Northwestern University will pay the United States $2.93 million to settle claims of cancer research grant fraud by a former researcher and physician at the university’s Robert H. Lurie Comprehensive Center for Cancer in Chicago. Northwestern agreed to the settlement in a federal False Claims Act lawsuit that was unsealed after the government investigated the claims made by a former employee and whistleblower who will receive a portion of the settlement.
Northwestern allegedly allowed one of its researchers, Dr. Charles L. Bennett, to submit false claims under research grants from the National Institutes of Health. The settlement covers improper claims that Dr. Bennett submitted for reimbursement from the federal grants for professional and consulting services, subcontracts, food, hotels, travel, and other expenses that benefited Dr. Bennett, his friends, and family from January 1, 2003, through August 31, 2010.
The allegations were made in a civil lawsuit filed under seal in 2009 by Melissa Theis, a former employee of the Lurie Cancer Center, who will receive $498,100 in settlement proceeds. Her allegations were investigated by the U.S. Department of Health and Human Services Officeof Inspector General, the Federal Bureau of Investigation, the National Institutes of Health, and the U.S. Attorney’s Office, resulting in the settlement announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. At the same time, the whistleblower lawsuit that initiated the case was unsealed. United States, et al., ex rel. Melissa Theis v. Northwestern University, Dr. Charles L. Bennett, et al., No. 09 C 1943 (N.D. Ill.).
Northwestern, which fully cooperated during the investigation, did not admit liability as part of the settlement.
“Allowing researchers to use federal grant money to pay for personal travel, hotels, and meals and to hire unqualified friends and relatives as ‘consultants’ violates the public trust and federal law,” Mr. Shapiro said. “This settlement, combined with the willingness of insiders to report fraud, should help deter such misconduct, but when it doesn’t, federal grant recipients who allow the system to be manipulated should know that we will aggressively pursue all available legal remedies,” he added.
“The mismanagement or improper expenditure of grant funds is unacceptable and will not be tolerated,” said Lamont Pugh, III, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General-Chicago Region. “The OIG will continue to diligently investigate allegations of this nature to ensure that taxpayer dollars are being properly utilized.”
Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation, said, “The FBI takes allegations of fraud seriously, especially those allegations from insiders who are often in the best position to detect wrongdoing long before it would otherwise come to the attention of law enforcement.”
Northwestern agreed to pay the settlement within 14 business days. The agreement covers allegations that the university submitted false claims to NIH for costs that Dr. Bennett incurred on his grant-funded research projects involving adverse drug-events, multiple myeloma drugs, a blood disorder known as thrombotic thrombocytopenic purpura, and quality of care for cancer patients. Dr. Bennett allegedly billed those federal grants for family trips, meals and hotels for himself and friends, and “consulting fees” for unqualified friends and family members, including his brother and cousin. At Dr. Bennett’s request, Northwestern also allegedly improperly subcontracted with various universities for services that were paid for by the NIH grants.
The United States was represented by Assistant U.S. Attorney Kurt N. Lindland.
Under the federal False Claims Act, defendants may be liable for triple the amount of actual damages and civil penalties between $5,500 and $11,000 for each violation. Individual whistleblowers may be eligible to receive between 15 and 30 percent of the amount of any recovery.
Get the latest breaking current news and explore our Historic Archive of articles focusing on The Mafia, Organized Crime, The Mob and Mobsters, Gangs and Gangsters, Political Corruption, True Crime, and the Legal System at TheChicagoSyndicate.com
Wednesday, July 31, 2013
Tuesday, July 30, 2013
Great Reviews for "The Sound of Things Falling" by Juan Gabriel Vasquez #MedellinCartel
From a global literary star comes a prize-winning tour de force – an intimate portrayal of the drug wars in Colombia.
Juan Gabriel Vásquez has been hailed not only as one of South America’s greatest literary stars, but also as one of the most acclaimed writers of his generation. In this gorgeously wrought, award-winning novel, Vásquez confronts the history of his home country, Colombia.
In the city of Bogotá, Antonio Yammara reads an article about a hippo that had escaped from a derelict zoo once owned by legendary Colombian drug kingpin Pablo Escobar. The article transports Antonio back to when the war between Escobar’s Medellín cartel and government forces played out violently in Colombia’s streets and in the skies above. Back then, Antonio witnessed a friend’s murder, an event that haunts him still. As he investigates, he discovers the many ways in which his own life and his friend’s family have been shaped by his country’s recent violent past. His journey leads him all the way back to the 1960s and a world on the brink of change: a time before narco-trafficking trapped a whole generation in a living nightmare.
Vásquez is “one of the most original new voices of Latin American literature,” according to Nobel Prize winner Mario Vargas Llosa, and The Sound of Things Falling is his most personal, most contemporary novel to date, a masterpiece that takes his writing—and will take his literary star—even higher
Juan Gabriel Vásquez has been hailed not only as one of South America’s greatest literary stars, but also as one of the most acclaimed writers of his generation. In this gorgeously wrought, award-winning novel, Vásquez confronts the history of his home country, Colombia.
In the city of Bogotá, Antonio Yammara reads an article about a hippo that had escaped from a derelict zoo once owned by legendary Colombian drug kingpin Pablo Escobar. The article transports Antonio back to when the war between Escobar’s Medellín cartel and government forces played out violently in Colombia’s streets and in the skies above. Back then, Antonio witnessed a friend’s murder, an event that haunts him still. As he investigates, he discovers the many ways in which his own life and his friend’s family have been shaped by his country’s recent violent past. His journey leads him all the way back to the 1960s and a world on the brink of change: a time before narco-trafficking trapped a whole generation in a living nightmare.
Vásquez is “one of the most original new voices of Latin American literature,” according to Nobel Prize winner Mario Vargas Llosa, and The Sound of Things Falling is his most personal, most contemporary novel to date, a masterpiece that takes his writing—and will take his literary star—even higher
* One of NPR’s 6 Best Books of the Summer
* Esquire recommends The Sound of Things Falling “if you read only one book this month”
* Starred early reviews from Publishers Weekly, Booklist, Library Journal, and Kirkus
* Lauded by Jonathan Franzen, E. L. Doctorow and many others
Monday, July 29, 2013
George Willis @NYPost_Willis Discusses "The Bite Fight: Tyson, Holyfield and the Night that Changed Boxing Forever" on #CrimeBeatRadio
On August 1st, George Willis, author of The Bite Fight: Tyson, Holyfield and the Night that Changed Boxing Forever to appear on Crime Beat Radio.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Thursday, July 25, 2013
An Offer That Can't Be Refused: Experience @TheMobMuseum and @NeonMuseum for Just One Great Price
For the first time, The Mob Museum, the National Museum of Organized Crime and Law Enforcement, and The Neon Museum are partnering to offer guests one ticket to two great museums for $30, an average savings of 30 percent. Guests now have the chance to book one daytime tour for the Neon Museum and then visit the Mob Museum with this special same-day offer. Both attractions are located in downtown Las Vegas, approximately 10 minutes apart from one another.
