Chicago Police Officer, Deavalin Page, Convicted of Attempted Extortion

A Chicago Police officer was convicted today of obtaining two extortion payments totaling $3,200 from a cooperating tow truck driver in exchange for steering vehicle tows from accident scenes during an undercover investigation. The defendant, Deavalin Page, who was assigned to the South Chicago District at the time, was relieved of his police powers and assigned to desk duty following the payments that occurred in late 2007 and early 2008. Page was convicted on two counts of attempted extortion by a federal jury that deliberated a little more than two hours this morning after being presented with video recordings and other evidence of the payments during a trial that began Monday in U.S. District Court.

Page, 46, of Chicago, an officer since 1995, faces a maximum penalty of 20 years in prison and a $250,000 fine on each count of attempted extortion. He remains free on bond pending sentencing, which U.S. District Judge John Darrah scheduled for 1 p.m. on October 23.

Page was indicted last October as part of the Federal Bureau of Investigation’s Operation Tow Scam, a corruption probe of police officers who steered vehicle tows at accident scenes to favored tow drivers in exchange for extortion payments. Page is the eighth police officer to be convicted, along with four civilians—three of them tow truck drivers—and charges are pending against two additional police officers.

Evidence at the trial showed that Page obtained two payments from a cooperating tow truck driver, Brian Chandler, in exchange for steering him various tows. Chandler has pleaded guilty to wire fraud and bank larceny and is awaiting sentencing. The first payment, on November 28, 2007, was $2,000 in the bathroom of a coffee shop at 79th Street and Stoney Island. The second payment, on January 28, 2008, was $1,200 in the parking lot of a bank while Page was in his private vehicle. The latter payment, in part, was in exchange for towing three cars, at least one of which did not require towing, from an accident scene at 86th and Burnham involving a teenager who was driving her parents’ insured car.

The guilty verdict was announced today 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 F. McCarthy, Superintendent of the Chicago Police Department.

The government is being represented by Assistant U.S. Attorneys Michael Donovan and Steven Grimes.

Tweet

Lorne Campbell, Satan's Choice and #HellsAngels to be Discussed on Crime Beat Radio

On May 16th, Lorne Campbell and Pete Edwards discuss their book, Unrepentant: The Strange and (Sometimes) Terrible Life of Lorne Campbell, Satan's Choice and Hells Angels Biker on Crime Beat Radio.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.

Tweet

"Being Oscar" Bash at the Mob Museum #OscarsMemories

From Thursday, May 23 through Saturday, May 25,The Mob Museum will celebrate Oscar Goodman’s newly released autobiography Being Oscar: From Mob Lawyer to Mayor of Las Vegas.

Former mayor and current spokesperson for the host committee of the Las Vegas Convention and Visitor Authority, Oscar returns to the historic courtroom where he tried his first case. The Museum will be his debut appearance in Las Vegas and the premiere opportunity for locals to engage with Oscar while enjoying a variety of Oscar-inspired activities.

The Museum has planned an unparalleled three-day extravaganza to commemorate Oscar, his book launch, and our great city which is the backdrop for his story and acclaim.

Thursday, May 23

The Mob Museum’s lineup of “Being Oscar” events begins with a party on Thursday, May 23, from 6:30 to 9 p.m. at The Mob Museum. Admission is $10 for the general public; Museum members are free. Each attendee will receive a complimentary cocktail, and a signature “Being Oscar” face fan, live entertainment, and a free photo opportunity. Goodman will address guests in the Museum’s courtroom at 7:30 p.m. and will be available to sign copies of his book for attendees afterward. Books will be available for purchase at the Museum and food and drink will be available for purchase.

For tickets for the book launch party on 5/23, click here

Friday, May 24

The Mob Museum will host the first official Las Vegas book signing with Goodman. Special programming throughout the day will include three 30-minute presentations by Goodman in the courtroom followed by book signings. These events will take place at 11 a.m., 1 p.m., and 3 p.m. “Being Oscar” face fans and photo opportunities will be available to all Museum guests that day.

Click here for your ticket which includes a copy of the book Being Oscar and free museum admission. click here.

For ticket which includes a copy of the book Being Oscar, free museum admission, and your choice of one 30 minute presentation featuring Oscar Goodman, click here.

Saturday, May 25

At 10:30 a.m., Goodman will make a grand entrance at The Mob Museum, where he will gather with members of the public—all holding “Being Oscar” face fans—for a photograph on the Museum’s front steps. All guests on this day will receive FREE admission to the Museum with the purchase of a book from our retail store and will have the chance to compete in a “Being Oscar” look-a-like contest to be judged by Goodman himself, as well as a trivia contest; raffle prizes will be given out all day. Goodman will sign copies of his book for Museum attendees from 11 a.m. to 3 p.m.

For free admission with the purchase of a book for May 25, click here.

Tweet

The American Kidney Fund (AKF) will host Kidney Action Day at Millennium Park

The American Kidney Fund (AKF) will host Kidney Action Day at Millennium Park in Chicago on Saturday, May 11, 2013, from 10 a.m.– 2 p.m.  The event is free and open to the public and will include free kidney health screenings (including blood pressure and glucose screenings), interactive fitness demos, local entertainment, children's activities and healthy food samples.

“Kidney disease is a serious health concern in the Chicago area, where many neighborhoods have prevalent rates of kidney failure well above the national average,” said LaVarne A. Burton, president and chief executive officer of the American Kidney Fund. “Kidney Action Day provides an opportunity for local residents to learn about this disease, get tested, and help spread the word to others who may be at risk. We are so pleased to have the Chicago Department of Public Health and its Healthy Chicago initiative as a strategic partner. Working together, we can empower local residents to take action for their health and prevent future cases of this chronic condition.”

“The Chicago Department of Public Health is proud to join the American Kidney Fund in bringing Kidney Action Day to Chicago,” said Dr. Bechara Choucair, commissioner of the Chicago Department of Public Health. “Kidney Action Day is a great way for residents to take part in helping Chicago become the healthiest city in the nation. I encourage all residents to join us on May 11 for Kidney Action Day, get screened and take preventative steps to protect their health.”

Kidney Action Day will bring together hundreds of local health advocates, patients and members of the greater Chicago community to raise awareness for those at risk for chronic kidney disease (CKD). The free health screenings will check for indicators of kidney and heart health, diabetes, and other important health measures. There is no pre-registration required for those interested in participating in the screening, which is open to everyone 18 and older. Participants are encouraged to bring the whole family out to enjoy an educational and entertaining event.

It is estimated that as many as 31 million people in the United States are living with CKD, the nation’s ninth-leading cause of death. CKD is known as a silent killer because it usually presents no symptoms in the early stages, making screening essential for those who are at risk—particularly those who have the key risk factors of diabetes, high blood pressure or a family history of CKD. Other common risks for kidney disease include having heart disease, being over age 60, or being African American, Asian American, Native American, or of Hispanic ethnicity.

CKD is an often-preventable health condition. If an individual has developed early CKD, detection through testing is a key factor in slowing or stopping the progression of the disease. Left undiagnosed and untreated, CKD can lead to heart attack, stroke, kidney failure and death. In many neighborhoods in Chicago, kidney failure rates are nearly double the U.S. average.

Because prevention and early detection are vital to keeping at-risk individuals in good health, AKF’s national campaign, Pair Up: Join the Fight to Prevent Kidney Disease, urges the public to learn if they’re at risk for kidney disease and to spread the word to friends or loved ones who also may be at risk. As part of Pair Up, AKF educates the public about risk factors and offers Kidney Action Days and other free kidney health screenings in cities nationwide.

