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29 Defendants Facing State or Federal Charges for Alleged Roles in ‘Cracking Cards Schemes Costing Banks Millions of Dollars

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CHICAGO —(ENEWSPF)--October 30, 2014.  Twenty-nine northern Illinois and Indiana defendants are facing state or federal charges following a coordinated investigation of “cracking cards,” a scheme that costs banks millions of dollars and has its roots on Chicago’s south side and is spreading to other cities through rap music and social media. Six Indiana defendants include four men who are part of a group that has posted Internet rap videos referring to the cracking cards scheme and displaying large amounts of cash and expensive items, according to the charges announced today.

Federal agents and local law enforcement officers from the U.S. Postal Inspection Service, FBI, IRS Criminal Investigation Division, FDIC and U.S. Department of Labor Offices of Inspector General, the Chicago Police Department, and the Sheriff’s Offices of Cook and DeKalb counties began arresting the defendants yesterday. Sixteen are facing federal bank fraud charges in Federal Court in Chicago; six are facing federal charges in U.S. District Court in Hammond, Ind., and seven are facing state charges brought by the Cook County State’s Attorney’s Office.

Since at least 2011, the defendants and other individuals allegedly deposited counterfeit checks into banking accounts belonging to third parties who willingly or unwillingly surrendered their debit cards and PINs for use in the cracking cards schemes. The defendants then allegedly used automated teller machines or point of sale terminals at currency exchanges and retail stores to withdraw or spend funds that the banks advanced to the third-party accounts before learning that the deposited checks were bogus. The banks lost money they advanced to the account holders when the customers denied responsibility for the withdrawals and purchases.

Cracking cards schemes have become a popular method of obtaining illicit funds in Chicago and surrounding areas. The schemes often involve numerous participants, including some individuals affiliated with Chicago street gangs, the charges allege. Schemers use various methods to recruit bank customers to give up their debit cards and PINs, including approaching individuals at parties, schools, or on the street, and using social media outlets, such as Instagram and Facebook, to advertise opportunities for making fast cash by sharing a portion of the fraud proceeds.

“Our purpose today is to warn bank customers that fast cash schemes are usually too good to be true and they should always safeguard their account information, and, at the same time, we are putting those persons who engage in this type of illegal activity on notice that debit card fraud can result in serious state or federal charges, which carry severe penalties and consequences,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.

“Over the last three years, the United States Postal Inspection Service and other federal, state, and local law enforcement agencies, have conducted this major bank fraud investigation involving ‘cracking cards.’ The charges allege that defendants knowingly deposited fraudulent checks intending to defraud banks and their customers. The Postal Inspection Service is committed to working together with the banking industry to protect the public and preserve its trust in the U.S. mail and banking system,” said Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.

According to the federal charging documents, after schemers obtained a debit card and PIN for a bank customer’s account, they manufactured or purchased one or more counterfeit checks to deposit into the account. The bogus checks often contained legitimate bank account and routing numbers that belonged to the accounts of actual businesses. Certain individuals developed a reputation for “making paper,” that is, making, printing, and selling counterfeit checks. The schemers then deposited, or recruited someone else to deposit, the counterfeit checks into the third party’s bank account, typically via an ATM transaction. The schemers then waited for the bank to credit the purported funds from the counterfeit check, usually within hours of the deposit, after which they often attempted a small ATM withdrawal of $100 or more to determine whether an account was credited with the advanced funds. If the transaction succeeded, schemers went to an ATM, a currency exchange, or point-of-sale terminal at a retail store to withdraw or spend the remaining funds that the bank advanced to the third-party account.

One defendant, MATTHEW MOSLEY, 26, of Chicago, allegedly “made paper,” that is, he manufactured counterfeit checks, which he used and sold to others in cracking cards schemes. Mosley was arrested yesterday and charged with bank fraud for allegedly causing banks to lose more than $32,000 in funds he withdrew after depositing counterfeit checks.

Mosley was one of 16 defendants charged with bank fraud in separate criminal complaints filed in U.S. District Court in Chicago. These 16 defendants allegedly caused bank losses totaling more than $1.7 million, with individual defendants responsible for amounts ranging from $26,000 to $260,000. Five of these defendants were arrested yesterday, one was already in custody, and arrest warrants were issued for 10 others.

Six other defendants were charged with conspiracy to commit bank fraud in a criminal complaint filed in U.S. District Court in Hammond. These defendants allegedly caused thousands of dollars in bank losses. Five of the six were arrested yesterday and remain in custody while the sixth was already in state custody. All six are scheduled to appear tomorrow morning in Federal Court in Hammond.

Four of these defendants ― KEVIN FORD, 26, of Chicago; CORTEZ STEVENS, 24, of Griffith, Ind.; STEPHEN GARNER, 23,of Portage, Ind.; and MIKCALE SMALLY, 21, of Chicago ― are identified in the complaint as part of a group that called themselves “R.A.C.K. Boyz,” “Rack Boyz,” or “TheRackBoyz.” The other two defendants, MERCEDES HATCHER, 21, of Danville, Ill., and BRITTANY SIMS, 24, of Portage, Ind., were identified as Ford’s and Garner’s girlfriends, respectively.

The RACK Boyz have Facebook and Twitter accounts and post videos on YouTube, including a rap video entitled, “For the Money,” which refers to cracking cards and shows the defendants wearing RACK Boyz shirts and displaying large amounts of cash, according to the complaint affidavit. Ford is also associated with a different so-called “money team,” known as BandKlan, which also has rap videos posted on YouTube.

The complaint alleges that the defendants use social media to recruit people with bank accounts or who will open bank accounts to use in the cracking cards scheme. They allegedly sent out numerous private messages and posted messages on their Facebook walls inviting people to participate in the scheme. The charges allege that the defendants were linked to numerous withdrawals from third-party bank accounts after counterfeit checks were deposited.

Ford also allegedly “made paper,” by printing fraudulent checks, and, on Oct. 20, Ford allegedly posted threats to law enforcement officers on his Facebook wall.

Seven defendants were arrested yesterday and today on state charges filed by the Cook County State’s Attorney’s Office. They are: RAPHAEL FOX, 23, of Chicago; TIERRE McKNIGHT, 19, of Country Club Hills; DONOVAN GRICE, 22, of Dolton; ROYTRELL LONG, 20, of Matteson; LAKEYA SHAMBLEY, 23, of Chicago; MICHAEL BONDS, 26, of Dolton; and ANTONIO CHAVIS, Jr., 21, of Chicago. Each was charged with continuing financial crimes enterprise, financial institution fraud, wire fraud, and Long, alone, was also charged with forgery.

