Friday, July 13, 2012
Brendolyn Hart-Glover Charged with Scheming to Falsify Documents for State Review of Federally Funded Jobs Program
The former acting director of a Cook County job-training program was arrested today on federal charges for allegedly engaging in a scheme to falsify documents related to a state review of the county’s 2009 Summer Youth Program, which was funded by a federal grant. The defendant, Brendolyn Hart-Glover, was field operations manager and, during 2010, served as acting director of the Cook County President’s Office of Employment Training, or POET, which last year was renamed Cook County Works. POET received federal grants through the Illinois Department of Commerce and Economic Opportunity (DCEO), which allocated approximately $5.67 million to POET for summer youth jobs in 2009 and 2010, with POET enrolling approximately 1,400 participants in the 2009 program.
Hart-Glover, 42, of Chicago, who supervised POET’s field offices in Oak Forest, Cicero, Maywood, and Chicago Heights, was charged with engaging in a scheme to falsify documents in a criminal complaint that was unsealed today following her arrest. She was scheduled to appear at 4 p.m. today before U.S. Magistrate Judge Jeffrey Gilbert in Federal Court.
According to the complaint, in October 2009, DCEO sent POET a letter identifying problems with hundreds of participant files, including approximately 70 files that were missing entirely. In July 2010, DCEO informed POET that it would not reimburse approximately $1.4 million in questioned costs based on the documentation that POET had produced to that point, and DCEO gave POET another month to provide additional documentation.
According to several cooperating witnesses, including POET employees at the time, Hart-Glover instructed them to “reproduce” or “recreate” the files that were needed to maintain the funding. “Let me make something clear. It is not an option for you to not have the Summer Youth files,” she allegedly told a small group of employees in the summer of 2010. In August 2010, Hart-Glover wrote a letter that POET sent to DCEO along with two boxes containing allegedly recreated files and documents. The letter stated that 56 six of the approximately 70 missing files were located and submitted.
However, the charges allege that POET employees did not “locate” the files that POET produced to DCEO and, instead, POET employees recreated those files by forging, altering, and backdating documents. Also, contrary to statements in the letter, POET staff did not verify an applicant’s compliance with the Selective Service Act or check an applicant’s low-income status at the intake site because POET employees did not have access to computers at those locations, the complaint states.
In March 2011, federal agents interviewed Hart-Glover. The complaint alleges that she denied knowing the following: that POET employees falsified documents provided to the state agency; that some birth certificates were missing from the summer youth files; that birth certificates were being recreated by POET employees; and that anyone fabricated the public aid printouts so that the print date appeared to be the date of the application.
The arrest and charge were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of Inspector General in Chicago; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas P. Brady, Inspector in Charge of the U.S. Postal Inspection Service in Chicago. The Cook County Inspector General and the current administration of Cook County Works cooperated with the investigation.
The government is being represented by Assistant U.S. Attorney Greg Deis.
Making false statements carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If It’s Too Good To Be True, It Might be a Ponzi Scheme
If a respected member of your community offered you an investment opportunity, you might consider it. Especially if it’s a man of the cloth.
For nearly a decade, Martin Sigillito—a bishop in the American Anglican Convocation and a St. Louis attorney—convinced 200-plus people to do more than just consider it: they actually entrusted him with their money to invest in a financial venture. But this venture turned out to be an old-fashioned Ponzi scheme, and in April of this year, Sigillito was convicted of leading a conspiracy that swindled $52 million from victim investors.
How the scam began. In late 2000, Sigillito opened a law office but didn’t actually practice law—instead, he advertised his “international business consulting services.” One of the “services” he offered was participation in the British Lending Program (BLP), transformed by Sigillito into a Ponzi scheme. Through the BLP, investors could “loan” money to a real estate developer in the United Kingdom for short periods of time, mostly one year, at high rates of return—between 10 and 48 percent.
This real estate developer, according to Sigillito, had a knack for spotting undervalued properties he could flip for a profit, had options on land that would become valuable when re-zoned, and had inside connections with British authorities. It sounded like a win-win for investors.
Unfortunately, this British developer was not the wunderkind Sigillito made him out to be—he was just another link in the criminal conspiracy.
How did Sigillito convince his investors to part with their money? He exploited his personal ties to people and particular groups he was affiliated with—like his church, social clubs, professional acquaintances, family, and neighbors—in a technique known as affinity fraud. He also held himself up as an expert in international law and finance and claimed he was a lecturer at Oxford University in England (when in reality he had simply taken part in a summer legal program at Oxford).
Sigillito, who also conspired with another American attorney, insisted that his investors’ funds initially be placed into his trust account, from which he would take exorbitant fees for himself and his co-conspirators. Even though he told investors he would then transmit the money to the U.K., Sigillito actually kept most of the funds in one or more American bank accounts he controlled.
For a while, the scam was self-sustaining: Many investors let their interest payments accrue and rolled their loans over every year, plus Sigillito brought in enough new investors to make interest and principal payments to any previous investor who asked for payment. And all the while, he made enough in “fees” to support his affluent lifestyle: exclusive club memberships, expensive vacations, a country home, a chauffeur, private school for his kids, and collections of rare and antique books, maps, prints, coins, jewelry, and liquor.
How the scam ended. Eventually, an increasing number of investors meant increasing payout requirements, which resulted in the BLP making late interest payments or missing interest payments all together. Then investors began clamoring to withdraw their funds. And finally, Sigillito’s own assistant became suspicious of his activities and contacted the FBI.
The takeaway from this case? Fully investigate any investment opportunity before handing over your hard-earned money.
For nearly a decade, Martin Sigillito—a bishop in the American Anglican Convocation and a St. Louis attorney—convinced 200-plus people to do more than just consider it: they actually entrusted him with their money to invest in a financial venture. But this venture turned out to be an old-fashioned Ponzi scheme, and in April of this year, Sigillito was convicted of leading a conspiracy that swindled $52 million from victim investors.
How the scam began. In late 2000, Sigillito opened a law office but didn’t actually practice law—instead, he advertised his “international business consulting services.” One of the “services” he offered was participation in the British Lending Program (BLP), transformed by Sigillito into a Ponzi scheme. Through the BLP, investors could “loan” money to a real estate developer in the United Kingdom for short periods of time, mostly one year, at high rates of return—between 10 and 48 percent.
This real estate developer, according to Sigillito, had a knack for spotting undervalued properties he could flip for a profit, had options on land that would become valuable when re-zoned, and had inside connections with British authorities. It sounded like a win-win for investors.
Unfortunately, this British developer was not the wunderkind Sigillito made him out to be—he was just another link in the criminal conspiracy.
How did Sigillito convince his investors to part with their money? He exploited his personal ties to people and particular groups he was affiliated with—like his church, social clubs, professional acquaintances, family, and neighbors—in a technique known as affinity fraud. He also held himself up as an expert in international law and finance and claimed he was a lecturer at Oxford University in England (when in reality he had simply taken part in a summer legal program at Oxford).
Sigillito, who also conspired with another American attorney, insisted that his investors’ funds initially be placed into his trust account, from which he would take exorbitant fees for himself and his co-conspirators. Even though he told investors he would then transmit the money to the U.K., Sigillito actually kept most of the funds in one or more American bank accounts he controlled.
For a while, the scam was self-sustaining: Many investors let their interest payments accrue and rolled their loans over every year, plus Sigillito brought in enough new investors to make interest and principal payments to any previous investor who asked for payment. And all the while, he made enough in “fees” to support his affluent lifestyle: exclusive club memberships, expensive vacations, a country home, a chauffeur, private school for his kids, and collections of rare and antique books, maps, prints, coins, jewelry, and liquor.
How the scam ended. Eventually, an increasing number of investors meant increasing payout requirements, which resulted in the BLP making late interest payments or missing interest payments all together. Then investors began clamoring to withdraw their funds. And finally, Sigillito’s own assistant became suspicious of his activities and contacted the FBI.
The takeaway from this case? Fully investigate any investment opportunity before handing over your hard-earned money.
Chicago Mob Attacks and Crime Hurting Tourism?
Mayor Rahm Emanuel’s office swung into full damage-control mode Wednesday after Chicago’s convention and tourism chief was quoted as saying that a 38 percent spike in the city’s homicide rate and a troubling return to mob attacks downtown was hurting efforts to promote the city.
Don Welsh, president and CEO of Choose Chicago, told the Chicago Tribune’s editorial board that he’s gotten five or six calls from meeting planners in recent weeks concerned about whether Chicago is still a safe place to hold their meetings.
So far, nobody’s cancelling any meetings just yet. But, that’s a possibility if the Chicago Police Department does not get a quick handle on the problem, Welsh was quoted as saying.“We hope this sunsets quickly because all the good work we’re doing regionally, nationally and internationally, if this is not contained in a reasonable period of time, it will have an impact,” the Tribune’s website quoted Welsh as saying.“There are inquiries that are coming in from meeting planners that are saying, ‘Hey, I’m reading about what’s taken place in your city. Is your city safe?’”
In a follow-up interview with the Chicago Sun-Times a short time later Wednesday, Welsh insisted that his remarks had been “misinterpreted” and “taken out of context.”
He acknowledged that Choose Chicago has gotten “five or six calls over the last five or six weeks” from skittish meeting planners who had read or heard about Chicago’s surging homicide rate and about mob attacks in the downtown area.But, Welsh said, he has an answer for those inquiries.“They’re asking if these issues are taking place in the downtown area or near McCormick Place and the answer we’ve given them is an emphatic, ‘No,’” Welsh said.
“There has never been a second thought about how we position Chicago as the safest big city in the world. The only issue we’ve run into is this isolated gang activity that the mayor has been aggressively dealing with. [Overall] crime continues to be down. The shootings we have seen have been almost 100 percent isolated to neighborhoods outside the downtown core of Chicago where tourists and visitors from around the world frequent.”
Reminded that there was a shooting right off Michigan Avenue that police attributed to “gang-related road rage,” Welsh said, “An isolated incident could take place in any city in the world. But crime is down and continues to be down.”
Apparently concerned that his earlier remarks might land him in Emanuel’s doghouse, Welsh then talked about all of the “positive trends” he has seen lately in the drive to meet the mayor’s ambitious goal of attracting 10 million more visitors by 2020.“We just wrapped up what is probably the best June in the history of the city. We’ve announced the retention of over $3 billion in convention business. Last week alone, we opened international sales offices in Brazil and Japan,” he said.“All the metrics we look at — from hotel occupancy to bookings and editorial support domestically and internationally — are all up with positive information about our city. … Chicago is an incredibly safe and clean city that’s got any amenity that visitors, convention and leisure visitors want. The hallmark of the city has always been clean, safe streets and that had not changed.”
Emanuel’s communications director Sarah Hamilton said Welsh’s earlier claim that crime and the perception of it is hurting tourism is “simply false.”
“More and more people are coming to Chicago. Our visitors rates are up and hotel occupancy was over 90 percent last month,” Hamilton wrote, “one of the most outstanding months the city has had in recent history.”
The occupancy rate in June was 91.8 percent, up from 87.7 percent last year, even though the average daily rate per room, nearly $224 was up 1.9 percent compared to last year.“We expect the numbers to get better and better,” she said.And she noted that despite the spike in homicides, “overall crime” is down 10 percent across the city.
