McHenry County Blog

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

FORMER CITY INSPECTOR SENTENCED TO 2½ YEARS IN PRISON FOR TAKING BRIBES TO HELP MORE THAN 500 INDIVIDUALS OBTAIN STATE FOOD SANITATION CERTIFICATES

CHICAGO — A suburban woman who was authorized by the Illinois Department of Public Health to teach food service sanitation classes and administer state certification exams was sentenced today to 2½ years in federal prison for conspiracy to commit bribery for accepting at least $96,930 for herself in return for fraudulently arranging to provide bogus certificates for at least 531 individuals.

The defendant, MARYANNE KOLL, a retired Chicago Public Health Department food sanitation inspector who operated Kollmar Food Safety Institute from her home in Burr Ridge, was convicted in September 2011 of one count of bribery conspiracy by a federal judge following a bench trial in Federal Court.

Koll, 69, was sentenced to 30 months in prison by U.S. District Judge Harry Leinenweber, who had rendered the guilty verdict last year. She was ordered to begin serving the sentence on Dec. 31, 2012.

The sentence was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; William C. Monroe, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago.

According to court documents, between 1995 and 2007, Koll was authorized by the IDPH to teach state-mandated food sanitation courses and administer exams to individuals seeking certification as food service sanitation managers.

A state-approved course required 15 hours of training, including instruction regarding food borne illnesses, time/temperature relationships, personal hygiene, pest control and prevention of food contamination.

State law required all food service establishments, such as restaurants, grocery stores, bakeries, convenience stores, schools and hospitals to have on-site an individual holding a food service sanitation manager certificate based on successful completion of the course and exam.

Through a reciprocity agreement between the City of Chicago and the state, an individual holding an Illinois certificate could obtain a Chicago food service sanitation manager certificate without taking a second exam by submitting a copy of the state certificate to the city along with a fee.

From at least June 2004 through June 2007, in exchange for cash bribes, Koll arranged to fraudulently obtain certificates for individuals who had not attended a course or passed the exam.

She enabled them to obtain certificates by fraudulently completing answer sheets and submitting them to the IDPH on their behalf, knowing that they had not attended the course or taken the exam.

Although Koll was an independent contractor for the State of Illinois, the judge found that, under federal law, she was an agent of the state Department of Public Health when she accepted bribes.

Koll was initially charged in 2007 and her conviction followed several years of legal proceedings.

At the time the case began, federal authorities said they had provided state officials with information about the unqualified individuals who received fraudulent state certificates.

The government is being represented by Assistant U.S. Attorney Michelle Nasser.

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

(The Criminal Complaint, which really provides insight into this dark alley of Chicago politics, can be found here.)

STATE REP. DERRICK SMITH ARRESTED ON FEDERAL BRIBERY CHARGE

Derrick Smith

CHICAGO — Illinois State Rep. Derrick Smith (10th District) was arrested today on a federal bribery charge after an undercover investigation for allegedly accepting a $7,000 cash bribe to write an official letter of support for a daycare center that he believed was seeking a state grant.

Since December 2011, Smith and an individual identified as CS-1, who works on Smith’s political campaigns and who, unbeknownst to Smith, was cooperating with the FBI, had numerous conversations about helping a fictional daycare owner obtain a purported state grant in exchange for a political contribution, according to a criminal complaint unsealed after Smith’s arrest.

On March 2, Smith provided CS-1 with an official letter of support for the daycare owner to obtain a $50,000 Early Childhood Construction Grant from the state’s Capital Development Board.

In return, during a recorded meeting this past Saturday, CS-1 gave Smith $7,000 cash, purportedly from the fictional daycare owner, the complaint alleges.

Smith, 48, of Chicago, was charged with one count of accepting a bribe, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

Smith will appear at 3 p.m. today before Magistrate Judge Nan Nolan in U.S. District Court.

Smith was appointed state representative for the 10th District, which covers portions of Chicago’s near west and near northwest sides, in March 2011, and is a candidate for the General Assembly seat in next week’s primary election.

According to the complaint, the FBI began receiving information concerning Smith from CS-1 in December 2011.

CS-1, who has known Smith for approximately six years, primarily distributes literature for Smith’s campaign and worked on Smith’s unsuccessful 2010 campaign for Cook County Commissioner.