In addition to Matthew Mosley, the remaining 15 Chicago federal defendants (all of Chicago unless noted otherwise) and the amounts of their alleged frauds are: DONNIVAN ALLEN, 25, $196,000; TYRONE BULLOCK, 25, $260,000; DURRAN DAVIS, 29, $90,000; SAMAJE DAVIS, 26, $140,000; MICHAEL GREEN, 27, $61,000; DAVEY HINES, 21, $85,000; CHESTER JACKSON, 23, $26,000; ANTWAN D. KINERMAN, 23, of Markham, $45,000; DENNIS MITCHELL, 26, of Hammond, $50,000; PAIGE PARKER, 24, $85,000; KEVIN THUNDERBIRD, 28, $45,000; RASHEED THURMAN, 28, $200,000; JAVON TURNER, 21, $70,000; MAHLIK WASHINGTON, 22, $100,000; and BLAKE WILLIAMS, 30, of Schaumburg, $230,000.

The charges identify Citibank, US Bank, JP Morgan Chase, Bank of America, and others as being among the victims of the schemes.

As a result of this investigation, CHRISTOPHER CAIN, 26, of Chicago, was charged previously with bank fraud in U.S. District Court in Chicago. Cain, who was the first defendant charged with card-cracking, pleaded guilty, admitting that he was responsible for bank losses totaling $184,877. Earlier this month, Cain was sentenced to five years in federal prison.

The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; David A. Capp, United States Attorney for the Northern District of Indiana; Anita Alvarez, Cook County State’s Attorney; Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; W. Jay Abbott, Special Agent-in-Charge of the Indianapolis Division of the Federal Bureau of Investigation; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division; Joe Moriarty, Special Agent-in-Charge of the Federal Deposit Insurance Corporation Office of Inspector General; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General; Garry McCarthy, Superintendent of the Chicago Police Department; Thomas Dart, Cook County Sheriff; and Roger A. Scott, DeKalb County Sheriff. Fraud investigators from several banks assisted in the investigation.

The 16 federal defendants in Chicago were each charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison and a $1 million fine. The six federal defendants in Hammond were each charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence 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.

 

In the federal cases, the government is being represented in Chicago by Assistant United States Attorneys Kate Zell, Sunil Harjani, Elizabeth Pozolo, and Special Assistant U.S. Attorney Heidi Manschreck. In Hammond, the government is being represented by Assistant United States Attorney Diane Berkowitz. The state case is being prosecuted by the Public Corruption and Financial Crimes Unit of the Cook County State’s Attorney’s Office.

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


Former Northwestern Physician To Pay The United States $475,000 To Settle Cancer Research Grant Fraud Claims

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CHICAGO —(ENEWSPF)--October 30, 2014.  A former cancer research physician at Northwestern University’s Robert H. Lurie Comprehensive Center for Cancer in Chicago will pay the United States $475,000 to settle claims of federal research grant fraud.  Dr. Charles L. Bennett agreed to the settlement in a federal False Claims Act lawsuit that was first made public last year after the government investigated the claims made by a former employee and whistleblower who will receive a portion of the settlement.

In July 2013, Northwestern University agreed to pay the United States $2.93 million to settle identical claims against the university.  Northwestern, which fully cooperated during the investigation, did not admit liability as part of the settlement.

In a settlement agreement filed today in U.S. District Court, Dr. Bennett, of Columbia, S. Car., also did not admit liability, nor did the government concede that its claims were not well-founded.

In a lawsuit filed in January this year, the government contended that Dr. Bennett submitted false claims under research grants from the National Institutes of Health.  The settlement covers improper claims that Dr. Bennett submitted for reimbursement from the federal grants for professional and consulting services, food, hotels, travel, conference registration fees, and other expenses that benefited Dr. Bennett, his friends, and family from Jan. 1, 2003, through Aug. 31, 2010.

The allegations were initially made in a civil lawsuit filed under seal in 2009 by Melissa Theis, who in 2007 and 2008 worked as a purchasing coordinator in hematology and oncology at Northwestern’s Feinberg School of Medicine.  She will receive $80,750 from the settlement with Dr. Bennett, and earlier she received $498,100 from the settlement with Northwestern.  Her suit, which the government later settled on her behalf, alleged that the defendants submitted false claims to the United States when Dr. Bennett and others directed and authorized the spending of grant funds on goods and services that did not meet applicable NIH and government grant guidelines.

The allegations were investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the National Institutes of Health, and the U.S. Attorney’s Office.  The government contended Northwestern improperly submitted claims to NIH for grant expenditures for items that were for the personal benefit of Dr. Bennett, his friends and family that were incurred in connection with grants as to which he was the principal investigator.

The settlement with Dr. Bennett resolves the remaining claims and effectively ends the litigation.  The agreement reserves the authority of any federal agency, including HHS, to take any administrative action, such as suspending or debarring Dr. Bennett from receiving future research grants.  United States v. Charles L. Bennett, M.D., No. 09 C 1943 (N.D. Ill.).

Dr. Bennett agreed to pay the settlement by Dec. 1, 2014.  The agreement covers allegations that false claims were submitted to NIH for costs that Dr. Bennett incurred on his grant-funded research projects involving adverse drug-events, multiple myeloma drugs, a blood disorder known as thrombotic thrombocytopenic purpura, and quality of care for cancer patients.  Dr. Bennett allegedly billed those federal grants for family trips, meals and hotels for himself and friends, and “consulting fees” for unqualified friends and family members, including his brother and cousin.

The settlement with Dr. Bennett was announced by the United States Attorney’s Office for the Northern District of Illinois, the U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region, and the Chicago Office of the Federal Bureau of Investigation.

The United States was represented by Assistant U.S. Attorney Kurt N. Lindland.

Source: justice.gov

Attorney General Madigan: New Charges Against Premier Bank Board Members in Criminal Fraud Scheme

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Attorney General Alleges Fraud by Former Board Members of Wilmette Bank against U.S. Treasury Fund, First Midwest Bank

Chicago —(ENEWSPF)—November 3, 2014. On Friday, Attorney General Lisa Madigan joined with the Special Inspector General for the U.S. Department of the Treasury’s Troubled Asset Relief Program (TARP) to announce new charges against two former members of the board of directors of the Wilmette-based Premier Bank for defrauding First Midwest Bank and the Department of Treasury’s Community Development Financial Institutions Fund.

