McHenry County Blog

A press release from the U.S. Attorney’s Office:

TWO CHICAGO AREA MEN ARRESTED ON EXTORTION-RELATED CHARGES INVOLVING ALLEGED PLOT TO ABDUCT AND MURDER VICTIM

CHICAGO — Two Chicago area men were arrested last night and charged today with attempted extortion and extortion conspiracy involving an alleged plot to abduct, extort, murder, and dismember a victim whom they believed had access to large amounts of cash generated from commercial real estate holdings.

The arrests followed an undercover FBI investigation during which the intended victim, who was not identified, was never exposed to any immediate danger.

Steven Mandell, formerly known as “Steven Manning,” 61, of Buffalo Grove, and Gary Engel, 61, of Homer Glenn, were each charged with attempted extortion and conspiracy to commit extortion in a criminal complaint filed today in U.S. District Court. They were scheduled to appear at 11 a.m. before U.S. Magistrate Judge Geraldine Soat Brown.

The arrests and charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and William C. Monroe, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation is continuing, they said.

The defendants were arrested last evening after they traveled to the vicinity of the planned abduction on the city’s northwest side.

According to the complaint affidavit, both men possessed what appeared to be “prop” firearms and various fake law enforcement credentials.

Engel also possessed handcuffs and Mandell also possessed a fake arrest document that appeared to name the victim as a criminal defendant.

After the arrests, FBI agents searched the location where the defendants allegedly planned to carry out their plans and seized

• a loaded .22 caliber semi-automatic pistol and additional ammunition, as well as
• saws,
• a butcher knife, and
• multiple zip-ties suitable for use as restraints.

Mandell, a former Chicago police officer for approximately 10 years until 1983, and Engel, a former Willow Springs police officer, allegedly intended to abduct the victim, referred to as “Soupie” or “Soupie Sales,” while posing as law enforcement officers purporting to “arrest” the victim while the victim attended a meeting with another person identified only as Individual A.

They allegedly planned to take the victim to a nearby office location, referred to in the affidavit as “Club Med,” where they planned to carry out the extortion and murder after Mandell drove the victim’s car to the victim’s residence to make it appear that the victim had disappeared after returning home from the meeting with Individual A.

The defendants planned to extort the victim to turn over cash and some 25 commercial real estate holdings before murdering the victim, the complaint alleges.

During the investigation, which included audio and video recordings, Mandell speculated that the victim generated as much as $100,000 a month in cash from rental properties. At one time, Mandell and Engel allegedly discussed demanding at least $500,000 from the victim to be released, while still planning to murder the victim.

During the last month, Mandell arranged to outfit the “Club Med” location with a large deep sink, a long counter capable of supporting several hundred pounds, and a shower. He took possession of the extortion location this past Monday, and met there with Engel over the next three days to plan how they would abduct the victim while posing as police officers, how they would restrain the victim, and dismember the victim after the extortion and murder.

On Oct. 10, Mandell discussed the abduction and extortion with Individual A, saying, “My guy knows what he’s doing, he knows how to waterboard, do interrogation, psy-ops,” according to the affidavit. When Mandell and Engel met at the extortion location this week, they allegedly discussed using the counter and sink area to drain the victim’s blood before dismembering the body.

The affidavit describes Mandell discussing the plot with Individual A initially on Sept. 22, followed by additional discussions in late September and throughout this month. On Oct. 4. Mandell and Individual A traveled to a vacant office space to discuss how the location could be renovated to use for the extortion.

Attempted extortion and extortion conspiracy each carry a maximum penalty of 20 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is being represented by Assistant U.S. Attorneys Amarjeet Bhachu and Diane MacArthur.

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

A press release from the U.S. Attorney’s Office:

CHICAGO AREA SURGEON SENTENCED TO 10 MONTHS IN CUSTODY FOR MAKING FALSE STATEMENTS ABOUT SERVICES AND MEDICARE BENEFITS

CHICAGO — A Chicago area vascular and thoracic surgeon was sentenced today to 10 months in federal custody after being convicted at trial of making false statements in post-operation reports relating to health care services and Medicare benefits.

The defendant, DR. JOHN NATALE, was found guilty following a week-long trial in May of two counts of making false statements by a jury that also acquitted him of two counts of health care fraud and one count of mail fraud for allegedly defrauding Medicare.

Natale, 63, of South Barrington, was ordered to begin serving his sentence on Nov. 1by U.S. District Judge Rebecca Pallmeyer, who also imposed a fine of $40,000 and periods of community service during one year of supervised release after incarceration.