McPier CEO Jim Reilly was asked whether he shares Welsh’s view about Chicago’s crime problem and the impact it could have on conventions and tourism.“It certainly isn’t helping, but I don’t know that I would say it’s killing us,” Reilly said.“Part of it is reality. Part of it is the way the story sometimes gets played. But, I don’t know that I would go as far as Don. It’s clearly not helping. That’s what I would say.”
Reilly said he has not gotten any calls from convention and trade show planners concerned about whether it’s safe to come to Chicago.“In terms of our job conventions and trade shows — I don’t think it’s had much impact. Choose Chicago is the sales arm. He deals with tourists. We don’t. We aren’t directly getting any calls. If there are calls, they’d be going to Choose Chicago — not us,” Reilly said.
“The concern is that the perception would be that it’s not safe. I don’t know that it has thus far been a huge issue. But with the coverage, it has the potential to be that. To the extent there is a problem in terms of tourism, it is a perception problem. Clearly, there is a reality behind it and the mayor and the superintendent are working on that.”
Earlier this year, Emanuel merged Chicago’s two major tourism organizations to free up $1.3 million to market Chicago nationwide and overseas and set a goal of attracting 10 million more visitors by 2020.
At the mayor’s behest, the Chicago Convention & Tourism Bureau joined forces with the Chicago Office of Tourism and Culture. The new organization is now run by Welsh.
Choose Chicago subsequently opened international sales offices in Brazil, Germany and Japan bringing the city’s international sales efforts to eight offices on four continents.
Even with the expansion, Chicago spends the “least of any major U.S. city” on international marketing, officials said. Las Vegas has 22 overseas offices. New York (18), Los Angeles (15) and San Francisco (13) also run circles around Chicago.
As a result, Chicago claimed just 4.3 percent of the 27 million overseas travelers to the U.S. in 2010, compared to 32 percent for New York.
“We’re the third largest city in America and we’re 10th on foreign tourists. … And I do not believe that the best kept secret of America should be the city of Chicago,” the mayor told the Chicago Convention and Tourism Bureau at the time.
“We’ve consolidated three offices here in the city that deal with the tourism and convention business and we’re gonna open three offices around the world where the tourists exists. It doesn’t take a lot of geniuses to do that, but it took years of study to come up with that conclusion.”
Chicago currently attracts 40 million annual visitors, but only 1.2 million of them come from overseas.
Emanuel’s goal is to raise it to 50 million visitors by 2020 and to move into the top five cities for international tourists. Chicago currently ranks tenth among U.S. cities.
A 25 percent increase could raise visitor spending by $3.6 billion-a-year and boost annual tax revenue by up to $300 million.
“We have lagged in the tourism business. And it shows..”
Thanks to Fran Spielman
Don Welsh, president and CEO of Choose Chicago, told the Chicago Tribune’s editorial board that he’s gotten five or six calls from meeting planners in recent weeks concerned about whether Chicago is still a safe place to hold their meetings.
So far, nobody’s cancelling any meetings just yet. But, that’s a possibility if the Chicago Police Department does not get a quick handle on the problem, Welsh was quoted as saying.“We hope this sunsets quickly because all the good work we’re doing regionally, nationally and internationally, if this is not contained in a reasonable period of time, it will have an impact,” the Tribune’s website quoted Welsh as saying.“There are inquiries that are coming in from meeting planners that are saying, ‘Hey, I’m reading about what’s taken place in your city. Is your city safe?’”
In a follow-up interview with the Chicago Sun-Times a short time later Wednesday, Welsh insisted that his remarks had been “misinterpreted” and “taken out of context.”
He acknowledged that Choose Chicago has gotten “five or six calls over the last five or six weeks” from skittish meeting planners who had read or heard about Chicago’s surging homicide rate and about mob attacks in the downtown area.But, Welsh said, he has an answer for those inquiries.“They’re asking if these issues are taking place in the downtown area or near McCormick Place and the answer we’ve given them is an emphatic, ‘No,’” Welsh said.
“There has never been a second thought about how we position Chicago as the safest big city in the world. The only issue we’ve run into is this isolated gang activity that the mayor has been aggressively dealing with. [Overall] crime continues to be down. The shootings we have seen have been almost 100 percent isolated to neighborhoods outside the downtown core of Chicago where tourists and visitors from around the world frequent.”
Reminded that there was a shooting right off Michigan Avenue that police attributed to “gang-related road rage,” Welsh said, “An isolated incident could take place in any city in the world. But crime is down and continues to be down.”
Apparently concerned that his earlier remarks might land him in Emanuel’s doghouse, Welsh then talked about all of the “positive trends” he has seen lately in the drive to meet the mayor’s ambitious goal of attracting 10 million more visitors by 2020.“We just wrapped up what is probably the best June in the history of the city. We’ve announced the retention of over $3 billion in convention business. Last week alone, we opened international sales offices in Brazil and Japan,” he said.“All the metrics we look at — from hotel occupancy to bookings and editorial support domestically and internationally — are all up with positive information about our city. … Chicago is an incredibly safe and clean city that’s got any amenity that visitors, convention and leisure visitors want. The hallmark of the city has always been clean, safe streets and that had not changed.”
Emanuel’s communications director Sarah Hamilton said Welsh’s earlier claim that crime and the perception of it is hurting tourism is “simply false.”
“More and more people are coming to Chicago. Our visitors rates are up and hotel occupancy was over 90 percent last month,” Hamilton wrote, “one of the most outstanding months the city has had in recent history.”
The occupancy rate in June was 91.8 percent, up from 87.7 percent last year, even though the average daily rate per room, nearly $224 was up 1.9 percent compared to last year.“We expect the numbers to get better and better,” she said.And she noted that despite the spike in homicides, “overall crime” is down 10 percent across the city.
McPier CEO Jim Reilly was asked whether he shares Welsh’s view about Chicago’s crime problem and the impact it could have on conventions and tourism.“It certainly isn’t helping, but I don’t know that I would say it’s killing us,” Reilly said.“Part of it is reality. Part of it is the way the story sometimes gets played. But, I don’t know that I would go as far as Don. It’s clearly not helping. That’s what I would say.”
Reilly said he has not gotten any calls from convention and trade show planners concerned about whether it’s safe to come to Chicago.“In terms of our job conventions and trade shows — I don’t think it’s had much impact. Choose Chicago is the sales arm. He deals with tourists. We don’t. We aren’t directly getting any calls. If there are calls, they’d be going to Choose Chicago — not us,” Reilly said.
“The concern is that the perception would be that it’s not safe. I don’t know that it has thus far been a huge issue. But with the coverage, it has the potential to be that. To the extent there is a problem in terms of tourism, it is a perception problem. Clearly, there is a reality behind it and the mayor and the superintendent are working on that.”
Earlier this year, Emanuel merged Chicago’s two major tourism organizations to free up $1.3 million to market Chicago nationwide and overseas and set a goal of attracting 10 million more visitors by 2020.
At the mayor’s behest, the Chicago Convention & Tourism Bureau joined forces with the Chicago Office of Tourism and Culture. The new organization is now run by Welsh.
Choose Chicago subsequently opened international sales offices in Brazil, Germany and Japan bringing the city’s international sales efforts to eight offices on four continents.
Even with the expansion, Chicago spends the “least of any major U.S. city” on international marketing, officials said. Las Vegas has 22 overseas offices. New York (18), Los Angeles (15) and San Francisco (13) also run circles around Chicago.
As a result, Chicago claimed just 4.3 percent of the 27 million overseas travelers to the U.S. in 2010, compared to 32 percent for New York.
“We’re the third largest city in America and we’re 10th on foreign tourists. … And I do not believe that the best kept secret of America should be the city of Chicago,” the mayor told the Chicago Convention and Tourism Bureau at the time.
“We’ve consolidated three offices here in the city that deal with the tourism and convention business and we’re gonna open three offices around the world where the tourists exists. It doesn’t take a lot of geniuses to do that, but it took years of study to come up with that conclusion.”
Chicago currently attracts 40 million annual visitors, but only 1.2 million of them come from overseas.
Emanuel’s goal is to raise it to 50 million visitors by 2020 and to move into the top five cities for international tourists. Chicago currently ranks tenth among U.S. cities.
A 25 percent increase could raise visitor spending by $3.6 billion-a-year and boost annual tax revenue by up to $300 million.
“We have lagged in the tourism business. And it shows..”
Thanks to Fran Spielman
Thursday, July 12, 2012
Tribal Warfare on the Streets of Chicago
Chicago is in the grips of a deadly gang war. At least 275 people have been killed in the city so far this year and many more have been shot, many of them innocent bystanders to the gang violence. Among the latest victims were 12- and 13-year-old girls shot Tuesday night. They survived.
Sgt. Matt Little leads one of the teams in Chicago's Gang Enforcement Unit. There are about 200 such officers in the city-- versus 100,000 gang members. "Almost all the violence we're seeing now is from the gangs," Little said. "When there's a shooting we'll respond to the shooting. We'll figure out where we believe the most likely area for retaliation is and we'll work that area trying to both prevent retaliation and possibly build a case on offenders."
CBS News rode along with Little's team as dusk fell on poor neighborhoods of vacant lots and high anxiety.
"The gangs have lost their hierarchy, so to speak, and without a chain of command, there's really nobody keeping things in check," Little said. The leaders are mostly in prison -- or dead. Those left are young, reckless, and often terrible shots. "Instead of a bullet with somebody's name on it, we have a bullet that reads 'To whom it may concern,'" Little said. The result is a spate of shootings that have killed or wounded young children, even toddlers.
The victims include 7-year old Heaven Sutton, shot to death selling candy outside her house. Ten-year old Kitanna Peterson, was playing by a fire hydrant when she was shot last week. A stray bullet went through her wrist and abdomen.
"We care about the grandmother that lives in the Graystone who's raising her grandkids. We care about the guy who's a hard-working stiff who gets up in the morning and works two jobs," Little said.
The police are also establishing a data base gleaned from interviews with the gang members themselves -- on their whereabouts, grudges or habits -- to anticipate trouble before it erupts. Some businesses that serve as hideouts will also be shuttered.
Little responds to a man with a gun call. In just two hours, we witnessed repeated stops, searches and arrests. "They are smart enough and savvy enough to have people run interference, to have plausible stories, to have a whole system of things they can bring up to try to interfere with us doing our jobs," Little said. "They know we're out there and that has an effect on what they're willing to do."
He sees the same people "all the time."
Sgt. Little is a decorated veteran of Iraq and Afghanistan. He said that parts of Chicago are comparable to what he saw in combat. It's "tribal warfare," he said, "and as it continues to build unless we manage to interdict it, and manage to stop it long enough for the blood to stop boiling, the heat to die down."
Thanks to Dean Reynolds.
Tuesday, July 10, 2012
Inland Bank and Trust Branch Robbed
The Inland Bank and Trust branch located at 539 South Spring Road, Elmhurst, was robbed at approximately 10:22 a.m. yesterday. The robber, who is believed to be the person who robbed the same bank on June 11, 2012, as well as a Chase Bank branch in Bensenville on April 2, 2012, approached a teller and presented a note demanding cash. The note implied that the robber had a gun, but no weapon was displayed during the robbery. After receiving an undisclosed amount of cash, the robber left the bank on foot. No injuries were reported in connection with the robbery.
