AMERICAN FRAUD and The Tylenol Murders

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Where Are They Now
Tylenol Task Force
Tylenol Power-brokers
Milt Ahlerich
Robert Andrews
Richard Brzeczek
Jon Burge
James Burke
Burke Interview
Jane Byrne
H. Stuart Campbell
Joseph Chiesa
Edward Cisowski
David Clare
Tyrone Fahner
Larry Foster
George Frazza
William Grigg
Arthur Hayes
Robert Kniffen
Jeremy Margolis
Joseph McQuaid
Terry Mee
James Murray
Wayne Nelson
Mark Novitch
Donald Perkins
Thomas Royce
George Ryan
Michael Schaffer
Thomas Schumpp
Richard Schweiker
Robert Stein
James Thompson
Carl Vergari
Dan Webb
William Webster
William Weldon
Frank Young
FBI
FDA
Owen McClain
Joe Birkett
Jim Ryan
Colleen Goggins
Proprietary Association
JEREMY MARGOLIS - Asst. US Attorney
  
  Jeremy Margolis, Asst. US Attorney in the northern district of Illinois, assisted in the prosecution of James Lewis for extortion. Although Lewis was charged with extortion, the job of Margolis, along with US Attorney Dan Webb and IL Attorney General Tyrone Fahner, was to convict Lewis - in the court of public opinion - for the Tylenol murders.

 

Documents from James Lewis' Parole hearing appeal show that what a jury could not do, was done by players within the corrupt power structure of the Illinois Political and Judicial Systems.

 

James Lewis 1991 Parole Hearing Appeal:

 

1. Can evidence that was known by investigative agencies but not by the United States Parole Commission ("the Commission") at the time of a prisoner's initial parole determination be considered "new information" sufficient for the Commission to reopen the prisoner's case under 28 C.F.R. § 2.28(f)?

 

2. Once a prisoner's case is reopened, can the Commission consider information in a sentencing transcript where

A. the transcript, though previously unseen by the Commission, was not the basis for reopening;B. the information pertains to a crime for which the prisoner was not charged but which was related to the crime for which he was convicted; and

 

C. the district judge declined to consider the information at sentencing?

 

3. Was the district judge's statement during sentencing that there was not a "shred of evidence" that the Petitioner-Appellant (Lewis) committed the Tylenol murders merely a reiteration of his assurance that he was not going to consider any evidence of that crime since Lewis was not so charged, rather than a finding on the merits of such an allegation pursuant to Federal Rule of Criminal Procedure 32(c)(3)(D)(i)?

 

4. Did the Commission act within its discretion in determining that Lewis committed murder by lacing Tylenol capsules with cyanide?

 

 

We answer all of these questions in the affirmative. 

 

There is no question that Lewis could  not - and did not - carry out the Tylenol murders. It seems implausible that the players involved in the prosecution really believed James Lewis was the Tylenol Killer.

 

Even the judge who sentenced Lewis said:

There was not a "shred of evidence" that the Petitioner-Appellant (Lewis) committed the Tylenol murders.

 

Nevertheless, once James Thompson, Jeremy Margolis, Dan Webb, Tyrone Fahner, and George Ryan put Lewis behind bars, they used their political clout to corruptly convict him of the Tylenol murders. There was no trial, Lewis was not allowed to defend himself, there was no interjection of logic or physical evidence. The approved theory of the Tylenol murders required a patsy. And at the direction of J&J CEO James Burke and his corporate yes men, the corrupt Chicago power brokers fulfilled the mandate of the approved theory.

 

 

James Lewis offered to assist the Tylenol task force in any way he could. Jeremy Margolis accepted his offer. The picture in front of Margolis was drawn by Lewis. It depicts a method that Lewis hypothesized might have been used by the killer to fill Tylenol capsules with cyanide. Margolis touts this sketch as his greatest piece of evidence for making Lewis his prime suspect. 

 

 

Had Margolis or any of the Tylenol task force members actually taken the time to learn how Tylenol was packaged and distributed, they'd have realized that this sketch did not depict some unique system that only James Lewis had ever come up with for filling capsules. This drawing depicts the basic mechanism used in dozens of different types of capsule repackaging machines used at thousands of pharmacies and repackagers throughout the country in 1982.