“The goal here was to collect more than he [Natale] otherwise would have been entitled,” Judge Pallmeyer said in determining that there was an intended loss to Medicare of at least $10,000.

Natale faced a maximum sentence of five years in prison and a federal sentencing guideline range of 15 to 21 months after Judge Pallmeyer also found that Natale had obstructed justice while testifying in his own behalf at trial.

Natale specialized in repairing abdominal aortic aneurysms, which is a weakening of the artery, and the trial focused on six surgeries he performed in 2003 and 2004 on patients at Northwest Community Hospital in Arlington Heights.

Natale later operated at Swedish Covenant Hospital in Chicago, according to his trial testimony.

Northwest Community Hospital medical officials, who also testified at trial, cooperated with the government’s investigation.

The evidence at trial showed, and the jury found, that for at least two patients in 2004, Natale prepared false post-operation reports that, among other things, contained extensive details about aneurysm repairs that he never performed, and falsely described the surgeries he did perform as being more complex and elaborate than they actually were.

In the case of one patient whose medical condition deteriorated a year after Natale operated, another surgeon testified that he had to untangle the falsehoods in Natale’s records, which, if relied upon, would have had a serious impact on his subsequent treatment of that patient.

The government was represented by Assistant U.S. Attorney Amarjeet Bhachu.

The sentence was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Thomas P. Brady, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service.

The investigation was conducted by the Medicare Fraud Strike Force, which expanded to Chicago in 2011, and is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce anti-fraud laws around the country.

A press release from the U.S. Attorney’s Office:

CHICAGO AREA SURGEON CONVICTED AT FEDERAL TRIAL OF MAKING

FALSE STATEMENTS RELATING TO HEALTH CARE BENEFITS AND SERVICES

CHICAGO — Dr. John Natale, a Chicago area vascular and thoracic surgeon, was convicted of two federal felony counts for making false statements in reports relating to health care benefits and services following a week-long trial in U.S. District Court. 

A jury deliberated several hours yesterday afternoon before

• convicting Natale of two counts of making false statements and
• acquitting him of
•  two counts of health care fraud and
• one count of mail fraud

Natale, 63, of South Barrington, remains free on his own recognizance while awaiting sentencing, which U.S. District Judge Rebecca Pallmeyer scheduled for Aug. 15.  He faces a maximum penalty of five years in prison and a $250,000 fine on each of the two counts.

Natale specializes in repairing abdominal aortic aneurysms, which is a weakening of the artery, and the trial focused on six surgeries he performed in 2003 and 2004 on patients at Northwest Community Hospital in Arlington Heights.

Natale currently operates at Swedish Covenant Hospital in Chicago, according to his own testimony at trial.

Northwest Community Hospital medical officials, who also testified at trial, assisted with the government’s investigation.

Natale was indicted last September for allegedly defrauding Medicare by submitting false claims for payment and by intentionally preparing fictitious medical reports that detailed medical procedures that he knew did not occur or were more complex than those he actually performed.

The evidence at trial showed, and the jury found, that for at least two patients in 2004, Natale  prepared false post-operative reports that, among other things,

• contained extensive details about aneurysm repairs that he never performed, and
• falsely described the surgeries he did perform as being more complex and elaborate than they actually were.

In the case of one patient whose medical condition deteriorated a year after Natale operated, another surgeon testified that he had to untangle the falsehoods in Natale’s records, which, if relied upon, would have had a serious impact on his subsequent treatment of that patient.

The government is being represented by Assistant U.S. Attorneys Amarjeet Bhachu and Christopher Niewoehner.

The conviction was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, together with Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General, and Thomas P. Brady, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service.

The investigation was conducted by the Medicare Fraud Strike Force, which expanded to Chicago in 2011, and is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce anti-fraud laws around the country.

A press release from the US Attorney’s Office concerning Chicago aspects of Medicaid fraud indictments.

FOUR CHICAGO AREA DEFENDANTS CHARGED IN NATIONWIDE
MEDICARE FRAUD STRIKE FORCE TAKEDOWN; THREE OTHERS
CHARGED WITH DEFRAUDING PRIVATE HEALTH INSURERS

Total of 91 Defendants Charged Nationwide for Submitting
More Than $295 Million in False Billing to Medicare

CHICAGO — An area vascular surgeon, three chiropractors, a psychologist and a nursing home admissions director are among seven defendants charged this week with participating in four separate, unrelated health care fraud schemes to defraud the Medicare program or private health insurers of millions of dollars, federal law enforcement officials announced today.