Witnesses described the robber as a Hispanic or white male, 5’9” to 6’0” tall, with a medium build. He was wearing a short-sleeved shirt that was black on the front and had a gray pattern on the back; khaki shorts; sneakers; and sunglasses.
Photos and additional information, if available, will be added to the posting related to the April 2 robbery at www.bandittrackerchicago.com.
Anyone with information regarding this bank robbery is asked to call the Chicago Office of the FBI at 312-421-6700 or the Elmhurst Police Department.
Witnesses described the robber as a Hispanic or white male, 5’9” to 6’0” tall, with a medium build. He was wearing a short-sleeved shirt that was black on the front and had a gray pattern on the back; khaki shorts; sneakers; and sunglasses.
Photos and additional information, if available, will be added to the posting related to the April 2 robbery at www.bandittrackerchicago.com.
Anyone with information regarding this bank robbery is asked to call the Chicago Office of the FBI at 312-421-6700 or the Elmhurst Police Department.
Monday, July 09, 2012
The Patriarch: The Remarkable Life and Turbulent Times of Joseph P. Kennedy
Celebrated historian David Nasaw brings to life the story of Joseph Patrick Kennedy, in this, the first and only biography based on unrestricted and exclusive access to the Joseph P. Kennedy papers.
Joseph Patrick Kennedy—whose life spanned the First World War, the Roaring Twenties, the Great Depression, the Second World War, and the Cold War—was the patriarch of America’s greatest political dynasty. The father of President John F. Kennedy and senators Robert and Edward Kennedy, “Joe” Kennedy was an indomitable and elusive figure whose dreams of advancement for his nine children were matched only by his extraordinary personal ambition and shrewd financial skills. Trained as a banker, Kennedy was also a Hollywood mogul, a stock exchange savant, a shipyard manager, the founding chairman of the Securities and Exchange Commission, and ambassador to London during the Battle of Britain. Though his incredible life encompasses the very heart of the American century, Joseph Kennedy has remained shrouded in rumor and prejudice for decades.
Drawing on never-before-published material from archives on three continents, David Nasaw—the renowned biographer of Andrew Carnegie and William Randolph Hearst—unearths a man far more complicated than the popular portrait. Was Kennedy an appeaser and isolationist, an anti-Semite and Nazi sympathizer, a stock swindler, a bootlegger, and a colleague of mobsters? Did he push his second son into politics and then buy his elections for him? Why did he have his daughter Rosemary lobotomized? Why did he oppose the Truman Doctrine, the Marshall Plan, the Korean War, and American assistance to the French in Vietnam? What was his relationship to J. Edgar Hoover and his FBI? How did he influence his son’s politics and policies in the White House? In this groundbreaking biography Nasaw ignores the tired old answers surrounding Kennedy, starting from scratch to discover the truth behind this misunderstood man.
Though far from a saint, Joseph Kennedy in many ways exemplifies the best in American political, economic, and social life. His rags-to-riches story is one of exclusion and quiet discrimination overcome by entrepreneurship, ingenuity, and unshakable endurance. Kennedy’s story deserves to be told in full, with no holds barred, and Nasaw’s magnificent The Patriarch is the first book to do so.
Joseph Patrick Kennedy—whose life spanned the First World War, the Roaring Twenties, the Great Depression, the Second World War, and the Cold War—was the patriarch of America’s greatest political dynasty. The father of President John F. Kennedy and senators Robert and Edward Kennedy, “Joe” Kennedy was an indomitable and elusive figure whose dreams of advancement for his nine children were matched only by his extraordinary personal ambition and shrewd financial skills. Trained as a banker, Kennedy was also a Hollywood mogul, a stock exchange savant, a shipyard manager, the founding chairman of the Securities and Exchange Commission, and ambassador to London during the Battle of Britain. Though his incredible life encompasses the very heart of the American century, Joseph Kennedy has remained shrouded in rumor and prejudice for decades.
Drawing on never-before-published material from archives on three continents, David Nasaw—the renowned biographer of Andrew Carnegie and William Randolph Hearst—unearths a man far more complicated than the popular portrait. Was Kennedy an appeaser and isolationist, an anti-Semite and Nazi sympathizer, a stock swindler, a bootlegger, and a colleague of mobsters? Did he push his second son into politics and then buy his elections for him? Why did he have his daughter Rosemary lobotomized? Why did he oppose the Truman Doctrine, the Marshall Plan, the Korean War, and American assistance to the French in Vietnam? What was his relationship to J. Edgar Hoover and his FBI? How did he influence his son’s politics and policies in the White House? In this groundbreaking biography Nasaw ignores the tired old answers surrounding Kennedy, starting from scratch to discover the truth behind this misunderstood man.
Though far from a saint, Joseph Kennedy in many ways exemplifies the best in American political, economic, and social life. His rags-to-riches story is one of exclusion and quiet discrimination overcome by entrepreneurship, ingenuity, and unshakable endurance. Kennedy’s story deserves to be told in full, with no holds barred, and Nasaw’s magnificent The Patriarch is the first book to do so.
Monday, July 02, 2012
Killing Kennedy: The End of Camelot
A riveting historical narrative of the shocking events surrounding the assassination of John F. Kennedy, and the follow-up to mega-bestselling author Bill O'Reilly's Killing Lincoln: The Shocking Assassination that Changed America Forever.
More than a million readers have thrilled to Bill O'Reilly's Killing Lincoln, the page-turning work of nonfiction about the shocking assassination that changed the course of American history. Now the anchor of The O'Reilly Factor recounts in gripping detail the brutal murder of John Fitzgerald Kennedy—and how a sequence of gunshots on a Dallas afternoon not only killed a beloved president but also sent the nation into the cataclysmic division of the Vietnam War and its culture-changing aftermath.
In January 1961, as the Cold War escalates, John F. Kennedy struggles to contain the growth of Communism while he learns the hardships, solitude, and temptations of what it means to be president of the United States. Along the way he acquires a number of formidable enemies, among them Soviet leader Nikita Khrushchev, Cuban dictator Fidel Castro, and Alan Dulles, director of the Central Intelligence Agency. In addition, powerful elements of organized crime have begun to talk about targeting the president and his brother, Attorney General Robert Kennedy.
In the midst of a 1963 campaign trip to Texas, Kennedy is gunned down by an erratic young drifter named Lee Harvey Oswald. The former Marine Corps sharpshooter escapes the scene, only to be caught and shot dead while in police custody.
The events leading up to the most notorious crime of the twentieth century are almost as shocking as the assassination itself. Killing Kennedy chronicles both the heroism and deceit of Camelot, bringing history to life in ways that will profoundly move the reader. This may well be the most talked about book of the year.
More than a million readers have thrilled to Bill O'Reilly's Killing Lincoln, the page-turning work of nonfiction about the shocking assassination that changed the course of American history. Now the anchor of The O'Reilly Factor recounts in gripping detail the brutal murder of John Fitzgerald Kennedy—and how a sequence of gunshots on a Dallas afternoon not only killed a beloved president but also sent the nation into the cataclysmic division of the Vietnam War and its culture-changing aftermath.
In January 1961, as the Cold War escalates, John F. Kennedy struggles to contain the growth of Communism while he learns the hardships, solitude, and temptations of what it means to be president of the United States. Along the way he acquires a number of formidable enemies, among them Soviet leader Nikita Khrushchev, Cuban dictator Fidel Castro, and Alan Dulles, director of the Central Intelligence Agency. In addition, powerful elements of organized crime have begun to talk about targeting the president and his brother, Attorney General Robert Kennedy.
In the midst of a 1963 campaign trip to Texas, Kennedy is gunned down by an erratic young drifter named Lee Harvey Oswald. The former Marine Corps sharpshooter escapes the scene, only to be caught and shot dead while in police custody.
The events leading up to the most notorious crime of the twentieth century are almost as shocking as the assassination itself. Killing Kennedy chronicles both the heroism and deceit of Camelot, bringing history to life in ways that will profoundly move the reader. This may well be the most talked about book of the year.
Sunday, June 24, 2012
Renee Fecarotta Russo and Nora Schweihs of Mob Wives Chicago Sued by Manager
Call it a “Mob” contract gone bad.
Two cast members of “Mob Wives Chicago” are being sued by film producer and talent manager Nick Celozzi Jr., who says both women owe him a cut of their pay for appearing on the new VH1 reality TV show.
The lawsuits, filed in Cook County Circuit Court, accuse Renee Fecarotta Russo and Nora Schweihs of breaking their contracts with Celozzi.
He says his company, Family Ties Management, arranged for both women to attend a casting call with the show’s production company, JustJenn Productions. The women hired Celozzi to be their manager for two years, according to copies of contracts that appear to have been signed by Russo and Schweihs in December.
As their manager, Celozzi was supposed to collect 15 percent of what the women get paid to be on the TV show — a figure listed in the lawsuits as $6,000 for each of the season’s 10 episodes. That makes Celozzi’s cut $900 an episode for Russo and the same for Schweihs.
Looks like it was an offer they could refuse.
To date, Russo has forked over $500 while Schweihs has paid $900, according to the lawsuits, which say the women each owe a total of $9,000 for season one — plus interest and legal costs.
“I do believe a lot of people who are new to this business … when they realize that there’s a lot of costs to being involved in this type of industry, they change their minds about what decisions they wanted to have made several months prior,” said Celozzi’s attorney, James Pesoli.
The management contracts call for disputes to be settled before the American Arbitration Association in New York. But Pesoli said that “due to the size of the claim being relatively minimal, under $10,000, it’s in both parties’ best interest to attempt to settle it locally.”
Pesoli, who appeared in court with Russo’s attorney earlier this week, said discussions are under way to potentially settle out of court. He said things haven’t progressed as much in the case of Schweihs, whom they’ve had “a great amount of difficulty” in serving with the lawsuit.
Attempts to reach Schweihs, Russo and Russo’s attorney Wednesday were unsuccessful.
“Mob Wives Chicago,” a spinoff of the popular “Mob Wives” series, debuted June 10 and airs Sundays on the cable network. The show follows the lives of five women related to Chicago mobsters.
Russo is the niece of late loan shark and Outfit hit man “Big John” Fecarotta.
Schweihs is the daughter of Frank “The German” Schweihs, an alleged mob enforcer who died shortly before going to trial in 2008 in the city’s historic Family Secrets case. Nora Schweihs made headlines last week when she had father’s remains exhumed from St. Mary Cemetery in Evergreen Park — part of her purported quest to find out what really happened to her dad.
Celozzi, a former actor, used to appear in his father Nick’s commercials for Celozzi-Ettleson Chevrolet in Elmhurst. Dividing his time between California and the western suburbs, Celozzi has several mob-related entertainment projects in the works, including a documentary on his grand-uncle, notorious Outfit boss Sam “Momo” Giancana.
Thanks to Lori Rackl Irackl
Two cast members of “Mob Wives Chicago” are being sued by film producer and talent manager Nick Celozzi Jr., who says both women owe him a cut of their pay for appearing on the new VH1 reality TV show.