CS-1 told agents that almost immediately following Smith’s appointment as a state representative,
grant, which would be used to pay CS-1 for his/her campaign work. In turn, Smith would take a “fee” for approving the grant, but CS-1 declined the offer.

CS-1 further told agents that since his appointment Smith has talked about his need for assistance in campaign fund-raising, and told CS-1 last fall that he wanted donations in the range of $5,000 to $7,000.

CS-1 said Smith stated that he was willing to accommodate donors’ requests so long as they were reasonable.

Acting in coordination with law enforcement, CS-1 met with Smith in December 2011 and told Smith that CS-1 knew a woman who was the owner and a silent partner in a local daycare center, who might be willing to contribute to Smith’s campaign.

CS-1 told Smith that the daycare needed repairs and the owner might be looking for a state grant.

According to CS-1, Smith said he would help the daycare owner with obtaining a state grant in return for a $5,000 political contribution. Later, Smith told CS-1 that if the daycare owner was “legitimate,” she could come up with a $7,000 contribution.

Derick Smith is being opposed by Tom Swiss, the former Executive Director of the Chicago Republican Party, and Vetress Boyce. There is no Republican in the contest.

The complaint affidavit states that the daycare owner was, in fact, fictional, and the daycare center, while a real business, was not applying for a state grant, nor was it seeking to bribe Smith. The Capital Development Board administers an Early Childhood Construction Grant program, which provides funds to assist early childhood centers with the renovation and expansion of their facilities.

The complaint alleges that during multiple consensually recorded in-person meetings and telephone calls since Jan. 24, 2012, Smith agreed to write a letter of support for the purported grant application in exchange for a $7,000 bribe.

On Jan. 26, Smith and CS-1 toured the daycare facility and Smith was given information about its purported expansion plans.
Throughout February, Smith and CS-1 had multiple conversations in which CS-1 told Smith that the daycare was applying for an Early Childhood Construction Grant, and confirming that Smith would provide a letter of support in exchange for the daycare owner’s payment of $7,000.

On Feb. 28, Smith directed CS-1 to have the daycare owner draft a letter for Smith to sign, adding that his office would fix it with the correct language.

Later that day, law enforcement sent a draft letter of support to Smith’s office via email. On Feb. 29, a campaign worker in Smith’s office requested additional information to include in the letter, and after receiving a second draft from law enforcement, replied that it would be ready the next day.

On March 2, CS-1 retrieved the letter, which was written on Smith’s official letterhead and was addressed to the Illinois Capital Development Board.. The letter stated in part:

“As a State Representative for the West Humboldt Park neighborhood, I support [Daycare Owner’s purported organization] in their application for a $50,000 Early Childhood Construction Grant from the Illinois Capital Development Board.”

Between March 2 and March 8, Smith and CS-1 discussed how Smith wanted to receive the $7,000 from the daycare owner, and Smith rejected payment by cashier’s check because he didn’t want any trace of the money. Ultimately, Smith allegedly told CS-1 that he wanted the $7,000 in cash, and agreed to give CS-1 $2,000 for arranging the deal.
J
ust before 3 p.m. on Saturday (March 10), CS-1 met with Smith in Smith’s vehicle and CS-1 counted out the $7,000 – all in $100 bills – for Smith during their recorded meeting.

The next day, Smith called CS-1 and told CS-1 to meet him in his car in an alley behind CS-1′s residence, and according to CS-1, Smith gave CS-1 $1,000 in cash, consisting of $20 and $50 bills, which CS-1 gave to agents.

In a subsequent phone call on Sunday, Smith said he would pay CS-1 the remaining $1,000 later by check.

The bribery charge carries a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The government is being represented by Assistant U.S. Attorney Greg Deis.

The public is reminded that 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.

Mayor Richard Daley caved this week on meting out a mere 3-year ban on doing business with the City of Chicago for vendor felon James Duff.

“Just a day earlier, city officials had said that a permanent ban for James Duff, the former head of Windy City Maintenance, and two associates was not allowed under city rules,” the Chicago Tribune reported.

Want some background?

As a result of Jim Thompson’s going after politicians as United States Attorney, a Chicago Republican state representative named Ron Stearney introduced a really interesting bill in 1977.

