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Home Source documents United States v. Annette Johnson, Indictment (No. 1:26-cr-00559, Northern District of Illinois)

United States v. Annette Johnson, Indictment (No. 1:26-cr-00559, Northern District of Illinois)

Summary

Indictment returned by the Special November 2025 grand jury in the Northern District of Illinois, Eastern Division, and filed in case No. 1:26-cr-00559 against Annette Johnson, President of the Board of Education of East Aurora School District 131. It charges mail fraud, wire fraud and honest services fraud. The indictment alleges that from about August 2021 to May 2023 Johnson accepted about $1,300,000 paid by a reseller, Reseller 1, to a company where she was chief financial officer. In return she allegedly steered the district, which had received federal ESSER pandemic relief funds, to buy air purifiers from Reseller 1 for about $2,700,188.62, influenced other board members' votes and hid her interest. The government seeks forfeiture including a money judgment of about $1,300,000.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     Case: 1:26-cr-00559 Document #: 1 Filed: 10/27/26 Page 1 of 14 PageID #:1


                                                                  FIL/2E7/2D026
                 UNITED STATES DISTRICT COURT
                                                                      10
                                                                          N
                                                               S G. BRUTO   T
                 NORTHERN DISTRICT OF ILLINOIS LERTKH,OUM.SA. DISTRICT COUR
                                                     C
                       EASTERN DIVISION
                                         1:26-cr-00559
 UNITED STATES OF AMERICA                Judge Rebecca R. Pallmeyer
                                   No. Magistrate Judge Young B. Kim
       v.                                RANDOM / Cat. 3
                                   Violations: Title 18, United States
 ANNETTE JOHNSON                   Code, Sections 1341, 1343, and
                                   1346

                                    COUNT ONE

      The SPECIAL NOVEMBER 2025 GRAND JURY charges:

      1.     At times material to this indictment:

                         East Aurora School District 131

             a.     East Aurora School District 131 (“District 131”) was a public

school district and unit of local government governed by the District 131 Board of

Education (the “District 131 Board”) and located in the Northern District of Illinois.

             b.     The District 131 Board consisted of seven volunteer members

elected to four-year terms, including a Board President whose responsibilities

included presiding at all Board meetings, focusing Board meeting agendas on

appropriate content, and administering the Oath of Office to new Board members.

             c.     District 131 contracted with certain vendor-companies to provide

materials that supported the district’s operations and initiatives.

             d.     During the 2021-2022 school year, District 131 received

Elementary and Secondary School Emergency Relief (“ESSER”) federal grant funds,

which funds were set aside by Congress as part of the Coronavirus Aid Relief, and

Economic Security (“CARES”) Act and were intended to address the impact that the
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COVID-19 pandemic had on elementary and secondary schools across the United

States.

                  Applicable District 131 Policies and Procedures

             e.       District 131 had a Policy Manual in place, which set forth the

purchasing and contracting policies employed by District 131, including the following:

                     i.     The District 131 Board could approve major expenditures

and payment of obligations.

                    ii.     Every District 131 purchase and contract would “support a

recognized District function or purpose as well as provide for good quality products

and services at the lowest cost.”

                   iii.     Supplies, materials, or work involving an expenditure in

excess of $25,000 would comply with State law bidding procedure, unless specifically

exempted.

             f.       The District 131 Policy Manual also set forth standards of conduct

applicable to District 131 Board members, including the following:

                     i.     Board members were required to take an Oath of Office in

which they swore or affirmed to, among other things, “respect taxpayer interests by

serving as a faithful protector” of District 131’s assets.

                    ii.     Board members were to adhere to a Code of Conduct that

set forth certain standards and principles, including, avoiding “any conflict of interest




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or the appearance of impropriety which could result from [their] position,” and not

using “[their] Board membership for personal gain or publicity.”

                  iii.     No Board member was allowed to participate in the

selection, award, or administration of a contract supported by a federal award if he

or she had a real or apparent conflict of interest.

                  iv.      Board members were required to annually file a Statement

of Economic Interests form with the Kane County Clerk, which form would disclose,

among other things, certain income received during the preceding calendar year, as

well as the nature and source of such income.