Madigan announced the new charges against Zulfikar Esmail and his wife Shamim Esmail, both of Evanston, following indictments last year for a scheme to defraud TARP of $6.8 million and which cost the FDIC $64.1 million when the bank failed on March 23, 2012. The new charges allege more fraud was committed during the pair’s time on the Premier Bank board – an $8.1 million loan from First Midwest Bank in 2009 and additionally, Shamim Esmail’s obtaining more than $1 million in TARP funds reserved for banks in distressed communities.

“As these new charges allege, the defendants fraudulently secured federal aid funds at a time when the country’s economy and its major financial institutions were on the brink of disaster,” Madigan said. “Their illegal scheme ultimately resulted in the failure of the bank at a great cost to the bank’s customers and American taxpayers.”

Zulfikar Esmail was indicted on Oct. 16 in DuPage County on two counts of financial institution fraud and one count of loan fraud for fraudulently obtaining a more than $8 million loan from First Midwest Bank in 2009, which was a recipient of TARP funds. The Esmails were charged together with defrauding First Midwest Bank in a workout agreement after they defaulted on the loan.

Shamim Esmail was also indicted on additional charges in Cook County of two counts each of theft and wire fraud for defrauding TARP’s Community Development Financial Institutions (CDFI) Fund. Premier Bank fraudulently received more than $1 million in funds in 2010 and 2011 from two programs under the CDFI Fund which were designed to assist banks in providing banking services to economically distressed communities.

Madigan previously charged the Esmails and two co-defendants, who were also members of the bank’s board of directors, alleging that from 2006 until the bank’s failure, they hid the poor financial condition of the bank from state regulators. Madigan alleged Zulfikar Esmail engaged in a criminal shakedown scheme, soliciting and demanding bribes in connection with applications made for business loans and lines of credit.

Over a six-year period, the indictment alleged the bank officers submitted numerous fraudulent reports to the Illinois Department of Financial and Professional Regulation, misrepresenting the financial condition of the bank’s numerous loans and lines of credit. To cover up the true condition of the bank, the indictment alleged money from third parties was used to make payments on several loans that were past due, including payments from a limited liability corporation owned in part by Zulfikar Esmail’s children.

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

This case was investigated by the Office of the Special Inspector General for TARP and the Office of the Inspector General of the FDIC. Bureau Chief Edward Carter and Assistant Attorneys General Edward Snow and Anshuman Vaidya are handling prosecution of the case for Madigan’s Special Prosecutions Bureau.

Source: illinoisattorneygeneral.gov

Former Lansing Man Sentenced To Nearly 20 Years In Prison For Attempting To Persuade A Minor To Engage In Sexual Conduct

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CHICAGO ―(ENEWSPF)--November 4, 2014.  A former south suburban Lansing man was sentenced to nearly 20 years in federal prison for attempting to persuade an individual he believed was a 14-year-old girl to engage in illegal sexual conduct.  The defendant, MARTIN N. PAZDZUIRA, 47, formerly of Lansing, who has been in custody since he was arrested on federal charges in 2012, pleaded guilty in April of this year to one count of using the Internet to attempt to persuade an individual he believed was a minor to engage in illegal sexual conduct.

“Thank goodness it was law enforcement posing as ‘Emily,’ and not Emily,” U.S. District Judge Amy J. St. Eve said in imposing a sentence of 235 months, or 19 years, 7 months, yesterday in U.S. District Court.  The judge also ordered Pazdzuira placed on court supervision for life following his release from prison. 

Using the Internet to entice a minor to engage in illegal sexual conduct carries a mandatory minimum sentence of 10 years in prison and a maximum of life.

In pleading guilty, Pazdzuira admitted that he frequently used the Internet to chat with underage girls.  In August 2012, he began chatting with “Emily,” who he believed was 14, and told “Emily” that he was 16 years’ old.  In further chats, Pazdzuira made plans to meet “Emily” and take her to a hotel in Indiana to engage in illicit sexual conduct.  He was arrested when he showed up to meet “Emily,” who, unbeknownst to him, was an undercover law enforcement officer posing as a minor girl.

Pazdzuira has two prior convictions for child sexual exploitation offenses.  In 1995, he was convicted of aggravated criminal sexual abuse involving an 8-year-old child, and in 2005, he was convicted of possession of child pornography.

The sentence was announced today 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 government was represented at sentencing by Assistant U.S. Attorney April Perry.

The investigation was conducted by the FBI’s Child Exploitation Task Force.  The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States.  In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office.

Source: justice.gov

Suburban Chicago Man Sentenced To 37 Months In Prison For Failing To Pay Taxes On $3.1 Million In Income Over Eight Years

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CHICAGO —(ENEWSPF)--November 6, 2014.  A southwest suburban man was sentenced to just over three years in federal prison for failing to report more than $3.1 million in gross receipts and gambling income and failing to pay more than $582,000 in federal income taxes.  The defendant, PAUL WEST, was sentenced after pleading guilty in August of this year to two counts of filing a false federal income tax return.

West, 62, of Lockport and formerly of Frankfort, also known as “Thomas Wilson,” and “Tom Wilson,” was in the business of selling materials for recycling, including scrap cardboard.  In 2007 and 2011, West under-reported his income from his recycling services and gambling, reporting that he owed little or no taxes.  For six other years between 2004 and 2011, he failed to file any individual income tax returns, despite gross receipts and gambling income over all eight years totaling $3,190,741.   

West was sentenced to 37 months in prison and ordered to pay $582,934 ― the amount of taxes he owed ― in restitution to the Internal Revenue Service.  U.S. District Judge Andrea R. Wood, who imposed the sentence last Friday in Federal Court, ordered West to begin serving his sentence on Jan. 15, 2015.

“West’s tax crimes wrongfully undermine our tax system and its fundamental premise of voluntary and truthful compliance,” Assistant U.S. Attorney Kaarina Salovaara argued at the sentencing.

The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.

In addition to criminal penalties, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed. 

Source: justice.gov

Chicago Man Indicted On Federal Charges For Allegedly Illegally Selling And Possessing Firearms

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CHICAGO ― A Chicago man was indicted on federal firearms charges alleging that he illegally sold firearms and illegally possessed nearly two dozen firearms, including assault rifles, handguns, and shotguns earlier this year.  All of the firearms were seized by ATF agents following alleged purchases by an undercover confidential source, federal law enforcement officials announced today.