The Mob Museum presents an exciting and authentic view of organized crime’s impact on Las Vegas history and its unique imprint on the world while the Neon Museum is the world’s largest collection of neon signage displayed in a two-acre Neon Boneyard featuring 150 rescued architectural landmarks from iconic Las Vegas properties ranging from the 1930s to present day.
“We have worked hard to make this collaboration a reality,” says Jonathan Ullman, executive director and chief executive officer, The Mob Museum. “In doing so, our guests will encounter two unique and entertaining perspectives on the incredible events and iconic signage that made this city famous.”
With engaging exhibits, high-tech theater presentations and more than 600 artifacts, The Mob Museum houses the largest collection of Mob and related law enforcement memorabilia under one roof. During the guided Neon Museum tour, guests will learn about the unique stories regarding the personalities who created the signs, their inspirations, where and when the signs were made and the role they played in Las Vegas’ colorful history.
“We know our Museums offer distinct yet complementary versions of Las Vegas history, so it’s a thrill to offer guests one ticket that enables them to experience both sides in one day,” concludes Danielle Kelly, executive director, The Neon Museum.
Currently, The Neon Museum offers day-time guided tours seven days a week at 9 a.m., 9:30 a.m. and 10 a.m. The Mob Museum is also open seven days per week, 10 a.m. to 7 p.m. Sunday through Thursday and 10 a.m. to 8 p.m. Friday and Saturday.
To purchase tickets, go to www.TheMobMuseum.org or call (702) 229-2734.
The Mob Museum presents an exciting and authentic view of organized crime’s impact on Las Vegas history and its unique imprint on the world while the Neon Museum is the world’s largest collection of neon signage displayed in a two-acre Neon Boneyard featuring 150 rescued architectural landmarks from iconic Las Vegas properties ranging from the 1930s to present day.
“We have worked hard to make this collaboration a reality,” says Jonathan Ullman, executive director and chief executive officer, The Mob Museum. “In doing so, our guests will encounter two unique and entertaining perspectives on the incredible events and iconic signage that made this city famous.”
With engaging exhibits, high-tech theater presentations and more than 600 artifacts, The Mob Museum houses the largest collection of Mob and related law enforcement memorabilia under one roof. During the guided Neon Museum tour, guests will learn about the unique stories regarding the personalities who created the signs, their inspirations, where and when the signs were made and the role they played in Las Vegas’ colorful history.
“We know our Museums offer distinct yet complementary versions of Las Vegas history, so it’s a thrill to offer guests one ticket that enables them to experience both sides in one day,” concludes Danielle Kelly, executive director, The Neon Museum.
Currently, The Neon Museum offers day-time guided tours seven days a week at 9 a.m., 9:30 a.m. and 10 a.m. The Mob Museum is also open seven days per week, 10 a.m. to 7 p.m. Sunday through Thursday and 10 a.m. to 8 p.m. Friday and Saturday.
To purchase tickets, go to www.TheMobMuseum.org or call (702) 229-2734.
Monday, July 22, 2013
Nancy and Lisa Smith of the Big Blend Tour @BigBlendMag to Appear on #CrimeBeatRadio
On July 25th, Nancy and Lisa Smith of the Big Blend Tour appear on Crime Beat Radio.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Thursday, July 18, 2013
Stephen "Stippo" Rakes, Possible Witness at Whitey Bulger Mob Murder Trial, Found Dead of Disputed Suicide
Stephen "Stippo" Rakes, a possible witness in the murder trial of alleged crime boss James "Whitey" Bulger, has been found dead, authorities said.
The body of Rakes, 59, had "no obvious signs of trauma" and an autopsy is being performed to determine the cause of death, Middlesex District Attorney Marian Ryan and Lincoln, Mass., Police Chief Kevin Mooney announced today. The corpse was found on Mill Street in Lincoln yesterday at 1:30 p.m., police said.
Rakes had been on the witness list and had been eager to testify that Bulger threatened his family at gunpoint and forced him to turn his liquor store into a front for the Winter Hill Gang. But earlier this week prosecutors informed Rakes he would not be called to testify, a decision that left Rakes "despondent," a source close to his family told ABC News.
The judge overseeing the Bulger case hunkered down with lawyers in a confidential conference at the South Boston courthouse today where the trial is being held. Bulger, alleged to be a notorious and murderous crime boss and federal informant, is standing trial after being found on the lam in California two years ago.
Federal prosecutors said Rakes was supposed to testify that Bulger and associate Stephen Flemmi threatened his daughter at gunpoint, and took over his South Boston liquor store for Bulger's headquarters. Bulger sidekick Kevin Weeks testified last week Rakes' contention that Bulger's gang put a gun to his daughter's head was bogus.
Rakes comes from a storied South Boston family. His brother Joseph Rakes was photographed in Stanley Forman's Pulitzer Prize winning photograph charging at an African-American man on Boston's City Hall with the sharp end of the American flag – which became the symbol of the racial unrest during the city's anti-busing crisis.
News of his death investigation came on the same day that Stephen "The Rifleman" Flemmi was slated to take the stand against Bulger. The two men ran the Winter Hill Gang for decades while also working as informants for the FBI, according to prosecutors and courtroom testimony.
Police told the Rakes family the death appeared to be a suicide. But a source close to the Rakes family told ABC News that "he had no phone, no wallet, and police are still looking for his car." The body of the man found in Lincoln was positively identified as Rakes this morning after a fingerprint match, sources said.
Rakes' longtime friend Steve Davis, whose sister Debbie was allegedly murdered by Bulger, had met him for breakfast daily before court. Davis said he last saw Rakes Tuesday in court but then couldn't reach him all night Tuesday and yesterday he did not meet him in the courthouse cafeteria for breakfast.
"Stippo would not kill himself. Absolutely not,'' Davis told ABC News this morning. "He was looking forward to taking the stand. He told me over and over he had a big bombshell to drop. He had everything to live for and was looking forward to his day in court."
Davis - who lost his sister, brother and father to homicide, and whose daughter was killed in a drunk driver accident - was devastated by the news.
