agreement, Meyer told investors that their funds would be placed in a “European Derivative Investment Program,” whose performance was purportedly premised on the failures of several European economies.  In soliciting investors, Meyer claimed the program had partnerships with several European firms, and that he was part of a group of highly successful investment firms operating in the European derivatives markets.  Meyer represented that his firm produced investment returns as high as 600%.

In reality, the European Derivative Investment Program did not exist.  There was no support from other European companies, and Meyer’s firm never produced any successful returns.

In 2016, Meyer was arrested and a search warrant was executed at his apartment.  Among other things, the FBI found a document on Meyer’s desk entitled “Battle Plan.”  Part of the document discussed Meyer’s attempt to obtain more funding from new investors in order to make Ponzi-type payments to older investors.  Another part of the document discussed how to expedite Meyer’s passport application as part of a plan to evade law enforcement.  Meyer’s “Battle Plan” set forth a strategy to travel initially to a location in the southern United States, followed by an “international escape” to such locations as the Bahamas, Thailand, Singapore, Korea, Australia or New Zealand.

CHICAGO — Three men have been charged with federal firearms violations for scheming to purchase dozens of guns in Kentucky and illegally re-sell them in the Chicago area.

On several occasions in 2016 and 2017, CHRISTOPHER HENDERSON and JOHN L. PHILLIPS purchased firearms from private sellers in Kentucky and brought them to the Chicago area, according to a criminal complaint and affidavit filed in federal court in Chicago.  The pair then worked with JAIQAIL WRIGHT to re-sell the guns to buyers in Chicago and the surrounding suburbs, the charges allege.  Many of the guns were recovered by law enforcement during criminal investigations, the complaint states.  Authorities estimate that 80 to 90 firearms recovered by law enforcement in the Chicago area are associated with the defendants’ firearms trafficking.

All three defendants were arrested last week.  The complaint charges Henderson, 23, of Louisville, Ky., Phillips, 23, of Hillside, and Wright, 23, of Chicago, with dealing firearms without a license.  Phillips, who was previously convicted of a firearm-related felony, also faces a charge of illegal possession of a firearm by a felon.  Detention hearings are scheduled for May 17, 2018, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  Valuable assistance was provided by the Louisville, Ky., ATF Field Division, Chicago Police Department, Illinois State Police, and the Chicago High Intensity Drug Trafficking Area (HIDTA).

According to the charges, Henderson and Phillips bought the guns in Kentucky from individuals they met on Armslist.com, a website dedicated to the sale or trade of firearms and firearm-related items, such as ammunition and gun parts.  Using various names and email addresses, the pair contacted sellers on the website and arranged to meet them in Kentucky, the complaint states.  After the purchases, Phillips and Henderson transported the guns to the Chicago area, where they worked with Wright to re-sell them, the charges allege.

Wright allegedly acted as a broker, using Facebook and other means to advertise the weapons.  In one transaction described in the complaint, Wright brokered a deal to sell six handguns to a documented gang member.  The complaint also describes a purchase by Henderson of a .45-caliber pistol on or about Dec. 23, 2016.  The gun was recovered by law enforcement less than three months later while investigating a vehicular hijacking in the western suburbs, the complaint states.

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

Dealing firearms without a license is punishable by a maximum sentence of five years in prison.  The felon-in-possession charge against Phillips carries a maximum sentence of ten years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo and Kalia Coleman.

CHICAGO — A federal judge today sentenced a convicted felon to seven and a half years in prison in connection with the theft of more than a hundred firearms from a cargo train on the South Side of Chicago.

On April 12, 2015, ALEXANDER PEEBLES and seven other men burglarized the cargo train while it was parked in a railyard in Chicago’s Avalon Park neighborhood.  The cargo train was en route from a Ruger factory in New Hampshire to Spokane, Wash.  The thieves broke locks on a train car and spent over four hours unloading approximately 104 firearms, which they transported to a stash house in the city’s Englewood neighborhood. 

To date, law enforcement has recovered 33 of the stolen firearms at various locations, including 17 at crime scenes in Chicago and the surrounding area. 

All eleven defendants charged in the case have now been sentenced.  The other defendants are: FREDERICK LEWIS (sentenced to 15 years in prison); TERRY WALKER (12 and a half years in prison); ANDREW SHELTON (ten years in prison); PATRICK EDWARDS (eleven years in prison); NATHAN DRIGGERS (eight years in prison); DANDRE MOODY (seven years and nine months in prison); WARREN GATES (five years and three months in prison); ELGIN LIPSCOMB (five years in prison); MARCEL TURNER (four years in prison); and LORI SHELTON (three years of probation).

Peebles, 47, of Chicago, pleaded guilty in 2016 to one count of illegal possession of a firearm by a felon, and one count of possession of a stolen firearm.  U.S. District Judge John J. Tharp Jr. imposed the 90-month sentence in federal court in Chicago.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  The Chicago Police Department and the Norfolk Southern Railroad Police Department provided valuable assistance.

The government is represented by Assistant U.S. Attorney Christopher V. Parente.

CHICAGO — A former high-ranking commander in the Mexican Federal Police entered a no contest plea in U.S. District Court today to the charges of obstruction of justice and conspiring with others to corruptly impede a U.S.-based narcotics trafficking investigation. A no contest plea is one in which a defendant acknowledges that the facts of the case would result in a verdict of guilt, although the defendant is not admitting to those facts.

IVAN REYES ARZATE, 46, of Mexico City, also known as "La Reina," entered a no contest plea to charges that he obstructed and conspired to obstruct an investigation being carried out by the U.S. Drug Enforcement Administration. Reyes acquired information regarding the United States investigation through his position as a commander in the Mexican Federal Police, which was working with the DEA and the U.S. Attorney’s Office in Chicago to investigate an international drug trafficking and money laundering organization.

An indictment was returned in July 2017 charging Reyes and he has been in custody since the announcement of the charges. U.S. District Judge Amy St. Eve accepted the plea, and set the sentencing for August 29, 2018 at 9:30.

Today’s plea was announced by John R. Lausch Jr., United States Attorney for the Northern District of Illinois; and Brian McKnight, Special Agent in Charge of the Chicago Field Division of the DEA. The investigation was conducted through the Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force in cooperation with the U.S. Attorney’s Office for the Southern District of California, the Chicago Police Department, the Illinois Department of Corrections, the Illinois State Police, and the U.S. Department of Homeland Security.

"Today’s plea is historic in that it represents the first time in this district that a high level foreign law enforcement officer is being held criminally accountable in a U.S. courtroom for obstructing a U.S. investigation targeting transnational organized crime," said U.S. Attorney Lausch. "This result follows over a year of hard work on behalf of our partners at the DEA and our counterparts in Mexico. We remain steadfast in our commitment to disrupt and dismantle drug trafficking organizations and fight against corruption at all levels."

"The Drug Enforcement Administration continues to work tirelessly with the US Attorney’s Office as well as our Mexican counterparts in this shared fight against transnational organized crime, violence and drug trafficking," remarked Special Agent in Charge McKnight. "Chasing corruption across the border and holding those accountable for obstructing lawful investigations reinforces to narcotics traffickers that justice does prevail."

The obstruction of justice charge carries a maximum sentence of twenty years in prison. The conspiracy charge carries a maximum sentence of five years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is represented by Assistant U.S. Attorneys Katherine Sawyer and Devlin Su.

CHICAGO — MELVIN REYNOLDS, a former member of the United States House of Representatives, was sentenced today to six months in federal prison for failing to file four years of federal income tax returns, with two months of credit for time served.

Reynolds, 66, was found guilty after a bench trial last year of four counts of willfully failing to file a federal income tax return. Reynolds failed to file returns for the calendar years 2009, 2010, 2011 and 2012.

U.S. District Judge Robert W. Gettleman 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; 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. Attorneys Barry Jonas and Georgia Alexakis.

Evidence at trial showed that Reynolds received gross income in excess of the minimum amount required to file a tax return. As a result, he was required by law to file a federal income tax return, but he willfully failed to do so.

CHICAGO — Two Chicago Police Officers assigned to a gang unit on the city's West Side knowingly submitted false affidavits to judges to obtain search warrants and stole cash and drugs from properties they searched, according to a federal indictment announced today.

Officers XAVIER ELIZONDO and DAVID SALGADO were assigned to a gang team in the Chicago Police Department's Tenth District. Elizondo is a sergeant who oversaw the team. According to the charges, the officers conspired to submit materially false information to state court judges to obtain search warrants that enabled them to enter various properties and seize cash and drugs. The officers also stole property and falsified police reports to conceal the thefts, the indictment states. The charges describe how Elizondo and Salgado pocketed $4,200 in cash recovered during a search of a rental vehicle in Chicago on Jan. 28, 2018.

The indictment was returned Wednesday in federal court in Chicago. It charges Elizondo, 45, of Chicago, and Salgado, 37, of Chicago, with one count of conspiracy to commit theft and one count of embezzlement. Salgado is also charged individually with one count of making a false statement to the Federal Bureau of Investigation. Arraignments in U.S. District Court have 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 FBI; and Eddie Johnson, Superintendent of the Chicago Police Department.

"When police officers fail to discharge their duties with honesty and integrity, they betray not only the citizens of Chicago, but their fellow officers who do their jobs the right way," said U.S. Attorney Lausch. "Our office will continue to vigorously prosecute corruption at all levels, and hold accountable public servants who choose to violate the public trust for personal gain."

"Law enforcement corruption undermines the integrity of the criminal justice system," remarked Special Agent-in-Charge Sallet. "The Chicago Police Department and the FBI will continue to partner aggressively to combat corruption and civil rights abuses, ensuring the integrity of Chicago law enforcement. These charges illustrate the Chicago Police Department’s and the FBI’s commitment and ability to address isolated incidents where officers betray the badge."

"Over the last two years, CPD has worked tirelessly to build trust and partnerships with the communities we serve. That is why the alleged conduct is very troubling – it dishonors what I and every member of CPD have dedicated our lives to and risk our lives for each and every day," said CPD Superintendent Eddie Johnson. "I have zero tolerance for any behavior that violates the hard work of the people who wear this star. That is why I'm proud CPD played a central role in this investigation, working side by side with our Federal partners since the very beginning."

According to the indictment, Elizondo and Salgado submitted the false applications for "J. Doe" search warrants, which rely on information provided by confidential informants with knowledge of the criminal activity. In order to obtain such a warrant, officers must submit a sworn complaint that details the information alleged by the informant, and then bring the informant before the judge so that the judge could personally examine the truthfulness of the information. The charges allege that Elizondo and Salgado caused two Chicago residents to pose as "J. Doe" confidential informants and furnish false information to the court. After using the warrants to seize cash, drugs and cartons of cigarettes from Chicago properties, the officers allegedly gave a portion of those items to the purported informants.

The false statement charge accuses Salgado of lying to the FBI about his whereabouts during his police shift on the day after the theft from the rental car. On Jan. 29, 2018, after Elizondo discovered that law enforcement was potentially investigating him and Salgado, Elizondo instructed

Salgado to remove property from Salgado’s home, the indictment states. When interviewed by the FBI the following day, Salgado falsely claimed that he did not remember whether he had returned home during his shift, according to the charges.