Three of the Chicago cases charging four defendants are part of a nationwide takedown by Medicare Fraud Strike Force operations, announced today by the Departments of Justice and Health and Human Services, that led to charges against 91 defendants for their alleged participation in schemes to collectively submit more than $295 million in fraudulent claims to the Medicare program. This coordinated takedown involved the highest amount of false Medicare billings in a single takedown in Strike Force history.

In Chicago, four defendants were charged in a criminal information and two indictments filed today and three defendants were indicted last week in U.S. District Court. The defendants were charged with various crimes, including

• health care fraud for allegedly defrauding the Medicare program, and
• violating the anti-kickback statute, which makes it illegal to offer or solicit kickbacks in exchange for referrals of Medicare patients.

The charges involve various medical treatments and services such as

• surgery,
• nursing home care,
• chiropractic and
• psychotherapy services.

“The defendants charged in this takedown are accused of stealing precious taxpayer resources and defrauding Medicare — jeopardizing the integrity of our health care system and our nation’s most critical health care program for personal gain,” said Attorney General Eric Holder.

“Our highly coordinated, nationwide Strike Force operations are working aggressively to combat Medicare fraud and our anti-health care fraud efforts have never been more innovative, collaborative, aggressive — or effective. We will continue to work with our law enforcement partners and partners across government to fight against health care fraud,” he said.
“Today’s action further demonstrates the commitment we announced earlier this year to ensure that dishonest medical providers do not profit from cheating Medicare and private insurers,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.

Details of the Chicago cases follow:

United States v. John Natale

Dr. John Natale, a vascular surgeon who had privileges at Northwest Community Hospital in Arlington Heights, was charged in a five-count indictment returned today with defrauding Medicare by submitting false claims and by intentionally preparing fictitious medical reports that detailed medical procedures that he knew did not occur or were more complex than those he actually performed.

Natale, 62, of South Barrington, was charged with two counts of health care fraud, two counts of making false statements involving a health care benefit program and one count of mail fraud. He will be arraigned at a later date in U.S. District Court.

Between August 2002 and October 2004, Natale allegedly falsely sought Medicare reimbursement for aneurysm repairs that he never performed, and falsely claimed to have performed more complicated repair of certain aneurysms, or weakened blood vessels, knowing that the surgeries he had performed involved less complicated procedures. Natale allegedly used the proceeds of the fraudulently obtained Medicare payments for his own personal benefit.

According to the indictment, surgical insertion of a graft above or in the immediate vicinity of the kidneys to repair a supra-renal or juxta-renal aneurysm is generally more complex than the surgical insertion of a graft below the kidneys to repair an infra-renal aneurysm. For at least five patients, Natale also allegedly prepared false medical reports that, among other things, contained extensive details about aneurysm repairs that he never performed, and falsely described the surgeries he did perform as being more complex and elaborate than they actually were.

The government is represented by Assistant U.S. Attorney Amarjeet Bhachu. The case was investigated by the U.S. Postal Inspection Service and the Health and Human Services Office of Inspector General (HHS-OIG.)

United States v. Keenan Ferrell and Bryce Woods

Keenan R. Ferrell, a licensed psychologist in Illinois and at least a half-dozen other states, and Bryce Woods, who was not a medical professional in any field, owned and operated Take Action, Inc., and Inner Arts, Inc., which claimed to provide psychotherapy services to Medicare beneficiaries residing in skilled nursing homes in the Chicago area and elsewhere.

Between September 2003 and July 2011, Ferrell and Woods allegedly submitted false claims totaling more than $4.4 million to Medicare for psychotherapy services, and fraudulently obtained approximately $1,863,415 million.

Ferrell, 51, and Woods, 34, both of Chicago, were each charged with nine counts of health care fraud in an indictment returned today. The indictment also seeks forfeiture of more than $1.8 million in alleged illegal proceeds. They will be arraigned at a later date in U.S. District Court.

According to the indictment, Ferrell and Woods submitted false claims to Medicare on behalf of patients living in skilled nursing homes under a Medicare provider number belonging to Ferrell claiming that he had provided 45-50 minutes of one-on-one psychotherapy to patients, when in fact, the treatment sessions were done by Woods, psychology graduate students recruited by Ferrell, or others with limited or no physician supervision.