"It doesn't make sense,'' Davis said.
Thanks to GMA.
The body of Rakes, 59, had "no obvious signs of trauma" and an autopsy is being performed to determine the cause of death, Middlesex District Attorney Marian Ryan and Lincoln, Mass., Police Chief Kevin Mooney announced today. The corpse was found on Mill Street in Lincoln yesterday at 1:30 p.m., police said.
Rakes had been on the witness list and had been eager to testify that Bulger threatened his family at gunpoint and forced him to turn his liquor store into a front for the Winter Hill Gang. But earlier this week prosecutors informed Rakes he would not be called to testify, a decision that left Rakes "despondent," a source close to his family told ABC News.
The judge overseeing the Bulger case hunkered down with lawyers in a confidential conference at the South Boston courthouse today where the trial is being held. Bulger, alleged to be a notorious and murderous crime boss and federal informant, is standing trial after being found on the lam in California two years ago.
Federal prosecutors said Rakes was supposed to testify that Bulger and associate Stephen Flemmi threatened his daughter at gunpoint, and took over his South Boston liquor store for Bulger's headquarters. Bulger sidekick Kevin Weeks testified last week Rakes' contention that Bulger's gang put a gun to his daughter's head was bogus.
Rakes comes from a storied South Boston family. His brother Joseph Rakes was photographed in Stanley Forman's Pulitzer Prize winning photograph charging at an African-American man on Boston's City Hall with the sharp end of the American flag – which became the symbol of the racial unrest during the city's anti-busing crisis.
News of his death investigation came on the same day that Stephen "The Rifleman" Flemmi was slated to take the stand against Bulger. The two men ran the Winter Hill Gang for decades while also working as informants for the FBI, according to prosecutors and courtroom testimony.
Police told the Rakes family the death appeared to be a suicide. But a source close to the Rakes family told ABC News that "he had no phone, no wallet, and police are still looking for his car." The body of the man found in Lincoln was positively identified as Rakes this morning after a fingerprint match, sources said.
Rakes' longtime friend Steve Davis, whose sister Debbie was allegedly murdered by Bulger, had met him for breakfast daily before court. Davis said he last saw Rakes Tuesday in court but then couldn't reach him all night Tuesday and yesterday he did not meet him in the courthouse cafeteria for breakfast.
"Stippo would not kill himself. Absolutely not,'' Davis told ABC News this morning. "He was looking forward to taking the stand. He told me over and over he had a big bombshell to drop. He had everything to live for and was looking forward to his day in court."
Davis - who lost his sister, brother and father to homicide, and whose daughter was killed in a drunk driver accident - was devastated by the news.
"It doesn't make sense,'' Davis said.
Thanks to GMA.
Wednesday, July 17, 2013
In the Godfather's Garden: The long Life and Times of Richie 'The Boot" Boiardo on #CrimeBeatRadio
On July 18th, Richard Linnett discusses this book, In the Godfather's Garden: The long Life and Times of Richie 'The Boot" Boiardo, on Crime Beat Radio.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Modesto Cruz Sentenced to Prison Drug & Firearm Charges, Plot to Kill a Police Officer Revealed During Investigation
A Lynn, MA man who discussed murdering a Lynn Police officer was sentenced to 188 months in prison.
U.S. District Judge Denise J. Casper sentenced Modesto Cruz, 37, to 188 months in prison, followed by four years of supervised release. In March, Cruz pleaded guilty to conspiracy to distribute more than 100 grams of heroin, distribution of heroin, and being a felon in possession of a firearm.
In 2012, while Cruz was on pretrial release from a 2010 Lynn gun arrest, a cooperating witness working with the FBI’s North Shore Gang Task Force made four controlled buys of over 100 grams of heroin from Cruz. During the course of those recorded buys, Cruz and the cooperating witness talked about Cruz’s plan to kill one of the Lynn Police officers that had arrested him on the gun charge. An undercover law enforcement officer, posing as a hitman, was ultimately introduced to Cruz by the cooperating witness. Cruz and the undercover talked about the price and logistics of the hit on the police officer. Cruz was arrested the next day.
United States Attorney Carmen M. Ortiz; Jeffrey S. Sallet, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan Blodgett; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Lynn Police Chief Kevin Coppinger; and Essex County Sheriff Frank G. Cousins, Jr. made the announcement today.
The case was investigated by the FBI’s North Shore Gang Task Force, which consists of the FBI; the ATF; the Massachusetts State Police; the Lynn, Chelsea and Revere Police Departments; and the Essex County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorneys in Ortiz’s Organized Crime and Gang Strike Force Unit.
U.S. District Judge Denise J. Casper sentenced Modesto Cruz, 37, to 188 months in prison, followed by four years of supervised release. In March, Cruz pleaded guilty to conspiracy to distribute more than 100 grams of heroin, distribution of heroin, and being a felon in possession of a firearm.
In 2012, while Cruz was on pretrial release from a 2010 Lynn gun arrest, a cooperating witness working with the FBI’s North Shore Gang Task Force made four controlled buys of over 100 grams of heroin from Cruz. During the course of those recorded buys, Cruz and the cooperating witness talked about Cruz’s plan to kill one of the Lynn Police officers that had arrested him on the gun charge. An undercover law enforcement officer, posing as a hitman, was ultimately introduced to Cruz by the cooperating witness. Cruz and the undercover talked about the price and logistics of the hit on the police officer. Cruz was arrested the next day.
United States Attorney Carmen M. Ortiz; Jeffrey S. Sallet, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan Blodgett; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Lynn Police Chief Kevin Coppinger; and Essex County Sheriff Frank G. Cousins, Jr. made the announcement today.
The case was investigated by the FBI’s North Shore Gang Task Force, which consists of the FBI; the ATF; the Massachusetts State Police; the Lynn, Chelsea and Revere Police Departments; and the Essex County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorneys in Ortiz’s Organized Crime and Gang Strike Force Unit.
Tuesday, July 09, 2013
Book Signing and Presentation by Authors of “The Boston Mob Guide: Hit Men, Hoodlums & Hideouts”
On Fri., Aug. 16, and Sat., Aug. 17, Beverly Ford and Stephanie Schorow, veteran journalists and co-authors of “The Boston Mob Guide: Hit Men, Hoodlums and Hideouts” will sign copies of their book and present at The Mob Museum, the National Museum of Organized Crime and Law Enforcement. The book signing will take place at the Museum from 12 to 4 p.m. on Fri., Aug. 16 and their presentation will take place on Sat., Aug. 17, from 1 to 2 p.m.