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 embezzlement count carries a maximum sentence of ten years, while the conspiracy and false statement counts are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The government is represented by Assistant U.S. Attorneys Sean J.B. Franzblau and Ankur Srivastava.

elizondo_salgado._indictment_0.pdf

ROCKFORD — A Rockford, Ill., man was sentenced today by U.S. District Judge Philip G. Reinhard for illegally possessing a firearm as a convicted felon.  ALBERT DOWTHARD, 37, was sentenced to 186 months in federal prison, in addition to 4 years of supervised release following his imprisonment, for illegally possessing a .38 revolver on Nov. 14, 2016.  Dowthard pleaded guilty to the charge on Oct. 12, 2017, and also admitted to possessing .38 caliber ammunition at the time.  In imposing the sentence, Judge Reinhard found that Dowthard was an “armed career criminal” under a federal firearm law mandating non-paroleable prison sentences of 15 years or more for felons with extensive records of prior convictions who illegally possess or sell guns, which resulted in Dowthard receiving a higher sentence. 

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Rockford Police Chief.

The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.

ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Philip G. Reinhard on a federal drug trafficking charge.  QUINCY L. ATMORE (also known as “Q”), 46, of Rockford, Ill., was sentenced to 17 years in federal prison, to be followed by 3 years of supervised release.  Atmore pleaded guilty to distributing heroin on Jan. 17, 2018.  In the written plea agreement, Atmore admitted that between October 2015 and September 2016, he operated a heroin trafficking business in the Rockford area, and maintained two cell phone lines as heroin hotlines for customers to order and purchase heroin.  Atmore typically sold user quantity amounts of heroin, such as a gram or one-half gram, but occasionally did larger transactions.  Atmore admitted he engaged in a large number of transactions each day, selling at least 10 to 15 grams of heroin a day resulting in sales of at least 4500 grams of heroin during the time period that he operated his heroin trafficking business.  Atmore also admitted that on Sept. 7, 2016, he possessed a firearm in a vehicle he was driving near a BP Station on Auburn Street and that he possessed the firearm for protection when conducting drug transactions.

MAURICE D. NEAL (also known as “Moe”), 35, of Rockford, is also charged with conspiracy to distribute a kilogram or more of heroin, in addition to charges of distributing heroin in Rockford, Ill., from October 2015 through September 2016.  Neal is currently in federal custody pending trial.  The public is reminded that an indictment contains only charges and is not evidence of guilt.  Neal is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  The drug conspiracy charge carries a 10-year mandatory minimum sentence and a maximum potential penalty of up to life in federal prison, and a fine of up to $10 million.  Each count of distribution of heroin carries a maximum potential penalty of up to 20 years in prison, and a fine of up to $1 million.  If Neal is convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. 

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian M. McKnight, Special Agent in Charge of the Chicago Office of the Drug Enforcement Administration; and Leo P. Schmitz, Director of the Illinois State Police.  The case was investigated by the Rockford Resident Agency of the Drug Enforcement Administration’s Chicago Field Office, and the Stateline Area Narcotics Team (“SLANT”), a task force led by the Illinois State Police.  The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Federal Bureau of Investigation, the Winnebago County Sheriff’s Department, and the Rockford Police Department assisted in the investigation.

The government is being represented by Assistant U.S. Attorney Margaret J. Schneider.

ROCKFORD — A Lake in the Hills, Ill. man was sentenced on May 7, 2018, by U.S. District Judge Frederick J. Kapala for wire fraud.  SALVATORE CRIBARI (also known as “Sal Fradillio”), 61, was sentencing to 3 years in federal prison, to be followed by 3 years of supervised release, and was also ordered to pay restitution in the amount of $342,489.52. Cribari pleaded guilty to wire fraud on December 11, 2017. 

According to the written plea agreement, between February 2008 and September 2016, Cribari fraudulently obtained hundreds of thousands of dollars in store credit from various locations of a nationwide home improvement store by returning stolen merchandise without a receipt in exchange for store credit. Cribari later used the fraudulently-obtained store credit to purchase large-ticket items, including flooring, water heaters, appliances, home organization units, kitchen cabinets and countertops, and personal utility trailers, and to pay for installation services. Some of the fraudulently-obtained products were installed at Cribari’s home, condominium units that he owned and rented to others, and a business he operated. Cribari admitted he used over 1,300 false or fictitious Illinois identification or driver’s license numbers to conduct the non-receipted returns. As part of the scheme, Cribari resold fraudulently-obtained personal utility trailers for cash to purchasers who were not aware of his scheme. Cribari also sold fraudulently-obtained store credit at a discount for cash to an individual purchaser who was not aware of his scheme. Over the course of the scheme, Cribari fraudulently obtained over $400,000 in store credit and redeemed approximately $339,989 of that store credit for merchandise and services. Approximately $64,895 in fraudulently-obtained store credit and various stolen or fraudulently-obtained merchandise was recovered as part of the investigation.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeff Sallet, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Lake County Sheriff’s Office and the Lake in the Hills Police Department assisted in the investigation.

The government was represented by Assistant U.S. Attorney Talia Bucci.

ROCKFORD — A Freeport, Ill. man was sentenced yesterday by U.S. District Judge Frederick J. Kapala on a gun trafficking charge.  RYAN ALAN LORING, 38, was sentencing to two and a half years in federal prison, to be followed by 3 years of supervised release.  Loring pleaded guilty on January 26, 2018 to transferring firearms to a convicted felon.  According to the written plea agreement, on April 4, 2014, Loring purchased four firearms from a licensed dealer in Rockford.  Included among those firearms were three .380 caliber pistols, which Loring then immediately transferred to an individual Loring knew was a convicted felon.  Loring admitted that he purchased approximately 10 additional firearms for the same individual between March and November 2014 from licensed firearms dealers located in Rockford or Freeport.  Loring admitted that he made false written statements to the licensed firearms dealers in connection with the purchases of those firearms.  Loring admitted that he misrepresented on written forms that he was the actual buyer of the firearms when Loring knew that the other individual was in fact the buyer of the firearms.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives.

The government was represented by Assistant U.S. Attorney Talia Bucci.

 

CHICAGO – ERNESTO GODINEZ, 27, of Chicago, was charged in connection with the shooting of an ATF Agent engaged in his official duties. A federal criminal complaint charges him with assault of a Federal Officer with a dangerous and deadly weapon.

Godinez made an initial court appearance today before United States Magistrate Judge Maria Valdez, who ordered him detained until a detention hearing on Thursday, May 17th at 11:00 am.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, 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. Substantial assistance in the investigation of and search for Godinez was provided by the United States Marshals Service, the Federal Bureau of Investigation, the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, the Illinois State Police, and several other local police departments.

The officials noted that the investigation continues.

"Violent assaults on law enforcement agents working to make the community safer will not be tolerated," remarked U.S. Attorney Lausch. "The U.S. Attorney’s Office is committed to holding such offenders accountable, as are our local, state, and Federal law enforcement partners, whose tireless investigation to identify and locate the defendant after the shooting made this prosecution possible."

"ATF is dedicated, determined and committed to making our community safer," said Special Agent in Charge Celinez Nunez. "We cannot let the people committing these violent acts to continue to terrorize our neighborhoods. We can make a difference if we stand together and hold them accountable."

"Each and every day members of law enforcement run toward the danger to keep Chicagoans safe, which is something we witnessed firsthand last Friday," said CPD Superintendent Eddie Johnson. "CPD was proud to work with our partner agencies to apprehend the individual responsible and I would like to thank the residents in the Back of the Yards community for their close cooperation in making our neighborhoods safer."

The public is reminded that a complaint 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.

Assault of a Federal Officer with a dangerous and deadly weapon carries a maximum sentence of 20 years in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

Assistant U.S. Attorneys Kavitha Babu and Nicholas Eichenseer are representing the government.

Ernesto Godinez Complaint.pdf

ROCKFORD — A Gratiot, Wisc., woman was sentenced today by U.S. District Judge Frederick J. Kapala for stealing more than $2 million from her former employer and related companies. 

TERESA L. JOHNSON, 53, was sentenced to 41 months in federal prison, to be followed by three years of supervised release, and was also ordered to pay $2,204,508 in restitution.  Johnson pleaded guilty to a wire fraud charge on Dec. 13, 2017.

According to the written plea agreement, Johnson was a credit and collections specialist for a company located in Winslow, Ill.  Johnson also did credit and collections work for two other companies, all of which had the same ownership.  As a part of her duties, Johnson would send payment instructions to customers that owed money to the companies.  From Jan. 18, 2012, through Aug. 15, 2016, Johnson created payment instructions for customers making payment by electronic bank transfer that contained her personal bank account number and provided those instructions to customers of the companies. 

As stated in the plea agreement, the customers electronically submitted payments to the bank account number provided by Johnson, rather than to the companies.  Johnson received the customers’ payments, totaling more than $2 million, in her personal bank account.  Johnson also admitted that she used various methods to conceal her scheme, including using prepayments on balances due from customers and applying those prepayments to the past due balances of the customers whose money she took.

The sentencing 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 government was represented by Assistant U.S. Attorney Scott R. Paccagnini.

ROCKFORD — A Rockford man was sentenced today by U.S. District Judge Frederick J. Kapala for mail fraud. 

CHARLES R. (“CHUCK”) HANSEN, 63, a financial planner, was sentenced to three years in federal prison, to be followed by two years of supervised release, and ordered to pay $739,705 in restitution. 

Hansen pleaded guilty to the charge on Sept. 12, 2017, and admitted that he schemed to defraud investors out of more than $700,000, using the mail to further his scheme.  According to the written plea agreement, between 1996 and 2014, Hansen operated financial planning and real estate companies, including Senior Securities of Rockford LLC and Chicago Wealth Partners LLC.  As part of his financial planning business, Hansen sold fixed annuities to retirement-age investors.  In 2008, Hansen began to encourage some individuals to whom Hansen had previously sold secure investments in fixed annuities to move their money to investments in Senior Securities and Chicago Wealth Partners, which Hansen told investors were real estate companies in which the investors could make a higher rate of return on their investment.  Hansen used the investments in those two companies to rehab and sell homes in the Rockford and Chicago areas. 

Hansen admitted that he did not explain the risky nature of that sort of investment and told investors that their investments would remain secure. Hansen further admitted that he entered into promissory notes with investors promising a high rate of return, and that he convinced investors to renew their promissory notes for additional terms.  At the time of the renewals, Hansen did not disclose to the investors that Senior Securities and Chicago Wealth Partners were failing and that he lacked sufficient funds to repay the investors the amounts owed to them pursuant to the original promissory notes. 

Hansen admitted that, as a result of his scheme, he caused investors to invest approximately $842,150 in Senior Securities and Chicago Wealth Partners, and that only $109,792 of that amount was returned to them, causing the investors to suffer losses totaling approximately $732,257.