The American Kidney Fund is dedicated to fighting kidney disease through direct financial support to patients in need, education and prevention efforts. In 2012, AKF provided almost $190 million in treatment-related assistance to dialysis patients across the country and more than $7.9 million to patients in Illinois.
Kidney Action Day is made possible through the generous support of National Sponsor American Renal Associates, Lead Regional Sponsor U.S. Renal Care, Inc., Strategic Partner Chicago Department of Public Health and other friends in the communities AKF serves. For more information on Chicago Kidney Action Day, visit http://www.kidneyfund.org/kidney-action-day/locations/chicago.html.

For more information on the American Kidney Fund, visit www.kidneyfund.org.

Tweet

John "Big Man" Venizelos Scheduled to Plead Guilty to Narcotics Trafficking, #BonannoCrimeFamily #HellsAngels

A Bonanno crime family associate charged with joining a Canadian drug lord to become one of New York City's largest marijuana suppliers is scheduled to plea guilty to narcotics trafficking charges.

John "Big Man" Venizelos, 33, is believed to have secured a plea deal from Brooklyn federal prosecutors that will significantly reduce his time in prison - averting the life sentence he faced if convicted at trial, sources said. But because Venizelos honored the mob's omerta code of silence and refused to hand over information to the feds, sources said, he's expected to face approximately 10-14 years in prison when sentenced eventually by Brooklyn federal Judge Raymond Dearie.

Venizelos - who sports horn-rimmed glasses and wears Ralph Lauren Polo ensembles - held a "straight job" before his arrest managing "Jaguars 3", a Brooklyn nightspot run by Vincent "Vinny Green" Faraci, a Bonanno crime family soldier. The nightclub, located in Brooklyn's Sunset Park neighborhood, attracts patrons that have included several cast members of "The Sopranos” — including Tony Sirico, who portrayed the fictional mob family's “Paulie Walnuts”.

It was his sideline as an alleged drug trafficker, however, that attracted attention to Venizelos. He was arrested by Drug Enforcement Administration agents earlier this year and charged with being one of the biggest New York customers of French Canadian drug kingpin Jimmy “Cosmo” Cournoyer.

Cournoyer - who is awaiting trial in Brooklyn federal court - allegedly lies at the center of $1 billion narcotics ring and operated through alliances he created between the Hells Angels, the Mexican Sinaloa drug cartel, the Bonanno crime family, and the Montreal Mafia, The Post first reported.

Only weeks after Venizelos' arrest, federal prosecutors accused him of trying to intimidate witnesses who might testify against him.

Prosecutors say Venizelos sent encrypted BlackBerry messages to a colleague explaining that Cournoyer had bankrolled a special "murder fund" to underwrite hits against informants in the high-profile international narcotics case.

Prosecutors also say they seized letters written by an unnamed colleague of Venizelos that discussed the Bonanno associate’s ties to organized crime - including references to sit-downs with captains in various New York La Cosa Nostra families The DEA also utilized informants to secretly record tapes of Venizelos discussing drug deals, officials said, and then seized a number of unlicensed handguns when they searched Venizelos' residence.

John Meringolo, a New York Law School professor who represents Venizelos, initially insisted that the $100,000-plus seized by feds at Venizelos' residence wasn't drug money - it was simply cash for tipping exotic dancers at the "Jaguars 3" club.

Meringolo told the judge today that he had reached a plea agreement with prosecutors and the judge adjorned the hearing until Wednesday on procdural grounds.

Cournoyer's attorney, Gerald McMahon, says he plans to vigorously fight the case against the French Canadian at an upcoming trial this summer.

Thanks to Mitchell Maddux.

Tweet

Boston Bomber Dzhokhar Tsarnaev at Federal Prison Hospital That Was Past Home for Several Mobsters

When Boston Marathon bombing suspect Dzhokhar Tsarnaev entered the federal prison hospital at Devens, he became the latest high-crime prisoner name to take up temporary residence at the former Army base.

The Federal Medical Center Devens, which opened in 1996, serves as a federal Bureau of Prisons hospital for inmates needing specialized or long-term medical or mental health care. The facility is on the site of the former Cutler Army Hospital.

Inmates treated there have been mobsters, corrupt politicians and people convicted of financial crimes.

Among the mobsters to spend time in the hospital was Sicilian crime boss Gaetano Badalamenti, who died of heart failure in 2004. He was convicted as ringleader of the $1.65 billion drug smuggling operation known as The Pizza Connection.

Other mafiosi at the hospital have included John "Sonny" Franzese, an underboss of the Colombo crime family convicted of racketeering; and John Riggi, former boss of the DeCavalcante crime family, released in November after 22 years at various prisons. He was convicted of conspiracy in the murder of acting mob boss John D’Amato. Also serving time at Devens was Frank Locascio, a former underboss of the Gambino crime family.

The 1,000-bed medical center opened its doors in Devens at 42 Patton Road in 1999, three years after Fort Devens formally ceased to be an Army base.

The base served as the Army’s New England headquarters for 79 years. It was conveyed to the Massachusetts Development Finance Agency for redevelopment as Devens, a residential and business community made up of property formerly part of surrounding towns. The army still has its reserve forces training center on sections of the former base.

Among the better-known soldiers to serve there was Gen. Colin Powell, who met his wife while assigned to Fort Devens.

The U.S. Marshals Service said that Dzhokhar Tsarnaev had left Beth Israel Deaconess Medical Center overnight and been transported to Devens.

Thanks to George Barnes.

Tweet

Damon Rucker Convicted of Witness Retaliation

A former Freeport, Illinois man was convicted late yesterday of witness retaliation by a federal jury in U.S. District Court in Rockford following a two-day jury trial. Damon Rucker, 36, was found guilty of causing bodily injury to a witness on December 20, 2012, with intent to retaliate against the witness for testifying against Rucker in federal court.

According to the incitement and evidence at trial, Rucker was initially convicted in federal court in Rockford on July 31, 2012, having pled guilty to a drug trafficking crime. A co-defendant, who also pled guilty in that case, agreed to cooperate with the government and testified against Rucker during Rucker’s sentencing hearing.

On December 20, 2012, Rucker, with intent to retaliate against the co-defendant for testifying, slammed the witness’s head against a concrete wall while both were in custody. At the time, the victim was in the process of being transported to a different jail and was in hand and leg shackles. Rucker was not shackled at the time.

Rucker faces a maximum sentence of 40 years in prison, in addition to a term of supervised release of up to five years following his imprisonment, and a fine of up to $250,000. The court must impose a reasonable sentence under the advisory United States Sentencing Guidelines. Sentencing is scheduled for July 30, 2013, at 2:30 p.m. in federal court in Rockford. The conviction was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent in Charge of the Chicago Office of Federal Bureau of Investigation. The United States Marshals Service and the Ogle County Sheriff’s Office assisted in the investigation.

The government was represented by Assistant U.S. Attorneys Scott R. Paccagnini and John G. McKenzie.

Tweet

Up to $5000 Reward Offered for Capture of Paris "Polerowski" Poe

Cory B. Nelson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation (FBI), is asking for the public’s help in locating a Chicago man who allegedly violated the conditions of his parole and has been on the run from authorities. Mr. Nelson also announced that the FBI is offering a reward of up to $5,000 for information that leads to the apprehension of the fugitive.


Paris Poe, aka “Polerowski,” is wanted pursuant to a federal arrest warrant for unlawful flight to avoid custody and confinement, a felony offense. Poe is also being sought for questioning in a federal murder investigation.

The arrest warrant was filed last week in the United States District Court in Chicago. Poe was convicted in the Circuit Court of Cook County for aggravated battery and robbery, and after spending a portion of his sentence in state custody, he was released in June 2011 on parole for the remainder of his sentence. According to the warrant, Poe is charged with traveling interstate to avoid custody for a parole violation. Efforts thus far by law enforcement to locate and apprehend him have been unsuccessful. During the course of their search for Poe, authorities developed information that Poe may have fled the state, leading to the filing of the federal warrant and an ongoing manhunt coordinated by the Chicago FBI.