He introduced it during Thompson’s first year in office because some of his friends had been convicted of taking bribes. Two others, State Reps. Louis Capuzi and John Wall, were also on trial but both eventually beat their charges in the cement weight case. For the details, read this article by Mike Lawrence.

Stearney wanted to get even. He introduced a bill that would forbid anyone or his company who had been convicted of giving an Illinois state official of employee a bribe from ever doing business with the state again.

He was aiming at Lester Crown and his Material Service Company, the giant gravel and concrete company, a company with major holdings in McHenry County, incidentally. One of its employees, Carney Gilkerson, beat me for precinct committeeman in Algonquin Township precinct 13 in 1968 when my 1966 McHenry County Treasurer election recount lawyer Stan Narusis decided to move back to Southern Illinois and I tried to replace him.

Stearney’s bill was introduced back in the time when I had time to read all the bills descriptions in the Legislative Digest.

When I found it, I asked him what he wanted to do. He told me he wanted to stop Lester Crown’s Material Service from doing business with the state ever again.

“Well, this won’t do that,” I told him.

Pretty audacious of me, I guess, because he was a lawyer. (I still find a Ronald A. Stearney listed on the Attorney’s Registration and Disciplinary Commission’s web site. It looks like his son has joined the family business.)

I pointed out that Lester Crown of Material Service fame was an unindicted co-conspirator. He had been given immunity from prosecution, much as many of the witnesses in Tony Rezko’s trial. Material Service had been given corporate immunity. I believe that is the first time in the nation’s history such sweeping immunity had been granted.

Since Stearney’s original language would have required that one or the other be found guilty of bribing an Illinois official, the bill would simply not accomplish what he wished.

I suggested an amendment to which he agreed.

We added that the lifetime prohibition would apply to those who admitted under oath that they had bribed a public official, as well as those who were convicted of the crime.

This bill had the good government types behind it, as well as the friends of those less savory legislators who had been convicted in the legislative bribery case.

When the bill came to the floor it slid through like a greased pig slipping out of a medieval peasant’s arms.

Illinois State Senators were defendants in the cement weight truck trial, too. Needless to say, it passed the senate.

I had forgotten about the bill until I got a call from Basil Talbott, the political editor of the Chicago Sun-Times. It was fall, right before the deadline for then-Governor Jim Thompson to sign the bill.

Talbott decided to give Thompson an incentive to sign the bill and wrote a story whose headline covered the top of one of the inside pages.

Thompson signed the bill.

The first to be caught in the trap was Secretary of State Alan Dixon’s license plate maker, a firm in Arkansas, I think. The first sued when it couldn’t get the contract.

The appellate court agreed with the firm and I tried to craft language to meet the decision’s objection. It didn’t pass.

The bill finally was decided upon by the Illinois Supreme Court and, guess what?

The court ruled that banning vendors for life was OK.

The opinion was written by a justice from Bloomington.

So, state government can ban a crook from doing business with the State of Illinois forever.

I guess Chicago can, too.

I have never had a bill I played a role in held unconstitutional. Two have specifically been held constitutional. This was one of them.

But, Material Service is still doing business with the State of Illinois.

Find out ”What gives?” in a later story.

Perhaps also of interest would be the Mike Royko column about a resolution I introduced to name a Route 62 weight station after Lester Crown. It’s in the linked article.

Mayor Richard Daley caved this week on meting out a mere 3-year ban on doing business with the City of Chicago for vendor felon James Duff.

“Just a day earlier, city officials had said that a permanent ban for James Duff, the former head of Windy City Maintenance, and two associates was not allowed under city rules,” the Chicago Tribune reported.

Want some background?

As a result of Jim Thompson’s going after politicians as United States Attorney, a Chicago Republican state representative named Ron Stearney introduced a really interesting bill in 1977.

He introduced it during Thompson’s first year in office because some of his friends had been convicted of taking bribes. Two others, State Reps. Louis Capuzi and John Wall, were also on trial but both eventually beat their charges in the cement weight case. For the details, read this article by Mike Lawrence.

Stearney wanted to get even. He introduced a bill that would forbid anyone or his company who had been convicted of giving an Illinois state official of employee a bribe from ever doing business with the state again.

