McKenzie J. Carson is Charged in a Federal Criminal Complaint in the U.S. District Court in Chicago

January 4, 2012

The Federal Bureau of Investigation (FBI) on January 3, 2012 released the following:

“Bolingbrook Man Arrested for Sex Trafficking of Minor

A 39-year-old Bolingbrook man was arrested earlier today on charges he recruited and forced a minor female to engage in prostitution. The arrest was announced by Robert D. Grant, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation (FBI), and Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.

MCKENZIE J. CARSON, also known as “Casino,” whose last known address was 200 Campbell Drive in the western suburb, was arrested early this morning at his residence by FBI special agents and local police, without incident. CARSON was charged in a criminal complaint filed last week in U.S. District Court in Chicago with one count of sexual trafficking of children by force, fraud, or coercion, which is a felony offense.

According to the complaint, CARSON has been actively recruiting young females, including minors under the age of 18, to work for him as prostitutes in and around the Chicago area since at least 2010. CARSON advertised their services over the Internet and used cellular telephones to schedule and book “dates” for the girls. CARSON is believed to have employed others to assist him with running his prostitution operation, driving the girls to motels, hotels, and other locations to meet with customers.

It is also alleged that CARSON used violence and threats of violence, including sexual assault, to force the women and young girls to work for him. One of the victims, a then-17-year-old female, was allegedly raped by CARSON and forced to perform oral sex the first time they met. Afterwards, CARSON then sent the victim out that same night to engage in prostitution.

A second victim, who was 20 years old at the time, claimed that she was beaten and raped by CARSON on numerous occasions, including once when she told CARSON that she no longer wanted to work for him.

CARSON appeared before Magistrate Judge Young B. Kim this afternoon, at which time he was formally charged. CARSON was ordered held without bond pending his next court appearance, which is scheduled for Friday at 1:30 p.m.. Until then, CARSON will be held at the Metropolitan Correctional Center (MCC) in Chicago. If convicted of the charge filed against him, CARSON faces a mandatory minimum sentence of 15 years’ incarceration to a maximum of life in prison and a fine of up to $250,000.

This case was investigated by a multi-agency task force, led by the Chicago FBI, and assisted by the Cook County Sheriff’s Department, the DuPage Metropolitan Enforcement Group, and the Bolingbrook, Channahon, Downers Grove, Joliet, Marseilles, Naperville, Oswego, Romeoville, Shorewood, and Westmont Police Departments.

The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


West Suburban Investment Adviser Charged with Allegedly Causing 10 Clients to Lose More Than $4.26 Million in Fraud Scheme

December 30, 2011

The Federal Bureau of Investigation (FBI) on December 29, 2011 released the following:

“CHICAGO—A west suburban investment adviser allegedly engaged in an investment fraud scheme that swindled the retirement savings of some elderly clients and, overall, caused about 10 clients to lose more than $4.26 million, federal law enforcement officials announced today. The defendant, Steven W. Salutric, was charged with one count of wire fraud in a criminal information filed today in U.S. District Court. Salutric allegedly diverted some of his clients’ funds to his personal business associates and to entities in which he had a financial interest, including restaurants, a movie production company, car dealerships, and real estate development projects, while using additional customer funds to make Ponzi-type payments to other clients.

Salutric, 53, of Carol Stream, was a founding principal of the former Results One Financial, LLC, a registered investment advisory firm located in Elmhurst, which had more than 1,000 clients and approximately $160 million in assets under management. Salutric managed the funds of approximately 100 clients, mostly individuals and small businesses. He will be arraigned at a later date in U.S. District Court. The charges were 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 Federal Bureau of Investigation. The U.S. Department of Labor’s Employee Benefits Security Administration and the Securities and Exchange Commission also assisted with the investigation.

According to the charges, Salutric schemed to defraud clients of Results One between December 2002 and January 2010 by fraudulently obtaining their funds that were held in customer accounts at Charles Schwab & Co, Inc., which served as the custodian of client assets. Salutric had discretionary authority to trade in the clients’ accounts, typically involving the relatively low-risk purchase and sale of mutual fund shares. Instead, Salutric fraudulently withdrew clients’ funds without their knowledge or permission, and he fraudulently placed clients’ money in high-risk alternative investments without their knowledge or permission, the charges allege.