Poe’s last known address was 5904 South Indiana in Chicago. He is described as a black/male, 33 years old, 6’0” tall, 200 lbs., with brown eyes and black hair that he often wears in braids. He has numerous tattoos, including “Chief Hobo” on his upper right arm and “RIP Angie” on his upper left arm.

Poe is considered armed and dangerous. Anyone with information about his whereabouts is asked to call the Chicago office of the FBI at (312) 421-6700 or local law enforcement authorities.

Tweet

Abdella Ahmad Tounisi Arrested by FBI's Chicago Joint Terrorism Task Force on Charge of Supporting Terrorism Overseas

An alleged attempt by an Aurora, Illinois man to travel to Syria in order to join a jihadist militant group operating inside Syria led to his arrest Friday evening. The arrest was announced by Cory B. Nelson, Special Agent in Charge of the Chicago Field Office of the Federal Bureau of Investigation (FBI), and Gary S. Shapiro, U.S. Attorney for the Northern District of Illinois.

Abdella Ahmad Tounisi, 18, a U.S. citizen, was taken into custody without incident at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force as he attempted to board a flight destined for Istanbul, Turkey. He was charged in a criminal complaint filed today in U.S. District Court with one count of attempting to provide material support to a foreign terrorist organization, a felony offense. Tounisi appeared before U.S. Magistrate Judge Daniel G. Martin and was ordered held until his next court appearance, which is scheduled for 9:30 a.m. on April 23, 2013.

In making the announcement, Mr. Nelson stated that the investigation that culminated in Tounisi’s arrest began in 2012 and that there is no connection between this case and the events that occurred over the last several days in Boston.

The complaint states that Tounisi is a close friend of Adel Daoud, an individual arrested in September 2012 for attempting to detonate a bomb outside a Chicago bar and that Tounisi and Daoud appeared to share an interest in violent jihad. While Tounisi allegedly discussed attack techniques and targets prior to Daoud’s arrest, Tounisi did not participate in Daoud’s attempted attack.

According to the complaint, from January to April 2013, Tounisi conducted online research related to overseas travel and violent jihad, focusing specifically on Syria and the Jabhat al Nusrah terrorist group. Jabhat al Nusrah is listed by the U.S. Department of State as an alias for al Qaeda in Iraq (AQI), a designated foreign terrorist organization. The complaint alleges that Tounisi searched online for information about travel from Chicago to Syria, obtained a new passport, and, beginning in late March 2013, made online contact with an individual Tounisi believed to be a recruiter for Jabhat al Nusrah. That individual was in fact an FBI employee acting in an online undercover capacity. The complaint further alleges that Tounisi and the undercover employee exchanged a series of e-mails in which Tounisi shared his plan to get to Syria by way of Turkey, as well as his willingness to die for the cause. During the exchanges, Tounisi also sought advice from the undercover employee on travel from Istanbul to the Turkish city of Gaziantep, which lies near the border of Turkey and Syria.

The complaint states that on April 10, Tounisi purchased an airline ticket for a flight from Chicago to Istanbul and on April 18, the undercover employee provided Tounisi with a bus ticket for travel from Istanbul to Gaziantep. Tounisi arrived at O’Hare International Airport’s international terminal Friday evening, and after passing through airport security, he was arrested.

If convicted of the charge filed against him, Tounisi faces a maximum penalty of 15 years in federal prison.

The JTTF is composed of special agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state, and local law enforcement agencies. The Justice Department’s National Security Division assisted in the investigation.

Mr. Nelson expressed his gratitude to U.S. Customs and Border Protection for the significant support provided by its officers during the arrest of Tounisi.

The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

Tweet

"Gangsters of Boston" Discussed by Author George Hassett on Crime Beat Radio

April 25th, George Hassett will discuss his fascinating book, Gangsters of Boston on Crime Beat Radio.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Tweet

@TheMobMuseum to Host "Protectors of the State - A Conversation with 3 Former Govenors"

On Thursday, April 25 at 6:30 p.m., The Mob Museum, The National Museum of Organized Crime and Law Enforcement, will host “Protectors of the State – A Conversation with Three Former Governors,” in its historic courtroom. Featuring a panel discussion with former Nevada Governors Bob List, Senator Richard Bryan and Bob Miller, the event will be moderated by journalist and author Jack Sheehan. This Courtroom Conversation’s discussion is part of the Museum’s ongoing commitment to presenting informative and thought-provoking programming to the community. The event is brought to the Museum through generous contributions from Mike Sloan, Rogich Communications Group and Robin and Danny Greenspun.

Beyond its borders, perceptions of Nevada have been challenged because of its libertarian social norms, times of economic hardship, and the presence of organized crime. “Protectors of the State” will feature three of Nevada’s great leaders who navigated tumultuous waters while continuing to modernize the State and defend its image to the outside. In addition, the discussion will include stories from Gov. Miller’s recently released book, “Son of a Gambling Man.” A book signing with Gov. Miller will follow the discussion.

Doors will open at 6 p.m. with a reception including light fare and refreshments. The program will begin promptly at 6:30 p.m. in The Mob Museum’s historic courtroom. Following the moderator-led discussion among the panel, audience members will have a chance to ask questions. The program will conclude by 8 p.m. and will be followed by Gov. Miller’s book signing.

Tickets for the April 25 event are $10 for members and $19.95 for non-members and include complimentary libation and light fare. To make reservations, please call (702) 229-2734 or visit http://themobmuseum.org/plan-your-visit/upcoming-events.

Bob List served as the 24th Governor of Nevada from 1979 to 1983. Previously, he served as the Carson City District Attorney and the Nevada Attorney General. Currently, List practices law in Las Vegas with the law firm Kolesar & Leatham, Chtd. He was the last Governor to serve from outside Clark County until Jim Gibbons' election.

A native Nevadan, Senator Richard Bryan won his first statewide election as Nevada’s Attorney General where he played a major role in successfully defending Nevada’s gaming regulatory structure in the Federal Courts. In 1982, he was elected to the first of two terms as Governor. In 1988 he was elected to the first of two terms in the U.S. Senate. He was the only Senate member to simultaneously serve on these U.S. Senate Committees: Finance; Commerce, Science and Transportation; and Banks, Housing and Urban Affairs.

When Bob Miller arrived in Las Vegas as a boy, it was a small, dusty city—a far cry from the glamorous, exciting place it is today. His father, Ross Miller, had operated on both sides of the law on some of the meaner streets of industrial Chicago, and brought his family to Las Vegas so he could create a legitimate career out of gaming. As Bob grew up, so did Vegas; the city’s population doubled every decade during the 1900’s and Las Vegas was now a “town” of some two million. He went on to become Nevada’s longest serving governor, holding office from 1989 to 1999. Bob’s new book, “Son of a Gambling Man,” is a warm family memoir, with just a little bit of  “The Godfather” and “Casino” thrown in for spice, making it a unique and memorable story.

Tweet

Ricin Letter Sent to The President

A second letter containing a granular substance that preliminarily tested positive for ricin was received at an offsite mail screening facility. The envelope, addressed to the President, was immediately quarantined by U.S. Secret Service personnel, and a coordinated investigation with the FBI was initiated. It is important to note that operations at the White House have not been affected as a result of the investigation.

Additionally, filters at a second government mail screening facility preliminarily tested positive for ricin this morning. Mail from that facility is being tested.

Any time suspicious powder is located in a mail facility, field tests are conducted. The field and other preliminary tests can produce inconsistent results. Any time field tests indicate the possibility of a biological agent, the material is sent to an accredited laboratory for further analysis. Only a full analysis performed at an accredited laboratory can determine the presence of a biological agent such as ricin. Those tests are currently being conducted and generally take 24 to 48 hours.

