Northern District of Illinois

CHICAGO — A federal investigation has resulted in federal drug and firearm charges against eight individuals for allegedly trafficking fentanyl and cocaine on the South Side of Chicago.

An indictment unsealed Friday in federal court in Chicago accuses the eight defendants of conspiring to traffic fentanyl and cocaine from March 2023 to July 2024.  During the conspiracy, the defendants used a residence in the 2000 block of West 69th Place in the Englewood neighborhood of Chicago to carry out their illicit activities, the indictment states.  The defendants possessed loaded handguns while engaged in their drug trafficking crimes, the indictment states.

During the investigation, law enforcement seized distribution quantities of suspected fentanyl-laced heroin and crack cocaine, as well as more than a dozen firearms and associated ammunition.

Charged with federal drug and firearm offenses are PATRICK TUCKER, 33, THOMAS CUNNINGHAM, 29, DARIUS JOHNSON, 23, KYWANTE SHUMAKE, 26, KEONTIS SHUMAKE, 23, KAMARI ROSS, 26, DREQUAN BASS, 26, and LACOLA WILLIAMS, 26, all of Chicago. The charges in the indictment carry a maximum sentence of life in federal prison.  Tucker and Cunningham also face a mandatory minimum sentence of 15 years, while the others face a mandatory minimum of ten years.  The defendants were arraigned in U.S. District Court in Chicago and pleaded not guilty to the charges.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Valuable assistance was provided by the Chicago Police Department.  The government is represented by Assistant U.S. Attorneys Maureen B. McCurry and Michael Maione.

The case is part of an Organized Crime Drug Enforcement Task Forces investigation.  OCDETF identifies, disrupts, and dismantles drug traffickers and other criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement against criminal networks.

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

ROCKFORD — A Rockford man has been sentenced to 35 years in federal prison for sex trafficking.

TRAVIS THOMAS, 34, was convicted in June of sex trafficking, including multiple counts of coercing and transporting the victim across state lines to engage in prostitution.  U.S. District Judge John J. Tharp, Jr. imposed the sentence Friday during a hearing in federal court in Rockford.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Rockford Police Department, Hoffman Estates, Ill. Police Department, and Winnebago County, Ill. Sheriff’s Office assisted in the investigation.  The government was represented by Assistant U.S. Attorneys Vincenza L. Tomlinson and Jessica S. Maveus, and former Assistant U.S. Attorney Monica V. Mallory.

In 2017 and 2018, Thomas targeted the victim, supplied her with crack cocaine that kept her dependent on him, and manipulated her drug addiction to force and coerce her to engage in commercial sex acts for Thomas’s financial benefit. Thomas transported the victim to hotels in Rockford, Wisconsin, and Texas for the purpose of engaging in commercial sex acts.  Thomas also used and threatened physical violence against the victim to force and coerce her to continue to engage in commercial sex.  Thomas then kept all of the proceeds and spent it on himself and others, including a new vehicle, gambling, clothing, and food.

In addition to the commercial sex, Thomas also used fraud and financial coercion to take the victim’s credit cards, file fraudulent tax returns and insurance claims in her name, empty her bank accounts, and sell her belongings.  The victim was finally able to escape in April 2018, with the help of an individual who took the victim to a hospital after she was severely beaten by Thomas.  While at the hospital, a trained nurse identified her as a victim of sex trafficking and called law enforcement.

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

CHICAGO — The owner of a suburban Chicago medical supply company has been sentenced to five years in federal prison for paying kickbacks to a U.S. Department of Veterans Affairs employee in exchange for procuring orders of medical equipment.

DARREN A. SMITH operated a medical distribution company based in Bolingbrook, Ill.  From 2017 to 2020, Smith schemed with a procurement clerk in the Veterans Health Administration Prosthetics Service in Chicago to have the VA order costly medical equipment from Smith’s company in exchange for concealed kickbacks to the clerk.  The orders placed by the clerk involved unnecessary and more expensive rentals of certain medical equipment from Smith’s company instead of purchasing the equipment outright, as VA physicians had instructed.  The VA spent more than $2.7 million at Smith’s company and fraudulently overpaid it by more than $1.3 million.  In exchange, the clerk pocketed kickbacks from Smith of at least $220,000.

A federal jury earlier this year convicted Smith, 60, of Hazel Crest, Ill., on eight counts of wire fraud.  In addition to the prison term, U.S. District Judge Edmond E. Chang on Wednesday fined Smith $10,000 and ordered him to pay more than $1.3 million in restitution.

The VA procurement clerk, ANDREW LEE, of Chicago, pleaded guilty to a wire fraud charge prior to trial.  He is awaiting sentencing.

Smith’s sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office.  The government is represented by Assistant U.S. Attorney Heidi Manschreck and Special Assistant U.S. Attorney Benjamin Christenson.

“Instead of paying for essential equipment and supplies for veterans, the defendants used the VA’s money to line their own pockets,” said Acting U.S. Attorney Pasqual.  “Our office remains committed to preserving the integrity of the VA health care system.”

“This sentence should send a message that corrupt VA employees will be rooted out and prosecuted,” said SAC Billingsley.  “These fraudulent activities erode public trust and divert taxpayer money intended for our nation’s deserving veterans.  The VA OIG thanks the U.S. Attorney’s Office for their efforts in this investigation.”

CHICAGO — A federal grand jury has indicted a man for allegedly assaulting and robbing two U.S. Postal Service carriers in a Chicago suburb.

DEVAN FLAX, 21, of Chicago, assaulted and robbed a postal carrier on Nov. 25, 2023, and another on Nov. 28, 2023, in Forest Park, Ill., according to an indictment returned in U.S. District Court in Chicago.  Flax robbed the carriers of a U.S. Postal Service key, the indictment states.

The indictment also accuses Flax of robbing an employee of a Berwyn, Ill. pizzeria on Nov. 26, 2023.

Flax is currently detained in law enforcement custody.  He was arraigned on Oct. 16, 2024, in federal court in Chicago and pleaded not guilty to assault, robbery, and firearm charges. A status hearing is set for Nov. 20, 2024, at 11:00 a.m., before U.S. District Judge Jeffrey I. Cummings.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  Substantial assistance was provided by the Chicago Police Department, Forest Park, Ill. Police Department, and Lombard, Ill. Police Department.  The government is represented by Assistant U.S. Attorneys Brandon Stone and Simar Khera.

“U.S. Postal Service employees delivering mail to the American people must be allowed to do so safely and securely,” said Acting U.S. Attorney Pasqual.  “Individuals who use violence against postal carriers to gain access to the public's mail must be held accountable.”

“This indictment is another example of the roles Postal Inspectors and our law enforcement partners play in protecting Postal Service employees and customers,” said Inspector-in-Charge Mendonça.  “As Postal Service employees continue to play an integral role in our communities, we are clear in our resolve to aggressively investigate anyone who brings harm to these invaluable public servants.”

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

CHICAGO — A man has been charged in federal court with illegally possessing a machine gun conversion device in his Chicago residence last week.

Federal law enforcement on Thursday executed a court-authorized search of LATAVION JOHNSON’s residence on the South Side of Chicago and discovered the conversion device in a tool bag in Johnson’s bedroom, according to a criminal complaint filed in U.S. District Court in Chicago. When equipped to a firearm, the conversion device, also known as a “Glock switch” or “auto sear,” allows the gun to fire multiple rounds with a single pull of the trigger.

The complaint alleges that Johnson posted videos on social media showing himself possessing a firearm equipped with a conversion device.  Johnson also allegedly posted a photograph of a conversion device next to a stack of $20 bills.

The complaint charges Johnson, 22, with one count of possession of a machine gun, which is punishable by a maximum sentence of ten years in federal prison.  Johnson was arrested on Friday and remains in federal custody.  A detention hearing is set for Wednesday at 11:00 a.m. before U.S. Magistrate Judge Sheila M. Finnegan.  The U.S. Attorney’s Office will seek Johnson’s continued pre-trial detention.

The complaint and arrest were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Saqib M. Hussain.

The ongoing investigation is being conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago.  The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois.  The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes.

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

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

CHICAGO — A suburban Chicago man has been sentenced to 18 years in federal prison for trafficking fentanyl and attempting to provide material support to the Islamic State of Iraq and al-Sham, also known as ISIS.

On three occasions in 2019, JASON BROWN provided $500 in cash to an individual with the understanding that the money would be wired to an ISIS soldier engaged in terrorist activity in Syria.  Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.

Also in 2019, Brown trafficked fentanyl and other drugs from California to the Chicago suburbs and illegally possessed several loaded handguns in furtherance of his drug trafficking activities.

Brown, 42, of Lombard, Ill., pleaded guilty last year to one count of attempting to provide material support to ISIS, one count of distributing fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime.  U.S. District Judge Mary M. Rowland imposed the sentence on Oct. 16, 2024, during a hearing in federal court in Chicago. Brown has been in law enforcement custody since his arrest in 2019.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office, and Larry Snelling, Superintendent of the Chicago Police Department.  Substantial assistance was provided by the Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, Homeland Security Investigations, Lombard, Ill. Police Department, Addison, Ill. Police Department, and FBI Field Offices in Atlanta, Los Angeles, and San Diego.  The government was represented by Assistant U.S. Attorney Shawn McCarthy of the Northern District of Illinois and S. Elisa Poteat, Trial Attorney from the Justice Department’s National Security Division, Counterterrorism Section.