 

Basic Capsule Filling Machine

 

 

 

  

 

James Lewis Convicted of Extortion in the Tylenol Case

 

October 28, 1983

 

James Lewis, described by prosecutors as a "vicious, mean person" who had no regard for the victims of the Tylenol-cyanide killings, was found guilty of extortion for demanding $1 million from Johnson & Johnson. A federal jury of eight men and four women found Lewis guilty after deliberating for three hours on the eighth day of the trial before U.S. District Chief Judge Frank J. McGarr.

 

The conviction followed five days of testimony before U.S. District Judge Frank McGarr in which he contended Lewis was a misguided "wretch," while prosecutors tried to show he was "diabolical" and a "methodical" con man.

 

In closing arguments Assistant U.S. Attorney Jeremy Margolis called Lewis a "diabolical" schemer who preyed on fear and grief and "turned the world on its ear" by writing the letter.

 

"All that matters in this case is when he wrote the letter, he recognized he intended Johnson & Johnson would part with $1 million," said Margolis.

 

The defense admitted Lewis wrote the letter to Johnson & Johnson Co. demanding $1 million to "stop the killings," but contended he did it to embarrass his wife's former boss by leaving clues the boss had written the letter.

 

Lewis showed no emotion and stared down at the defense table before and after the verdict. He later shook hands with defense attorney Michael Monico, who said he would appeal the verdict.

 

Monico said the government failed to prove Lewis intended to receive the money, saying he only wanted to embarrass his wife's former employer because he failed to meet his last payroll. Assistant U.S. Attorney Jeremy Margolis disagreed.

 

"The grief and horror of October and September of 1982 is what he trafficked upon to commit his crime," Margolis said.

 

 

 

 

 

Eighteen Months After the Tylenol Murders, Mystery Lingers

 

After an intense marketing and public relations campaign, Tylenol had recaptured 28 percent of the market. ''Tylenol is still outselling the next four leading brands,'' says James Murray, assistant director of public relations for Johnson & Johnson. ''Our share is essentially where it was in spring 1982.''

 

But the mystery lingers, and the scope of the investigation reflects the unusual character of the crime, said Jeremy Margolis, a top state investigator who holds the newly created title of Illinois Inspector General. ''We lacked a crime scene and we lacked a motive, the two inroads to move into the solution,'' he said. ''All that was left was the cyanide.''

 

About 20,000 names, including some from anonymous tips, were logged into the computer, and 400 people were scrutinized extensively. Two of them, Roger Arnold and James W. Lewis, were eventually convicted in cases related to the Tylenol inquiry.

 

 

 

 

 

 

Ken Eto "Flips" for the Feds

 

Ken Eto turned on the mob after he survived being shot in the head in a Northwest Side parking lot in 1983 and went on to testify against mob boss Ernest Rocco Infelice in 1991. Eto, known as "Tokyo Joe," survived three gunshots in the head in February 1983 in an attempted assassination that came after he was convicted of a gambling charge and the mob feared he would become a turncoat.

Former FBI agent Jack O'Rourke said that Eto was a gambling expert who for decades ran games and books for the mob's North Side crew. Eto learned gambling in the service while riding a troop train to Alaska during World War II. After returning to Chicago, he took up with the mob and handled not only their games and books, but also paid bribes to police, O'Rourke said.

In 1983, the mob turned on Eto and ordered him killed.

Inside a car parked along Harlem Avenue on the North Side, two men fired three shots into Eto's skull. The men, whom Eto later identified to federal agents as mob soldiers John Gattuso and Jasper Campise, then left him for dead, O'Rourke said. But Eto didn't die, and after awaking from unconsciousness, dragged himself to a nearby pharmacy, where he called 911, O'Rourke said.

FBI agents and then-Assistant U.S. Atty. Jeremy Margolis rushed to the hospital where Eto was taken, O'Rourke said. During his recovery, Eto agreed to "flip" for the feds, O'Rourke said. "He really had nowhere else to go," O'Rourke said

Eto not only fingered Gattuso, a Cook County sheriff's officer, and Campise, as the gunmen, but he also provided intelligence about mob activity to the FBI. O'Rourke said he learned that soon after the shooting, the mob planned to murder Gattuso and Campise. O'Rourke said he and then-U.S. Atty. Dan Webb tried to persuade the men to cooperate with the government, but they refused.