The investigation into these letters remains ongoing, and more letters may still be received. There is no indication of a connection to the attack in Boston.

Tweet

Hospital Owner, Executive, and Four Doctors, from Chicago’s Sacred Heart, Arrested in Alleged Medicare Referral Kickback Conspiracy

The owner and another senior executive of Sacred Heart Hospital and four physicians affiliated with the west side facility were arrested today for allegedly conspiring to pay and receive illegal kickbacks, including more than $225,000 in cash, along with other forms of payment, in exchange for the referral of patients insured by Medicare and Medicaid to the hospital, announced U.S. Attorney for the Northern District of Illinois Gary S. Shapiro.

Agents from the FBI and the U.S. Department of Health and Human Services Office of Inspector General today also began executing search and seizure warrants in connection with an ongoing investigation of alleged Medicare and Medicaid fraud schemes at the hospital involving emergency room evaluation, testing, and observation services that were not medically necessary, as well as medically unnecessary sedation, intubation, and tracheotomy procedures performed on patients. Approximately $2 million in Medicare reimbursement payments was seized today from various bank accounts.

Arrested were Edward J. Novak, 58, of Park Ridge, Sacred Heart’s owner and chief executive officer since the late 1990s; Roy M. Payawal, 64, of Burr Ridge, executive vice president and chief financial officer since the early 2000s; and Drs. Venkateswara R. “V.R.” Kuchipudi, 66, of Oak Brook, Percy Conrad May, Jr., 75, of Chicago, Subir Maitra, 73, of Chicago, and Shanin Moshiri, 57, of Chicago.

Sacred Heart Hospital is a 119-bed acute care facility located at 3240 West Franklin Blvd. in Chicago. Approximately 40 in-patients were in the hospital this morning, and representatives of the HHS Centers for Medicare and Medicaid Services (CMS) were on site and coordinating with the Illinois Department of Healthcare and Family Services to ensure continuity of patient care.

“These charges and the affidavit’s other allegations outline a kickback conspiracy to bribe doctors to refer patients to Sacred Heart where they would be treated in in an environment in which the quality of care and appropriate medical analysis were less important than maximizing the numbers of patients funneled into the hospital,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.

“The payment of kickbacks or bribes in exchange for the referral of Medicare or Medicaid patients, regardless of the form in which they are paid, is a crime,” said Lamont Pugh, III, Special Agent in Charge of the Chicago Region of HHS-OIG. “The Office of Inspector General will continue to work closely with our law enforcement partners to aggressively investigate alleged illegal patient referral schemes and hold accountable those who seek to exploit vulnerable patients and the Medicare and Medicaid programs.”

“Today’s arrests demonstrate our commitment to enforcing the laws intended to prevent abuses of the Medicare and Medicaid programs and to preserve the ability of those programs to provide appropriate medical services to the elderly and the needy,” said Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of investigation.

The defendants were charged in a complaint that was filed yesterday and unsealed today after the arrests. All six defendants were scheduled to appear beginning at 3 p.m. before U.S. Magistrate Judge Daniel Martin in Federal Court.

Kickback Conspiracy

A 90-page affidavit in support of the criminal complaint and search and seizure warrants states that former Sacred Heart Physician A began cooperating in the investigation in October 2011, and Administrator A and Administrator B began assisting in January 2013 and February 2012, respectively. Each of them made consensual recordings of meetings and telephone conversations with other executives, administrators, physicians, and employees that are described in the affidavit.

According to the complaint—at Novak’s direction and with his approval and Payawal’s assistance—Sacred Heart implemented a scheme to pay kickbacks to physicians in return or referrals of Medicare and Medicaid patients. Novak and Payawal allegedly tried to conceal the scheme by masking payments as fictitious rental payments; paying the salaries of physicians’ employees; providing physicians ghost contracts for duties without any real responsibilities; creating alternative billing arrangements; and purporting to pay physicians to supervise and teach non-existent medical students.

In a conversation that Administrator A recorded on February 28, 2013, Novak and Payawal allegedly identified Drs. Moshiri, Maitra and May as physicians receiving regular kickback payments who Administrator A should pay.

Between January 2010 and February 2013, May allegedly received $74,000 in the form of 37 checks, for $2,000 each, disguised as “rental payments”; Moshiri, a podiatrist, allegedly received $86,000 in 38 checks pursuant to a purported contract to teach podiatry students; and Maitra allegedly received $68,000 in 34 checks pursuant to a purported teaching contract—and the $228,000 total in alleged kickbacks were all in exchange for their referral of patients to Sacred Heart, the charges allege.

In a recorded conversation last month, Maitra allegedly explained to Administrator A that he used to make Novak “so much money” performing almost daily penile implant procedures on patients, but that he no longer performed as many of those procedures because Medicare had decreased its rates of reimbursement for the procedure. Maitra did not comment on whether the patient need for the procedure had somehow changed, according to the affidavit.

Regarding Dr. Kuchipudi, Administrator A told agents that he was one of Sacred Heart’s most prolific patient referral sources and, according to Physician A, was known within the hospital as the “king of nursing homes.” According to Administrator A, Sacred Heart paid Kuchipudi for Medicare patient referrals in two ways: first, by paying most of the salaries of a physician’s assistant and a registered nurse who were effectively employed by Kuchipudi, and second, by paying Physician B for treating Kuchipudi’s patients at Sacred Heart, despite the fact that Kuchipudi, and not the hospital, billed insurers for the services Physician B provided to those patients. These arrangements allegedly benefited Kuchipudi as a result of the hospital absorbing employee salary costs that Kuchipudi would normally have to pay himself.

Tracheotomy Procedures

The investigation is also probing claims that Sacred Heart Physician D, a pulmonologist, allegedly performs a high number of unnecessary intubations and prolongs them by directing heavy sedation of his patients, often resulting in tracheotomies being performed by Sacred Heart surgeons that may not have been medically necessary. Administrator A told agents that during a lunch with Novak and Payawal in December 2012, they both explained that tracheotomy cases provide substantial insurance reimbursement income for the hospital. On March 1, 2013, Administrator A recorded Novak stating that tracheotomies are Sacred Heart’s “biggest money maker” and the hospital can make $160,000 for a tracheotomy if the patient stays 27 days. On March 7, 2013, the Intensive Care Unit case manager told Administrator A that she must often “stretch” a tracheotomy patient’s stay to 28 days to maximize Medicare reimbursements “to make Novak happy.”

Novak’s Business Interests

According to the affidavit, Novak has direct or indirect ownership interest in various related entities, including Superior Home Health LLC, a home health care company; the Golden L.I.G.H.T. clinics, which are family practice/internal medicine clinics operated as divisions as Sacred Heart; the Chen Medical center; the Garfield Kidney Center LLC, an outpatient dialysis center; and the Bentley Insurance Group, a medical malpractice insurance company. Novak also owns various real estate and corporate management holding companies, and prior to June 2012, he operated the Chicago R.E.A.C.H Foundation, a purported non-profit, senior citizen program financed by the state of Illinois.

In a series of recorded conversations over the last two months, Payawal told Administrator A that a substantial part of Sacred Heart’s revenue comes from Medicare and Medicaid reimbursements and explained various ways in which revenue generated from the hospital is transferred to and among Novak’s other corporate interests.

Conspiracy to violate the federal anti-kickback statute carries a maximum penalty of five years in prison and a $250,000 fine and restitution is mandatory. 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. Attorneys Joel Hammerman, Terra Reynolds, and Ryan Hedges.

