Chicago Businessman Charged with Alleged FraudPosted:
SPRINGFIELD - A former commissioner with the Illinois Medical District, his wife, and two others have been indicted by a grand jury on charges they used millions of dollars in grant funds awarded by the Illinois Department of Health to grant receipts for their personal benefit and to pay personal expenses.
According to the indictment, Leon Dingle, Jr., Karin Dingle, Jacquelyn Kilpatrick, and Edmond Clemons were charged in connection with alleged fraud.
The indictment alleges Mr. Dingle, with the assistance of Kilpatrick, used non-profit organizations as straw grantees to fraudulently solicit and obtain more than $11 million in grant funds from the Illinois Department of Public Health.
The indictment alleges that AHSEA received approximately $7.4 million in grant funds,
which largely funded approximately $3 million received by the Dingles and their family members,
including $300,000 paid directly to Karin Dingle, which was used to generate large amounts of cash, purchase approximately $300,000 in certificates of deposit, and pay expenses relating to, among other things: the Chicago Yacht Club, the South Carolina Yacht Club, the Mid-America Club, purchase of luxury cars, maintenance of a condominium at Chicago Marina Towers, used by Kilpatrick and a family member, and maintenance and renovation of vacation homes in Savannah, Ga., and Hilton Head, S.C., payment of mortgage and other expenses for family members, and approximately $400,000 in legal fees for lawsuits filed against Leon Dingle and AHSEA.
The indictment alleges that Kilpatrick and Clemons and family members received
approximately $700,000 which was used to pay expenses including maintenance of a vacation home in Hilton Head, SC., purchase of luxury cars, certificates of deposit, a fur coat and payment of college tuition and loans for family members.
In addition, Leon Dingle, with Kilpatrick's assistance, allegedly misappropriated
approximately $29,000 in grant funds to purchase tickets, two skyboxes, food and alcohol for the 2007 and 2008 Chicago Football Classic.
Further, the indictment alleges that, as part of the conspiracy, and to conceal its existence,
Leon and Karin Dingle fraudulently failed to report and to pay federal and state income taxes on approximately $1.4 million in income, the majority of which was grant funds. Kilpatrick and
Clemons allegedly failed to report and pay federal and state income taxes on approximately $277,000 in income, the majority of which was grant funds.
The indictment alleges that each of the defendants engaged in money laundering, that is a
monetary transaction of more than $10,000 derived from proceeds of a criminal offense, including a check in the amount of $58,962 by Karin Dingle in May 2008 involving the purchase of a 2008 Mercedes Benz automobile; a $30,498 check by Leon Dingle in June 2008 involving the purchase of a 2005 Mercedes Benz; a $55,237 check by Kilpatrick in April 2009 involving the purchase of a 2009 Mercedes Benz; and a check in the amount of $95,066 by Leon Dingle in March 2009 for payment on a mortgage loan for his son.
Arraignment for the defendants has been scheduled for Nov. 7, 2012, before U.S. Magistrate
Judge Byron G. Cudmore in Springfield, Ill.