On July 14, 1983, their bodies were found in the trunk of car in Naperville. Eto, meanwhile, was placed in the witness-protection program, O'Rourke said.

In 1989, Eto testified against a state legislator implicated in the Operation Greylord investigation. Eto was 72 when he testified in 1991, telling the court he had spent 40 years in the Chicago Outfit.

"I've never seen a witness like him," Shapiro said. "Completely unflappable."

 

 

 

 

 

Governor George Ryan Denies Wrongdoing from him and Pal Jeremy Margolis

 

September 23, 2000

 

SPRINGFIELD — Gov. George Ryan on Friday denied any wrong-doing as questions have arisen about the level of influence a key associate had in Ryan's naming members to the Illinois Gaming Board.

 

"There's nothing there," Ryan told reporters.

 

The central figure in the latest controversy to hit the Ryan administration is Jeremy Margolis, former Illinois State Police director and a close friend of Ryan. Margolis, a lawyer and lobbyist, also represents the 71 suburban communities that would share upward of $100 million in profits generated by a proposed casino in Rosemont. The Illinois Gaming Board ultimately decides whether Rosemont will get that casino.

 

Published reports suggested Margolis used his influence with Ryan to stack the board in his favor, going so far as to recruit board members for Ryan's approval. Ryan said the reports are overblown and that Margolis only "introduced" prospective board members to him.

 

"I don't think there's a conflict at all," Ryan said.

 

However, Anita Bedell, executive director of the anti-gambling Illinois Church Action on Alcohol Problems, said it appears there is a "huge conflict of interest all around." She said Margolis' presence suggests there is "undo pressure" being put on the gaming board to approve the Rosemont casino. A vote on the proposed Emerald Casino license could come next month.

 

Ryan doesn't dispute that it was Margolis who introduced him to Gregory C. Jones and Sergio Acosta. Jones is now the board's chairman and Acosta is executive director. But be claimed it never went beyond an introduction.

 

"I didn't know these people, he did. He brought them in and introduced them to me. I looked at their qualification, their backgrounds and thought they were perfect for the job," Ryan said. "They weren't hired because of Jeremy Margolis."

 

Margolis did not return a message seeking comment Friday. Jones declined to comment when contacted. Gene O'Shea, spokesman for the Illinois Gaming Board, read this statement:

 

"The Illinois Gaming Board, its administrator and staff will continue to conduct all matters and investigations pending before the board independently, thoroughly and without regard to outside influence, just as intended by Governor George Ryan."

 

In responding to questions about Margolis, Ryan gave several contradictory statements Friday. At one point he said Margolis has no official link to the governor's office. He then confirmed Margolis coordinated the Ryan administration's response to the federal investigation into a driver's ticenses-for-bribes scheme dating back to Ryan's days as secretary of state.

 

As for Margolis' connections to Acosta and Jones, Ryan said no conflict of interest exists because Margolis does not have an issue directly before the gaming board. Emerald Casino wants to build thecasino in Rosemony. That is the sole issue the board is ruling on. The role of Rosemont itself and the other suburban communities is separate, Ryan said.

 

Margolis was hired to represent the West Central Municipal Conference, which includes Rosemont,after Lake County developers filedsuit claiming the law that allows a casino to be built in Rosemont is unconstitutional. In addition to the normal 31 conference members, another 37 communities from throughout suburban Cook Countyare involved with the revenue sharing plan.

 
 
 
 

 

 

Former Governor, James Thompson, Defends his Political Ally
 
Ryan's defense has been provided pro bono by Winston & Strawn, a law firm managed by former governor Thompson. The defense cost the firm $10 million through mid-November 2005. Estimates of the cost to the firm as of September, 2006, ranged as high as $20 million. Ryan served as Thompson's lieutenant governor from 1983 to 1991. After the United States Supreme Court declined to hear Ryan's appeal, Thompson indicated that he would ask President George W. Bush to commute Ryan's sentence to time served.
 
Ryan was defended by long time Winston Strawn partner, Dan Webb. Webb was a US Attorney in Illinois in 1983. He, prosecuted Tylenol extortionist, James Lewis.
 