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State.  The government was represented by Assistant U.S. Attorney Margaret J. Schneider.

CHICAGO — A Chicago man was sentenced today to 37 years in federal prison for producing and possessing thousands of photographs and videos of child pornography.

SCOTT RESKEY, 62, possessed more than 400,000 images and more than 1,400 videos of child pornography on his laptop and other devices.  Reskey also groomed and sexually abused a child under the age of ten.  On more than one occasion Reskey directed the girl to engage in sex acts with him, while he filmed it.

Reskey pleaded guilty last year to one count of production of child pornography and one count of possession of child pornography.  U.S. District Judge Matthew F. Kennelly sentenced Reskey to 25 years on the production charge and a consecutive 12 years on the possession charge, for a total sentence of 37 years.

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.

“Reskey’s offense conduct is morally abhorrent and among the most serious child pornography offenses imaginable,” Assistant U.S. Attorney Grayson Walker argued in the government’s sentencing memorandum.

The case against Reskey arose from a covert federal investigation of an online community that sent and received child pornography via a website called “PlayPen.”  Reskey accessed the site using the name “peanuty123.”  In addition to the images and videos, authorities recovered from Reskey’s laptop a document entitled “The Pedophile’s Handbook.”  The handbook spans more than 500 pages and explains how to groom and abuse minors.

Reskey was arrested in February 2017.  Authorities were able to identify hundreds of the children who were exploited in the images and videos possessed by Reskey.  Dozens of those victims submitted statements to the Court in advance of sentencing, detailing the harm caused by the production, distribution and possession of their images by individuals like Reskey.

ROCKFORD — Two men from Lake County have been arrested for distributing heroin in Rockford.  

JAVIER A. PEREZ, 27, of Park City, and JOSE ARMANDO OCHOA-LOPEZ, 27, of Zion, were indicted by a federal grand jury on March 7, 2018, on charges of distributing and conspiring to distribute 100 grams or more of heroin in Rockford in October 2017.

Perez was arrested Tuesday by federal law enforcement and appeared for arraignment before U.S. Magistrate Judge Iain D. Johnston in Rockford today.  He was ordered to be held in federal custody until a detention hearing on May 4, 2018, at 9:15 a.m.  

Ochoa-Lopez was arrested on March 14, 2018, and remains in federal custody pending trial.  Both defendants have pleaded not guilty to the charges.

Each count of the indictment carries a mandatory minimum penalty of five years in prison and a maximum penalty of up to 40 years in prison, in addition to a fine of up to $5 million.  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 defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The 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; Dan O’Shea, Rockford Police Chief; and Gary Caruana, Winnebago County Sheriff.  The federal investigation was conducted by the FBI-led Rockford Area Violent Gang Task Force, which includes the above agencies as well as the Loves Park and Freeport Police Departments.  The Lake County Gang Task Force, consisting of the Lake County Sheriff’s Office, Grayslake Police Department, Wauconda Police Department, Mundelein Police Department, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and U.S. Department of Homeland Security's Homeland Security Investigations also assisted in the investigation.

The government is represented by Assistant U.S. Attorney Talia Bucci.

CHICAGO — The elevator foreman at the University of Illinois at Chicago received bribes from the owner of a suburban company in exchange for steering the school’s elevator repair work to it, according to an indictment returned in federal court in Chicago.

The indictment accuses the UIC employee, JAMES HERNANDEZ, of pocketing more than $200,000 in bribes from SUZY TAMRAS-MARTIN, the owner of Willbrook-based Smart Elevators Co.  Tamras-Martin concealed the bribes by issuing checks payable to Hernandez’s daughter, and falsely describing the payments in company records as “professional fees,” the indictment states.  Hernandez allegedly forged his daughter’s endorsement on the checks and deposited them into a bank account he controlled.  The charges allege that Tamras-Martin made the payments with the intent to influence and reward Hernandez in connection with his official duties at UIC, which included the referral of the school’s elevator service and repair work.

The seven-count indictment was returned Tuesday and ordered unsealed today.  It charges Hernandez, 54, of Tinley Park, and Tamras-Martin, 68, of Naperville, with one count of conspiracy to commit federal program bribery, and three counts apiece of federal program bribery.

Hernandez was arrested this morning.  He pleaded not guilty at an afternoon arraignment before U.S. District Judge Edmond E. Chang and was ordered released on a recognizance bond.  An arraignment date for Tamras-Martin 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 Federal Bureau of Investigation.  The government is represented by Assistant U.S. Attorneys Yasmin N. Best and Rick D. Young.

From 2011 to 2015, UIC paid Smart Elevators more than $5 million for servicing and repairing elevators.  The bribery scheme began in April 2013 and continued through at least August 2015, the indictment states.  The indictment seeks forfeiture from Hernandez of approximately $208,700 in cash.

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 reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — The U.S. Attorney’s Office has charged a Chicago man with attempted carjacking for allegedly trying to take a vehicle at gunpoint on the city’s Near North Side.

EARRIOUS MOORE, 23, discharged a firearm while attempting to hijack a Mercedes-Benz sedan in the 1400 block of North Lake Shore Drive on April 26, 2018, according to a criminal complaint filed in U.S. District Court in Chicago.  An individual sitting in the car was shot and wounded and subsequently transported to a hospital for treatment, the complaint states.  Moore ran away from the vehicle and was apprehended by Chicago Police Department officers in the lobby of a nearby building, the complaint states.

The complaint was filed Friday.  It charges Moore with one count of attempted carjacking.  An initial court appearance will be held on April 30, 2018, in federal court in Chicago.

The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Eddie Johnson, Superintendent of the Chicago Police Department; and Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.  The Cook County State’s Attorney’s Office provided valuable assistance.

The officials noted that the investigation continues.

The case was investigated by the Vehicular Hijacking Task Force, a joint federal and state initiative consisting of officers, agents and prosecutors from the U.S. Attorney’s Office, Chicago Police Department, ATF, Federal Bureau of Investigation, Cook County State’s Attorney’s Office, Illinois State Police, and suburban police departments.

“Citizens of Chicago and visitors to our city must be able to live their lives without fear of violent attacks,” said U.S. Attorney Lausch.  “Our office will use every available federal resource in working with CPD and our other law enforcement partners to pursue and prosecute violent offenders.  Our message to would-be carjackers and those using guns to commit crimes is simple: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time.”

“Each and everyday CPD officers and detectives work hand in hand with our federal partners to make Chicago safer,” said Superintendent Johnson.  “Today's federal prosecution demonstrates the strength and commitment of CPD and the United States Attorney's Office to combat violence, and sends a simple and clear message that we will not tolerate carjackings and individuals will be held accountable for their actions before a federal court.”

“This case should serve as a warning to all violent offenders preying on innocent people,” said Special Agent-in-Charge Nunez.  “ATF and our law enforcement partners are joining resources to put an end to the senseless violence and restore peace in our neighborhoods.”

According to the complaint, Chicago Police Department officers on routine patrol were alerted to a carjacking incident in which an offender used a handgun to take a Jeep sport-utility vehicle from a victim in the 1000 block of North Rush Street in Chicago.  Soon after, the officers were alerted to the attempted carjacking of the Mercedes-Benz, the complaint states.

The carjacking charge is punishable by up to 15 years in prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

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

The government is represented by Assistant U.S. Attorney Matthew L. Kutcher.

CHICAGO — A suburban physician has been indicted on federal fraud charges for allegedly pocketing nearly $1 million in payments from Medicare and a private insurer for nonexistent treatment.

DR. PRANAV PATEL owned and operated Palos Medical Care, S.C., in Palos Heights.  The 12-count indictment alleges that Dr. Patel submitted fraudulent claims for purported medical tests and examinations that were never performed.  He allegedly used some of his patients’ names without their knowledge to submit fraudulent claims.  From 2008 to 2013, Dr. Patel fraudulently obtained, or caused his clinic to obtain, at least $950,000 in payments from Medicare and Blue Cross and Blue Shield of Illinois, the indictment states.

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges Dr. Patel, 51, of Burr Ridge, with seven counts of health care fraud, three counts of making false statements in relation to a health care matter, and two counts of aggravated identity theft.  Arraignment is set for May 15, 2018, at 8:45 a.m., before U.S. District Judge Amy J. St. Eve.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.

The indictment describes several instances in which Dr. Patel submitted a claim to BCBS or Medicare for a non-invasive “duplex scan” purportedly performed on a patient, when, in fact, no such test was actually completed.  On at least one occasion, according to the charges, Dr. Patel prepared a seven-page electronic medical record indicating that a patient had come to the office for a follow-up visit and examination, when the patient had actually come to the office to re-fill a prescription.

The public is reminded that an indictment 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. 

Aggravated identity theft is punishable by a mandatory sentence of two years in prison.  Health care fraud is punishable by up to ten years, while false statements carry a maximum of five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. 

The government is represented by Assistant U.S. Attorneys Stephen Chahn Lee and Kaarina Salovaara.

ROCKFORD — A Rockford man was arrested Tuesday by federal law enforcement officers on drug trafficking and firearm charges. 

ANTWON D. TATE, 29, was indicted on April 10, 2018, by a federal grand jury in Rockford on five counts of distributing heroin in Rockford in January and February, two counts of illegally possessing a firearm (two 9mm Hi-Point rifles) as a convicted felon, and one count of possessing a firearm with an obliterated serial number.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. 

Tate was arraigned Tuesday before U.S. Magistrate Judge Iain D. Johnston and pleaded not guilty.  Tate is currently in custody and scheduled to appear before Judge Johnston for a detention hearing on April 26, 2018.

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.

Each count of distributing heroin carries a maximum sentence of 20 years in prison.  Each charge of illegally possessing a firearm as a convicted felon carries a maximum sentence of ten years in prison, and the charge of possessing a firearm with an obliterated serial number carries a maximum sentence of 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. 

The government is represented by Assistant U.S. Attorney Margaret J. Schneider.

CHICAGO — A federal judge in Chicago today sentenced the former president of a Florida-based financial firm to ten years in prison for his role in a $179 million sham loan scheme.

TIMOTHY G. FISHER was the president and chief operating officer of First Farmers Financial LLC when the company sold 26 non-existent loans to a Milwaukee investment firm for $179 million.  The company submitted documents to the Milwaukee investment firm that falsely created the appearance that the loans were issued to borrowers in Florida and Georgia and had been guaranteed, in part, by the federal government.  In fact, the sham loans, which purportedly had principal amounts ranging from $2.5 to $10 million, did not exist.  The Milwaukee firm, which purchased the loans as an investment vehicle for its clients, including community banks, retirement plans, municipalities, and subdivisions in Illinois and elsewhere, suffered a loss of $179 million.

First Farmers’ former chief executive officer, NIKESH A. PATEL, of Windermere, Fla., was also charged in connection with the fraud.  Patel pleaded guilty to five counts of wire fraud and was sentenced last month to 25 years in prison.

