ROCKFORD —(ENEWSPF)--June 3, 2015.  A former Sycamore, Ill. resident was sentenced today by U.S. District Judge Frederick J. Kapala for possessing child pornography.  MICHAEL PODOLSKY, 27, now of Elkader, Iowa, who pled guilty to the charge on January 27, 2015, was sentenced to 97 months imprisonment, to be followed by 5 years of supervised release.  In his written plea agreement, Podolsky admitted that on and prior to July 12, 2013, he owned and was in possession of a computer at his home in Sycamore that contained more than 600 images of children engaged in sexually explicit conduct, and that among the images he possessed were images that depicted prepubescent minors engaged in sadistic conduct and violence. 

The sentencing was announced today 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 Glenn Theriault, Chief of the Sycamore Police Department.

The government was represented by Assistant United States Attorney Michael D. Love.

Source: justice.gov

Chicago –(ENEWSPF)--June 8, 2015.  A Wilmette man was arrested this morning by agents from the Federal Bureau of Investigation and detectives from the Norridge and Arlington Heights Police Departments and is facing federal wire fraud charges for defrauding his clients of at least $1 million of investment funds. Alan Gold, age 60, was arrested at his residence and charged by criminal complaint that was unsealed following his arrest. FBI agents also conducted a search pursuant to a search warrant of Gold’s residence this morning. Gold appeared before U.S. Magistrate Judge Jeffrey Gilbert earlier today and was released on a $10,000 recognizance bond and is due back in court for a status on June 15 at 9:00 a.m.

According to the complaint, Gold engaged in a scheme to defraud his clients for at least five years through false statements. Gold, who managed several million dollars of client funds through his company, Alan Gold & Associates, based in his residence, allegedly sent account statements to clients falsely representing that their assets were invested in certain stocks, real estate funds, futures contracts, and other investment products, when Gold had actually spent those client funds on his own personal expenses.

According to the complaint, Gold, as early as 2008, told his clients that he would make “alternative investments” on their behalf using funds that he would wire from their brokerage account to his bank account. Among the investments Gold listed on client account statements were real estate ventures and holdings in real estate ventures, gold and natural gas futures contracts, and the stocks of publicly traded companies. Gold did not purchase securities and futures contracts for his clients, but allegedly spent the funds on gambling expenses at area casinos and personal living expenses. Gold allegedly continued to wire transfer funds from client accounts for at least five years using the same false statements and representations to clients. The scheme was exposed when Gold stopped returning client phone calls and a client reported the matter to law enforcement.

If convicted of wire fraud, Gold could be sentenced to a maximum term of imprisonment of 20 years and a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The arrest and charges 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 Federal Bureau of Investigation Chicago Office. The Chicago office of the U.S. Securities & Exchange Commission, the Arlington Heights Police Department, and the Norridge Police Department assisted with the investigation.

The government is being represented by Assistant United States Attorney Sunil R. Harjani.

The public is reminded that a complaint 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 guilty beyond a reasonable doubt.

Related Material:

Complaint

Source: justice.gov

Chicago —(ENEWSPF)--June 15, 2015.  A former Dolton certified water operator was indicted last week on charges that, for several years, he routinely falsified paperwork to make it appear that Dolton was properly sampling its drinking water for microbiological contaminants. Dolton purchases its drinking water from the City of Chicago, which treats Lake Michigan water. However, Dolton is still required to test its drinking water for the presence of coliform bacteria in order to ensure that it has not become contaminated locally.

According to the six count indictment, between January 2008 and continuing through August 2013, Philip Kraus, 63, of Thornton, falsified records in order to conceal the fact that he was not sampling Dolton’s water system in accordance with the Safe Drinking Water Act and the U.S. EPA regulations that implement the Safe Drinking Water Act. Kraus will appear before for an arraignment at a later date determined by U.S. District Court.

Each month, Dolton was required to collect 25-30 samples of its drinking water from various points representative of the entire drinking water distribution system and thereafter to take those samples to a certified laboratory for testing. The samples were to be tested for the presence or absence of coliform bacteria – the presence of coliform bacteria in the drinking water may indicate that the drinking water is contaminated with microbiological contaminants. The indictment alleges that, contrary to the required sampling protocol, Kraus routinely collected multiple drinking water samples each month from only one or a few locations but falsely represented on Dolton paperwork and on forms submitted to Dolton’s contract laboratory that the samples were taken from representative locations throughout Dolton. The laboratory then transmitted the test results and the false sample site data to the Illinois EPA, which implements the federal Safe Drinking Water Act in Illinois pursuant to authorization from U.S. EPA. IEPA and U.S. EPA rely upon the test results and sample site data to ensure that Dolton was distributing to its residents and businesses drinking water free of microbiological contaminants. The contract laboratory is not accused of any wrongdoing.

The indictment charges Kraus with one count of engaging in a multi-year scheme between January 2008 and August 2013 to submit material false statements and five additional counts, each of which charges Kraus with causing the submission of a false statement to IEPA on a particular date in 2013.

The indictment alleges that all of the test results from the samples submitted to the contract laboratory were negative for the presence of coliform bacteria. The government does not possess information indicating that any person was harmed as a result of the alleged offenses.

The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Randall K. Ashe, Special Agent-in-Charge of the U.S. EPA’s Criminal Investigation Division in Chicago.

"The residents of the Village of Dolton relied upon Mr. Kraus, the Village’s Certified Water Operator, to make sure that their drinking water was properly sampled and tested for microbiological contamination." said Mr. Fardon. "Mr. Kraus violated the trust of the residents of Dolton, and, although we have no evidence that Mr. Kraus’ conduct caused any actual harm, it did create a very real risk of contamination going undiscovered."

Each of the six counts carries a maximum penalty of 5 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 Attorney Timothy J. Chapman.