The public is reminded that a complaint 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 case falls under the umbrella of the Medicare Fraud Strike Force, which expanded operations to Chicago in February 2011, and is part of the Health Care Fraud Prevention and Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. More than five dozen defendants have been charged in health care fraud cases since the strike force began operating in Chicago.

To report health care fraud to learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.

Tweet

Ovidiu Isac, Chicago Leader of Romanian-Based Conspiracy That Obtained $1.6 Million in False Tax Refunds, Sentenced to 85 Months in Prison

The leader in Chicago of a Romanian-based international conspiracy to fraudulently obtain millions of U.S. tax dollars was sentenced to just over seven years in federal prison. The defendant, Ovidiu Isac, oversaw and directed nearly two dozen co-defendants in the United States who used their bank accounts to receive fraudulent federal income tax refunds after overseas co-conspirators filed hundreds of false tax returns claiming refunds in the names of Romanian citizens who had visited the United States on exchange student visas.

At least 470 false tax returns, typically claiming refunds between $4,000 and $7,000, were filed and resulted in a loss of more than $1.6 million to the U.S. Treasury during the conspiracy that spanned three tax years between 2007 and 2009. The returns were filed in the names and Social Security numbers of individuals who had previously traveled to the United States on temporary student visas and had filed tax returns in the past, but who were likely no longer living in the U.S. nor filing a real return in their own name. Isac led and organized the co-conspirators in Chicago and controlled the flow of money to his co-conspirators in Romania. On one occasion, Isac led a group of co-conspirators in physically attacking a group of individuals who were associated with someone who refused to pay Isac his cut of the proceeds.

Isac, 31, a Romanian citizen who lived in Skokie, was sentenced on Friday to 85 months in prison and ordered to pay restitution totaling $1,641,209 by U.S. District Judge Charles Norgle. Isac pleaded guilty in January to conspiracy to defraud the United States and theft of government funds. He will be subject to deportation after completing his sentence.

Isac was arrested in April 2010 and was among 24 defendants who were indicted in July that year for their roles in the conspiracy. Nineteen of the defendants have been convicted and sentenced, while five remaining co-defendants are fugitives.

Evidence in two companion cases showed that the fraudulent returns typically claimed large deductions for moving expenses, and the fraud was concealed by electronically submitting false wage and tax statements. The returns were filed in the names of real individuals and employers who likely were unaware that their identities and information were being misused. At least 200 bank accounts in the names of more than 75 individuals were used to receive and obtain the tax refund money triggered by the fraudulent returns.

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; James C. Lee, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division; and Gary Hartwig, Special Agent in Charge of Homeland Security Investigations (HSI) in Chicago.

The government was represented by Assistant U.S. Attorneys Matthew Burke, Jennie Levin and Julie Porter.

Tweet

Stephen Talty Discusses "Agent Garbo: the Brilliant, Eccentric Secret Agent who Tricked Hitler & Saved D-Day"

April 18th, Stephen Talty discusses his fascinating book titled Agent Garbo: the Brilliant, Eccentric Secret Agent who Tricked Hitler & Saved D-Day on Crime Beat Radio. An investigation of the life and career of Garbo, World War II spy and history’s greatest double agent.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Tweet

Harold Schechter Discusses "Psycho USA: Famous American Killers You Never Heard Of" on Crime Beat Radio

On April 11th, Harold Schechter (http://www.haroldschechter.com/) discusses his book, Psycho USA: Famous American killers you never heard of, on Crime Beat Radio.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Tweet

Teen Gang Mobs Continue to Attack Shoppers and Tourists on Chicago's Magnificent Mile

More than two dozen teens were arrested Saturday night after dozens of groups began randomly attacking pedestrians on Chicago's Magnificent Mile.

Police responded to reports of disturbances around 6:30 p.m. Saturday near Michigan and Chicago avenues. They said a number of teens took to the streets and started fighting.

Police said 28 teens were arrested during the incident and charged with misdemeanor reckless conduct and battery and later released, according to Police News Affairs. Eleven other teens were charged with misdemeanor charges after they allegedly attacked a group of women on the Chicago Transit Authority's Red Line, police said.

"You have over three to four hundred teenagers with mob action, jumping on individuals that are downtown," community activist Andrew Holmes said. "Multiple people have been arrested and I caution those parents that get this call about your child being arrested -- maybe you need to check your child."

Officers began breaking up the attacks by ushering teens to the Red Line. Chaos continued underground but many attackers reportedly left the area. "I just saw a cluster run down to the Red Line," CTA passenger Amanda Dobson said. "I didn't know what was going on. I just kind of stepped back and let the police do what they needed to do."

Police continued to patrol the area on bikes, horses and on foot as smaller groups wandered around the Loop.

It is not clear if the attacks are related to a similar mobbing of Ford City Mall last month.

Residents were concerned that this could be the first in a long line of attacks after warm weather brought on a string of similar instances last year. "It's been happening a lot around here," said Eric Baldinger, who works along the Mag Mile. "Just keep your wallet close and your purse closer."

Others said the attacks were disappointing and feared for the future of the city. "I think it’s very childish," resident Angelica Wilson said. "That’s what wrong with the generation today because there’s always petty fights going on down here and everybody getting hurt. We don’t need more problems."

Thanks to Alexandria Fisher.

Tweet

Illinois State Rifle Association Calls for Firing of @Chicao_Police Superintendent Garry McCarthy

The ISRA is once again calling upon Chicago Mayor Rahm Emanuel to fire Police Superintendent Garry McCarthy.  This latest call for McCarthy's ouster comes after a mob of young thugs - estimated to be in the hundreds - swarmed the Magnificent Mile shopping district Saturday night and began beating dozens of innocent shoppers.  This latest mob action appears to be the most serious in a string of events over the past two years involving gangs of youths randomly attacking shoppers on North Michigan Avenue.

"Just like dyeing the Chicago River green on St. Patty's Day, cracking tourists' heads on North Michigan Avenue is becoming a Windy City tradition," commented ISRA Executive Director, Richard Pearson.  "The first warm night of the year, and all hell breaks loose in the city's most tony shopping district.  It should be clear to everybody by now that Supt. McCarthy has lost control of the city.  What are things going to be like when the weather really heats up?  What has to happen before Emanuel wakes up and gives the nod to a more effective top cop?"

"The ISRA has been cautioning folks against making Chicago a leisure time destination for a few years now," continued Pearson.  "Unless you're the kind of person who wants to be terrorized, beaten, raped or robbed, then you should definitely find another place to vacation.  For the law-abiding citizen, Chicago has become just too dangerous to visit."

"While vicious mobs have been busily destroying Chicago's tourism industry, Mayor Emanuel and Supt. McCarthy have been busy as well – vilifying law abiding firearm owners," said Pearson.  "If they spent more time thwarting crime and less time trying to take guns away from hunters and sportsmen, then Chicago might be a better place in which to live and work."

"The sad events of Saturday night will certainly bolster efforts to pass concealed carry legislation down in Springfield," said Pearson.  "Good people have a right to defend themselves against lawless thugs.  I'm positive that the prospect of encountering armed citizens would make such flash mobs vaporize in a hurry."

The ISRA is the state's leading advocate of safe, lawful and responsible firearms ownership.  For more than a century, the ISRA has represented the interests of millions of law-abiding Illinois firearm owners.

Tweet

Nancy Mullane Discusses "Life After Murder: Five Men in Search of Redemption" on Crime Beat Radio

On April 4th, Nancy Mullane (www.lifeaftermurder.com/) discusses her fascinating book, Life after Murder: Five Men in Search of Redemption on Crime Beat Radio.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Tweet

William Tapes, Suspect in FBI-Involved Shooting Incident Surrenders

A man wanted in connection with the March 25, 2013 incident that resulted in an FBI agent firing shots at a car surrendered to FBI special agents yesterday afternoon and has been charged in connection with the incident, announced Cory B. Nelson, Special Agent in Charge of the Chicago Division of the Federal Bureau of Investigation (FBI), and Gary S. Shapiro, United States Attorney for the Northern District of Illinois.

