Gilbert Spiller, General with the Black P Stone Nation, Sentenced to 20 Years in the Federal Clink

A self-admitted high-ranking member of a Chicago street gang that operates in a south side neighborhood that he and his associates refer to as “Terror Town” was sentenced to 20 years in federal prison. The defendant, Gilbert Spiller, holds the rank of “general” in the Black P Stone Nation street gang and has criminal convictions spanning two decades. He was arrested by the FBI and Chicago Police in October 2011 and pleaded guilty last September to two counts of selling crack cocaine and one count of illegally selling a firearm.

The sentence was imposed today by U.S. District Judge Charles Kocoras in Federal Court.

Spiller, 37, admitted selling approximately 62.2 grams of crack cocaine on July 13, 2011, and approximately 59.2 grams of crack on July 21, 2011, to a confidential informant in the vicinity of the 7800 block of South Kingston Avenue.

On October 18, 2011, Spiller sold the same individual a loaded .40 caliber handgun, knowing that the individual was a felon on parole and had recently purchased crack from Spiller on two occasions and believing that the individual had a score to settle with rival gang members.

According to court documents, Spiller admitted that he first joined the Black P Stone Nation while he was in grade school. He was subsequently convicted of aggravated battery with a firearm and aggravated discharge of a firearm, which arose from a drive-by shooting that killed one victim and wounded four others. He was later convicted of aggravated battery of a Chicago Police officer.

“As his life in the gang further hardened, he became involved in violent crime,” the government wrote in a sentencing argument. Spiller “admitted that he was involved in shooting at other people on five to 10 different occasions and believed that he hit the people he was aiming at in roughly half of these shootings.”

The government was represented by Matthew Burke. The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry McCarthy, Superintendent of the Chicago Police Department. The investigation was conducted by the FBI/CPD Joint Task Force on gangs.

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Counterfeiting and Organized Crime

The report “Counterfeiting as an activity managed by transnational organized crime - The Italian case” was produced by UNICRI with the support of the Italian Ministry of Economic Development (Direzione Generale Lotta alla Contraffazione).

The Report promotes a better understanding of the involvement of transnational criminal networks in counterfeiting activities. Given the strong interest espressed by the MiSE and the important role played by Italian criminal organizations in the counterfeiting trade, the existing situation on the Italian territory has been analysed as a case study. The research efforts led to the mapping of the involvement of criminal organizations in Italy, highlighting their connections to other criminal groups and the links that exist betwee counterfeiting and other illicit traffics managed by transnational criminal networks.

The analysis was aimed at:

• Identifying investigations, court cases, data and information that prove the involvement of organized crime in counterfeiting activities;
• Highlighting the transnationality of counterfeiting and the functioning of related criminal networks;
• Presenting the specific role played by counterfeiting in organized crime’s strategies as a significant source of funds and an effective money laundering mechanism;
• Examining investigations, court cases and data proving the interconnection between counterfeiting and other illicit traffics, such as drug trafficking, arms smuggling and human trafficking;

The analysis of the investigations and court cases confirmed the actual involvement of organized crime in different phases of the management of counterfeiting crimes in Italy. As for the production phase and the retrieval of raw materials, the information collected confirmed the prominent role played by Southeast Asia as a region of origin and export, mostly because of cost efficiency reasons. Ordering counterfeit products through online catalogues is also increasingly widespread within organized crime’s strategies. Nonetheless, these sourcing methods exist alongside with a local production of counterfeit goods that is still present in Italy and is mainly concentrated in the hinterland of Naples, in Lombardy and Tuscany.

One of the most interesting aspects highlighted by the report is the increasing penetration of counterfeit goods into the regular selling channels. It appears that while in many cases the sellers are informed about the real nature of the goods and they are partners in crime, in other cases they are themselves victims of organized crime, which often imposes the selling of counterfeit products as a form of extortion.

The analysis also outlined the important involvement of the Camorra and the main clans active in counterfeiting activities in both the South and North of the country. An increasing interest by the ‘Ndrangheta was also revealed, mainly concentrated in the area of the Gioia Tauro’s seaport. For what concerns Chinese criminal networks, their presence in Italy appears to be more and more “organized”, with a significative involvement mainly in counterfeiting as well as smuggling of illegal goods, illegal migration, extortion and money laundering. The investigations and court cases analysed show that Chinese organisations often operate in agreement and in cooperation with the Camorra.