CHICAGO — A federal judge has sentenced a man to 12 years in prison for sex trafficking a minor in the Chicago area.

The victim was 15 years old in December 2015 when WILLIAM MCBETH enticed her to engage in commercial sex acts.  McBeth advertised the sex services online and arranged for the victim to meet individuals who responded.  McBeth transported the girl to hotels and residences in Chicago and the surrounding suburbs to engage in commercial sex, and on at least one occasion brought her from Wisconsin back to Illinois for that purpose.  He provided the victim with illicit drugs and alcohol to keep her working.  McBeth kept most of the proceeds from the encounters, spending some of the money on a new car for himself.

McBeth, 39, of Chicago, pleaded guilty earlier this year to charges of interstate transportation of an individual with the intent that she engage in prostitution. In addition to the prison term, U.S. District Judge Franklin U. Valderrama on Thursday ordered McBeth to pay $66,594.50 in restitution to his victim.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Chicago Police Department provided valuable assistance.  The government was represented by Assistant U.S. Attorney Michelle Petersen.

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

CHICAGO — A California man has been sentenced to seven years in federal prison for orchestrating a fraudulent investment scheme that swindled investors out of $23.1 million.

SEAN GRUSD formed three funds that he claimed would invest in private financial technology companies.  Beginning in 2021, Grusd provided potential investors with marketing materials containing numerous falsehoods about the funds’ purported investment history and successes.  Among other things, the promotional materials falsely claimed that one of Grusd’s funds had been an early investor in successful startup companies, such as Instacart, Coinbase, and Shippo.  Grusd also falsely claimed that he had graduated from a prestigious law school and that he managed the personal portfolio of the CEO of a large investment management firm.  Based on these and other false representations, more than a dozen victims invested $23.1 million in Grusd’s funds.

Instead of investing the victims’ money, Grusd transferred the funds to his personal bank accounts and spent the money on a lavish lifestyle, including high-end automobiles, luxurious condos in Chicago and Montreal, and lavish travel and entertainment expenses.  Many of the victims had invested a significant portion of their life savings with Grusd.

Grusd, 32, of Los Angeles, Calif., pleaded guilty last year in federal court in Chicago to a wire fraud charge.  In addition to the seven-year prison term, U.S. District Judge Sara L. Ellis on Wednesday ordered Grusd to pay more than $21 million in restitution to his victims.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.

“Defendant’s fraud was brazen and unmitigated,” Assistant U.S. Attorney Corey B. Rubenstein argued in the government’s sentencing memorandum.  “It was an appalling stream of deliberate choices over almost two years targeting numerous victims and resulting in huge losses.”

CHICAGO — A federal grand jury has returned an indictment charging a man with robbing six banks in the Chicago suburbs.

GERMAN CAMPOS JR., 24, of Franklin Park, Ill., committed the robberies in 2023 and 2024, according to an indictment returned Wednesday in U.S. District Court in Chicago.  The indictment alleges that Campos Jr. brandished a handgun in five of the robberies.  

The indictment identifies the six bank robberies as follows:

• Oct. 18, 2023: U.S. Bank in Schaumburg, Ill.
• Dec. 16, 2023: U.S. Bank in Elmhurst, Ill.
• March 6, 2024: U.S. Bank in Schaumburg, Ill.
• June 13, 2024: U.S. Bank in Elmhurst, Ill.
• Aug. 9, 2024: BMO Bank in Park Ridge, Ill.
• Aug. 28, 2024: U.S. Bank in Niles, Ill.

The indictment charges Campos Jr. with six counts of bank robbery, each of which is punishable by up to 20 years in federal prison, and five counts of brandishing a firearm during a crime of violence, each of which would impose a mandatory minimum sentence of seven years.  Campos Jr. is currently detained in law enforcement custody.  Arraignment is set for Oct. 24, 2024, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial assistance in the investigation was provided by the Schaumburg Police Department, Elmhurst Police Department, Park Ridge Police Department, Niles Police Department, and Franklin Park Police Department.  The government is represented by Assistant U.S. Attorney Stephanie C. Stern.

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

CHICAGO — A suburban Chicago man who allegedly possessed and transported sexually explicit images of children has been indicted on federal child pornography charges.

EMAD SAGHIR, 42, of Evanston, Ill., is charged with possession and transportation of child pornography, according to an indictment unsealed today in U.S. District Court in Chicago.  According to the indictment, Saghir last year possessed in his Google account an image of child pornography involving a prepubescent minor.  On several occasions last year Saghir also transported images of child pornography via his computer, the indictment states.

Saghir was arrested this morning.  He pleaded not guilty during his arraignment today in federal court in Chicago.  A detention hearing was set for Tuesday at noon.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Michael Maione.

Transportation of child pornography is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of 20 years. Possession of child pornography involving a prepubescent minor is punishable by up to 20 years.   The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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

CHICAGO — An ongoing federal investigation into alleged corruption and embezzlement at a Chicago hospital has resulted in a conspiracy charge against the hospital’s former Chief Executive Officer.

A 45-count, second superseding indictment accuses former CEO GEORGE MILLER, JR., 73, of Dallas, Texas, of conspiring with the hospital’s then-Chief Financial Officer, ANOSH AHMED, 40, of Houston, Texas, to corruptly steer vendor contracts and other hospital business to certain medical supply companies in exchange for cash from the companies’ owner, SAMEER SUHAIL, 47, of Chicago.  Ahmed, Suhail, and the hospital’s former Chief Transformation Officer, HEATHER BERGDAHL, 37, of Houston, Texas, were originally indicted earlier this year on fraud, embezzlement, and money laundering counts.  The charges accused them of causing the hospital to issue payments to purported vendor companies for goods and services that they knew had not been provided.  Many of the purported vendor companies were created by Suhail and Ahmed under various names to conceal their association with the fraudulent payments, the charges alleged.  Bergdahl allegedly opened bank accounts in the names of two legitimate hospital vendors and caused the hospital to deposit fraudulent payments into those accounts.

The second superseding indictment, which was returned Thursday in U.S. District Court in Chicago, renews the prior charges against Ahmed, Suhail, and Bergdahl, adds Miller as a defendant, and includes new tax charges against Ahmed for allegedly underreporting income in his individual tax returns.  The newly returned indictment alleges that from 2018 to 2021, Suhail paid Miller and Ahmed a share of $19 million in payments that he received from the hospital, in return for Miller and Ahmed steering those contracts and business to him.  The payments to Miller and Ahmed were in addition to the millions of dollars in fraudulent payments charged in the prior indictment.

Arraignments on the second superseding indictment have not yet been scheduled.

The second superseding indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago.  The government is represented by Assistant U.S. Attorneys Sheri H. Mecklenburg and Kelly L. Guzman.

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.

ROCKFORD — A federal judge has sentenced a Rockford man to eight years in federal prison for illegally possessing a firearm in Rockford.

TYRONE SMITH, 37, pleaded guilty earlier this year to a charge of illegal firearm possession.  As a previously convicted felon, Smith was prohibited by federal law from possessing a firearm.  Smith admitted in a plea agreement that while in Rockford in September 2022, he possessed a handgun that was loaded with 13 rounds of ammunition, including one in the chamber.

U.S. District Judge Lindsay C. Jenkins imposed the sentence Monday in U.S. District Court in Rockford.  

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department.  The government was represented by Assistant U.S. Attorney Theodora Anderson.

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

CHICAGO — A Joliet, Ill. man has been sentenced to 27 years in federal prison for sex trafficking and facilitating the sex trafficking of multiple women.

KENDALL GUYTON admitted in a plea agreement that he recruited three women to engage in commercial sex acts from 2017 to 2020. Guyton admitted that he advertised commercial sex acts online and arranged for the victims to meet individuals in various locations in the Chicago area.  He provided the victims with illicit drugs, including heroin or cocaine, and often beat his victims to force them to comply with his demands.

At sentencing, the government presented evidence that Guyton facilitated the trafficking of at least five other victims, including a minor, by beating and sexually assaulting them.

Guyton, 29, pleaded guilty last year to one count of sex trafficking by force, fraud, and coercion.  U.S. District Judge Sara L. Ellis imposed the 27-year sentence on Thursday during a hearing in federal court in Chicago.

A co-defendant, GREGORY INGRAM, 45, of Richton Park, Ill., also pleaded guilty to his role in the trafficking of multiple victims, including a minor whom he invited to live in his home while he trafficked her.  Ingram controlled the 14-year-old victim using drugs and threats of harm.  Judge Ellis in May sentenced Ingram to 20 years in federal prison.

The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the Carol Stream, Ill. Police Department, Lisle, Ill. Police Department, Will County, Ill. Sheriff’s Office, Joliet Police Department, Richton Park Police Department, and Downers Grove, Ill. Police Department.

“Defendant’s crimes were incredibly serious and had long-lasting impacts on his victims,” Assistant U.S. Attorneys Christine M. O’Neill and Prashant Kolluri argued in the government’s sentencing memorandum in Guyton’s case.  “Defendant knew these women were vulnerable and he preyed upon these vulnerabilities.”

