The Chicago Police Football Team the “Enforcers” are entering their ninth season. The Enforcers participate in the National Public Safety Football League, which is made up of nineteen teams from all over the country. Head coach Greg Zaragoza welcomes several new and exciting players to the team. The Enforcers are made up primarily of sworn members of the Chicago Police Department and also have players who are Cook County Sheriff Officers and other local agencies. The Enforcers play to raise money for various local charities.
The NPSFL plays full contact football following NCAA rules. The Chicago Police Enforcers are a recognized 501c3 organization.
The Enforcers start the season with their annual Kick-Off party Sunday March 2nd at 115 Bourbon St. 3359 W. 115th St from 3-8 pm. The Enforcers are coming off a 2-2 season in 2013. The Enforcers 5th annual "First Responders Memorial Game" is June 7th, at Brother Rice High School. The First Responders Memorial game is between the Enforcers and the Chicago Fire Department team the Blaze. The First Responders game is always exciting with the Enforcers triumphant in 2 of those games. The game will honor members of both departments who paid the ultimate sacrifice, and also this year the game will honor the 1st Responders from Washington Illinois. The Enforcers are looking forward to making a run at another National Championship. Media members welcome.
Season Schedule
March 29th, 2014 at Columbus Marauders @ 1pm
Canal Winchester High School
Canal Winchester, Ohio
April 12th, 2014 Cleveland Warriors @ 3pm
St. Rita High School
7740 S. Western Ave. Chicago IL
May 3rd, 2014 NYDOC Boldest @ 5pm "Gold Star Game"
Lane Tech High School
2501 W. Addison Ave. Chicago, IL
May 17th, 2014 at Philadelphia Blue Flame
Northeast High School
Philadelphia PA.
June 7th, 2014 CFD Blaze @ 3pm "First Responders Game"
Brother Rice High School
10001 S. Pulaski, Chicago, IL
Friday, February 28, 2014
Thursday, February 27, 2014
Hakim Lowery, Fugitive Member of Bloods Street Gang, Arrested
Aaron T. Ford, the Special Agent in Charge of the FBI’s Newark Field Office; William Fraher, the Acting Chief of Police of the Paterson Police Department; and Gary F. Giardina, the Chief of Police of the Clifton Police Department, announced the arrest of Hakim Lowery, 35, a fugitive and alleged ranking member of the Fruit Town Brims set of the Bloods street gang operating in Passaic County, principally in the town of Paterson, New Jersey.
Lowery is one of 28 members and associates of the Paterson Bloods named in a superseding indictment superseding indictment charges Lowery and others with distribution and possession with the intent to distribute heroin, “crack” cocaine, and powder cocaine. Three of the defendants were also charged with brandishing firearms in furtherance of drug trafficking activity and with being felons unlawfully in possession of firearms.
A number of the defendants were arrested in a weekend sweep in Paterson. As of Monday, Lowery was the only defendant who remained at large. The FBI, Paterson Police Department, and Clifton Police Departments continued their investigation and were able to locate and arrest Lowery on Tuesday evening in Paterson, New Jersey.
Lowery is one of 28 members and associates of the Paterson Bloods named in a superseding indictment superseding indictment charges Lowery and others with distribution and possession with the intent to distribute heroin, “crack” cocaine, and powder cocaine. Three of the defendants were also charged with brandishing firearms in furtherance of drug trafficking activity and with being felons unlawfully in possession of firearms.
A number of the defendants were arrested in a weekend sweep in Paterson. As of Monday, Lowery was the only defendant who remained at large. The FBI, Paterson Police Department, and Clifton Police Departments continued their investigation and were able to locate and arrest Lowery on Tuesday evening in Paterson, New Jersey.
Friday, February 21, 2014
Scott McLean and John A. Vassen Sentenced to Prison for Tax Sale Scheme in Exchange for Campaign Contributions to County Treasurer
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Scott McLean, 51, of Belleville, Illinois, and John A. Vassen, 56, of O’Fallon, Illinois, were sentenced in the United States District Court in East St. Louis, Illinois, for violating the Sherman Antitrust Act.
Evidence presented at the sentencing hearing established that McLean and Vassen participated in a price fixing scheme orchestrated by former Madison County Treasurer Fred Bathon. Bathon structured the Madison County tax sale to permit the tax buyers to charge distressed homeowners inflated interest rates from 2005 to 2008 in exchange for campaign contributions.
“These tax buyers repeatedly gouged financially distressed homeowners with confiscatory interest rates enabled by a corrupt treasurer. This crime was a toxic combination of public corruption fueled by private greed. The people of Southern Illinois deserve better,” said United States Attorney Wigginton. U.S. Attorney Wigginton praised the work of the Metro East Public Corruption Task Force, including agents from the IRS and the FBI. “These dedicated men and women work long hours for little pay to keep the citizens of our district safe from those who seek only to enrich themselves at our expense.”
McLean was sentenced to 18 months in prison, to serve three years’ supervised release, pay a $25,000 fine, and a special assessment of $100. Vassen was sentenced to 24 months in prison, to serve three years’ supervised release, pay a $25,000 fine and a special assessment of $100. Both sentences were in excess of the recommendation from the United States Sentencing Guidelines. A third tax buyer, Barrett R. Rochman, 70, of Makonda, Illinois, also pled guilty to participating in noncompetitive tax sales on October 17, 2013. Rochman is scheduled to be sentenced on March 25, 2014.
The former treasurer of Madison County, Illinois, Fred Bathon pled guilty to antitrust charges on February 5, 2013. Bathon was sentenced on December 6, 2013, to 30 months in prison, two years’ supervised release, a fine of $20,000, and a special assessment of $100.
The charges allege that at Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien attached to the owner’s property. The bid opens at no more than the statutory maximum of 18 percent and through a competitive bidding process can be driven as low as zero percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which corresponds to higher profits.
For the tax sales conducted in 2005 to 2008, Fred Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18 percent. The tax buyers who pled guilty today were charged with making campaign donations to Bathon in exchange for receiving property tax liens at non-competitive interest rates.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14 to 15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18 percent, which represented 99.03 percent of the property tax liens auctioned. During the tax auction occurring November 13 to 14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18 percent, which represented 96.86 percent of the property tax liens auctioned.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, and the Federal Bureau of Investigation. The case is being prosecuted by U.S. Attorney Stephen R. Wigginton and Assistant United States Attorney Steven D. Weinhoeft.
Evidence presented at the sentencing hearing established that McLean and Vassen participated in a price fixing scheme orchestrated by former Madison County Treasurer Fred Bathon. Bathon structured the Madison County tax sale to permit the tax buyers to charge distressed homeowners inflated interest rates from 2005 to 2008 in exchange for campaign contributions.