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:

Complaint

Source: justice.gov

CHICAGO –-(ENEWSPF)--June 18, 2015.  Attorney General Loretta E. Lynch and Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced today a nationwide takedown by Medicare Fraud Strike Force operations in 17 districts, resulting in charges against 243 individuals, including 46 doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $712 million in false billings.  In addition, the Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act.   This coordinated takedown is the largest in Strike Force history, both in terms of the number of defendants charged and loss amount.  Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced thirteen defendants who were charged in four local cases as part of the national package. 

“This action represents the largest criminal health care fraud takedown in the history of the Department of Justice, and it adds to an already remarkable record of enforcement,” said Attorney General Lynch.  “The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others.  They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered.  In the days ahead, the Department of Justice will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives.  We are prepared – and I am personally determined – to continue working with our federal, state, and local partners to bring about the vital progress that all Americans deserve.”

“Health care fraud extracts a huge toll on our nation’s health care system,” stated U.S. Attorney Fardon in announcing the cases charged in the Northern District of Illinois.  “We will continue to aggressively pursue those health care providers that take advantage of not only the system, but the patients they are entrusted to care for.”

Three of the cases and nine of the defendants in the Northern District of Illinois involve home health services, an area which is “vulnerable to fraud, waste and abuse,” according to the Department of Health and Human Services Office of Inspector General in a 2012 report, “Inappropriate and Questionable Billing by Medicare Home Health Agencies.”  In 2013, citing factors that strongly indicated fraudulent activity in the metropolitan Chicago area compared to other areas, the Centers for Medicare & Medicaid Services imposed the first-ever moratorium authorized by the Affordable Care Act to halt the enrollment of new home health providers in the metropolitan Chicago area. 

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since their inception in March 2007, Strike Force operations in nine locations have charged over 2,300 defendants who collectively have falsely billed the Medicare program for over $7 billion. 

Including today’s enforcement actions, nearly 900 individuals have been charged in national takedown operations, which have involved more than $2.5 billion in fraudulent billings.  Today’s announcement marks the first time that districts outside of Strike Force locations have participated in a national takedown; those districts account for 82 defendants charged in the takedown.      

The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.

In addition to the Strike Force, today’s enforcement actions include cases brought by the U.S. Attorney’s Offices for the Northern District of Illinois, Southern District of Illinois, Northern District of Ohio, Western District of Pennsylvania, Western District of Kentucky, Southern District of New York, Alaska, and the Southern District of Georgia.  The following cases are being prosecuted by the Northern District of Illinois:

United States vs. Janet Guerrero, et.al
Seven individuals who worked at three related home health care companies – Donnarich Home Health Care, Inc., Josdan Home Health Care Inc., and Pathways Home Health Services LLC – were charged by superseding indictment yesterday with conspiracy to commit health care fraud, health care fraud, false statements, and money laundering. The indictment alleges a $45 million fraud at the three home health care companies, starting as early as 2008 and continuing into 2014.  The fraud as alleged included paying illegal bribes and kickbacks to obtain Medicare beneficiaries; ignoring doctors who refused to certify beneficiaries as “homebound” and eligible for care; enrolling patients who did not need or want the care; subjecting patients to pre-planned cycles of discharges and re-enrollments, regardless of their medical needs; and falsifying medical records to make patients appear to be homebound or sicker than they actually were.

The newly-charged defendants include Josephine Tinimbang, an owner and operator of the companies; Dr. Jose Calub, the medical director; Sharon Gulla, a registered nurse and a former supervisor; and Marilou Lozano, Ronald Malalis, Mary Pilar Mendoza, and Isabelita Sabejon, registered nurses who enrolled non-homebound beneficiaries and fabricated medical records. Two defendants were charged in an earlier indictment:  Sherwin Cubelo, a patient recruiter who received illegal kickbacks; and Janet Guerrero, an office manager who administered the kickbacks.  The government is represented in this case by Trial Attorney Brooke Harper.

United States vs. Barry Fischer
Barry Fischer, 70, of River Forest, was indicted for health care fraud on Wednesday in a 20-count federal indictment for allegedly billing Medicare for unnecessary home visits, for falsely certifying patients for home health services, and for putting false information in patient charts.  Fischer allegedly signed orders in which he falsely certified patients as “confined to the home,” under his care, and requiring skilled nursing services.  According to the indictment, as a result of Fischer’s false certifications, Medicare suffered losses in the form of payments to the company Fischer worked for and various home health agencies.  The government is represented in this case by Assistant U.S. Attorney Stephen Chahn Lee.

United States vs. Zenaida Dimailig
Zenaida Dimailig, 78, of Bensenville, was charged by complaint with health care fraud for allegedly causing Medicare to be billed for home health services for patients who were not home bound and for services that were not rendered. Dimailig allegedly paid cash kickbacks to Medicare-covered patients who, in turn, allowed their Medicare information to be used to bill Medicare for home-health services that these individuals did not need.  Dimailig then passed on this Medicare information and records that falsely suggested that certain services were provided to Medicare beneficiaries to home health care agencies for the purpose of billing Medicare. The government is represented in this case by Assistant U.S. Attorney Timothy Storino.

United States vs. Omeed Memar
Omeed Memar, 46 of Chicago, a dermatologist, was indicted for health care fraud last week in a 16-count federal indictment for allegedly billing cosmetic treatments fraudulently as the destruction of large numbers of pre-cancerous lesions. According to the indictment, the defendant falsely diagnosed patients with actinic keratosis, or precancerous lesions that are typically rough, dry or scaly, and then billed public and private health insurers for medically unnecessary treatments. According to the indictment, between 2007 and January 2013, Memar falsely diagnosed patients with actinic keratosis, ordered his staff to provide intense-pulsed light treatments for his patients, and instructed his staff to document the procedures falsely as the destruction of 15 or more precancerous lesions. The government is represented in this case by Assistant U.S. Attorney Stephen Chahn Lee.

The charges 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; Lamont Pugh III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General in Chicago; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; Martin J. Dickman, Inspector General, U.S. Railroad Retirement Board; and Stephen Boyd, Special Agent-in-Charge of the Internal Revenue Service, Criminal Investigation,  Chicago Field Office.