They will discuss the stories behind their books: “The Boston Mob Guide: Hit Men, Hoodlums & Hideouts,” released by The History Press, Inc., is a primer about the wiles of Whitey Bulger, the murderous rages of Joe “The Animal” Barboza and the double dealings of Stephen “The Rifleman” Flemmi. Ford and Schorow profile Boston’s gangsters in crisp clear prose, with helpful cross-references. The Boston Mob Guide travels back to Prohibition with the story of bootlegger Charles “King” Solomon and the murderous standoff between the Irish Gustin Gang and the emerging North End Mafia. The guide unravels the complicated hits of the Winter Hill Gang and the Irish mob wars of the ‘60s and ‘70s.
Beverly Ford is the Boston-based journalist and author who has spent more than 20 years as a reporter and freelance writer for the Boston Herald, the New York Daily News, the London Times, the London Mirror, Access Magazine, Bloomberg News and other publications. She is currently following Bulger’s trial for the New York Daily News.
Stephanie Schorow is the author of “The Crime of the Century: How the Brink’s Robbers Stole Millions” and “The Hearts of Boston; East of Boston: Notes from the Harbor Islands” (The History Press, 2008); “Boston on Fire: A History of Fires and Firefighting in Boston” and “The Cocoanut Grove Fire.” She was the editor of “Boston’s Fire Trail: A Walk Through the City’s Fire and Firefighting History” (The History Press, 2007).
They will discuss the stories behind their books: “The Boston Mob Guide: Hit Men, Hoodlums & Hideouts,” released by The History Press, Inc., is a primer about the wiles of Whitey Bulger, the murderous rages of Joe “The Animal” Barboza and the double dealings of Stephen “The Rifleman” Flemmi. Ford and Schorow profile Boston’s gangsters in crisp clear prose, with helpful cross-references. The Boston Mob Guide travels back to Prohibition with the story of bootlegger Charles “King” Solomon and the murderous standoff between the Irish Gustin Gang and the emerging North End Mafia. The guide unravels the complicated hits of the Winter Hill Gang and the Irish mob wars of the ‘60s and ‘70s.
Beverly Ford is the Boston-based journalist and author who has spent more than 20 years as a reporter and freelance writer for the Boston Herald, the New York Daily News, the London Times, the London Mirror, Access Magazine, Bloomberg News and other publications. She is currently following Bulger’s trial for the New York Daily News.
Stephanie Schorow is the author of “The Crime of the Century: How the Brink’s Robbers Stole Millions” and “The Hearts of Boston; East of Boston: Notes from the Harbor Islands” (The History Press, 2008); “Boston on Fire: A History of Fires and Firefighting in Boston” and “The Cocoanut Grove Fire.” She was the editor of “Boston’s Fire Trail: A Walk Through the City’s Fire and Firefighting History” (The History Press, 2007).
Related Headlines
Books,
Charles Solomon,
Joe Barboza,
Mob Museum,
Seminars,
Steven Flemmi,
Whitey Bulger
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Monday, July 08, 2013
"Vinny Gorgeous: The Ugly Rise and Fall of a New York Mobster" on Crime Beat Radio
On July 11th, journalist Robert Destafano discusses his new book, Vinny Gorgeous: The Ugly Rise and Fall of a New York Mobster. Also Margaret McClain, Special Correspondent, reports on the Bulger Trial.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Sunday, July 07, 2013
The Money Noose: The Collapse Of MF Global Was No Accident
Jon Corzine and other leaders at MF Global walked into a disastrous situation with their eyes wide open. Now, respected Wall Street veteran Scott Skyrm offers a detailed account of what really happened, and why. The Money Noose: Jon Corzine and the Collapse of MF Global (Bricktower Press) is like a car wreck: it’s hard to look at, and at the same time, hard to look away.
“MF Global had the wrong business model and the wrong people, at precisely the wrong time….
We did not deal with our central problem of unprofitable core business operations and out-of-control overheads….” A senior member of the MF Fixed Income management team is just one of many sources insider Skyrm has uncovered to explain the self-inflicted collapse of MF Global.
The demise of MF Global is a chaotic story, one in which individual actions taken in and of themselves are relatively minor. But the sum of those individual actions equal the same end result. Skyrm goes further, exploring the question of how investors can protect themselves from this outcome in the future. The best answer, he says, is education. Concise and informed, The Money Noose is a must-read for anyone who takes investing seriously.
Scott E.D. Skyrm is a leading figure in the repo and securities finance markets today, and regularly quoted in The Wall Street Journal, The Financial Times, Bloomberg News Service, Reuters, Market News, and Dow Jones. He is highly regarded as a former salesman, trader, trading desk manager, and global business head in fixed-income, securities finance, and securities clearing and settlement.
He recently left Newedge, where he was their Global Head of Repo, Money Markets, and Fixed Income Clearing. He is now writing commentaries on the repo market, the short-end of the Treasury market, Federal Reserve policy and general Wall Street topics. He has worked on Wall Street for over 22 years and has taken billion dollar risks on the trading floor, managed a multi-billion dollar balance sheet, and consistently ran one of the most profitable trading groups at every firm where he worked. Prior to Newedge, he managed the repo desk at ING Barings, worked summers at Shearson Lehman/American Express and started his full-time career at The Bank of Tokyo.
For more, please visit the website: www.scottskyrm.com.
“MF Global had the wrong business model and the wrong people, at precisely the wrong time….
We did not deal with our central problem of unprofitable core business operations and out-of-control overheads….” A senior member of the MF Fixed Income management team is just one of many sources insider Skyrm has uncovered to explain the self-inflicted collapse of MF Global.
The demise of MF Global is a chaotic story, one in which individual actions taken in and of themselves are relatively minor. But the sum of those individual actions equal the same end result. Skyrm goes further, exploring the question of how investors can protect themselves from this outcome in the future. The best answer, he says, is education. Concise and informed, The Money Noose is a must-read for anyone who takes investing seriously.
Scott E.D. Skyrm is a leading figure in the repo and securities finance markets today, and regularly quoted in The Wall Street Journal, The Financial Times, Bloomberg News Service, Reuters, Market News, and Dow Jones. He is highly regarded as a former salesman, trader, trading desk manager, and global business head in fixed-income, securities finance, and securities clearing and settlement.