The defendant, JIMMY WRIGHT, also known as “Lil Man,” 28, of Chicago, was charged with one count of selling firearms without a federal firearms dealer license and eight counts of being a convicted felon-in-possession of 22 firearms in a nine-count indictment returned yesterday by a federal grand jury.

Wright has remained in federal custody since he was arrested on Oct. 7 and charged in a criminal complaint.  He will be arraigned on a date to be determined in U.S. District Court in Chicago.

According to the charges, between July 21 and Sept. 22, 2014, Wright illegally sold firearms without a federal license.  According to the complaint affidavit, the confidential source purchased at least 12 firearms from Wright on six different dates between July 22 and Sept. 2.  These firearms included two assault rifles, seven handguns, two shotguns, and a “Tec 9” semi-automatic handgun with an obliterated serial number and an extended magazine.

The eight felon-in-possession counts allege that Wright illegally possessed a total of 22 firearms on eight different dates between July 22 and Sept. 22 of this year.

The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Garry McCarthy, Superintendent of the Chicago Police Department.

Each count of being a felon-in-possession of firearms carries a maximum sentence of 10 years in prison, and selling firearms with a federal license carries a maximum sentence of five years in prison, and all nine counts carry a maximum fine of $250,000.  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 U.S. Attorney Timothy Storino.

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.    

Related Material:

Indictment

Source: justice.gov

Suburban Chicago Man Sentenced To 37 Months In Prison For Failing To Pay Taxes On $3.1 Million In Income Over Eight Years

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CHICAGO —(ENEWSPF)--November 6, 2014.  A southwest suburban man was sentenced to just over three years in federal prison for failing to report more than $3.1 million in gross receipts and gambling income and failing to pay more than $582,000 in federal income taxes.  The defendant, PAUL WEST, was sentenced after pleading guilty in August of this year to two counts of filing a false federal income tax return.

West, 62, of Lockport and formerly of Frankfort, also known as “Thomas Wilson,” and “Tom Wilson,” was in the business of selling materials for recycling, including scrap cardboard.  In 2007 and 2011, West under-reported his income from his recycling services and gambling, reporting that he owed little or no taxes.  For six other years between 2004 and 2011, he failed to file any individual income tax returns, despite gross receipts and gambling income over all eight years totaling $3,190,741.   

West was sentenced to 37 months in prison and ordered to pay $582,934 ― the amount of taxes he owed ― in restitution to the Internal Revenue Service.  U.S. District Judge Andrea R. Wood, who imposed the sentence last Friday in Federal Court, ordered West to begin serving his sentence on Jan. 15, 2015.

“West’s tax crimes wrongfully undermine our tax system and its fundamental premise of voluntary and truthful compliance,” Assistant U.S. Attorney Kaarina Salovaara argued at the sentencing.

The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.

In addition to criminal penalties, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed. 

Source: justice.gov

Chicago Man Indicted On Federal Charges For Allegedly Illegally Selling And Possessing Firearms

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CHICAGO ― A Chicago man was indicted on federal firearms charges alleging that he illegally sold firearms and illegally possessed nearly two dozen firearms, including assault rifles, handguns, and shotguns earlier this year.  All of the firearms were seized by ATF agents following alleged purchases by an undercover confidential source, federal law enforcement officials announced today.

The defendant, JIMMY WRIGHT, also known as “Lil Man,” 28, of Chicago, was charged with one count of selling firearms without a federal firearms dealer license and eight counts of being a convicted felon-in-possession of 22 firearms in a nine-count indictment returned yesterday by a federal grand jury.

Wright has remained in federal custody since he was arrested on Oct. 7 and charged in a criminal complaint.  He will be arraigned on a date to be determined in U.S. District Court in Chicago.

According to the charges, between July 21 and Sept. 22, 2014, Wright illegally sold firearms without a federal license.  According to the complaint affidavit, the confidential source purchased at least 12 firearms from Wright on six different dates between July 22 and Sept. 2.  These firearms included two assault rifles, seven handguns, two shotguns, and a “Tec 9” semi-automatic handgun with an obliterated serial number and an extended magazine.

The eight felon-in-possession counts allege that Wright illegally possessed a total of 22 firearms on eight different dates between July 22 and Sept. 22 of this year.

The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Garry McCarthy, Superintendent of the Chicago Police Department.

Each count of being a felon-in-possession of firearms carries a maximum sentence of 10 years in prison, and selling firearms with a federal license carries a maximum sentence of five years in prison, and all nine counts carry a maximum fine of $250,000.  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 U.S. Attorney Timothy Storino.

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.    

Related Material:

Indictment

Source: justice.gov


Illinois Department of Insurance Announces Multi-State Settlement with Sun Life

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Illinois will share part of a $3.2 million penalty against Sun Life regarding payment of Life Insurance Benefits

CHICAGO --(ENEWSPF)--November 13, 2014.  Illinois Department of Insurance (DOI) Director Andrew Boron today announced an agreement with the Sun Life Companies (Sun Life) regarding its use of the Social Security Administration’s Death Master File (DMF) as part of a multi-million dollar settlement with several states. Under the settlement, Sun Life will change business practices related to the payment of life insurance benefits and will pay $3.2 million to states that are party to the settlement.

The Regulatory Settlement Agreement stems from multi-state market conduct examinations of the forty largest life insurers regarding the timely payment of proceeds to beneficiaries of life insurance policies and annuities.  These examinations were led by Illinois, along with California, Florida, New Hampshire, North Dakota, and Pennsylvania. Florida served as the managing lead state of the Sun Life examination.  With this settlement more than 60% of the total market has agreed to business reforms to properly and fairly use the DMF.  Additionally, the companies have paid more than $1 billion to beneficiaries. 

“We’re pleased that SunLife has agreed to fundamentally change its business practices to proactively seek, locate and pay beneficiaries,” said DOI Director Andrew Boron.  “This agreement reflects a joint commitment by state insurance regulators to protect consumers in the payments of benefits rightfully owed.”
     
Under the agreement, Sun Life will compare all company records against the DMF Update File every month and against the complete DMF file at least annually to identify matches for potential unclaimed death benefits. These business practices will help the company to promptly identify when an insured has died and to make payments to the rightful beneficiary.

The agreement becomes effective after 20 states sign on to the agreement.  Illinois, along with California, Connecticut, Florida, Michigan, New Hampshire, North Dakota, and Pennsylvania have already signed.