The lawsuits, filed in Cook County Circuit Court, accuse Renee Fecarotta Russo and Nora Schweihs of breaking their contracts with Celozzi.
He says his company, Family Ties Management, arranged for both women to attend a casting call with the show’s production company, JustJenn Productions. The women hired Celozzi to be their manager for two years, according to copies of contracts that appear to have been signed by Russo and Schweihs in December.
As their manager, Celozzi was supposed to collect 15 percent of what the women get paid to be on the TV show — a figure listed in the lawsuits as $6,000 for each of the season’s 10 episodes. That makes Celozzi’s cut $900 an episode for Russo and the same for Schweihs.
Looks like it was an offer they could refuse.
To date, Russo has forked over $500 while Schweihs has paid $900, according to the lawsuits, which say the women each owe a total of $9,000 for season one — plus interest and legal costs.
“I do believe a lot of people who are new to this business … when they realize that there’s a lot of costs to being involved in this type of industry, they change their minds about what decisions they wanted to have made several months prior,” said Celozzi’s attorney, James Pesoli.
The management contracts call for disputes to be settled before the American Arbitration Association in New York. But Pesoli said that “due to the size of the claim being relatively minimal, under $10,000, it’s in both parties’ best interest to attempt to settle it locally.”
Pesoli, who appeared in court with Russo’s attorney earlier this week, said discussions are under way to potentially settle out of court. He said things haven’t progressed as much in the case of Schweihs, whom they’ve had “a great amount of difficulty” in serving with the lawsuit.
Attempts to reach Schweihs, Russo and Russo’s attorney Wednesday were unsuccessful.
“Mob Wives Chicago,” a spinoff of the popular “Mob Wives” series, debuted June 10 and airs Sundays on the cable network. The show follows the lives of five women related to Chicago mobsters.
Russo is the niece of late loan shark and Outfit hit man “Big John” Fecarotta.
Schweihs is the daughter of Frank “The German” Schweihs, an alleged mob enforcer who died shortly before going to trial in 2008 in the city’s historic Family Secrets case. Nora Schweihs made headlines last week when she had father’s remains exhumed from St. Mary Cemetery in Evergreen Park — part of her purported quest to find out what really happened to her dad.
Celozzi, a former actor, used to appear in his father Nick’s commercials for Celozzi-Ettleson Chevrolet in Elmhurst. Dividing his time between California and the western suburbs, Celozzi has several mob-related entertainment projects in the works, including a documentary on his grand-uncle, notorious Outfit boss Sam “Momo” Giancana.
Thanks to Lori Rackl Irackl
Saturday, June 23, 2012
Obama's NLRB Pick, Richard Griffin, Tied to Mob?
The rap sheet for members of the International Union of Operating Engineers reads like something out of "Goodfellas."
Embezzlement. Wire fraud. Bribery. That's just scratching the surface of crimes committed by the IUOE ranks. And it is from this union that President Obama earlier this year picked one of his latest appointees to the National Labor Relations Board, the federal agency tasked with resolving labor disputes between unions and management.
That recess appointee, Richard Griffin, was former general counsel for the 400,000-member union of heavy equipment operators -- a union tainted over the years by mob connections and a history of corruption.
Public documents obtained by Fox News show that more than 60 IUOE members have been arrested, indicted or jailed in the last decade on charges that include labor racketeering, extortion, criminal enterprise, bodily harm and workplace sabotage.
In some of the more egregious examples, federal prosecutors alleged in February 2003 that the Genovese and Colombo crime families wrested control of two IUOE locals, and stole $3.6 million from major New York area construction projects -- including the Museum of Modern Art and minor league baseball stadiums for the Yankees and Mets in Staten and Coney Islands.
Congress and the American public may never know whether Griffin's fiduciary responsibilities as general counsel were compromised by the avalanche of arrests, indictments and prosecutions of IUOE members. Griffin did not respond to Fox News' request for an interview. Before joining the NLRB, he served in various positions at the IUOE dating back to 1983. But records indicate he did not take an active role in representing any of the accused union members in criminal matters while he was general counsel for the union.
In at least one case during Griffin's tenure, the IUOE national headquarters placed a local that had run afoul of the law into trusteeship. But it remains unclear what other firewalls, if any, Griffin erected to separate the national union from its corrupt locals, or how he dealt with individual local union members who were in legal trouble.
On April 9, 2008, a dozen high-ranking members of an IUOE local in Buffalo, N.Y., were arrested for damaging more than 40 pieces of heavy machinery at construction sites where non-union workers were hired. They poured sand into oil systems, and cut tires and fuel lines. They also ran the license plate numbers of victims through a state database to get personal information including the names and addresses of victims' wives.
Among the individual union members and associates prosecuted in various investigations were:
Former U.S. Attorney and present New Jersey Gov. Chris Christie prosecuted some of the IUOE criminal cases. In one of Christie's prosecutions, Kenneth Campbell, the former business manager of local 825 of the IUOE, pleaded guilty to embezzling $200,000 from his union and taking bribes from contractors to buy high-end electronics and a Lincoln Town Car for his father, a retired IUOE member.
Then-U.S. Attorney Christie, said, "Campbell and his cronies were simply corrupt. They treated local 825 like a piggy bank at will to treat themselves to luxuries at the expense of dues-paying members they ripped off."
Because he was recess appointed, Richard Griffin, Jr., underwent no congressional scrutiny before he was sworn in on Jan. 9 of this year.
At the time of his recess appointment, Sen. Mike Enzi, R-Wyo., ranking member of the Senate Health, Education, Labor and Pensions Committee, told the Wall Street Journal he was, "extremely disappointed" in Obama's decision to "avoid the constitutionally mandated Senate confirmation process." He said that two of three nominees for the NLRB, including Griffin, were submitted to the Senate on Dec. 15, just before the Senate was to adjourn, allowing only a day to review the nominees.
Griffin has been an advocate for enhanced NLRB power for decades.
In 1988 testimony before the U.S. House Subcommittee on Employer/Employee relations, Griffin, who was then serving on the Board of Trustees of IUOE's Central Pension Fund, argued for more power for the NLRB to fine companies without a court order to enforce its rulings. He also argued against legislation that would have forced the NLRB and the Department of Labor to pay the legal costs for small businesses who won in court against unions.
Griffin's tenure on the NLRB will be longer than most recess appointees. The president delayed his appointment by one day until the start of a new congressional session -- effectively doubling to two years his stay. Recess appointments last until the end of the Senate's next session -- meaning Griffin will sit on the NLRB until December 2013.
Thanks to Doug McKelway.
Embezzlement. Wire fraud. Bribery. That's just scratching the surface of crimes committed by the IUOE ranks. And it is from this union that President Obama earlier this year picked one of his latest appointees to the National Labor Relations Board, the federal agency tasked with resolving labor disputes between unions and management.
That recess appointee, Richard Griffin, was former general counsel for the 400,000-member union of heavy equipment operators -- a union tainted over the years by mob connections and a history of corruption.
Public documents obtained by Fox News show that more than 60 IUOE members have been arrested, indicted or jailed in the last decade on charges that include labor racketeering, extortion, criminal enterprise, bodily harm and workplace sabotage.
In some of the more egregious examples, federal prosecutors alleged in February 2003 that the Genovese and Colombo crime families wrested control of two IUOE locals, and stole $3.6 million from major New York area construction projects -- including the Museum of Modern Art and minor league baseball stadiums for the Yankees and Mets in Staten and Coney Islands.
Congress and the American public may never know whether Griffin's fiduciary responsibilities as general counsel were compromised by the avalanche of arrests, indictments and prosecutions of IUOE members. Griffin did not respond to Fox News' request for an interview. Before joining the NLRB, he served in various positions at the IUOE dating back to 1983. But records indicate he did not take an active role in representing any of the accused union members in criminal matters while he was general counsel for the union.
In at least one case during Griffin's tenure, the IUOE national headquarters placed a local that had run afoul of the law into trusteeship. But it remains unclear what other firewalls, if any, Griffin erected to separate the national union from its corrupt locals, or how he dealt with individual local union members who were in legal trouble.
On April 9, 2008, a dozen high-ranking members of an IUOE local in Buffalo, N.Y., were arrested for damaging more than 40 pieces of heavy machinery at construction sites where non-union workers were hired. They poured sand into oil systems, and cut tires and fuel lines. They also ran the license plate numbers of victims through a state database to get personal information including the names and addresses of victims' wives.
Among the individual union members and associates prosecuted in various investigations were:
- Andrew Merola, a high-ranking member of the Gambino crime family who, in 2010, admitted to committing nine different acts of racketeering, including wire fraud involving a no-show/low-show job he got as an operating engineer for local 825 of the IUOE.
- James Roemer, a former treasurer of Operating Engineers local 14, who was sentenced in September 2003 to 41 months imprisonment and ordered to pay $2.7 million in restitution for conspiracy to fraudulently receive unlawful labor payments.
- Joel Waverly Cacace, Sr. The imprisoned acting boss of the Colombo crime family conspired with IUOE members to get a paid no-show construction job for his son, Jo-Jo Cacace, Jr. The senior Cacace was sent to prison in February 2003 for 20 years. The three-year investigation that sent him to jail also produced more than 24 other convictions.
Former U.S. Attorney and present New Jersey Gov. Chris Christie prosecuted some of the IUOE criminal cases. In one of Christie's prosecutions, Kenneth Campbell, the former business manager of local 825 of the IUOE, pleaded guilty to embezzling $200,000 from his union and taking bribes from contractors to buy high-end electronics and a Lincoln Town Car for his father, a retired IUOE member.
Then-U.S. Attorney Christie, said, "Campbell and his cronies were simply corrupt. They treated local 825 like a piggy bank at will to treat themselves to luxuries at the expense of dues-paying members they ripped off."
Because he was recess appointed, Richard Griffin, Jr., underwent no congressional scrutiny before he was sworn in on Jan. 9 of this year.
At the time of his recess appointment, Sen. Mike Enzi, R-Wyo., ranking member of the Senate Health, Education, Labor and Pensions Committee, told the Wall Street Journal he was, "extremely disappointed" in Obama's decision to "avoid the constitutionally mandated Senate confirmation process." He said that two of three nominees for the NLRB, including Griffin, were submitted to the Senate on Dec. 15, just before the Senate was to adjourn, allowing only a day to review the nominees.
Griffin has been an advocate for enhanced NLRB power for decades.
In 1988 testimony before the U.S. House Subcommittee on Employer/Employee relations, Griffin, who was then serving on the Board of Trustees of IUOE's Central Pension Fund, argued for more power for the NLRB to fine companies without a court order to enforce its rulings. He also argued against legislation that would have forced the NLRB and the Department of Labor to pay the legal costs for small businesses who won in court against unions.
Griffin's tenure on the NLRB will be longer than most recess appointees. The president delayed his appointment by one day until the start of a new congressional session -- effectively doubling to two years his stay. Recess appointments last until the end of the Senate's next session -- meaning Griffin will sit on the NLRB until December 2013.
Thanks to Doug McKelway.