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

WASHINGTON – The owner of a Chicago laboratory has pleaded guilty in federal court for his role in a COVID-19 testing fraud scheme.

ZISHAN ALVI, 45, of Inverness, Ill., owned and operated a laboratory in Chicago that performed testing for Covid-19. From February 2021 through February 2022, Alvi caused claims to be submitted to the U.S. Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for Covid-19 tests that were not performed as billed. As part of the scheme, the laboratory released negative test results to patients, even though the laboratory either had not actually tested the specimens or the results were inconclusive. Alvi knew that the laboratory was releasing negative results for tests that were not performed or were inconclusive, but still caused the laboratory to submit claims to HRSA for those tests. HRSA paid the laboratory more than $14 million as a result of the fraudulent claims Alvi caused to be submitted to HRSA.

Alvi pleaded guilty on Monday to one count of wire fraud, which is punishable by up to 20 years in federal prison. He is scheduled to be sentenced on Feb. 7, 2025, by U.S. District Judge John J. Tharp, Jr. in U.S. District Court in Chicago.

The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Nicole M. Argentieri, Principal Deputy Assistant Attorney General and Head of the Justice Department’s Criminal Division, Chad Yarbrough, Assistant Director of the FBI’s Criminal Investigative Division, and Mario Pinto, Special Agent-in-Charge  of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The government is represented by Assistant U.S. Attorneys Jared Hasten and Misty Wright of the Northern District of Illinois, and Claire T. Sobczak, Trial Attorney of the Department of Justice's Criminal Division’s Fraud Section.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

CHICAGO — The leader of an international drug trafficking group’s Chicago operations has been sentenced to 16 years in federal prison.

ANTONIO CARRAZCO-MARTINEZ ran the Chicago operations of a Mexico-based drug trafficking organization allegedly led by PABLO ANIBAL VAZQUEZ-DUARTE.  In 2016 and 2017, Carrazco-Martinez conspired with members of the organization to traffic cocaine and heroin from Mexico to the Chicago area. Carrazco-Martinez was responsible for receiving large amounts of drugs, maintaining a stash house, distributing the drugs to the group’s customers, and sending illicit cash proceeds back to Mexico.

A federal jury in Chicago last year convicted Carrazco-Martinez, 43, of Fort Valley, Ga., on drug trafficking charges.  U.S. District Judge Sharon Johnson Coleman imposed the 16-year sentence on Thursday during a hearing in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.  Substantial assistance was provided by the Chicago Police Department, Illinois State Police, Waukegan, Ill. Police Department, Homeland Security Investigations, and IRS Criminal Investigation.  The government was represented by Assistant U.S. Attorneys Andrew Erskine, Alejandro Ortega, and Kirsten Moran.

The case is part of an Organized Crime Drug Enforcement Task Forces investigation.  OCDETF identifies, disrupts, and dismantles drug traffickers and other criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement against criminal networks.

Carrazco-Martinez is one of nine defendants convicted as part of the investigation.  Three other defendants, including Vazquez-Duarte, are considered fugitives and believed to be residing in Mexico.

An Illinois man pleaded guilty today for his role in a COVID-19 testing fraud scheme.

According to court documents, Zishan Alvi, 45, of Inverness, owned and operated a laboratory in Chicago that performed testing for COVID-19. From February 2021 through February 2022, Alvi caused claims to be submitted to the Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for COVID-19 tests that were not performed as billed. As part of the scheme, the laboratory released negative COVID-19 test results to patients, even though the laboratory either had not actually tested the specimens or the results were inconclusive. Alvi knew that the laboratory was releasing negative results for tests that were not performed or were inconclusive, but still caused the laboratory to submit claims to HRSA for those tests. HRSA paid the laboratory over $14 million as a result of the fraudulent claims Alvi caused to be submitted to HRSA.

Alvi pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on Feb. 7, 2025, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois; Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI and HHS-OIG are investigating the case.

Trial Attorney Claire T. Sobczak of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jared Hasten and Misty Wright for the Northern District of Illinois are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

CHICAGO — A woman and her two daughters were sentenced to federal prison terms today for conspiring to force undocumented West African children to work in the Chicago suburbs.

NAWOMI AWOGA and her two daughters, MARINA OKE and ASSIBA LEA FANDOHAN, were convicted last year of conspiring to conceal, harbor, and shield from detection two children from the West African country of Benin.  Awoga coached the victims, then age 14 and 12, in Benin to lie to U.S. immigration authorities about their family relationships in order to obtain tourist visas.  Awoga then accompanied the children into the United States.  Once in the U.S., Awoga, Oke, and Fandohan harbored the victims in residences in the Chicago suburbs of Country Club Hills and Hazel Crest while forcing the victims to provide labor and services for the defendants’ financial gain.  The defendants used violence against the victims to force them to work both inside the residences and at a nearby hair salon.

U.S. District Judge John Robert Blakey imposed the prison sentences today in federal court in Chicago.  Awoga, 75, of Hazel Crest, Ill., was sentenced to eight and a half years. Oke, 38, of Country Club Hills, Ill., was sentenced to seven years and ten months.  Fandohan, 35, of Hazel Crest, Ill., was sentenced to six years and eight months.

The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; James Mead, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General; and Mark Woods-Hawkins, Special Agent-in-Charge of the U.S. Department of State Diplomatic Security Service’s Chicago Field Office. Substantial assistance in the investigation was provided by the Cook County Sheriff’s Office, Chicago Police Department, U.S. Department of Homeland Security’s Center for Countering Human Trafficking, and the U.S. Embassy’s Regional Security Office in Cotonou, Benin.  The government was represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam, and former Special Assistant U.S. Attorney Kristin M. Linsley.

“Labor traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm,” said Acting U.S. Attorney Pasqual.  “My office is committed to using every available resource to combat labor trafficking and support victims and survivors.”

“The conviction of Awoga and her daughters underscores our unwavering commitment to bringing justice to the most vulnerable among us,” said HSI SAC Fitzgerald.  “These defendants not only exploited and abused two young children, but they also coerced them into lying to authorities to facilitate their heinous scheme.  This case highlights the relentless efforts of our law enforcement partners to dismantle such criminal networks and ensure that those who perpetrate these despicable acts are held accountable.”

“Nawomi Awoga, Marina Oke, and Assiba Lea Fandohan trafficked two children who they forced to work for them,” said DOL-OIG SAC Mead.  “The Office of Inspector General is committed to working with our law enforcement partners to aggressively investigate and bring to justice those who engage in labor trafficking and involuntary servitude, particularly when minors are involved.”

“Combating trafficking requires a strong coalition of local and global partners to share resources and information, better equip front-line workers, and track and respond to evolving trafficking trends,” said DSS SAC Woods-Hawkins.  “I’m proud to say that justice was finally served in this child labor trafficking case that has spanned nearly a decade.  It was through our successful partnership with the U.S. Embassy in Benin, Homeland Security Investigations, the Department of Labor, and the Department of Justice that we were able to secure this verdict and move closer to delivering justice for the victims.”

Anyone with information about a potential human trafficking situation is encouraged to contact the National Human Trafficking Hotline by calling 1-888-373-7888 or texting 233733. More information about the Justice Department’s work to combat human trafficking can be found here.

CHICAGO — The owner of a Texas trucking company has been sentenced to 25 years in prison as part of a federal investigation that dismantled a Mexico-to-Chicago drug pipeline.

JOSE FARIAS owned a trucking company in McAllen, Texas, and resided in Mexico.  In 2015 and 2016, Farias arranged with truck drivers to transport dozens of kilograms of narcotics to the Chicago area hidden in the hollowed-out wheel axles of tractor-trailers.  Farias supervised numerous traffickers who unloaded the trucks in the Chicago area and distributed the drugs to sellers.  The traffickers then hid narcotics proceeds in the trucks for transport back to Texas and Mexico.

Farias’s drug trafficking organization used warehouses in Naperville, Ill. and Sugar Grove, Ill., as well as an abandoned auto lot in the West Garfield Park neighborhood of Chicago and an auto repair shop in Channahon, Ill.  During the investigation, law enforcement searched these locations and seized approximately 54 kilograms of heroin and nearly 17 kilograms of cocaine, as well as $630,200 in illicit cash proceeds.

In all, the drug trafficking organization distributed approximately 130 kilograms of heroin and approximately 45 kilograms of cocaine in the Chicago area.  Seven other defendants were also convicted in federal and state courts as part of the investigation.

A federal jury in Chicago in 2021 convicted Farias, 44, on drug conspiracy and possession charges.  U.S. District Judge John Robert Blakey on Monday sentenced Farias to 25 years in federal prison.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration.

“The drugs defendant caused to be distributed were resold to thousands of people, fueling addiction, tearing families apart, and decimating communities — all for the profit of defendant and his co-conspirators,” Assistant U.S. Attorneys Richard M. Rothblatt and Kristen Totten argued in the government’s sentencing memorandum.

ROCKFORD — A Rockford man has been sentenced to over seven years in federal prison for conspiring to commit robberies of electronic stores.

KATRAIL BRIDGES, 32, was convicted after a four-day jury trial in March of conspiracy to commit robbery.  U.S. District Judge Iain D. Johnston on Thursday sentenced Bridges to 87 months in federal prison.