The research will serve as a basis for the design of a more comprehensive strategy of the Italian government against counterfeiting and organized crime.

View the Report. (It's in Italian.)

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Rita Crundwell, Former Dixon Comptroller, Sentenced to Nearly 20 Years in Federal Prison for $53.7 Million Theft from City

The former comptroller of the city of Dixon, Illinois, Rita A. Crundwell, was sentenced  to 19 years and seven months, nearly the 20-year maximum, in federal prison for stealing $53.7 million from the city over two decades. Crundwell was taken into custody to immediately begin her sentence, which was imposed by U.S. District Judge Philip G. Reinhard in Federal Court in Rockford.

Crundwell, 60, formerly of Dixon, pleaded guilty on November 14, 2012, to wire fraud, and agreed she also engaged in money laundering, in connection with stealing more than $53 million from the city since 1990 and using the proceeds to finance her quarter horse farming business and life of luxury. It is believed to be the largest theft of public funds in state history.

“This has been a massive stealing of public money—monies entrusted to you as a public guardian of Dixon, Illinois,” Judge Reinhard said in imposing sentence. Crundwell showed “greater passion for the welfare of her horses than the people of Dixon who she represented,” he added.

“While the city was suffering, the defendant was living her dreams,” Assistant U.S. Attorney Joseph Pedersen told the judge during a sentencing hearing that lasted more than two hours today. Crundwell’s “conduct in continuing to take millions of dollars from the city of Dixon to support her lavish lifestyle while she knew that Dixon was in dire financial straits was especially egregious,” the government argued.

Crundwell must serve at least 85 percent of her 235-month sentence, and there is no parole in the federal prison system.

Judge Reinhard granted the government’s request for an upward variance in the federal sentencing guidelines. In addition to the financial loss, he found that Crundwell caused a significant non-monetary loss, which involved a loss of public confidence in local government and a significant disruption of government function that struck “at the very heart of Dixon’s abilities to provide essentials for its citizenry.”

The judge ordered agreed restitution to the city of Dixon totaling $53,740,394, and he imposed an agreed forfeiture judgment in the same amount. Following her arrest on April 17, 2012, Crundwell agreed to the liquidation of assets that she had acquired with proceeds from her decades-long fraud scheme. To date, the United States Marshals Service has recovered more than $12.38 million from sales, including online and live auctions, of approximately 400 quarter horses, vehicles, trailers, tack, a luxury motor home, jewelry, and personal belongings, while sales of real property in Illinois and Florida remain pending. The net proceeds from the forfeited property—nearly $9.5 million so far—are being held in escrow pending further proceedings on restitution to the city of Dixon. Under federal law, the government may continue to seek additional assets of a defendant and obtain restitution for up to 20 years after a defendant is released from prison.

Gary S. Shapiro, United States Attorney for the Northern District of Illinois, praised the FBI agents who conducted the investigation and the U.S. Marshals Service for its efficient management of the seized assets. “We have used criminal and civil forfeiture proceedings to ensure the recovery of as much money as possible for the city of Dixon and its taxpayers,” he said. “Unfortunately, this case serves as a painful lesson that trust, without verification, can lead to betrayal.”

Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation, said, “The law is clear. Those who hold positions of trust must not abuse that trust. We remain committed to holding anyone using an official position for personal gain, as Rita Crundwell did for years, fully accountable for their corrupt actions.”

Dixon, with a population of approximately 15,733, is located about 100 miles southwest of Chicago.

According to her guilty plea and sentencing documents, Crundwell began working for Dixon’s finance department in 1970 while still in high school, and she was appointed comptroller/treasurer in 1983. She began the fraud scheme on December 18, 1990, when she opened a secret bank account, which she alone controlled, in the name of the city of Dixon. The name of the account was “RSCDA-Reserve Fund,” known as the RSCDA account. The initials stood for “Reserve Sewer Capital Development Account,” although no such account actually existed for the city, and Crundwell did not disclose the existence of the secret account. At today’s hearing, the government also presented evidence that Crundwell stole at least $25,000 from a separate Dixon bank account for its Sister City program between 1988 and 1990 before the charged fraud scheme began.