U.S. District Judge Charles P. Kocoras today imposed Fisher’s ten-year sentence after a hearing in federal court in Chicago.  Fisher, 41, of Pasadena, Calif., previously pleaded guilty to one count of money laundering.

The sentencings 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 Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.

“The defendant’s dishonesty was not a single lapse of judgment, but rather, involved years of significant deceit,” Assistant U.S. Attorney Patrick J. King, Jr., argued in the government’s sentencing memorandum.  “His scheme, born of greed, won him millions and was devastating to the investors who were unwitting victims.”

“Fraudulent transactions like these cause harm to companies, the financial industry, and the individuals whose hard-earned money is invested as a means of planning for their future,” said Director Monhart.  “These crimes undermine legitimate companies and compromise the financial integrity of benefit plans.”

Fisher admitted in a plea agreement that he created fictitious financial statements that were sent to the Milwaukee company.   After receiving money from the Milwaukee firm, Fisher unlawfully engaged in monetary transactions with a portion of the fraudulently obtained funds, including a wire transfer of $450,000 of scheme proceeds.  Fisher caused these proceeds to be transferred from First Farmers’ account in Florida to his personal bank account in California.  He then transferred these funds to a bank account belonging to a business in Nevada in connection with an investment in that business.

Patel submitted false statements to the U.S. Department of Agriculture to obtain certification in a USDA program that guarantees a percentage of loans issued to borrowers who improve the economic and environmental climate in rural communities.  First Farmers, which had offices in Florida, Georgia and California, obtained USDA certification after Patel submitted the false statements about the company’s assets and officers.

ROCKFORD — JOSEPH F. RUIZ, 54, of McHenry, was indicted today by a federal grand jury in Rockford for concealment of an asset in a bankruptcy case.

As alleged in the indictment, Ruiz filed a Chapter Seven Bankruptcy Petition on January 25, 2013. The indictment alleges that Ruiz fraudulently concealed a personal injury claim from the bankruptcy trustee. The personal injury claim allegedly arose out of injuries suffered by Ruiz on March 19, 2009.

The charge in this case carries a maximum potential penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater.  The Court may also impose a sentence of probation of one to five years, and a term of supervised release 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 is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The investigation was conducted by the United States Postal Inspection Service.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Acting Postal Inspector in Charge, Chicago.

The government is represented by Assistant U.S. Attorney Michael D. Love.

CHICAGO — More than a dozen individuals, including the owner of an auto body shop where drugs were stashed, are facing criminal charges as part of a federal investigation into drug trafficking on the West Side of Chicago.

The investigation, dubbed “Operation Broken Roe,” centered on drug sales in the city’s Little Village and West Garfield Park neighborhoods, and resulted in the seizure of distribution quantities of heroin, fentanyl, MDMA pills and cocaine.  Authorities also seized 12 illegal firearms, including an assault rifle, and nearly $60,000 in narcotics proceeds.

One of the defendants publicly advertised the sale of MDMA pills – commonly known as ecstasy – on social media.  His Instagram posting displayed a photo of dozens of pills, alongside a telephone number.  Another defendant owned an auto body shop where illegal narcotics were mixed, packaged and stored.

The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies.  The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking organizations.

Criminal complaints and affidavits filed in federal court in Chicago charge 14 defendants with various drug offenses.  Several of the defendants were arrested Wednesday.  Detention hearings will be held on April 24, 2018, before U.S. Magistrate Judge Jeffrey Cole.  Five other defendants were charged in state complaints and will appear at a later time in Cook County Criminal Court.

The federal 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; Eddie Johnson, Superintendent of the Chicago Police Department; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  The Cook County State’s Attorney’s Office and the Internal Revenue Service Criminal Investigation, Chicago Field Office, provided valuable assistance.

According to the charges, JONATHAN REYNA, 25, of Berwyn, and MARCO MENDOZA, 24, of Lyons, operated a drug trafficking organization that distributed heroin and fentanyl in the Chicago area.  COREY BENSON, 23, of Chicago, participated in the organization by regularly distributing Reyna’s and Mendoza’s narcotics and collecting payment from customers, according to the charges.  ANTON COLE, 23, of Chicago, ANTON LITTLE JR., 20, of Chicago, and DEVONTAY JOHNSON, 26, of Chicago, worked with Benson to distribute heroin to customers.  PRINCE BRUNT, 36, of Chicago, who owns the auto body shop in the 3300 block of West Cermak Road in Chicago, participated in the organization by permitting Benson to manufacture and store narcotics at the shop, according to the charges.  LARRY JONES, 55, of Chicago, and COMMANDER WHITE, 27, of Chicago, also distributed Reyna’s and Mendoza’s narcotics, the complaint states. 

Undercover law enforcement officers purchased various quantities of heroin and MDMA pills from Johnson in the summer and fall of 2017, the complaints state.  The purchases occurred near a residence in the 4300 block of West Wilcox Street in Chicago, where NATASHA SUMMERVILLE, 30, of Chicago, maintained a drug stash house, the charges allege.  It was Johnson – using the profile name deadendboi_vtay – who publicly posted the photo of the MDMA pills on Instagram, the complaint states.  Johnson’s sources for the pills were MAURICE CARROLL, 28, of Chicago, and HENRY MERRILL, 31, of Chicago, the charges allege. 

The public is reminded that a complaint 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.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

Assistant U.S. Attorneys Elizabeth R. Pozolo and Aaron R. Bond are representing the government.

CHICAGO — The bookkeeper for two Chicago-area staffing companies has admitted in federal court that he conspired to defraud the IRS for at least a decade by falsifying corporate tax returns and W-2 forms to reduce the taxes assessed against the companies and their owners.

BARRY POTICHA, 73, of Northbrook, pleaded guilty Monday to one count of conspiracy to defraud the United States.  Poticha admitted in a plea agreement that he caused a total federal tax loss of more than $24 million.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Gabriel Grchan, Special Agent-in-Charge, IRS Criminal Investigation, Chicago Field Office.  The government is represented by Assistant U.S. Attorney Kathryn E. Malizia.

Poticha admitted that beginning no later than 2000 and continuing through December 19, 2011, he conspired with an independent contractor to falsify information supplied to the IRS in the quarterly Employment Tax Returns (Form 941) filed by the companies, as well as in false W-2 forms the companies provided to their employees and the IRS.  When employees discovered discrepancies in the W-2 forms, Poticha issued letters to conceal the fraud.  This conduct resulted in a federal tax loss of approximately $24,450,609.

In addition to defrauding the IRS for the benefit of the employers and their owners, Poticha also admitted filing false personal income tax returns on his own behalf for tax years 2010 through 2015.  In each of these years, Poticha fraudulently underreported his own income and over-reported his income tax withholding, resulting in a federal tax loss of $341,621 and a state tax loss of $32,604.

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

U.S. District Judge Gary Feinerman set sentencing for Aug. 14, 2018, at 10:30 a.m.

CHICAGO — A Chicago investment advisor was sentenced today to more than 12 years in federal prison for stealing $5.2 million from several clients, including his elderly in-laws.

DANIEL GLICK, who owned three accounting and financial services firms in Orland Park, Ill., misappropriated the money from 2011 to 2017.  Most of the money belonged to elderly clients, including Glick’s mother-in-law and father-in-law and two individuals in nursing homes.  He used some of the stolen funds to pay personal and business expenses, including the purchase of a Mercedes-Benz automobile and payment of his mortgage.

U.S. District Judge Robert W. Gettleman imposed a 151-month prison sentence and ordered Glick to pay $5.2 million in restitution.  Glick, 65, of Chicago, pleaded guilty earlier this year to one count of wire fraud.

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 Bill Hedrick, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The U.S. Securities and Exchange Commission and the Illinois Attorney General’s Office provided valuable assistance.

“Criminal conduct was a pervasive part of Glick’s business,” Assistant U.S. Attorney Jacqueline Stern argued in the government’s sentencing memorandum.  “The victims have been devastated by the loss of their money.” 

Glick owned and operated Financial Management Strategies Inc., Glick Accounting Services Inc., and Glick & Associates Ltd.  The firms purported to provide accounting, tax, investment, and financial services.  During the scheme, Glick furnished forged checks and other phony documents to financial institutions, and he lied to clients about the use and safety of their investments.  He also misappropriated client funds to pay hundreds of thousands of dollars to two business associates, and to make Ponzi-type payments to clients.

CHICAGO — A Michigan man has been sentenced to 45 years in federal prison for violently forcing two children and a young woman to engage in prostitution.

FABRIEAL DELANEY, 32, brought some of his victims to the Chicago area from Michigan to perform sex acts for money.  He used violence, verbal abuse and drug addiction to maintain control over his victims, all of whom were 16 years old or younger when he befriended them and began grooming them for prostitution.

U.S. District Judge Manish S. Shah on Wednesday imposed the 45-year sentence in federal court in Chicago.  Delaney, of Battle Creek, Mich., and formerly of Palatine, Ill., was previously convicted by a jury on eight sex trafficking counts. 

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.  Substantial assistance was provided by the Cook County Sheriff’s Police Department, the Illinois State Police, the Will County State’s Attorney’s Office, the FBI field divisions in Detroit and Kalamazoo, Mich., the Kalamazoo, Mich., Police Department, the Battle Creek, Mich., Police Department, and the Stop-It Program of the Salvation Army Family and Community Services.

“The defendant preyed upon young and vulnerable girls for his own profit,” Assistant U.S. Attorney Rajnath Laud argued in the government’s sentencing memorandum.  “Defendant’s crime is incredibly serious, and warrants a sentence of several decades in prison.”

Evidence at trial revealed that Delaney took photographs of the girls and posted them in online advertisements offering commercial sex.  He rented hotel rooms that were used for encounters with individuals who responded to the advertisements.  Delaney at first took half of the money earned by his victims, but eventually he took all of it.

In July 2011, Delaney transported two minor females and a young woman from Michigan to a hotel in Tinley Park, Ill., to engage in prostitution at what Delaney believed was a bachelor party.  Delaney expected the victims to engage in sexual activity with up to 12 men for $150 to $300 per customer.  Unbeknownst to Delaney, the purported bachelor party was a ruse set up by federal law enforcement that had been investigating his sex trafficking crimes.  Delaney was arrested and has remained in custody ever since.

Some of Delaney’s victims testified at trial about their ordeals.  The adult victim testified that Delaney threatened her by holding a hot iron next to her face.

CHICAGO — Federal authorities today announced criminal charges against several Chicago-area defendants for a variety of alleged tax schemes.  With tax season in full swing, the prosecutions serve as a warning that individual taxpayers are responsible for the contents of their own return.

The criminal prosecutions announced today include charges against two Chicago tax preparers who allegedly assisted clients in obtaining thousands of dollars in fraudulent refunds, as well as charges against individuals accused of knowingly filing false tax returns or willfully failing to file tax returns as required.

In addition to potential criminal penalties, including incarceration, tax evaders remain responsible for all taxes and interest due, as well as civil penalties.  The nation’s tax deadline this year is April 17.

