Month: May 2022

Source: United States Department of Justice News

CHICAGO — Former Illinois State Rep. LUIS ARROYO has been sentenced to nearly five years in federal prison for participating in a bribery scheme involving a fellow state lawmaker and Arroyo’s private lobbying client, a sweepstakes gaming company.

Arroyo, 67, of Chicago, pleaded guilty last year to a federal wire fraud charge.  U.S. District Judge Steven C. Seeger imposed a 57-month prison sentence Wednesday after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division.  The government was represented by Assistant U.S. Attorney James P. Durkin.

Arroyo represented the 3rd District in the Illinois House of Representatives from 2006 to 2019.  He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.

In 2018 and 2019, Arroyo accepted thousands of dollars in bribes from the gaming company, Collage LLC, in the form of checks made payable to Spartacus.  In exchange for those bribes, Arroyo promoted legislation in the Illinois House of Representatives related to the sweepstakes industry and advised other state lawmakers to support the legislation. 

In August 2019 Arroyo offered to have payments made to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation.  On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie, Ill., and provided him with a $2,500 check from Collage as an initial bribe payment, with the expectation that the senator would receive similar payments for 12 months.  Arroyo told the senator, “This is the jackpot,” and then wrote the name of the senator’s nominee on the company’s check.  The nominee’s name was used for the purpose of concealing the illicit payment.

Source: United States Department of Justice News

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jason Weigand, 51, of Sinking Springs, PA, was convicted at trial on thirty counts involving multiple charges of fraud, money laundering and identity theft arising from his elaborate scheme to steal money from his own financial advisory clients.

In October 2017, the defendant was charged by Indictment, which was then superseded several times. Further, while the defendant was out on bail awaiting trial, he committed additional fraud crimes, which resulted in a second indictment. Weigand was ultimately charged with thirty counts involving multiple counts each of wire fraud, mail fraud, bank fraud, interstate transportation of stolen property, unauthorized access to a computer, aggravated identity theft, money laundering, and committing offenses while on bail.

During the nearly 15 years that he served as an investment advisor and proclaimed himself a knowledgeable and reputable source of investment advice, the defendant repeatedly stole money from his clients and went to great lengths to cover up his thefts. Weigand laundered the stolen funds by passing them through a variety of bank accounts, and he even hacked into one client’s email account and accessed emails between the client and another investment advisor.

“Weigand has proven himself to be serial fraudster with no respect for the law or the fiduciary obligations of a financial advisor, and today a jury agreed,” said U.S. Attorney Williams. “Rather than serving his clients, he served himself. Prosecuting financial fraud, and thereby safeguarding innocent investors who stand to lose everything, will always be a priority for this Office.”

“With today’s guilty verdict, Jason Weigand’s victims may finally find some closure on their abuse at the hands of this serial fraudster,” said Postal Inspector in Charge of the Philadelphia Division Damon Wood.  “Mr. Wiegand was dishonest in his dealing with them, and not surprisingly, that dishonesty extended through trial.  Fortunately, a jury saw through his dishonesty and found him guilty of fraud. Postal Inspectors, picking up the work of investigators from the Pennsylvania State Department of Banking and Securities, along with prosecutors from the United States Attorney’s Office, saw this investigation through seven years of delays, a pandemic, continued criminal conduct by the defendant, and a nearly three-week trial.  I applaud the tireless efforts of the investigators and prosecutors on this case.”

The case was investigated by the United States Postal Inspection Service and the Pennsylvania State Department of Banking and Securities, and is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Christopher J. Mannion.

Source: United States Department of Justice News

WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld announced today that Danae DeMasi-Lemon has been selected to aid in the development of asset forfeiture policies for federal prosecutors from throughout the country.

DeMasi-Lemon, an Assistant United States Attorney since 2015, has been named to two national asset forfeiture working groups that will develop best practices, review legislative proposals, and mentor new prosecutors.

“Danae is an expert in the field of asset forfeiture, and she has been helping to recover property for crime victims in West Virginia for many years,” said U.S. Attorney Ihlenfeld. “Her expertise was recognized by Department of Justice officials in Washington D.C. and led to her being invited to be a part of these prestigious groups.”

As part of the Asset Forfeiture Working Group, DeMasi-Lemon joins a team that provides guidance to the Department of Justice’s Money Laundering and Asset Recovery Section and the Executive Office for United States Attorneys. Group members aid in the development of new policies and the review of legislative changes, as well as provide instruction for young prosecutors.

With the Firearms Working Group, DeMasi-Lemon will help federal, state, and local agencies develop policies to aid in the forfeiture of firearms involved in federal crimes.

DeMasi-Lemon will continue to work in her home district where she serves as the Asset Forfeiture Coordinator, the Financial Crimes Review Team Coordinator, and represents the United States Attorney’s Office in the district’s Drug Court Program.

Source: United States Department of Justice News

MACON, Ga. –  A Metro Atlanta resident was found guilty of trafficking methamphetamine intended for Macon State Prison.

Raquan Emahl Gray, 26, of Conley, Georgia, was found guilty of one count of conspiracy to possess with intent to distribute methamphetamine by a federal jury on May 24, following a two-day trial that began on May 23, before U.S. District Judge C. Ashley Royal. Gray faces a maximum of 20 years of imprisonment to be followed by three years of supervised release and a maximum $1,000,000 fine. A sentencing date has not been scheduled.

“The flow of illegal and dangerous contraband into our prisons must end for the safety of everyone inside the prison and the general public,” said U.S. Attorney Peter D. Leary. “To that end, our office—working alongside our local, state and federal partners—will hold those who supply inmates with drugs, cell phones and other illegal items accountable for their crime.”

“This defendant attempted to get drugs into a state prison, but instead landed there himself,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success because of the spirited efforts of all law enforcement agencies involved.”

“Illegal drugs have no place in Georgia, not even in our prison system. They are dangerous and threaten the safety of all populations. We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations no matter where they are,” said GBI Director Vic Reynolds.

According to court documents and evidence presented at trial, Gray was the passenger of a vehicle that was pulled over by a Crawford County Sherriff’s Office deputy in Roberta, Georgia, for traveling 25 mph over the posted speed limit on Sept. 2, 2019. A strong odor of marijuana was emanating from the car and the driver, Demarea Demond Carey, 28, of Fairburn, Georgia, admitted he had smoked marijuana. A probable cause search of the vehicle found various packages wrapped in different colored duct tape and some were numbered. Some packages were softball shaped and wrapped in electrical tape. The packages contained 494 grams of methamphetamine, 150 suspected ecstasy pills which tested as methamphetamine, 50 cell phones, two large bags of cell phone chargers, approximately three pounds of marijuana, 19 bags of tobacco, a large bag of cigars and 19 lighters. Co-defendant Carey’s cell phone’s GPS destination was set for Macon State Prison.

Gray has an extensive criminal history including felony convictions for robbery, burglary and theft by taking. Two co-conspirators who were traveling with Gray—Daquann Marquez Epps, 25, of Columbus, Georgia, and Carey—both previously pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance and conspiracy to possess with intent to distribute methamphetamine, respectively. Sentencing for Epps and Carey is scheduled for July 6.

The Crawford County Sheriff’s Office, the Peach County Sheriff’s Office, GBI, the Georgia Department of Corrections and DEA investigated the case.

Assistant U.S. Attorneys Will Keyes and Leah McEwen are prosecuting the case.