CHICAGO –(ENEWSPF)—September 11, 2014. A former Cook County sheriff’s deputy pleaded guilty yesterday to violating the civil rights of a man being held in the county’s detention lockup facility in Maywood in 2010. The defendant, RAFAEL MUNOZ, pleaded guilty at his arraignment after he was charged last week with using unreasonable force.

Munoz, 39, of Chicago, admitted that he grabbed and forcibly pulled the chain that connected a pretrial detainee’s ankle shackles to each other, causing the victim to flip forward and his head and face to hit the concrete floor. As a result of using excessive force, the victim suffered injuries, including a broken nose, a broken tooth, swelling, bruising, and bleeding from cuts to his lip and nose.

Munoz, who became a sheriff’s deputy in August 2006 and resigned last year, is scheduled to be sentenced on Dec. 10 by U.S. Magistrate Judge Maria Valdez in U.S. District Court. He faces a maximum sentence of a year in prison and a $100,000 fine. Munoz also agreed not to seek or accept any future law enforcement employment or any position that would require or permit him to supervise or care for detainees or prisoners.

According to Munoz’s plea agreement, the victim, identified as M.O., was arrested on July 8, 2010, and transported to the Maywood lockup, where he was detained in a holding cell. In that cell, M.O. was restrained with his hands handcuffed behind his back and his legs in ankle shackles. Shortly after 2 a.m. on July 8, 2010, Munoz entered the cell in response to M.O.’s request to loosen his handcuffs. Munoz ordered M.O. to turn around and face the wall and M.O. complied with Munoz’s instructions such that M.O.’s back and handcuffs faced Munoz while M.O. faced the rear of the cell. Throughout Munoz’s interaction with M.O., the victim complied with Munoz’s orders and did not pose a threat to Munoz, any other person, or himself.

After forcing the victim to fall by pulling his ankle chain, Munoz admitted that he attempted to cover up his use of excessive force by completing three false law enforcement reports. In each of those documents, Munoz reported that he entered the cell and “grabbed [M.O.’s] handcuffs to loosen at which time [M.O.] rolled onto the cell floor,” which Munoz knew was false.

The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Acting Assistant Attorney General Molly Moran of the Justice Department’s Civil Division; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

The government is being represented by Assistant U.S. Attorneys Andrianna Kastanek and Nathalina Hudson and DOJ Trial Attorney Ali Ahmad.

Source: justice.gov

Source: justice.gov

ROCKFORD—(ENEWSPF)—September 17, 2014. A former McHenry County sheriff’s deputy who was that department’s representative on the state’s Internet Crimes Against Children Task Force was sentenced today to 50 years in federal prison for child sexual abuse and exploitation. The defendant, GREGORY M. PYLE, 39, of Crest Hills, Ill., formerly of Crystal Lake, Ill., was also placed on lifetime supervision after release from custody by U.S. District Court Judge Frederick J. Kapala, who imposed the sentence in Federal Court in Rockford.

Pyle, a sheriff’s deputy for more than a decade, pleaded guilty on Jan. 3 of this year, admitting that he crossed a state line with intent to engage in a sexual act with a minor. Today’s sentencing hearing will be completed at 2:30 p.m. on Oct. 21, 2014, when restitution and special conditions of supervised release will be imposed.

“For over five years, [Pyle] was entrusted with the efforts of the McHenry County Sheriff’s Office to protect children from exploitation and abuse. When he knew he was under investigation, [Pyle] successfully obstructed investigators determining the full scope of his criminal conduct,” Assistant U.S. Attorney Michael D. Love argued in requesting a 50-year sentence.

In pleading guilty, Pyle admitted that on Dec. 13, 2008, he had custody of a child under 12 years of age, when he drove the child from Crystal Lake, Ill. to Milwaukee, Wis., intending to engage in sexual acts with the child and to produce visual depictions of the sexual conduct. Pyle admitted that he stayed overnight in a Milwaukee hotel and engaged in sexual acts with the child that were sadistic, masochistic, and violent. The defendant produced images of the child engaged in these sexual acts and later distributed the images over the Internet.

The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois State Police, the McHenry County Sheriff’s Department, and the Illinois Internet Crimes Against Children Taskforce assisted in the investigation.

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

Source: justice.gov

Three Former County Clerk Officials Indicted for Stealing $84,000 in County Funds

Chicago—(ENEWSPF)—September 18, 2014. Attorney General Lisa Madigan today announced charges against three former officials of the Williamson County Circuit Clerk’s Office for theft of more than $84,000 in county funds for personal profit.

Madigan announced felony theft and official misconduct charges against Marsha Dickinson, 49, formerly of Marion and the former clerk supervisor; Cheryl Cundiff, 58, of Herrin and a former deputy clerk; and Kelly Trammel, 43, of Marion and a former deputy clerk. Madigan alleged the trio conspired to steal cash bond payments to the office starting in 2008 and continuing through August 5, 2013.

“The defendants took advantage of their positions for personal gain and in turn defrauded county taxpayers,” Madigan said. “This case is another example of my commitment to ensuring public integrity in Illinois government.”

Dickinson, the former clerk supervisor, was charged with seven counts of official misconduct, three counts of theft, one count of conspiracy to commit theft and three counts of forgery. Cundiff was charged with two counts of official misconduct, one count of theft and one count of conspiracy to commit theft. Trammel was charged with two counts of official misconduct, one count of theft and one count of conspiracy to commit theft.

Madigan alleged in the charges that the defendants regularly processed cash payments for bond in their capacity as employees of the Williamson County Circuit Clerk’s Office and conspired to steal the cash payments and sought to conceal the thefts.

The public is reminded that each defendant is presumed innocent until proven guilty in a court of law.

Public Integrity Bureau Chief David Navarro, Associate Director Louis Dolce and Assistant Attorneys General Jonas Harger and Eric Rieckenberg are handling the case for Madigan’s office. The Illinois State Police referred the case to the Attorney General’s office after conducting an investigation.

Madigan formed the Public Integrity Bureau and tasked it with using the tools afforded the office within statutory limits to uncover public corruption and enforce state law. Public Integrity investigations have led to the convictions of elected officials, public employees and government vendors – from an elected state representative and county state’s attorney to local officials – who used their positions for personal or political gain.

During her tenure, Madigan’s office also has investigated and prosecuted cases of fraud involving government programs, including public construction projects, child care and in-home care, unemployment insurance and student loan programs, Medicaid and state grants.