The agreement with SunLife includes the Sun Life Assurance Company of Canada, Delaware Life Insurance Company (formerly known as Sun Life Assurance Company of Canada (U.S.)), Independence Life and Annuity Company, Professional Insurance Company, Sun Life & Health Insurance Company (U.S.), and Delaware Life Insurance Company of New York (formerly known as Sun Life Insurance and Annuity Company of New York).

A copy of the settlement agreement is available on the DOI website at http://insurance.illinois.gov/Home/ImpLinks.asp. Consumers with questions regarding this settlement, or questions or concerns about their insurance, should contact the Department’s Consumer Division at http://insurance.illinois.gov or call 866-445-5364.

Source: illinois.gov

Attorney General Madigan Sues Unlicensed Belleville Roofer

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Chicago —(ENEWSPF)—November 13, 2014. Attorney General Lisa Madigan today filed a lawsuit against a Belleville man for operating as an unlicensed roofer and collecting at least $12,000 in payments from Illinois homeowners for performing shoddy work that did not fix repairs or, in some cases, failing to do any repair work at all.

Madigan’s lawsuit was filed in St. Clair County Circuit Court alleging Mark Beaupre was an unlicensed roofing contractor who solicited area homeowners for roof and other home repair work through CMM Construction, which is not registered as a business in Illinois.

The lawsuit alleges Beaupre solicited St. Clair County residents for repair work. According to the complaint, Beaupre repeatedly completed shoddy repair work or did no work at all and refused to provide refunds to consumers despite their demands.

“When a contractor takes a homeowner’s hard-earned money and does little or no work, that is a violation of the law,” Madigan said.

Madigan’s lawsuit seeks to ban Beaupre from working in Illinois and provide restitution to his customers.

Assistant Attorney General Christine McClimans is handling the case for Madigan’s Consumer Fraud Bureau.

Source: Illinoisattorneygeneral.gov

Blue Island Man Receives Five Year Prison Sentence for Unemployment Fraud

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Restitution of $234,000 Ordered After IDES Investigation

CHICAGO --(ENEWSPF)--November 14, 2014.  A Blue Island man was sentenced to five years in prison and ordered to pay $234,000 to the Illinois Department of Employment Security for defrauding the unemployment insurance program. IDES’ anti-fraud efforts initiated the investigation that led to the federal conviction.

“Actions speak louder than words. This is another example that shows that when we talk about fighting fraud and abuse, we really mean it,” IDES Director Jay Rowell said. “This is not a victimless crime. Stealing from the unemployment program is no different than had the criminals reached directly into the pockets of every worker and employer in Illinois.”

According to federal records, Durand Osborne, 40, led three others in a fictitious employer scheme. A fake company was created so that fake employees could be paid unemployment insurance. Once identified by IDES, and working with federal officials from the U.S. Department of Labor and U.S. Postal Inspection Service, the fraud was allowed to continue and tracked so that a criminal case strong enough to secure a conviction could be built. Had IDES not detected the fraud, Osborne and his crew could have bilked taxpayers out of approximately $880,000.

U.S. Northern District Court Judge Rebecca Pallmeyer sentenced Osborne this week after a guilty plea to mail fraud. The fraud occurred between 2009 and 2011. The U.S. Department of Justice case number is 13CR561.

Unemployment insurance taxes pay for benefits that workers receive when they are laid off through no fault of their own. In Illinois, the taxes support 26 weeks of unemployment benefits. Operational funding for IDES – dollars used to pay salaries and utilities, for example – come from federal funds through the U.S. Department of Labor, not from unemployment insurance taxes nor from the state’s general revenue budget in Springfield.

IDES is committed to fighting fraud. It pursues fraud cases in criminal and civil courts at the local, state and federal level. The Department cooperates with outside prosecutors and has an anti-fraud unit with attorneys from Illinois Attorney General Lisa Madigan’s office.

Source: illinois.gov

Chicago Man Charged With Additional Bank Robberies In Huntley And Peotone

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ROCKFORD —(ENEWSPF)--November 18, 2014.  A Chicago resident is now facing three federal bank robbery charges, federal officials announced today.  ADAM A. SANBORN, 29, of Chicago and formerly of Milton, Florida, was originally arrested on Sept. 10, 2014, and charged with the Aug. 23, 2014, robbery of the Byron Bank in Davis Junction, Illinois.  The federal grand jury in Rockford returned an indictment against Sanborn on Sept. 23, 2014, charging him with that robbery.

Today, 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 that the federal grand jury in Rockford returned a superseding indictment charging Sanborn with the robbery of the Byron Bank as well as the robbery of the First Community Bank and Trust in Peotone, Illinois, on Feb. 24, 2014, and the robbery of the Heartland Bank in Huntley, Illinois, on April 25, 2014.  Sanborn will appear before U.S. Magistrate Judge Iain D. Johnston on Nov. 20, 2014, at 11:00 a.m. and be arraigned on all three charges contained in the superseding indictment.  Sanborn has remained in custody since his initial arrest on Sept. 10, 2014.

United States Attorney Fardon praised the teamwork of the FBI and the Ogle County Sheriff’s Office, Huntley Police Department, and the Peotone Police Department in conducting the investigation.

Each bank robbery charge carries a maximum sentence of 20 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 U.S. Attorney John G. McKenzie.

The public is reminded that a superseding 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 will have the burden of proving guilt beyond a reasonable doubt.

Source: justice.gov

Rockford Man Sentenced To 14 Years In Prison For Drug Trafficking

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ROCKFORD —(ENEWSPF)--November 18, 2014.  A Rockford, Ill. man was sentenced yesterday in federal court by U.S. District Judge Frederick J. Kapala on a federal drug trafficking charge.  The defendant, MICHAEL CRAIG, 44, was sentenced to 169 months in federal prison, to be followed by 5 years of supervised release.  Craig has been in federal custody since his arrest on March 15, 2013.

Craig pleaded guilty to the charge on March 21, 2014.  According to the written plea agreement, from June 1, 2010 through January 5, 2012, Craig ran a heroin trafficking organization in Rockford and conspired with his co-defendants, Michael W. Charles, Elbert Charles Dixon, Melvin Bradley, Denise Lambert, Devon Zachary and Jose Melendez, to distribute more than 1 kilogram of heroin.  The plea agreement noted that Craig and Melendez pooled their money and traveled together to obtain heroin from their suppliers in Chicago and that Craig then provided the heroin to Charles, Dixon, Zachery and others to distribute in Rockford.  The plea agreement further noted that Lambert aided Craig in his heroin trafficking operation by storing Craig’s heroin and heroin trafficking proceeds at her apartment in Rockford. Craig also admitted as part of the plea agreement that he directed Charles and Dixon to distribute heroin to a witness who was secretly cooperating with law enforcement on two occasions in June 2011.  Craig was also ordered to repay $2,300 in Abuy@ money used in the undercover operation.