Salutric allegedly fraudulently obtained more than $3 million from clients by preparing, forging clients’ signatures on, and faxing documents that falsely represented to Schwab that the clients wished to transfer funds from their Schwab accounts to bank accounts held by Salutric’s personal business associates and entities in which he had a financial interest. Salutric allegedly used at least a portion of the clients’ funds to make Ponzi-type deposits to other clients’ accounts to conceal and prolong the scheme.

In one instance, Salutric allegedly fraudulently transferred approximately $1 million from a single client to himself and various entities, including restaurants, a movie production company, car dealerships, and real estate development projects, in which he had a financial interest. In other instances, Salutric allegedly lulled his clients by making false assurances, including telling one victim that his funds were invested in a union pension plan yielding a 15 percent return, telling another that his funds were invested in AT&T bonds providing an eight percent return, and telling yet another that his funds were placed in a certificate of deposit, when he knew that he had diverted funds from each victim for his personal benefit. As a result of the scheme, about 10 clients suffered losses totaling at least $4,261,818, the charges allege.

The government is being represented by Assistant U.S. Attorney Tyler Murray.

Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. The court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the court must impose a reasonable sentence under sentencing statutes and the advisory United States Sentencing Guidelines.

The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which 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: http://www.StopFraud.gov.

An information 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.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Bobby Cruz Charged in an Eight-Count Federal Indictment Wednesday by a Federal Grand Jury in the Northern District of Illinois Alleging that he was Producing Child Pornography, Crossed State Lines to Engage in a Sexual Act with a Minor, Transporting Child Pornography, and Possessing Child Pornography

December 2, 2011
Bobby Cruz

U.S. Immigration and Customs Enforcement on December 1, 2011 released the following:

“Chicago-area man indicted for allegedly manufacturing child pornography, crossing state lines for sex with minor

CHICAGO – A local man who was arrested last month for allegedly transporting child pornography via computer, was indicted on new charges alleging that he manufactured child pornography involving at least three minor victims. The indictment was announced by Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois, and Gary J. Hartwig, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago.

Bobby Cruz, 32, of Des Plaines, Ill., was charged in an eight-count indictment Wednesday by a federal grand jury in the Northern District of Illinois. Cruz was charged with four counts of producing child pornography by enticing minors to engage in sexually explicit conduct, one count of crossing state lines to engage in a sexual act with a minor under 12, two counts of transporting child pornography, and one count of possessing child pornography.

Cruz was ordered to remain in federal custody without bond after his Nov. 1 arrest. He was initially charged with a single count of transporting child pornography after federal agents allegedly discovered illegal images on his home computer. A subsequent investigation, which resulted in the discovery of additional child victims, resulted in the new charges alleging molestation and production of child pornography.

While announcing the indictment, law enforcement officials provided the media with a photograph of Cruz in an effort to solicit information from the public pertaining to any suspicious contact that Cruz might have had with any unknown minor victims. Anyone with such information is encouraged to contact ICE HSI Special Agent Jennifer Sapper at 630-574-4941.

The Des Plaines Police Department and the Cook County State’s Attorney’s Office assisted in the investigation.

According to the four manufacturing counts, Cruz allegedly produced child pornography involving at three least minor victims between September 2007 and June 2009 in Des Plaines, Ill. and between March 2008 and June 2009 in Morris, Ill. The charges allege that in each of the four instances, Cruz persuaded, induced, and enticed a minor to engage in sexually explicit conduct. On Oct. 22, 2010, Cruz allegedly crossed state lines to molest a minor less than 12 years of age.

The remaining counts allege that Cruz transmitted and possessed child pornography between September and November 2011. The initial complaint against Cruz alleged that on Sept. 14 he sent an email to an undercover ICE agent with an attached zip file containing about 100 images of child pornography. The investigation began when agents learned that the same email account, allegedly identified later as belonging to Cruz, was used to trade hundreds of child pornography images with an unnamed individual in December 2010. ICE agents subsequently linked the email account to Cruz’s residence. On Nov. 1, agents executed a search warrant and seized a laptop computer, an external hard-drive, and other items allegedly containing numerous images and videos of alleged child pornography. The indictment seeks forfeiture of the computer equipment and other seized items.

Assistant U.S. Attorney Jennie Levin, Northern District of Illinois, is prosecuting this case.

Crossing state lines to engage in a sexual act with a minor under 12 carries a mandatory minimum sentence of 30 years and a maximum of life in prison. Each of the four counts of manufacturing child pornography carries a mandatory minimum of 15 years and a maximum of 30 years in prison. Transporting child pornography carries a mandatory minimum penalty of five years and a maximum penalty of 20 years in prison on each count; and possessing child pornography carries a 10-year maximum prison term. Each count also carries a maximum fine of $250,000. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The public is reminded that an indictment 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.