Madigan also created the position of Public Access Counselor in her office to serve as a watchdog for public bodies that refuse access to public records. The Public Access Counselor reviews and resolves thousands of public record disputes each year, working to reverse Illinois’ long legacy of a lack of government transparency.

Source: illinoisattorneygeneral.gov

CHICAGO –(ENEWSPF)—September 18, 2014. A high-ranking leader of the Traveling Vice Lords street gang who directed a violent west side drug-trafficking conspiracy was sentenced today to 35 years in federal prison after a judge ruled that he “very likely” murdered an off-duty Chicago police detective and a woman in August 2008.

“Your drug trafficking activities were a scourge on your community,” Judge Lefkow said.

The judge also ruled that the government met its burden in proving by a preponderance of evidence that it was “very likely” that Austin committed the murders of Det. Robert Soto and Kathryn Romberg on Aug. 13, 2008, and then subsequently attempted to obstruct the murder investigation. The victims were shot as they sat in a parked car in the 3000 block of West Franklin, about three blocks east Kedzie and one block south of Ohio. During a sentencing hearing that began last month, the government presented evidence that Austin shot and killed the pair after mistaking them from for a rival drug dealer and the drug dealer’s companion.

“We are gratified that the Court found Austin responsible for the murders of Detective Soto and Ms. Romberg. Jason Austin is a violent drug dealer, and today’s 35-year sentence provides a modest measure of justice,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.

“Jason Austin sold heroin and crack cocaine in the area of Kedzie and Ohio for years. He ran the block, had employees who worked for him, and he sold thousands of dollars of heroin a day. Austin controlled his territory through fear, violence, and threats of violence. He kept guns at the ready to stave off the competition. Austin thought of Kedzie and Ohio as his,” Assistant U.S. Attorneys Maribel Fernandez-Harvath and Matthew Madden argued in seeking a significant sentence.

Austin and 30 other members and associates of the Traveling Vice Lords were arrested in November 2010 as part of Operation Blue Knight, which focused on around-the-clock retail street sales of crack cocaine and heroin in the area of Kedzie and Ohio, known as “KO.” Significant amounts of crack cocaine and heroin were seized during the two-year investigation, which the Chicago Police Department’s Organized Crime Division began in 2008 and the Federal Bureau of Investigation joined several months later. Overall, their efforts resulted in a total of 104 defendants being arrested on state and federal charges in this and related investigations.

The evidence at trial showed that Austin conspired with others to distribute heroin to customers via hand-to-hand transactions in the “KO.” The heroin, named “Blue Magic,” alone accounted for as much as $8,000 a day in sales, between approximately 6 a.m. and 11 p.m., seven days a week. During the investigation, law enforcement officers repeatedly observed the conduct of co-conspirators at KO. Surveillance, often video recorded, documented hand-to-hand drug transactions, controlled purchases of narcotics by undercover Chicago police officers, and controlled purchases of narcotics by confidential sources.

Mr. Fardon announced the sentence with Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry McCarthy, Superintendent of the Chicago Police Department. The investigation was conducted by the Chicago Police Department’s Organized Crime Division and the FBI’s Safe Street Task Force, together comprising the FBI-CPD Joint Task Force on Gangs. It was also conducted under the umbrella of U.S. Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).

Source: justice.gov

CHICAGO—(ENEWSPF)—October 1, 2014. A Chicago used car broker and taxicab operator was arrested yesterday after being indicted on federal charges for allegedly causing at least 180 vehicles that were salvaged or rebuilt to illegally obtain clean titles from Indiana and Illinois and, as a result, to illegally operate as licensed and registered taxicabs in the City of Chicago.

The defendant, ALEXANDER IGOLNIKOV, 67, of Northbrook, was charged with one count of conspiracy and two counts each of interstate transportation of false automobile titles and possession of false auto titles in a five-count indictment that was returned by a federal grand jury on Aug. 27 and unsealed today following his arrest.

Ignolikov was scheduled to appear at 3 p.m. today before U.S. Magistrate Judge Jeffrey T. Gilbert in Courtroom 1386 in U.S. District Court.

Igolnikov, also known as “Alexandr Igolnikov” and “Alex,” was the owner of Seven Amigos Used Cars and vice president of Chicago Elite Cab Corp., which operated taxis under city taxi medallions managed by Chicago Elite Cab and related entities affiliated with Chicago Carriage Taxi Company. City taxi medallion rules prohibit any vehicle that was ever issued a “salvage” or “rebuilt” title in any state from being used as a taxicab in Chicago.

The indictment alleges that between 2007 and April 2010 Ignolikov conspired with three unnamed auto brokers, two in Indiana and one in Illinois, to purchase vehicles with salvage titles from online auction sites; fraudulently obtain either clean or rebuilt Indiana titles for those vehicles by submitting false paperwork to the Indiana Bureau of Motor Vehicles; and then using those re-issued Indiana titles to obtain clean Illinois titles, concealing that the vehicles were previously issued salvage or rebuilt titles.

According to the indictment, in many instances, Ignolikov agreed with three auto brokers to have the damaged vehicles towed from the online auctions sites’ yards in out-of-state locations to the premises of Seven Amigos and Chicago Carriage near 26th Street and South Wabash Avenue in Chicago, where the vehicles would be repaired.

In addition to submitting false paperwork concealing the vehicles’ history and damage to Indiana authorities, Ignolikov and the brokers also submitted a false affidavit certifying that an Indiana law enforcement officer had personally examined the vehicles and verified certain identifying information, the charges allege. In reality, no officer had examined the vehicle and the affidavit of a police officer was signed by unnamed Officer A for a fee, or unnamed Officer B, or other individuals without any physical inspection, according to the indictment.

In some instances, based on the allegedly false towing paperwork and false police affidavits, the Indiana Bureau of Motor Vehicles issued clean titles to various auto brokers for vehicles that were previously issued salvage titles. In other instances, other individuals obtained Indiana rebuilt titles through fraud and then placed stickers on those titles concealing that the titles identified the vehicles as being rebuilt. After obtaining either a clean or rebuilt Indiana title for the vehicles, Ignolikov purchased the vehicles in the name of Seven Amigos, Chicago Elite Cab, or other businesses and paid a premium above the purchase price in exchange for the brokers’ work in securing the clean or rebuilt Indiana titles, the indictment alleges.

