The Chicago Syndicate
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Thursday, January 31, 2013

Warren Ballentine, Host of National Talk Radio Show, Indicted in $9.7 Million Mortgage Fraud Scheme


A suburban Chicago lawyer who hosts a national radio talk show was indicted on federal charges for allegedly engaging in two mortgage fraud schemes that defrauded lenders of a total of approximately $9.7 million. The defendant, Warren Ballentine, allegedly schemed with others to obtain more than two dozen fraudulent mortgage loans and represented buyers at multiple closings, knowing that they were fraudulently qualified for loans to purchase homes in Chicago and various southern suburbs.

Ballentine, 41, of Durham, North Carolina, and formerly of Country Club Hills, owns the Law Office of Warren Ballentine LLC in Country Club Hills. He was charged with two counts of bank fraud, two counts of making false statements to lenders, and one count each of mail fraud and wire fraud in a six-count indictment returned last Thursday by a federal grand jury. The indictment also seeks forfeiture of approximately $9,775,000 in alleged fraud proceeds.

Ballentine is scheduled to be arraigned at 9:30 a.m. on February 5 before U.S. District Judge Matthew Kennelly in Federal Court in Chicago.

The indictment was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas P. Brady, Inspector in Charge of the U.S. Postal Inspection Service in Chicago.

According to the indictment, between December 2004 and February 2005, Ballentine schemed with others to fraudulently cause various lenders to make at least eight loans totaling approximately $3.6 million by making false statements in loan documents, including applications, HUD-1 settlement statements, and occupancy statements concerning the buyers’ intention to occupy the homes they purchased as a primary residence. Ballentine then represented buyers recruited by others at real estate closings, knowing that they had signed and submitted false documents and had been fraudulently qualified to purchase the properties in Chicago, Monee, Woodridge, and Mokena.

Between February 2005 and May 2006, Ballentine allegedly engaged in a similar, separate scheme with others to fraudulently cause various lenders to make at least 20 loans totaling approximately $6.1 million by making false statements in mortgage documents, including the buyers’ intention to occupy the homes as a primary residence. Ballentine also represented these buyers at closings, knowing that they had been fraudulently qualified for the loans based on false documents, including some that Ballentine advised them to sign at closings. These homes were scattered throughout Chicago and other suburbs, including Country Club Hills, Richton Park, and Markham.

Each count of the indictment carries a maximum penalty of 30 years in prison and a $1 million fine or, as an alternative, the court may impose a fine of twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is being represented by Assistant U.S. Attorney Jason Yonan.

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

Wednesday, January 30, 2013

Former Chicago Police Officer, Ali Haleem, Charged with Attempted Extortion of Tow Truck Driver and Selling Guns to Felon


A former Chicago Police officer was charged today with attempting to extort a cash bribe to steer business to a tow truck owner and also with selling three firearms to the same towing operator, who is also a convicted felon. The defendant, Ali Haleem, was charged as part of Operation Tow Scam, a federal investigation of past bribery and extortion involving police officers and towing operators in several Chicago Police districts.

Haleem is the 11th Chicago Police officer to be charged in the corruption probe since 2008. So far, seven officers and three civilians, including two tow truck drivers, have been convicted. Charges are pending against three other officers who were charged last fall.

Haleem, 45, of Chicago, a police officer from 1994 to 2012, was assigned to the 8th District, also known as Chicago Lawn. He was assigned to desk duty after being confronted by law enforcement authorities in 2008 until he resigned last September. He was charged with one count of attempted extortion and two counts of selling firearms to a convicted felon in a criminal information that was filed today. No date has been set yet for his arraignment in U.S. District Court.

The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry McCarthy, Superintendent of the Chicago Police Department.

According to the charges, between March 13 and 20, 2008, Haleem attempted to extort Individual A, who owned a towing business, and who unbeknownst to Haleem was cooperating with law enforcement at the time.