Webb & Ryan
 
Webb was also the US Attorney who asked the FBI to look into allegations that House Speaker George Ryan benefited financially from helping a nursing home operator charged with patient neglect.
 

Webb said his office referred allegations of wrongdoing by Ryan to the FBI "for the purpose of conducting preliminary Interviews to determine the merit of those allegations." Webb said the U.S. Attorney's office would investigate if asked to do so. Webb said he would remove himself from the probe because he served on Gov. James R, Thompson's cabinet from 1969-70.

 

FBI officials refused to comment on a possible investigation.

"I've been instructed to say no comment," FBI spokesman Thomas Tresslar said, "I'm not confirming or denying it."

Before the FBI would have had any time to investigate the charges, the investigation was dropped.
 
Shortly after Webb represented Ryan in the Operation Safe Roads trial (Ryan was convicted), James Thompson retired as the head of Winston & Straw. Dan Webb was named Chairman.
 
In 2003, Dan Webb took over the defense of George Ryan in the Operation Safe Roads case from Ryan's other former US Attorney pal,  Jeremy Margolis. There had been constant accusations of conflict of interst regarding Ryan's retention of Margolis as his legal cousel in the Safe roads indictment.

 

 

 

 

 

 
Loeb & Loeb’s Investment in Chicago Office Continues
 
Jeremy Margolis and Robert Andalman Mark the Third and Fourth Lateral Partner Hires in 2008
April 21, 2008

CHICAGO, Illinois – Loeb & Loeb announced today that Jeremy D. Margolis and Robert M. Andalman have joined the firm’s Chicago office as partners in the Litigation Department and in the White Collar Criminal Defense, Corporate Compliance and Investigations Group. Both join from Sonnenschein Nath & Rosenthal LLP where they were partners and Margolis served as Co-Chair of the firm’s White Collar Defense Practice.

 

Margolis and Andalman are the third and fourth lateral partner hires in 2008 for Loeb & Loeb’s Chicago office. Loeb & Loeb has been committed to actively developing their presence in Chicago, both in growth and diversification of practices. Earlier this year, Elizabeth Majers and James Inendino both joined the corporate practice from McDermott, Will & Emery LLP, and last year the firm added a substantial patent litigation practice also from Sonnenschein Nath & Rosenthal LLP.

 

Jeremy Margolis, a former Assistant U.S. Attorney in Chicago, provides counsel and litigates on behalf of clients in grand jury investigations concerning white-collar defense cases, as well as complex commercial litigation cases. His clients include officers, directors and key employees of public and private companies and he has represented high-ranking elected and appointed officials of both political parties. Prior to his work in the private sector and his 11 year stint in the U.S. Attorney's Office, Margolis served as Illinois Inspector General for three years, and as Director of Illinois State Police for four years. His work in these capacities has earned him numerous honors including the U.S. Attorney General’s Award for Distinguished Service, the U.S. Secret Service Honor Award, and the Anti-Defamation League’s Civil Rights Award.

 

“Jeremy’s extensive experience working in the public sector has enabled him to consider the law from a perspective that is invaluable to clients,” commented Loeb & Loeb Co-Chair Michael Beck. “His impressive résumé speaks for itself and we welcome him and Rob to the firm.”

 

Robert Andalman’s national trial and appellate practice concentrates on complex business litigation and white-collar criminal defense. On civil matters, he represents and counsels companies and individuals confronting a variety of business issues, from contract disputes, alleged breaches of fiduciary duty, employment and non-competition matters to civil rights cases, on both the federal and state level. Andalman’s criminal defense practice includes advising clients facing grand jury inquiries and accused of violating RICO, the Foreign Corrupt Practices Act, the False Claims Act, bank fraud, mail fraud, securities fraud, perjury, tax and other offenses.

 

“While we are always interested in talented attorneys who might be a good fit, it’s particularly gratifying to find a team like Jeremy and Rob who have already developed a high level of synergy and can hit the ground running for our clients,” said Loeb & Loeb Co-Chair John Frankenheimer.

 

“Jeremy and Rob will provide a much deeper bench in Chicago adding to our practice diversity which now includes corporate and securities; bankruptcy, restructuring and workouts; and real estate, in addition to IP counseling and litigation,” said Chicago Administrative Partner-in-Charge Daniel Frohling. “They will be tremendous assets to our colleagues and clients and we look forward to working with them.”