Money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine.  Health care fraud and conspiracy to commit health care fraud carry a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory.  Making a false statement in a health care matter carries a maximum penalty of 5 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 public is reminded that indictments and complaints are 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:

Fischer Indictment
Dimailig Complaint
Guerrero Superseding Indictment
Memar Indictment

Source: justice.gov

Chicago —(ENEWSPF)—June 18, 2015. Attorney General Lisa Madigan today announced that an Illinois Department of Human Services (IDHS) caseworker was arraigned on charges of theft and official misconduct for allegedly stealing over $114,000 in assistance for needy families.

Mary Hurst, 50, of Steeleville, pleaded not guilty today in Randolph County Criminal Court to one count of theft of government monies over $100,000, a Class X felony punishable by six to 30 years in prison; and five counts of wire fraud and six counts of official misconduct, each a Class 3 felony punishable by two to five years in prison.

Madigan alleged that Hurst, an IDHS caseworker at the Randolph County Family Community Resource Center, created four fictitious clients and issued herself LINK cards loaded with state funds in those names. Hurst allegedly used the fake accounts to make withdrawals at various ATMs from 2012 to 2015. Madigan alleged Hurst misappropriated $114,819 in state funds earmarked for families in need for personal profit.

“The defendant’s acts cheated not only the taxpayers who fund the programs she was entrusted to manage but also those who rely on these vital state services,” Madigan said.

Assistant Attorney General Kilby MacFadden and Associate Director James S. Dorger are handling the case for Madigan’s Public Integrity Bureau. The Illinois Department of Human Services, the Illinois State Police and the Office of the Executive Inspector General assisted in the case.

Source: illinoisattorneygeneral.gov

Chicago —(ENEWSPF)—June 19, 2015. Attorney General Lisa Madigan announced charges today against a Winnebago County man on multiple counts of possessing and reproducing child pornography.

Madigan’s investigators and the Winnebago County Sheriff’s Office executed a search warrant on Wednesday and arrested Robert Rossi, 39, at his residence on Wilshire Drive in Machesney Park.

Rossi was charged with two counts of reproduction of child pornography, one count a Class X felony punishable by nine to 30 years in prison and the second count a Class 1 felony punishable by four to 15 years in prison. Rossi was also charged with two counts of possession of child pornography, one count a Class 1 felony punishable by four to 15 years in prison and the second count a Class 3 felony punishable by two to five years in prison. His bond was set Thursday at $750,000.

“Child pornography is not a victimless crime,” Attorney General Madigan said. “Whenever an offender downloads or trades these horrific images, it perpetuates the sexual assault of children and only causes further devastation to the victims. We will continue to be relentless in apprehending these offenders.”

The investigation and arrest by Madigan’s office was assisted by the Winnebago County Sheriff’s Office. The Winnebago County State’s Attorney’s Office will prosecute the case.

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

“I appreciate all of the efforts of the Attorney General’s office and their investigators,” said Winnebago County Sheriff Gary Caruana. “We will continue to partner with them to pursue predators in our community.”

Attorney General 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 968 arrests of sexual predators. The task force has also provided Internet safety training and education to nearly 440,000 parents, teachers and students and more than 18,600 law enforcement professionals.

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

Source: illinoisattorneygeneral.gov

ROCKFORD —(ENEWSPF)--June 19, 2015.  A Rockford, Ill. man was sentenced today by U.S. District Judge Philip G. Reinhard for producing a fictitious financial instrument that appeared to be issued under the authority of the U.S. Treasury.  BRADLEY SHERMAN HAMPTON, 55, was sentenced to 12 months and one day in federal prison, to be followed by 3 years supervised release, and ordered to pay restitution of $76,500. 

Hampton, who pled guilty on Feb. 5, 2015, admitted that on Aug. 31, 2009, he created a fictitious $48,780 money order in an attempt to defraud Regions Bank and the U.S. Treasury.  According to the written plea agreement, Hampton also admitted that in 2009 he produced eight other fictitious money orders in an attempt to defraud.  The nine fictitious money orders totaled $547,578.47 and purported to be issued under the authority of a Federal Reserve Bank, the Department of the Treasury, or the United States Treasury.  The fictitious money orders were made payable to Chase Home Finance, Chase National Payment Service, Holcomb State Bank, Regency Worldwide Development, Inc., Harley Davidson Credit, and the Faith Center in Rockford, Ill.  The $76,500 restitution is owed to the sole money order recipient that accepted a money order and disbursed money.

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 Federal Bureau of Investigation; and Frank Benedetto, Special Agent-in-Charge of the Secret Service’s Chicago Field Office.

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

Source: justice.gov

SPRINGFIELD –-(ENEWSPF)--June 23, 2015.  The Office of the State Fire Marshal (OSFM) announced today that on June 18, 2015, a Vermilion County Circuit Court issued a Default Judgment Order against Excellent Petroleum, Inc. for $365,000. The order came in response to the company abandoning a truck stop and leaving ten underground petroleum storage tanks unsecure, clearly in violation of the Gasoline Storage Act.

“Gasoline tanks left unattended pose a serious threat to public safety,” said State Fire Marshal Matt Perez. “This judgment serves as a reminder of the consequences that result from not following state regulations and putting the public at risk.”

Excellent Petroleum, Inc., located at the Oakwood exit of I-74, last operated the ten underground storage tanks in 2006. The unsecured fuel tanks had the potential to cause soil and water contamination, therefore posing a threat to human health and the environment. The Village of Oakwood took over the title of the facility on November 3, 2014, after Excellent Petroleum, Inc. failed to respond to multiple OSFM enforcement notices directing the company to maintain and secure the facility.

The OSFM requested that the Office of the Attorney General file a civil lawsuit against Excellent Petroleum, Inc. in August 2011. Litigation followed resulting in a Default Judgment Order imposing $365,000 in penalties and fines against the company for its ongoing violations of OFSM rules concerning technical and safety requirements for the operation and proper temporary closure of underground storage tanks.