This investigation is part of Operation Predator, a nationwide ICE initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders, and child sex traffickers.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Robert Maday Indicted in Alleged Escape and Armed Bank Robbery in 2009

December 2, 2011

The Federal Bureau of Investigation (FBI) on December 2, 2011 released the following:

“CHICAGO— A Chicago area man who allegedly escaped from custody in Rolling Meadows and a day later committed an armed bank robbery in Bloomingdale before being recaptured was indicted on federal charges in connection with the alleged series of events in September 2009. The defendant, Robert Maday, was charged with escape, armed bank robbery, being a felon-in-possession of firearms, and two counts of using firearms during violent crimes in a five-count indictment that was returned by a federal grand jury late yesterday, 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, announced today.

Maday, 41, formerly of Elk Grove Village, has remained in federal custody since he was recaptured on Sept. 18, 2009. He will be arraigned on a date still to be determined in U.S. District Court. Maday faces a mandatory minimum of 45 years and a maximum sentence up to life in prison if convicted of the three gun counts alone.

On Sept. 17, 2009, Maday was under a federal detention order when he allegedly escaped from the custody of two Cook County State’s Attorney’s Office investigators who were transporting him to the Cook County Courthouse in Rolling Meadows. One gun count alleges that Maday used two firearms during the escape—a Heckler and Koch USP .40-caliber semi-automatic pistol and a Smith and Wesson .38-caliber SPL revolver.

On Sept. 18, 2009, Maday allegedly took approximately $32,975 in the armed robbery of the First American Bank branch, located at 80 Stratford Dr., in Bloomingdale. A second gun count alleges that Maday used the same two firearms during the bank robbery. A third gun count alleges that Maday illegally possessed both weapons after having previously been convicted of a felony. The indictment seeks forfeiture of both weapons and 18 rounds of ammunition that were seized when Maday was arrested. He was apprehended after leading police on a high-speed chase and crashing a stolen car on Illinois Highway 59 in West Chicago.

The armed bank robbery count carries a maximum sentence of 25 years and the escape count carries a maximum of five years in prison. The felon-in-possession of a firearm count alleges that Maday would be eligible to be sentenced as an armed career criminal, which carries a mandatory minimum 15-year prison term. A first conviction for using a firearm during a violent crime carries a mandatory consecutive term of five years in prison and conviction on a second count carries a mandatory consecutive sentence of 25 years in prison, with a maximum of any number of years up to life. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The government is being represented in court by Assistant U.S. Attorney Andrianna Kastanek. The public is reminded that an indictment 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.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Blagojevich Asks For New Trial, Cites Judicial Bias

July 26, 2011

Chicago Tribune on July 26, 2011 released the following:

“Former Gov. Rod Blagojevich, convicted last month of wire fraud, bribery, attempted extortion and conspiracy in his second federal public corruption trial, filed a motion late Monday for another retrial, citing numerous instances of alleged judicial bias and error that helped the prosecution “strip away the effective aspects of the defense case.”

“Virtually every error in this trial stemmed from the fact that this Court deprived Blagojevich of the presumption of innocence and exhibited bias against the defense,” the motion asserted. “The Court formed a closed mind to the evidence and made findings of fact.”

The motion said that “the government did not only benefit from the first trial, it used every opportunity to strip away the effective aspects of the defense case. … The Court rubber-stamped the government’s requests.”

The litany of criticisms in the 158-page document touched on everything from jury selection to Blagojevich’s attorneys’ long-held argument that more of the secretly-recorded phone calls that were at the heart of the government case should be played.

The motion also noted that U.S. District Judge James Zagel ruled against Blagojevich at nearly every turn.

His attorneys also zeroed in on Blagojevich’s decision to testify at the second trial — arguing that while Zagel had assured Blagojevich’s defense team that taking the stand would allow Blagojevich the chance to explain his behavior, his rulings during the testimony prevented that.

Blagojevich did not testify during his first trial last year in which a jury convicted him of one of 24 counts against him — that he lied to the FBI. The jury deadlocked on the rest of the charges, leading to the second trial and his sweeping conviction last month on an additional 17 counts.

As a part of the defense motion for a new trial filed Monday, his attorneys included an affidavit signed July 25 by Blagojevich in which he says that he decided to testify the second time around after conferring with his attorneys about statements Zagel made during a May 20 sidebar. According to the affidavit, Zagel said that Blagojevich would be allowed to testify to the fact that he didn’t think anything he was doing was illegal and that none of the people he spoke with told him differently.