Finally, Ignolikov and his business associates allegedly used the clean and rebuilt Indiana titles to obtain clean Illinois titles for the vehicles, and later concealed from the City of Chicago the fact that the vehicles were previously issued salvage or rebuilt titles, which prohibited them from being used as taxis.

The arrests and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago. The investigation is continuing, they said.

The government is being represented by Assistant U.S. Attorneys Margaret Schneider and Steven Dollear.

Conspiracy carries a maximum sentence of five years in prison, while each count of interstate transportation and possession of false auto titles carries a maximum penalty of 10 years in prison and all five counts carry a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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

Source: justice.gov

CHICAGO--(ENEWSPF)--October 1, 2014.  Twenty-two defendants are facing federal narcotics charges here for their alleged roles in importing, supplying, and distributing kilogram quantities of heroin and cocaine through interconnected drug trafficking organizations that operated in the Chicago area, as well as in Mexico, California, Oregon, Indiana, Ohio, and Pennsylvania. The investigation resulted in the seizure of more than $3.9 million from a residence in suburban Park Ridge in April 2013, as well as dozens of kilograms of cocaine, heroin, and marijuana.

Beginning Monday night through yesterday, 14 defendants were arrested in the Chicago area, two in California, and one each in Iowa and Pennsylvania, following an investigation led by FBI and DEA agents and other law enforcement partners assigned to the Chicago Strike Force, a permanent task force of centrally housed federal, state, and local law enforcement agencies targeting the intersection of drug cartels’ large-scale smuggling of narcotics and local street gangs’ extensive distribution organizations. Three others were already in custody, and one is a fugitive believed to be in Mexico.

Approximately $500,000 and a kilogram of cocaine were seized yesterday during the arrest of one defendant in Philadelphia. In Chicago, a loaded .32 caliber revolver, thousands of dollars in cash, and quantities of cocaine and heroin were seized during the arrests. In total, agents seized approximately $5 million, 78 kilos of cocaine, and 20 kilos of heroin, and a large quantity of marijuana during the entire investigation.

The defendants were charged with conspiracy or possession with intent to distribute narcotics in three separate criminal complaints that were filed Monday in U.S. District Court and unsealed following the arrests. The defendants arrested here had their initial appearances yesterday and were scheduled to have detention hearings starting tomorrow and continuing through Monday before U.S. Magistrate Judge Susan Cox in U.S. District Court.

“The Chicago Strike Force is a powerful collaboration of local, state, and federal law enforcement focused on the choke point between narcotics suppliers and street-level distributors,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “This investigation demonstrates the wisdom of the Strike Force and illustrates how dedicated teamwork can rise above jurisdictional and geographic borders, across state and international lines, to stem the flow of narcotics into our communities,” he said.

Mr. Fardon announced the charges with Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of investigation; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Gary Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); and Garry F. McCarthy, Superintendent of the Chicago Police Department. The Addison, Berwyn, Oak Lawn, and Park Ridge police departments and the DuPage Metropolitan Enforcement Group also assisted in the investigation.

The Chicago Strike Force ― in addition to the DEA, FBI, HSI, and CPD ― also consists of the Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and officers from various state and local law enforcement agencies, including the Cook County Sheriff’s Police Department and the Illinois State Police.

“These Strike Force arrests demonstrate our collaborative and continuing endeavor to attack the persistent problem of drug trafficking in Chicago and the surrounding communities. I’d like to thank the United States Attorney’s Office and the DEA, our partners in this investigation, as well as the Chicago Police Department and Homeland Security Investigations, whose contributions were vital to the success of yesterday’s operation,” Mr. Holley said.

“This investigation is an example of the extraordinary work being done by the men and women at the Chicago Strike Force. Guns and drugs continue to be the underlying source of much of our city’s violence and yesterday’s arrests effectively dismantled a significant international criminal organization and its distribution network, responsible for trafficking narcotics on the streets of Chicago,” Mr. Riley said. “I applaud the FBI and the U.S. Attorney’s Office, as well as the other members of the Strike Force, for the exceptional job they did investigating these organizations.”

One of the three complaints charges VICTOR MATA MADRIGAL, 37, of Lombard, and eight members or associates of his alleged drug trafficking organization. Mata Madrigal allegedly imported wholesale amounts of cocaine and marijuana from Mexico into Chicago and distributed those narcotics to various wholesale customers.

On April 16, 2013, Strike Force agents seized $3,927,359 in alleged drug proceeds belonging to the Mata Madrigal organization from a residence in the 700 block of North Lincoln Avenue in Park Ridge. The cash was found inside numerous duffel bags, roller bags, and backpacks. Also seized were multiple cell phones, money counters, and packaging materials used to secure the cash. Mata Madrigal was arrested the same day and the complaint alleges that he continued to direct the drug operation while he was in custody.

The complaint charges that between April 2012 and May 2014 Mata Madrigal conspired with co-defendants JORGE SANCHEZ, of Philadelphia; JORGE MICHEL-MONROY, 45, of Philadelphia; SERGIO ZEPEDA, 30, of Berwyn; RAMON CONTRERAS, 23, of Chicago; ANTONIO MEIJA RODRIGUEZ, believed to be in Mexico; BALMORE URBANO, 31, of Bensenville; and STEPHANIE ARREDONDO, 22, of Franklin Park, to possess and distribute cocaine. The complaint also charges RICARDO HERNANDEZ, 30, of Chicago, and Urbano with possession with intent to distribute cocaine. If convicted, these nine defendants face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine.

Another complaint charges DANIEL CONTRERAS, 36, of Bellwood, with working with multiple individuals to obtain and sell wholesale quantities of cocaine. Daniel Contreras and codefendants ROBERTO CORTEZ, 39, of Rialto, Calif., and MICHAEL AGUIRRE, 26, of Maywood, allegedly purchased cocaine from the Mata Madrigal organization. Daniel Contreras also allegedly worked separately with HECTOR MURILLO, 29, of Cicero, and ADAN BACA, 36, of Schaumburg, to sell distribution-sized quantities of cocaine. Co-defendants RAFAEL RUIZ, 36, of Bellwood; ARMANDO GARCIA, 38, of Bellwood; and JOSEPH DE LA VEGA, 52, of Chicago, were allegedly wholesale cocaine customers of Daniel Contreras. EITEL MENDOZA, 37, of Culver, Ore., allegedly worked with Cortez to transport kilos of cocaine from Oregon to Illinois. If convicted, eight of these defendants face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine, while De La Vega alone faces a maximum sentence of 20 years in prison and a $1 million fine.