“These tax buyers repeatedly gouged financially distressed homeowners with confiscatory interest rates enabled by a corrupt treasurer. This crime was a toxic combination of public corruption fueled by private greed. The people of Southern Illinois deserve better,” said United States Attorney Wigginton. U.S. Attorney Wigginton praised the work of the Metro East Public Corruption Task Force, including agents from the IRS and the FBI. “These dedicated men and women work long hours for little pay to keep the citizens of our district safe from those who seek only to enrich themselves at our expense.”
McLean was sentenced to 18 months in prison, to serve three years’ supervised release, pay a $25,000 fine, and a special assessment of $100. Vassen was sentenced to 24 months in prison, to serve three years’ supervised release, pay a $25,000 fine and a special assessment of $100. Both sentences were in excess of the recommendation from the United States Sentencing Guidelines. A third tax buyer, Barrett R. Rochman, 70, of Makonda, Illinois, also pled guilty to participating in noncompetitive tax sales on October 17, 2013. Rochman is scheduled to be sentenced on March 25, 2014.
The former treasurer of Madison County, Illinois, Fred Bathon pled guilty to antitrust charges on February 5, 2013. Bathon was sentenced on December 6, 2013, to 30 months in prison, two years’ supervised release, a fine of $20,000, and a special assessment of $100.
The charges allege that at Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien attached to the owner’s property. The bid opens at no more than the statutory maximum of 18 percent and through a competitive bidding process can be driven as low as zero percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which corresponds to higher profits.
For the tax sales conducted in 2005 to 2008, Fred Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18 percent. The tax buyers who pled guilty today were charged with making campaign donations to Bathon in exchange for receiving property tax liens at non-competitive interest rates.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14 to 15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18 percent, which represented 99.03 percent of the property tax liens auctioned. During the tax auction occurring November 13 to 14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18 percent, which represented 96.86 percent of the property tax liens auctioned.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service, and the Federal Bureau of Investigation. The case is being prosecuted by U.S. Attorney Stephen R. Wigginton and Assistant United States Attorney Steven D. Weinhoeft.
Former Police Officer Convicted of Striking and Kneeing Handcuffed Arrestee in the Head and Body
A former Plymouth police sergeant was convicted of using excessive force on an arrestee and covering up his actions by falsifying police reports related to the incident.
After three hours of deliberation, a jury convicted Shawn Coughlin, 47, of deprivation of constitutional rights under color of law and falsifying a record to impede a federal investigation.
On November 19, 2011, at the Plymouth police station, Coughlin assaulted an arrestee who was in a holding cell and handcuffed behind his back. Coughlin struck the arrestee in the head and kneed him in the body, resulting in bodily injury. Evidence at trial also established that Coughlin falsified the official police incident reports regarding the incident.
“A critical component of effective law enforcement is trust,” said U.S. Attorney Carmen M. Ortiz. “Quality policing cannot exist if citizens can’t trust that the police who are sworn to protect them use excessive force and lie about their actions. It is very important to our entire system of justice that individuals who violate that trust are held accountable.”
“This investigation shows that the FBI, Plymouth Police, and the United States Attorney’s Office place a high priority on investigating civil rights violations including violations by those sworn to protect and serve. The FBI was proud to work with the Plymouth Police Department and the United States Attorney’s Office on this investigation to ensure that justice was served. Nothing justifies or excuses Mr. Couglin’s actions because it is never acceptable to break the law in order to enforce it,” said Vince Lisi, Special Agent in Charge of the FBI.
Sentencing is scheduled for May 20, 2014. Coughlin faces up to 10 years in prison, to be followed by three years of supervised release, and a $250,000 fine on the civil rights conviction. Coughlin faces up to 20 years in prison, to be followed by three years of supervised release, and a $250,000 fine on the obstruction conviction.
After three hours of deliberation, a jury convicted Shawn Coughlin, 47, of deprivation of constitutional rights under color of law and falsifying a record to impede a federal investigation.
On November 19, 2011, at the Plymouth police station, Coughlin assaulted an arrestee who was in a holding cell and handcuffed behind his back. Coughlin struck the arrestee in the head and kneed him in the body, resulting in bodily injury. Evidence at trial also established that Coughlin falsified the official police incident reports regarding the incident.
“A critical component of effective law enforcement is trust,” said U.S. Attorney Carmen M. Ortiz. “Quality policing cannot exist if citizens can’t trust that the police who are sworn to protect them use excessive force and lie about their actions. It is very important to our entire system of justice that individuals who violate that trust are held accountable.”
“This investigation shows that the FBI, Plymouth Police, and the United States Attorney’s Office place a high priority on investigating civil rights violations including violations by those sworn to protect and serve. The FBI was proud to work with the Plymouth Police Department and the United States Attorney’s Office on this investigation to ensure that justice was served. Nothing justifies or excuses Mr. Couglin’s actions because it is never acceptable to break the law in order to enforce it,” said Vince Lisi, Special Agent in Charge of the FBI.
Sentencing is scheduled for May 20, 2014. Coughlin faces up to 10 years in prison, to be followed by three years of supervised release, and a $250,000 fine on the civil rights conviction. Coughlin faces up to 20 years in prison, to be followed by three years of supervised release, and a $250,000 fine on the obstruction conviction.
Wednesday, February 19, 2014
Details on Former Cook County Commissioner Joseph Moreno's Federal Prison Sentence
Former Cook County Commissioner Joseph Mario Moreno was sentenced to 11 years in federal prison for engaging in a series of public and personal corruption schemes over a span of three years. Moreno pleaded guilty on July 1, 2013, to conspiracy to commit extortion after he was initially charged in late June 2012, about 18 months after he left public office.
Moreno, 61, of Chicago, a lawyer who served more than 16 years as an elected county commissioner until December 2010, was sentenced to 132 months in prison, and he was ordered to forfeit $100,000 and pay a total of more than $138,000 in restitution by U.S. District Judge Gary Feinerman. Moreno was ordered to begin serving his sentence on April 21.
“Mr. Moreno was not a reluctant participant in these schemes; he was an eager participant,” Judge Feinerman said, adding that Moreno “embraced them with gusto and pursued them with vigor.”
Moreno “repeatedly pursued his own interests at the expense of those he was supposed to serve. . . . [H]e extorted a reputable business and corrupted the highest levels of Cook County government, the Town of Cicero, and a private hospital. He also evaded taxes and suborned perjury so he could reduce his child support obligations. And when he was confronted about his crimes, he obstructed justice by providing the government with false invoices in an effort to conceal his criminal conduct,” Assistant U.S. Attorneys Christopher J. Stetler and Megan C. Church wrote in a government sentencing memo.
Notably, they argued, Moreno conceived a motto of governing that captured his corrupt approach to public office: “I don’t want to be a hog. I just want to be a pig. Hogs get slaughtered. Pigs get fat.”