Knowing that psychotherapy services were reimbursable by Medicare only when performed by an enrolled provider or when “incident to” the services of an enrolled provider, Ferrell and Woods allegedly arranged for Ferrell, who was an enrolled Medicare provider and licensed medical doctor, to authorize Inner Arts and Take Action to accept assignment of his claims to Medicare. Ferrell and Woods allegedly arranged with psychology graduate students and others to see patients at various skilled nursing facilities.

Ferrell, knowing that he needed to be present at nursing homes whenever a therapist conducted a session for Ferrell to be entitled to bill Medicare for services “incident to” his care, did not attend or otherwise participate in therapy sessions in the nursing homes, according to the indictment. As a result, Ferrell was not physically present and immediately available when Take Action and Inner Arts therapists purportedly were in nursing homes to render psychotherapy services, it adds.

As part of the scheme, Ferrell and Woods allegedly billed Medicare for more psychotherapy sessions than had actually been performed, regardless of the reimbursement code that was used. The indictment also alleges that they billed for services provided to deceased individuals.

The government is represented by Assistant U.S. Attorney Paul Tzur. The case was investigated by the FBI and the HHS-OIG.

United States v. Bradley Mattson, Steven Paul and Neelesh Patel

Three chiropractors, Bradley Mattson, Steven Paul and Neelesh Patel, who owned suburban clinics that provided chiropractic, medical and physical therapy services, were charged in a 23-count indictment with defrauding three private health insurance companies for more than a decade beginning in 1999. Mattson, Paul and Patel owned and operated

• Hawthorn Physical Medicine in Vernon Hills,
• Woodfield Physical Medicine in Schaumburg,
• Stratford Physical Medicine in Bloomingdale, and
• Algonquin Physical Medicine in Lake-in-The-Hills (2250 W Algonquin Rd),

while Mattson and Paul also owned and operated

• Northshore Physical Medicine in Niles and
• Cumberland Physical Medicine in Norridge.

Mattson, 49, of Lake Forest, was charged with 19 counts of health care fraud; Paul, 40, of Northbrook, was charged with four counts of health care fraud; and Patel, 36, of Glenview, was charged with 15 counts of health care fraud. Mattson is scheduled to be arraigned next Tuesday and Paul and Patel are scheduled to be arraigned next Wednesday in U.S. District Court in Chicago.

According to the indictment, the defendants submitted false insurance claims to Blue Cross and Blue Shield of Illinois, Aetna and Humana for services that either were not medically necessary or that they did not provide to patients, including

• x-rays,
• MRIs,
• neurological diagnostic testing, and
• physical therapy services.

Between 1999 and 2008, the defendants billed Blue Cross alone more than $18 million. The indictment does not specify the amount of the allegedly fraudulent claims or the amount that was fraudulently obtained from any of the three insurance carriers.

The defendants allegedly marketed the clinics through their company, ARC Health, at malls and employee health fairs that targeted individuals insured by certain health care benefit programs. They instructed ARC Health marketing employees to offer potential patients coupons that falsely advertised a free x-ray exam and a discounted office visit, which they actually later billed to the patients’ insurance companies, the indictment alleges. As part of the fraud scheme, the defendants allegedly instructed their clinics’ chiropractors to order neurological diagnostic testing and MRIs for patients, regardless of medical necessity, and then to falsify the patients’ diagnoses so their health plans would cover additional visits for treatment.

Mattson alone allegedly received kickbacks from unnamed Individual A, who owned an unnamed MRI facility, in exchange for Mattson sending patients from the six clinics to Individual A’s facility for MRI exams.

The government is represented by Assistant U.S. Attorney Renai Rodney. The case was investigated by the FBI and the U.S. Department of Labor Office of Inspector General.

United States v. Jay Canastra

Jay Canastra, the director of admissions at The Wealshire, a nursing home in northwest suburban Lincolnshire, was charged with accepting a $1,600 kickback in exchange for referring nursing home Medicare patients to a home health care agency in West Dundee.

Canastra, 38, of Vernon Hills, was charged with one count of violating the anti-kickback statute in a criminal information filed today in U.S. District Court. He will be arraigned at a later date.

According to the charge, on Dec. 4, 2009, Canastra received the $1,600 cash kickback from unnamed Individual A, who was a representative of unnamed Agency A, which was authorized by Medicare to provide home heath services. Canastra allegedly accepted the payment in exchange for referring Medicare beneficiaries at his nursing home to Agency A, in violation of the federal law that makes it illegal to exchange kickbacks in return for Medicare referrals. There is no allegation that the nursing home or any other official there were aware of the alleged kickback.