WILLIAM TAPES, age 52, whose last known address was 165 North Central Avenue in Chicago, Illinois, was the subject of a manhunt led by the Chicago FBI since the incident occurred on Monday. Tapes was charged in a criminal complaint filed today in U.S. District Court in Chicago with one count of assault on a federal officer, a felony offense.

According to the complaint, FBI special agents observed an individual later identified as Tapes kneeling near a vehicle’s tires and suspected that Tapes was stealing the center of the chrome wheels on that vehicle. Tapes was then seen getting into the driver’s seat of a sedan in which two other individuals were passengers. As agents approached the sedan to talk to the occupants, they identified themselves as “police” and “FBI.” The agents commanded Tapes to turn off the engine of the sedan and to get out of the car, but Tapes put the car in reverse and abruptly backed up. The agents continued to direct Tapes and the passengers in the sedan to get out of the car, but none complied with the commands. After several seconds, the sedan, which was being driven by Tapes, lurched forward, stopped briefly, and then maneuvered around an FBI vehicle which had been parked approximately 10 to 20 feet in front of the sedan. As Tapes maneuvered around the FBI vehicle, he allegedly headed directly toward one of the agents. That agent jumped out of the way to avoid being run over and fired his handgun into the sedan.

The complaint alleges that the sedan then left the parking lot at a high speed and was next seen by the agents after it had been involved in an accident. According to the complaint, the agents saw one of the passengers of the sedan at the scene of the accident, but neither Tapes nor the other passenger remained at the scene. A witness reported that the driver of the sedan crawled out of the driver’s side window and left the scene of the accident on foot.

According to investigators, friends and family of Tapes reached out to the FBI’s Chicago office on Wednesday in an effort to arrange for his surrender, which occurred Thursday afternoon at the Chicago Field Office. Tapes appeared this morning in U.S. District Court before Magistrate Judge Jeffrey Cole, who ordered him held without bond pending his next scheduled court appearance, which is set for Wednesday, April 3, 2013 at 10:00 a.m.

Investigation of the incident and the search for Tapes was aided by the Chicago Police Department.

If convicted of the charge filed against him, Tapes faces a possible maximum sentence of 20 years in prison.

The public is reminded that a complaint is not evidence of guilt, and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

Tweet

Joe Serio Discusses the #Russian #Mafia on Crime Beat Radio

March 28th, Joseph D. Serio’s (www.joeserio.com) discusses his investigation into the Russian Mafia on Crime Beat Radio.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Tweet

Shannen Rossmiller to Discuss Hunting Terrorists on Crime Beat Radio

March 21st, cyber sleuth Shannen Rossmiller (www.shannenrossmiller.com) discusses her work hunting down terrorists online on Crime Beat Radio.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Tweet

Former NBA Referee, "Personal Foul" Author Tim Donaghy to Appear at the Mob Museum

In Las Vegas, sports betting is legal and that makes it a haven for sports fans each year during popular sporting events, including March Madness. At The Mob Museum, the National Museum of Organized Crime and Law Enforcement, visitors will learn about the history of the sports wire and how sports betting came to be part of the Las Vegas casino experience. This year, they will also get up close and personal with Tim Donaghy, former NBA referee and “Personal Foul” author, whose intimate knowledge of the game landed him in prison—and made him a sports media celebrity.

On Tuesday, March 19 at 10:30 a.m., Donaghy will present one of his NBA referee jerseys to the Museum during a news conference. From 1 to 4 p.m. that afternoon, he will sign copies of his book, “Personal Foul,” in the Museum and be available to discuss sports betting tips with guests. On the following day, Wednesday, March 20 at 6:30 p.m., he will speak in the Museum’s courtroom about the experiences detailed in his book. Following the presentation, he will sign copies of “Personal Foul” and answer questions from guests.

In his career with the NBA, Donaghy tracked personal relationships that existed between referees and players, coaches and owners to successfully pick games correctly 75 percent of the time.

Since being published in his book, “Personal Foul,” Donaghy’s story has been featured by more than 100 programs, including “60 Minutes,” ESPN, Fox's “Your World” and on CNN Headline News. Additional media exposure has included The New York Times, the Washington Post, the Philadelphia Daily News, the Chicago Tribune, Sports Illustrated and countless radio appearances and interviews.

He currently appears on more than a dozen current radio shows as well as on television. He recently picked games successfully during the NBA playoffs on ESPN Radio in Miami and Dallas at a rate of more than 78 percent. Today, Donaghy remains in demand as an NBA insider, appearing regularly on numerous sports talk shows throughout the United States.

Tweet

Edwin Ernesto Rivera Gracias, Member of MS-13 Gang, Added to Top 10 Fugitive List

Edwin Ernesto Rivera Gracias, wanted for the murder of a 69-year-old Colorado man who was dumped on the side of the road after being brutally beaten and stabbed, has been named to the Ten Most Wanted Fugitives list.

A reward of up to $100,000 is being offered for information leading directly to the arrest of Rivera Gracias, who is a member of the violent Mara Salvatrucha gang—MS-13—and is believed to be in El Salvador. “Today we are asking for media and public assistance in bringing this dangerous fugitive to justice,” said James Yacone, special agent in charge of our Denver office.

Special Agent Phil Niedringhaus, who leads the FBI’s violent crimes squad in Denver, noted, “MS-13 is one of the most violent gangs in the United States, and Rivera Gracias appears to have embraced that lifestyle.”

The fugitive, a Salvadoran national, is approximately 29 to 33 years old with brown hair and brown eyes. He is 5’10” tall, weighs about 170 pounds, and has a variety of tattoos, including “MS-13” across his back, “LA” on his right forearm, and “Nena” on his left hand.

The murder he is charged with occurred in August 2011. The victim—a long-time family acquaintance of Rivera Gracias’ teenage girlfriend—was choked, beaten, and stabbed. His body was then dumped in the mountains outside of Denver, where it was later discovered by a bicyclist.

The investigation soon focused on Rivera Gracias and accomplices, including his girlfriend, explained Special Agent Russ Humphrey, a member of the FBI’s Rocky Mountain Safe Streets Task Force, who worked the case. “The murder was vicious,” Humphrey said.

Rivera Gracias fled from Denver to Los Angeles and is now believed to be in his native El Salvador. Intelligence analysts with our MS-13 National Gang Task Force helped to positively identify Rivera Gracias, who also goes by the names Ernest Rivera and Edwin Rivera.

Rivera Gracias has ties to other MS-13 gang members in Colorado, Los Angeles, and El Salvador, and may attempt to gain entry to the U.S. using fraudulent identification. He may also visit Mexico and Guatemala.

“Elevating Rivera Gracias to the Top Ten list sends a message,” said Special Agent Niedringhaus. “No matter where you are as a fugitive—in the U.S. or anywhere in the world—we are coming after you.”

He added, “The FBI has put significant resources into fighting MS-13, and our gang task force works closely with our international partners to gather intelligence to help dismantle this transnational group. I think our chances of catching Rivera Gracias are excellent, especially with the substantial reward being offered.”

If you have any information concerning the whereabouts of Rivera Gracias, please contact the FBI’s Denver Field Office at 303-629-7171 or your nearest law enforcement agency or U.S. Embassy or Consulate. You can also submit a tip online.

Since its creation in 1950—63 years ago today—498 fugitives have been on the Ten Most Wanted Fugitives list and 467 have been apprehended or located, 154 of them as a result of citizen cooperation.