He recently left Newedge, where he was their Global Head of Repo, Money Markets, and Fixed Income Clearing. He is now writing commentaries on the repo market, the short-end of the Treasury market, Federal Reserve policy and general Wall Street topics. He has worked on Wall Street for over 22 years and has taken billion dollar risks on the trading floor, managed a multi-billion dollar balance sheet, and consistently ran one of the most profitable trading groups at every firm where he worked. Prior to Newedge, he managed the repo desk at ING Barings, worked summers at Shearson Lehman/American Express and started his full-time career at The Bank of Tokyo.
For more, please visit the website: www.scottskyrm.com.
Wednesday, July 03, 2013
Abdul Walji and Reniero Francisco, CEO and President of Investment Fund, Plead Guilty in Federal Court to Orchestrating Nearly $10 Million Fraud Scheme
Abdul Walji and Reniero Francisco, the chief executive officer and president, respectively, of Arista LLC (Arista), a California investment fund, pleaded guilty in New York federal court to defrauding and misappropriating nearly $10 million from more than 35 investors by misrepresenting the nature and performance of the fund and issuing fraudulent account statements to investors to cover up massive losses, announced Preet Bharara, the U.S. Attorney for the Southern District of New York. Walji also pleaded guilty to perpetrating a multi-million-dollar fraudulent scheme with pension plan funds that he managed through three California-based trusts: Allied Benefits Inc., Allied Benefits Trust, and Stone Lamm Trust (collectively, the Trusts). Both defendants were charged in December 2012 and pleaded guilty today before U.S. District Judge Denise Cote.
“Abdul Walji and Reniero Francisco told one lie after another in order to squeeze millions of dollars out of their investors, even as they misappropriated nearly $10 million, including at least $2.7 million solely for their own personal benefit,” said U.S. Attorney Bharara. “Walji even went a step further and orchestrated a second scheme that ultimately cost his victims another approximately $9.5 million. With today’s guilty pleas, they will begin to be held responsible for their actions and repay those wronged by their unlawful conduct.”
According to the three-count superseding information to which Walji pleaded guilty, the indictment to which Francisco pleaded guilty, the defendants’ plea agreements, and other documents in the public record:
The Arista Fraudulent Scheme
Arista began operations as an investment firm in February 2010, with its principal place of business in Newport Coast, California. In April 2011, Arista became a registered commodity pool operator with the U.S. Commodity Futures Trading Commission and a National Futures Association member.
In early 2010, Walji and Francisco began to solicit individuals to invest in Arista. From 2010 through 2011, the defendants carried out their fraudulent scheme through three methods. First, Walji and Francisco misrepresented to several Arista investors the nature of the company’s investments and the returns that investors would receive from investing in Arista. For example, Walji and Francisco falsely told investors that their money would be invested in safe, risk-free securities, when in fact, much of the money was invested in options and futures. Second, Walji and Francisco sent fraudulent account performance statements to Arista investors that misrepresented the value of their investments. In an effort to secure additional contributions, the defendants also concealed Arista’s trading losses and told investors that they were profiting from their investments when they were actually losing money. Finally, Walji and Francisco misappropriated at least $2.7 million from Arista’s investors through fees to which they were not entitled and which Walji and Francisco diverted for their own personal benefit. Based on their false representations, Walji and Francisco collected nearly $10 million from over 35 investors, and they ultimately misappropriated a large portion of the money.
From early 2008 through June 2013, Walji also perpetrated a separate fraudulent scheme using pension plan funds that he administered. Similar to the scheme set forth above, Walji executed his fraudulent scheme through three principal methods. First, Walji made oral misrepresentations to existing and potential clients of the Trusts concerning: (i) the nature of the Trusts’ pension plan investments; (ii) the investment value and past performance of the pension plans; and (iii) the source of funds distributed to plan participants who had reached retirement and/or who had requested distributions. Second, Walji distributed fraudulent statements to clients concerning the value of their accounts and the prior performance of their pension plans in order to forestall redemption requests, induce new clients to contribute to the plans, and induce existing clients to make additional contributions. As selected clients reached retirement age or requested disbursements, Walji sent those clients money that he represented to be proceeds of their individual pensions, when in fact, he knew that the purported disbursements were often funds contributed by other clients. Third, Walji misappropriated approximately $300,000 of client funds for his personal use. In total, this scheme caused losses to approximately 35 additional victims in an aggregate amount of approximately $9.5 million.
Walji, 60, of San Juan Capistrano, California, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, one count of commodities fraud, and one count of securities fraud. The securities fraud charge carries a maximum sentence of 20 years in prison; the commodities fraud charge carries a maximum sentencing of 10 years in prison; and the conspiracy charge carries a maximum sentence of five years in prison. Francisco, 57, of Newport Coast, California, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud and one count of securities fraud.
In connection with their guilty pleas, Walji consented to forfeit $13.6 million and Francisco consented to forfeit $4.1 million. The defendants also agreed to forfeit the proceeds of several bank and trading accounts.
U.S. Attorney Bharara praised the investigative work of the FBI and also thanked the U.S. Commodities Futures Trading Commission for its assistance.
This case is being handled by the U.S. Attorney’s Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the asset forfeiture related to the prosecution.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
“Abdul Walji and Reniero Francisco told one lie after another in order to squeeze millions of dollars out of their investors, even as they misappropriated nearly $10 million, including at least $2.7 million solely for their own personal benefit,” said U.S. Attorney Bharara. “Walji even went a step further and orchestrated a second scheme that ultimately cost his victims another approximately $9.5 million. With today’s guilty pleas, they will begin to be held responsible for their actions and repay those wronged by their unlawful conduct.”
According to the three-count superseding information to which Walji pleaded guilty, the indictment to which Francisco pleaded guilty, the defendants’ plea agreements, and other documents in the public record:
The Arista Fraudulent Scheme
Arista began operations as an investment firm in February 2010, with its principal place of business in Newport Coast, California. In April 2011, Arista became a registered commodity pool operator with the U.S. Commodity Futures Trading Commission and a National Futures Association member.
In early 2010, Walji and Francisco began to solicit individuals to invest in Arista. From 2010 through 2011, the defendants carried out their fraudulent scheme through three methods. First, Walji and Francisco misrepresented to several Arista investors the nature of the company’s investments and the returns that investors would receive from investing in Arista. For example, Walji and Francisco falsely told investors that their money would be invested in safe, risk-free securities, when in fact, much of the money was invested in options and futures. Second, Walji and Francisco sent fraudulent account performance statements to Arista investors that misrepresented the value of their investments. In an effort to secure additional contributions, the defendants also concealed Arista’s trading losses and told investors that they were profiting from their investments when they were actually losing money. Finally, Walji and Francisco misappropriated at least $2.7 million from Arista’s investors through fees to which they were not entitled and which Walji and Francisco diverted for their own personal benefit. Based on their false representations, Walji and Francisco collected nearly $10 million from over 35 investors, and they ultimately misappropriated a large portion of the money.