Friday, June 22, 2012
FBI 2011 Bank Crime Statistics
The FBI released bank crime statistics for calendar year 2011. Between January 1, 2011 and December 31, 2011, there were 5,014 robberies, 60 burglaries, 12 larcenies, and seven extortions of financial institutions1 reported to law enforcement. The total 5,093 reported violations represent a decrease from 2010, during which 5,641 violations of the Federal Bank Robbery and Incidental Crimes Statute were reported.
Highlights of the report include:
These statistics were recorded as of April 24, 2012. Note that not all bank crimes are reported to the FBI, and therefore the report is not a complete statistical compilation of all bank crimes that occurred in the United States.
Highlights of the report include:
- Of the 5,086 total reported bank robberies, burglaries, and larcenies, loot was taken in 4,534 incidents (89 percent). Loot was taken during two of the seven reported bank extortions.
- The total amount taken was valued at more than $38 million. More than $8 million was recovered and returned to financial institutions.
- During the reported bank robberies, burglaries, and larcenies, the following modus operandi were the most common: demand note (2,958 incidents); oral demand (2,678 incidents); weapon threatened (2,331 incidents); and firearm used (1,242 incidents). Of the seven reported extortions, perpetrators used or threatened the use of explosive devices during one incident and made threats by telephone during four incidents.2
- Acts of violence were committed during 201 of the reported robberies, burglaries, and larcenies. These acts included 70 instances involving the discharge of firearms, 116 instances involving assaults, and one instance involving an explosive device.3 No acts of violence occurred during the seven reported bank extortions.
- Acts of violence during the reported robberis, burglaries, and larcenies resulted in 88 injuries, 13 deaths, and 30 persons being taken hostage. No injuries, deaths, or hostage takings occurred during the reported bank extortions.
- Most violations occurred on Friday. Regardless of the day of the week, violations between the hours of 9:00 a.m. and 11:00 a.m. were the most common.
- Most violations occurred in the Southern region of the U.S., with 1,576 reported incidents.
These statistics were recorded as of April 24, 2012. Note that not all bank crimes are reported to the FBI, and therefore the report is not a complete statistical compilation of all bank crimes that occurred in the United States.
- Financial institutions include commercial banks, mutual savings banks, savings and loan associations, and credit unions.
- More than one modus operandi may have been used during an incident
- One or more acts of violence may occur during an incident.
Wednesday, June 20, 2012
Raghuveer Nayak Charged with Fraud and Tax Offenses for Allegedly Paying Physicians Hundreds of Thousands of Dollars in Bribes for Patient Referrals
The owner of multiple area outpatient surgery centers was arrested today on federal fraud and tax charges alleging that he paid bribes and kickbacks to physicians for patient referrals and filed false federal income tax returns that understated his income. The defendant, Raghuveer Nayak, was charged in a 19-count indictment that was returned by a federal grand jury last week and unsealed today following his arrest, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Robert D. Grant, Special Agent in Charge of the Chicago Office of Federal Bureau of Investigation; and Thomas Jankowski, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
Nayak, 57, of Oak Brook, was scheduled to appear at 11:00 a.m. today before Magistrate Judge Maria Valdez in U.S. District Court.
He was charged with 10 counts of mail fraud, five counts of interstate travel in aid of racketeering, and four counts of filing false income tax returns for the years 2005-2008. The indictment seeks forfeiture of at least $1.8 million in alleged fraud proceeds, or substitute assets, including Nayak’s Oak Brook residence, the Rogers Park One Day Surgery Center Inc., located at 7616 North Paulina St., and the Lakeshore Surgery Center LLC, located at 7200 North Western Ave.
In addition to those two facilities, Nayak owned and/or controlled the following health care-related businesses in Illinois and Indiana: Lakeside Surgery Center LLC, Merillville Plaza Surgery Center LLC, Lincoln Park Open MRI, Delaware Place MRI LLC, Paulina Anesthesia Inc., Illiana Anesthesia, Western Touhy Anesthesia Inc., and Division Medical Diagnostics Inc., according to the indictment.
Nayak’s facilities did not accept patients covered public health insurance programs, such as Medicare and Medicaid, and instead accepted patients insured by private health insurers, such as BlueCross BlueShield, or patients who agreed to pay the entire fees themselves. Private insurers treated Nayak’s facilities as “out-of-network” when paying bills submitted for patient services.
Between 2000 and December 2010, Nayak allegedly defrauded patients by paying and arranging to pay bribes and kickbacks in the form of cash and other hidden payments to physicians who would refer their patients to Nayak’s facilities for medical treatment. Nayak paid hundreds of thousands of dollars to different physicians in exchange for patient referrals, the charges allege, adding that the physicians deceived their patients by not disclosing that they were being paid for making referrals to Nayak’s facilities.
At times, the indictment alleges that Nayak paid bribes and kickbacks to physicians to begin referring patients, while at other times he did so to ensure that they continued to refer patients to his facilities. He allegedly offered to pay physicians a set amount of money for each patient referral. Nayak allegedly concealed and attempted to conceal the scheme by making payments in cash, disguising the payments as advertising, or by disguising the true purpose of the payments through fraudulent agreements and contracts, including contracts purporting to pay physicians for performing services that Nayak knew they had not provided.
Between 2002 and December 2008, Nayak allegedly obtained cash to pay bribes and kickbacks by giving Individual A more than $2 million in checks drawn on his facilities’ accounts and, in exchange, at Nayak’s direction, Individual A gave Nayak cash equaling approximately 70 percent of the value of the checks. Nayak allegedly indicated to his tax preparer that the checks to Individual A were for advertising and should be treated as a business expense on tax returns for Nayak and his facilities. After he was interviewed by law enforcement agents in December 2008, Nayak allegedly took additional steps to hide the scheme by executing fraudulent contracts and by warning physicians not to speak with agents about the payments.
The tax counts allege that Nayak caused the preparation of false individual federal income tax returns that understated his true income because he claimed that the checks to Individual A should be treated as advertising expenses when he knew they were not. As a result, Nayak allegedly understated his gross income when he reported the following amounts: $4,643,916 for 2005; $6,471,865 for 2006; $5,791,109 for 2007; and $9,362,647 for 2008.
Each count of mail fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain, whichever is greater, as well as mandatory restitution. Interstate travel in aid of racketeering carries a maximum prison term of five years and a $250,000 fine on each count, and each count of filing a false income tax return carries a three-year maximum prison term and a $250,000 fine. In addition, defendants convicted of tax offenses must pay the costs of prosecution and remain liable for any and all back taxes, as well as a potential civil fraud penalty of 75 percent of the underpayment plus interest. 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 Carrie Hamilton and Andrianna Kastanek.
The public is reminded that an indictment 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.
Nayak, 57, of Oak Brook, was scheduled to appear at 11:00 a.m. today before Magistrate Judge Maria Valdez in U.S. District Court.
He was charged with 10 counts of mail fraud, five counts of interstate travel in aid of racketeering, and four counts of filing false income tax returns for the years 2005-2008. The indictment seeks forfeiture of at least $1.8 million in alleged fraud proceeds, or substitute assets, including Nayak’s Oak Brook residence, the Rogers Park One Day Surgery Center Inc., located at 7616 North Paulina St., and the Lakeshore Surgery Center LLC, located at 7200 North Western Ave.
In addition to those two facilities, Nayak owned and/or controlled the following health care-related businesses in Illinois and Indiana: Lakeside Surgery Center LLC, Merillville Plaza Surgery Center LLC, Lincoln Park Open MRI, Delaware Place MRI LLC, Paulina Anesthesia Inc., Illiana Anesthesia, Western Touhy Anesthesia Inc., and Division Medical Diagnostics Inc., according to the indictment.
Nayak’s facilities did not accept patients covered public health insurance programs, such as Medicare and Medicaid, and instead accepted patients insured by private health insurers, such as BlueCross BlueShield, or patients who agreed to pay the entire fees themselves. Private insurers treated Nayak’s facilities as “out-of-network” when paying bills submitted for patient services.
Between 2000 and December 2010, Nayak allegedly defrauded patients by paying and arranging to pay bribes and kickbacks in the form of cash and other hidden payments to physicians who would refer their patients to Nayak’s facilities for medical treatment. Nayak paid hundreds of thousands of dollars to different physicians in exchange for patient referrals, the charges allege, adding that the physicians deceived their patients by not disclosing that they were being paid for making referrals to Nayak’s facilities.
At times, the indictment alleges that Nayak paid bribes and kickbacks to physicians to begin referring patients, while at other times he did so to ensure that they continued to refer patients to his facilities. He allegedly offered to pay physicians a set amount of money for each patient referral. Nayak allegedly concealed and attempted to conceal the scheme by making payments in cash, disguising the payments as advertising, or by disguising the true purpose of the payments through fraudulent agreements and contracts, including contracts purporting to pay physicians for performing services that Nayak knew they had not provided.
Between 2002 and December 2008, Nayak allegedly obtained cash to pay bribes and kickbacks by giving Individual A more than $2 million in checks drawn on his facilities’ accounts and, in exchange, at Nayak’s direction, Individual A gave Nayak cash equaling approximately 70 percent of the value of the checks. Nayak allegedly indicated to his tax preparer that the checks to Individual A were for advertising and should be treated as a business expense on tax returns for Nayak and his facilities. After he was interviewed by law enforcement agents in December 2008, Nayak allegedly took additional steps to hide the scheme by executing fraudulent contracts and by warning physicians not to speak with agents about the payments.
The tax counts allege that Nayak caused the preparation of false individual federal income tax returns that understated his true income because he claimed that the checks to Individual A should be treated as advertising expenses when he knew they were not. As a result, Nayak allegedly understated his gross income when he reported the following amounts: $4,643,916 for 2005; $6,471,865 for 2006; $5,791,109 for 2007; and $9,362,647 for 2008.
Each count of mail fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or an alternate fine totaling twice the loss or twice the gain, whichever is greater, as well as mandatory restitution. Interstate travel in aid of racketeering carries a maximum prison term of five years and a $250,000 fine on each count, and each count of filing a false income tax return carries a three-year maximum prison term and a $250,000 fine. In addition, defendants convicted of tax offenses must pay the costs of prosecution and remain liable for any and all back taxes, as well as a potential civil fraud penalty of 75 percent of the underpayment plus interest. 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 Carrie Hamilton and Andrianna Kastanek.
The public is reminded that an indictment 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.
Tuesday, June 19, 2012
Busted! Riveting Stories Of Tax Evasion And Fraud By An IRS Insider
Tax evasion and fraud do not discriminate and can be perpetrated by anyone – from middle-class Americans to high profile celebrities starting with Al Capone, Willie Nelson, and continuing more recently with Wesley Snipes.
Bruce Bronstein is making a name for himself as a master storyteller in his four novels that tell riveting accounts of tax evasion and fraud and what it takes to go after the perpetrators. His lengthy career with the IRS, handling some of the country’s most complex and controversial cases, provides the backdrop for Bronstein’s compelling stories. His novels, a perfect blend of humor, crime and the inner workings of the IRS and our legal system, make for a read not easy to put down.