In the motion filed Monday, though, Blagojevich’s attorneys said Zagel’s rulings during Blagojevich’s several days of testimony did not allow him to get that point across.

“The Court explicitly told defense counsel that the only path to acquittal was through Blagojevich’s testimony,” the filing reads. “Yet when Blagojevich finally took the stand, he was bamboozled by the Court’s rulings and assertions throughout the trial.”

The ruling noted that the government was allowed to address details of the calls “ad nauseum” with witnesses but that Blagojevich was not allowed to offer up explanations for certain aspects of the calls.

The government is expected to respond to the motion next month.”

To find additional federal criminal news, please read The Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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Fabrieal Delaney Charged by a Criminal Complaint for Allegedly Engaging in Sex-trafficking of a Minor in Violation of 18 U.S.C. 2423(a)

July 26, 2011

The U.S. Attorney’s Office Northern District of Illinois on July 25, 2011 released the following:

“MICHIGAN MAN CHARGED WITH FEDERAL SEX-TRAFFICKING OF A MINOR

CHICAGO — A Michigan man is facing a federal detention hearing today after he was arrested late last week for allegedly engaging in sex-trafficking of a minor, federal law enforcement officials announced today. The defendant, Fabrieal Delaney, was arrested by FBI agents early Friday morning outside a hotel in south suburban Tinley Park where he allegedly brought three females, two of whom were under age 18, from Michigan to engage in prostitution. The charges allege that Delaney believed he was transporting the two youths and a young woman to engage in commercial sex acts at a purported bachelor party at the hotel, but which, in fact, was a sting operation designed to arrest him following a long-term investigation.

Delaney, also known as “Face,” 25, of Kalamazoo, was charged with transporting a minor across state lines for prostitution in a complaint filed in U.S. District Court. He is scheduled to return to court at 11:30 a.m. today for a detention, or bond, hearing before U.S. Magistrate Judge Jeffrey Cole, after an initial appearance before Magistrate Judge Cole on Friday.

The charge carries a mandatory minimum penalty of 10 years and a maximum of life in prison upon conviction. The arrest and charge were 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 Federal Bureau of Investigation. The investigation is continuing, they said. The Cook County Sheriff’s Police Department, the Illinois State Police, the police departments in Kalamazoo and Battle Creek, Mich., and the Will County State’s Attorney’s Office are assisting in the investigation.

According to the complaint affidavit, late last Thursday and early Friday, Delaney drove the three females from the Kalamazoo area to the Tinley Park hotel, expecting to take them to a bachelor party where they would engages in sexual activity with 10 to 12 men and charge between $150 and $300 per customer for various sex acts. The three females were Victim 1, age 17; Victim 2, age 16; and Individual B, who is Victim’s 1 sister and over age 18. Victim 2 told agents that she met Delaney earlier this month and since then, at his direction, had gone on 20 to 24 calls for commercial sex, providing him with half the money she had received.

The charges detail the investigation, which began in September 2010 when state police made a traffic stop in Will County and found Delaney driving with three female passengers, including Victim 1. The charges allege that Delaney was sex-trafficking Victim 1, who was then 16 and later turned 17, at a hotel in the Joliet area. Delaney allegedly used various Internet web sites to advertise prostitution services. Delaney typically met customers in a hotel parking lot to ensure they were not undercover police before sending them to Victim 1’s hotel room and he received a portion of the money she was paid.

The government is being represented by Assistant U.S. Attorneys Halley B. Guren and Rajnath Laud.

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 United States has the burden of proving guilt beyond a reasonable doubt.”

Attached is a copy of Fabrieal_Delaney_Federal_Criminal_Complaint

To find additional federal criminal news, please read The Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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Federal Judge Sets $450,000 Bond for Former Gov. Rod Blagojevich

July 17, 2011

Chicago Tribune on July 15, 2011 released the following:

“By Jeff Coen | Tribune reporter

Judge sets $450,000 bail for Blagojevich, lower than feds sought

A federal judge today set bond at $450,000 for former Gov. Rod Blagojevich and ordered him to post his North Side house and Washington condo as collateral despite the defense declaring that the Chicago residence is up for sale.

U.S. District Judge James Zagel then called Blagojevich and his wife Patti before him to issue the standard warning that they could lose both properties if the former governor violated bond conditions.”

To find additional federal criminal news, please read The Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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