From early 2008 through June 2013, Walji also perpetrated a separate fraudulent scheme using pension plan funds that he administered. Similar to the scheme set forth above, Walji executed his fraudulent scheme through three principal methods. First, Walji made oral misrepresentations to existing and potential clients of the Trusts concerning: (i) the nature of the Trusts’ pension plan investments; (ii) the investment value and past performance of the pension plans; and (iii) the source of funds distributed to plan participants who had reached retirement and/or who had requested distributions. Second, Walji distributed fraudulent statements to clients concerning the value of their accounts and the prior performance of their pension plans in order to forestall redemption requests, induce new clients to contribute to the plans, and induce existing clients to make additional contributions. As selected clients reached retirement age or requested disbursements, Walji sent those clients money that he represented to be proceeds of their individual pensions, when in fact, he knew that the purported disbursements were often funds contributed by other clients. Third, Walji misappropriated approximately $300,000 of client funds for his personal use. In total, this scheme caused losses to approximately 35 additional victims in an aggregate amount of approximately $9.5 million.
Walji, 60, of San Juan Capistrano, California, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, one count of commodities fraud, and one count of securities fraud. The securities fraud charge carries a maximum sentence of 20 years in prison; the commodities fraud charge carries a maximum sentencing of 10 years in prison; and the conspiracy charge carries a maximum sentence of five years in prison. Francisco, 57, of Newport Coast, California, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud and one count of securities fraud.
In connection with their guilty pleas, Walji consented to forfeit $13.6 million and Francisco consented to forfeit $4.1 million. The defendants also agreed to forfeit the proceeds of several bank and trading accounts.
U.S. Attorney Bharara praised the investigative work of the FBI and also thanked the U.S. Commodities Futures Trading Commission for its assistance.
This case is being handled by the U.S. Attorney’s Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the asset forfeiture related to the prosecution.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Ingrid Lederhaas-Okun, Former Vice President of High-End Jewelry Company, Arrested and Charged with Stealing More Than $1 Million in Jewelry
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced the arrest of Ingrid Lederhaas-Okun, a former vice president of Product Development at a high-end jewelry company, for stealing more than $1.3 million worth of jewelry from her former employer. Lederhaas-Okun was arrested this morning at her residence in Darien, Connecticut, and will be presented in Manhattan federal court later today before U.S. Magistrate Judge James C. Francis.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, Ingrid Lederhaas-Okun went from a vice president at a high-end jewelry company to jewel thief. She abused her access to valuable jewelry in order to steal and then resell over one million dollars’ worth of items that she falsely represented as her own, as the complaint describes. Her arrest shows that no matter how privileged their position in a company, employees who steal will face the full consequences of the law.”
FBI Assistant Director in Charge George Venizelos said, “As alleged, Ingrid Lederhaas-Okun took advantage of the access her employment afforded her to expensive jewelry. She allegedly stole numerous items, sold them for over a million dollars, then engaged in a series of lies in an attempt to cover up the theft. A privileged position in a prestigious company does not insulate a thief from arrest and prosecution.”
According to the allegations in the complaint unsealed in Manhattan federal court:
From at least January 2011 until February 2013, Lederhaas-Okun worked as a vice president of Product Development at the midtown Manhattan headquarters of one of the world’s premier high-end jewelers (the “jewelry company”). Her duties and responsibilities included ensuring that product designs could be manufactured and, to that end, she had authority to check out jewelry belonging to the jewelry company for work-related reasons, such as to provide the jewelry to potential manufacturers to determine the cost of production.
Between November 2012 and February 2013, Lederhaas-Okun abused her position and authority at the jewelry company to check out more than 165 pieces of jewelry with a retail value of over $1.2 million, including numerous diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants. She then sold some, if not all, of this jewelry for $1.3 million to another company, a leading international buyer and reseller of jewelry with an office in midtown Manhattan (the “jewelry reseller”). The jewelry reseller paid for the merchandise that Lederhaas-Okun had stolen either by paying her or her husband in transactions arranged either by Lederhaas-Okun or a friend working on her behalf.
In addition to this jewelry, in November 2012, following an announcement by the jewelry company that it was going to undertake a full physical inventory review, Lederhaas-Okun also reported that approximately $1.5 million worth of jewelry that she had checked out would have to be written off. However, none of that jewelry was ever returned to the jewelry company, contrary to the usual practice of accounting for inventory, such as damaged jewelry, that would have to be written off because it had been rendered unusable in some way.
To conceal her theft, Lederhaas-Okun made repeated false statements to the jewelry company. For example, after her termination in February 2013, she told the jewelry company that she had only recently checked out the missing jewelry in anticipation of creating a PowerPoint presentation for her supervisor and that a draft of the presentation could be found on her office computer. However, the missing pieces of jewelry had been checked out months earlier, her supervisor was unaware of any such presentation being worked on by Lederhaas-Okun, and there was no draft presentation on her computer. In addition, Lederhaas-Okun claimed the jewelry in question could be found in a white envelope in her office, but a search of her office shortly after her departure did not yield any white envelope.
Lederhaas-Okun, 46, of Darien, Connecticut, is charged with one count of wire fraud, which carries a maximum penalty of 20 years in prison; and one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara also noted the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Rosemary Nidiry is in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, Ingrid Lederhaas-Okun went from a vice president at a high-end jewelry company to jewel thief. She abused her access to valuable jewelry in order to steal and then resell over one million dollars’ worth of items that she falsely represented as her own, as the complaint describes. Her arrest shows that no matter how privileged their position in a company, employees who steal will face the full consequences of the law.”
FBI Assistant Director in Charge George Venizelos said, “As alleged, Ingrid Lederhaas-Okun took advantage of the access her employment afforded her to expensive jewelry. She allegedly stole numerous items, sold them for over a million dollars, then engaged in a series of lies in an attempt to cover up the theft. A privileged position in a prestigious company does not insulate a thief from arrest and prosecution.”
According to the allegations in the complaint unsealed in Manhattan federal court:
From at least January 2011 until February 2013, Lederhaas-Okun worked as a vice president of Product Development at the midtown Manhattan headquarters of one of the world’s premier high-end jewelers (the “jewelry company”). Her duties and responsibilities included ensuring that product designs could be manufactured and, to that end, she had authority to check out jewelry belonging to the jewelry company for work-related reasons, such as to provide the jewelry to potential manufacturers to determine the cost of production.