A copy of the Default Judgment Order is available upon request.

Source: illinois.gov

CHICAGO —(ENEWSPF)--June 24, 2015. A Chicago resident was charged yesterday with wire fraud after fraudulently obtaining approximately $9 million from approximately 50 investors by making false and misleading representations to the investors, which resulted in a loss to investors of approximately $4 million, according to the indictment.  The charges allege that Nick Wurl, 25, of Chicago, was the President of Ludiera Capital, LLC, located in Chicago, and that he falsely represented to investors that Ludiera was in the business of buying, transporting, and selling commodities, such as corn and wheat, domestically and internationally, when, in fact, Ludiera never bought, transported, or sold any commodities. 

Wurl was arrested on May 26, 2015, and released on bond. He will be arraigned at a later date in U.S. District Court.

According to the indictment, between approximately July 2013 through May 2015, Wurl made false representations about the nature of Ludiera’s business, the financial condition of Ludiera, the expected return and actual return on the investment, the risk involved in the investment, the status of the investment, and the use of investors’ funds.  The indictment also alleges that Wurl misappropriated investors’ funds to trade futures and options without disclosing that he was using investors’ funds for trading, and to pay personal expenses for his own benefit.  According to the indictment, Wurl fraudulently retained investors’ funds and concealed the scheme by preparing and distributing fraudulent account statements to investors. 

The indictment seeks forfeiture of approximately $9 million.

Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The charges 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 U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission assisted with the investigation.

The government is being represented by Assistant U.S. Attorney Jacqueline Stern.

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

CHICAGO —(ENEWSPF)--June 24, 2015.  Forty-two defendants are facing state or federal narcotics charges for their alleged roles in supplying and distributing heroin in the area of West Grenshaw Street and Independence Boulevard, in the North Lawndale neighborhood on the city’s west side.  An investigation led by officers of the Chicago Police Department and agents of the Drug Enforcement Administration assigned to the High Intensity Drug Trafficking Area (“HIDTA”) Task Force, resulted in federal charges against 16 defendants and state charges against 26 others, who police and federal agents began arresting early this morning. 

Twelve firearms, approximately $50,000, nearly a half-kilogram of heroin, and over one-half kilogram of cocaine were seized this morning during the arrests of 32 of the charged defendants.  The remaining defendants are either in custody or at large.  Additionally, over one and a half kilograms of heroin were seized during the course of the investigation from last August through this month.  Early today, Chicago police, DEA agents, and other HIDTA law enforcement partners also executed seven search warrants upon several defendants’ residences and three alleged stash houses, and seized two vehicles, including one defendant’s 2014 Maserati, Gran Turismo.

The federal defendants were charged with conspiracy, distribution, or possession with intent to distribute narcotics in five separate criminal complaints that were filed yesterday in U.S. District Court and unsealed following the arrests.  The federal defendants are scheduled to begin appearing at 3 p.m. today before U.S. Magistrate Judge Maria Valdez in U.S. District Court.  The 26 state defendants face charges ranging from Class 1 to Class X Delivery of a Controlled Substance and face a potential sentencing range of four to 30 years in prison upon conviction.  The state defendants are expected to appear in bond court this afternoon at the Leighton Criminal Courts Building in Chicago.

According to a 230-page affidavit in support of the federal arrests and search warrants, the investigation revealed that JAMES TRIPLETT, also known as “Trell,” 33, of Berkley, controlled the distribution of heroin in the area of the 3700 block of West Grenshaw Street, in the North Lawndale neighborhood west of Douglas Park.  Triplett allegedly assigned responsibility for heroin distribution on the block he controlled to specific individuals, who further delegated distribution to shift workers who sold heroin throughout the day.

Triplett obtained his heroin largely from supplier, LEVAUGHN COLLINS, also known as “Sweet Bobby,” 34, of Chicago, who along with his narcotics associates, obtained wholesale quantities of heroin which they mixed and packaged for distribution to buyers like Triplett who then subsequently sold the heroin on the street in the area of the 3700 block of West Grenshaw Street.

The area is just south of the Interstate 290 Eisenhower Expressway corridor that has been referred to as the “Heroin Highway” because of the accessibility it provides to city and suburban heroin customers.

“The Chicago HIDTA is a powerful collaboration of local, state, and federal law enforcement which concentrates its efforts on both narcotics suppliers and street-level distributors,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.  “This investigation and arrests associated with this open air drug market demonstrate how effective teamwork by law enforcement agencies can significantly reduce the flow of narcotics into our communities,” he said.

“This operation demonstrates how police and prosecutors are continuing to work together to dig in at the local level and hammer away at the drug markets plaguing our local communities,” said Cook County State’s Attorney Anita Alvarez. “Once again, we are pleased to join our state and federal law enforcement partners in these ongoing and coordinated efforts.”

“Investigating, charging and arresting heroin dealers is priority number one," said SAC Wichern.  "Too many lives in Chicagoland are forever lost due to heroin use.  I'm proud of the work done by these agents, officers and prosecutors, who worked tirelessly to achieve these results and I’m confident that with our continued partnership, we will have increasing success."

 “IRS Criminal Investigation was an integral part of today’s law enforcement events by investigating the financial aspects of these investigations,” added Special Agent-in-Charge Boyd from IRS/CID. 

The complaint affidavit alleges that Triplett was a wholesale supplier of heroin who, through his drug trafficking organization, ran the heroin trade in the area of the 3700 block of West Grenshaw Street.  The complaint further alleges that Triplett tasked his narcotics associates with different responsibilities ranging from picking up and transporting the packaged heroin for subsequent distribution, to running the daily operations of the Grenshaw drug spot, to collecting proceeds from heroin sales there.  The Triplett drug trafficking organization employed individuals, like MARCETTEAUS MCGEE, aka “Antonio,” aka “Keitho,” 31, of Chicago;   CHRISTOPHER TIDWELL, aka “Gov,” 42, of Chicago; JAMES SMITH, aka “J Dub,” 35, of Chicago; and CHIQUITA JACKSON, 29, of Chicago, to manage the Grenshaw drug spot and advise Triplett when resupply was needed, to shuttle heroin among the various stash and retail locations, and to return his share of the profits to him.  The organization employed street-level workers responsible for the retail sale of its heroin such as JACKIE TYLER, 29, of Chicago.