Crundwell began transferring money from city accounts to the RSCDA account in January 1991. Subsequently, she used her position as comptroller to transfer funds from Dixon’s Money Market account and various other city accounts to its Capital Development Fund account. She then repeatedly transferred city funds from the Capital Development Account into the RSCDA account and used the money to pay for her personal and private business expenses, including horse farming operations, personal credit card payments, real estate, and vehicles.

In 1991, Crundwell transferred more than $181,000 to the RSCDA account. As the fraud scheme continued, the amounts she stole increased to a high of $5.8 million in 2008, and she took an average of more than $2.5 million a year over the 20-year course of the scheme.

While she was taking these large sums of money, Crundwell participated in budget meetings with city council members and various city department heads. She repeatedly stated that the city’s lack of funds was due to a downturn in the economy and because the state of Illinois was behind in its payments. At the time she made those statements, Crundwell was stealing millions of dollars, causing Dixon to cut its budget, which had a significant impact on city operations.

As part of the fraud scheme, Crundwell created 159 fictitious invoices purported to be from the state of Illinois to show the city’s auditors that the funds she was fraudulently depositing into the RSCDA account were being used for a legitimate purpose. In one instance, on September 8, 2009, Crundwell wrote checks for $150,000 and $200,000 drawn on two of the city’s multiple bank accounts. She deposited both checks into Dixon’s Capital Development Fund account and, later the same day, wrote a check for $350,000 payable to “Treasurer” and deposited that check into the secret RSCDA account. Crundwell created a fictitious invoice to support the payment of $350,000 to the state of Illinois that falsely indicated the payment was for a sewer project in Dixon that the state completed. Later on September 8, 2009, Crundwell wrote a check drawn on the RSCDA account for $225,000, which she deposited into her personal RC Quarter Horses account. She used that money to cover a $225,000 check, dated September 1, 2009, drawn on the RC Quarter Horses account to purchase a quarter horse named Pizzazzy Lady. The purchase check would not have cleared if Crundwell had not deposited $225,000, using city funds, into her horse account on September 8.

To conceal the scheme, Crundwell picked up the city’s mail, including bank statements for the RSCDA account, to prevent other employees from learning about the secret account. When she was away, she asked a relative or other city employees to pick up the mail and separate any of her mail, including the statements for the RSCDA account, from the rest of the city’s mail.

Dixon’s mayor reported Crundwell to law enforcement authorities in the fall of 2011 after another city employee assumed her duties during an extended unpaid vacation. Crundwell, whose annual salary was $80,000 annually at the time, received four weeks of paid vacation, and she took an additional 12 weeks of unpaid vacation in 2011. While Crundwell was absent, her replacement requested all the city’s bank statements. After reviewing them, the employee brought the records of the RSCDA account to the attention of the mayor, who was unaware of the account’s existence.

While serving as Dixon’s comptroller, Crundwell also owned RC Quarter Horses LLC and kept her horses at her ranch on Red Brick Road in Dixon and the Meri-J Ranch in Beloit, Wisconsin, as well as with various trainers across the country. In addition to the horses and all of their equipment, among the assets seized or restrained were Crundwell’s two residences and horse farm in Dixon; a home in Englewood, Florida; 80 acres of vacant land in Lee County; a 2009 luxury motor home; more than four dozen trucks; trailers and other motorized farm vehicles; a 2005 Ford Thunderbird convertible; a 1967 Chevrolet Corvette roadster; a pontoon boat; jewelry; and approximately $224,898 in cash from two bank accounts.

The government is represented by Assistant U.S. Attorneys Joseph C. Pedersen and Scott Paccagnini.

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8 More Things Your Burglar Won't Tell You

*1.* Sometimes, I carry a clipboard. Sometimes, I dress like a lawn guy and carry a rake. I do my best to never, ever look like a crook.

*2.* The two things I hate most: loud dogs and nosy neighbors.

*3.* I'll break a window to get in, even if it makes a little noise. If your neighbor hears one loud sound, he'll stop what he's doing and wait to hear it again. If he doesn't hear it again, he'll just go back to what he was doing. It's human nature.

*4.* I'm not complaining, but why would you pay all that money for a fancy alarm system and leave your house without setting it?

