Four People Plead Guilty to Mail Fraud, Wire Fraud, and Money Laundering Charges

SPRINGFIELD, Ill. – Four individuals have pleaded guilty over the past three months to mail fraud, wire fraud, and money laundering charges that were related to schemes involving the submissions of fraudulent claims for childcare services to the Illinois Department of Human Services that resulted in a loss of approximately $1,300,000 to the State of Illinois and the United States. The individuals are: Tarnavis Lee, 42, of the 6200 block of W. 80^th Street in Burbank, Illinois; Demetra Jackson, 42, of the 2700 block of W. 64^th Street in Chicago, Illinois; LaShanda Hudson, 40, of the 6700 block of S. Maplewood in Chicago; and Elizabeth McFarland, 47, of the 600 block of Rothwood Avenue in Madison, Tennessee.

According to the three indictments charging the defendants, as well as their plea agreements, the Illinois Department of Human Services (DHS) administered the Child Care Assistance Program, which was partially funded by the federal government. The program paid for childcare services for low-income parents while they worked or participated in approved educational programs. Each of the individuals charged engaged in schemes to defraud DHS by submitting claims for childcare services that were not provided or not provided to the extent claimed.  As part of their schemes, Lee and Hudson also paid a total of more than $160,000 in kickback payments to parents participating in the program in exchange for the parents allowing their personal information and that of their children to be used to submit false and fraudulent childcare claims to DHS.

On September 8, 2021, Lee pleaded guilty pursuant to a plea agreement to two counts of mail fraud, two counts of wire fraud, and two counts of money laundering, as charged in two separate indictments. As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $913,390.66.  Lee’s sentencing is scheduled for January 6, 2022.

On October 12, 2021, Jackson pleaded guilty pursuant to a plea agreement to one count of wire fraud.  As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of approximately $250,000.  Her sentencing is scheduled for February 9, 2022.

On October 25, 2021, McFarland pleaded guilty pursuant to a plea agreement to one count of wire fraud.  As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $228,301.31.  Her sentencing is scheduled for February 24, 2022.

On November 3, 2021, Hudson pleaded guilty pursuant to a plea agreement to one count of wire fraud and one count of money laundering.  As part of the plea agreement, she agreed that she caused a loss to the United States and the State of Illinois of $421,875.97.  Her sentencing is scheduled for March 4, 2022.

The statutory penalties for each count of mail and wire fraud are up to 20 years of imprisonment, 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment.  The statutory penalties for each count of money laundering are up to 20 years of imprisonment; up to 3 years of supervised release; a fine up to $500,000 or twice the value of the property involved in the transactions, whichever is greater, or both; and a mandatory $100 special assessment.

All defendants remain free on bond pending sentencing. The scheduled sentencings are set to take place at the federal courthouse in Springfield, Illinois.

The cases were the result of a joint investigation by the Department of Health and Human Services - Office of Inspector General, St. Louis Field Office, and the Illinois State Police Medicaid Fraud Control Bureau, Central Division.  Assistant U.S. Attorney Timothy A. Bass represented the government in the prosecution.