The government is represented by Assistant U.S. Attorney Dylan Smith. The case was investigated by the FBI and the HHS-OIG.

The charges in these cases carry the following maximum penalties on each count: health care fraud — 10 years in prison, and mail fraud — 20 years in prison, and both carry a $250,000 maximum fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater; and making false statements regarding a health care matter, and violating the anti-kickback statute — 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.

The Medicare Fraud Strike Force operations, which expanded to Chicago in February 2011, are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,140 defendants who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The results of the nationwide takedown were announced today by Attorney General Holder, HHS Secretary Kathleen Sebelius, FBI Director Robert S. Mueller, Assistant Attorney General Lanny A. Breuer of the Criminal Division and Inspector General Daniel R. Levinson of the HHS-OIG. Mr. Fitzgerald announced the Chicago charges together with Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG, James Vanderberg, Special Agent-in-Charge of the Labor Department Office of Inspector General in Chicago; and Thomas P. Brady, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service.

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

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: http://www.stopmedicarefraud.gov

BERWYN BUSINESSMAN ARRESTED ON FEDERAL ILLEGAL GAMBLING AND
TAX FRAUD CHARGES; ADDED AS EIGHTH DEFENDANT IN NEW INDICTMENT

CHICAGO – A Chicago man who allegedly helped a criminal organization run its illegal gambling activities was arrested today on federal gambling and tax fraud charges, federal law enforcement officials announced.

The defendant, Casey Szaflarski, acting through his Berwyn business, Amusements, Inc., was charged with conducting an illegal gambling business since 2002, along with two other men, among seven total, who were charged previously.

The gambling and tax charges against Szaflarski were brought in a superseding indictment that was returned by a federal grand jury last week and unsealed today following his arrest.  The charges allege that Szaflarski failed to report more than $255,000 of business income between 2004 and 2006, and that he failed to file a federal income tax return for 2007.

Szaflarski, 52, was scheduled to be arraigned at 2:30 p.m. today before U.S. Magistrate Judge Nan Nolan in Federal Court in Chicago.

He was charged with one count of conducting an illegal gambling business, three counts of filing a false federal income tax return and one count of failing to file a federal income tax return, for a total of five counts in the 16-count superseding indictment.

The new indictment was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Andrew L. Traver, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Federal officials commended the assistance of the Berwyn Police Department and the Cook County Sheriff’s Department.

The charges against Szaflarski were brought in a superseding indictment in United States v. Polchan, et al., 08 CR 115, in which seven other defendants were indicted in May 2009 on racketeering conspiracy charges alleging eight years of

• criminal activity, including
• armed robberies and thefts,
• illegal gambling,
• obstruction of justice and
• arson, including the pipe-bombing of a competing Berwyn video and vending machine business in 2003.

Szaflasrki was not charged in the racketeering conspiracy or arson counts.  He was charged with conducting an illegal gambling business, ongoing since at least 2002, with co-defendants Michael Sarno and Mark Polchan.

Today’s indictment adds a new forfeiture allegation seeking at least $3,607,201 from Szaflarski, Sarno and Polchan as proceeds of the alleged illegal gambling activity.  The indictment results, in part, from federal search warrants that were executed at more than two dozen suburban locations, including bars and restaurants, on May 27, 2009.

The three counts of filing false federal income tax returns allege that Szaflarski failed to report the following income from his closely-held business, Amusements, Inc.:

• at least $78,417 for 2004 when he reported total income of $373,736;
• at least $82,355 for 2005 when he reported total income of $262,842; and
• at least $94,593 for 2006 when he reported total income of $286,071.

The indictment further alleges that Szaflarski failed to file a federal income tax return for 2007 when he received gross income of at least $95,911.

The government is being represented by Assistant U.S. Attorneys T. Markus Funk and Amarjeet S. Bhachu.

The counts against Szaflarski alone carry the following maximum terms of incarceration:  operating an illegal gambling business — 5 years; filing false federal income tax returns — 3 years; and failing to file a federal income tax return — 1 year.  In addition, each count carries a maximum fine of $250,000, except the failing to file count, which is a misdemeanor and carries a maximum fine of $100,000.  Defendants convicted of tax offenses must be assessed mandatory costs of prosecution and remain liable for any back taxes, interest and penalties owed.  If convicted, the Court must determine a reasonable sentence under the advisory United States Sentencing Guidelines.