The third complaint charges JUAN MOYANO, 33, of Chicago, with purchasing narcotics from the Mata Madrigal organization and managing his own drug trafficking organization in Chicago that distributed heroin and cocaine, as well as possessed and transferred firearms. Moyano allegedly conspired with co-defendants NIKKOLAS CASILLO, 28, of Chicago, and JOSE VASQUEZ, 30, of Chicago, to distribute narcotics to their customers. Co-defendant JIM BAARTZ, 41, of Crystal Lake, was an alleged heroin customer of Moyano. If convicted, Moyano, Casillo, and Vasquez face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine, while Baartz alone faces a maximum sentence of 20 years in prison and a $1 million fine.

The government is being represented by Assistant United States Attorneys Patrick Otlewski and Nicole Kim.

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

Source: justice.gov

CHICAGO--(ENEWSPF)--October 2, 2014.   In the first federal prosecution of its kind, a high-frequency trader was indicted for allegedly manipulating commodities futures prices and illegally profiting nearly $1.6 million as a result of trading orders he placed through CME Group and European futures markets in 2011.  The defendant, MICHAEL COSCIA, was the manager and sole owner of the former Panther Energy Trading LLC, of Red Bank, N.J., which he formed in 2007.

Coscia, 52, of Rumson, N.J., a registered commodities trader since 1988, was charged with six counts of commodities fraud and six counts of “spoofing” in a 12-count indictment returned yesterday by a federal grand jury, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, announced today.  

The indictment marks the first federal prosecution nationwide under the anti-spoofing provision that was added to the Commodity Exchange Act by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

Coscia will be arraigned on a date to be determined in U.S. District Court in Chicago.

“Traders and investors deserve a level playing field, and when the field is tilted by market manipulators, regardless of their speed or sophistication, we will prosecute criminal violations to help ensure fairness and restore market integrity,” Mr. Fardon said.  “This case reflects the reasons why, earlier this year, we established a Securities and Commodities Fraud Section, which is dedicated to protecting markets and preserving investors’ confidence,” he added.

According to the indictment, high-frequency trading is a form of automated trading that uses computer algorithms for decision-making and placing a high volume of trading orders, quotes, or cancelation of orders in milliseconds.  Coscia designed two computer programs he allegedly used in 17 different CME Group markets and three different markets on the London-based ICE Futures Europe exchange, including gold, soybean meal, soybean oil, high-grade copper, Euro FX and Pounds FX currency futures, to implement his fraudulent strategy.  It was illegal for traders to place orders in the form of “bids” to buy or “offers” to sell a futures contract with the intent to cancel the bid or offer before execution.

Between August and October 2011, Coscia allegedly defrauded participants in the CME Group and ICE Futures Europe markets.  In August 2011, Coscia began a high-frequency trading strategy in which he entered large-volume orders that he intended to immediately cancel before they could filled by other traders, the indictment alleges. 

Coscia devised this strategy to create a false impression regarding the number of contracts available in the market, and to fraudulently induce other market participants to react to the deceptive market information he created, the indictment states.  His strategy moved the markets in a direction favorable to him, enabling him to purchase contracts at prices lower than, or sell contracts at prices higher than, the prices available in the market before he entered and canceled his large-volume orders, it adds.  Coscia then allegedly repeated this strategy in the opposite direction to immediately obtain a profit by buying futures contracts at a lower price than he paid for them, or by selling contracts at a higher price than he paid for them.  Each such trade allegedly occurred in a matter of milliseconds.  As a result of the aggregate of those fraudulent high-frequency trades, Coscia illegally profited approximately $1,592,867 over approximately three months, the indictment alleges.

As part of the scheme, Coscia’s trading programs looked for market conditions such as price stability, low volume at the best prices, and a narrow difference between the prices at which prospective purchasers were willing to buy and prospective sellers were willing to sell because his allegedly fraudulent trading strategy worked best under these conditions.  His trading programs sometimes placed a “ping order” of one contract to test the market and ensure that conditions would allow his strategy to work well.

Coscia allegedly designed his trading programs to place a “trade order” on one side of the market, intending that the trade order be filled.  He profited from his fraudulent strategy by filling the “trade order,” the charges allege.

He also designed his programs to place several layers of “quote orders” on the other side of the market from his trade orders ― either to buy contracts at a price higher than the prevailing offer, or to sell contracts at a price lower than the prevailing bid ― to create the illusion of market interest.  The quote orders would typically be the largest orders in the market within three ticks (the minimum price increment at which a futures contract could trade) of the best bid or offer price, usually doubling or tripling the total quantity of contracts within the best bid or offer price.

The indictment alleges that Coscia designed his programs to cancel the quote orders within a fraction of a second automatically, without regard to market conditions, even if the market moved in a direction favorable to the quote orders.  He programmed the quote orders to cancel because he did not intend for them to be filled, but instead intended to trick other traders into reacting to the false price and volume information, it adds.  Further, Coscia designed his programs to cancel all fraudulent and misleading quote orders immediately if any of them were even partially filled, because he intended them only to trick other traders into reacting to what appeared to be a substantial change in the market. 

After Coscia filled his trade order through the use of fraudulent and misleading quote orders, he immediately entered a second trade order on the other side of the market and repeated his steps with misleading quote orders, causing the second trade order to be filled.  As a result, Coscia allegedly profited on the difference in price between the first and second trade orders.

The indictment details an example through trades that Coscia placed milliseconds apart in the Euro FX market during the early morning on Sept. 1, 2011.  By entering large orders that he intended to cancel at the time he placed them, and caused to be canceled before other traders could fill them, Coscia made a profit by buying 14 contracts at 14288 ticks and selling them at 14289 ticks less than one second later.

The government is being represented by Assistant U.S. Attorney Renato Mariotti.