Co-defendants Charles, Dixon, Bradley Lambert, Zachary and Melendez all previously pleaded guilty to conspiring to distribute heroin.  On May 28, 2014, Charles was sentenced to 151 months’ imprisonment.  On May 23, 2014, Dixon was sentenced to 70 months’ imprisonment.  On May 9, 2014, Bradley was sentenced to 18 months’ imprisonment.  On May 6, 2014, Zachery was sentenced to 124 months’ imprisonment.  On November 13, 2014, Jose Melendez was sentenced to 135 months imprisonment.  Lambert is awaiting sentencing and is facing a maximum sentence of 20 years’ imprisonment, in addition to a maximum fine of up to $1 million for her involvement in the conspiracy.  The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The sentencing 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; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, & Explosives; Richard Meyers, Winnebago County Sheriff; Chet Epperson, Chief of the Rockford Police Department; and Hiram Grau, Director of the Illinois State Police.

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

Source: justice.gov

Chicago Police Officer Indicted For Alleged Civil Rights Excessive Force Violation And Obstruction Of Justice

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CHICAGO ―(ENEWSPF)--November 19, 2014.  A Chicago Police officer was indicted on federal civil rights and obstruction charges alleging that he used excessive force by punching and kicking a victim and then lied in a police report to cover up the incident in 2012, federal law enforcement officials announced today.  The defendant, ALDO BROWN, was indicted on one count of violating the unnamed victim’s civil rights to be free from unlawful seizures and the use of unreasonable force by a law enforcement officer and two counts of obstruction of justice.

Brown, 37, joined the Chicago Police Department in December 2002.  He will be arraigned on a date yet to be scheduled in U.S. District Court.

The three-count indictment was returned by a federal grand jury yesterday and was announced today 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 Independent Police Review Authority cooperated with and assisted in the investigation.

According to the indictment, on Sept. 27, 2012, Brown and Officer A entered a convenience store located on East 76th Street in Chicago.  When they arrived, the officers placed certain individuals inside the store in handcuffs, including Victim A.  Brown and Officer A then began searching the store and the individuals inside.  Shortly after Officer A removed the handcuffs from Victim A, Brown allegedly struck Victim A multiple times, resulting in bodily injury.

While Victim A was lying face down on the floor of the store, again in handcuffs, Brown recovered a firearm from Victim A’s rear pants pocket.  Then, while Victim A was still handcuffed and lying face down, Brown allegedly kicked Victim A.  Brown and Officer A then arrested Victim A.

One obstruction of justice count alleges that Brown made false statements in a tactical response report, including that Victim A was an “active resister,” who “fled” and “pulled away,” but the report did not indicate that Brown punched or kicked Victim A.  Brown allegedly knew that Victim A did not actively resist, attempt to flee the situation, or pull away, and Brown knew that he punched and kicked Victim A.

The second obstruction count alleges that Brown lied in an arrest report, which falsely stated, in part, that:

P.O. Brown approached the above subject to conduct a field interview at which time the above subject stated to P.O. Brown, “I got some weed on me” and reached toward his rear pants pocket at which time P.O. Brown observed a handgun inside the above subject rear pants pocket. P.O. Brown conducted a emergency take down for officer safety and recovered the gun from the above subject rear pants pocket. The above subject was trying to pull away from P.O. Brown at which time P.O. Brown delivered a open hand stun to gain control of the above subject…

Brown allegedly knew the arrest report was false for multiple reasons, including that he did not observe a firearm on Victim A at the time of a field interview; he did not know that Victim A had a firearm in his possession until after he struck Victim A multiple times, handcuffed him for a second time, and Victim A was lying on the floor of the convenience store; and Victim A did not pull away from him as the arrest report indicated.

The civil rights count carries a maximum sentence of 10 years in prison, and each count of obstruction of justice carries a maximum of 20 years in prison, and there is a $250,000 maximum fine on all three counts.  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 U.S. Attorney Nancy DePodesta.

An indictment contains merely 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

Attorney General Madigan: Two Arrests in Child Pornography Operation, Nov. 20, 2014

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Chicago — (ENEWSPF)—November 20, 2014. Attorney General Lisa Madigan announced charges yesterday 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.

Early Wednesday, Madigan’s investigators and the Vandalia Police Department arrested Ryan J. Koontz, 34, after executing a search warrant at his Vandalia home in the 500 block of South Cypress Street. Koontz was charged in Fayette County with two counts of distribution of child pornography, a Class X felony punishable by six to 30 years in prison, and eight counts of possession of child pornography, a Class 2 felony punishable by three to seven years in prison. Bond was set Wednesday at $300,000.

On Tuesday, Christopher L. Cook, 26, was arrested after investigators with Madigan’s office and the Vandalia Police Department executed a search warrant at his Centralia home in the 600 block of North Walnut Street. Cook was charged in Marion County with five counts of distribution of child pornography, a Class X felony punishable by six to 30 years in prison, and nine counts of possession of child pornography, a Class 2 felony punishable by three to seven years in prison. Bond was set Wednesday at $150,000.

“Online child pornography is a horrific crime that victimizes children each time an image is downloaded or traded,” Madigan said. “My office will continue to be relentless in tracking down and apprehending offenders who trade these horrific videos.”

The arrests bring to a total of 73 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 Vandalia Police Department, and the Fayette County State’s Attorney’s Office will prosecute the case.

“We’re happy to be a part of the Attorney General’s operation to get offenders like this off the streets,” said Fayette County State’s Attorney Joshua Morrison. “We thank the Attorney General’s Office for their assistance and hope to partner together on future investigations.”

“I’m grateful for the assistance of the Attorney General’s Office and look forward to working with the office on future investigations,” said Vandalia Police Chief Jeff Ray.

Tuesday’s operation was assisted by the Centralia Police Department, and the Marion County State’s Attorney’s Office will prosecute the case.

“We were pleased to work with the Attorney General’s High Tech Crimes Bureau. They completed a thorough investigation, and we will prosecute this offender to the full extent of the law,” said Marion County State’s Attorney Matthew Wilzbach.