           Defendant and Other Relevant Entities and Individuals

             g.      Defendant ANNETTE JOHNSON was the President of the

District 131 Board and member of the District 131 Finance and Personnel Committee.

As the President of the District 131 Board, JOHNSON was an elected official who

owed a duty of honest services to District 131.

             h.      JOHNSON was also the Chief Financial Officer of Company 1 and

affiliated companies, Company 2 and Company 3. Company 1 had a bank account

ending in 2968 at St. Charles Bank & Trust Company, N.A. (the “Company 1 Bank

Account”). JOHNSON was a signatory on the Company 1 Bank Account.

             i.      Individual A was the owner of Company 1, Company 2, and

Company 3. Individual A was a resident of the Northern District of Illinois.

JOHNSON was in a romantic relationship with Individual A.


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             j.     Company 2 paid Company 1 employees, including JOHNSON.

             k.     Business 1 was a company that marketed and sold air purifiers

(the “Business 1 Air Purifiers”) through a network of independent business owners.

             l.     Reseller 1 was an independent company that sold Business 1 Air

Purifiers. Individual B was the Chief Executive Officer of Reseller 1. Reseller 1 had

a bank account ending in 9067 at Bremmer Bank (the “Reseller 1 Bank Account”).

                                    The Scheme

      2.     Beginning no later than in or around August 2021, and continuing until

at least in or around May 2023, at Aurora, in the Northern District of Illinois, Eastern

Division, and elsewhere,

                               ANNETTE JOHNSON,

defendant herein, as well as others known and unknown to the grand jury, knowingly

devised, intended to devise, and participated in a scheme to defraud District 131 of

the intangible right to the honest services of defendant by means of materially false

and fraudulent pretenses, representations, promises, and omissions through bribes

and kickbacks, which scheme is further described below.

      3.     It was part of the scheme that JOHNSON agreed to accept and accepted

a payment of approximately $1,300,000 from Reseller 1 to Company 1, in exchange

for performing acts in JOHNSON’s position as the District 131 Board President to

benefit Reseller 1, namely, approving the quote from Reseller 1 for the sale of

Business 1 Air Purifiers to District 131 for Board consideration, influencing and


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agreeing to influence other District 131 Board members in connection with their votes

to approve the purchase of Business 1 Air Purifiers from Reseller 1 for approximately

$2,700,188.62, voting to approve the purchase of Business 1 Air Purifiers from

Reseller 1, and voting to approve payments from District 131 to Reseller 1 related to

the purchase of Business 1 Air Purifiers from Reseller 1.

       4.     It was further part of the scheme that JOHNSON steered District 131

to purchase the Business 1 Air Purifiers from Reseller 1 and concealed from District

131 employees and Board members her involvement in the transaction and the

payment that she expected to receive from Reseller 1.

       5.     It was further part of the scheme that on or about September 3, 2021,

Individual B established an account for JOHNSON with Business 1 under the name

of Company 1 to enable JOHNSON to purchase Business 1 Air Purifiers.

       6.     It was further part of the scheme that on or about September 7, 2021,

JOHNSON used the account that Individual B established for Company 1 to purchase

sample wearable air purifiers from Business 1 and caused Business 1 to ship the

samples to District 131, in advance of a meeting between Individual B, District 131

officials, and others.

       7.     It was further part of the scheme that JOHNSON arranged for

Individual B to meet with District 131 officials on or about September 14, 2021, for

the purpose of giving Individual B an audience for the sale of the Business 1 Air

Purifiers from Reseller 1 to District 131. Before making these arrangements,


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JOHNSON did not disclose to District 131 that she had a personal and economic

interest in District 131’s purchase of Business 1 Air Purifiers from Reseller 1.

      8.     It was further part of the scheme that Individual B presented Reseller

1 as a sole source technology provider of Business 1 Air Purifiers to District 131

personnel and the District 131 Board.

      9.     It was further part of the scheme that on or about September 17, 2021,

JOHNSON was invited to participate in a Zoom call with Individual A, Individual B,

and individuals employed by Individual A and Business 1, which call was entitled

“East Aurora School District 131 discussion.”