“Tax offenses are neither victimless nor without consequence,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois.  “Taxes are how governments provide essential services.  Our office strives to preserve the integrity of the federal tax system through vigorous criminal enforcement of the internal revenue laws.”

“Federal income tax compliance should be equally shared among all of the roughly 9.5 million Chicagoland residents,” said Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office.  “IRS-CI will continue focusing investigative efforts on individuals who contribute to the tax gap and do not comply with the law.  With the filing deadline approaching, Chicagoans who might be thinking about cheating should think twice or risk the consequences.”

In an indictment returned last month, a federal grand jury charged JOHN OCWIEJA, 49, of Chicago, with six counts of willfully failing to file an income tax return.  Ocwieja allegedly failed to file individual returns for the calendar years 2011 through 2016.  Ocwieja has pleaded not guilty to the charges.  A status hearing is set for May 9, 2018, before U.S. Magistrate Judge M. David Weisman.  The government in Ocwieja’s case is represented by Assistant U.S. Attorney Andrianna Kastanek.

In another tax prosecution, professional tax preparer ANNA PLATOS, 58, of Hickory Hills, is charged with 19 counts of preparing and filing false and fraudulent income tax returns, and one count of obstructing the IRS.  Platos, who owned Chicago-based Midway Accounting, filed the returns on behalf of numerous individuals for the tax years 2011 and 2012, according to the indictment.  The returns claimed false tax deductions for car and truck expenditures, medical expenses, charitable gifts, and educational expenses, the indictment states.  Platos has pleaded not guilty to the charges.  A status hearing is set for May 8, 2018, before U.S. District Judge Amy J. St. Eve.  The government in Platos’s case is represented by Assistant U.S. Attorney James P. Durkin.

The other professional tax preparer recently charged is IRVING BROWN SR., 69, of Chicago, who operated Irving Brown Sr. Tax Services.  According to the indictment, Brown understated his own taxable income for the tax years 2011 and 2012, and he filed returns for taxpayers that he knew to contain false business losses.  Brown also allegedly obstructed an IRS audit by fabricating documents and causing a taxpayer to submit them to the IRS.  He is charged with two counts of subscribing a false tax return, twelve counts of aiding and abetting the filing of a false tax return, and one count of interfering with the administration of internal revenue laws.  Brown has pleaded not guilty to the charges.  A status hearing is set for May 9, 2018, before U.S. District Judge Robert W. Gettleman.  The government in Brown’s case is represented by Assistant U.S. Attorney Andrew Erskine.

The U.S. Attorney’s Office also recently charged TARA D. SMITH, of Charlotte, N.C., with one count of willfully filing a false income tax return on her own behalf.  Smith pleaded guilty to the charge earlier this week.  In a plea agreement, Smith admitted that for the calendar year 2014, she filed a return that falsely claimed her total income was approximately $18,260, when she knew that her total income substantially exceeded that amount.  Smith’s sentencing is set for July 20, 2018, before U.S. District Judge Sara L. Ellis.  The government in Smith’s case is represented by Assistant U.S. Attorney Erika L. Csicsila.  The City of Chicago Inspector General’s Office assisted in the Smith investigation.

A criminal information filed this month charges MICHAEL CIELAK, 54, of Chicago, with filing false tax returns.  The charges allege that Cielak operated a business that generated scrap metal, and that he failed to report the income he received from the sale of scrap.  Cielak will be arraigned on April 17, 2018, before U.S. Magistrate Judge Daniel G. Martin.  The government in Cielak’s case is represented by Assistant U.S. Attorney Patrick King.

Earlier this month, the U.S. Attorney’s Office charged BARRY POTICHA, 73, of Northbrook, with scheming to impede the IRS.  According to the charges, Poticha worked as the office manager and bookkeeper for two Chicago-area staffing companies.  From 2000 through 2010, Poticha allegedly prepared and filed fraudulent tax returns to avoid the payment of employment taxes owed by the companies.  Poticha will be arraigned on April 16, 2018, before U.S. District Judge Gary Feinerman.  The government in Poticha’s case is represented by Assistant U.S. Attorney Kathryn E. Malizia.

A federal grand jury earlier this month indicted LATASHA MOSS, 30, of Cicero, with theft of government funds in relation to the theft of federal income tax refunds issued for returns filed in the name of other individuals.  Moss will be arraigned on April 12, 2018, before U.S. Magistrate Judge Jeffrey T. Gilbert.  The government in Moss’s case is represented by Assistant U.S. Attorney Sean K. Driscoll.

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

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 former bookkeeper for two restaurants in the West Loop neighborhood of Chicago was arrested today on a federal fraud charge for allegedly misappropriating more than $600,000 from the eateries.

RENEE M. JOHNSON worked as a bookkeeper for One Off Hospitality LLC, which owns several bars and restaurants in Chicago, including the West Loop eateries Blackbird and Avec.  Johnson was a signatory on One Off’s bank accounts, and her duties included processing checks to vendors who provided food, labor and utilities to the restaurants.  According to a federal criminal complaint, Johnson wrote hundreds of unauthorized checks from One Off’s accounts to pay for her personal expenses, including credit card debt and mortgages on real estate holdings in Chicago.  From 2011 to 2017, the scheme caused a loss of approximately $604,113, mostly sustained by Blackbird and Avec, the complaint states.

Johnson, 60, of Chicago, was charged with one count of mail fraud.  She was taken into custody this morning and is scheduled to make an initial court appearance at 3:00 p.m. today before U.S. Magistrate Judge Sheila M. Finnegan.

The complaint 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.

According to the complaint, Johnson made fraudulent entries in One Off’s accounting system to hide the theft.  She often made a check payable to one of her own personal creditors, but deleted the entry in One Off’s system, the complaint states.  In some instances Johnson cut a check to pay personal expenses, and then quickly cut a new check with the same check number to pay for a legitimate corporate expenditure, according to the complaint.

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

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

The government is represented by Assistant U.S. Attorney Sunil R. Harjani.

CHICAGO — The U.S. Attorney’s Office today charged three individuals with federal drug offenses for allegedly conspiring to sell synthetic cannabinoids at a Chicago convenience store.

FOUAD MASOUD, JAMIL ABDELRAHMAN JAD ALLAH, and ADIL KHAN MOHAMMED conspired to sell the synthetic cannabinoids, known as “K2,” at King Mini Mart in the North Lawndale neighborhood of Chicago, according to a criminal complaint and affidavit filed in federal court in Chicago.  Multiple people recently experienced adverse symptoms, including unusual bleeding, after using synthetic cannabinoids obtained from the store, the complaint states.  Some of these individuals recently sought treatment in Chicago-area emergency rooms, the complaint states.

The three defendants were arrested Sunday.  The complaint charges Masoud, 48, of Justice, Jad Allah, 44, of Justice, and Mohammed, 44, of Chicago, with conspiracy to knowingly and intentionally possess with intent to distribute, and to distribute, a controlled substance.  Masoud made an initial court appearance today before U.S. Magistrate Judge Daniel G. Martin.  Judge Martin ordered him to remain in federal custody until a detention hearing on Thursday at 1:00 p.m.  Initial court appearances for Jad Allah and Mohammed are set for Tuesday at 11:00 a.m. before Judge Martin.

The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Eddie Johnson, Superintendent of the Chicago Police Department.  The Illinois State Police and the Illinois Department of Public Health provided assistance.

According to the charges, the three defendants worked at King Mini Mart, located in the 1300 block of South Kedzie Avenue in Chicago.  Last week, undercover law enforcement officers purchased K2 from Jad Allah and Mohammed inside the store, the complaint states.  The synthetic cannabinoids were packaged in sealed containers and labeled with such names as “Matrix,” “Blue Giant,” and “Crazy Monkey,” according to the charges.  Preliminary testing of some of the cannabinoids purchased by the undercover officer revealed a detectable amount of brodifacoum, a toxic substance frequently used in rat poison, the complaint states.  

The public is reminded that a complaint 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.  The drug conspiracy charge carries a maximum sentence of 20 years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

Assistant U.S. Attorney Matthew Hernandez is representing the government.

CHICAGO — A federal grand jury has indicted three men on robbery and weapons offenses for allegedly stealing expensive watches and jewelry at gunpoint from a Hinsdale store.

The robbers brandished firearms during the heist at Razny Jewelers, 37 S. Washington St., in the western suburb, on March 17, 2017, according to the indictment.  They took more than $200,000 in merchandise, including watches by luxury brands Frederique Constant, Patek Phillipe, and Tudor, the indictment states.  They allegedly sold or disposed of some of the stolen items in the Chicago area and Atlanta, Ga.

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges TOBIAS DIGGS, 24, of Chicago, MARVON HAMBERLIN, 39, of Chicago, and JOSHUA MCCLELLAN, 29, of Oak Lawn, with robbery and robbery conspiracy; transportation of stolen goods; and using, carrying, and brandishing firearms during a crime of violence.

The charges were 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 Hinsdale Police Department and Oak Lawn Police Department provided valuable assistance.

According to the charges, the defendants conducted surveillance of the store in advance of the robbery.  They brought hoods, masks and other items to the store to conceal their identities, the indictment states.  The robbers used actual and threatened force against store employees to take the watches and jewelry, before escaping in a Lexus sport-utility vehicle.

McClellan was arrested Friday, and he pleaded not guilty at a Friday afternoon arraignment before U.S. Magistrate Judge Sidney I. Schenkier.  A detention hearing is set for Tuesday at 11:45 a.m. before Judge Schenkier.

Diggs is currently in state custody in DuPage County.  His arraignment on the federal charges has not yet been scheduled.

Hamberlin is not in custody, and a warrant has been issued for his arrest.

The charge of using and brandishing a firearm carries a maximum sentence of life in prison.  The conspiracy and robbery counts each carry maximum sentences of 20 years in prison.  Transportation of stolen goods is punishable by up to ten years.

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

The government is represented by Assistant U.S. Attorneys Albert Berry III and Lindsay Jenkins.

CHICAGO — A Russian citizen was sentenced today to 18 months in federal prison for attempting to illegally export from the United States more than $100,000 in firearm parts, ammunition and accessories, including parts designed for assault rifles.

KONSTANTIN CHEKHOVSKOI was apprehended by Homeland Security Investigations (HSI) Special Agents at O’Hare International Airport in Chicago on April 26, 2017, as he attempted to board a flight for Stockholm, Sweden.  In Chekhovskoi’s eleven checked bags were the firearm parts, ammunition and accessories, including bullets, rifle magazines, triggers, stocks, muzzle brakes and scopes, many of which were designed for assault rifles such as AK-47s and M4s.  Chekhovskoi lacked the required license for the export-controlled items.

Chekhovskoi, 44, of St. Petersburg, Russia, pleaded guilty last year to one count of attempting to fraudulently and knowingly export firearm parts.  U.S. District Judge Sara L. Ellis imposed the 18-month prison term and fined Chekhovskoi $100,000.

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 Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

CHICAGO — Six defendants, including two brothers-in-law and a man and his nephew, are facing criminal charges as part of a federal investigation into drug and gun trafficking in Chicago’s western suburbs.