Moreno pleaded guilty to conspiracy to extort an unnamed company that was awarded a contract to help improve Cook County Hospital’s revenue cycle into using his friend and co-defendant, Ron Garcia, and his business, Chicago Medical Equipment & Supply, Inc., as a minority subcontractor in return for a $100,000 bribe. Garcia forgave a $100,000 mortgage loan to Moreno in exchange for Moreno’s efforts to steer the lucrative sub-contract to Garcia’s company, and Moreno tried to disguise the bribe by claiming that he had repaid the purported loan.
In pleading guilty, Moreno also agreed that he sought to obtain orders of Dermafill bandages from Cook County in return for kickbacks while he and his staffer, co-defendant and former Chicago Alderman Ambrosio Medrano, were Cook County officials; sought to obtain approval for a waste-transfer station in return for kickbacks while a Town of Cicero official; and evaded his federal income taxes between 2007 and 2010 by misreporting the income from his law office.
According to sentencing documents, between 2008 and 2010, Moreno engaged in those schemes, as well as five other schemes to:
Medrano, 60, of Chicago, the former alderman who later worked on Moreno’s countystaff, was sentenced last month to a total of 13 years in federal prison after pleading guilty in one case involving Moreno and being convicted at trial last year in a separate corruption case that stemmed from the same FBI undercover investigation.
Garcia, 54, of Homer Glen, and two other co-defendants, Gerald W. Lombardi, 61, of Darien, and his son, Jerry A. Lombardi, 34, of Downers Grove, who were agents of Chasing Lions, LLC, a disabled-veterans-owned business in Lisle that sold the Dermafill bandages, pleaded guilty to their roles in the scheme and are awaiting sentencing. A sixth co-defendant, Stanley Wozniak, 51, of Chicago, is awaiting the disposition of charges.
The Moreno sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
Moreno, 61, of Chicago, a lawyer who served more than 16 years as an elected county commissioner until December 2010, was sentenced to 132 months in prison, and he was ordered to forfeit $100,000 and pay a total of more than $138,000 in restitution by U.S. District Judge Gary Feinerman. Moreno was ordered to begin serving his sentence on April 21.
“Mr. Moreno was not a reluctant participant in these schemes; he was an eager participant,” Judge Feinerman said, adding that Moreno “embraced them with gusto and pursued them with vigor.”
Moreno “repeatedly pursued his own interests at the expense of those he was supposed to serve. . . . [H]e extorted a reputable business and corrupted the highest levels of Cook County government, the Town of Cicero, and a private hospital. He also evaded taxes and suborned perjury so he could reduce his child support obligations. And when he was confronted about his crimes, he obstructed justice by providing the government with false invoices in an effort to conceal his criminal conduct,” Assistant U.S. Attorneys Christopher J. Stetler and Megan C. Church wrote in a government sentencing memo.
Notably, they argued, Moreno conceived a motto of governing that captured his corrupt approach to public office: “I don’t want to be a hog. I just want to be a pig. Hogs get slaughtered. Pigs get fat.”
Moreno pleaded guilty to conspiracy to extort an unnamed company that was awarded a contract to help improve Cook County Hospital’s revenue cycle into using his friend and co-defendant, Ron Garcia, and his business, Chicago Medical Equipment & Supply, Inc., as a minority subcontractor in return for a $100,000 bribe. Garcia forgave a $100,000 mortgage loan to Moreno in exchange for Moreno’s efforts to steer the lucrative sub-contract to Garcia’s company, and Moreno tried to disguise the bribe by claiming that he had repaid the purported loan.
In pleading guilty, Moreno also agreed that he sought to obtain orders of Dermafill bandages from Cook County in return for kickbacks while he and his staffer, co-defendant and former Chicago Alderman Ambrosio Medrano, were Cook County officials; sought to obtain approval for a waste-transfer station in return for kickbacks while a Town of Cicero official; and evaded his federal income taxes between 2007 and 2010 by misreporting the income from his law office.
According to sentencing documents, between 2008 and 2010, Moreno engaged in those schemes, as well as five other schemes to:
- enrich himself through kickbacks in return for passing a “green” resolution while a Cook County Commissioner;
- obtain medical transcription business from Cook County in return for kickbacks concealed as legal fees;
- obtain orders of Dermafill bandages from a private hospital by bribing a hospital official; enrich himself through kickbacks while a Town of Cicero official;
- reduce his child-support obligations by suborning perjury during a court hearing.
Medrano, 60, of Chicago, the former alderman who later worked on Moreno’s countystaff, was sentenced last month to a total of 13 years in federal prison after pleading guilty in one case involving Moreno and being convicted at trial last year in a separate corruption case that stemmed from the same FBI undercover investigation.
Garcia, 54, of Homer Glen, and two other co-defendants, Gerald W. Lombardi, 61, of Darien, and his son, Jerry A. Lombardi, 34, of Downers Grove, who were agents of Chasing Lions, LLC, a disabled-veterans-owned business in Lisle that sold the Dermafill bandages, pleaded guilty to their roles in the scheme and are awaiting sentencing. A sixth co-defendant, Stanley Wozniak, 51, of Chicago, is awaiting the disposition of charges.
The Moreno sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
Was the copyright to "Breakshot: A Life in the 21st Century American Mafia" Stolen?
A mobster turned snitch claims in court that Simon & Schuster stole rights to his 2009 autobiography by registering the copyright under his co-author's and former publisher's name.
Kenny "Kenji" Gallo, who claims to be a former member of the Colombo Crime Family, says Simon & Schuster in 2010 registered the copyright to "Breakshot: A Life in the 21st Century American Mafia," by Gallo and Matthew Randazzo.
Randazzo wrote the book with Gallo after reading the reformed mobster's blog Hollywoodmafia, written while Gallo was in the witness protection program.
The Japanese-Italian-American says he already had a first draft of the book and 1,000 blog posts to draw upon by the time Randazzo entered the picture.
Gallo sued the book's first publisher, Phoenix Books, claiming it released the book without paying him and then sold reprint rights to Simon & Schuster for $10,000. They settled that one, according to the new complaint.
Randazzo assigned his copyright in the work to Gallo in November 2010, but Simon & Schuster's paperback credits Randazzo and Phoenix as copyright holders, according to the lawsuit.
He accuses the publisher of trading on his "celebrity status and notoriety as a former high-ranking mobster."
A blurb on the back cover calls the book "The explosive true story of one of the most controversial, violent and unlikely gangsters in American history ... and how he flipped to help the FBI bring the mob down."
Gallo estimates that Simon & Schuster has sold thousands of copies of the paperback through its division Pocket Star. He claims the publisher blew off his complaints that he owns rights to the book.