He was aiming at Lester Crown and his Material Service Company, the giant gravel and concrete company, a company with major holdings in McHenry County, incidentally. One of its employees, Carney Gilkerson, beat me for precinct committeeman in Algonquin Township precinct 13 in 1968 when my 1966 McHenry County Treasurer election recount lawyer Stan Narusis decided to move back to Southern Illinois and I tried to replace him.

Stearney’s bill was introduced back in the time when I had time to read all the bills descriptions in the Legislative Digest.

When I found it, I asked him what he wanted to do. He told me he wanted to stop Lester Crown’s Material Service from doing business with the state ever again.

“Well, this won’t do that,” I told him.

Pretty audacious of me, I guess, because he was a lawyer. (I still find a Ronald A. Stearney listed on the Attorney’s Registration and Disciplinary Commission’s web site. It looks like his son has joined the family business.)

I pointed out that Lester Crown of Material Service fame was an unindicted co-conspirator. He had been given immunity from prosecution, much as many of the witnesses in Tony Rezko’s trial. Material Service had been given corporate immunity. I believe that is the first time in the nation’s history such sweeping immunity had been granted.

Since Stearney’s original language would have required that one or the other be found guilty of bribing an Illinois official, the bill would simply not accomplish what he wished.

I suggested an amendment to which he agreed.

We added that the lifetime prohibition would apply to those who admitted under oath that they had bribed a public official, as well as those who were convicted of the crime.

This bill had the good government types behind it, as well as the friends of those less savory legislators who had been convicted in the legislative bribery case.

When the bill came to the floor it slid through like a greased pig slipping out of a medieval peasant’s arms.

Illinois State Senators were defendants in the cement weight truck trial, too. Needless to say, it passed the senate.

I had forgotten about the bill until I got a call from Basil Talbott, the political editor of the Chicago Sun-Times. It was fall, right before the deadline for then-Governor Jim Thompson to sign the bill.

Talbott decided to give Thompson an incentive to sign the bill and wrote a story whose headline covered the top of one of the inside pages.

Thompson signed the bill.

The first to be caught in the trap was Secretary of State Alan Dixon’s license plate maker, a firm in Arkansas, I think. The first sued when it couldn’t get the contract.

The appellate court agreed with the firm and I tried to craft language to meet the decision’s objection. It didn’t pass.

The bill finally was decided upon by the Illinois Supreme Court and, guess what?

The court ruled that banning vendors for life was OK.

The opinion was written by a justice from Bloomington.

So, state government can ban a crook from doing business with the State of Illinois forever.

I guess Chicago can, too.

I have never had a bill I played a role in held unconstitutional. Two have specifically been held constitutional. This was one of them.

But, Material Service is still doing business with the State of Illinois.

Find out ”What gives?” in a later story.

Perhaps also of interest would be the Mike Royko column about a resolution I introduced to name a Route 62 weight station after Lester Crown. It’s in the linked article.

Every think that U.S. Attorney doesn’t get out of Chicago enough?

Don’t we suburbanites have crime that deserves prosecution?

Apparently there was enough in the Bolingbrook public works department to interest the FBI and United States Attorney Patrick Fitzgerald.

Here’s the press release about an alleged $400,000 billing scam issued this afternoon:

TWO FORMER BOLINGBROOK OFFICIALS AND FIVE SMALL BUSINESS OWNERS CHARGED IN ALLEGED $400,000 FRAUDULENT BILLING SCHEME

CHICAGO – Two former Public Works Department officials in the Village of Bolingbrook and five owners of four small businesses were charged today with allegedly engaging in a $400,000 fraud scheme in which the public employees obtained cash, gifts and services in return for approving false and inflated invoices to the village from the businesses.

The seven defendants were charged in a 12-count criminal information charging fraud and federal income tax offenses, 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 the Federal Bureau of Investigation; and Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division.

The charges resulted from an investigation that was begun by the Bolingbrook Police Department and the Will County State’s Attorney’s Office, both of which later brought the investigation to the federal agencies, the federal officials said.

The two former village officials served consecutively as superintendent of the Building and Fleet Division in Bolingbrook’s Public Works Department. Donald Ralls, 62, of Aurora, was superintendent for approximately a decade until he retired in 2001, and John Schwab, 43, of Sandwich, was acting superintendent or superintendent from 2001 to March 2006. Both men had authority in their official capacities to approve invoices for purchases made by the Building and Fleet Division for payment by the village.