Levaughn Collins, a wholesale supplier to the Triplet drug trafficking organization, and others, operated his heroin distribution from his main stash house at 561 East 103rd Place, as well as specific locations such as 2936 West Warren Boulevard, the charges allege.  Other defendants, including LARRY COLLINS, aka “Scooter,” 38, of Chicago, JIMMY BELL, aka “Dirt,” 38, of Chicago; LAMEL BURNS, aka “Slim,” 38, of Dolton;  and KEVIN GARDNER, aka “Bo,” 35 of Chicago, allegedly assisted Levaughn Collins in diluting the heroin to increase profits and packaging the heroin into smaller, user-sized quantities for street-resale.  Heroin packaged and distributed by Collins’s organization was typically packaged in small user-portion plastic bags with orange basketballs, purple lady logos, green Playboy bunnies, Hershey’s kisses, or black panda bear symbols stamped on them.

One federal complaint charges twelve defendants ― James Triplett, Levaughn Collins, Larry Collins, Jimmy Bell, Lamel Burns, Kevin Gardner, Christopher Tidwell, Marcetteaus McGee, James Smith, Chiquette Jackson, Jackie Tyler and ANTON HIGGINS, aka “Spud,” 35, of Chicago― with conspiracy to possess and distribute more than a kilogram of heroin.  If convicted, they each face a mandatory minimum sentence of 10 years in prison and a maximum of life imprisonment and a $10 million fine. 

DONALD MCINTOSH, aka “Donnie,” 40, of Chicago, and NEKENYA HARDY, aka “Keefy,” 36, of Berwyn, were charged separately with being heroin customers of Levaughn Collins.  If convicted, McIntosh faces a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine and Hardy faces a maximum of 20 years in prison and a $1 million fine.

ANGELES AVALOS, 32, of Chicago, was also charged separately with being a heroin supplier to Levaughn Collins.  If convicted, he faces a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine.

DEONTE THOMAS, aka “12th Street,” 25, of Chicago, was also charged separately with distributing heroin in the 3700 block of West Grenshaw Street.  If convicted, he faces a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine.

The 27 state defendants, charged for their alleged roles in supplying and distributing heroin are: CARL AUSTIN, DEMARIO BUTLER, DEJON CARR, LAVORA CHILDRESS, DEWAYNE COOK, JOHNNY CORBIN, SIMEON CURRIE, DEANDRE CURRY, MARQUITA DAVIS, ORLANDO EDWARDS, TERRELL HARRIS, WILLIE HUGHES, ERIC JACKSON, COSHAWNDRA JENKINS, ERIC LEMON, ANDRE MINOR, BERNARD PERSON, DARRYL PLEASANT, DONALD ROGERS, FLOYD SHAW, KENNETH SMITH, LEONARD SMITH, TIMESHA WASHINGTON, LEONARD WHITE, DOMINICK WILLIAMS and JASON WOODS. 

Assistant United States Attorneys Katherine A. Sawyer and Andrew K. Polovin are representing the government in the federal cases.  Assistant State’s Attorney Aaron R. Bond is prosecuting the state cases.

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.

Related Material:

Collins Complaint
Hardy Complaint
McIntosh Complaint
Avalos Complaint
Greenshaw Affidavit
Thomas Complaint

Source: justice.gov

CHICAGO ―(ENEWSPF)--June 26, 2015.  Melvin Reynolds, 63, a former member of the United States House of Representatives, was indicted yesterday on federal charges alleging that he failed to file income tax returns for the years 2009 through 2012.

Reynolds will appear for his arraignment at a date yet to be determined by the U.S. District Court

According to the indictment, Reynolds received gross income in each year in excess of the minimum amount required to file a tax return. As a result, he was required by law, by April 15 of the following year, to file an income tax return (Form 1040 and accompanying attachments). Reynolds willfully failed to file income tax returns for four consecutive years – 2009, 2010, 2011 and 2012.

Each count of failing to file a federal income tax return carries a maximum sentence of one year 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.

Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced the indictment with Stephen Boyd, Special Agent in Charge of the Internal Revenue Service Criminal Investigative Division Chicago.

The government is being represented by Assistant U.S. Attorneys Barry Jonas and William E. Ridgway.

Related Material:

Indictment

Source: justice.gov

Chicago —(ENEWSPF)—July 2, 2015. Attorney General Lisa Madigan announced a lawsuit against Lake County home repair companies for scamming northern Illinois residents out of over $175,000 for work that was either never performed or was substandard.

Attorney General Madigan filed the lawsuit in Cook County against Sentry RSW (Roofing, Siding, and Windows) Inc. and its president, Keith Polanowski, as well as the now-dissolved Sentry Restorations Inc. and its president, Brett Clark. The lawsuit accuses the companies of violating the state’s Consumer Fraud and Deceptive Business Practices Act and the Home Repair and Remodeling Act.

According to Madigan’s lawsuit, the Volo, Ill.-based companies operated as one entity but used different names to confuse consumers. Polanowski and Clark allegedly collected homeowners’ insurance checks for roof repairs and other construction services, though according to the lawsuit, they either did not perform the agreed upon work or the repairs were shoddy. The lawsuit alleges that consumers who contacted the companies to complain either could not reach anyone or were promised further repairs that were never performed. In most cases, the lawsuit states, consumers attempting to cancel contracts were refused refunds or even sued for breach of contract.

“Home repair fraud is consistently one of the top complaints reported to my office,” Attorney General Madigan said. “I encourage anyone looking for a contractor or repair service to call my office and the Better Business Bureau to ask about a company’s record before hiring them.”