"To date, Gallo has absolutely no control over the paperback book sales of his autobiography (which took him four years to write) or any way to earn money from said sales - or even any way to profit from the paperback edition's rights - because Simon & Schuster refuses to communicate with him," the lawsuit states. (Parentheses in complaint.)
Gallo claims that Hollywood won't touch a screenplay he wrote based on his life story because of uncertainty over who owns the copyright. "Because of this 'limbo' status, Gallo is also unable to seek republication of the paperback with other publishers, much less for a sequel based on the book, despite expressed interest to that end. Nor is he willing to risk self-publishing the book through Amazon.com or though his own popular blog website until those matters are formally resolved," the lawsuit states.
He seeks an injunction and damages for copyright infringement.
Gallo is represented by Abraham Labbad of Pasadena.
Kenny "Kenji" Gallo, who claims to be a former member of the Colombo Crime Family, says Simon & Schuster in 2010 registered the copyright to "Breakshot: A Life in the 21st Century American Mafia," by Gallo and Matthew Randazzo.
Randazzo wrote the book with Gallo after reading the reformed mobster's blog Hollywoodmafia, written while Gallo was in the witness protection program.
The Japanese-Italian-American says he already had a first draft of the book and 1,000 blog posts to draw upon by the time Randazzo entered the picture.
Gallo sued the book's first publisher, Phoenix Books, claiming it released the book without paying him and then sold reprint rights to Simon & Schuster for $10,000. They settled that one, according to the new complaint.
Randazzo assigned his copyright in the work to Gallo in November 2010, but Simon & Schuster's paperback credits Randazzo and Phoenix as copyright holders, according to the lawsuit.
He accuses the publisher of trading on his "celebrity status and notoriety as a former high-ranking mobster."
A blurb on the back cover calls the book "The explosive true story of one of the most controversial, violent and unlikely gangsters in American history ... and how he flipped to help the FBI bring the mob down."
Gallo estimates that Simon & Schuster has sold thousands of copies of the paperback through its division Pocket Star. He claims the publisher blew off his complaints that he owns rights to the book.
"To date, Gallo has absolutely no control over the paperback book sales of his autobiography (which took him four years to write) or any way to earn money from said sales - or even any way to profit from the paperback edition's rights - because Simon & Schuster refuses to communicate with him," the lawsuit states. (Parentheses in complaint.)
Gallo claims that Hollywood won't touch a screenplay he wrote based on his life story because of uncertainty over who owns the copyright. "Because of this 'limbo' status, Gallo is also unable to seek republication of the paperback with other publishers, much less for a sequel based on the book, despite expressed interest to that end. Nor is he willing to risk self-publishing the book through Amazon.com or though his own popular blog website until those matters are formally resolved," the lawsuit states.
He seeks an injunction and damages for copyright infringement.
Gallo is represented by Abraham Labbad of Pasadena.
Oil Services Company Former CEO Pleads Guilty to Foreign Bribery Charges
A former chief executive officer of PetroTiger Ltd.—a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey—admitted his role in a scheme to pay bribes to foreign government officials and defraud PetroTiger.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement.
Knut Hammarskjold, 42, of Greenville, South Carolina, a former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Gregory Weisman, 42, of Moorestown, New Jersey, the former general counsel of PetroTiger, pleaded guilty to the same charges on November 8, 2013. Charges remain pending against Joseph Sigelman, 42, of Miami, Florida, and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money, and substantive violations of the FCPA.
According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on November 8, 2013. Hammarskjold was arrested November 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on January 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold, and Weisman were unsealed on January 6, 2014.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. Sentencing for Hammarskjold is scheduled for May 16, 2014.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement.
Knut Hammarskjold, 42, of Greenville, South Carolina, a former co-CEO of PetroTiger, pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an information charging him with conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to commit wire fraud. Gregory Weisman, 42, of Moorestown, New Jersey, the former general counsel of PetroTiger, pleaded guilty to the same charges on November 8, 2013. Charges remain pending against Joseph Sigelman, 42, of Miami, Florida, and the Philippines, the other former co-CEO of PetroTiger, for conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money, and substantive violations of the FCPA.
According to the charges, the defendants allegedly paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, the defendants first attempted to make the payments to a bank account in the name of the foreign official’s wife for purported consulting services she did not perform. The charges allege that Sigelman and Hammarskjold provided Weisman invoices including her bank account information. The defendants made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed.
In addition, court documents allege that the defendants attempted to secure kickback payments at the expense of PetroTiger’s board members. According to the criminal charges, the defendants were negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating a higher purchase price for the acquisition, two of the owners of the target company agreed to kick back to the defendants a portion of the increased purchase price. According to the charges, to conceal the kickback payments, the defendants had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments, and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on November 8, 2013. Hammarskjold was arrested November 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on January 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold, and Weisman were unsealed on January 6, 2014.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit wire fraud count carries a maximum penalty of 20 years in prison and a fine of the greater of $250,000 or twice the value gained or lost. Sentencing for Hammarskjold is scheduled for May 16, 2014.
More than $37 Million in Fake Merchandise Netted in #OperationTeamPlayer
Federal officials announced the final record-breaking results of Operation Team Player, the nationwide law enforcement effort aimed at combatting counterfeit sports merchandise.
Special agents from U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) teamed with officers from U.S. Customs and Border Protection (CBP) to target, seize and investigate criminal businesses smuggling international shipments of counterfeit merchandise as it entered the United States. Agents also targeted warehouses, stores, flea markets, online stores and street vendors. The operation, which began in June, netted 397,140 items including fake jerseys, ball caps, T-shirts, jackets and other souvenirs. The items had a manufacturer's suggested retail price (MSRP) of more than $37.8 million – more than the previous six Super Bowl enforcement efforts combined.
HSI and CBP also teamed with the U.S. Postal Inspection Service (USPIS), and state and local police departments around the country – all in partnership with the NFL and other major sports leagues. The operation was coordinated by the National Intellectual Property Rights Coordination Center (IPR Center) in Washington, D.C.
"The incredible results this year are a tribute to the teamwork displayed between our agencies working together at the IPR Center," said HSI Executive Associate Director James Dinkins. "But it is also an eye-opening reminder of the breadth of this significant problem that we face. Counterfeiters are crippling the U.S. economy, robbing small businesses of much-needed income during tough economic times."
Following the Super Bowl, in addition to the items seized, law enforcement officers made 76 arrests in relation to Operation Team Player: three at the federal level and 73 at the state and local level. Additionally, 163 counterfeit tickets with an estimated value of $169,200 were also seized. During a one-week blitz at various shipping facilities, CBP officers were able to seize more than 73,000 items with an MSRP of more than $7 million. HSI special agents also conducted enforcement operations at the victory parade in Seattle seizing an additional 1,300 items.