Bridges joined the conspiracy and agreed to participate in the robberies of electronic stores at two locations: a Best Buy store in DeKalb, Ill. on Dec. 2, 2016, and a Simply Mac store in Cherry Valley, Ill. on December 16, 2016. During these robberies, the members of the group used pepper-spray against employees to gain compliance and to escape with merchandise.  The group stole over $22,000 worth of merchandise during these two robberies.

Eight other alleged conspirators were charged as part of the federal investigation.         

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Division of the FBI.  The Winnebago County Sheriff’s Office, Cherry Valley Police Department, and DeKalb Police Department assisted in the investigation.  The government was represented by Assistant U.S. Attorney Robert S. Ladd and Special Assistant U.S. Attorney Kirstin J. Krivanec.

ROCKFORD — A federal judge has sentenced a Rockford man to ten years in federal prison for illegally possessing a firearm in Rockford.

LAWNDALE PELTS, 36, was found guilty of the firearm offense in May following a jury trial in federal court in Rockford.  U.S. District Judge Iain D. Johnston imposed the sentence on Friday.

According to evidence presented at trial, on July 6, 2021, multiple people began shooting at each other in a residential neighborhood on 41st Avenue in Rockford.  Home security footage depicted Pelts in possession of a firearm as he fled the shooting.  Pelts threw his gun in a residential yard and later, while at the hospital, lied to police about what happened.  As a previously convicted felon, Pelts was prohibited by federal law from possessing firearms.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department.  The Beloit, Wisc. Police Department assisted in the investigation.  The government was represented by Assistant U.S. Attorneys Jessica Maveus and Cassandra Maier.

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

CHICAGO — A businessman has been sentenced to more than two years in federal prison for running a fencing operation out of his suburban Chicago stores.

ZIAD I. ZAYED used his store – Crestwood Electronics Inc. in Crestwood, Ill. – and other businesses to knowingly purchase stolen electronic devices and other merchandise, re-package the items, and then sell them to buyers out of state and overseas.  Some of the items fenced by Zayed included laptop computers, fitness tracking devices, and digital cameras, some of which were stolen from railcars near Chicago.

Zayed, 49, of Frankfort, Ill., pleaded guilty last year to a federal conspiracy charge.  U.S. District Judge Sharon Johnson Coleman on Wednesday sentenced Zayed to two years and four months in federal prison and ordered him to pay more than $1.3 million in restitution.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.

“By providing a marketplace to sell stolen goods, the defendant has incentivized thieves to steal and rob, whether that’s off tractor trailers sitting on railcars or phones from innocent victims,” Assistant U.S. Attorneys Barry Jonas and Ann Marie E. Ursini argued in the government’s sentencing memorandum.

CHICAGO — A federal jury in Chicago has convicted a loan originator of orchestrating a mortgage fraud scheme that bilked multiple financial institutions out of $2.6 million.

KEVIN SMITH, 52, of Melrose Park, Ill., was found guilty on Sept. 6, 2024, of all five bank fraud counts against him.  Each count is punishable by up to 30 years in federal prison.  U.S. District Judge John F. Kness set sentencing for Dec. 17, 2024.

Smith was a loan originator for mortgage lending businesses that originated and processed loans for real estate purchases in the Chicago area.  Evidence at the two-week trial revealed that Smith engaged in a scheme to fraudulently obtain approximately $2.6 million in federally guaranteed mortgage loans in connection with the purchase of 14 properties in Chicago.  Smith recruited buyers at real estate investment seminars held in Chicago-area churches and hotels and caused them to make false representations to lenders about, among other things, the source of their down payments and their intention to occupy the properties as their primary residences.  Smith provided or caused others to provide funds to the buyers for use as down payments, knowing that the lenders would be falsely led to believe that the money belonged to the buyers.  After a closing and the issuance of the government-insured mortgage loans, Smith made payments to the buyers – describing them as “grants” – and then pocketed payments from the sellers without notifying the lenders.

The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office.  The government is represented by Assistant U.S. Attorneys Rick D. Young and Misty N. Wright.

“Loan originators and other mortgage professionals are entrusted with protecting the integrity of the government-backed mortgage program,” said Acting U.S. Attorney Pasqual. “Our office will continue to hold accountable any individual who violates that trust to line their own pockets.”

“Smith abused his position of trust as a gatekeeper of FHA-insured mortgage loans and used his real estate knowledge to circumvent the rules to secure his own self-interest,” said HUD-OIG SAC Jindra.  “HUD-OIG will continue to work with its prosecutorial and law enforcement partners to aggressively pursue and bring to justice those who seek to profit by abusing HUD’s mortgage insurance and housing programs.”

“This guilty verdict demonstrates the VA Office of Inspector General’s commitment to protecting vulnerable veterans from fraudulent lending practices,” said VA-OIG SAC Billingsley.  “The VA-OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”

CHICAGO — A former Gary, Ind. Police officer was arrested today on federal criminal charges for allegedly enticing a minor to produce and record sexually explicit conduct.

JAMES W. BOND, 52, of Crown Point, Ind., is charged with sexual exploitation of a minor and receiving and possessing child pornography, according to an indictment returned in U.S. District Court in Hammond, Ind.   The indictment alleges that Bond, while serving as a Commander with the Gary Police Department earlier this summer, enticed and coerced a minor to produce sexually explicit conduct and send it to Bond.  At the time, the minor was employed by the City of Gary as part of the Summer Youth Employment Program.

Bond was arrested this morning.  His initial court appearance is scheduled for this afternoon before U.S. Magistrate Judge Abizer Zanzi in U.S. District Court in Hammond, Ind.

The indictment and arrest were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago, and Douglas G. Carter, Superintendent of the Indiana State Police.  The government is represented by Assistant U.S. Attorney Elie Zenner.  The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Illinois upon recusal by the U.S. Attorney’s Office for the Northern District of Indiana.

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 exploitation count is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years.  The receipt count is punishable by a minimum sentence of five years and a maximum of 20 years, while the possession count carries a maximum sentence of ten years.

If you believe that you or someone you know may have been victimized by James W. Bond, you are encouraged to contact Homeland Security Investigations by calling 1-877-4-HSI-TIP.  The service is available 24 hours a day, seven days a week.

CHICAGO — A suburban Chicago tax professional has admitted in federal court that he fraudulently obtained more than $1.1 million from more than ten clients under the false pretense that the money would be sent to the IRS and state revenue authorities to satisfy tax liabilities.

ADAM R. OLIVA, 43, of Rolling Meadows, Ill., pleaded guilty on Sept. 13, 2024, to one count of wire fraud and one count of preparing a false tax return.  The wire fraud count is punishable by up to 20 years in federal prison, while the tax count carries a maximum sentence of three years.  U.S. District Judge Andrea R. Wood set sentencing for Jan. 24, 2025.

Oliva held himself out as a tax professional who did business under various names, including Oliva and Associates LLC and The Oliva Group LLC.  Oliva admitted in a plea agreement that from 2015 to 2020, he fraudulently induced the clients to provide him with money for the purported purpose of paying the clients’ income taxes.  Oliva instead kept the money for himself.  Oliva also admitted that he filed false tax returns on behalf of some of the clients, reflecting no or lower tax liabilities in order to make it less likely that the IRS would contact the clients about their unpaid tax liabilities.

The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office, and Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General.  The government is represented by Assistant U.S. Attorney Rick D. Young.

Earlier this year, Oliva pleaded guilty in a separate fraud case for duping investors who had provided him with money to fund purported short-term loans to clients.  Oliva promised the investors that they would receive returns of 10-20% on their investments.  In reality, Oliva never intended to make any short-term loans.  Instead, he pocketed the investors’ money and used it for personal expenses, including gambling, meals at restaurants, and retail purchases.  Oliva faces up to 20 years in prison in that case when he is sentenced on Oct. 18, 2024, by U.S. District Judge John J. Tharp, Jr.

CHICAGO — The owners of a suburban Chicago youth counseling center have been sentenced to federal prison terms for bilking Illinois Medicaid out of approximately $2.5 million through a fraudulent billing scheme.

From 2011 to 2018, SUMMER MATHESON and TERRENCE EWING, co-managers of Laynie Foundation Inc., along with foundation employee RICHARD GRUNDY, fraudulently billed Illinois Medicaid for more mental health counseling services than the foundation actually provided.  Matheson, Ewing, and Grundy also used the Matteson, Ill.-based foundation to seek payment from Illinois Medicaid for non-reimbursable activities, such as internal case reviews, staff training, clinical supervision, and recordkeeping.  Matheson attempted to cover up the fraud by directing foundation personnel to backdate and falsify patient records to make it appear that a licensed practitioner had reviewed and approved certain mental health services, when, in fact, Matheson knew that a practitioner had not reviewed and approved those services.  As a result of the fraud, Matheson, Ewing, and Grundy fraudulently obtained approximately $2.5 million from Illinois Medicaid and managed-care organizations used by Illinois Medicaid.

Medicaid is a state-administered program, and each state sets its own guidelines regarding eligibility and services.  For Illinois Medicaid recipients, funding is shared between the federal government and the State of Illinois.