Tweet

Mistress of JFK & Sam Giancana to be Portrayed by @ChristinaBLind in the "Ride the Tiger" Play

Christina Lind will change dresses often as she brings Judith Exner to life on a New Haven stage. She also aims to change how history views the mistress of both JFK and the don of the Chicago mob—to get beyond the wardrobe and the good looks.

Lind plays Exner in Ride the Tiger, which premieres Long Wharf on March 27 and runs through April 21. Willilam Mastrosimone’s play, directed by Gordon Edelstein, explores how sex and roughhouse politics intersected in the once-storied Camelot of JFK’s brief presidency.

Exner remained quiet for 15 years about her love affair with JFK. When it was revealed in the context of Senate hearings on U.S. intelligence gathering in the 1970s, Lind says she was character-assassinated as a gold-digging slut.

Lind doesn’t buy that character-assassination for a moment. Nor have other writers who have subsequently frayed the JFK myth.

This is Exner’s first posthumous trip on a major theatrical stage, Lind intends to seize the opportunity. She’s on a mission to change the way history views Exner. "She was vilified for being caught up in a river she couldn’t control,” Lind said in an interview a week into rehearsals, when the many dresses she’ll be wearing were not yet quite finished.

The play goes back and forth between Joe Kennedy’s plotting the rise of his senator son into the presidency; Frank Sinatra’s gigs in Las Vegas, where his pal JFK takes note of Exner; and Sam Giancana’s various digs as he murders his way through the drug trade and maybe trying to help JFK and the CIA knock off Fidel Castro with exploding cigars. By some accounts, Exner carried messages between the mobster and the president.

Mastrosimone’s play is a whirlwind of intrigue. It offers a behind-the-scenes look at the 1960 presidential campaign, where Giancana allegedly fixed union support for JFK in the expectation that the young prez’s brother Bobby would take off the Department of Justice heat. When that didn’t happen, Giancana allegedly expected some other kind of payback or threatened to retaliate.

For example: In the second act, Sam says to Judy: “Bobby wants to fight organized crime, he should indict his fuckin’ brother. The Bay of Pigs was a crime. And it was organized.”

Or Jack to Judy in a moment of post-coital truth-telling:  “You know, Judy, we’re more alike than I thought. We ride the tiger just to say we did it.”

There’s a lot of history mixing with racy, messy, and intriguing might-have-beens.

The through line is Exner, a rich young California woman who early on married an actor and whose social circle was the wealthy and the powerful. In other words, Lind points out, she was no poor social climber.

Actors are always looking for windows that let them inside a character. Lind (pictured) is a young actress who’s best known for her work as Bianca in the daytime soap All My Children. Exner is the first real character she has portrayed. Lind said she feels a sense of artistic “responsibility” to portray the character’s complexity, not the black and white.

Lind read in Exner’s biography, Judith Exner: My story, that Exner absolutely never let the powerful men in her life pay for her. “She was self-sufficient, wouldn’t let people buy her stuff. She booked her own flights.”

Those would be airplane flights for her cross-country trysts with the young new president, who is portrayed in this play as a sexual athlete who needs Exner—or Marilyn Monroe or any number of other women—either to distract him from his presidential burdens or to relieve the extreme back pain from his PT-109 wartime injuries.

“She wanted what everyone wanted, to be loved. And they used her. And before she knew it, she was used up. Affairs with powerful people are not black and white. She had power herself,” reflected Lind.

That power was perhaps rooted in Exner’s beauty. In her intense dark eyes and, in the view of some, a Jackie look-alike quality. “She was not a slut or easy. I feel she had a great personality, a charisma too. She had a sway over these men. JFK was a prince, and he had something like love for her,” Lind argued.

Lind noted that her colleagues [Douglas Sills as playing JFK, John Cunningham as Jack’s dad Joe, Jordan Lage as mobster Giancana] have a different challenge: to portray with freshness characters people already know.

Exner is different. In the received history as well as in the play, “all the other characters characterize her as a certain thing,” Lind observed. She called it “a great privilege for me to reveal her in this way. These details about her have been ignored by history, as is the case for many women, especially those who were in submissive position with powerful men. It’s easier to call them home-wreckers than to examine their psychology.”

Lind was asked how she would want Exner, who died at age 65 in 1999, to respond to the play if she were in the audience. “I would want her to tell me, ‘Thank you for understanding me,’” Lind responded. “That’s my greatest wish.’”

The young actress, who is about the age Exner was in the 1960s, splits her time between Brooklyn and L.A. She has several other roles percolating for her next steps in her career, she said. She declined to name them, to avoid hexing her chances. Then she went back to her colleagues to resume running lines for Judith Exner.

Thanks to Allen Appel.

Tweet

Is Piz Rizza Playboy Material?

When "Mob Wives Chicago" star Pia Rizza found out there were naked pictures of her being shopped to various media outlets ... she knew the drill -- RELEASE THE PHOTOS HERSELF!!!



Pia told TMZ ... she took the racy pics -- which she allowed TMZ to publish -- sometime last year, while still filming "Mob Wives" and sent them to her boyfriend to get some feedback on whether she had the right stuff for Playboy. But Pia told TMZ... the pics somehow got into the wrong hands -- and someone was trying to sell them without her permission.

Pia says she wanted the pics posted for two reasons:

1. She doesn't want anyone making money off of HER image
2. Yeah, she wants Playboy to notice

Thanks to TMZ.

Tweet

Stacy Dittrich Discusses "Searching for Sandra: The Story Behind the Disappearance of Sandra Cantu" on Crime Beat Radio

On Thursday, March 14th, Veteran Police Officer Stacy Dittrich (www.stacydittrich.com) will be a guest on Crime Beat Radio to discuss her book, Searching for Sandra: The Story Behind the Disappearance of Sandra Cantu.

Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST., on the Artist First World Radio Network at artistfirst.com/crimebeat.

Tweet

Tony DeBois, Former Markham Deputy Police Chief, Arrested on Federal Civil Rights Charge Alleging Aggravated Sexual Abuse

The former deputy police chief in south suburban Markham was arrested yesterday after being charged in a federal indictment with violating the civil rights of a victim through acts that included aggravated sexual abuse. The defendant, Tony D. DeBois, was arrested at his home this morning without incident by special agents of the FBI. DeBois was the deputy chief of the Markham Police Department when the alleged crime occurred on September 23, 2010.

DeBois, 41, of Matteson, was scheduled to appear at 2:15 p.m. yesterday before U.S. District Magistrate Judge Sidney I. Schenkier in federal court. He was charged in a single-count indictment that was returned by a federal grand jury on Wednesday and unsealed yesterday following his arrest.

The indictment alleges that on September 23, 2010, while acting in his official capacity as Markham deputy police chief, DeBois violated the victim’s right to bodily integrity by acts that included aggravated sexual abuse.

DeBois served as deputy chief between 2008 and approximately 2011, and he was also the Markham Police Department’s head of internal affairs between 2007 and approximately 2011, when he became Markham’s inspector general until sometime in 2012. DeBois began his law enforcement career with the former Chicago Housing Authority Police Department in the 1990s, and he was a police officer in south suburban Harvey from 1999 to 2007, when he joined the Markham Police Department.

The arrest and indictment were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent in Charge of the Chicago Field Office of the Federal Bureau of Investigation. They thanked Anita Alvarez, Cook County State’s Attorney, for her office’s extensive cooperation in the investigation, as well as the Illinois State Police.

The government is being represented by Assistant U.S. Attorney April Perry.

The felony civil rights violation carries a maximum penalty of life 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 the charge 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.