The investigation centered on drug sales in Maywood, Bellwood and Hillside, and resulted in the seizure of approximately 700 grams of heroin, some of which tested positive for fentanyl, and more than $15,000 in narcotics proceeds.  Authorities also seized four military-style assault rifles, three handguns and several hundred rounds of ammunition that one of the defendants allegedly sold to an individual who was cooperating with law enforcement.

The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies.  The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug and weapons trafficking organizations.

Criminal complaints and affidavits filed in federal court in Chicago charge four defendants with conspiracy to possess a controlled substance with intent to deliver; one defendant with distribution of a controlled substance; and one defendant with illegal possession of a firearm by a felon.  Several of the defendants were arrested Tuesday.  Detention hearings will be held on Thursday and Friday before U.S. Magistrate Judge Sidney I. Schenkier.

The charges 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.  Substantial assistance was provided by the Cook County Sheriff’s Police Department, Maywood Police Department, Chicago Police Department, Illinois State Police, and Johnsburg Police Department.

According to the charges, WINDELL REEDY, 43, of Hillside, operated a drug trafficking organization in the western suburbs.  A source cooperating with law enforcement purchased various quantities of heroin from Windell Reedy on multiple occasions, the complaint states.

Windell Reedy allegedly worked with his uncle, DANNY REEDY, 56, of Bloomingdale, to purchase and obtain wholesale quantities of heroin in the Chicago area and transport it to Memphis, Tenn.  RONALD SCALES, 53, of Hillside, and his brother-in-law, HOWARD BAKER, 58, of Hillside, worked with the Reedys to distribute the heroin, including to the individual in Tennessee, the charges allege.  The complaint accuses DARYL KIMBROUGH, 48, of Bellwood, of performing quality tests on the heroin obtained by the Reedys, and distributing the drug.

The defendant charged with illegal gun possession is KENNETH LOGAN, 38, of Maywood.  Logan sold the rifles and handguns to the cooperating source on four occasions in November and December of last year, the complaint states.  The transactions allegedly occurred in Maywood.  Logan is a convicted felon who was not legally allowed to possess a firearm.

The public is reminded that a complaint 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.

The conspiracy charge against Danny Reedy, Scales, Baker and Kimbrough carries a mandatory minimum sentence of ten years in prison and maximum of life, while the distribution charge against Windell Reedy is punishable by up to 20 years and the firearm charge against Logan by up to ten years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

Assistant U.S. Attorneys James P. Durkin and Philip Fluhr, Jr., are representing the government.

CHICAGO — The U.S. Attorney’s Office will monitor the federal, state and local primary elections in Chicago and surrounding suburbs on March 20, 2018, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced today.

As part of the monitoring effort, the office will operate a telephone hotline for citizens to report complaints related to the voting process.  Assistant U.S. Attorneys and other office personnel will monitor the hotline and respond to complaints as needed.

The hotline number, staffed on Election Day only, is (312) 469-6157.

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations wherever they occur.   The Department’s longstanding Election Day Program seeks to ensure public confidence in the voting process.

Federal voting-rights laws protect the rights of voters to mark their own ballot or be assisted by a person of their choice.  Actions designed to interrupt or intimidate voters at polling places may constitute a violation.  Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  Violations carry penalties ranging from one to ten years in prison and fines of up to $250,000.

For information as to the location and hours of polling sites, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.

CHICAGO — A north suburban trader has been charged with fraud for allegedly misappropriating at least $750,000 from investors.

RICHARD D. CARTER, 49, of Mundelein, was charged in a federal criminal complaint with one count of wire fraud.  He was arrested Tuesday and made an initial court appearance that day before U.S. Magistrate Judge Maria Valdez.  Judge Valdez ordered him released on a $50,000 unsecured bond.  The next court date in U.S. District Court in Chicago has not yet been set.

Carter worked as a trader at Blue Guru Trading LLC, a Lincolnshire firm that claimed to specialize in trading futures contracts.  According to the charges, Carter advised existing and potential clients that his firm’s proprietary trading model was profitable, and he furnished account statements and other documentation that purportedly showed significant returns on investments.  In reality, Carter had falsified the documents to conceal the fact that he misappropriated much of the money, according to the complaint.

The complaint 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 Commodity Futures Trading Commission, which earlier this year filed a civil enforcement lawsuit against Carter, provided assistance.

According to the complaint, the fraud scheme began in June 2016 and continued to January of this year.  Carter allegedly told clients their investments would be traded through a clearinghouse called Straits Financial, and he sent some of them Straits Financial account statements showing that Carter’s firm held a balance of more than $6.1 million.  Carter had actually created the statements himself, knowing that Blue Guru held only $9,000 in investor funds, the complaint states.

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

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

The government is represented by Assistant U.S. Attorney Matthew S. Ebert.

CHICAGO — More than ten defendants are facing federal drug charges for allegedly trafficking fentanyl, heroin and cocaine on Chicago’s South Side.

The investigation, dubbed “Operation Box Car Willie,” centered on drug sales in the city’s Woodlawn neighborhood and resulted in the seizure of distribution quantities of fentanyl, heroin and crack cocaine.  The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies.  The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking organizations.

A criminal complaint and affidavit filed Tuesday in federal court in Chicago charges ten defendants with conspiracy to possess controlled substances with intent to deliver.  One other defendant is charged individually with possessing controlled substances with intent to deliver, bringing the total number of defendants to eleven.

Several of the defendants were arrested Wednesday.  Detention hearings will be held next week before U.S. Magistrate Judge Maria Valdez.

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; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Eddie Johnson, Superintendent of the Chicago Police Department; Leo P. Schmitz, Director of the Illinois State Police; and Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by the Illinois Secretary of State Police Department and the Illinois Department of Corrections.

According to the charges, JONATHAN MASON, 42, of Chicago, operated a drug trafficking organization in the 6400 block of South Champlain Avenue in Chicago.  Mason conspired with DEON PUGH, 37, of Chicago, and KEVIN TWYMAN, 35, of Chicago, as well as others, to obtain wholesale quantities of cocaine, fentanyl, heroin and marijuana for distribution in the Chicago area, the complaint states.  The other charged conspirators who allegedly distributed the narcotics include DERRICK WILTZ, 44; EDUARDO ANDERSON, 51; DENNIS MYERS, 59; RYAN PEARSON, 40; ALVIN WILLIAMS, 48; PARIS OBRYANT, 37; and MARTELL WHITE, 31; all of Chicago.

The conspirators allegedly sold drugs inside two stores in the Woodlawn neighborhood – one on East 63rd Street and the other on East 67th Street.  On two occasions last month, undercover law enforcement officers purchased cocaine and heroin from Pearson and Obryant inside the 63rd Street store, the complaint states.

The defendant charged individually with possession is WILLIAM RUTLEDGE, 34, of Cedar Rapids, Iowa.  Rutledge is identified in the complaint as a customer of Mason and Pugh who allegedly purchased more than 100 grams of crack cocaine from the pair last month.

The public is reminded that a complaint 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.

The conspiracy charge carries a maximum sentence of life in prison, while the possession charge against Rutledge is punishable by up to 20 years.  If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory United States Sentencing Guidelines.

Assistant U.S. Attorneys Matthew Kutcher and Kristen Viglione are representing the government.

CHICAGO — A former Chicago-based partner in a global consulting firm has been sentenced to two years in federal prison for scheming with a client to bilk their companies out of hundreds of thousands of dollars in purported consulting work that was never performed.

NAVDEEP ARORA, a former partner in the Chicago office of McKinsey & Company Inc., plotted with a former internal consultant at State Farm Mutual Automobile Insurance Co. to defraud both companies out of phony consulting fees.  Arora also fraudulently obtained money from McKinsey, State Farm and other McKinsey clients in the form of purported work-related travel reimbursements for expenses that were actually incurred on Arora’s personal trips.  Arora falsely expensed personal trips to Scottsdale, Ariz.; Vail, Colo.; Las Vegas, Nev.; London, England; Prague, Czech Republic; Munich, Germany; and elsewhere.  He took the State Farm employee, MATTHEW SORENSEN, on two personal vacations – to Napa, Calif. and New York, N.Y. – and expensed them to State Farm as business expenses.  The costs included flights, hotels, meals, car services and other items. 

Arora, 53, of London, England, and formerly of Chicago, was arrested in 2016 at JFK International Airport in New York after arriving on an overseas flight.  He pleaded guilty last year to one count of wire fraud.  U.S. District Judge Ronald A. Guzman imposed the sentence Wednesday in federal court in Chicago.

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

Arora and Sorensen “concocted a fraudulent scheme to benefit themselves during their employment,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum.  “The defendants’ actions have caused both companies to undertake time and expense uncovering this fraud, destroyed a longstanding relationship between these two companies, and caused reputational harm.”

Sorensen, of Bloomington, Ill., also pleaded guilty to a wire fraud charge.  Judge Guzman in September 2017 sentenced Sorensen to one year and one day in prison.

Arora and Sorensen had a longstanding business relationship through Arora’s work overseeing the consulting services McKinsey provided to State Farm.  At State Farm, Sorensen provided input and recommendations about whether to hire outside consultants for company projects and who to retain. 

According to the charges, their fraud scheme began in 2007.  Arora and Sorensen used two corporate entities – “Gabriel Solutions” and “Andy’s BCB” – to defraud their employers out of the phony fees.  Sorensen billed McKinsey for the bogus work purportedly performed by the companies, while Arora allocated the fees to the State Farm projects to which he was assigned.  As a result, McKinsey and State Farm paid $38,265 for consulting services purportedly performed by “Andy’s BCB,” and $452,710 in fees billed by “Gabriel Solutions.” 

Sorensen pocketed a large majority of the money, while Arora received a substantial salary and benefits from McKinsey for maintaining its business relationship with State Farm.

CHICAGO — A south suburban man has been charged with federal drug offenses for allegedly conspiring to import a fentanyl analogue from China into the Chicago area.

In the fall of last year, SANCHEZ LACKLAND, 35, of Hazel Crest, imported methoxyacetyl fentanyl from China, according to an indictment returned Wednesday in federal court in Chicago.  Lackland and others had the substances shipped through the U.S. mail to approximately 19 Chicago-area addresses, according to the indictment and a criminal complaint previously filed in the case.  In December, law enforcement agents executed a search warrant at Lackland’s home and seized quantities of heroin, methoxyacetyl fentanyl and acryl fentanyl, as well as a loaded revolver and approximately $300,000 in cash, the complaint states.

The indictment charges Lackland with drug and firearm offenses.  Lackland is a convicted felon who is not legally allowed to possess firearms.

The indictment 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; Brian McKnight, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Bill Hedrick, Acting Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The government is represented by Assistant U.S. Attorney Andrew C. Erskine.

The indictment also charges JERMOL MIXON, 35, of Orland Park, with drug and weapons offenses.  On Dec. 12, 2017, law enforcement agents followed Lackland as he delivered a package to Mixon’s home, according to the complaint.  A subsequent court-authorized search of Mixon’s home uncovered quantities of heroin, methoxyacetyl fentanyl, acryl fentanyl, $10,000 in cash and materials used to manufacture drugs, the complaint states. 