Stan, a corrupt tax lawyer, subject to disciplinary action for failing to meet the standard of conduct expected of tax practitioners, is involved in the death of an IRS agent. The agent’s death, which has been staged to look like an accident, is at the center of Bronstein’s first book Nondisclosable. When IRS officials find circumstantial evidence in the dead agent’s audit files that incriminate the lawyer, it’s rendered useless because they can’t disclose the information. Although police lack the hard evidence needed to solve the mystery, the IRS is prepared to extract revenge against the lawyer – who soon finds himself embroiled in a variety of criminal conspiracies. Forced to face legendary agent Louie Lipschitz, the lawyer fears there is no escape in sight…
Full Disclosure, Bronstein’s second book, shows the corrupt lawyer going to prison at the same time the department is prosecuting another case that involves the largest individual tax cheat in history. Before the case is concluded, it leads to yet another tax case that implicates a man who was once the most powerful person in the U.S. The consequences of the investigation take a deadly turn and potential witnesses suffer a horrible fate. To ensure the prosecution is successful, law enforcement officials must take extreme measures and make tough decisions that have them deal-making with a notorious figure. Full Disclosure takes readers on a roller-coaster ride through our criminal justice system, showing how the unpredictability of one case can impact another seemingly unrelated case in an ironic twist of fate.
Imagine a bribery conspiracy, fraud, abuse of power and illicit sex – now imagine it’s taking place within the IRS! In Den of Thieves, the third novel by Bronstein, a shocking discovery is made that undermines the integrity of the IRS when its own employees, responsible for the administration of the nation’s tax laws, are found to be manipulating the system in a plot so ingenious only one intrepid IRS agent can solve the mystery. As Lipschitz, their fearless agent, finds himself matching wits with a brilliant sociopath currently behind bars, it’s not certain that even he can overcome all the challenges placed in his path.
Due for release this summer, Reversal of Justice finds Erica Whitman plotting revenge against the federal government due to her imprisonment for her role in a conspiracy to defraud the IRS. As she schemes to have her conviction overturned, Erica is also planning a diabolical strategy that she believes will guarantee her instant wealth while helping her extract revenge on federal prosecutors. While the Justice Department and IRS officials once again deal with an ingenious and calculating criminal mastermind, more colorful characters surface that challenge the authority of the IRS. Meanwhile, the police are forced to deal with murder contracts placed on the head of Louie Lipschitz, who has incurred the wrath of more than a few of these characters.
Bruce Bronstein is a former IRS Tax Law Specialist who also worked in the Appeals Division where he handled some of the largest and most complex cases in the country. His 30 years of experience specializing in civil fraud cases brings distinct authenticity to his novels and takes the subject of tax controversy to new levels. Drawing five star reviews on Amazon.com, his informative and witty novels explore how controversial tax issues are handled by the various functions within the IRS and our legal system.
Bruce Bronstein is making a name for himself as a master storyteller in his four novels that tell riveting accounts of tax evasion and fraud and what it takes to go after the perpetrators. His lengthy career with the IRS, handling some of the country’s most complex and controversial cases, provides the backdrop for Bronstein’s compelling stories. His novels, a perfect blend of humor, crime and the inner workings of the IRS and our legal system, make for a read not easy to put down.
Stan, a corrupt tax lawyer, subject to disciplinary action for failing to meet the standard of conduct expected of tax practitioners, is involved in the death of an IRS agent. The agent’s death, which has been staged to look like an accident, is at the center of Bronstein’s first book Nondisclosable. When IRS officials find circumstantial evidence in the dead agent’s audit files that incriminate the lawyer, it’s rendered useless because they can’t disclose the information. Although police lack the hard evidence needed to solve the mystery, the IRS is prepared to extract revenge against the lawyer – who soon finds himself embroiled in a variety of criminal conspiracies. Forced to face legendary agent Louie Lipschitz, the lawyer fears there is no escape in sight…
Full Disclosure, Bronstein’s second book, shows the corrupt lawyer going to prison at the same time the department is prosecuting another case that involves the largest individual tax cheat in history. Before the case is concluded, it leads to yet another tax case that implicates a man who was once the most powerful person in the U.S. The consequences of the investigation take a deadly turn and potential witnesses suffer a horrible fate. To ensure the prosecution is successful, law enforcement officials must take extreme measures and make tough decisions that have them deal-making with a notorious figure. Full Disclosure takes readers on a roller-coaster ride through our criminal justice system, showing how the unpredictability of one case can impact another seemingly unrelated case in an ironic twist of fate.
Imagine a bribery conspiracy, fraud, abuse of power and illicit sex – now imagine it’s taking place within the IRS! In Den of Thieves, the third novel by Bronstein, a shocking discovery is made that undermines the integrity of the IRS when its own employees, responsible for the administration of the nation’s tax laws, are found to be manipulating the system in a plot so ingenious only one intrepid IRS agent can solve the mystery. As Lipschitz, their fearless agent, finds himself matching wits with a brilliant sociopath currently behind bars, it’s not certain that even he can overcome all the challenges placed in his path.
Due for release this summer, Reversal of Justice finds Erica Whitman plotting revenge against the federal government due to her imprisonment for her role in a conspiracy to defraud the IRS. As she schemes to have her conviction overturned, Erica is also planning a diabolical strategy that she believes will guarantee her instant wealth while helping her extract revenge on federal prosecutors. While the Justice Department and IRS officials once again deal with an ingenious and calculating criminal mastermind, more colorful characters surface that challenge the authority of the IRS. Meanwhile, the police are forced to deal with murder contracts placed on the head of Louie Lipschitz, who has incurred the wrath of more than a few of these characters.
Bruce Bronstein is a former IRS Tax Law Specialist who also worked in the Appeals Division where he handled some of the largest and most complex cases in the country. His 30 years of experience specializing in civil fraud cases brings distinct authenticity to his novels and takes the subject of tax controversy to new levels. Drawing five star reviews on Amazon.com, his informative and witty novels explore how controversial tax issues are handled by the various functions within the IRS and our legal system.
Sunday, June 17, 2012
Chicago Mob Wives Episode 2 Sneak Peek
Get More: Mob Wives Chicago, Mob Wives Chicago
Mob Wives Chicago airs Sunday at 8 p.m. ET/PT.
Friday, June 15, 2012
Chicago Is My F—ing Town - Episode 1 of Mob Wives Chicago
If you ever thought that the mob was just Staten Island, think again. “The mob is Chicago. It’s in the pavement, it’s everywhere,” Renee Fecarotta Russo explains in the first moments of Mob Wives Chicago. This is where the mob began.Now that we know Chicago is where is began, let’s meet the ladies.
Renee is the niece of Big John Fecarotta, an alleged enforcer for the mob who was gunned down in 1986, shot in the back by his best friend.
Before he died, he treated Renee like a princess, and that’s just how Renee treats her own daughters, Giana who’s 20 years old (damn, Renee, you look good for the mom of a 20-year-old!) and Isabella, age 10. Giana’s father is in prison and has been for thirteen years, and unlike the women from Staten Island, making prison visits is not a priority. “I haven’t visited him this whole time, and I never want to see him again,” she says. Giana wants to know her dad though, and Renee can’t stand the idea that she wants to visit a man who was not only convicted of murder, but who was never there for her as a dad. “This guy is so horrible that I really don’t want him near my daughter.” Giana disagrees.
Nora Schweihs
Nora knows Chicago is a corrupt town and explains that the stuff we’ve seen on The Sopranos is kid stuff compared to what happens on a day-to-day in Chicago. Nora’s dad is Frank “The German” Schweihs, who is the most notorious hit man in Chicago. Just don’t insinuate that he killed Marilyn Monroe, because Nora will stab you. “Mind your own business and shut the f— up about my dad,” seems to be Nora’s motto. Nora was best friends with her dad. She still might be, his whereabouts are currently unknown. Though he was presumed to have passed away in prison, the day of the funeral, the funeral director called her family and told them that the FBI confiscated his body. She’s absolutely tortured by the fact that she was never able to say goodbye to the man she loved. After a decade in Florida, Nora moved back to Chicago and plans to find out just what happened to her dad. Reality shows don’t have nearly enough mystery, so here’s to hoping Nora’s story finds some resolution, because now I’m dying to know what happened to her dad, too.
Pia Rizza
Vince Rizza was a crooked Chicago cop turned government informant. His daughter, Pia, is not a fan of rats and considers him an embarrassment to her family. She’s had to live with the stigma of having a cooperator in the family, and admits that, when asked about her father, she tells people he’s dead. Pia’s a single mom who works at a strip club which she’s totally fine with, but Nora looks down on. “She’s so much better than working at the strip club,” Nora says. “It’s just a job,” Pia says. A job that brings in thousands of dollars a night, sometimes.
Nora feels comfortable enough talking about Pia’s job though because they go way back and their families have history and they’re like sisters. Which also gives Pia the freedom to tell us that “Nora gets a bad rap because a lot of people think she’s f—ing nuts.” I look forward to seeing that side of her. But for now, Nora just wants Pia to get her life together and find a more respectable profession. Pia takes offense to that notion.
Renee doesn’t know Pia that well, but she feels the same way about the stripping (“What she does is an embarrassment…Get off the pole.”) and to boot, she’s heard that Pia is a goumada, a mistress to several married men.
Renee admits to being judgmental, but what she really should have said was she is Judge Judy, Judge Wapner, and Judge Joe Brown all rolled into one. She can’t stand Pia’s profession, she knows Pia’s father is a rat and thinks that’s a disgrace. “Obviously this girl has no integrity,” Renee tells Nora. Do I sense our first beef of the season?
Norah just wants to have a nice girls’ night out with all the women so they can get to know each other, and suggests that maybe Pia will grown on Renee. “Like mold?” Renee asks. But before girls night happens, Pia’s cousin Anthony calls her to tell her he saw Nora out at a club, and Nora was talking smack about Pia. Sounds like Renee’s judgmental ways rubbed off, because Anthony says Nora was calling her a b—h and a whore. “Nobody talks s— about me,” Pia says. Oooh, it’s actually a race to see whose beef will blossom first this season!
Before that can happen, we meet Christina Scoleri. Born and bred in Little Italy, Christina grew up a fighter who’s used to watching her back. Christina’s father is a burglar for the mob. Though she’s loyal to her dad, she’s “definitely not the girl to take over the family business,” she says. After a ten-year marriage, she’s recently divorced but still living with her ex-husband. “I know it’s a little weird.” I mean, okay, it is a little weird, but whats weirder is that no one in Christina’s family knows they’re divorced, not even her nine-year-old daughter who lives with them. Well, we know where Christina’s Mob Wives salary is going to go, paying off the years of therapy her daughter’s going to need to figure out this situation. Christina knows she needs to get out though, that’s for sure.
Pia is Christina’s friend and has been for over ten years, and Christina doesn’t really know the other women. Pia tells Christina the things her cousin heard Nora saying, specifically that she’s a “c—t,” and Christina can’t believe it but advises Pia to address it “in a nice way first” before raising fists. Christina sounds wiser by the minute, also saying that the issue should be addressed before the girls’ night out so it’s not tense for everyone.
Rounding out the pack is Leah Desimone, another native of Little Italy, a self-professed chubby-chaser, and a woman whose father kept his mob indiscretions hidden from her view. Leah still lives at home with her father, so in case you thought Christina had the weirdest living situation of the bunch, she’s got some competition. “I don’t wanna leave my father!” Leah says.