"The continued coordination of the federal partners is integral to the success of Intellectual Property Rights enforcement," said CBP Assistant Commissioner Susan T. Mitchell. "Together with partners like ICE HSI, USPIS, and the IPR Center we are able to protect American businesses from criminal activities that affect their bottom line."
For the first time, Mexico's Servicio de Administracion Tributaria (SAT) also conducted operations related to sports merchandise seizures during Super Bowl week. Working with the IPR Center, SAT conducted "Operation Fumble" in some of the largest cities of Mexico, seizing more than 3,000 items worth more than 1.5 million pesos.
Special agents from U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) teamed with officers from U.S. Customs and Border Protection (CBP) to target, seize and investigate criminal businesses smuggling international shipments of counterfeit merchandise as it entered the United States. Agents also targeted warehouses, stores, flea markets, online stores and street vendors. The operation, which began in June, netted 397,140 items including fake jerseys, ball caps, T-shirts, jackets and other souvenirs. The items had a manufacturer's suggested retail price (MSRP) of more than $37.8 million – more than the previous six Super Bowl enforcement efforts combined.
HSI and CBP also teamed with the U.S. Postal Inspection Service (USPIS), and state and local police departments around the country – all in partnership with the NFL and other major sports leagues. The operation was coordinated by the National Intellectual Property Rights Coordination Center (IPR Center) in Washington, D.C.
"The incredible results this year are a tribute to the teamwork displayed between our agencies working together at the IPR Center," said HSI Executive Associate Director James Dinkins. "But it is also an eye-opening reminder of the breadth of this significant problem that we face. Counterfeiters are crippling the U.S. economy, robbing small businesses of much-needed income during tough economic times."
Following the Super Bowl, in addition to the items seized, law enforcement officers made 76 arrests in relation to Operation Team Player: three at the federal level and 73 at the state and local level. Additionally, 163 counterfeit tickets with an estimated value of $169,200 were also seized. During a one-week blitz at various shipping facilities, CBP officers were able to seize more than 73,000 items with an MSRP of more than $7 million. HSI special agents also conducted enforcement operations at the victory parade in Seattle seizing an additional 1,300 items.
"The continued coordination of the federal partners is integral to the success of Intellectual Property Rights enforcement," said CBP Assistant Commissioner Susan T. Mitchell. "Together with partners like ICE HSI, USPIS, and the IPR Center we are able to protect American businesses from criminal activities that affect their bottom line."
For the first time, Mexico's Servicio de Administracion Tributaria (SAT) also conducted operations related to sports merchandise seizures during Super Bowl week. Working with the IPR Center, SAT conducted "Operation Fumble" in some of the largest cities of Mexico, seizing more than 3,000 items worth more than 1.5 million pesos.
As result of #OperationTresCiudades, Eddi Ramirez Convicted of Running Large-Scale Cocaine Trafficking Network in Central Illinois
A jury has found a Paxton, Illinois man, Eddi Ramirez, 32, guilty of running a cocaine trafficking network that regularly distributed large quantities of cocaine throughout central Illinois including Decatur, Springfield, and Champaign. The jury deliberated approximately one and one-half hours before finding Ramirez, aka “Migo,” guilty of conspiring with others to distribute cocaine and distribution of cocaine.
During the seven days of trial, the evidence the government presented included that obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield and Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin. That evidence established that Ramirez led a drug organization from 2011 to September 2012 that was responsible for the importation of more than 200 pounds of cocaine from Mexico.
Evidence further established that Ramirez used multiple sources in Texas, Arizona, and Chicago, various couriers to transport the cocaine to central Illinois and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Illionis, as a “stash” house to store and package cocaine and to move drug money.
Sentencing for Ramirez is scheduled for May 21, 2014. Ramirez faces a statutory mandatory minimum penalty of 20 years to life in prison because the government has filed notice that Ramirez has a prior felony drug conviction. Ramirez has remained in law enforcement custody since his arrest in September 2012.
In total, 19 defendants have been charged for their ties to Rameriz and his operation. All the defendants, except three who remain fugitives, have previously entered pleas of guilty for their respective roles in the trafficking network or their relation to it.
Known as Operation Tres Ciudades (Three Cities) the Organized Crime Drug Enforcement Task Force (OCDETF) was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases in the Central District of Illinois, Springfield and Urbana Divisions.
“Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, devoted significant resources and tireless work toward this successful prosecution,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “Their hard work and teamwork over the past few years has shut down a major pipeline that pumped volumes of illegal drugs into our community. They truly served the community.”
Special Agent in Charge Jack Riley, DEA, Chicago Division, praised the hard work and dedication of all the law enforcement officers and prosecutors who worked tirelessly to bring this case to a successful conclusion. “The conviction of Eddi Ramirez sends a clear message that the law enforcement community will use every legal means available to bring those who traffic narcotics to justice. Our top priority is dismantling these drug trafficking organizations who peddle their poison in our communities. Our joint efforts in this investigation have made a real impact on the supply of drugs in Central Illinois,” he added.
Decatur Police Chief Todd Walker said, “The conviction of Eddi Ramirez demonstrates yet again the importance and value of local and federal law enforcement authorities working together. I appreciate the work of the investigators and the prosecutor who worked diligently to expose and shut down a major narcotics trafficking organization. This was a complex investigation that transcended state lines into Decatur and Central Illinois. As a result of these efforts, the local drug trade in our region was disrupted and the quality of life improved for those jurisdictions impacted by this substantial drug organization.”
David A. Ford, Special Agent in Charge, FBI Springfield, stated, “The Organized Crime Drug Enforcement Task Force (OCDETF) program was established to mount a comprehensive attack against organized drug trafficking. The guilty verdict in this international drug trafficking case demonstrates the strong working partnership between federal and local law enforcement agencies and shows the effectiveness of working together on the same team. We are committed to pursuing violent drug traffickers in order to keep our neighborhoods safe for our citizens.”
“This successful prosecution has significantly slowed the flow of these illegal drugs into Illinois,” said Illinois Attorney General Lisa Madigan. “My office’s investigators will continue to work closely with our federal law enforcement partners to crack down on the drug trade in our communities.”
In addition to Ramirez, defendants charged as a result of, or related to Operation Tres Ciudades (Three Cities), include the following:
In addition to the defendants charged with Ramirez, another seven defendants charged had ties to Ramirez:
At sentencing, the offense of conspiracy to distribute five or more kilograms of cocaine carries a statutory mandatory minimum penalty of 10 years to life in prison. If a defendant has one or more prior felony drug convictions, the mandatory minimum penalty is 20 years to life in prison. With two or more prior felony drug convictions, the statutory penalty is life in prison.