During the search of Mixon’s home, agents encountered him in an upstairs room within arm’s reach of a loaded handgun, the complaint states.  Mixon is a convicted felon who cannot legally possess firearms.

Arraignments for both defendants are set for March 14, 2018, at 11:00 a.m., before U.S. Magistrate Judge Young B. Kim.

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

CHICAGO — The owner of a north suburban home health care company has been sentenced to 18 months in federal prison for paying illegal kickbacks for patient referrals.

As the owner of Glenview-based TLC Healthcare Services of Illinois Inc., NORMA DE LA CRUZ paid recruiters $500 to $600 for each Medicare patient referred to her company.  TLC then billed Medicare for home health services purportedly provided to the patients.  De la Cruz attempted to conceal the payments by using sham contracts that claimed the recruiters provided “marketing” services.  From 2012 to 2014, TLC fraudulently caused Medicare to pay out more than $390,000.

De la Cruz, 81, of Glenview, pleaded guilty last year to one count of conspiracy to offer and pay unlawful kickbacks.  U.S. District Judge Rebecca R. Pallmeyer imposed the 18-month prison sentence Monday in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.

The government is represented by Trial Attorney Leslie S. Garthwaite of the Justice Department’s Criminal Division Fraud Section and First Assistant U.S. Attorney Joel R. Levin of the Northern District of Illinois.

De la Cruz, who was also a registered nurse at the time of the scheme, controlled bank accounts in TLC’s name as well as an account she held personally, both of which were used to pay bribes and kickbacks.  She admitted in a plea agreement that she sought recruiters who would refer patients to TLC in exchange for a per-patient referral fee.  De la Cruz paid one recruiter at least $65,000 in exchange for his patient referrals.

The government argued in its sentencing memorandum that de la Cruz used much of the proceeds from the conspiracy to gamble at a Chicago-area casino.  During the approximate period of the conspiracy, de la Cruz incurred gambling losses of $245,000.  The government also noted in its sentencing memorandum that de la Cruz had an additional $76,000 in gambling losses in the period from her initial court appearance in this case in June 2016 until her guilty plea in October 2017.

CHICAGO — A federal jury in Chicago has convicted two U.S. Postal Service employees for scheming to deliver marijuana through the mail.

MARVIN JONES and ANGELA WANSLEY worked at the Tinley Park Post Office.  Over a five-month period in 2016, the pair intercepted parcels of marijuana and other controlled substances that had been mailed to the post office by a co-defendant, JAYSON SMITH.  Jones and Wansley then furnished the intercepted parcels to Smith or a fourth defendant, COURTNEY POINDEXTER, in exchange for cash.

After a four-day trial in federal court in Chicago, the jury on Thursday convicted Jones, 51, of Hazel Crest, and Wansley, 44, of Harvey, of accepting bribes to perform official postal duties, conspiring to commit obstruction of correspondence, and obstruction of correspondence.  The bribery charge is punishable by up to 15 years in prison, while the conspiracy and obstruction charges are punishable by up to five years.  U.S. District Judge Robert W. Gettleman will set sentencing hearings at a later date.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Scott Caspall, Special Agent-in-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The government is represented by Special Assistant U.S. Attorney William Novak and Assistant U.S. Attorney Peter Flanagan.

According to evidence at trial, Jones was a letter carrier and supervisor while Wansley worked as a sales associate.  Jones provided Smith with information about unoccupied P.O. boxes and customers who had placed mail-hold requests at the Tinley Park Post Office.  Smith then mailed or caused to be mailed the parcels of controlled substances, and he provided Jones with the tracking information so that Jones or Wansley could intercept them.

Smith, 34, of Country Club Hills, and Poindexter, 38, of Country Club Hills, pleaded guilty prior to trial.  They are awaiting sentencing before Judge Gettleman.

CHICAGO — Six former employees of a non-profit Chicago post-secondary education institute schemed to enroll fake students in classes as part of a conspiracy to swindle federal financial aid programs out of millions of dollars, according to an indictment returned in federal court in Chicago.

The six defendants were employed at the Chicago campus of the Center for Employment Training, a California-based institution of post-secondary, non-degree, vocational and technical education with campuses throughout the country.  From 2005 to 2013, the defendants applied for and obtained federal grants and loans for students who were ineligible to receive the funds, the indictment states.  One of the purported students was marked present at CET classes even though the student was deceased at the time, the indictment states.

The scheme caused the U.S. Department of Education to disburse to CET millions of dollars in fraudulent financial aid, the indictment states.

The indictment was returned Thursday.  It charges the defendants with one count of conspiracy to fraudulently obtain federal financial assistance, one count of fraudulently obtaining federal financial assistance, and three counts of wire fraud.  The defendants are MARIE PICKETT, 59, of Chicago; JANIE BLAKENEY, 63, of Chicago; DEBORAH WILLIAMS, 58, of Chicago; JENNY MORALES, 36, of Cicero; HEATHER SMITH, 43, of Cicero; and TAMAURA BALARK, 45, of Chicago.  Arraignments in federal court in Chicago have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Thomas D. Utz, Jr., Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General’s Midwestern Regional Office.  The government is represented by Assistant U.S. Attorney John Mitchell.

According to the charges, Pickett served as the Director of CET’s Chicago campus; Blakeney was the Admissions Advisor; Williams and Morales were Financial Aid Officers; and Smith and Balark were instructors in the Medical Assistance Program.  As part of the conspiracy, some of the defendants created and furnished to the Department of Education phony Free Application for Federal Student Aid (FAFSA) applications on behalf of purported students who were not eligible to receive financial aid because they had not graduated from high school or received an equivalency certificate, the charges state.  For one purported student, the conspirators created a fictitious diploma that fraudulently alleged the student had graduated from a Chicago public high school, the indictment states.  The fictitious diploma was then placed in the student’s CET file in an effort to meet the Department of Education’s requirements for financial aid, according to the indictment.

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

Each count of wire fraud is punishable by up to 20 years in prison, while the financial assistance fraud counts carry a maximum sentence of five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

CHICAGO — A federal grand jury has indicted two teenagers on carjacking and weapons offenses for allegedly taking a sport-utility vehicle at gunpoint in Chicago’s Goose Island neighborhood.

JASON DORTCH, 19, and DAVONTAE JONES, 18, brandished firearms while forcibly taking a Jeep Grand Cherokee on Nov. 13, 2017, according to an indictment returned Thursday in U.S. District Court in Chicago.  Dortch is a convicted felon who was not legally allowed to possess the firearm, the indictment states.

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; Kimberly M. Foxx, Cook County State’s Attorney; and Eddie Johnson, Superintendent of the Chicago Police Department.

The case was investigated by the Chicago 11th District Violent Crimes Task Force, which consists of agents and officers from the FBI, Chicago Police, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Additionally, the Cook County Sheriff’s Office, Oak Park Police Department and Illinois State Police assisted in the apprehension of the defendants.

“Our office will use every available federal resource to vigorously pursue and prosecute violent carjackers,” said U.S. Attorney Lausch.  “We are committed to working with our state and local law enforcement partners to aggressively fight violent crime and protect Chicago’s neighborhoods from gun offenders.”

“The FBI views carjackings as a particularly violent and heinous crime,” said FBI SAC Sallet.  “We are proud to work side by side with the U.S. Attorney’s Office, the Cook County State’s Attorney’s Office, Chicago Police Department, Cook County Sheriff’s Office, Oak Park Police Department, Illinois State Police, and our federal law enforcement partners, to bring these individuals to justice.  Anyone who commits a crime like this should know, we are coming for you.”

The indictment charges Dortch and Jones with one count of carjacking and one count of using and brandishing a firearm during a crime of violence.  Dortch is also charged with one count of illegal possession of a firearm by a felon.  The using and brandishing charge carries a maximum sentence of life in prison, the carjacking charge is punishable by up to 15 years, and the felon-in-possession charge is punishable by up ten years.

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

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

The government is represented by Assistant U.S. Attorney Jeannice Appenteng and Special Assistant U.S. Attorney Marny Zimmer.

CHICAGO — A federal jury today convicted a Naperville man on sex trafficking charges for violently forcing women to engage in prostitution between 2007 and 2016.

BENJAMIN BIANCOFIORI, 38, used the promise of financial security to entice women into performing commercial sex acts on his behalf.  Biancofiori often beat and punched the women, and he kept almost all of the proceeds they earned through prostitution.  On one occasion, Biancofiori arranged for a victim to be returned to him at gunpoint after she tried to run away.  He ran his sex-trafficking operation primarily out of his residences in the western suburbs of Chicago.

The jury convicted Biancofiori on 14 of the 15 counts against him, including conspiracy to engage in sex trafficking by force, threats of force, fraud, or coercion; engaging in sex trafficking by force, threats of force, fraud, or coercion; and obstructing, attempting to obstruct, or interfering with the enforcement of the sex trafficking statute. 

Biancofiori has remained in federal custody since his arrest in May 2016.  The conviction carries a minimum sentence of 15 years in prison and a maximum sentence of life in prison.  U.S. District Judge Harry D. Leinenweber set sentencing for May 30, 2018, at 9:45 a.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 FBI; and Gabriel L. Grchan, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  Substantial assistance was provided by the U.S. Attorney’s Office for the District of Colorado, the Denver office of the FBI, the Carol Stream Police Department and the Naperville Police Department.  The government is represented by Assistant U.S. Attorneys Abigail Peluso and Erika Csicsila.

According to evidence at trial, Biancofiori lied to his victims to entice them to work for him and posted their information in commercial sex advertisements online, including the websites Backpage.com and Craigslist.com.  Biancofiori also recruited multiple victims through social media.  He arranged for the women to travel to meet clients at various locations throughout the United States, including in the Chicago area. 

Five of the victims testified at trial about their ordeals.

Two co-defendants of Biancofiori pleaded guilty prior to trial.  MARCUS WILLIS, 39, of Wheaton, and NATHAN PEREZ, 32, of West Chicago, admitted in written plea agreements that they conspired with Biancofiori to engage in sex trafficking.  Judge Leinenweber will set sentencing hearings for Willis and Perez at a later date.

CHICAGO — A federal jury today convicted an Illinois attorney of fraudulently obtaining loans related to the purchase, maintenance and sale of properties on Chicago’s South Side.

JESSICA ARONG O’BRIEN fraudulently caused lenders to issue and refinance approximately $1.4 million in mortgage and commercial loans by making false representations and concealing material facts in documents submitted to the lenders.  O’Brien used the fraudulently obtained mortgage loan proceeds to purchase an investment property in the 600 block of West 46th Street in Chicago.  She fraudulently refinanced the mortgage on the property, as well as on a second investment property in the 800 block of West 54th Street in Chicago.  O’Brien then fraudulently obtained a commercial line of credit to maintain the properties, before selling them to a loan officer – co-defendant MARIA BARTKO – and a straw buyer whom O’Brien knew would fraudulently obtain mortgage loans.