Attorney General Madigan’s office received 50 complaints from consumers in Cook, DuPage and Lake Counties, who reported losses of over $176,428.35. The Better Business Bureau received 24 complaints involving the defendants. Attorney General Madigan is asking the court to prevent the companies from doing business in Illinois. The lawsuit also seeks to nullify any contracts, provide restitution to consumers and impose civil penalties on the defendants.

Attorney General Madigan encouraged consumers who believe they may have been defrauded by Sentry RSW Inc. or Sentry Restorations Inc. to contact her office’s Consumer Fraud Hotline:

1-800-386-5438 (Chicago)
1-800-243-0618 (Springfield)
1-800-243-0607 (Carbondale)

Assistant Attorney General Bianca Brown is handling the case for Madigan’s Consumer Fraud Bureau.

Source: illinoisattorneygeneral.gov

CHICAGO—(ENEWSPF)--July 2, 2015.  A federal grand jury returned a 25-count indictment yesterday charging six defendants with devising and participating in a mortgage fraud scheme which caused more than $16 million in losses to banks, mortgage lenders, Fannie Mae, and Freddie Mac.  Among those named as defendants are two real estate developers—VINCE MANGLARDI, 59, of Long Grove, and THEODORE “TJ” WOJTAS, JR., 43, of Glenview—who are accused of committing fraud in connection with the marketing and sale of condominiums at a 50-acre development in Palatine known as “The Woods at Countryside.” 

The indictment accuses Manglardi and Wojtas of, among other things, using an assortment of advertising methods and sales pitches—on air, online, in writing, and at live presentations—to falsely promote the purchase of condos at the Woods as a means to financial independence and wealth, enticing prospective condo buyers with substantial, unsustainable financial incentives, including down payment refunds and up to three years’ worth of mortgage payments, maintenance costs, and property tax payments.

The indictment alleges that Manglardi, Wojtas, and their co-schemers colluded with each other to induce people to purchase condos at the Woods based on false promises and assurances.  The indictment further alleges that the defendants colluded with one another and with others to misrepresent and conceal material facts from banks and mortgage lenders in order to fraudulently induce such banks and mortgage lenders to approve non-conforming loans to condo buyers, thereby exposing numerous lenders and Fannie Mae and Freddie Mac to millions of dollars in losses.

Four alleged co-schemers are named as defendants, specifically:  attorney DAVID W. BELCONIS, 56, of Long Grove; NUNZIO L. GRIECO, 63, of Palatine, formerly an employee of the developers; WALTER VALI, 62, of Mundelein, formerly a mortgage loan originator; and KARIN L. GANSER, 62, of Palatine, formerly a licensed real estate salesperson.    All six defendants will be arraigned on the criminal charges on a date to be determined by the U.S. District Court.

The indictment also seeks the forfeiture of $16 million.  It charges various acts of wire fraud, mail fraud, and false statements to financial institutions.  Each count of the indictment carries a maximum term of imprisonment of 30 years and a maximum fine of $1,000,000.  If a defendant is convicted, the court must impose a reasonable sentence pursuant to the federal criminal code and the advisory sentencing guidelines.

The criminal charges were announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Barry McLaughlin, Special Agent-in-Charge of the Midwest Regional Office of the Federal Housing Finance Agency’s Office of Inspector General; 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 United States Attorney Brian Havey.

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

Related Material:

Indictment

Source: justice.gov

CHICAGO —(ENEWSPF)—July 9, 2015. A former Chicago resident who accepted cash payments to help 80 people file false bankruptcy petitions as a way of avoiding City of Chicago impound fees was sentenced on Tuesday to 18 months in federal prison.

Daniel Rankins, 32, of Storm Lake, Iowa, and formerly of Chicago, pleaded guilty in December to one count of bankruptcy fraud. He was ordered to pay $142,737.00 in restitution by U.S. District Judge Robert M. Dow Jr.  Rankins must surrender to begin serving his sentence on Sept. 29, 2015.

“What he came up with was a pretty sophisticated system,” Judge Dow said in imposing the sentence. “He could have found a better way to apply himself.”

Rankins assisted 80 people with filing false Chapter 7 bankruptcy cases in order to get their vehicles released from the City of Chicago impound lot without paying fines or fees. Rankins had approached these individuals outside a City office or was referred to them by acquaintances. He personally accompanied them to the U.S. Bankruptcy Court in downtown Chicago, and furnished them with partially completed bankruptcy applications which named the City and its impound lot as the only creditors. In exchange, Rankins accepted cash payments from the false debtors which equaled approximately half of what was owed to the City.

“This was a sophisticated hustle,” said Assistant U.S. Attorney Megan Church, who represented the government. “It was a street scam, and he was ripping off the taxpayers.”

The scheme was uncovered in May 2012 when the City of Chicago’s Department of Revenue (now Finance Department) alerted the U.S. Trustee for the Northern District of Illinois to a significant increase in the number of individuals who were using bankruptcy as a means of obtaining their impounded vehicles without paying fines or fees. The U.S. Trustee’s Office reviewed the applications and learned that the false debtors had claimed an inability to pay the $306 Bankruptcy Court filing fee and hadn’t appeared for court hearings. All of the cases were eventually dismissed, and the court fees were never collected.

In January 2013 Rankins arranged for an undercover officer to file a false bankruptcy petition under the guise of obtaining a release of the officer’s vehicle from the impound lot, in exchange for a cash payment to Rankins of $600.

The sentence 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 Joseph M. Ferguson, City of Chicago Inspector General. The U.S. Bankruptcy Court and the U.S. Trustee’s Office for the Northern District of Illinois cooperated and assisted with the investigation.

Source: www.justice.gov

CHICAGO —(ENEWSPF)—July 9, 2015. A benefits authorizer at the Social Security Administration in Chicago authorized over $1.9 million in fraudulent benefits to more than 150 recipients who kicked backed cash to him and several others, according to a federal indictment unsealed yesterday.