Matheson, Ewing, and Grundy each pleaded guilty last year to a federal health care fraud charge.  U.S. District Judge John Robert Blakey on Thursday sentenced Matheson, 46, of Chicago, to six years in federal prison, and Ewing, 62, of Chicago, to four and a half years.  Judge Blakey previously sentenced Grundy, 39, of Chicago, to three years and a month.

The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Mario Pinto, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance in the investigation was provided by the Illinois Attorney General’s Office, Illinois State Police, and Illinois Department of Healthcare and Family Services.  The government was represented by Assistant U.S. Attorneys Prashant Kolluri and Charles W. Mulaney.

CHICAGO — The U.S. Attorney’s Office in Chicago today announced the formation of a pilot program that encourages early and voluntary self-disclosure of criminal conduct by individual participants in certain non-violent offenses. 

The six-month pilot program is geared toward individuals who have participated in and have knowledge of criminal wrongdoing by virtue of their employment.  The purpose of the program is to encourage and incentivize individuals to self-report wrongdoing that was previously unknown to law enforcement, without fear of criminal prosecution for doing so.  The benefit for those who make timely and meaningful disclosures is a non-prosecution agreement in exchange for their ongoing assistance.  Depending on the success of the pilot program, the Office will determine whether to extend it on a more permanent basis.

“We are implementing this pilot program to provide a roadmap for how to report individual and organizational misconduct,” said Morris Pasqual, Acting United States Attorney for the Northern District of Illinois.  “We hope the program will enhance our effectiveness by incentivizing individuals and their counsel to provide us with actionable and timely information.”

From today through March 15, 2025, the Office will accept submissions on a pre-printed intake form that should be emailed to USAILN.WBP@usdoj.gov.  Each submission will be reviewed by a working group of Assistant U.S. Attorneys.  Anonymous reporting is not allowed, and individuals who have already been informed they are a subject or target of a federal criminal investigation will not be eligible.  The reporting individual must agree to forfeit or disgorge any proceeds from their own criminal wrongdoing and pay full restitution to victims.

The program is not available to individuals whose misconduct involved violence, the threat of violence, terrorism, or any sex offense involving the force, fraud, or coercion of a minor.  Additionally, elected federal or foreign officials, federal law enforcement officers, and individuals who are the highest-ranking person in their organization are not eligible to participate in the program.  Click here for a full list of terms and conditions.

ROCKFORD — A Rockford man has been sentenced to more than six years in federal prison for trafficking cocaine and selling firearms in Rockford.

ROGELIO IBARRA, 34, pleaded guilty earlier this year to distribution of cocaine and the unlawful possession of firearms.  U.S. District Judge Iain D. Johnston on Tuesday sentenced Ibarra to 76 months in federal prison.

Ibarra, a leader of the Rockford chapter of the “Insane Unknowns” street gang, admitted in a plea agreement that in 2021 and 2022 he and other gang leaders would distribute cocaine to Insane Unknown members to sell on the streets and fund the gang’s criminal activities. Ibarra also admitted that despite prior felony convictions, he possessed five firearms and sold those firearms to another individual.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Winnebago County Sheriff’s Office, Rockford Police Department, and U.S. Drug Enforcement Administration assisted in the investigation.  The government was represented by Assistant U.S. Attorney Robert S. Ladd.

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

ROCKFORD — A federal judge has sentenced a Rockford man to more than five years in federal prison for illegally possessing firearms in Rockford.

U.S. District Judge Iain D. Johnston on Tuesday sentenced RENARD MACKLIN, 36, to 70 months in prison to be followed by three years of supervised release.  Macklin pleaded guilty earlier this year to a charge of illegal firearm possession.  As a previously convicted felon, Macklin was prohibited by federal law from possessing firearms. 

Macklin admitted in a plea agreement that, on two occasions, he possessed a firearm when he was a convicted felon.  Macklin admitted that on Oct. 10, 2020, he was driving a vehicle in which he possessed a Ruger AR-15 style rifle loaded with a large capacity magazine and one round in the chamber.  When Rockford Police attempted to pull him over, Macklin fled at a high rate of speed.  On March 16, 2021, Macklin possessed a stolen semi-automatic handgun loaded with a 15-round magazine, which was seized by the Winnebago County Sheriff’s Office during the execution of a search warrant in Rockford.    

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, Carla Redd, Chief of the Rockford Police Department, and Gary Caruana, Sheriff of Winnebago County.  The government was represented by Deputy Criminal Chief Jessica Maveus.

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

CHICAGO — The former Chief Operating Officer of a suburban Chicago company that sold Covid-19 testing kits has been sentenced to more than six years in federal prison for embezzling more than $1.85 million in company funds.

While on pre-trial and pre-sentencing release for an earlier fraud scheme, DENNIS W. HAGGERTY, JR. issued fraudulent payments from the Willowbrook, Ill.-based company’s bank account for services and goods purportedly provided by himself or the company’s main vendor, a manufacturer from whom the company purchased Covid-19 testing kits.  In reality, the services and goods had not been provided.  The money purportedly sent to the testing-kit supplier was wired to a bank account that Haggerty controlled, and he spent the funds for his personal benefit. 

In addition to the wire transfers, Haggerty issued checks drawn from the company’s bank account to himself, knowing that he would spend the money for his personal benefit.  Haggerty concealed his fraud by making false and misleading statements on the checks and to the company’s president. 

In all, Haggerty in 2021 and 2022 embezzled and fraudulently misappropriated more than $1.85 million from the company.

Haggerty, 48, of Burr Ridge, Ill., pleaded guilty earlier this year to a wire fraud charge and admitted that he committed the offense while on pre-trial and pre-sentencing release.  U.S. District Judge John Robert Blakey on Thursday sentenced Haggerty to six years and five months in federal prison. 

Haggerty must serve the sentence after completing his federal sentence for the earlier fraud scheme.  In the prior case, Haggerty pleaded guilty to wire fraud and money laundering charges for swindling hospitals that had paid him millions of dollars for scarce personal protective equipment in the early weeks of the Covid-19 pandemic in 2020.  He was sentenced in December 2022 to nearly five years in federal prison.

The recent sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General.  The government was represented by Assistant U.S. Attorney L. Heidi Manschreck.

CHICAGO — A Will County, Ill. man has been indicted on federal drug trafficking charges for allegedly distributing cocaine and attempting to distribute fentanyl in the Chicago area.

WILLIAM R. BUSSE III distributed cocaine and methamphetamine in Chicago in 2021, according to an indictment returned Thursday in U.S. District Court in Chicago.  Busse also attempted to distribute cocaine and fentanyl in the Chicago suburbs that same year, the indictment states.

The indictment charges Busse, 41, of Homer Glen, Ill., with distribution and attempted distribution of controlled substances.  Each of the six counts in the indictment is punishable by up to 20 years in federal prison.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  The government is represented by Assistant U.S. Attorney Beth E. Palmer.

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

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

CHICAGO — A man has been charged in federal court with robbing a bank in Evanston, Ill. and attempting to rob a bank in Chicago on back-to-back days this month.

JEFFREY SULASKI robbed an Associated Bank branch in Evanston on Aug. 3, 2024, according to an indictment returned Tuesday in U.S. District Court in Chicago.  A day earlier, Sulaski attempted to rob a Huntington Bank branch in Chicago, the indictment states.  Sulaski committed the alleged offenses while on court-supervised release following his imprisonment for a prior bank robbery conviction.

The indictment charges Sulaski, 64, of Chicago, with one count of bank robbery and one count of attempted bank robbery.  Arraignment is scheduled for Thursday at 2:30 p.m. before U.S. District Judge Matthew F. Kennelly.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Chicago Police Department provided valuable assistance.  The government is represented by Assistant U.S. Attorney Minje Shin.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count in the indictment is punishable by up to 20 years in federal prison.

CHICAGO — A federal jury has convicted a man on drug and firearm charges for possessing multiple guns while trafficking fentanyl and other narcotics in the Chicago suburbs.

The jury on Friday found OMARI ANDREWS, JR. guilty of possessing an AR-15 style firearm and three handguns while trafficking fentanyl, heroin, cocaine, crack cocaine, and marijuana in Mt. Prospect, Ill., in 2023.  The jury returned its verdicts after a week-long trial in U.S. District Court in Chicago.  Prior to trial, Andrews pleaded guilty to distributing fentanyl and heroin in Westmont, Ill., Villa Park, Ill., Des Plaines, Ill., and Hillside, Ill., in 2022 and 2023. 

Andrews, 24, of Mt. Prospect, Ill., has been detained in federal custody since his arrest in 2023.  U.S. District Judge Edmond E. Chang set sentencing for Dec. 18, 2024.  Andrews faces a maximum sentence of life in federal prison.

The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago.  The Skokie, Ill. and Evanston, Ill. Police Departments provided valuable assistance.  The government is represented by Assistant U.S. Attorneys Alejandro G. Ortega and Sean Hennessy.

Holding firearm and drug offenders accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy.  In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

CHICAGO — The owner of three Chicago-area childcare and transportation businesses has been sentenced to a year in federal prison for underreporting more than $1.47 million in income on his tax returns.

JEREMIAH JOHNSON owned New Beginnings Academy, New Beginnings Child Development, and Epic Transportation. During the calendar years 2015 to 2020, Johnson obtained more than $1.47 million of income from the operation of those businesses but failed to report the money on his individual tax returns.  Johnson filed individual tax returns for those years but reported lesser W2 wages and some rental income.  The failure to disclose the additional income he received from his businesses resulted in the preparation and filing of materially false individual income tax returns.