Each count of commodities fraud carries a maximum sentence of 25 years in prison and a $250,000 fine, and each count of spoofing carries a maximum penalty of 10 years in prison and a $1 million fine.  If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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

Source: justice.gov

Source: justice.gov

CHICAGO --(ENEWSPF)--October 3, 2014.  A former investment adviser was sentenced to 3½ years in federal prison for fraudulently obtaining approximately $4 million from more than 30 victims and misusing the money to make Ponzi-type payments to investors, pay personal expenses, and personal gambling, resulting in a loss of just over $3 million.  The defendant, OSCAR DONALD OVERBEY, JR., was a financial adviser at two north suburban locations for Ameriprise Financial, Inc., who engaged in a fraudulent financing scheme between approximately 1996 and 2007.

Overbey, 47, of Country Club Hills and formerly of Evanston, was ordered today to pay $3,090,833 in restitution by U.S. District Judge Gary S. Feinerman, who imposed the sentence yesterday in Federal Court.  Overbey was ordered to begin serving his 42-month sentence on Jan. 12, 2015.  Following his sentence, the judge ordered Overbey to be placed on supervised release for three years and prohibited him from gambling or visiting casinos or racetracks during that time.  Overbey was indicted in 2012 and pleaded guilty to wire fraud last February. 

According to court documents, among Overbey’s victims were two university workers and their two daughters.  He convinced them to invest $150,000 in a purported short-term, government-backed investment paying 10 percent interest.  The victims obtained funds from refinancing their home and from a home equity line of credit to make the investment.  Instead of investing the funds, Overbey misappropriated the entire amount to pay personal expenses and to make more than 10 Ponzi-type payments to other victims.

“The victims placed their trust in [Overbey], but never had a chance.  [Overbey] abused that trust and misused his education and skills as an investment advisor to benefit himself and to keep his scheme going,” Assistant U.S. Attorney Edward Kohler argued at sentencing.

The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.  The Illinois Securities Department cooperated with the investigation.

Source: justice.gov

Washington, DC—(ENEWSPF)—October 6, 2014. A southwest suburban Bolingbrook man was arrested Saturday night for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today.  The defendant, Mohammed Hamzah Khan, 19, a U.S. citizen, was charged with attempting to join the Islamic State of Iraq and the Levant (ISIL), also known as the Islamic State of Iraq and Syria (ISIS).

Khan was taken into custody without incident at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.

Khan was charged in a criminal complaint filed today in U.S. District Court with one count of attempting to provide material support to a foreign terrorist organization.  He appeared this morning in U.S. District Court before U.S. Magistrate Judge Susan Cox, and remains in federal custody pending a detention hearing at 10:30 a.m. Thursday.

According to the complaint affidavit, a roundtrip ticket was purchased for Khan on Sept. 26 to travel from Chicago to Istanbul, departing on Saturday, and returning later this week.

Law enforcement agents observed Khan passing through the security screening checkpoint Saturday afternoon at O’Hare’s international terminal.  Federal agents then executed a search warrant at Khan’s residence and recovered multiple handwritten documents that appeared to be drafted by Khan and/or others, which expressed support for ISIL, the affidavit alleges.  Some of those documents, including travel plans and materials referencing ISIL and jihad, are described in the complaint affidavit.

Khan was initially approached by U.S. Customs and Border Protection officers and was later interviewed later by FBI agents at the airport. 

Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies.  The Justice Department’s National Security Division assisted in the investigation.  U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance. 

The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.  The investigation is continuing, they said.  

The government is being represented by Assistant U.S. Attorneys Matthew Hiller and Angel Krull.

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

Related Material:

Hamzah Complaint

Source: justice.gov

ROCKFORD--(ENEWSPF)--October 6, 2014.  A Rockford man pleaded guilty today in Federal Court to bank robbery.  PEDRO J. CORDERO, 52, of Rockford, Ill., pleaded guilty before U.S. District Judge Frederick J. Kapala to the robbery of BMO Harris Bank, N.A., 2510 S. Alpine Rd., Rockford, Ill., on July 12, 2014.  Cordero also admitted to robbing two other local banks.

According to the written plea agreement, at approximately 10:00 a.m. on July 12, 2014, Cordero approached a teller at the counter of BMO Harris Bank, 2510 S. Alpine Rd., in Rockford, wearing an inside out San Antonio Spurs baseball cap and carrying a white and blue Kane County Cougars umbrella.  Cordero slid the teller a note demanding large bills out of the drawer and stated he had a gun.  The teller removed money and provided Cordero banded stacks of U.S. currency.  Cordero grabbed the money and left the bank.

The next day, Cordero was stopped by the Rockford Police for a traffic violation.  In his car, Cordero possessed the San Antonio Spurs baseball hat he wore and the blue and white Kane County Cougars umbrella that he carried the previous day during the BMO Harris Bank robbery, as well as a large amount of U.S. currency from the bank robbery.

In addition, Cordero admitted in the plea agreement to robbing the U.S. Bank located at 1107 East State St., Rockford, Ill., on May 8, 2014.  According to the plea agreement, Cordero wore a San Antonio Spurs baseball cap during the robbery.  Cordero approached a teller at the counter and slid the teller a note that indicated he had a gun.  Cordero then asked for large bills, told the teller not to activate any alarms and stated that he had a gun.  The teller provided Cordero with money which he grabbed and then left the bank.

Cordero also admitted in the plea agreement that on June 2, 2014, he robbed the Associated Bank located at 4400 Center Terrace, Rockford, Ill.  Cordero admitted that he wore an inside out San Antonio Spurs baseball cap and carried a blue and white Kane County Cougars umbrella during the robbery.  Cordero approached a teller at the counter and said he needed to make a withdrawal.  Cordero handed the teller a blank withdrawal slip, told the teller to give him all the large bills and that he had a gun.  The teller removed money, which Cordero grabbed and then left the bank.

Bank robbery carries a maximum penalty of 20 years in prison, up to 5 years probation, a term of supervised release of up to 3 years following imprisonment, a fine of up to $250,000, and full restitution.  The Court must impose a reasonable sentence guided by the advisory United States Sentencing Guidelines.  Sentencing for Cordero is set for January 13, 2015, at 2:30 p.m. 

The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.

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

Source: justice.gov

CHICAGO--(ENEWSPF)--October 20, 2014.  A Chicago investment advisor was convicted on Friday of federal bank fraud charges for engaging in a scheme to defraud Oak Brook-based Leaders Bank and two of his clients of more than $3.2 million and ultimately causing the bank to lose more than $2.7 million.  The defendant, ROBERT J. LUNN, was found guilty of five counts of bank fraud by a federal jury that began deliberating yesterday following a trial that began Oct. 7.

