McHenry County Blog

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

BOSS OF FRAUDULENT IDENTIFICATION DOCUMENT RING BASED IN CHICAGO’S CHINATOWN SENTENCED TO 81 MONTHS IN FEDERAL PRISON

CHICAGO — The leader of an identification document fraud ring that was based in Chicago’s Chinatown neighborhood for more than 10 years was sentenced today to nearly seven years in federal prison.

The defendant, Jun Yun Zhang, was the boss of an extensive conspiracy and enjoyed most of the profit from an illegal business that provided more than 7,000 customers with fraudulent documents and assisted thousands of them obtain genuine identification cards and driver’s licenses, in alias identities, from the Illinois Secretary of State’s office.

As part of the illegal business, Zhang sold customers a genuine Social Security card (issued to a third party) and a matching manufactured Chinese passport.

Zhang and his workers also paid more than 200 bribes to Secretary of State employees to pass customers, who were often unqualified, on the road test for an Illinois driver’s license, while teaching other customers how to cheat on the state’s written driving test.

Four former Secretary of State employees were among 35 defendants who were charged federally as a result of Operation Paper Mountain, an undercover investigation by the FBI and the Chicago Police Department, which became public in February 2009 when Zhang and others were arrested.

Zhang, 44, a Chinese national who has been in custody since 2009, previously pleaded guilty to passport fraud and aggravated identity theft and was sentenced today to 81 months in prison by U.S. District Judge John Darrah. The judge imposed a mandatory two-year sentence on the identity theft count, which must be served consecutively to the 57 months he ordered on the fraud count.

Zhang’s brother, Jun Yue Zhang, 52, was sentenced yesterday to 61 months in prison by Judge Darrah.

The Zhang brothers and 13 other defendants, including other relatives, were charged together in one case before Judge Darrah, with 13 of the 15 pleading guilty.

The remaining two defendants are fugitives.

One co-defendant, James Howell, a former employee at the Secretary of State licensing facility in Bridgeview, was sentenced previously to two years in prison after he pleaded guilty and cooperated in the investigation.

Twenty additional defendants were charged later in related cases. Of the 35 total defendants, 21 have pleaded guilty, four are fugitives, and charges against 10 others remain pending.

During the decade-long conspiracy, thousands of Illinois driver’s licenses and identification cards were issued to individuals using Social Security account numbers with the 586 prefix, which was unusual because it is assigned to individuals in American Samoa, Guam, the Phillippines and Saipan.

In several decades before 2000, the state issued only several hundred driver’s licenses and identification cards to individuals using the 586 Social Security account prefix.

The spike was due, in large part, to the illegal document mill operated by Jun Yun Zhang and others.

Jun Yun Zhang and other manufacturers, brokers and couriers sold fraudulent “identity sets” – ranging in price from $1,200 to $3,500 per set – to predominantly Chinese, Korean and Indonesian nationals who were smuggled into or were in the United States illegally.

The false documents included a counterfeit or altered authentic Chinese passport that was matched to a legitimate Social Security number usually beginning with 586, many of which were originally obtained legitimately by Chinese nationals working temporarily in Saipan.

While in Saipan or after these workers returned to China, the Social Security cards were collected and transported to the United States, where they wound up in the possession of the defendants and others.

Using the bogus passports containing customers’ actual photos, coupled with a legitimate Social Security number and fabricated proof of residency such as a utility bill, the defendants often accompanied customers to various Secretary of State facilities in the Chicago area and assisted them in fraudulently obtaining an authentic Illinois driver’s license or identification card that matched the alias identity on the passport and Social Security card.

After obtaining a set of fraudulent documents, customers who were in the country illegally could use them to obtain employment, housing, utility services, credit cards and bank accounts.

Today’s sentence was announced by 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 FBI.

The Chicago Police Department was instrumental in the investigation, which was also assisted by the Illinois Secretary of State Inspector General and the Cook County State’s Attorney’s Office.

The government is being represented by Assistant U.S. Attorneys Steven J. Dollear, Matthew Madden and Yasmin Best.

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

U.S. JURY CONVICTS STREET GANG LEADER OF FEDERAL DRUG CHARGES

CHICAGO — The leader of a west side drug-trafficking conspiracy operated by members and associates of the Traveling Vice Lords street gang was convicted by a jury yesterday of federal narcotics charges following a trial in U.S. District Court.