During the same time period, Johnson also failed to file corporate tax returns or pay any of the required employer and employee withholdings for federal income tax, Social Security tax, and Medicare.

Johnson, 46, of Frankfort, Ill., pleaded guilty earlier this year to a federal charge of filing a false tax return.  In addition to the year-and-a-day prison term, U.S. District Judge Matthew F. Kennelly on Wednesday fined Johnson $10,000 and ordered him to pay $123,391 in restitution to the Internal Revenue Service.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office.  The government was represented by Assistant U.S. Attorney Kristen Totten and former Assistant U.S. Attorney Patrick J. King, Jr.

CHICAGO — A Chicago man has been indicted on federal murder-for-hire charges for allegedly plotting to kill two potential witnesses in his cousin’s upcoming murder trial.

An indictment returned Wednesday in U.S. District Court in Chicago charges CHRISTOPHER YATES, 39, with two counts of murder-for-hire and one count of unlawful transfer of a firearm and ammunition.

According to the indictment and a criminal complaint previously filed in the case, Yates sought the killings of two individuals he believed would testify against his cousin in a state murder trial.  Yates’s cousin is currently detained in state custody on murder and attempted murder charges for allegedly shooting two individuals, one fatally, in 2020.  The trial was set to begin this fall.

Last month, Yates allegedly recruited a man to carry out the killings and provided him with a handgun and ammunition.  Yates allegedly told the man, “I want them both off the board.  Both of them got to [expletive] go.”  Yates provided the man with $250 in cash and said he could offer more money later as payment for the killings, the charges allege.  “Whatever you charge, I’m working on that,” Yates allegedly said.

Yates was arrested on July 31, 2024, and he remains detained in federal custody without bond.  He pleaded not guilty to the charges during his arraignment Thursday in federal court in Chicago.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Substantial assistance was provided by the Cook County State’s Attorney’s Office and the U.S. Postal Service Office of Inspector General.  The government is represented by Assistant U.S. Attorney Kirsten Moran. 

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 unlawful transfer charge is punishable by up to 15 years in federal prison, while each murder-for-hire count is punishable by up to ten years. 

CHICAGO — The owner of a suburban Chicago construction company has been sentenced to five years in federal prison for conspiring to bribe an employee of the Cook County Assessor’s Office in return for favorable property assessments.

ALEX NITCHOFF, 57, of Lemont, Ill., pleaded guilty earlier this year to one count of conspiring to corruptly give something of value to influence and reward a public official, and one count of using an interstate facility to facilitate bribery.  U.S. District Judge John F. Kness imposed the sentence on Wednesday during a hearing in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by IRS Criminal Investigation and the City of Chicago Inspector General’s Office.  The government was represented by Assistant U.S. Attorney Thomas P. Peabody.

Nitchoff admitted in a plea agreement that from 2016 to 2019 he conspired with others to corruptly provide home improvement services and materials to Cook County Assessor’s Office employee LAVDIM MEMISOVSKI, who assessed property values and reviewed property tax appeals for Cook County commercial properties.  Nitchoff and others provided free home improvement services and materials at Memisovski’s personal residence, including a concrete pad, decking materials, gas lines, sprinkler system heads, tiles, and other items, the plea agreement states.  In return for the benefits, Memisovski took official action to reduce the property taxes owed for Nitchoff’s properties by at least $550,000, Nitchoff’s plea agreement states.

Memisovski, of Burbank, Ill., pleaded guilty last year to a conspiracy charge and is awaiting sentencing.

CHICAGO — A former attorney has been sentenced to 25 years in federal prison for embezzlement and fraud in connection with the failure of Washington Federal Bank for Savings in Chicago.

ROBERT M. KOWALSKI served a key role in an embezzlement scheme at Washington Federal.  The bank, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that it was insolvent and had at least $66 million in nonperforming loans.  Much of the money was transferred to Kowalski, who at the time was a licensed attorney, and two real estate developers without all of the required documentation and often without any documentation whatsoever.  The embezzled funds were falsely identified in the bank’s records as loan disbursements, even though the bank never required Kowalski to repay the money.

After the collapse of the bank, the Federal Deposit Insurance Corp. attempted to collect the money and properties that Kowalski obtained as part of the embezzlement scheme.  Kowalski responded by filing a fraudulent bankruptcy case, in which he attempted to conceal his possession of numerous assets.  To substantiate numerous misrepresentations in his bankruptcy filings and avoid paying taxes, Kowalski filed false corporate and personal tax returns for several years.  He also failed to file any returns at all for two years.

Kowalski, 62, of Robbins, Ill., was convicted last year of embezzlement, bankruptcy fraud, and tax fraud charges.  In addition to the prison term, U.S. District Chief Judge Virginia M. Kendall on Tuesday ordered Kowalski to pay restitution of $7.2 million to the FDIC and $424,047 to the IRS.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation Chicago Field Office; Korey Brinkman, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the U.S. Trustee Program.  The government was represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.

The federal criminal investigation into the bank’s collapse led to charges against a total of 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees.  Four defendants were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.

Robert Kowalski’s sister, JAN R. KOWALSKI, also formerly an attorney, pleaded guilty and is serving a two-and-a-half-year prison sentence for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.

CHICAGO — A man who carjacked a vehicle in a Chicago suburb and fired shots at a police officer who was pursuing him has been sentenced to 15 years in federal prison.

DAVID JOHNSON carjacked a vehicle in Orland Park, Ill., on Feb. 12, 2021.  The victim was sitting in his car on the street outside of his home when Johnson approached, pointed a gun at the victim’s head, and demanded the key.  Johnson stole the vehicle and led police on a high-speed chase into Chicago, where he crashed into another car in the city’s Morgan Park neighborhood.  Johnson then fled on foot and fired shots at an Oak Forest, Ill. Police officer who was pursuing him.  Chicago Police officers arrested Johnson a short time later.  At the time of the carjacking, Johnson was on court-supervised release following his imprisonment for a prior federal firearm conviction.

Johnson, 27, of Chicago, pleaded guilty earlier this year to federal carjacking and firearm charges.  U.S. District Judge Thomas M. Durkin imposed the sentence Thursday during a hearing in federal court in Chicago.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Substantial assistance in the investigation was provided by the Oak Forest, Ill. Police Department, Orland Park, Ill. Police Department, and Chicago Police Department.  The government was represented by Assistant U.S. Attorney Elie Zenner.

CHICAGO — A police officer for the Village of Dolton, Ill. was indicted today by a federal grand jury in Chicago on bankruptcy fraud charges for allegedly engaging in a scheme to conceal assets and income from creditors and prevent payment of the settlement of a lawsuit.

A nine-count indictment returned this afternoon in U.S. District Court in Chicago charges LEWIS A. LACEY, 61, of Matteson, Ill., with bankruptcy fraud, making false statements and declarations in a bankruptcy case, and perjury.  Each count is punishable by a maximum sentence of five years in federal prison.  Arraignment has not yet been scheduled. 

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Ramsey E. Covington, Acting Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service, and Hannibal Ware, Inspector General of the U.S. Small Business Administration.  Valuable assistance was provided by the U.S. Trustee Program.  The government is represented by Assistant U.S. Attorney Jason A. Julien and Special Assistant U.S. Attorney Brian P. Netols. 

The officials noted that Lacey was indicted as part of an ongoing federal investigation.

According to the indictment, Lacey since the 1980s has filed numerous personal bankruptcy cases in the U.S. Bankruptcy Court for the Northern District of Illinois, including petitions in 2019 and 2020.  The recent petitions automatically stayed enforcement of a settlement agreement Lacey had reached in 2017 with the plaintiff in a lawsuit in state court.  The indictment alleges that Lacey filed the 2019 bankruptcy petition shortly after the plaintiff moved to enforce the settlement agreement, accusing Lacey of still owing $43,000 of the $55,000 settlement.

The indictment alleges that Lacey made several materially false and fraudulent representations in oral statements and documents submitted in the bankruptcy cases, including underreporting his monthly income and concealing bank accounts that he controlled.  Among other things, Lacey falsely represented that he was separated from his spouse and that she did not reside with him or contribute to his monthly income and mortgage, the indictment states.  The false representations allowed Lacey to fraudulently calculate his monthly income for purposes of repayment of his creditors as substantially less than it should have been if his spouse’s contributions were included, the indictment states.

During the charged fraud scheme, Lacey served as a police officer for the Dolton Police Department.

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

CHICAGO — A federal grand jury has charged a man with illegally possessing a loaded handgun during an exchange of gunfire in Chicago earlier this year.

The indictment unsealed in U.S. District Court in Chicago charges MARQUIST EVANS, 30, of Chicago, with illegal possession of a machine gun and ammunition.  Evans fired numerous shots from a handgun while standing in the doorway of a gas station in the 500 block of West Grenshaw Street in Chicago on May 6, 2024, according to a criminal complaint previously filed in the case.  Evans fired the gun in the direction of two shooters, one of whom was armed with a rifle, who had emerged from a car and fired numerous shots at the vehicle in which Evans had arrived at the gas station, the complaint states.  Evans’s handgun was equipped with a conversion device, also known as a “Glock switch,” which allow firearms to fire multiple rounds with a single pull of the trigger, the complaint states.