Between November 2012 and February 2013, Lederhaas-Okun abused her position and authority at the jewelry company to check out more than 165 pieces of jewelry with a retail value of over $1.2 million, including numerous diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants. She then sold some, if not all, of this jewelry for $1.3 million to another company, a leading international buyer and reseller of jewelry with an office in midtown Manhattan (the “jewelry reseller”). The jewelry reseller paid for the merchandise that Lederhaas-Okun had stolen either by paying her or her husband in transactions arranged either by Lederhaas-Okun or a friend working on her behalf.
In addition to this jewelry, in November 2012, following an announcement by the jewelry company that it was going to undertake a full physical inventory review, Lederhaas-Okun also reported that approximately $1.5 million worth of jewelry that she had checked out would have to be written off. However, none of that jewelry was ever returned to the jewelry company, contrary to the usual practice of accounting for inventory, such as damaged jewelry, that would have to be written off because it had been rendered unusable in some way.
To conceal her theft, Lederhaas-Okun made repeated false statements to the jewelry company. For example, after her termination in February 2013, she told the jewelry company that she had only recently checked out the missing jewelry in anticipation of creating a PowerPoint presentation for her supervisor and that a draft of the presentation could be found on her office computer. However, the missing pieces of jewelry had been checked out months earlier, her supervisor was unaware of any such presentation being worked on by Lederhaas-Okun, and there was no draft presentation on her computer. In addition, Lederhaas-Okun claimed the jewelry in question could be found in a white envelope in her office, but a search of her office shortly after her departure did not yield any white envelope.
Lederhaas-Okun, 46, of Darien, Connecticut, is charged with one count of wire fraud, which carries a maximum penalty of 20 years in prison; and one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara also noted the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Rosemary Nidiry is in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Tuesday, July 02, 2013
Jeffrey Liskov Charged in Fraud Scheme That Caused More Than $3 Million in Losses
A Plymouth man was charged yesterday in connection with an investment fraud that caused retired clients more than $3 million in losses.
Jeffrey A. Liskov, 42, was charged in an information with investment adviser fraud.
It is alleged that from November 2008 through August 2010, Liskov defrauded retired advisory clients. In 2008, despite sustaining large personal losses in risky, highly volatile foreign currency exchange trading, Liskov is alleged to have begun advising retired clients with conservative investment goals to allow him to engage in such trading with a portion of their retirement money. Liskov received significant performance fees for conducting this volatile trading on behalf of clients based on short-term gains, without regard to the long-term performance of his trading in the clients’ accounts.
In late 2009, after sustaining large trading losses for long-time clients, Liskov started liquidating securities in the brokerage accounts of these clients and investing the proceeds in foreign currency exchange trading without the clients’ knowledge or authorization. In order to fund these investments behind his clients’ backs, Liskov used white-out correction fluid and other methods to create fraudulent documents that allowed him to open new foreign currency exchange trading accounts and/or to transfer funds from client brokerage accounts to foreign currency exchange trading accounts. This allowed Liskov to secretly engage in additional foreign currency exchange trading on behalf of long-time clients for whom he had already lost significant amounts of money—additional trading from which, in some instances, Liskov was able to pocket large performance fees. The trading Liskov engaged in with the funds from this fraud caused over $3 million in losses to the long-time clients but garnered Liskov over $200,000 in performance fees.
The statutory maximum offense for investment adviser fraud is five years in prison, followed by three years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz expressed appreciation for the significant assistance her office received from the U.S. Securities and Exchange Commission and also acknowledged the cooperation of the United States Commodity Futures Trading Commission. The case is being prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
The details contained in the information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Jeffrey A. Liskov, 42, was charged in an information with investment adviser fraud.
It is alleged that from November 2008 through August 2010, Liskov defrauded retired advisory clients. In 2008, despite sustaining large personal losses in risky, highly volatile foreign currency exchange trading, Liskov is alleged to have begun advising retired clients with conservative investment goals to allow him to engage in such trading with a portion of their retirement money. Liskov received significant performance fees for conducting this volatile trading on behalf of clients based on short-term gains, without regard to the long-term performance of his trading in the clients’ accounts.
In late 2009, after sustaining large trading losses for long-time clients, Liskov started liquidating securities in the brokerage accounts of these clients and investing the proceeds in foreign currency exchange trading without the clients’ knowledge or authorization. In order to fund these investments behind his clients’ backs, Liskov used white-out correction fluid and other methods to create fraudulent documents that allowed him to open new foreign currency exchange trading accounts and/or to transfer funds from client brokerage accounts to foreign currency exchange trading accounts. This allowed Liskov to secretly engage in additional foreign currency exchange trading on behalf of long-time clients for whom he had already lost significant amounts of money—additional trading from which, in some instances, Liskov was able to pocket large performance fees. The trading Liskov engaged in with the funds from this fraud caused over $3 million in losses to the long-time clients but garnered Liskov over $200,000 in performance fees.
The statutory maximum offense for investment adviser fraud is five years in prison, followed by three years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz expressed appreciation for the significant assistance her office received from the U.S. Securities and Exchange Commission and also acknowledged the cooperation of the United States Commodity Futures Trading Commission. The case is being prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
The details contained in the information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Muhammad (M.J.) Shaheed Sentenced to 21 Months in Prison for Participation in Securities Kickback Scheme
A Cleveland man was sentenced in federal court yesterday for using kickbacks in order to trigger investments in a thinly-traded stock.
Muhammad (M.J.) Shaheed, 45, was sentenced by U.S. District Judge Douglas P. Woodlock to 21 months in prison, to be followed by two years of supervised release and forfeiture of $30,000. In February 2013, Shaheed pleaded guilty to mail and wire fraud arising out his participation in an undercover FBI operation. Shaheed admitted to paying secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in a publicly traded company, Augrid Global Holdings Corporation, of which Shaheed was chief executive officer. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. What Shaheed did not know was that the purported investment fund representative was actually an undercover agent.
The conviction and sentence followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small, publicly traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Shaheed is one of 15 defendants charged criminally with having participated in the undercover operation. Nine of those charged have now pleaded guilty, and two were convicted after a jury trial.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities throughout the course of the investigation and prosecution.
U.S. Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes; ensure just and effective punishment for those who perpetrate financial crimes; combat discrimination in the lending and financial markets; and recover proceeds for victims of financial crimes. For more information about the task force visit www.stopfraud.gov.