She’s connected to the gang through Christina, as they both grew up on the same street, but she knows who the other girls are. Christina tells Leah about the Pia-Nora drama and Leah sums up the situation by saying “Nora and Pia are two balloon-heads. I’ve never seen a friendship like this before in my life.”
Leah is going to be absent from girls’ night because she’ll be out of town, and that means we won’t have access to her running commentary and Italian slang for a scene or two, which bums me out. What the crap is a bazzarelle? Because my Google translator isn’t finding it. Leah says it’s best that she’s not there though, because she will throw down if necessary, and anything can trigger her.
On to girls night… Nora is the only person who’s looking at this thing optimistically. She wants everyone to hang out, have a good time, meet one another. But no one else is psyched because of what they’ve heard, or think they’ve heard through the Chicago grapevine.
“Are the girls late or are we early?” Renee asks, and Nora mentions that Pia’s usually late. “That’s disrespectful,” Renee says, and already it feels like trouble’s brewing. Poor Pia has no idea how Renee feels because she tells us “I like Renee, I think she’s a fun girl.”
When Pia and Christina arrive, so far so good. Hugs all around! But then Pia starts talking about some unsavory behavior, like the time she was in Florida and drank a pitcher and a half of mojitos, and Renee looks at her like she wants to drown her in an above-ground pool full of mojitos. And if her dirty looks weren’t enough to make Pia feel unwelcome, Renee broaches the subject of Pia’s father being a rat, and Pia explains that her father was a rat but that she is nothing like him. Renee doesn’t push the envelope, but she also doesn’t warn to Pia, even after that reassurance.
We already have two potential beefs in the room, but now we get a third once Christina brings up the topic of Nora’s dad being a hit man. No one ever told Christina that this subject was off-limits, apparently. “What would make you bring such a sore subject into such a happy moment?” Nora asks. “My dad didn’t kill any-f—ing-body.”
“Nora’s in f—ing la la land about what her dad used to do,” Christina tells us. Again, loving Christina’s to-the-point honesty. I wonder if it will come back to bite her? (This is also the same women who admits “I could drink, like, a kegger of shots!” during the night. I also wonder if that will come back to bite her.)
Renee notices that Christina is like halfway through her kegger of shots and she’s like “Slow down, killer!” But the moment we assumed would happen finally happens, Pia tells the girls “I have to address something.”
“I have to tell Nora about what I heard.” Pia tells Nora what her cousin told her, and Nora’s response is very lawyer-y. “Tell him to get it on tape, and then I’ll believe what I said,” she says, basically talking in circles because I don’t really know what she means. “It’s hearsay.” Finally she tells Pia “I never said it.”
“I don’t know if Nora called Pia a whore, but I wouldn’t blame her if she did,” Renee says. “If it looks like a duck and it walks like a duck…quack quack.”
Nora and Pia actually talk things out and kiss, and Nora says “Love you, drop it.” Beef number one seems to actually be squashed, which seems miraculous.
Christina’s not dropping anything though. “You guys should have addressed this the next day,” she tells Pia, sticking to her guns of nipping drama in the bud. Except that she has no clue that she’s starting beef number three. Christina and her kegger of shots are losing control and she keeps pushing everyone’s buttons over an issue that’s already been resolved, and no one knows why. Judging from her face, I don’t even know if she knows why.
She holds fast to the notion that since Pia confided in her about this issue, it’s now her business, and she doesn’t like the way it was resolved after all.
“Shut the f— up!” Pia tells Christina. “Are you my friend or are you not my friend? Right now I don’t think you’re my friend!” she yells, getting up off her couch. “All of a sudden Christina’s like a raging junkyard dog.”
Christina tosses her drink at Nora who stepped in to separate them, and hell breaks loose. “This is completely out of control,” Renee says, as security tries to pry the women apart, but they are fused together at the hair extensions by now.
Once the dust clears, Renee still finds a way to place the blame on Pia, saying “Pia she just has no class. She’s just a piece of s—.”
Introductions are complete, welcome to the world of Mob Wives Chicago.
Thanks to Elizabeth Black
Thursday, June 14, 2012
19 Imperial Gangsters Arrested
Nineteen Chicago-area men, many suspected members or associates of the of the Imperial Gangsters street gang, were arrested Tuesday by FBI special agents and Chicago Police officers assigned to the FBI’s Joint Task Force on Gangs, culminating a nearly three-year long investigation that targeted illicit drug and firearms sales in and around the Humboldt park area on Chicago’s near northwest side.
Tuesday’s arrests were announced by Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation (FBI), who was joined by Garry F. McCarthy, Superintendent of the Chicago Police Department (CPD); Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Lisa Madigan, Illinois Attorney General; and Michael Witz, Chief of the Franklin Park Police Department.
Some of the charges were contained in 12 separate criminal complaints filed in U.S. District Court in Chicago, which were unsealed yesterday and which charged 13 current or former Chicago-area residents with distribution of a controlled substance or violating federal firearms laws. Six others were charged with violating state drug or firearms laws in charges filed in Cook County and Whiteside County Circuit Court.
According to the federal complaints, between December 2009 and May 2012, eight defendants identified below intentionally distributed a controlled substance, either cocaine or heroin, in amounts ranging from 28 to 62 grams. Five others, also identified below and all of whom have prior felony convictions, are alleged to have possessed various makes and models of firearms, both handguns and assault type rifles between December 2009 and November 2011.
The investigation leading to the charges announced today was conducted by the Chicago FBI’s Joint Task Force on Gangs, which is comprised of FBI special agents and officers from the Chicago Police Department. Officers from the Franklin Park Police Department and the Sterling Police Department also assisted. The charges announced today are part of an ongoing and coordinated effort by the FBI and CPD’s Organized Crime Bureau and Gang Investigations Division to identify those responsible for supplying illicit drugs and firearms to Chicago’s criminal element, which are often used in street violence.
Investigators made extensive use of undercover and controlled purchases of illegal narcotics and firearms and court-authorized electronic surveillance of telephones utilized by some of the defendants in this case, both of which helped lead to the filing of the charges announced today. During the course of the investigation, over a kilogram of crack cocaine, over 250 grams of powder cocaine and approximately 125 grams of heroin were recovered. In addition, 31 firearms, approximately $4,000 in cash and three vehicles were seized.
In announcing the charges, Mr. Grant reaffirmed a commitment to investigate and prosecute those who engage in activities that threaten our communities. “Yesterday’s arrests should serve as a warning to those who persist in endangering our communities through the sale of drugs and guns. We will continue to work with our law enforcement partners to find you, to hold you accountable, and to make our neighborhoods safe for the many innocent residents who often pay a huge price for the acts of a few.”
“The street gang targeted in this mission is a violent, organized criminal organization with a history of violence in our city, including the shooting of a Chicago Police officer,” said Superintendent McCarthy. “This investigation especially highlights the entrenched relationship between gangs, guns, and drugs, and demonstrates that the Chicago Police and our federal law enforcement partners are committed to confronting and eradicating the problem,” he added.
Regarding the combined efforts that led to the charges, Attorney General Madigan said, “These arrests demonstrate how effective coordination between law enforcement agencies at all levels can produce significant results in fighting drug dealing and gang activity.”
Those arrested yesterday who were charged with violating federal drug laws are identified as:
- Victor Arroyo, age 30, 2333 North Ashland, Chicago
- Richard Cruz, age 29, 2831 North Kostner, Chicago
- Jose Hernandez, age 40, 4351 West Palmer, Chicago
- Faisal Khan, age 26, 2202 North Rockwell, Chicago
- Oscar Montanez, age 33, 2710 South Lombard, Berwyn
- Rogelio Perez, age 37, 4840 West Henderson, Chicago
- Sergio Sanchez, age 25, 1643 North Parkside, Chicago
- Lawrence Wade, age 41, 0 South 041 Page Street, Winfield
Those arrested yesterday who were charged federally with felon-in-possession of a firearm are identified as:
- Jaime Corral, age 32, 880 Joyce, Leyden Township
- Lazaro Corral, age 29, 920 North Roberta Avenue, Melrose Park
- Martin Murillo, age 29, 2433 West Arthington, Chicago
- Miguel Pedraza, age 30, 1935 North Central Park Avenue, Chicago
- Ismael Velasquez, 31, 2139 North Keystone, Chicago
Those arrested on state charges are identified as:
- Julio Collaza, age 42, 5918 West Waveland, Chicago
- Craig Hartman, age 26, 1507 East 14th Street, Sterling
- Elvis Lebron, age 39, 2528 N. Linder, Chicago
- Ramon Marrero, age 31, 4321 South Paulina, Chicago
- Catalino Soto, age 55, 5729 South Trumbull, Chicago
- Francisco Wolf, age 32, 23 King Arthur Court, Northlake
Those arrested on federal charges appeared yesterday before Magistrate Judge Nan R. Nolan in Chicago, at which time they were formally charged. All were ordered held until their next scheduled court appearances. If convicted, those charged with possession of on excess of 50 grams of crack cocaine face a mandatory minimum sentence of 10 years’ incarceration; those charged with possession of in excess of five grams of crack cocaine face a mandatory minimum sentence of five years’ incarceration; and those charged with felon-in-possession of a firearm face a possible sentence of up to 10 years’ incarceration.
Those arrested on state charges were scheduled to appear in bond court at dates and times to be determined. If convicted, they face possible sentences of up to 30 years in the Illinois Department of Corrections.
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.
Wednesday, June 13, 2012
Henry Hill, Mobster from Goodfellas Fame, Dies
Henry Hill, the famed mobster turned FBI informant whose life story was documented in the book "Wiseguy"- upon which Martin Scorsese's 1990 gangster epic "Goodfellas" was based - has died at the age of 69.
Hill died at a Los Angeles hospital of an undisclosed illness on Tuesday, Nate Caserta, the son of Hill's fiancé Lisa Schinelli Casterta, confirmed.
"[His] heart just stopped. He had been sick for a long time," Nate Caserta told ABC News.
"I will never be the same. I lost someone I cared about a lot . Someone who loved my family and helped me a lot with life," Nate Caserta wrote in a post on Facebook. "You truly lived a life no one could live. You touched so many peoples lifes. Your spirit lives forever with me."
Caserta told ABC News that his family was talking about Hill's smoking problem while his health deteriorated.
Hill was famously associated with New York's Lucchese crime family throughout the 1960s and into the 1980s. He began his life of crime at the age of 11 while growing up on the working class East New York section of Brooklyn by running errands for Paul Vario, a captain in the Lucchese family.
"It's an intoxicating lifestyle that sucks you in. Then you get too scared, and too in love with the money, to leave," Hill told "Good Morning America" in 2004. "All people do is fear you - and that's intoxicating. It's a strange lifestyle."
Hill completed his first major robbery when he and Thomas DeSimone - who was portrayed in an Oscar-winning performance by Joe Pesci in "Goodfellas" - famously robbed Air France of a shipment of $420,000 in April of 1967.
In the 1970s Hill spent six years in prison after he was found guilty of extortion. While in prison, with the help of his wife Karen, Hill still managed to operate outside the law by smuggling drugs and food. He was eventually released early in 1978 for being a model prisoner.