Lunn, 64, of Chicago, who did business as Lunn Partners, LLC, an investment advisory business, remains free on bond pending sentencing, which was set for Jan. 21, 2015, by U.S. District Judge Charles Norgle.  Lunn faces a maximum sentence of 30 years in prison and a $1 million fine on each count, or an alternate fine totaling twice the fraud loss or twice the gain, whichever is greater, as well as mandatory restitution.  The court may also order forfeiture of any fraud proceeds.

According to the evidence at trial, Lunn fraudulently obtained a $1.32 million line of credit from the bank for his business, as well as separate loans of $1.4 million and $500,000 purportedly on behalf of two clients.  Lunn made a series of misrepresentations to Leaders Bank about his own assets, the purpose of the loans, and the knowing authorization of clients purportedly seeking the financing.  Instead, Lunn used substantially all of the fraudulently obtained funds for his own benefit, including mortgage payments and approximately $1.4 million in payments to other investment clients.

Lunn initially obtained a business line of credit from Leaders Bank for $480,000 in May 2001.  He increased the credit line twice in early 2004, first to $1.2 million and later to $1.32 million, all after he submitted personal financial statements to the bank falsely stating that he owned millions of dollars of stock in Morgan Stanley and Lehman Brothers.  In September 2002, Lunn arranged for an unsecured bank loan of $1.4 million, purportedly for the benefit of former Chicago Bulls star Scottie Pippen, a client at the time, after falsely representing the proceeds of the loan would be used by Pippen to finance the purchase of an interest in an airplane.  In June 2004, Lunn arranged a bank loan for $500,000 for the benefit of another former client, Robert Geras, a retired venture capitalist, without Geras’ knowledge or authorization, after submitting a net worth report for Geras and stating that Geras wanted short-term financing for a business investment.

The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.  They thanked the U.S. Securities and Exchange Commission’s Chicago Regional Office for its cooperation and participation in the prosecution.  

The government is being represented by Assistant U.S. Attorney Kenneth Yeadon and Special Assistant U.S. Attorney Rich Stoltz, a senior attorney with the SEC.

Source: justice.gov

CHICAGO —(ENEWSPF)--October 20, 2014.  A dermatologist in west suburban Lombard was convicted today of defrauding Medicare and private health insurers by submitting false claims for more than 800 patients resulting in losses totaling more than $2.6 million.  The defendant, DR. ROBERT KOLBUSZ, falsely diagnosed patients with actinic keratosis, or sun-induced skin lesions that have potential to become cancerous, and then billed public and private health insurers for treatments that were ineffective and falsely documented.

Kolbusz, 57, of Oak Brook, owns and operates the Center for Dermatology and Skin Cancer, Ltd., in Lombard and formerly located in Downers Grove.  He was found guilty of three counts of wire fraud and three counts of mail fraud by a jury that began deliberating on Friday after a four-week trial in U.S. District Court.

Kolbusz remains free on bond pending sentencing, which was scheduled for Feb. 13, 2015, by U.S. District Judge John Z. Lee.  Kolbusz faces a maximum penalty of 20 years in prison and a $250,000 fine on each count, or an alternate fine totaling twice the gross fraud loss or twice the gain, whichever is greater.  The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

According to the evidence at trial, between 2003 and 2010, Kolbusz falsely documented hundreds of patients’ records to support medically unnecessary, cosmetic treatments he ordered.  He typically billed for removing 15 or more lesions from hundreds of repeat patients, many for whom he treated on at least 10 or more occasions, and received insurance payments of up to $352.40 per treatment.  Overall, he falsely claimed to have removed more than 150 pre-cancerous lesions from each of approximately 350 Medicare patients, more than 450 patients covered by Blue Cross and Blue Shield, and additional patients covered by Aetna and Humana health insurance.  In fact, Kolbusz usually provided treatments that were merely cosmetic and that were not eligible for insurance payments.

Eight patients, several employees, and an expert witness testified for the government, while Kolbusz testified in his defense.  One patient, who was a teenager at the time, testified that she thought only that she was getting her freckles lightened while Kolbusz claimed that he had destroyed approximately 491 pre-cancerous lesions on her skin.

The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General in Chicago; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago.

The government is being represented by Assistant U.S. Attorneys Stephen Chahn Lee, Abigail Peluso, and Jessica Romero.

Source: justice.gov

CHICAGO —(ENEWSPF)--October 21, 2014.  Nearly three ounces of marijuana was confiscated after it was found hidden inside two sandwiches that a Cook County corrections officer allegedly tried to smuggle into the Cook County Jail last year in exchange for a $200 bribe.  As a result of that seizure and an allegedly broader conspiracy, the corrections officer, three inmates, two civilians, and a Chicago police dispatcher are facing federal charges in connection with alleged smuggling of marijuana and other contraband into the jail, sheriff’s department and federal law enforcement officials announced today.

In June 2013, three jail inmates allegedly conspired with two civilian women to bribe JASON MAREK, a corrections officer for the Cook County Department of Corrections since May 2011, to bring marijuana, cigarettes, tobacco, alcohol, food and other contraband into the jail for inmates’ consumption and for further distribution within the jail, according to a three-count criminal complaint that was filed yesterday and unsealed today. 

According to the charges, an ounce of marijuana, which sells for approximately $200 outside the jail, could be sold for five times as much, or $1,000, inside the jail.

Marek, also known as “Murder” and “Murda,” 29, formerly of Orland Park, was assigned to the 3 to 11 p.m. shift at CCJ, Division 9, Tier 2H, when the alleged marijuana smuggling was thwarted on June 21, 2013.  He was arrested this morning and was released on his own recognizance after appearing before U.S. Magistrate Judge Jeffrey T. Gilbert in Federal Court.

Between June 15 and 24, 2013, three jail inmates – THADIEUS GOODS, PRINCE JOHNSON, and LAVANGELIST POWELL – who were housed in the same tier where Marek was assigned, allegedly conspired with two women to bribe Marek to smuggle the marijuana and other contraband into the jail.  During a recorded telephone call from the jail on June 15, 2013, Goods told his wife, PEARLISA STEVENSON, that, with her help, he had the opportunity to make some money by selling marijuana inside the jail as long as he also had a corrections officer willing to help him.