Muhammad (M.J.) Shaheed, 45, was sentenced by U.S. District Judge Douglas P. Woodlock to 21 months in prison, to be followed by two years of supervised release and forfeiture of $30,000. In February 2013, Shaheed pleaded guilty to mail and wire fraud arising out his participation in an undercover FBI operation. Shaheed admitted to paying secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in a publicly traded company, Augrid Global Holdings Corporation, of which Shaheed was chief executive officer. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. What Shaheed did not know was that the purported investment fund representative was actually an undercover agent.
The conviction and sentence followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small, publicly traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Shaheed is one of 15 defendants charged criminally with having participated in the undercover operation. Nine of those charged have now pleaded guilty, and two were convicted after a jury trial.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities throughout the course of the investigation and prosecution.
U.S. Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes; ensure just and effective punishment for those who perpetrate financial crimes; combat discrimination in the lending and financial markets; and recover proceeds for victims of financial crimes. For more information about the task force visit www.stopfraud.gov.
Monday, July 01, 2013
David Albright of the Institute of Science and International Security Provides an Update on Iran's Nuclear Weapons Program on Crime Beat Radio
On July 4th, in a command appearance, David Albright of the Institute of Science and International Security discusses Iran’s suspected nuclear weapons program.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Jose Gustavo Orellana-Torres, AKA “Diablito,” Former Leader of MS-13 Street Gang, Sentenced to Prison
On Friday, United States District Judge Joseph F. Bianco sentenced Jose Gustavo Orellana-Torres, also known as “Diablito,” the former leader of the Coronados clique of La Mara Salvatrucha, also known as the MS-13 street gang, to 365 months’ imprisonment following his September 25, 2012 guilty plea to racketeering, including predicate acts relating to the May 26, 2009 murder of Dexter Acheampong in Central Islip, New York, and the July 5, 2009 attempted murder of a suspected rival gang member in Roosevelt, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
According to his plea allocution and documents previously filed in the case, on May 26, 2009, Orellana-Torres attended a Coronados clique meeting in Brentwood, New York, and the MS-13 members agreed to “put in work” for the gang by killing rival gang members. Orellana-Torres and several other MS-13 members drove around Brentwood and Central Islip looking for rival gang members, and Orellana-Torres was armed with a .38 caliber revolver. While in the vicinity of East Maple Street in Central Islip, the MS-13 members observed Dexter Acheampong, whom they did not know but believed, based on the color of his skin and the neighborhood he was walking in, to be a member of the Bloods street gang. In fact, Mr. Acheampong did not belong to any street gang. Orellana-Torres stepped out of the car and fired four shots at Mr. Acheampong with the .38 caliber revolver, striking the victim twice in the back as he tried to escape. Mr. Acheampong was found dead in the driveway of a home on East Maple Street the next morning.
Just over a month later, on July 4-5, 2009, Orellana-Torres attended another MS-13 meeting, this time in Roosevelt, New York. The MS-13 members again discussed killing rival gang members. Orellana-Torres, who possessed the same .38 caliber revolver that night, and other MS-13 members drove around Roosevelt, New York, looking for rival gang members. The MS-13 members observed a man, whose identity is known to the government but is not being disclosed in order to protect his safety, whom they believed to be a rival gang member. One of the other MS-13 members fired several shots at the man, striking him once in the hand.
“The MS-13 street gang has become infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional depravity. Orellana-Torres and his co-conspirators targeted Dexter Acheampong and another young man, whom they did not even know, because they believed them to be rival gang members,” stated United States Attorney Lynch. “This sentence should make clear that gang members will pay a heavy price for such cold, calculated acts of violence.”
FBI Assistant Director in Charge Venizelos stated, “We cannot overstate our commitment to investigating MS-13 and other gangs on Long Island. As the case of Orellana-Torres shows, MS-13 is not about ethnic pride, it is a violent, murderous horde. It is hard to imagine a more wanton disregard for human life than shooting a person in the back because the color of his skin makes you think he may be a rival gang member.”
Orellana-Torres’s conviction is the latest in a series of federal prosecutions by this office targeting New York members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and the Rockville Centre Police Department.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
Defendant:
Jose Gustavo Orellana-Torres, aka Diablito
Age: 28
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
According to his plea allocution and documents previously filed in the case, on May 26, 2009, Orellana-Torres attended a Coronados clique meeting in Brentwood, New York, and the MS-13 members agreed to “put in work” for the gang by killing rival gang members. Orellana-Torres and several other MS-13 members drove around Brentwood and Central Islip looking for rival gang members, and Orellana-Torres was armed with a .38 caliber revolver. While in the vicinity of East Maple Street in Central Islip, the MS-13 members observed Dexter Acheampong, whom they did not know but believed, based on the color of his skin and the neighborhood he was walking in, to be a member of the Bloods street gang. In fact, Mr. Acheampong did not belong to any street gang. Orellana-Torres stepped out of the car and fired four shots at Mr. Acheampong with the .38 caliber revolver, striking the victim twice in the back as he tried to escape. Mr. Acheampong was found dead in the driveway of a home on East Maple Street the next morning.
Just over a month later, on July 4-5, 2009, Orellana-Torres attended another MS-13 meeting, this time in Roosevelt, New York. The MS-13 members again discussed killing rival gang members. Orellana-Torres, who possessed the same .38 caliber revolver that night, and other MS-13 members drove around Roosevelt, New York, looking for rival gang members. The MS-13 members observed a man, whose identity is known to the government but is not being disclosed in order to protect his safety, whom they believed to be a rival gang member. One of the other MS-13 members fired several shots at the man, striking him once in the hand.
“The MS-13 street gang has become infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional depravity. Orellana-Torres and his co-conspirators targeted Dexter Acheampong and another young man, whom they did not even know, because they believed them to be rival gang members,” stated United States Attorney Lynch. “This sentence should make clear that gang members will pay a heavy price for such cold, calculated acts of violence.”
FBI Assistant Director in Charge Venizelos stated, “We cannot overstate our commitment to investigating MS-13 and other gangs on Long Island. As the case of Orellana-Torres shows, MS-13 is not about ethnic pride, it is a violent, murderous horde. It is hard to imagine a more wanton disregard for human life than shooting a person in the back because the color of his skin makes you think he may be a rival gang member.”
Orellana-Torres’s conviction is the latest in a series of federal prosecutions by this office targeting New York members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and the Rockville Centre Police Department.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
Defendant:
Jose Gustavo Orellana-Torres, aka Diablito
Age: 28
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