According to the charges, between the late 1990s and April 2006, the defendants defrauded Bolingbrook of money and property and of Ralls’ and Schwab’s honest services. Ralls and Schwab allegedly asked certain business owners who did business with the village to give them items, money, gifts and services for their personal benefit.

The business owners acceded to the requests and, at times, either included these personal items, added fictitious purchases or inflated prices in invoices they submitted for payment by the village, which allowed them to recoup the cost of the corrupt benefits and also to gain additional, unearned money for themselves and their businesses, the charges state. Ralls and Schwab allegedly knew that they were approving false and inflated invoices from the businesses.

Schwab was charged with two counts of mail fraud and three counts of filing false federal income tax returns for allegedly under-reporting his total income in 2003, 2004 and 2005. Ralls was charged with two counts of filing false tax returns for allegedly under-reporting his income in 2000 and 2001.

Alan Guzzino, 59, of Bolingbrook, at the time an owner of South Harlem Auto Supply, Inc., which sold parts and supplies for trucks and autos, was charged with one count of mail fraud. He allegedly made personal purchases for Ralls and Schwab; allowed them to use his business credit card for personal purchases, including personal vacations and airline tickets; provided them with merchandise from his business; and occasionally gave each of them cash.

Guzzino also allegedly kept about 25 to 35 percent of the funds he received from false and inflated invoices paid by Bolingbrook and put about 65 to 75 percent of the proceeds in a “line of credit” for Ralls and Schwab, which Guzzino used to provide them with cash and other benefits.

David Donaldson, 54, of Hanover Park, at the time owner of Merchant Midwest, Inc., which distributed cleaning supplies and other janitorial and paper products, was charged with one count of mail fraud. He allegedly gave Ralls and Schwab merchandise for their personal use; made personal purchases for Ralls; and paid cash to Schwab. He allegedly kept about 60 percent of the funds he received from fraudulent village payments for himself.

Gary Lindesmith, 48, of Lowell, Ind., at the time owner of Lindco Equipment Sales, Inc., which sold equipment for trucks, was charged with one count of wire fraud. He allegedly gave Schwab merchandise for his personal use and paid for meals and entertainment for Schwab. He allegedly obtained fraudulent payments from Bolingbrook based on false and inflated invoices he created to cover the cost of the merchandise and entertainment, and also to cover the cost of financial contributions to political campaigns and charities that were solicited by village officials.

Murteza Gazaferi, 37, of Lemont, and Ahmet Rusid, 57, of Morris, at the time co-owners of Auto Tech & Tire Complete Auto Service, which repaired autos and sold auto parts, were each charged with two counts of mail fraud. They allegedly performed automotive maintenance service at no cost for Schwab and made cash payments to him. They allegedly kept about 80 percent of the fraudulent payments they received from the village for themselves.

The charges also seek forfeiture of $404,000 from six defendants, excluding Ralls. All seven defendants will be ordered to appear later for arraignment in U.S. District Court.

The government is being represented by Assistant U.S. Attorneys Laurie Barsella and Faris Hussein.

If convicted, each count of mail or wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The tax fraud counts against Schwab and Ralls each carry a maximum penalty of 3 years in prison and $250,000 fine. The Court may impose an alternative maximum fine of twice the gross loss or gross gain, whichever is greater. Restitution is mandatory. The Court, however, would determine the appropriate sentence to be imposed under the advisory United States Sentencing Guidelines.

The public is reminded that an information contains only allegations 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.

Every think that U.S. Attorney doesn’t get out of Chicago enough?

Don’t we suburbanites have crime that deserves prosecution?

Apparently there was enough in the Bolingbrook public works department to interest the FBI and United States Attorney Patrick Fitzgerald.

Here’s the press release about an alleged $400,000 billing scam issued this afternoon:

TWO FORMER BOLINGBROOK OFFICIALS AND FIVE SMALL BUSINESS OWNERS CHARGED IN ALLEGED $400,000 FRAUDULENT BILLING SCHEME

CHICAGO – Two former Public Works Department officials in the Village of Bolingbrook and five owners of four small businesses were charged today with allegedly engaging in a $400,000 fraud scheme in which the public employees obtained cash, gifts and services in return for approving false and inflated invoices to the village from the businesses.