 

Margolis received his B.A. from the University of Illinois and his J.D., cum laude, from Northwestern University School of Law. Andalman received his B.A., with honors and distinction, from the University of Michigan and his J.D., cum laude, from Boston University.

 

Loeb & Loeb’s White Collar Criminal Defense Group provides compliance counseling, investigates matters involving alleged wrongdoing and defends individuals and companies accused of wrongdoing by federal or state authorities. When companies or individuals are investigated or charged by law enforcement or regulatory agencies, they regularly work with such entities to resolve the matter, and, when necessary, vigorously defend clients in state and federal courts. Loeb attorneys provide valuable advice to help companies develop and implement compliance programs designed to detect and, to the extent possible, prevent wrongdoing. If wrongdoing is detected or suspected, they conduct internal investigations to determine the scope of the problem, resolve the matter, prepare for and deal with regulatory scrutiny and minimize damage.

 

 

 

 

Jeremy Margolis:

Partner 2005-2008
233 South Wacker Drive 8000
Chicago, IL 60606-6491

 

Education: Northwestern University School of Law, J.D. , cum laude, 1973 University of Illinois, B.A., 1970 Practice Areas: Litigation White Collar Defense Professional Profile: Mr. Margolis, a partner in Sonnenschein's Litigation Group, is the Co-Chair of Sonnenschein's White Collar Defense Practice. His grand jury investigation/white collar trial practice and his complex commercial litigation practice is national in scope. He has provided counsel and guidance to officers, directors and key employees of public and private companies in matters that go to and beyond the bottom line - often effecting a company's survival. He has represented high ranking elected and appointed public officials of both political parties. His experience includes corporate governance, antitrust, RICO, healthcare, environmental, bank/mail/wire fraud, national security, perjury and tax matters. He has tried dozens of cases in federal and state courts and has argued over thirty cases before the U.S. Court of Appeals. He served as an Assistant United States Attorney in Chicago for eleven years, handling many cases of national interest. He served as Illinois Inspector General for three years, overseeing regulatory investigations involving public health, the environment and public safety. He served for four years as Director of the Illinois State Police, a full-service law enforcement agency numbering over 2,500 sworn and 1,000 support and laboratory personnel. He has received many law enforcement and civic honors and awards including the U.S. Attorney General's Award for Distinguished Service, the U.S. Secret Service Honor Award, and the Anti-Defamation League's Civil Rights Award. He has lectured extensively at law schools, bar associations and civic organizations and has conducted training for state and local prosecutors and law enforcement officers. He serves on the Board of Advisors of the National Center for Missing and Exploited Children. He is co-author of Criminal Law for the Layman with Senior U.S. District Court Judge Marvin E. Aspen (USDC, N.D. Ill.) and Northwestern University School of Law Professor Fred E. Inbau (of blessed memory). Admitted to the Bar: Illinois

 

 

State Police, Illinois State Of

400 Armory
Springfield, IL 62794

 

 

 

 

 

 

 

Gaming Board's Acosta resigns

By: Patricia Richardson Aug. 21, 2001

Illinois Gaming Board Administrator Sergio E. Acosta announced Monday that he will resign from his position so he can return to his former job working as an Assistant U. S. Attorney in Chicago.

Gov. George Ryan appointed Mr. Acosta to his position in July, 1999.

During his tenure, the Gaming Board denied Chicago-based Emerald Casino Inc.'s bid to build a Rosemont casino.

Among other things, board members cited a staff report, which concluded that Emerald majority shareholders Donald and Kevin Flynn provided "false and misleading" information to the board and that shareholders in the company had associations with organized crime, as reasons for their decision (Chicagobusiness.com, Jan. 30).

Last month Gov. Ryan replaced two board members who opposed the Rosemont plan with new members (Crain's, July 2).

A spokesman for the Gaming Board denied that political pressures had anything to do with Mr. Acosta's resignation.

"This is strictly a personal decision," he said.

Mr. Acosta plans to remain in his position until Sept. 14. The governor will nominate candidates to fill the position, and the Gaming Board will select a replacement, the Gaming Board spokesman said.

 

 

 

 

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