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

= = = = =

Below are the paragraphs that mention video gambling.  The machines, of course, are really slot machines:

COUNT ONE
THE SPECIAL JANUARY 2009 GRAND JURY charges:

I. THE ENTERPRISE

The illegal activities of the enterprise included, but were not limited to:

1. committing armed robberies and thefts from jewelry stores, businesses, and private residences;
2. transporting stolen goods across state lines;
3. committing thefts, and obtaining stolen items, from interstate shipments of goods;
4. 

   Video poker games next to the Happy Trails Restaurant in Wisconsin.

   purchasing, possessing, and selling stolen goods;

5. using threats, violence and intimidation to advance the interests of the enterprise’s illegal activities;
6. committing arson;
7. operating and facilitating illegal gambling businesses, which included the use of video gambling machines;
8. obstructing justice and criminal investigations by tampering with and intimidating witnesses;
9. obstructing justice and criminal investigations by gathering information concerning the fact of, and extent of, ongoing federal criminal investigations from, among other sources, corrupt local law enforcement officers and law enforcement databases; and
10. traveling in interstate commerce to further the goals of the criminal enterprise…

COUNT TWO

THE SPECIAL JANUARY 2009 GRAND JURY further charges:
Beginning no later than 2002 and continuing through the date of the return of this indictment , in the Northern District of Illinois, Eastern Division, and elsewhere,

MARK POLCHAN,
MICHAEL SARNO, also known as,
“Big Mike,” “Mikey,” “Large,”and “the Large Guy,” and
CASEY SZAFLARSKI,

defendants herein, together with other persons known and unknown to the Grand Jury, knowingly conducted all or part of an illegal gambling business, that is, a business involving the use of video gambling machines and devices, which business was in substantially continuous operation for a period in excess of thirty days, which involved five or more persons who conducted, financed, managed, supervised, directed and owned all or part of the business, and which was a violation of the following laws of the State of Illinois: 720 ILCS 5/8-2, 5/28-1(a)(3) and (5)…

A Crystal Lake video poker machine.

DEFENDANT MICHAEL SARNO

Defendant MICHAEL SARNO, also known as, “Big Mike,” “Mikey,” “Large,” and “the Large Guy,” oversaw, directed and guided certain of the enterprise’s illegal activities. Among other things, SARNO caused members of the enterprise, including defendants MARK POLCHAN and SAMUEL VOLPENDESTO, to bomb “C & S Coin Operated Amusements,” a video gaming device business located in Berwyn, Illinois, for the purpose of eliminating business competition, and for the purpose of protecting and enhancing the enterprise’s own business relationships. SARNO oversaw the enterprises’s illegal gambling ventures, and received a share of the enterprise’s profits from POLCHAN…

DEFENDANT MARK POLCHAN

7. Defendant MARK POLCHAN also occupied a leadership role in the enterprise. He supervised the activities of the enterprise, identified targets for robbery and other illegal enterprise activity, and directed the activities of others employed by and associated with the enterprise. POLCHAN, moreover, utilized his business, a sole proprietorship operating under the names “M. Goldberg Jewelers,” and “Goldberg Jewelers,” located at 1203 South Cicero Avenue in Cicero, Illinois, to

• conduct meetings with various criminal associates, as well as to
• obtain, store, and sell stolen goods, including stolen goods transported in interstate commerce, stolen goods obtained through robbery, goods obtained from theft from interstate shipments, and goods obtained through the fraudulent use of access devices, including goods obtained through such illegal activities by defendants SAMUEL VOLPENDESTO, JAMES FORMATO, MARK HAY and ANTHONY VOLPENDESTO.

POLCHAN further used Goldberg Jewelers as a location to

• plan the enterprise’s illegal gambling activities with SARNO, and to
• temporarily house video gambling devices obtained from Casey Szaflarski prior to their distribution to various locations, including to clubhouses operated by the Outlaws Motorcycle Club, an organization of which POLCHAN was a member.

POLCHAN also used Goldberg Jewelers as a location to meet and confer with corrupt local law enforcement officials, including but not limited to defendant DINO VITALO, a Cicero police officer who POLCHAN utilized to perform counter surveillance and to advise him of on-going federal law enforcement activity in the vicinity of Goldberg Jewelers.

Further, POLCHAN was also responsible for making on-going payments to SARNO, from cash derived from the enterprise’s illegal activities. At times, POLCHAN used his residence, located in Justice, Illinois, to meet with members of the enterprise in furtherance of their joint illegal activities and to store unlawfully-obtained items.