During the seven days of trial, the evidence the government presented included that obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield and Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin. That evidence established that Ramirez led a drug organization from 2011 to September 2012 that was responsible for the importation of more than 200 pounds of cocaine from Mexico.
Evidence further established that Ramirez used multiple sources in Texas, Arizona, and Chicago, various couriers to transport the cocaine to central Illinois and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Illionis, as a “stash” house to store and package cocaine and to move drug money.
Sentencing for Ramirez is scheduled for May 21, 2014. Ramirez faces a statutory mandatory minimum penalty of 20 years to life in prison because the government has filed notice that Ramirez has a prior felony drug conviction. Ramirez has remained in law enforcement custody since his arrest in September 2012.
In total, 19 defendants have been charged for their ties to Rameriz and his operation. All the defendants, except three who remain fugitives, have previously entered pleas of guilty for their respective roles in the trafficking network or their relation to it.
Known as Operation Tres Ciudades (Three Cities) the Organized Crime Drug Enforcement Task Force (OCDETF) was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases in the Central District of Illinois, Springfield and Urbana Divisions.
“Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, devoted significant resources and tireless work toward this successful prosecution,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “Their hard work and teamwork over the past few years has shut down a major pipeline that pumped volumes of illegal drugs into our community. They truly served the community.”
Special Agent in Charge Jack Riley, DEA, Chicago Division, praised the hard work and dedication of all the law enforcement officers and prosecutors who worked tirelessly to bring this case to a successful conclusion. “The conviction of Eddi Ramirez sends a clear message that the law enforcement community will use every legal means available to bring those who traffic narcotics to justice. Our top priority is dismantling these drug trafficking organizations who peddle their poison in our communities. Our joint efforts in this investigation have made a real impact on the supply of drugs in Central Illinois,” he added.
Decatur Police Chief Todd Walker said, “The conviction of Eddi Ramirez demonstrates yet again the importance and value of local and federal law enforcement authorities working together. I appreciate the work of the investigators and the prosecutor who worked diligently to expose and shut down a major narcotics trafficking organization. This was a complex investigation that transcended state lines into Decatur and Central Illinois. As a result of these efforts, the local drug trade in our region was disrupted and the quality of life improved for those jurisdictions impacted by this substantial drug organization.”
David A. Ford, Special Agent in Charge, FBI Springfield, stated, “The Organized Crime Drug Enforcement Task Force (OCDETF) program was established to mount a comprehensive attack against organized drug trafficking. The guilty verdict in this international drug trafficking case demonstrates the strong working partnership between federal and local law enforcement agencies and shows the effectiveness of working together on the same team. We are committed to pursuing violent drug traffickers in order to keep our neighborhoods safe for our citizens.”
“This successful prosecution has significantly slowed the flow of these illegal drugs into Illinois,” said Illinois Attorney General Lisa Madigan. “My office’s investigators will continue to work closely with our federal law enforcement partners to crack down on the drug trade in our communities.”
In addition to Ramirez, defendants charged as a result of, or related to Operation Tres Ciudades (Three Cities), include the following:
- Felipe Quionones, Jr., 33, of Houston, Texas, pled guilty November 15, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 3.
- Juan H. Vorrath, 56, of Houston, Texas, pled guilty June 27, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled March 5, 2014.
- Gabriel Lopez Saucedo, aka “Cuz,” 28, of Elgin, Illinois, pled guilty July 10, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 4, 2014.
- Leonardo Aldape Hernandez, 24, of Calumet City, Illinois, pled guilty July 10, 2013, to conspiracy to possess with intent to distribute cocaine; was sentenced on January 24, 2014, to 10 years in federal prison.
- Erica Kulak, 25, of Elgin, Illinois, pled guilty February 7, 2013, to conspiracy to possess with intent to distribute cocaine, and two counts distribution of cocaine; sentencing April 4, 2014.
- Teravena Kapraun, aka “Tera,” “Jen,” 23, of Decatur, Illinois, pled guilty on May 14, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 4, 2014.
- Jourdan Hullinger, 22, of Springfield, Illinois, pled guilty on December 11, 2013, to conspiracy to possess with intent to distribute cocaine; sentencing scheduled April 30, 2014.
- Doris Morel Del-Rosario, 37, of Houston, Texas, pled guilty May 31, 2013, to conspiracy to possess with intent to distribute cocaine, sentencing scheduled April 4, 2014.
- Jose Aguilar Mendez, 22, last known address Decatur, Illinois, is a fugitive.
- Juan Alvarado, 32, last known address Decatur, Illinois, was charged with conspiracy to possess with intent to distribute cocaine, a fugitive.
- Geraro Gamboa, 22, last known address Rantoul, Illinois, was charged with conspiracy to possess with intent to distribute cocaine, a fugitive.
In addition to the defendants charged with Ramirez, another seven defendants charged had ties to Ramirez:
- James Lampley, 56, of Decatur, pled guilty March 13, 2013, to one count each of conspiracy to distribute cocaine, and possession of cocaine and heroin with intent to distribute; sentencing scheduled March 4, 2014;
- Guadalupe Onate Herrera, 29, of Calumet City, Illinois, charged with re-entry of a deported alien, pled guilty April 4, 2013; sentenced April 25, 2013, to time served;
- Alex Gardner, 30, of Springfield, Illinois, pled guilty March 13, 2013, to possession with intent to distribute cocaine; sentencing scheduled March 10, 2014;
- Anthony Cunningham, aka “Tone,” 27, of Springfield, Illinois, pled guilty February 28, 2013, to distribution of 28 grams or more of crack cocaine; sentenced September 9, 2013, to 150 months (12 ½ years) in prison;
- Orlandon L. Roberson, 38, of Springfield, Illinois, pled guilty February 28, 2013 to possession with intent to distribute 28 grams or more of crack cocaine; sentenced August 5, 2013, to 130 months (10 years, 10 months) in federal prison;
- Bernardo Shanklin, 32, of Springfield, pled guilty May 30, 2012, to two counts of distribution of cocaine; one count of possession with intent to distribute cocaine; sentenced March 8, 2013, to 108 months (nine years) in federal prison;
- Michael A. Gant, 34, of Springfield; pled guilty May 31, 2012, to possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime; sentenced October 5, 2012, to 66 months (five-and-a-half years) in federal prison.
At sentencing, the offense of conspiracy to distribute five or more kilograms of cocaine carries a statutory mandatory minimum penalty of 10 years to life in prison. If a defendant has one or more prior felony drug convictions, the mandatory minimum penalty is 20 years to life in prison. With two or more prior felony drug convictions, the statutory penalty is life in prison.