The seven defendants were charged in a 12-count criminal information charging fraud and federal income tax offenses, 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 the Federal Bureau of Investigation; and Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division.

The charges resulted from an investigation that was begun by the Bolingbrook Police Department and the Will County State’s Attorney’s Office, both of which later brought the investigation to the federal agencies, the federal officials said.

The two former village officials served consecutively as superintendent of the Building and Fleet Division in Bolingbrook’s Public Works Department. Donald Ralls, 62, of Aurora, was superintendent for approximately a decade until he retired in 2001, and John Schwab, 43, of Sandwich, was acting superintendent or superintendent from 2001 to March 2006. Both men had authority in their official capacities to approve invoices for purchases made by the Building and Fleet Division for payment by the village.

According to the charges, between the late 1990s and April 2006, the defendants defrauded Bolingbrook of money and property and of Ralls’ and Schwab’s honest services. Ralls and Schwab allegedly asked certain business owners who did business with the village to give them items, money, gifts and services for their personal benefit.

The business owners acceded to the requests and, at times, either included these personal items, added fictitious purchases or inflated prices in invoices they submitted for payment by the village, which allowed them to recoup the cost of the corrupt benefits and also to gain additional, unearned money for themselves and their businesses, the charges state. Ralls and Schwab allegedly knew that they were approving false and inflated invoices from the businesses.

Schwab was charged with two counts of mail fraud and three counts of filing false federal income tax returns for allegedly under-reporting his total income in 2003, 2004 and 2005. Ralls was charged with two counts of filing false tax returns for allegedly under-reporting his income in 2000 and 2001.

Alan Guzzino, 59, of Bolingbrook, at the time an owner of South Harlem Auto Supply, Inc., which sold parts and supplies for trucks and autos, was charged with one count of mail fraud. He allegedly made personal purchases for Ralls and Schwab; allowed them to use his business credit card for personal purchases, including personal vacations and airline tickets; provided them with merchandise from his business; and occasionally gave each of them cash.

Guzzino also allegedly kept about 25 to 35 percent of the funds he received from false and inflated invoices paid by Bolingbrook and put about 65 to 75 percent of the proceeds in a “line of credit” for Ralls and Schwab, which Guzzino used to provide them with cash and other benefits.

David Donaldson, 54, of Hanover Park, at the time owner of Merchant Midwest, Inc., which distributed cleaning supplies and other janitorial and paper products, was charged with one count of mail fraud. He allegedly gave Ralls and Schwab merchandise for their personal use; made personal purchases for Ralls; and paid cash to Schwab. He allegedly kept about 60 percent of the funds he received from fraudulent village payments for himself.

Gary Lindesmith, 48, of Lowell, Ind., at the time owner of Lindco Equipment Sales, Inc., which sold equipment for trucks, was charged with one count of wire fraud. He allegedly gave Schwab merchandise for his personal use and paid for meals and entertainment for Schwab. He allegedly obtained fraudulent payments from Bolingbrook based on false and inflated invoices he created to cover the cost of the merchandise and entertainment, and also to cover the cost of financial contributions to political campaigns and charities that were solicited by village officials.

Murteza Gazaferi, 37, of Lemont, and Ahmet Rusid, 57, of Morris, at the time co-owners of Auto Tech & Tire Complete Auto Service, which repaired autos and sold auto parts, were each charged with two counts of mail fraud. They allegedly performed automotive maintenance service at no cost for Schwab and made cash payments to him. They allegedly kept about 80 percent of the fraudulent payments they received from the village for themselves.

The charges also seek forfeiture of $404,000 from six defendants, excluding Ralls. All seven defendants will be ordered to appear later for arraignment in U.S. District Court.

The government is being represented by Assistant U.S. Attorneys Laurie Barsella and Faris Hussein.

If convicted, each count of mail or wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The tax fraud counts against Schwab and Ralls each carry a maximum penalty of 3 years in prison and $250,000 fine. The Court may impose an alternative maximum fine of twice the gross loss or gross gain, whichever is greater. Restitution is mandatory. The Court, however, would determine the appropriate sentence to be imposed under the advisory United States Sentencing Guidelines.

The public is reminded that an information contains only allegations 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.