On December 11, 2007, Haleem allegedly sold a .32 caliber semi-automatic pistol and a .25 caliber semi-automatic pistol to Individual A, knowing that Individual A was a convicted felon. On March 13, 2008, Haleem allegedly sold a 9mm semi-automatic pistol to Individual A, knowing that Individual A was a convicted felon. The indictment seeks forfeiture of the three firearms.

The government is being represented by Assistant U.S. Attorney Michael Donovan.

Attempted extortion carries a maximum penalty of 20 years in prison, while each count of delivering a firearm to a convicted felon carries a maximum of 10 years in prison, and all three counts carry a $250,000 maximum fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

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

Honor Student who Marched in Inaugural Band Killed in Gun Cross-Fire after Hanging Out Near Gangsters

A 15-year-old Chicago honor student who participated in inaugural events celebrating President Obama's re-election was fatally shot Tuesday just blocks from her school.

Hadiya Pendleton was among approximately a dozen teens taking cover from the rain in a local park at 2:30 p.m. when a gunman jumped a fence and opened fire, according to reports. Pendleton and other King College Prep students had been dismissed from school early due to exams.The gunshots sent the entire group running out of the park in a panic, authorities say. Pendleton and a 16-year-old boy were both hit and collapsed about one block away.

Pendleton was shot once in the back and later died at the University of Chicago Comer Children’s Hospital. The wounded boy was in serious condition Tuesday night, according to the Chicago Tribune.

 Many of the teens with Pendleton at the time of the shooting were believed to be gang members and left the scene, according to reports.

Pendleton was an honor student, volleyball player, and majorette at King College Prep, according to CBS 2 in Chicago. She was a member of the school's marching band that traveled to Washington for the inauguration festivities last week."She was awesome," one friend told the Chicago Tribune at the hospital.

Thanks to David Boroff.

Fraud Concerns Rise with Granting Illegals Right to Drive in Illinois

As Illinois becomes the fourth and most populous state to give illegal immigrants permission to drive, nagging concerns remain about whether there are enough safeguards to avoid the identity fraud and other pitfalls other states faced.

Democratic Gov. Pat Quinn signed Illinois' measure into law Sunday in Chicago. Backers, including Quinn, Chicago Mayor Rahm Emanuel and some of the state's top Republicans, tout it as a public-safety measure. They argue that required facial recognition technology is reliable enough to prevent fraud.

They hailed it as an important step for immigrant rights in Illinois, which approved its own Dream Act in 2010 to create a privately-funded scholarship program for immigrant students. President Barack Obama plans to discuss his plan to overhaul the immigration system during a trip to Las Vegas on Tuesday.

"This was a bipartisan effort to pass an important law," Quinn said. "When the president speaks on Tuesday, he can say about his home state of Illinois ... we not only passed the Dream Act last year, we passed driver's licenses for those who are undocumented ."However, the law's opponents have pointed to hundreds of fraudulent cases in New Mexico, Washington and Utah after those states began giving illegal immigrants permission to drive. Illinois will not require applicants to be fingerprinted, for fear that would discourage immigrants from applying.

"How many people would apply for this document knowing that fingerprints will be going to (federal authorities)? Probably not all that many," said Fred Tsao, policy director of the Illinois Coalition for Immigrant and Refugee Rights, a driving-force behind the measure.

Proponents say it will allow an estimated 250,000 people unlawfully residing in the state to apply for a three-year temporary driver's license and require them to get training and insurance. The Illinois secretary of state's office said the licenses will be available starting in October.

Those ready for the change include 45-year-old Victoria Chavez. "I need to get my driver's license because I have two kids," the Chicago woman said. "They need my support. This is a victory for all of us in the immigrant community."

The licenses will be like those already issued to certain foreign-born, legal visitors. Applicants will be photographed, and their photo will be entered into the state's facial recognition database - like the rest of Illinois' licensed drivers- to verify their identity. But other states' driving programs for illegal immigrants have been abused. New Mexico and Washington both issue licenses, while Utah issues a permit.