Navy Seal Imposter Arrested
The U.S. Marshals Service, Bureau of Alcohol, Tobacco and Firearms and the Benton County Sheriff’s Office arrested Arthur James (AJ) Dicken of Garfield, Arkansas on charges stemming from firearm violations. Dicken was wanted by the Carson City, Nevada Sheriff's Office for Possession of a Firearm by a Person Convicted of a Felony.
Dicken is alleged to have passed himself off as a highly decorated Navy SEAL, who had served in dozens of covert combat missions from the jungles of Vietnam to the caves of Afghanistan. Dicken, as it was later confirmed, had never served in the military. Dicken often wore the Navy SEAL trident insignia and loved to show off his numerous awards to include two Congressional Medal of Honor awards.
The charges stemmed from when Dicken operated a military style self-defense school in Carson City, Nevada. The training he provided included firearms and self-defense tactics. Dicken was exposed after he was profiled on both 20/20 and Inside Edition as the result of alleged criminal acts. Additional allegations include embezzlement and fraud where Dicken bilked investors out of more than $850,000 for a proposed new international security firm.
U.S. Marshals in Reno, Nevada, working closely with the Carson City, Nevada Sheriff’s Office, adopted the case and determined Dicken was likely in the Northwest Arkansas area. Deputy U.S. Marshals in Western Arkansas began working the case and determined Dicken was residing on Slate Gap Road in Garfield, Arkansas. After careful coordination with the Benton County Sheriff’s Office, Dicken was arrested without incident in the early morning hours of February 14, 2014, where he was found residing in small recreational vehicle. Dicken was transported to the Benton County Sheriff’s Office, where he awaits extradition to Nevada to face his pending charges.
Dicken is alleged to have passed himself off as a highly decorated Navy SEAL, who had served in dozens of covert combat missions from the jungles of Vietnam to the caves of Afghanistan. Dicken, as it was later confirmed, had never served in the military. Dicken often wore the Navy SEAL trident insignia and loved to show off his numerous awards to include two Congressional Medal of Honor awards.
The charges stemmed from when Dicken operated a military style self-defense school in Carson City, Nevada. The training he provided included firearms and self-defense tactics. Dicken was exposed after he was profiled on both 20/20 and Inside Edition as the result of alleged criminal acts. Additional allegations include embezzlement and fraud where Dicken bilked investors out of more than $850,000 for a proposed new international security firm.
U.S. Marshals in Reno, Nevada, working closely with the Carson City, Nevada Sheriff’s Office, adopted the case and determined Dicken was likely in the Northwest Arkansas area. Deputy U.S. Marshals in Western Arkansas began working the case and determined Dicken was residing on Slate Gap Road in Garfield, Arkansas. After careful coordination with the Benton County Sheriff’s Office, Dicken was arrested without incident in the early morning hours of February 14, 2014, where he was found residing in small recreational vehicle. Dicken was transported to the Benton County Sheriff’s Office, where he awaits extradition to Nevada to face his pending charges.
Getaway Driver Sentenced to 40 Years in Prison in Murder of Gas Station Manager
Jose A. Santiago, 36, of Springfield, Massachusetts, was sentenced in Providence, Rhode Island, to serve 40 years in prison for his role in the September 2010 armed robbery and murder of Woonsocket, Rhode Island gas station manager David D. Main.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Colonel Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range, and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death, was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on September 5, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on December 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery, and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on February 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police, and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Colonel Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range, and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death, was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on September 5, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on December 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery, and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on February 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police, and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.
Guilty Plea in Golf Course Scheme that Swindled Millions from Investors
A man who fraudulently convinced 11 persons to loan him a total of $3.6 million for the purchase of a golf course near Gardnerville, Nevada, pleaded guilty to 24 federal felony charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Scott H. Summerhays, 55, formerly of the South Lake Tahoe area, but currently in custody in Reno, pleaded guilty during the first day of trial to 14 counts of wire fraud, seven counts of money laundering, two counts of identity theft, and one count of aggravated identity theft.
Summerhays, who was indicted in February 2012, faces over 30 years in prison and fines of up to $5.7 million and is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. by U.S. District Judge Larry R. Hicks.
“This is the second person to be convicted or sentenced of federal investment fraud charges in the northern Nevada area this week,” said U.S. Attorney Bogden. “In both cases, the defendants led their victims to believe that they were legitimate businessmen and used fraudulent documents to support their scheme. If you are considering a financial arrangement with someone, be sure to check the veracity of any documents they provide you, as fraudulent documents are common and easy to create.”
According to the court records, during 2008 to 2010, Summerhays represented to potential investors that he was purchasing the Genoa Lakes Golf Club located west of Gardnerville, Nevada, for $17 million and needed a short-term loan to complete the deal because his own money was tied up in a trust. Summerhays also represented to the potential investors that he solicited funds for oil and gas investments in Texas and owned more than $30 million in Berkshire, Las Vegas Sands, and MGM stocks. Summerhays showed some of the investors a fraudulent investment account statement. Summerhays also claimed that he was in partnership with Las Vegas Sands owner Sheldon Aldelson and showed potential investors a partnership agreement containing the forged signature of Adelson. In reality, Summerhays had no investment portfolio, and Adelson never heard of Summerhays or had any partnerships with him. Using this scheme, Summerhays was able to convince 11 persons to loan him money for the golf course, totaling approximately $3.6 million. None of the investors were repaid, and they lost all of the money they loaned Summerhays.
The case was investigated by the FBI and IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Megan Rachow.
Scott H. Summerhays, 55, formerly of the South Lake Tahoe area, but currently in custody in Reno, pleaded guilty during the first day of trial to 14 counts of wire fraud, seven counts of money laundering, two counts of identity theft, and one count of aggravated identity theft.
Summerhays, who was indicted in February 2012, faces over 30 years in prison and fines of up to $5.7 million and is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. by U.S. District Judge Larry R. Hicks.“This is the second person to be convicted or sentenced of federal investment fraud charges in the northern Nevada area this week,” said U.S. Attorney Bogden. “In both cases, the defendants led their victims to believe that they were legitimate businessmen and used fraudulent documents to support their scheme. If you are considering a financial arrangement with someone, be sure to check the veracity of any documents they provide you, as fraudulent documents are common and easy to create.”
According to the court records, during 2008 to 2010, Summerhays represented to potential investors that he was purchasing the Genoa Lakes Golf Club located west of Gardnerville, Nevada, for $17 million and needed a short-term loan to complete the deal because his own money was tied up in a trust. Summerhays also represented to the potential investors that he solicited funds for oil and gas investments in Texas and owned more than $30 million in Berkshire, Las Vegas Sands, and MGM stocks. Summerhays showed some of the investors a fraudulent investment account statement. Summerhays also claimed that he was in partnership with Las Vegas Sands owner Sheldon Aldelson and showed potential investors a partnership agreement containing the forged signature of Adelson. In reality, Summerhays had no investment portfolio, and Adelson never heard of Summerhays or had any partnerships with him. Using this scheme, Summerhays was able to convince 11 persons to loan him money for the golf course, totaling approximately $3.6 million. None of the investors were repaid, and they lost all of the money they loaned Summerhays.