The benefits authorizer, JAYSON CRUZ, 39, of Chicago, worked at the Social Security Administration’s Great Lakes Program Service Center in Chicago. Cruz and four others were arrested this morning by federal authorities.

The ten-count indictment, which was filed on June 30, 2015, and unsealed today following the arrests, alleges that the defendants fraudulently caused the Social Security Administration to issue more than $1.9 million in payments to approximately 154 recipients between approximately September 2009 and December 2013.

Cruz was charged with ten counts of wire fraud. MONICA KNOX-SUMRELL, 41; VONZELL WHITE, 33; MICHAEL ELARDE, 37; and JERRY BROWN JR., 36, all of Chicago, were each charged with two counts of wire fraud. All five defendants pleaded not guilty during their arraignments this afternoon before U.S. District Judge Virginia M. Kendall in Chicago. All five defendants were released on their own recognizance. Judge Kendall scheduled a status hearing for 9/16/15 for all defendants.

According to the indictment, Cruz was one of the Social Security Administration employees responsible for authorizing monthly Old-Age, Survivors, and Disability Insurance Benefits to beneficiaries, representative payees, qualifying family members and representatives of deceased beneficiaries. The indictment alleges that Cruz, Knox-Sumrell, White, Elarde, and Brown recruited recipients of these benefits to receive additional payments on top of what they were legitimately owed. After Cruz fraudulently authorized the excess payments, Cruz, Knox-Sumrell, White, Elarde and Brown collected the majority of the money back from the recruited individuals, according to the indictment. Cruz also fraudulently authorized “underpayments” to White, Elarde, Brown and others, by falsely representing that they were relatives or representatives of deceased beneficiaries who were owed money from the Social Security Administration, according to the indictment.

Cruz authorized the fraudulent payments by entering false codes into the Social Security Administration’s electronic system, the indictment alleges. According to the indictment, Social Security Administration procedures allowed Cruz to authorize a payment of less than $6,000.00 to a recipient without supervisor approval. Cruz authorized the fraudulent payments in amounts slightly less than $6,000 in order to avoid detection of the fraud, the indictment alleges.

The indictment also alleges that Knox-Sumrell falsely represented to recipients that she worked for the Social Security Administration in order to further the scheme

The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tracey Thanos, Special Agent in Charge of the Chicago Field Division of the Social Security Administration’s Office of the Inspector General.  “Employee fraud is something we take very seriously,” Thanos said. “We have no higher priority than investigating and pursuing justice whenever these instances occur, and we will continue to do so.”

The investigation is ongoing, the officials said.

The indictment seeks forfeiture from all five defendants of approximately $1,981,290, as well as a residence in Chicago. Each count of wire fraud carries a maximum sentence of 20 years in prison; a $250,000 fine, which may be increased to the greater of twice the gain or twice the loss3
from the crime; and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.  The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The government is being represented by Special Assistant U.S. Attorney Heidi Manschreck.

Related Material:

Indictment

Source: www.justice.gov

CHICAGO –(ENEWSPF)--July 9, 2015.  A real estate developer who defrauded the Village of Riverdale of over $370,000 in public funds was sentenced yesterday to 60 months in federal prison.

JOHN THOMAS, 52, of Chicago, owned and controlled Nosmo Kings LLC, which entered into an agreement with Riverdale to develop property along a marina in 2012. Only a portion of the funds were actually used for legitimate construction work. Thomas misappropriated $372,182 for his own personal use after creating and submitting fraudulent invoices for construction work that was never performed.

Thomas pleaded guilty to one count of wire fraud in May 2014. In addition to the five-year sentence, U.S. District Judge James B. Zagel ordered restitution of $372,182.

“John Thomas is a serial con man,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “Within months after release from probation from another federal conviction, the defendant set out to defraud the Village of Riverdale through the use of the village’s Tax Increment Financing program,” Harjani said.

Nosmo Kings entered into a TIF agreement with Riverdale in February 2012. Per the agreement, Thomas was required to submit documentation identifying completed construction expenses, including invoices and checks paid to vendors. Thomas created and submitted false invoices for non-existent companies and for companies that never performed work at the marina. For instance, one of the invoices requested reimbursement of $25,750 for construction supplies from a company that was actually a currency exchange to which Thomas owed money. Thomas used other TIF funds to pay personal expenses and the rent on his apartment.

The sentence 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 government is being represented by Assistant United States Attorney Sunil Harjani.

Source: www.justice.gov

ROCKFORD —(ENEWSPF)--July 9, 2015.  A Rockford man was sentenced yesterday in federal court on drug-trafficking and firearm charges.  JARVIS WASHINGTON, 28, of Rockford, Ill., was sentenced by U.S. District Judge Frederick J. Kapala to a total of 12 years in federal prison, and ordered to serve 4 years of supervised release following his term of imprisonment.  After a 3-day jury trial in U.S. District Court, Washington was convicted on April 1, 2015, of possession of heroin and cocaine base (“crack cocaine”) with intent to distribute, possession of marijuana with intent to distribute, and possession of a firearm and ammunition as a felon.

According to the indictment and evidence at trial, on Sept. 24, 2013, Washington possessed with intent to distribute at least 94.6 grams of heroin, 227.1 grams of crack cocaine, and 376.7 grams of marijuana.  Many of the drugs were already individually packaged for sale, and Washington possessed the tools to package the remaining drugs for sale.  In addition, Washington possessed a loaded .45 caliber handgun and both .45 caliber and .40 caliber ammunition.  Washington previously had been convicted of a felony punishable by a term of imprisonment exceeding one year and, therefore, was prohibited by law from possessing a firearm and ammunition.

The defendant was originally charged in state court and was transferred to federal court where he was charged under tough federal firearms laws as part of the Project Safe Neighborhoods program.  Project Safe Neighborhoods is an intensive, cooperative effort between local, state, and federal law enforcement to attack gun crimes.  The cornerstone of the program is that every defendant committing an offense involving a gun will be reviewed for possible federal prosecution in order to obtain the harshest penalties for the worst offenders.  Additional information about Project Safe Neighborhoods may be found at: www.psn.gov.