An Associated Press investigation last year found a striking pattern in New Mexico, suggesting immigrants tried to game the system to obtain a license. In one instance, 48 foreign-born individuals claimed to live at a smoke shop in Albuquerque to fulfill a residency condition.

Authorities also busted a fraud ring last year that forged documents for illegal immigrants to use after driving from as far as Illinois and North Carolina to obtain a New Mexico license. Republican Gov. Susana Martinez has vowed for years to repeal the decade-old measure, but the Legislature has rejected such efforts.

Washington's requirements attracted national attention when Jose Antonio Vargas, a Pulitzer Prize-winning journalist, revealed his illegal immigration status in an essay for the New York Times Magazine in 2011. Vargas chronicled how he obtained his Washington license. State authorities conducted an investigation that revealed Vargas did not reside at the address he stated in his application and canceled his license.

Utah's permit is not valid for identification. Illinois' law follows suit.

Utah's Republican-controlled Legislature amended the state's law in 2011 to require illegal immigrants to be fingerprinted, and mandates that the state notify U.S. Immigration and Customs Enforcement if an applicant's fingerprint check yields a felony on record. If the applicant has a misdemeanor warrant outstanding, the state must notify the agency that is seeking the person's arrest.

That kind of information-sharing between state and immigration authorities worries Illinois' immigrant-rights advocates, such as Tsao, who pushed for the legislation without a fingerprinting requirement. They say fingerprinting could deter potential licensees from applying for fear of being identified and deported.

Local law enforcement officials argue in favor of fingerprinting. "We could see if they have committed a crime; it could be a crime in another state or it could be a crime in their home country," said John Kennedy, executive director of the Illinois Association of Chiefs of Police.

The Illinois secretary of state's office says its facial recognition database is highly sophisticated and accurate. The program uses an algorithm to match more than a dozen facial features that are not easy to alter, such as eye sockets and sides of the mouth. "The integrity of our driver's license system is a priority," said Henry Haupt, a spokesman for the office.

The bill's sponsor, Rep. Edward Acevedo, a Chicago Democrat, said state roads will be safer because illegal immigrants will receive training and be tested before obtaining a license. They also will be required to purchase insurance, Acevedo said.

Tsao's organization estimates uninsured illegal immigrant drivers cause $64 million in damage claims each year, an expense currently covered by increased premiums.

Thanks to Regina Garcia Cano and Michelle Jayane Nealy.

Monday, January 28, 2013

Andrew Vale Named FBI's Special Agent in Charge for Albany Division

Director Robert S. Mueller, III has named Andrew W. Vale special agent in charge of the FBI’s Albany Division. Mr. Vale most recently served as special assistant to the deputy director at FBI Headquarters in Washington, D.C.

Mr. Vale began his career as a special agent with the FBI in September 1991. He first reported to the Newark Division, where he investigated terrorism, background, and civil rights matters. In October 1998, Mr. Vale was promoted to supervisor of the Joint Terrorism Task Force to oversee domestic and international terrorism investigations.

In November 2001, he transferred to the Domestic Terrorism Operations Unit at FBI Headquarters and provided program management oversight for all domestic terrorism investigations in the Northeast region of the United States. He was promoted to chief of the unit in August 2003. In January 2005, Mr. Vale was appointed unit chief of the Director’s Research Group, where he reviewed, edited, and approved briefing materials for Director Mueller’s congressional testimony, domestic and international travel, and meetings.

Mr. Vale transferred to the Albany Division in August 2006 as the assistant special agent in charge of the National Security Branch. In this capacity, he provided program management oversight for the Counterterrorism, Counterintelligence, and Intelligence programs. Mr. Vale returned to FBI Headquarters in September 2011 as the special assistant to the deputy director.

Prior to his appointment with the FBI, Mr. Vale spent four years with the Buffalo District of the United States Immigration and Naturalization Service as an immigration inspector and immigration detention officer.

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