“Rooting out corruption in the Cook County Jail is a top priority of mine,” said Cook County Sheriff Thomas J. Dart.  “I’m thankful to our federal partners at the FBI and the U.S. Attorney’s Office for working closely with my staff to conduct such a thorough investigation and to charge this far-reaching case.”

  The arrests and charges were announced by Sheriff Dart, together with Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.  The investigation was a joint effort between the FBI and the Sheriff’s Office of Professional Responsibility, with Sheriff Dart’s full support, to improve the security and integrity within the Cook County Jail.

Goods, also known as “Big Weasy,” “Weasy,” and “Wang,” 36, of Calumet Park; Johnson, aka “Primo,” 32; and Powell, aka “JuJu” and “Juicy,” 22, both of Chicago, remain in state custody and will be transferred to face the federal charges on a date yet to be determined.

Stevenson, aka “Wang Wang,” 29, and NATOSHA McCOLLUM, aka “Tasha,” 21, who is Powell’s girlfriend, both of Chicago, were arrested this morning and were released on their own recognizance after appearing before Magistrate Gilbert.

Those six defendants ― Marek, Goods, Johnson, Powell, Stevenson, and McCollum ― were charged with conspiracy to possess with intent to distribute marijuana.

The seventh defendant, STEPHANIE LEWIS, 40, of Chicago, a “supervisor police operations” in the police dispatch group in the city of Chicago’s Office of Emergency Management and Communications, and who is Johnson’s girlfriend, was arrested last night.  She was charged with one count of illegally accessing a law enforcement computer to assist the alleged extortion and drug distribution conspiracy.  Lewis and three others ― Powell, Johnson, and McCollum ― were also charged with conspiracy to access a law enforcement computer to further extortion and a drug conspiracy.

Lewis was also released on her own recognizance.  Marek, Stevenson, McCollum, and Lewis were each ordered to return to court at 9:30 a.m. Friday for a status hearing before Magistrate Gilbert.

According to a 48-page complaint affidavit, Goods and Powell pre-sold marijuana to inmates within the CCJ.  In June 2013, inmates transferred funds to Stevenson and McCollum via the jail’s Inmate Trust Account system, allegedly to purchase marijuana and other contraband, which Goods, Powell, and Johnson expected to be brought into the jail.  After collecting the money from other inmates, McCollum and Stevenson discussed with Goods and Powell their efforts to purchase marijuana from drug dealers outside the jail.  Johnson and Lewis allegedly coordinated the delivery of contraband to Stevenson for delivery into the jail, and on June 21, 2013, Stevenson delivered the marijuana and other banned goods to Marek.  At the same time, McCollum and Stevenson paid Marek a $200 bribe to smuggle the contraband into the jail.  Marek attempted to deliver the marijuana to Goods but was intercepted by the FBI and the Sheriff’s Department’s Office of Professional Responsibility as he entered the jail.

After Marek failed to deliver the marijuana and contraband, Goods, Powell, and Johnson allegedly worked with McCollum and Lewis to obtain Marek’s home address and information about his family to threaten Marek and convince him to bring additional contraband into the jail.  Johnson allegedly contacted Lewis and, after informing her that Marek had accepted a bribe but failed to deliver the goods, asked Lewis to provide Marek’s personal information, including his home address and names of family members because Johnson and Goods planned to send their associates to Marek’s house.  After receiving Marek’s license plate number from McCollum, Lewis allegedly conducted an inquiry of Marek’s license plate on an OEMC computer linked to an Illinois State Police database, which queried the National Crime Information Center database, and Lewis then provided Marek’s home address to Johnson, the complaint alleges.

In June 2013, Good, Powell, and Johnson were housed in the jail’s Division 9, Tier 2H, where Marek was assigned for a 90-day rotation.  Tier 2H is located on the second floor of the south tower of Division 9, which is located at 2834 West 31st St., Chicago, and is comprised of two interconnected three-story buildings that house general population male inmates with a maximum security classification.

Each count of the complaint carries a maximum penalty of five years in prison and a $250,000 fine.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is being represented by Assistant United States Attorneys Megan Church and Michelle Nasser.

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

Source: justice.gov

ROCKFORD —(ENEWSPF)--Octobr 21, 2014.  A husband and wife, both formerly of Barrington Hills, Ill., were indicted today by a federal grand jury in Rockford on separate counts of making false statements in a bankruptcy case.  The indictment alleges that DANIEL APOSTOLOPOULOS, 52, and SOULA APOSTOLOPOULOS, 45, each filed a Chapter 7 Bankruptcy Petition, and fraudulently failed to disclose financial interests.

According to the indictment, on Oct. 23, 2009, Daniel Apostolopoulos filed a Chapter 7 bankruptcy Petition, and made false statements on a bankruptcy schedule and a Statement of Financial Affairs, both of which were filed under penalty of perjury.  Specifically, it is alleged that Apostolopoulos intentionally concealed his interest in a checking account, a Chicago restaurant, and property located in Wisconsin.  It is also alleged that Daniel Apostolopoulos failed to disclose his relationships with his father-in-law and sister-in-law, to whom he had transferred a Volvo and a Mercedes automobile within two years of filing, as well as concealing his prior ownership in other financial accounts.

The indictment further alleges that on March 4, 2010, Soula Apostolopoulos filed a Chapter 7 bankruptcy Petition, and made false statements on her Statement of Financial Affairs, filed under penalty of perjury.  According to the indictment, Soula Apostolopoulos fraudulently concealed income she received from her interest in a Chicago restaurant she previously purchased with her husband, as well as her interest in Wisconsin property and in financial accounts during the year preceding the filing of her bankruptcy.

Providing material false statements or documents under penalty of perjury in a bankruptcy case carries a maximum penalty of 5 years in prison, a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater.  The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years.  If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.

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

The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.

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

Source: justice.gov

Source: justice.gov

Chicago —(ENEWSPF)—October 23, 2014. Attorney General Lisa Madigan today announced the former chief executive officer of a Naperville-based adoption agency was sentenced to four and a half years in prison and ordered to pay $100,000 in restitution for stealing charitable funds for personal use.

Robert Geniesse, 52, was sentenced today by Judge George Bakalis in DuPage County Criminal Court. Geniesse was found guilty of theft, personal use of charitable trust funds, wire fraud and forgery while he served as CEO of Our Children’s Homestead.