Hill became an FBI informant following a 1980 arrest on a narcotics-trafficking charge, and testimony he delivered led to 50 arrests.
Hill, his wife Karen and their two children entered the witness protection program and changed their names. They were relocated to several locations in Omaha, Neb., Independence, Ky., and Redmond, Wash.
Hill and his wife were expelled from the program in the early 1990s following several arrests on narcotics-related charge. The couple soon divorced. Later he relocated to Malibu and began dating Lisa Caserta, began to sell his own artwork on eBay, and made frequent guest appearances on "The Howard Stern Show".
In 2010, Hill was inducted in the Museum of the American Gangster in New York City.
Ray Liota portrayed Hill in "Goodfellas," which was nominated for six Academy Awards, including Best Picture. Crime reporter Nicholas Pileggi published the book "Wiseguy" in 1986.
Thanks to Kevin Dolak.
Hill died at a Los Angeles hospital of an undisclosed illness on Tuesday, Nate Caserta, the son of Hill's fiancé Lisa Schinelli Casterta, confirmed.
"[His] heart just stopped. He had been sick for a long time," Nate Caserta told ABC News.
"I will never be the same. I lost someone I cared about a lot . Someone who loved my family and helped me a lot with life," Nate Caserta wrote in a post on Facebook. "You truly lived a life no one could live. You touched so many peoples lifes. Your spirit lives forever with me."
Caserta told ABC News that his family was talking about Hill's smoking problem while his health deteriorated.
Hill was famously associated with New York's Lucchese crime family throughout the 1960s and into the 1980s. He began his life of crime at the age of 11 while growing up on the working class East New York section of Brooklyn by running errands for Paul Vario, a captain in the Lucchese family.
"It's an intoxicating lifestyle that sucks you in. Then you get too scared, and too in love with the money, to leave," Hill told "Good Morning America" in 2004. "All people do is fear you - and that's intoxicating. It's a strange lifestyle."
Hill completed his first major robbery when he and Thomas DeSimone - who was portrayed in an Oscar-winning performance by Joe Pesci in "Goodfellas" - famously robbed Air France of a shipment of $420,000 in April of 1967.
In the 1970s Hill spent six years in prison after he was found guilty of extortion. While in prison, with the help of his wife Karen, Hill still managed to operate outside the law by smuggling drugs and food. He was eventually released early in 1978 for being a model prisoner.
Hill became an FBI informant following a 1980 arrest on a narcotics-trafficking charge, and testimony he delivered led to 50 arrests.
Hill, his wife Karen and their two children entered the witness protection program and changed their names. They were relocated to several locations in Omaha, Neb., Independence, Ky., and Redmond, Wash.
Hill and his wife were expelled from the program in the early 1990s following several arrests on narcotics-related charge. The couple soon divorced. Later he relocated to Malibu and began dating Lisa Caserta, began to sell his own artwork on eBay, and made frequent guest appearances on "The Howard Stern Show".
In 2010, Hill was inducted in the Museum of the American Gangster in New York City.
Ray Liota portrayed Hill in "Goodfellas," which was nominated for six Academy Awards, including Best Picture. Crime reporter Nicholas Pileggi published the book "Wiseguy" in 1986.
Thanks to Kevin Dolak.
Debra Gauthier's "Bright Lights, Dark Places"
Little could stand in Debra Gauthier's way. A marathon runner, Debra excelled in the Police Academy, garnering respect as one of the few female police officers in Las Vegas. However, through her twenty-one years on the police force, Debra faced discrimination in the male-dominated profession, suffering demotions and unsafe working conditions when other officers would not provide backup. In addition to the disappointment of injustice, she struggled with her sexuality, becoming entrenched in a homosexual lifestyle. After establishing an identity as a respected police officer, Debra was devastated when her career crumbled. Bright Lights, Dark Places thoughtfully expresses the painful reality of combating biased attitudes and the joy that comes from surpassing limitations. Packed with fascinating stories of a vibrant career, from teaching at the academy to pioneering a bicycle patrol, Bright Lights, Dark Places gives you an inside look at the career of one of the first female officers in Las Vegas. You will be encouraged by this powerful story of one woman finding grace to overcome trials.
Monday, June 11, 2012
Effective Immediately, Illinois Enacts State Version of RICO to Target Street Gangs
Governor Pat Quinn today signed a tough new law to fight gang crime and reduce violence in Illinois. The new law empowers law enforcement with the ability to prosecute street gang leaders for the criminal acts of their organizations. Joining the governor was Cook County State’s Attorney Anita Alvarez, Chicago Mayor Rahm Emanuel, Chicago Police Superintendent Garry McCarthy and local lawmakers.
"One of the best ways to make our neighborhoods safer is to go after street gang leaders who profit from crime," Governor Quinn said. "Gang leaders cannot be allowed to escape justice by hiding behind criminals who do their bidding. This law will help law enforcement get gangs off the street and keep them off.”
House Bill 1907, sponsored by Sen. Tony Munoz (D-Chicago) and Rep. Mike Zalewski (D-Chicago), is modeled off the federal Racketeer Influenced and Corrupt Organizations (RICO) Act that was designed to help law enforcement fight organized crime by treating criminal acts committed by members of the group as part of an ongoing criminal enterprise. Under this legislation, law enforcement in Illinois can more effectively target the street gang leaders who order and benefit from the crimes of lower-ranking members.
The Illinois Street Gang RICO was an initiative of Cook County State’s Attorney Anita Alvarez, who recently formed the office’s first anti-racketeering unit to use the new law to build gang RICO cases involving multiple defendants with the goal of dismantling the street gang from the top down. The unit’s specially-trained prosecutors will also work with other State’s Attorney’s Offices throughout Illinois on how to apply the law effectively.
“For the first time in the history of our state, this new law will give local prosecutors the tools to identify and address patterns in multiple gang-related offenses and join different organized crime offenses and different offenders into a single court proceeding,” Alvarez said. “Prior to the signing of this bill, state prosecutors were typically only able to charge individual gang crimes and rarely, if ever, were able to prosecute and hold gang leaders accountable for the organized activities of the street gang and its rank-and-file members.”
Under the new law, gang members convicted of criminal conspiracy under the new law could face more than 30 years in prison depending on the associated crimes, and fines of up to $250,000 or twice the gross amount of any criminal proceeds. Illinois joins 31 other states in having racketeering statutes.
According to the Chicago Police Department, Chicago has the largest gang population in the country, with approximately 100,000 members in hundreds of factions. 75-80% of the city’s homicides are gang-related.
"On behalf of the children, families and neighbors of Chicago and across Illinois, I commend the Governor for signing HB1907 into law today, and I thank State Senator Tony Munoz and State Representative Mike Zalewski for their work on this bipartisan legislation and State's Attorney Anita Alvarez for her leadership on this issue," said Mayor Rahm Emanuel. "This law will give local law enforcement the power to prosecute gang leaders for crimes that they ordered others to commit and provide a critical tool to dismantle the structure of gangs that are targeting our neighborhoods."
"The Chicago Police Department is committed to making Chicago a safe place to live, work, and play for our residents and we will use all available resources, including the new RICO law, to ensure the safety of communities across the city of Chicago," said CPD Superintendent Garry F. McCarthy. "I commend Mayor Emanuel and Cook County State's Attorney Anita Alvarez for their leadership, State Senator Tony Munoz and Representative Mike Zalewski for their sponsorship, and Governor Pat Quinn for his support of this critical legislation and look forward to the positive effect this action will have in Chicago."
“As a former law enforcement officer, I’ve seen firsthand how gangs are destroying our neighborhoods,” said Sen. Tony Munoz. “The violence and the killing needs to stop for the good our children, our communities, and our city. This law sends a strong message to gangs that they can no longer dodge justice.”
“Under this law, judges and juries will be able to see the big picture when it comes to looking at the full impact of gangs in Illinois,” Rep. Mike Zalewski said. “Gangs that collectively benefit from crimes should not be able to escape criminal responsibility by letting junior members take the fall.”
The law takes effect immediately.
Vatican Bank Mafia Link Investigated by Prosecutors
The official request was made more than a month ago but so far the Vatican Bank, known as the Institute for Religious Works, has refused to disclose any records of the account held by father Ninni Treppiedi – who is currently suspended from serving as a priest.
Investigators want to know more about vast sums of money that are said to have passed through his account to establish if they were money laundering operations by on the run Mafia Godfather, Matteo Messina Denaro.
The reports emerged in the Italian media and came just two weeks after the head of the Vatican Bank, Ettore Gotti Tedeschi, was sacked amid claims of power struggles and corruption within the Holy See which have been linked to the leaking of sensitive documents belonging to Pope Benedict XVI.
More in line with a Dan Brown thriller, it is not the first time that the Vatican Bank has been embroiled in claims of Mafia money laundering. Thirty years ago this month financier Roberto Calvi was found hanging under London's Blackfriars Bridge with cash and bricks stuffed into his pockets.
Initially City of London police recorded the death as suicide but Italian authorities believe it was murder after it emerged Calvi, known as God's Banker because of his links to the Vatican Bank, had been trying to launder millions of pounds of mob money via its accounts and through his own Banco Ambrosiano which had collapsed spectacularly.
Father Treppiedi, 36, was serving as a priest in Alcamo, near Trapani, said to be the richest parish on the Mafia's island stronghold of Sicily, and he was suspended after a series of questionable transactions of church funds and which has also led to his local bishop Francesco Micciche being sacked.
Trapani prosecutor Marcello Viola made the request six weeks ago for details of the account held by Father Treppiedi at the Institute of Religious Works to be disclosed but according to reports in Italian media, as yet the go ahead has still not been given by the Vatican.
In particular prosecutors are said to be looking at financial transactions made through Father Treppiedi's account at the Vatican Bank between 2007 and 2009 and which came to almost one million euros but paperwork explaining the source of the money is said to be missing.
Attention is also focusing on several land and property deals made by the parish which is in Messina Denaro's heartland in the area around Trapani and where he still commands fear and respect.
There is speculation that Gotti Tedeschi was aware of the possible Mafia link and was about to name names and police seized paperwork from his home which is said to detail his suspicions and which he had prepared for a handful of trusted sources as he feared his life was possible in danger.
In a statement prosecutor Viola said:"We have made a request for information to the Vatican City State in the spirit of collaboration with regard to an investigation into sums of money in financial transactions undertaken by the Diocese of Trapani."
Transactions by the Vatican Bank are already under the spotlight with leading Italian newspaper Corriere della Sera saying Gotti Tedeschi was aware of accounts held by "politicians, shady intermediaries, contractors and senior (Italian) officials, as well as people believed to be fronts for Mafia bosses."
Of particular interest are said to be property investments and property sales that could potentially have been used to disguise money transfers and launder money – all this in the light of report earlier this year that the Vatican Bank was not completely transparent in its dealings despite efforts to be so.
The latest development comes as prosecutors in the Vatican continue to question the Pope's butler Paolo Gabriele, 46, in connection with the leaking of documents which then ended up in a whistle blowing book published by an Italian journalist called His Holiness.
No-one from the Vatican was immediately available to comment.
Thanks to Nick Pisa
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