Jason Austin, 29, of Chicago, was found guilty of conspiracy to possess and distribute heroin and five counts of distributing crack cocaine after several hours of deliberation late Wednesday and yesterday. The trial began Feb. 14.

Austin, who has been in federal custody since November 2010, faces a maximum penalty of 30 years in prison on each count. U.S. District Judge Joan Lefkow set sentencing for June 29.

Austin and 30 other members and associates of the Traveling Vice Lords were arrested in November 2010 as part of Operation Blue Knight, which focused on around-the-clock retail street sales of crack cocaine and heroin in the area of Kedzie Avenue and Ohio Street, known as “KO.”

Significant amounts of crack cocaine and heroin were seized during the two-year investigation, which the Chicago Police Department’s Organized Crime Division began in 2008 and the Federal Bureau of Investigation joined several months later.

Today’s verdict was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Garry McCarthy, Superintendent of the Chicago Police Department; and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was conducted under the umbrella of U.S. Organized Crime Drug Enforcement Task Force (OCDETF), and with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).

The evidence at trial showed that Austin, also known as “J Rock,” conspired with others to distribute crack cocaine, known as “rocks,” and heroin, known as “blows,” to customers via hand-to-hand transactions in the “KO.”

The heroin, named “Blue Magic,” alone accounted for as much as $8,000 a day in sales, between approximately 6 a.m. and 11 p.m., seven days a week.

During the investigation, law enforcement officers repeatedly surveilled the conduct of co-conspirators at KO. Surveillance, often video recorded, observed hand-to-hand drug transactions, controlled purchases of narcotics by undercover Chicago police officers, and controlled purchases of narcotics by confidential sources.

The government is being represented by Assistant United States Attorneys Maribel Fernandez-Harvath and Matthew Madden.

= = = = =

See also “Big Drug Dealer Take-Down“

The employees aren’t paid that much.

People really need drivers’ licenses.

Some people have a hard time getting one.

Is that a recipe for corruption or what?

Today the U.S. Attorney’s Office sent the following  press release about corruption in the Illinois Secretary of State’s Office.

No, it’s not like when Democrat Paul Powell and Republican George Ryan were in office.  No checks made out to Jesse White were found in his desk, as was the case with checks made out to Paul Powell when he died.

Here are the details:

STATE ROAD TEST EXAMINERS INDICTED FOR ALLEGEDLY ACCEPTING CASH BRIBES TO GUARANTEE PASSING TEST

CHICAGO — Two former road test examiners for the Illinois Secretary of State were indicted for allegedly accepting cash bribes to pass customers who were unqualified or never took the road test, federal law enforcement officials announced today.

The charges stem from an investigation that was unveiled in 2009 when members and associates of an alleged crime ring were accused of selling fraudulent identification documents in Chinatown on the city’s near south side.

The new defendants allegedly conspired between 2005 and 2007 with several of the defendants charged previously to accept cash bribes in return for guaranteeing that an unspecified number of customers would pass the road test, enabling them to obtain an Illinois driver’s license.

One defendant, Christopher Wardlaw, 36, was arrested today, while the other defendant, Alanda Jackson, 31, both of Chicago, will be ordered to appear for arraignment at a later date in U.S. District Court.

Both were road test examiners at the Secretary of State’s Chicago South Facility, located at 9901 South Dr. Martin Luther King Dr.

They were charged with one count of conspiracy to commit extortion in an indictment that was returned by a federal grand jury last Thursday and unsealed today following Wardlaw’s arrest.

Wardlaw was released on his own recognizance after appearing this morning before U.S. Magistrate Judge Jeffery T. Gilbert.

The indictment seeks forfeiture of $40,000, representing alleged illegal proceeds.

The charges were announced by 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 FBI; Chicago Police Superintendent Garry F. McCarthy; and Illinois Secretary of State Inspector General James B. Burns.  The charges are part of Operation Paper Mountain, which has resulted in federal charges against approximately three dozen defendants since 2009.

According to the indictment, Wardlaw and Jackson conspired with another former SOS employee, Timothy Johnson, as well as with Jun Yun Zhang, Lili Liu, Tiansheng Zhang, and others, who were indicted in 2009.

Each of those defendants has pleaded guilty to related federal charges.