While CEO of the charity, Geniesse was found to have used business credit cards for personal expenses in 2010 and 2011. Geniesse charged purchases to the charity, including expensive camera equipment, shopping trips to Neiman Marcus for cosmetics, home goods at Pottery Barn and Ethan Allen, a $600 trip to Binny’s Beverage Depot, and costly restaurant tabs, including a nearly $1,000 tab at Morton’s in Naperville. Geniesse also expensed lavish trips, including an outing to a Minnesota Vikings game, Chicago Bulls game, over $1,300 at Luxury Link in Los Angeles, and $3,800 in airline tickets overseas. None of the expenses were connected to his role as CEO of the organization.

“The defendant betrayed the charitable mission of the organization he led, instead choosing to enrich himself and steal from his group’s donors and the families who rely on its services,” Madigan said.

Geniesse fled to Germany in 2012 following Madigan’s indictment. He was convicted in an August bench trial after being extradited by the Federal Bureau of Investigation back to DuPage County.

Assistant Attorneys General Edward Snow and Albert Berry III and Associate Director James S. Dorger investigated and prosecuted the case for Madigan’s office.

Source: illinoisattorneygeneral.gov

Chicago —(ENEWSPF)—October 23, 2014. Attorney General Lisa Madigan announced charges today against two men on multiple counts of possessing, reproducing and disseminating child pornography as part of “Operation Glass House,” her statewide initiative to apprehend the most active offenders who download and trade child pornography online.

Earlier today, Madigan’s investigators and the Winnebago County Sheriff’s Office arrested Christopher Fitzgerald, 47, of Rockford, after executing a search warrant at his home. Fitzgerald was charged with eight counts of possession of child pornography, a Class 2 felony punishable by three to seven years in prison, and two counts of reproduction of child pornography, a Class X felony punishable by six to 30 years in prison.

On Wednesday, Jesse Hansen, 33, of Elgin, was arrested after investigators with Madigan’s office and the Elgin Police Department executed a search warrant at his home. Hansen was charged in Kane County with two counts of dissemination of child pornography, a Class X felony punishable by six to 30 years in prison, and two counts of possession of child pornography, a Class 2 felony punishable by three to seven years in prison.

“Possessing child pornography is not an innocent act but the perpetuation of a vicious crime,” Madigan said. “When these files are traded online, it only serves to revictimize the young victims. We will continue to be relentless in tracking down and apprehending these offenders.”

The arrests bring to a total of 71 for Operation Glass House, which Madigan launched in 2010 to investigate and arrest offenders trading child pornography online. The operation’s investigations are conducted by Madigan’s High Tech Crimes Bureau and have revealed a disturbing community of criminals who are trading and viewing extremely violent videos of children as young as infants being raped and abused.

Today’s operation was assisted by the Winnebago County Sheriff’s Office, and the Winnebago County State’s Attorney’s Office will prosecute the case.

“The act of possessing and viewing child pornography is not a victimless crime. The Office of the State’s Attorney takes these types of crimes seriously,” said Winnebago County State’s Attorney Joe Bruscato. “It is our duty as a prosecutor to use all means available to us to protect victims, both current and future.”

Wednesday’s operation was assisted by the Elgin Police Department, and the Kane County State’s Attorney’s Office will prosecute the case.

“Thanks to the Attorney General’s High Tech Crimes Bureau and the Elgin Police Department for their investigative work, and for working with us to bring these charges. These partnerships are invaluable in protecting the public from these filth peddlers,” said Kane County State’s Attorney Joe McMahon.

In addition to Operation Glass House, Madigan leads the Illinois Internet Crimes Against Children Task Force (ICAC) with a grant from the U.S. Department of Justice. The Task Force investigates child exploitation crimes and trains local and county level law enforcement agencies throughout Illinois to do the same. Since 2006, Madigan’s ICAC task force has been involved in 826 arrests of sexual predators. The task force has also provided Internet safety training and education to more than 372,000 parents, teachers and students and nearly 18,000 law enforcement professionals.

The public is reminded that the defendant is presumed innocent until proven guilty in a court of law.

Source: Illinoisattorneygeneral.gov

CHICAGO —(ENEWSPF)--October 24, 2014.  An Illinois lawyer and Internet radio talk show host was convicted today on federal charges for engaging in two mortgage fraud schemes that defrauded lenders of a total of approximately $9.7 million.  The defendant, WARREN BALLENTINE, schemed with others to obtain more than two dozen fraudulent mortgage loans and represented buyers at multiple closings, knowing that they were fraudulently qualified for loans to purchase homes in Chicago and various southern suburbs.   

Ballentine, 43, of Durham, N. Car., and formerly of Country Club Hills, owned the Law Office of Warren Ballentine, LLC, in Country Club Hills.  He was found guilty of two counts of bank fraud, two counts of making false statements to lenders, and one count each of mail fraud and wire fraud by a jury that deliberated less than an hour total late yesterday and today following a trial that began Monday in U.S. District Court.

Ballentine remains free on bond pending sentencing, which was set for Jan. 21, 2015, before U.S. District Judge Matthew Kennelly.  Ballentine faces a maximum penalty on each count of 30 years in prison and a $1 million fine or an alternate fine of twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory.  Ballentine is also subject to forfeiture of more than $9.7 million.

The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

According to the evidence, between December 2004 and February 2005, Ballentine schemed with others to fraudulently cause various lenders to make at least eight loans totaling approximately $3.6 million by making false statements in loan documents, including applications, HUD-1 settlement statements, and occupancy statements concerning the buyers’ intention to occupy the homes they purchased as a primary residence.  Ballentine then represented buyers recruited by others at real estate closings, knowing that they had signed and submitted false documents and had been fraudulently qualified to purchase the properties in Chicago, Monee, Woodridge, and Mokena.

Between February 2005 and May 2006, Ballentine engaged in a similar, separate scheme with others to fraudulently cause various lenders to make at least 20 loans totaling approximately $6.1 million by making false statements in mortgage documents, including the buyers’ intention to occupy the homes as a primary residence.  Ballentine also represented these buyers at closings, knowing that they had been fraudulently qualified for the loans based on false documents, including some that Ballentine advised them to sign at closings.  These homes were scattered throughout Chicago and other suburbs, including Country Club Hills, Richton Park, and Markham.

The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.

The government is being represented by Assistant U.S. Attorneys Jason Yonan and Andrew S. Boutros.

Source: justice.gov