The jury convicted O’Brien, 50, of Chicago, on both counts against her, including one count of mail fraud affecting a financial institution, and one count of bank fraud.  Each count is punishable by a maximum sentence of 30 years in prison.  U.S. District Judge Thomas M. Durkin set sentencing for July 6, 2018. 

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 Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Matthew F. Madden and Tyler C. Murray.

Evidence at trial revealed that O’Brien carried out the fraud scheme from 2004 to 2007.  At the time, O’Brien was employed as a Special Assistant Attorney General for the Illinois Department of Revenue, while also owning a real estate company, O’Brien Realty LLC, and working part time as a loan officer for Amronbanc Mortgage Corp. in Lincolnwood.  At the time, Bartko was employed at Amronbanc as a loan officer.

Bartko, of Chicago, pleaded guilty before trial to one count of mail fraud affecting a financial institution.  Judge Durkin will schedule Bartko’s sentencing hearing at a later date.

CHICAGO — In the first criminal prosecution in Chicago involving the cryptocurrency trading industry, a Chicago trader was charged today with fraud for allegedly misappropriating $2 million in Bitcoin and Litecoin.

JOSEPH KIM, 24, of Chicago, was charged in a federal criminal complaint with one count of wire fraud.  He is scheduled to make an initial court appearance on Feb. 16, 2018, at 10:30 a.m., before U.S. Magistrate Judge Daniel G. Martin in Courtroom 1743 of the Dirksen Federal Building in Chicago.

Kim worked as an assistant trader for Consolidated Trading LLC, a Chicago trading firm that recently formed a cryptocurrency group to engage in cryptocurrency trading, the complaint states.  Over a two-month period in the fall of last year, Kim misappropriated at least $2 million of the firm’s Bitcoin and Litecoin cryptocurrency for his own personal benefit, and he made false statements and representations to the company’s management in order to conceal the theft, according to the complaint.

The complaint 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. 

According to the complaint, from September through November 2017, Kim transferred more than $2 million of the trading firm’s Bitcoin and Litecoin to personal accounts to cover his own trading losses, which had been incurred while trading cryptocurrency futures on foreign exchanges.  In order to conceal the transfers, Kim lied to the firm’s management about the location of the company’s cryptocurrency and his trading of the company’s cryptocurrency, the complaint states.  Consolidated’s management team discovered the misappropriation in late November, the complaint states.

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

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

The government is represented by Assistant U.S. Attorneys Sunil Harjani and Sheri Mecklenburg.

ROCKFORD — A Rockford man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for possessing cocaine with the intent to distribute it and possessing a firearm as a convicted felon on April 8, 2016. 

RYAN A. PANCYRZ, 29, was sentenced to 12 years and seven months in federal prison, to be followed by three years of supervised release.  Pancyrz pleaded guilty to the charge on Nov. 6, 2017.

According to the written plea agreement, on April 8, 2016, Pancyrz, a convicted felon, possessed a loaded .32-caliber revolver and 49 plastic baggies of cocaine at a residence on South Fifth Street in Rockford.  In the plea agreement, he admitted that he intended to sell the cocaine.  He further admitted that he possessed other items associated with drug distribution, including a digital scale, two bottles of Inositol, a vitamin supplement used to dilute controlled substances, and $666 in cash.  Pancyrz was arrested by Winnebago County Sheriff’s Office deputies at the residence on South Fifth Street on April 8, 2016, and has remained in custody since his arrest. 

The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Joseph Bruscato, Winnebago County State’s Attorney; and Gary Caruana, Winnebago County Sheriff.

The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.

CHICAGO — A Chicago restaurateur was charged today with misappropriating funds and swindling investors in his West Loop eatery.

ATTILA GYULAI, who together with a relative owned a majority stake in Embeya restaurant, used company funds to pay personal expenses and illegally pocketed cash from investors, according to a criminal complaint and affidavit filed today in U.S. District Court in Chicago.  From approximately 2011 to 2016, Gyulai misappropriated at least $300,000, to the detriment of co-owners and investors, the complaint states. 

Embeya, which was located in the 500 block of West Randolph Street in Chicago, closed in 2016. 

The complaint charges Gyulai, 45, most recently of Chicago, with wire fraud.  In addition to the complaint, the Court today also authorized a warrant for Gyulai’s arrest.

The complaint 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.

In order to open the restaurant and obtain a bank loan, Gyulai represented to shareholders that he and his relative had invested $140,000 of their own funds, the complaint states.  Gyulai had in fact borrowed those funds from family and friends, and in 2013, he used company funds to pay them back, while concealing the payments from other shareholders, the complaint states.  The following year, Gyulai made payments to himself and his relative totaling approximately $140,000 as a purported return of their initial capital, even though they had not invested their own money in the restaurant, the complaint states.  Gyulai had thus paid himself and his relative double the purported initial investment amount, to the detriment of other shareholders, according to the complaint.  He also used company funds for personal stock trading during the operation of the restaurant, the complaint states.

Not long before Embeya closed, Gyulai wired $103,750 from the restaurant’s corporate account to an account held overseas, the complaint states.  The money represented a substantial amount of funds remaining in Embeya’s account at the time, the complaint states.  Gyulai left the United States soon after transferring the funds.

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

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

The government is represented by Assistant U.S. Attorney Sunil Harjani.

CHICAGO — A federal indictment unsealed this week charges 34 alleged members of the Latin Kings street gang with participating in a criminal organization that murdered its rivals and violently protected its drug-dealing territories in Chicago and the suburbs.

Authorities uncovered the criminal activity through an investigation conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).  During the course of the probe, law enforcement agents confiscated 18 firearms.

Original charges in the case were filed in 2016 against 20 alleged members of the Latin Kings.  The superseding indictment unsealed this week adds 14 more defendants and charges numerous acts of violence, including six murders, three attempted murders, and three arsons.  Thirty three of the defendants are charged with racketeering conspiracy, while the 34th defendant faces a firearm charge.

The superseding 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 T. Johnson, Superintendent of the Chicago Police Department.  Substantial investigative assistance was provided by the Cook County Sheriff's Police Department and Hammond (Ind.) Police Department.  The FBI Task Force investigating the case was comprised of agents and task force officers from the Joliet Police Department, Evergreen Park Police Department, Bolingbrook Police Department, Orland Park Police Department, Cook County Sheriff's Police Department, Will County Sheriff’s Office, and the Internal Revenue Service Criminal Investigation Division.  Additional support was provided by the Merrillville (Ind.) FBI office, and the U.S. Attorney’s Office for the Northern District of Indiana.

The superseding indictment was returned on Feb. 1, 2018, and ordered unsealed this week.  Several of the new defendants were arrested this week, and arraignments for most of the defendants have been held in federal court in Chicago.

The superseding indictment alleges that members of the Latin Kings violently enforced discipline within their ranks and retaliated against rivals and former members to prevent cooperation with law enforcement.  The charges accuse nine defendants of committing six murders in furtherance of the gang’s activities:

ALONZO HORTA, 20, of Hammond, Ind., and GEOVANNI LOPEZ, 28, of Oak Forest, allegedly murdered Alfonso Calderon on April 9, 2017, in Chicago.

DEAN TREVINO, 25, of Chicago, and EMANUEL MENDEZ, 29, of Hammond, Ind., allegedly murdered Ismael Perez on Nov. 3, 2012, in Chicago.

GERONIA FORD, 23, of Chicago, and WILLIAM HAYSLETTE, 24, of Chicago, allegedly murdered Sergio Hernandez on May 15, 2012, in Chicago.

JUAN JIMENEZ, 35, of Blue Island, allegedly murdered Isiah Cintron on Jan. 18, 2007, in Hammond, Ind.  

THOMAS LUCZAK, 44, of Chicago, allegedly murdered Juan Serratos on June 11, 2000, in Chicago.

JOSE JARAMILLO, 35, of Hammond, Ind., allegedly murdered Jeremy Ward on Nov. 15, 1999, in Chicago.

Mendez and two other defendants – ORLANDO MARIN, 29, of Chicago, and ROY VEGA, 35, of Chicago – are also charged with committing attempted murders.

The defendants participated in the Southeast Region of the Latin Kings, which contains more than a dozen chapters answering to a regional structure of leadership, according to the indictment.  Each chapter is typically named after the city in which it operates, or by a street or streets that run through the chapter.  Among the Chicago chapters in the Southeast Region are 82nd Street, 88th and 89th Streets, 97th Street, 99th Street, 102nd Street, 104th Street, and the Roseland neighborhood.  Other regional chapters operated in the south suburbs of Blue Island, Dolton, Harvey and Chicago Heights, as well as in Kankakee and communities across the border in Indiana, according to the indictment.

 The indictment charges defendants who serve in various high-ranking positions of the Latin Kings.  These positions include “Regional Enforcers,” who violently instill discipline within the ranks; “Incas,” who serve as chapter leaders; “Caciques,” who are second in command behind the Incas; “Soldiers,” who often carry dangerous weapons to carry out the gang’s activities; and “Regional Treasurer,” who collects dues from Latin King chapters to finance the gang’s activities. 

Several firearm offenses are also charged in the indictment, including unlawful possession of guns, assault with a dangerous weapon, illegal dealing of guns, and multiple counts of witness intimidation.

The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies.  The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.

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.

Racketeering conspiracy generally carries a maximum sentence of 20 years in prison, but a life sentence is possible for certain underlying racketeering activities, including certain murders charged in the indictment.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

Assistant U.S. Attorneys Brian Wallach, Derek Owens and Vikas Didwania are representing the government.

CHICAGO — The United States Attorney’s Office for the Northern District of Illinois collected nearly $75 million in criminal, civil and asset forfeiture actions in Fiscal Year 2017, John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, announced today. 

The 2017 collections included $29.7 million in criminal actions, $28.7 million in civil actions, and $16.07 million in asset forfeiture actions.  The total exceeds $74.5 million and is more than double the office’s Fiscal Year 2017 budget of approximately $29.2 million. 

“Our attorneys and staff work diligently to recover meaningful funds for the federal treasury and victims of federal crimes,” said U.S. Attorney Lausch.  “We have an important responsibility to do everything within our power to ensure that the proceeds of criminal and civil fraud are recovered, and that restitution is made to the victims whenever possible.”

The collections included $234,308 in criminally forfeited proceeds from the tax prosecution of northwest suburban couple Patty and Mario Cordoba, and $315,170 in criminal and administrative forfeitures arising from the south suburban drug prosecution of Emiliano Cruz.

The office in Fiscal Year 2017 restored more than $2 million to victims of federal crimes, including a significant amount to the victims of Chicago accountant Nina Mendez’s fraud scheme. 

The office worked with other U.S. Attorney’s Offices across the country and components of the Department of Justice to collect an additional $218.9 million in criminal and civil cases pursued jointly with those offices.

Nationally, the Department of Justice collected more than $15 billion in civil and criminal actions in Fiscal Year 2017, which ended Sept. 30, 2017.  The largest collections nationally were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct, or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.