The Zhangs and other defendants routinely escorted customers to Secretary of State driver’s license facilities to fraudulently obtain state identification cards or driver’s licenses, typically using counterfeit or altered authentic Chinese passports and legitimate social security account numbers with the prefix “586” that were assigned to other people.  The 586 prefix is unusual because it is assigned to individuals in the Northern Mariana Islands, including Saipan, Guam and American Samoa.

When co-conspirators accompanied customers to the Chicago South facility, Wardlaw and Jackson allegedly guaranteed passing results on the road test either by serving as the examiner and passing  the customer even if he or she failed the road test, or by obtaining the customer’s road test paperwork from a co-conspirator and indicating that the customer passed when, in fact, the customer never took the test.

The government is being represented by Assistant U.S. Attorneys Matthew Madden, Steven J. Dollear and Yasmin Best.

Extortion conspiracy carries 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 public is reminded that an indictment 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.

Those who fight illegal drugs had a big day. Here is the most recent press release from the U.S. Attorney’s Office in Chicago.

NEARLY 100 ALLEGED TRAVELING VICE LORDS STREET GANG MEMBERS AND ASSOCIATES FACING STATE OR FEDERAL NARCOTICS CHARGES

31 federal and 65 state defendants accused in west side crack cocaine and heroin sales

CHICAGO — Around-the-clock retail street sales of crack cocaine and heroin, averaging between $3,000 and $6,000 per day, seven days a week, were conducted by a core group of several alleged members of the Traveling Vice Lords street gang and their associates on the city’s west side, according to new federal and state charges.

The daily routines of these individuals and dozens of others ended today when hundreds of Chicago Police officers, FBI agents and deputy U.S. Marshals began serving arrest warrants on nearly 100 state and federal defendants and conducting searches, ending a two-year investigation.

Significant multi-ounce quantities of crack cocaine and heroin were seized during the investigation.

The Chicago Police Department’s Organized Crime Division began investigating an alleged drug-trafficking organization led by members of the TVL street gang that operated in the area of Kedzie Avenue and Ohio Street, known as “KO,” in August 2008.

The FBI joined the investigation three months later.

The federal defendants arrested today were expected to begin appearing at 1:30 this afternoon before Magistrate Judge Young Kim in Courtroom 1944D in U.S. District Court, and will continue through the afternoon and tomorrow morning.

“For the fifth time in the last four months, local, state and federal law enforcement agencies are joining forces to announce significant arrests involving street gang members, their associates and drug-trafficking.

“These cases, which we believe weaken the grip of gangs and drugs in our community, happen because dedicated police officers and federal agents, along with state and federal prosecutors, work together to attack these problems,”

said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.

Mr. Fitzgerald announced the charges together with

• Anita Alvarez, Cook County State’s Attorney;
• Jody P. Weis, Superintendent of the Chicago Police Department; and
• Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

The U.S. Marshals Service assisted with the arrests.

The investigation was conducted under the umbrella of U.S. Organized Crime Drug Enforcement Task Force (OCDETF), and with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA). The investigation is continuing.

“We will continue to combine our law enforcement resources in order to maximize our impact in targeting and eliminating this type of organized drug trafficking that brings so much havoc and unrest to our communities,” Ms. Alvarez said.

Mr. Grant said: “The charges announced today were the result of a joint FBI/Chicago Police investigation that targeted drug-dealing in the North Lawndale area of Chicago. Community involvement was critical to the success of this investigation and demonstrates once again the importance of citizen cooperation in aiding law enforcement.”

“The Chicago Police Department is committed to working with our partners to rid our communities of gangs, guns and drugs. Focused, collaborative investigations such as this send a clear message to gang members and their associates that their illegal activity will not be tolerated,” Superintendent Weis said.

The investigation, code-named Operation Blue Knight, is part of a sustained, coordinated effort by local, state and federal law enforcement agencies to disrupt Chicago’s highly-organized drug-trafficking organizations. The investigation employed wiretaps, cooperating witnesses, undercover surveillance and undercover drug transactions, resulting in seizures of evidence.

A total of eight federal complaints filed yesterday and unsealed today charged a total of 31 federal defendants in connection with this investigation.

One complaint alleges that several TVL members and their associates, led by brothers,

• Jason Austin, also known as “J Rock,” and
• Charles Austin, aka “Bubba,” both alleged TVL members,

conspired to distribute

• crack cocaine, known as “rocks,” and
• heroin, known as “blows,”

customers via hand-to-hand transactions in the “KO.”