Evans is currently in law enforcement custody.  Arraignment on the federal charges is scheduled for Aug. 15, 2024, at 10:30 a.m., before U.S. Magistrate Judge Keri L. Holleb Hotaling.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Saqib M. Hussain.

The investigation was conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago.  The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois.  The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes.

Holding firearm offenders accountable through federal prosecution is the centerpiece of Project Safe Neighborhoods, a nationwide Department of Justice initiative that brings together law enforcement officials, prosecutors, community leaders, and other stakeholders to develop comprehensive solutions to the most pressing violent crime problems.  In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

“Our office is using every available law enforcement tool to continue to bring impactful cases that hold firearm offenders accountable and reduce violent crime in Chicago,” said Acting U.S. Attorney Pasqual.  “Combating the unacceptable level of gun violence in Chicago will continue to be a top priority in our office.”

“This defendant was charged using the resources and partnerships that the Crime Gun Intelligence Center (CGIC) of Chicago created this spring,” said ATF SAC Amon.  “The CGIC’s real time analysis of crime gun intelligence is a game changer in arresting and holding accountable those who are drivers of violent gun crime in our community.”

The charges in the indictment are punishable by a maximum sentence of 25 years in federal prison.  The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO —A suburban Chicago man has pleaded guilty to federal export-control charges for illegally shipping firearm parts to Israel.

AMIN BETUNI admitted in a plea agreement that he shipped the firearm parts to individuals in Israel on at least three occasions in 2022.  The parts included rifle barrels, gas blocks for rifles, and bolt carrier groups.  Betuni put false information on the shipping labels and concealed the firearm parts in packages containing auto parts or George Foreman grills.  The firearm parts were on the United States Commerce Control List and subject to federal export regulations.  As such, their export from the U.S. to Israel required a license or written approval from the Department of Commerce, neither of which was obtained by Betuni prior to his shipments.

During a court-authorized search of Betuni’s residence in Palos Hills, Ill., in December 2022, law enforcement discovered more than 1,200 rounds of assorted ammunition, a shotgun, rifle, and handgun, additional bolt carrier groups, and three firearm conversion devices, also known as “Glock switches,” which equip firearms to fire multiple rounds with a single pull of the trigger.

Betuni, 37, pleaded guilty on Aug. 1, 2024, to a federal charge of knowingly and fraudulently exporting firearm parts in violation of U.S. laws and regulations.  The conviction is punishable by a maximum sentence of ten years in federal prison.  U.S. District Judge John F. Kness set sentencing for Nov. 6, 2024.

The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations, and Aaron Tambrini, Special Agent-in-Charge of the Chicago Field Office of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement.  Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Palos Hills, Ill. Police Department.  The government is represented by Assistant U.S. Attorney Shawn D. McCarthy.

“Export-control violations are critically important because they undermine federal laws and regulations that seek to protect international security,” said Acting U.S. Attorney Pasqual.  “Our office will continue to work with our law enforcement partners to relentlessly pursue those who seek to exploit U.S. export-control laws for financial gain.”

“Those who illegally export firearm parts will face consequences,” said SAC Fitzgerald.  “Betuni’s actions not only violated international law but also undermined global security.  HSI and our law enforcement partners remain steadfast in our commitment to uphold justice and prevent such dangerous activities.  Let this guilty plea serve as a stern warning: anyone who jeopardizes peace and safety through illicit arms transfers will be held accountable.”

“The guilty plea is a testament to the excellent cooperation between our law enforcement partners effectively targeting the illegal export of firearm parts,” said SAC Tambrini.  “Whether the export involves firearm parts or other controlled items, the Office of Export Enforcement is committed to vigorously investigating illegal exports and holding violators accountable.”

CHICAGO — A federal judge has sentenced a Chicago man to 40 years in prison for recruiting several children to engage in sex acts for money.

LENNIE PERRY trafficked at least seven minors under the age of 18.  One of his victims was under 14 years old when Perry caused her to engage in a commercial sex act.  Perry used websites such as Backpage and Facebook to advertise commercial sex acts and recruit the young victims to work for him.  Perry also required that each of his victims have sex with him before he would traffic them to others.  Perry arranged for the victims to meet individuals for the commercial sex acts in hotels and residences in Illinois, Minnesota, and Mississippi. 

Perry, 49, was convicted in 2021 on federal sex trafficking charges.  Six of Perry’s victims testified at trial about their ordeals.

In addition to the prison term, U.S. District Judge Edmond E. Chang on Wednesday ordered Perry to pay $523,600 in restitution to his victims.  

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Lucas Rothaar, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI.  The case was investigated by the FBI Chicago Child Exploitation Task Force.  Valuable assistance was provided by the Chicago Police Department and Homeland Security Investigations. 

“Defendant’s actions have created a trauma for the victims that is impossible to truly understand,” Assistant U.S. Attorney Charles W. Mulaney argued in the government’s sentencing memorandum.  “Traffickers operating today should receive the message that if you traffic children in the Chicagoland area, you will receive the fullest punishment prescribed by law.”

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

ROCKFORD — A Rockford man was sentenced today to 60 years in federal prison for producing child pornography.

U.S. District Court Judge Iain D. Johnston imposed the sentence on GARY WILSON, 53, and ordered that it be followed by a lifetime of court-supervised release.

Wilson admitted in a plea agreement that between 2016 and 2019 he solicited numerous minor boys online through gaming systems such as Xbox and PlayStation, social media applications, and text messages to produce sexually exploitive images and videos for Wilson’s sexual gratification.  Wilson, who had previously been convicted of a sex offense, groomed his victims, gaining their trust through conversations during video games.  Eventually Wilson coerced and enticed the children into sending him sexually exploitive images and videos in exchange for gaming codes and money.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Lucas Rothaar, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Department of Homeland Security and the Rockford Police Department assisted in the investigation.

“Few crimes are as grave as preying upon a vulnerable population and memorializing the sexual abuse of minors,” Deputy Criminal Division Chief Jessica S. Maveus argued in the government’s sentencing memorandum.  “Had defendant not been caught by investigating agents (and a minor’s parent), defendant would have continued in his pursuit to sexually exploit minors for his own sexual gratification.”

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please click here.

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

CHICAGO — Two men have been sentenced to federal prison terms for using U.S. Postal Service arrow keys to steal parcels from the mail in Chicago.

JOSEPH T. SOLOMON and THADDEUS J. HARPER were convicted as part of “Operation Broken Arrow,” a federal investigation into the thefts of mail using stolen arrow keys, which unlock doors and entry systems to nearly every apartment and office building in Chicago and several suburbs.

Solomon used an authentic arrow key in 2022 to open a panel of mailboxes in an apartment building in the Lincoln Park neighborhood of Chicago.  Solomon stuffed pieces of mail into a trash bag and fled the area.  He was later arrested in Indiana while driving a stolen U-Haul truck and leading police on a high-speed chase.  Solomon crashed into several vehicles in Hammond, Ind., before being apprehended.

Harper used a reproduced arrow key to enter multiple residences in Chicago in 2021 and steal mail and parcels from at least ten victims.  In one of his thefts, Harper used the key to gain entrance to an apartment building in Chicago’s River West neighborhood, where he took a piece of mail containing two checks totaling $2,500.  Harper also took other packages addressed to the same victim that were valued at more than $6,600.

Harper, 44, of Country Club Hills, Ill., and Solomon, 39, of Norridge, Ill., pleaded guilty earlier this year to federal charges of unlawful possession of a U.S. Postal Service key.  U.S. District Judge Virginia M. Kendall on Wednesday sentenced Solomon to two years in federal prison.  U.S. District Judge Sharon Johnson Coleman on Tuesday sentenced Harper to 20 months in federal prison. 

The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  Substantial assistance was provided the Chicago Police Department and the Cook County Sheriff’s Office.  The government was represented by Assistant U.S. Attorneys Minje Shin, Michael Maione, and Adam L. Rosenbloom.

“It is illegal under federal law to possess a stolen or reproduced key suited to a U.S. Postal Service lock,” said Acting U.S. Attorney Pasqual.  “We will continue to work with our federal and local law enforcement partners to hold accountable anyone who unlawfully possesses such a key or steals from the mail.”

“The safety and security of the U.S. mail and its customers are core to the mission of the U.S. Postal Inspection Service,” said Inspector-in-Charge Mendonça.  “This case is a tremendous example of how postal inspectors protect the integrity of the U.S. mail and aggressively investigate those individuals who steal or defraud individuals or businesses of money and property.”

CHICAGO — An Indiana man has been sentenced to ten years in federal prison for trafficking 15 guns, including semiautomatic rifles and “ghost guns,” from Indianapolis to the Chicago area.

DEVANTE T. BROWN and a co-defendant, COREY SARTIN, transported 15 firearms from Indianapolis to the Chicago area in the spring and summer of 2022.  Brown and Sartin sold the guns to undercover law enforcement officers in three separate transactions:

• April 9, 2022: Sartin sold a handgun to the undercover officers in Lynwood, Ill.
• May 31, 2022: Brown and Sartin sold four handguns and AR-style rifles with extended magazines to the undercover officers in the Pullman neighborhood of Chicago.
• June 24, 2022: Brown and Sartin sold four semiautomatic handguns, four semiautomatic rifles, and two privately made “ghost guns” to the undercover officers in Calumet City, Ill.  A firearm is considered a “ghost gun” when it contains no identifiable serial number and was manufactured from parts collected from various sources.