      10.    It was further part of the scheme that after the Zoom call on or about

September 17, 2021, Individual B sent JOHNSON, and individuals employed by

Individual A and Business 1, a quote for the Business 1 Air Purifiers and

accompanying materials and claimed to need JOHNSON’s approval of the materials

before submitting them to District 131. In an accompanying email, Individual B

confirmed with JOHNSON that the “margin” or the portion of the proceeds from the

sale of Business 1 Air Purifiers to District 131 that Company 3 would receive was

more than $1,000,000.

      11.    It was further part of the scheme that on or about September 18, 2021,

JOHNSON forwarded to Individual A an email communication about the sale of the

Business 1 Air Purifiers, which included a District 131 internal memorandum, the




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quote for the sale, and a letter from Individual B to District 131.

      12.    It was further part of the scheme that in the hours leading up to a

District 131 Board meeting on or about September 20, 2021, Individual B emailed

“key bullet points” about the Business 1 Air Purifiers to JOHNSON and no other

District 131 official or Board member, in order to assist JOHNSON to persuade other

District 131 Board members to vote to approve the purchase of Business 1 Air

Purifiers from Reseller 1.

      13.    It was further part of the scheme that at the District 131 Board meeting

on or about September 20, 2021, JOHNSON spoke in favor of and voted to approve

the purchase of the Business 1 Air Purifiers from Reseller 1, in the amount of

approximately $2,700,187, without disclosing to the Board or other District 131

officials that she had a personal and economic interest in the sale.

      14.    It was further part of the scheme that at a District 131 Board meeting

on or about November 1, 2021, JOHNSON voted to approve a payment in the amount

of approximately $2,700,188.62 from District 131 to Reseller 1 for the Business 1 Air

Purifiers, without disclosing to the Board or other District 131 officials that she had

a personal and economic interest in the payment.

      15.    It was further part of the scheme that on or about November 1, 2021,

JOHNSON caused District 131 personnel to issue a $2,700,188.62 check, using

ESSER funds, from District 131 to Reseller 1, as payment for the Business 1 Air




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Purifiers.

      16.     It was further part of the scheme that on or about November 2, 2021,

JOHNSON and Individual B caused District 131 to mail to Individual B in Wisconsin,

the $2,700,188.62 check from District 131 to Reseller 1.

      17.     It was further part of the scheme that on or about November 4, 2021,

one day after the $2,700,188.62 check from District 131 was deposited into the

Reseller 1 Bank Account, JOHNSON directed Individual B to send the previously

agreed-upon payment from Reseller 1 to Company 1 at an address in Elk Grove

Village, Illinois, which payment Individual B labeled a “rebate.”

      18.     It was further part of the scheme that, on or about November 5, 2021,

Individual B caused a $1,300,000 check, labeled “commission,” to be mailed to

Company 1, as directed by JOHNSON, without disclosing the payment to District 131

officials or Board members.

      19.     It was further part of the scheme that on or about November 8, 2021,

JOHNSON deposited or caused to be deposited the $1,300,000 check into the

Company 1 Bank Account.

      20.     It was further part of the scheme that, in the calendar year of 2021,

Company 2 paid JOHNSON in excess of $7,500 in connection with JOHNSON’s work

for Company 2 and Company 1, the entity that had received the payment from

Reseller 1.




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      21.    It was further part of the scheme that, in order to conceal and disguise

the existence, source, and purpose of the payment that Individual B caused to be

made to Company 1, and JOHNSON’s income relating to her work for Company 1, in

or around April 2022, JOHNSON filed a Statement of Economic Interest with Kane

County, which form failed to disclose Company 1 or Company 2 as a source of income.

      22.    It was further part of the scheme that, in or around September 2022,

Individual B emailed JOHNSON regarding an “Extended warranty” for the Business

1 Air Purifiers, and attached documents related to the purchase of replacement parts

for the Business 1 Air Purifiers.

      23.    It was further part of the scheme that at a District 131 Board meeting

on or about May 15, 2023, JOHNSON voted to approve a payment in the amount of

approximately $201,077 from District 131 to Reseller 1 related to annual services for

the Business 1 Air Purifiers that District 131 had purchased in or around September

2021, and for which Company 1 had received $1,300,000.