During the investigation, law enforcement officers repeatedly surveilled the conduct of alleged co-conspirators at KO.

Surveillance, often video recorded, observed hand-to-hand drug transactions, controlled purchases of narcotics by undercover Chicago police officers, and controlled purchases of narcotics by confidential sources.

According to an 89-page complaint affidavit by a Chicago police officer assigned to an FBI task force, the heroin was named “Blue Magic,” and when the quality of the “Blue Magic” was good, customers came from as far away as Elgin and parts of Iowa to purchase the heroin.

Members of the KO drug-trafficking organization obtain, possess, and use firearms to both protect and further advance the drug operation, the charges allege, adding that the TVL members have sold drugs at KO for decades.

In the fall of 2008, the KO organization temporarily moved to Chicago and St. Louis avenues due to a strong police presence in the KO area.

When the move occurred, the organization initially conducted a “pass out” of heroin, and later resumed sales, but sold only about half the amount that was sold previously at the KO, which often ranged from 60 to 120 grams of heroin per day.

The drug operation at Chicago and St. Louis avenues allegedly was managed by Kevin Terry, Jr.

In the Fall of 2009, the heroin operation temporarily relocated to Ferdinand Street and Hamlin Avenue, which he also ran, due to J. Austin’s failure to successfully keep the heroin operation running at KO, according to the charges.

The KO drug operation allegedly relied on various defendants to store packaged drugs in common areas and residences at KO, such as 520 N. Kedzie and the liquor store parking lot located at 501 N. Kedzie.

“Runners” distributed the packaged drugs to “managers,” who supervised the drug operation at KO.

The managers distributed the drugs to “pack workers,” who worked shifts selling the drugs to customers and those same managers were also responsible for collecting the proceeds of the drug sales at KO.

The customers paid the “pack workers” and, in exchange for cash, the “pack workers” gave the customers narcotics.

After the narcotics were sold, the workers provided the cash to the “runners” and/or “managers” of the drug spot, according to the complaint affidavit.

The Cook County State’s Attorney’s Office obtained arrest warrants for 65 defendants, including four juveniles, on narcotics possession and delivery charges, including more than 20 Class X felony narcotics charges.

The federal defendants were charged with various narcotics distribution counts.

All but two defendants (Bell and Bonds) face penalties ranging between a mandatory minimum of five years in prison to a maximum of life in prison and fines ranging between $2 million and $4 million, while Bell and Bonds each face a maximum of 20 years in prison and $25,000 fine. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.

The government is being represented by Assistant United States Attorneys Maribel Fernandez-Harvath, Matthew Madden, Marny Zimmer and Christopher McFadden.

The public is reminded that complaints 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.

A list of the federal defendants follows (with best known ages, and all reside in Chicago unless noted otherwise):

CASE NO. DEFENDANT ALIAS AGE TOWN

10 CR 971

• Jason Austin J Rock 28
• Charles Austin Bubba 32
• Milton Riley Milt 36 Bensenville
• Emanuel Young Miko 32
• Danielle Duncan 28
• Avery Irby Pete 35
• Kevin Terry, Jr. Little Kurt 21
• Jeffrey Scott Scotty 24
• Kenneth Terry Terry 37
• Juanica Blassingame 48
• Charles Ward Charlie 63
• Robert Ewing 59
• Antoine Jones Black 31

10 CR 962

• Kevin Terry Sr., Captain Kurt / Kurt 46
• Lionel Brown, June / Shorty 29
• Derrick Lewis, Colby / D.C. 45

10 CR 961

• Vernon Chapman C-Dog 31

10 CR 967

• Corey Griffin Fat Rat unknown
• Edmund Forrest Furb 28
• Timothy Allison Shaw 30
• Calvin Williams Boski 22

10 CR 964

• Kenny Bell KB 30

10 CR 963

• Steven Collins 28
• Stephen Britton Choo 25
• Christopher Bonds Big Bro / Foo Nuts 20

10 CR 966

• Kevin White Big White 48 Oak Park
• Jalal Spearman Jay / J 33 Bellwood
• Maurize Cossom Big Lord 26
• Tommy Berry 33 Bellwood

10 CR 965

• Sharona Crawford Macaroni / Roni 39
• Dion Thomas 30