In a text message to the undercover officers prior to one of the deals, Brown stated, “I come across guns all day long.  We gone do good business together.”

Brown, 29, of Indianapolis, Ind., pleaded guilty earlier this year to a federal firearm charge.  U.S. District Judge Franklin U. Valderrama on Tuesday sentenced Brown to ten years in prison.  Sartin, 21, of Indianapolis, Ind., also pleaded guilty to a firearm charge and was sentenced last year to two and a half years in prison.

The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department.  Valuable assistance was provided by the Dolton, Ill., Police Department.  The government was represented by Assistant U.S. Attorney Jasmina Vajzovic.

Disrupting illegal firearms trafficking is a centerpiece of the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence.  As part of the Chicago Firearms Trafficking Strike Force, the U.S. Attorney’s Office collaborates with ATF, CPD, and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.

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

ROCKFORD — A Rockford man has been sentenced to six and a half years in federal prison for possession of child pornography.

GREGORIO BACINO, 27, admitted in a plea agreement that in 2021 he knowingly possessed on his cellular telephone over 1,000 images and videos of minors, including those as young as infants, engaged in sexually explicit conduct.   

U.S. District Court Judge Iain D. Johnston on Friday sentenced Bacino to six and a half years in federal prison, to be followed by 25 years of court-supervised release.  Bacino also must register as a sex offender.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago.  The government was represented by Assistant U.S. Attorney Robert S. Ladd. 

Note: View the indictment here

Iranian national Saeid Haji Agha Mousaei, 53, made his initial appearance yesterday in Chicago federal court following his extradition from the United Kingdom to face charges for his role in a years-long conspiracy to evade U.S. export restrictions and transship advanced U.S. electronic testing technology to Iran using third-party countries.

According to court documents, Mousaei was a manager of Dubai-based defendant company Millennium Product Company LLC (MPC). As alleged, from in or about January 2014 through at least August 2018, Mousaei, MPC and others, devised and participated in a scheme to obtain controlled electronics with military applications, including signals equipment like oscilloscopes and spectrum analyzers, for export and re-export to Iran.

As alleged, Mousaei and his co-defendants understood export restrictions on U.S.-origin goods to prohibited destinations like Iran and falsely represented to U.S. distributors that their purchases would remain in countries other than Iran, like the United Arab Emirates (UAE) or Armenia, where the defendants controlled unnamed companies. In reality, after arranging for distributors of U.S.-origin goods to export shipments to the UAE, the defendants allegedly transshipped goods from the UAE to Iran without the required license and in violation of U.S. law.

Mousaei and MPC are each charged with conspiracy to defraud the United States, which carries a maximum penalty of five years in prison; smuggling goods from the United States, which carries a maximum penalty of 10 years in prison; wire fraud, which carries a maximum penalty of 20 years in prison and violating the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison. Mousaei was arrested in the United Kingdom on Jan. 24, 2023, pursuant to an Interpol diffusion notice.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department’s Bureau of Industry and Security (BIS) made the announcement.

The FBI and BIS are investigating the case.

Assistant U.S. Attorney Shawn D. McCarthy for the Northern District of Illinois and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of Mousaei from the United Kingdom.

This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ROCKFORD — A Chicago man has been sentenced to 25 years in federal prison for his role in a string of armed robberies of cell phone stores throughout Illinois.

In 2019 and 2020, JOHNATHAN BYARS and his co-conspirators carried out six robberies and two attempted robberies of cell phone stores, using firearms to threaten and physically assault store employees while stealing cash, phones, and other merchandise.  The robberies occurred in Lansing, Ill., Bloomington, Ill., Rockford, Ill., Joliet, Ill., Coal City, Ill., and Mokena, Ill., while the attempted robberies occurred in Aurora, Ill., and Woodridge, Ill.

Byars, 26, pleaded guilty last year to robbery and firearm charges.  U.S. District Judge Philip G. Reinhard sentenced Byars on July 16, 2024, to 25 years in federal prison.

“Defendant chose and planned to commit not just one armed robbery, but eight separate robberies with multiple employee victims spanning multiple jurisdictions,” Assistant U.S. Attorney Theodora Anderson argued in the government’s sentencing memorandum.  “These actions pose a danger to the community, particularly in bringing and using a firearm that was brandished and pointed and used to threaten employees.”

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Valuable assistance in the investigation was provided by the Illinois State Police, Rockford Police Department, Chicago Police Department, Woodridge Police Department, Mokena Police Department, Lansing Police Department, Coal City Police Department, Bloomington Police Department, Aurora Police Department, Joliet Police Department, and the McLean County, Ill. Sheriff’s Office.

Four other defendants were convicted and sentenced to prison as part of the federal investigation into the robbery spree:

• ANTIONE FULTON, 25, of Chicago, was sentenced to 12 years.
• CALEB MORALES, 24, of Chicago, was sentenced to nine years.
• ISRAEL HALL, 25, of Chicago, was sentenced to seven and a half years.
• VONTE SPAIN, 31, of Chicago, was sentenced to seven years.

CHICAGO — A suburban Chicago man was sentenced today to 27 years in federal prison for attempting to detonate an explosive device at a bar in downtown Chicago.

ADEL DAOUD, 30, of Hillside, Ill., attempted to detonate what he thought was a 1,000-pound car bomb at a bar in the downtown Loop neighborhood of Chicago on Sept. 14, 2012.  Prior to the attack, Daoud advocated for violent jihad and expressed an interest in working with operational terrorists.  He researched and created a list of potential Chicago-area targets, which included movie theaters, bars, a suburban Chicago mall, and military recruiting centers.  Unbeknownst to Daoud, the explosive device at the Loop bar was inert and had been constructed by the FBI, which was investigating Daoud in an undercover capacity.  Daoud was arrested outside the bar after twice attempting to detonate the purported bomb. 

Daoud was originally sentenced in 2019 to 16 years in federal prison.  The U.S. Attorney’s Office successfully appealed the original sentence to the Seventh Circuit Court of Appeals, which ordered the new sentencing hearing.  Today, U.S. District Judge Matthew F. Kennelly sentenced Daoud to 27 years in prison and ordered that it be followed by a lifetime of court-supervised release.

The new sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Matthew G. Olsen, Assistant Attorney General for National Security at the Justice Department, and Lucas Rothaar, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government was represented by Assistant U.S. Attorneys Barry Jonas and Tiffany Ardam of the Northern District of Illinois, and Trial Attorneys Bridget Behling and Kevin Nunnally of the National Security Division’s Counterterrorism Section.

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

CHICAGO — The office manager for a suburban Chicago medical equipment boutique has been indicted on federal health care fraud charges for allegedly billing private insurers for products that were never provided, including breast prostheses, compression garments, and wigs for cancer survivors.

JUDY STRZELECKI served as the office manager for A Woman’s Place LLC, a durable medical equipment provider and retail shop in Downers Grove, Ill.  A Woman’s Place provided breast prostheses, compression garments, wigs, mastectomy bras, and other items to cancer survivors and women with chronic health conditions.  From 2015 to 2020, Strzelecki and others submitted fraudulent claims to Blue Cross and Blue Shield of Illinois and other health care benefit programs for equipment that was either not provided or was not medically necessary, according to an indictment returned in U.S. District Court in Chicago.   Strzelecki and others also fraudulently billed the programs for more expensive products than were provided in order to seek higher reimbursement rates, the indictment states.

As a result of the scheme, Strzelecki and others fraudulently obtained at least $1.8 million in payments from health care programs for equipment that was not provided as billed, the indictment states.

Strzelecki, 73, of Downers Grove, Ill., is charged with seven counts of health care fraud.  Each count is punishable by up to ten years in federal prison, and restitution is mandatory.  Arraignment is set for July 23, 2024, at 10:45 a.m., before U.S. Magistrate Judge M. David Weisman. 

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Lucas Rothaar, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI, and Rubén R. Chapa, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.  The government is represented by Assistant U.S. Attorney Misty N. Wright.

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

CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly violently stealing two vehicles in Chicago earlier this year.

VIRGIL GIBSON, 22, of Chicago, stole a Chevrolet Malibu on April 7, 2024, and a Kia K5 on April 8, 2024, according to an indictment returned in U.S. District Court in Chicago.  Gibson brandished a firearm in each of the carjackings and forcibly took the vehicles from the drivers, the indictment states.  Gibson also confined the driver in the second carjacking against his will and forced him to wire money to Gibson, the indictment states.

The indictment charges Gibson with two counts of carjacking, three counts of brandishing a firearm during a crime of violence, one count of robbery, and one count of kidnapping.  The charges in the indictment carry a maximum sentence of life in federal prison.

Gibson is currently in law enforcement custody.  Arraignment in federal court is set for Aug. 12, 2024, at 10:00 a.m., before U.S. District Judge Virginia M. Kendall.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department.  The government is represented by Assistant U.S. Attorney Kirsten Moran.

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.