The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffrey A. Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Gary Caruana, Winnebago County Sheriff.  The Rockford Police Department and Loves Park Police Department assisted in the investigation.

The government was represented by Assistant U.S. Attorneys John G. McKenzie and Talia Bucci.

Source: www.justice.gov

Chicago —(ENEWSPF)—July 16, 2015. Attorney General Lisa Madigan today announced that an Illinois Department of Human Services (IDHS) caseworker was arrested on charges of theft and official misconduct for allegedly misappropriating more than $300,000 in assistance for needy families.

Debra Moore, 63, of Baytown, Texas, and formerly of Chicago, was arrested Wednesday in Chicago. Moore pleaded not guilty today in Cook County Criminal Court on one count of Theft of Government Monies exceeding $100,000, a class X felony punishable by six to 30 years in prison; and one count of Official Misconduct, a class 3 felony punishable by two to five years in prison.

Madigan alleged that Moore, an IDHS caseworker at the Woodlawn Family Community Resource Center, was selling LINK cards and adding unauthorized benefits to accounts of family and friends in exchange for cash payments. Between 2004 and 2013, Moore allegedly added more than $300,000 of unauthorized benefits to ineligible recipients, oftentimes in exchange for cash payments.

“The defendant’s acts cheated not only the taxpayers who fund the programs she was entrusted to manage, but also those who rely on these vital state services,” Madigan said.

Bond was set for Moore at $50,000. Her next court appearance is Aug. 6.

Assistant Attorney General Kilby Macfadden and Associate Director James S. Dorger are handling the case for Madigan’s Public Integrity Bureau. The investigation was conducted in cooperation with the Illinois Department of Human Services, the Illinois State Police, the Office of the Executive Inspector General and the United States Department of Agriculture Office of the Inspector General.

Source: www.illinoisattorneygeneral.gov

CHICAGO —(ENEWSPF)--July 17, 2015.  A former United States Marine from Calumet City stole the identities of several fellow Marines and used their information to illegally procure more than $138,000 from Navy Federal Credit Union, according to an indictment returned this week in federal court in Chicago.

While serving in Combat Logistics Regiment 3 at Camp Foster in Okinawa, Japan, LEONARD E. PARKER JR. obtained a Marine roster containing the personal information of several fellow Marines stationed at the camp, according to the indictment. After returning to the United States, Parker and a co-defendant, DONTREAL S. EVANS, allegedly used the Marines’ information to transfer approximately $138,798 from the Marines’ accounts into bank accounts belonging to individuals Parker and Evans had recruited into the scheme.

Parker and Evans offered to pay those individuals to allow Parker and Evans to control and access the accounts, the indictment states. The pair later withdrew funds and made purchases from the accounts they controlled, and kept the proceeds from the scheme, according to the indictment. Parker also allegedly filed false tax returns in the names of Marines whose personal information was on the roster.

The indictment, which was returned Thursday, charged Parker, 24, of Calumet City, with five counts of financial institution fraud; one count of aggravated identity theft; and four counts of filing false claims against the United States. Evans, 21, of Lansing, was charged in the indictment with three counts of financial institution fraud. The defendants’ arraignment in U.S. District Court in Chicago has not yet been scheduled.

Each count of financial institution fraud carries a maximum sentence of 30 years in prison, a $1 million fine and mandatory restitution. If convicted of aggravated identity theft, Parker also would face a mandatory, consecutive term of two years in prison. Each count of filing false claims carries a maximum sentence of five years in prison, a $250,000 fine, and mandatory restitution. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The indictment 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 Stephen Boyd, Special Agent in Charge of the Internal Revenue Service Criminal Investigation in Chicago.

The investigation is ongoing.

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

The government is being represented by Special Assistant U.S. Attorney Heidi Manschreck.

Related Material:

Indictment

Source: www.justice.gov

CHICAGO —(ENEWSPF)--July 21, 2015.  A senior accountant at the Illinois Medical District Commission embezzled nearly $130,000 from the agency by directing funds into her personal accounts while fraudulently claiming the payments had been sent to the agency’s energy provider, according to a federal criminal complaint unsealed today.

CYNTHIA FERNANDEZ-ALONSO, 42, of Berwyn, was arrested by FBI agents this morning. She was charged with embezzlement in a criminal complaint filed yesterday in U.S. District Court and unsealed after the arrest. She is scheduled to make an initial court appearance at 11:00 a.m. today before U.S. Magistrate Judge Sheila Finnegan.

According to the complaint affidavit, Fernandez-Alonso worked as a senior accountant for the Illinois Medical District Commission, a governmental agency that receives federal funds to facilitate collaboration among the various medical, health and social service agencies operating within the Illinois Medical District on Chicago’s Near West Side. Fernandez-Alonso had the sole responsibility of authorizing payments from the Commission’s bank account to its outside vendors, including Constellation Energy, the Commission’s electrical and natural gas supplier, according to the complaint affidavit.

From February 2014 to at least April 2015, according to the affidavit, Fernandez-Alonso used her position to direct payments from the Commission’s bank account into two personal checking accounts. Fernandez-Alonso recorded the payments in the Commission’s internal records, but attributed them as having been sent to Constellation Energy, according to the affidavit.

The affidavit describes how Fernandez-Alonso arranged for 32 separate direct deposits into her personal accounts at Bank of America and Chase Bank, totaling $129,487. On the same day she received one such deposit – for $4,852 on Dec. 10, 2014 – a purchase was made with her Chase debit card at Kay Jewelers for $2,847, the affidavit states.

The charge of embezzlement from a program receiving federal funds carries a maximum penalty of 10 years in prison and a $250,000 fine, as well as mandatory restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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 government is being represented by Assistant U.S. Attorney Maureen E. Merin.

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:

Complaint

Source: www.justice.gov