Tweet

# OperationPaperTiger Hitman Gerardo Salazar-Rodriguez Convicted on RICO and Murder Conspiracies with Brothers Julio and Manuel Leijasanchez

Three defendants are facing mandatory life imprisonment after a federal jury found them guilty of racketeering conspiracy, murder in aid of racketeering, and related crimes after a six-week trial in U.S. District Court. Two brothers, Julio and Manuel Leijasanchez, who operated a lucrative, black-market counterfeit identification document business in Chicago’s Little Village community for at least 15 years, were convicted along with Gerardo Salazar-Rodriguez, whom they directed to commit an execution-style murder in Mexico of a fledgling competitor. The murder plot was intended to prevent two former employees from starting a competing business and to maintain control over employees of their operation, which generated annual revenues of approximately $3 million.

Evidence at trial showed that Salazar-Rodriguez fired more than a dozen shots in killing one of the victims in his taxi cab near Mexico City in April 2007, and the jury heard transcripts of intercepted telephone conversations in which he boasted to the brothers after the murder. He also hunted for a second victim whom he believed was in Mexico at the time but who was actually in federal custody in Chicago. That intended victim, who pleaded guilty to fraudulent identification document charges, cooperated and testified as a government witness at trial.

After the jury returned guilty verdicts on all counts, the trial ended when the jury returned special findings regarding the murder that raised the maximum penalty for racketeering conspiracy to life in prison. The murder in aid of racketeering conviction carries a mandatory life sentence for all three defendants. U.S. District Judge Rebecca Pallmeyer scheduled sentencing for September 12.

“This violent conspiracy went to great lengths to corner the fake document market in Chicago, going so far as to murder a rival vendor in order to protect their lucrative turf,” said Gary Hartwig, Special Agent in Charge of HSI in Chicago. “The guilty verdicts clearly demonstrate our unyielding resolve to dismantle the criminal organizations that perpetuate and profit from document fraud within our borders.”

The trial and convictions stem from Operation Paper Tiger, an investigation conducted by Homeland Security Investigations agents, along with other local, state, and federal law enforcement agencies. In April 2007, the investigation resulted in charges against 24 defendants and the dismantling of the Leija-Sanchez fraudulent document organization that operated in and around the Little Village Discount Mall at West 26th and Albany in Chicago. Except for the three trial defendants and three fugitives, all of the remaining defendants were convicted.

Manuel Leija-Sanchez, 45, and Salazar-Rodriguez, 40, were arrested later in Mexico and were extradited to the United States in 2010 and 2011 to stand trial, together with Julio Leija-Sanchez, 37, who was arrested in Chicago in 2007. A third Leija-Sanchez brother, Pedro, 40, was also arrested in Mexico and extradited to the U.S in 2011. He pleaded guilty last August to racketeering conspiracy for operating the fraudulent ID ring with his brothers and is awaiting imposition of an agreed sentence of 20 years in prison, currently scheduled for March 13.

Evidence at trial showed that the three Leija-Sanchez brothers operated the bustling illegal business between 1993 and 2007. The Mexico-based organization was supervised by an overall leader living in Chicago, and the leadership position rotated among the Leija-Sanchez brothers. The organization sold as many as 100 sets of fraudulent identification documents each day, charging customers approximately $200 per “set,” consisting of a Social Security card and either an immigration “green card” or a state driver’s license.

Manuel and Julio Leija-Sanchez and Salazar-Rodriguez conspired to murder Guillermo Jimenez-Flores, also known as “Montes,” a former member of their organization who became a fledgling rival and was shot to death by Salazar-Rodriguez in Mexico in April 2007. The three trial defendants also were convicted of conspiracy to kill a second victim, Bruno Freddy Ramirez-Camela, whom they believed was in Mexico but was actually incarcerated in Chicago.

The convictions were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. He commended the years of hard work by HSI agents, who were joined in the investigation by the Chicago and Galveston, Texas Police Departments and the Chicago offices of the U.S. Secret Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The government of Mexico and Mexican law enforcement partners also provided significant assistance.

The government is being represented by Assistant U.S. Attorneys Michelle Nasser, Andrew Porter, and William Ridgway.

Tweet

Dimitry Vishnevetsky Sentenced to Six Years in Prison for Causing Clients to Lose $1.6 Million in Fraud Scheme

A former Chicago investment advisor was sentenced yesterday to six years in federal prison for an investment fraud scheme that swindled clients, causing them to lose more than $1.6 million. The defendant, Dimitry Vishnevetsky, pleaded guilty last August to wire fraud and bank fraud, admitting that he misappropriated funds raised from investors for his own purposes, including to pay for such expenses as mortgage and car payments, travel and vacations, restaurant bills, athletic club dues, and to make trades for himself, while using additional investor funds to make Ponzi-type payments to clients.

Vishnevetsky, 34, of Chicago, was ordered to pay $1,684,763 in restitution, nearly all of it to a half-dozen investment clients, by U.S. District Judge Ruben Castillo, who likened Vishnevetsky’s conduct to a financial storm that devastated the lives of his victims. Vishnevetsky was ordered to begin serving his sentence on May 28.

“This offense was entirely unnecessary,” the government argued at sentencing. “There was no good reason for this fraud, and the defendant, who was skilled in the world of finances, could have gotten a legitimate job. In fact, [he] obtained a bachelor’s degree in business administration and attended the University of Oxford.”

According to the court records, Vishnevetsky offered and purported to sell investments, including investments in funds which promised to trade S&P Futures, and a fund that could trade in things such as equities, futures contracts, and commodities, as well as brokerage and management services for some investors, and promissory notes, through Hodges Trading LLC and Oxford Capital LLC, which he controlled. Three purported Oxford funds existed in name only, as did the promissory notes, which Vishnevetsky described as London Interbank Offered Rate (LIBOR) adjusted notes.

Between September 2006 and March 2012, Vishnevetsky made false representations about the profitability of his prior and current trading, the use of the invested funds, the risks involved, the expected and actual returns on investments and trading, as well as false representations about the funds he purportedly traded. For example, Vishnevetsky created and provided some investors fraudulent trading results showing profits as high as 36 percent per year. In fact, any trades that Vishnevetsky actually made consistently resulted in losses, not profits.

The bank fraud conviction resulted from false statements Vishnevetsky made between 2007 and 2010 to Merrill Lynch Bank & Trust concerning his income and assets to cause the bank to issue, and later modify, two loans totaling approximately $519,500 to purchase a condominium in Chicago.

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

The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission, which filed a companion civil enforcement lawsuit, assisted in the investigation.

The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit stopfraud.gov.

Tweet

Mario J. Rainone Convicted of Being a Felon in Poessession of Firearm

An Addison man was convicted by a federal jury of being a felon in possession of a firearm. The defendant, Mario J. Rainone, was found guilty following a two-day trial. The jury was empaneled on Monday before U.S. District Judge Harry Leinenweber in Federal Court.

Rainone, 58, who was arrested in February 2009, remains in federal custody pending sentencing, which Judge Leinenweber scheduled for June 5. Based on Rainone’s status as an armed career criminal under federal law, the offense carries a mandatory minimum of 15 years and a maximum of life in prison. Rainone also faces a maximum fine of $250,000. The court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

Rainone was arrested by Addison police on state charges on February 12, 2009. A state search warrant was executed the next day at an apartment where Rainone was staying in the 1200 block of West Lake Street in the western suburb. A Smith & Wesson Model 19-3 .357 caliber revolver, along with personal papers and other belongings, were found in the nightstand in the bedroom used by Rainone, resulting in the federal firearms charge. The gun was stolen in October 2008, according to the original owner, who testified at trial.

A stipulation was entered at the trial that Rainone has a prior felony conviction. Federal law prohibits a convicted felon from possessing any firearm affecting interstate commerce.

The government was represented by Assistant U.S. Attorneys Amarjeet Bhachu and Michael Donovan. The verdict was announced 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 the Addison Police Department.

Tweet

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.

Tweet

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.)

Tweet

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.

Tweet

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.

Tweet