“The Centralia Police Department is pleased that we could assist the Attorney General’s Office in the apprehension of a person involved with the distribution of child pornography,” said Centralia Police Chief Doug Krutsinger. “The Attorney General’s High Tech Crimes Bureau utilized Centralia’s police facility to investigate Christopher L. Cook and later arrest Cook on fourteen counts of child porn possession. The Centralia Police Department appreciates the efforts of the Attorney General’s Office to keep the Centralia area free from child pornography.”

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 855 arrests of sexual predators. The task force has also provided Internet safety training and education to more than 389,000 parents, teachers and students and more than 18,300 law enforcement professionals.

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

Source: illinoisattorneygeneral.gov


Attorney General Madigan, FTC Ban ‘Free’ Credit Score Scam

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Defendants to Pay $22 Million in Refunds for Scheme to Charge for Credit Monitoring Consumers Never Authorized

Chicago —(ENEWSPF)—November 20, 2014. Attorney General Lisa Madigan yesterday joined with the Federal Trade Commission (FTC) and the Ohio Attorney General to stop an online scheme that allegedly lured consumers with “free” access to their credit scores and then billed them a recurring fee of $29.95 per month for a credit monitoring program they never ordered. In total, three companies have agreed to pay $22 million for consumer refunds under a settlement with Madigan, the FTC and the Ohio Attorney General’s Office.

A complaint was filed today by Madigan, the FTC and Ohio against defendants One Technologies, LP, who operated as ScoreSense, One Technologies, Inc., and MyCreditHealth; as well as One Technologies Management, LLC; and One Technologies Capital, LLP. The lawsuit alleged the companies failed to clearly disclose that consumers who accessed their credit score through an online portal would be automatically enrolled in the credit monitoring program and incur monthly charges until they called the defendants to cancel. At least 210,000 consumers contacted banks, credit card companies, law enforcement agencies, and the Better Business Bureau to complain about the scheme.

“Consumers should never have to pay for monitoring services when they can incorporate several commonsense steps into their daily routine that will help minimize the risk of identity theft,” Attorney General Madigan said.

Madigan said that consumers can receive one free credit report annually by visiting www.annualcreditreport.com or call 1-877-322-8228 to order their free reports. The report will not include a consumer’s full credit score, but it should be immediately reviewed to ensure all the information is correct. If not, immediately contact the credit reporting agency to request that the information be explained or corrected.

The defendants marketed their credit monitoring programs, MyCreditHealth and ScoreSense, through at least 50 websites, including FreeScore360.com, FreeScoreOnline.com and ScoreSense.com. They bought advertising on search engines such as Google and Bing so that ads for their websites appeared near the top of search results when consumers looked for terms such as “free credit report.” The most prominent ad stated, “View your latest Credit Score from All 3 Bureaus in 60 seconds for $0!”

The only way consumers could cancel their membership and request refunds was to call a toll-free number. Consumers often had to make repeated calls to secure their cancellation or refund. The defendants often denied refunds to those who claimed they did not knowingly enroll.

Under the settlement order, the defendants are permanently prohibited from violating the Restore Online Shoppers’ Confidence Act, misrepresenting material facts about any product or service marketed with a negative option, misrepresenting material terms of any refund or cancellation policy, and failing to clearly disclose, before a consumer consents to pay via a negative option, all material terms of any such policy. They are also barred from failing to honor a refund or cancellation request that complies with such a policy, and failing to provide a simple way for consumers to stop recurring charges.

In addition, the defendants are prohibited from failing to disclose the name of the seller or provider or the name of the product or service as it appears in billing statements, a product description and its cost, the length of any trial period, and the mechanism to stop any recurring charges. The defendants are also barred from using billing information to obtain payment for any product or service marketed with a negative option without the consumer’s prior express informed consent, as prescribed in the court order.

Attorney General Madigan also offered these tips for consumers who want to better protect themselves from identity theft:

Set up Transaction Alerts on your accounts to receive notifications when your credit or debit card is used above a certain dollar amount, so if someone uses your card without authorization, you’ll receive a text message or email and can immediately call your card issuer to dispute the charge.

Regularly review your bank and credit card statements to make sure there are no unauthorized transactions. Contest any unauthorized charges immediately by contacting your bank using the toll-free number on the back of your credit or debit card. Prompt reporting of unauthorized charges is critical to limit your liability, particularly if you are a debit card user because liability depends on how quickly you report a lost or stolen card. For instance, if you report a lost or stolen debit card before any unauthorized transactions occur, you are not responsible for any of the unauthorized charges, but if you make the report within two business days of losing your card, you can be liable for up to $50 of unauthorized charges. After two days, reporting lost or stolen cards can increase your liability anywhere from $500 and up.

Review your credit reports for unauthorized accounts. You are entitled to one free credit report from each of the three nationwide credit reporting agencies per year. Go to www.annualcreditreport.com, or call 1-877-322-8228 to order your credit reports. Make sure all the information is correct. If not, immediately contact the credit reporting agency to request that the information be explained or corrected.

Consider putting a security freeze on your credit. A security freeze, also known as a credit freeze, essentially locks down your personal data at the consumer reporting agency until an individual gives permission for the release of the data, which can prevent someone from taking out credit in your name. You can easily have the freeze lifted when you want to allow a company to check your credit if, for instance, you are opening new accounts or purchasing a car or home.

For more information or assistance, Attorney General Madigan urged Illinois residents to call her office’s Identity Theft Hotline at 1-866-999-5630. Madigan’s Identity Theft Unit has helped over 35,000 victims remove over $26 million in fraudulent charges from their credit.

Source: illinoisattorneygeneral.gov

Chicago Man Indicted On Federal Charges For Allegedly Illegally Selling And Possessing Firearms

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CHICAGO ― A Chicago man was indicted on federal firearms charges alleging that he illegally sold firearms and illegally possessed nearly two dozen firearms, including assault rifles, handguns, and shotguns earlier this year.  All of the firearms were seized by ATF agents following alleged purchases by an undercover confidential source, federal law enforcement officials announced today.

The defendant, JIMMY WRIGHT, also known as “Lil Man,” 28, of Chicago, was charged with one count of selling firearms without a federal firearms dealer license and eight counts of being a convicted felon-in-possession of 22 firearms in a nine-count indictment returned yesterday by a federal grand jury.

Wright has remained in federal custody since he was arrested on Oct. 7 and charged in a criminal complaint.  He will be arraigned on a date to be determined in U.S. District Court in Chicago.