      24.    It was further part of the scheme that on or about May 15, 2023,

JOHNSON and Individual B caused District 131 to issue a check in the amount of

$201,077 made payable to Reseller 1 for annual services for the Business 1 Air

Purifiers.




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      25.   It was further part of the scheme that JOHNSON misrepresented,

concealed, and hid, and caused to be misrepresented, concealed, and hidden, the

existence and purpose of the scheme and the acts done in furtherance of the scheme.

      26.   On or about November 2, 2021, in the Northern District of Illinois,

Eastern Division, and elsewhere,

                               ANNETTE JOHNSON,

defendant herein, for the purpose of executing the scheme, knowingly caused to be

deposited with a commercial interstate carrier, namely, United Parcel Service, a

package to be sent and delivered to Individual A in Somerset, Wisconsin, which

package contained a check from District 131 to Reseller 1 in the amount of

approximately $2,700,188.62;

      In violation of Title 18, United States Code, Sections 1341 and 1346.




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                                    COUNT TWO

      The SPECIAL NOVEMBER 2025 GRAND JURY further charges:

      1.    The allegations in paragraphs 1 through 25 of Count One of this

indictment are incorporated here.

      2.    On or about November 6, 2021, in the Northern District of Illinois,

Eastern Division, and elsewhere,

                              ANNETTE JOHNSON,

defendant herein, for the purpose of executing the scheme, knowingly caused to be

delivered by U.S. mail and commercial interstate carrier, a package addressed to

Company 1 in Elk Grove Village, Illinois, which package contained a check from

Reseller 1 to Company 1 in the amount of approximately $1,300,000;

      In violation of Title 18, United States Code, Sections 1341 and 1346.




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                                   COUNT THREE

      The SPECIAL NOVEMBER 2025 GRAND JURY further charges:

      1.    The allegations in paragraphs 1 through 25 of Count One of this

indictment are incorporated here.

      2.    On or about November 8, 2021, in the Northern District of Illinois,

Eastern Division, and elsewhere,

                              ANNETTE JOHNSON,

defendant herein, for the purpose of executing the scheme, knowingly caused to be

transmitted by means of wire communication in interstate commerce, certain

writings, signs, and signals, namely, the processing of the check from Reseller 1 to

Company 1 in the amount of approximately $1,300,000 into the Company 1 Account;

      In violation of Title 18, United States Code, Sections 1343 and 1346.




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                          FORFEITURE ALLEGATION

      The SPECIAL NOVEMBER 2025 GRAND JURY alleges:

      1.     Counts One through Three of this indictment are incorporated here for

the purpose of alleging forfeiture to the United States pursuant to Title 18, United

States Code, Section 981(a)(1)(C), and Title 28, United States Code, Section 2461(c).

      2.     As a result of her violations of Title 18, United States Code, Sections

1341, 1343, and 1346, as alleged in Counts One through Three of this indictment,

                               ANNETTE JOHNSON,

defendant herein, shall forfeit to the United States any and all right, title, and

interest she has in any property, real and personal, which constitutes or is derived

from proceeds traceable to the offenses in Counts One through Three.

      3.     The property to be forfeited by defendant as a result of her violation of

Title 18, United States Code, Sections 1341, 1343, and 1346, includes, but is not

limited to, a personal money judgment in the amount of approximately $1,300,000.

      4.     If any of the property described above, as a result of any act or omission

by a defendant: cannot be located upon the exercise of due diligence, has been

transferred or sold to, or deposited with, a third party; has been placed beyond the

jurisdiction of the Court; has been substantially diminished in value; or has been

commingled with other property which cannot be divided without difficulty, the

United States of America shall be entitled to forfeiture of substitute property, as

provided in Title 21, United States Code, Section 853(p), as incorporated by Title 18,

United States Code, Section 982(b)(1).
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      All pursuant to Title 18, United States Code, Section 981(a)(1)(C), and Title

28, United States Code, Section 2461(c).

                                                A TRUE BILL:



                                                ________________________
                                                FOREPERSON


________________________________________
UNITED STATES ATTORNEY




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