*5.* I love looking in your windows. I'm looking for signs that you're home, and for flat screen TVs or gaming systems I'd like. I'll drive or walk through your neighborhood at night, before you close the blinds, just to pick my targets.

*6.* Avoid announcing your vacation on your Facebook page. It's easier than you think to look up your address. Parents: caution your kids about this. You see this every day.

*7.* To you, leaving that window open just a crack during the day is a way to let in a little fresh air. To me, it's an invitation.

*8.* If you don't answer when I knock, I try the door. Occasionally, I hit the jackpot and walk right in.

Original list of Things Your Burglar Won't Tell You.

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Vicente Garcia Jr., Latin Kings’ Second-in-Command, Sentenced to 40 Years in Prison for RICO Conspiracy and Related Gang Crimes

The second highest-ranking leader nationwide of the Latin Kings street gang was sentenced to 40 years in federal prison after being convicted at trial in 2011 of racketeering conspiracy (RICO) and related charges involving narcotics trafficking and violence that plagued numerous neighborhoods on the city’s north, south, and west sides. The defendant, Vicente Garcia, Jr., 35, the “Supreme Regional Inca” of the Almighty Latin King Nation, who oversaw the day-to-day illegal activities of all factions of the gang with some 10,000 members in Illinois alone, has been in federal custody since late 2008 and must serve at least 85 percent of his sentence.

The sentence was imposed last week by U.S. District Judge Charles Norgle, who also ordered five years of supervised release after Garcia’s prison term ends.

Garcia, also known as “DK” or “Disciple Killer,” together with Augustin Zambrano, the leader, or “Corona,” of the Latin Kings, and two additional defendants were found guilty in April 2011 of running a criminal enterprise to enrich themselves and others through drug trafficking and preserving and protecting their power, territory, and revenue through acts of murder, attempted murder, assault with a dangerous weapon, extortion, and other acts of violence.

“This sentence holds Garcia accountable for the barbaric enterprise known as the Latin Kings and his role in murder, attempted murder, shootings, beatings, drug trafficking, and other crimes,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.

Zambrano, 52, was sentenced to 60 years in prison in January 2012. Two other co-defendants convicted at the same trial also received substantial prison terms. Jose Guzman, a former “Nation Enforcer” in the 26th Street, or Little Village, faction, was sentenced to 35 years in prison, and Alphonso Chavez, the “Inca,” or leader of the gang’s 31st and Drake faction, was sentenced to 30 years in prison. Another co-defendant, Fernando “Ace” King, who preceded Garcia as Supreme Regional Inca and pleaded guilty, was sentenced in October 2011 to 40 years in prison.

Trial evidence included audio and video recordings of three beatings inflicted upon gang members for violating the rules and testimony documenting three murders and 20 shootings in the Little Village area. In addition to RICO conspiracy, Garcia was convicted of assault with a dangerous weapon and using a firearm during a violent crime.

Garcia was among a total of 31 co-defendants who were indicted in September 2008 or charged in a superseding indictment in October 2009. Of those 31 defendants, 24 pleaded guilty, four were convicted at trial, and three remain fugitives. From its origin and base in the west side Little Village community, the Latin Kings spread throughout Chicago and Illinois and established branches in other states, where local leaders acted with some autonomy but adhered to the rules and hierarchy of the Chicago gang, according to the evidence in the five-week federal trial.

The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, together with Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation, and Larry Ford, Special Agent in Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Chicago Police Department, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago, and the Cook County Sheriff’s Police also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).

In late 2006, ATF agents led an investigation that resulted in federal drug trafficking and firearms charges against 38 Latin Kings members and associates. In 2008, the FBI led an investigation that resulted in state and federal charges against 40 Latin Kings members and associates, including a dozen of the Zambrano co-defendants. In total, more than 80 Latin Kings members and associates have faced state or federal charges since 2006. The convictions result from a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police Department and other state and local partners, to dismantle the hierarchy of the Latin Kings and other highly organized, often violent Chicago street gangs.

Garcia and Zambrano were the highest-ranking Latin Kings to be convicted and sentenced since Gustavo “Gino” Colon, who also holds the title of “Corona,” was sentenced to life in prison in 2000.

The government was represented by Assistant U.S. Attorneys Andrew Porter, Nancy DePodesta, and Tinos Diamantatos.

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