According to the charges, between July 21 and Sept. 22, 2014, Wright illegally sold firearms without a federal license.  According to the complaint affidavit, the confidential source purchased at least 12 firearms from Wright on six different dates between July 22 and Sept. 2.  These firearms included two assault rifles, seven handguns, two shotguns, and a “Tec 9” semi-automatic handgun with an obliterated serial number and an extended magazine.

The eight felon-in-possession counts allege that Wright illegally possessed a total of 22 firearms on eight different dates between July 22 and Sept. 22 of this year.

The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Garry McCarthy, Superintendent of the Chicago Police Department.

Each count of being a felon-in-possession of firearms carries a maximum sentence of 10 years in prison, and selling firearms with a federal license carries a maximum sentence of five years in prison, and all nine counts carry a maximum fine of $250,000.  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 U.S. Attorney Timothy Storino.

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.    

Related Material:

Indictment

Source: justice.gov

Illinois Department of Insurance Announces Multi-State Settlement with Sun Life

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Illinois will share part of a $3.2 million penalty against Sun Life regarding payment of Life Insurance Benefits

CHICAGO --(ENEWSPF)--November 13, 2014.  Illinois Department of Insurance (DOI) Director Andrew Boron today announced an agreement with the Sun Life Companies (Sun Life) regarding its use of the Social Security Administration’s Death Master File (DMF) as part of a multi-million dollar settlement with several states. Under the settlement, Sun Life will change business practices related to the payment of life insurance benefits and will pay $3.2 million to states that are party to the settlement.

The Regulatory Settlement Agreement stems from multi-state market conduct examinations of the forty largest life insurers regarding the timely payment of proceeds to beneficiaries of life insurance policies and annuities.  These examinations were led by Illinois, along with California, Florida, New Hampshire, North Dakota, and Pennsylvania. Florida served as the managing lead state of the Sun Life examination.  With this settlement more than 60% of the total market has agreed to business reforms to properly and fairly use the DMF.  Additionally, the companies have paid more than $1 billion to beneficiaries. 

“We’re pleased that SunLife has agreed to fundamentally change its business practices to proactively seek, locate and pay beneficiaries,” said DOI Director Andrew Boron.  “This agreement reflects a joint commitment by state insurance regulators to protect consumers in the payments of benefits rightfully owed.”
     
Under the agreement, Sun Life will compare all company records against the DMF Update File every month and against the complete DMF file at least annually to identify matches for potential unclaimed death benefits. These business practices will help the company to promptly identify when an insured has died and to make payments to the rightful beneficiary.

The agreement becomes effective after 20 states sign on to the agreement.  Illinois, along with California, Connecticut, Florida, Michigan, New Hampshire, North Dakota, and Pennsylvania have already signed.

The agreement with SunLife includes the Sun Life Assurance Company of Canada, Delaware Life Insurance Company (formerly known as Sun Life Assurance Company of Canada (U.S.)), Independence Life and Annuity Company, Professional Insurance Company, Sun Life & Health Insurance Company (U.S.), and Delaware Life Insurance Company of New York (formerly known as Sun Life Insurance and Annuity Company of New York).

A copy of the settlement agreement is available on the DOI website at http://insurance.illinois.gov/Home/ImpLinks.asp. Consumers with questions regarding this settlement, or questions or concerns about their insurance, should contact the Department’s Consumer Division at http://insurance.illinois.gov or call 866-445-5364.

Source: illinois.gov

Attorney General Madigan Sues Unlicensed Belleville Roofer

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Chicago —(ENEWSPF)—November 13, 2014. Attorney General Lisa Madigan today filed a lawsuit against a Belleville man for operating as an unlicensed roofer and collecting at least $12,000 in payments from Illinois homeowners for performing shoddy work that did not fix repairs or, in some cases, failing to do any repair work at all.

Madigan’s lawsuit was filed in St. Clair County Circuit Court alleging Mark Beaupre was an unlicensed roofing contractor who solicited area homeowners for roof and other home repair work through CMM Construction, which is not registered as a business in Illinois.

The lawsuit alleges Beaupre solicited St. Clair County residents for repair work. According to the complaint, Beaupre repeatedly completed shoddy repair work or did no work at all and refused to provide refunds to consumers despite their demands.

“When a contractor takes a homeowner’s hard-earned money and does little or no work, that is a violation of the law,” Madigan said.

Madigan’s lawsuit seeks to ban Beaupre from working in Illinois and provide restitution to his customers.

Assistant Attorney General Christine McClimans is handling the case for Madigan’s Consumer Fraud Bureau.

Source: Illinoisattorneygeneral.gov

Blue Island Man Receives Five Year Prison Sentence for Unemployment Fraud

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Restitution of $234,000 Ordered After IDES Investigation

CHICAGO --(ENEWSPF)--November 14, 2014.  A Blue Island man was sentenced to five years in prison and ordered to pay $234,000 to the Illinois Department of Employment Security for defrauding the unemployment insurance program. IDES’ anti-fraud efforts initiated the investigation that led to the federal conviction.

“Actions speak louder than words. This is another example that shows that when we talk about fighting fraud and abuse, we really mean it,” IDES Director Jay Rowell said. “This is not a victimless crime. Stealing from the unemployment program is no different than had the criminals reached directly into the pockets of every worker and employer in Illinois.”

According to federal records, Durand Osborne, 40, led three others in a fictitious employer scheme. A fake company was created so that fake employees could be paid unemployment insurance. Once identified by IDES, and working with federal officials from the U.S. Department of Labor and U.S. Postal Inspection Service, the fraud was allowed to continue and tracked so that a criminal case strong enough to secure a conviction could be built. Had IDES not detected the fraud, Osborne and his crew could have bilked taxpayers out of approximately $880,000.

U.S. Northern District Court Judge Rebecca Pallmeyer sentenced Osborne this week after a guilty plea to mail fraud. The fraud occurred between 2009 and 2011. The U.S. Department of Justice case number is 13CR561.

Unemployment insurance taxes pay for benefits that workers receive when they are laid off through no fault of their own. In Illinois, the taxes support 26 weeks of unemployment benefits. Operational funding for IDES – dollars used to pay salaries and utilities, for example – come from federal funds through the U.S. Department of Labor, not from unemployment insurance taxes nor from the state’s general revenue budget in Springfield.

IDES is committed to fighting fraud. It pursues fraud cases in criminal and civil courts at the local, state and federal level. The Department cooperates with outside prosecutors and has an anti-fraud unit with attorneys from Illinois Attorney General Lisa Madigan’s office.

Source: illinois.gov

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