The case was investigated by the FBI and IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Ronald C. Rachow and Megan Rachow.
Friday, February 14, 2014
Attorney Christina M. Kitterman Convicted in Connection with Rothstein Ponzi Scheme
A federal jury in West Palm Beach convicted Christina M. Kitterman, 38, of Deerfield Beach, on three counts of wire fraud after a week-long trial before U.S. District Judge Daniel T. K. Hurley. A sentencing date has not been set.
Kitterman was charged with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The acts set forth in the charging document were all in furtherance of a Ponzi scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases that were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt, and Adler P.A. (RRA).
Evidence introduced at trial established that, during the course of the Ponzi scheme and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors in order to explain to the investors the reason why certain payments due to them had not been made.
At sentencing, Kitterman faces up to 20 years in prison and a fine of $250,000.
U.S. Attorney Wifredo A. Ferrer stated, “The verdict rendered by the jury today is another step toward bringing Rothstein’s criminal associates to justice. As I have previously stated, the success of Rothstein’s complex scheme to deceive and defraud depended on the complicity of individuals like Christina Kitterman. Kitterman, an attorney, was the 15th individual to face criminal charges in connection with this complex financial fraud.”
IRS-CI Special Agent in Charge Jose A. Gonzalez stated, “The jury has validated the government’s case sending a strong message that those who knowingly assist in perpetrating investment scams will be held accountable for their actions. Together with our law enforcement partners, we will continue to aggressively investigate and bring to justice those who aided Rothstein in perpetrating this massive fraud.”
“Although Scott Rothstein was the ringleader in a massive Ponzi scheme, he needed help. A jury of her peers has determined Christina Kitterman gave him that help and needs to be held accountable,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Regardless of one’s role, the FBI and its partners are committed to investigate those who swindle investors.”
Kitterman was charged with three counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The acts set forth in the charging document were all in furtherance of a Ponzi scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases that were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt, and Adler P.A. (RRA).
Evidence introduced at trial established that, during the course of the Ponzi scheme and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors in order to explain to the investors the reason why certain payments due to them had not been made.
At sentencing, Kitterman faces up to 20 years in prison and a fine of $250,000.
U.S. Attorney Wifredo A. Ferrer stated, “The verdict rendered by the jury today is another step toward bringing Rothstein’s criminal associates to justice. As I have previously stated, the success of Rothstein’s complex scheme to deceive and defraud depended on the complicity of individuals like Christina Kitterman. Kitterman, an attorney, was the 15th individual to face criminal charges in connection with this complex financial fraud.”
IRS-CI Special Agent in Charge Jose A. Gonzalez stated, “The jury has validated the government’s case sending a strong message that those who knowingly assist in perpetrating investment scams will be held accountable for their actions. Together with our law enforcement partners, we will continue to aggressively investigate and bring to justice those who aided Rothstein in perpetrating this massive fraud.”
“Although Scott Rothstein was the ringleader in a massive Ponzi scheme, he needed help. A jury of her peers has determined Christina Kitterman gave him that help and needs to be held accountable,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami. “Regardless of one’s role, the FBI and its partners are committed to investigate those who swindle investors.”
Convicted Felon William Benjamin Mejias Pleads Guilty to Impersonating a DEA Agent at Nightclubs and Unlawful Possession of a Firearm
William Benjamin Mejias (41, Orlando) pleaded guilty to impersonating a Drug Enforcement Administration agent and possession of a firearm by a convicted felon. Mejias faces a maximum penalty of 13 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement and court documents
, Mejias appeared at nightclubs, in Orlando, dressed in clothes that identified him as an agent with the Drug Enforcement Administration (DEA). Mejias wore authentic-looking DEA badges, carried a firearm, and reportedly told several people that he was a DEA agent. He also posted photos of himself on social media websites wearing DEA clothes, a DEA badge, and a firearm. In September 2013, local police officers conducted a traffic stop on Mejias and he displayed a DEA badge and credentials to get out of the ticket. During a later search of Mejias’s residence, agents found a loaded semi-automatic firearm.
Mejias was convicted of three separate felony burglaries in 1994, 1995, and 1996 and was therefore prohibited from possessing a firearm or ammunition under federal law.
According to the plea agreement and court documents
, Mejias appeared at nightclubs, in Orlando, dressed in clothes that identified him as an agent with the Drug Enforcement Administration (DEA). Mejias wore authentic-looking DEA badges, carried a firearm, and reportedly told several people that he was a DEA agent. He also posted photos of himself on social media websites wearing DEA clothes, a DEA badge, and a firearm. In September 2013, local police officers conducted a traffic stop on Mejias and he displayed a DEA badge and credentials to get out of the ticket. During a later search of Mejias’s residence, agents found a loaded semi-automatic firearm.Mejias was convicted of three separate felony burglaries in 1994, 1995, and 1996 and was therefore prohibited from possessing a firearm or ammunition under federal law.
Christian Keston John, Marvin Johnson, and Shaquan Jones Indicted on Racketeering Charges, Including Six Murders
A superseding indictment was returned last Friday charging defendants Christian Keston John, Marvin Johnson, and Shaquan Jones, who were members of a violent criminal enterprise, with racketeering, consisting of 23 predicate acts, including six murders, two attempted murders, three armed robberies, kidnapping, murder-for-hire, and gambling on dog fighting, among other crimes, all of which occurred in the Bushwick, Bedford-Stuyvesant, and East New York areas of Brooklyn. Johnson was arraigned earlier today at federal court in Brooklyn before U.S. Magistrate Judge Robert M. Levy, and the defendants Christian John and Shaquan Jones will be arraigned on Friday, also before Magistrate Judge Levy.
The charges were 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 (FBI); and William J. Bratton, Commissioner, New York City Police Department.
According to court papers, the enterprise, known as the Hull Street Crew, began its violent conduct in 2000 with the murder of Charlemagne Lormand, followed by the 2005 murder of Shamell Etienne and the 2008 murder of Daquane Shelton. In 2006, the defendants allegedly murdered Earle Kevin Obermuller when they bound his entire head with duct tape, dragged him down to a basement, tied him to a chair on a bed of charcoals, and then set him on fire. The indictment also charges the 2011 murders of Jason Bostic and Aaron Formey, who were murdered in a similar manner when they were bound with duct tape, pushed down the stairs to a basement, and shot multiple times. The Hull Street Crew enriched its members through drug trafficking and gambling on dog fights and committed these violent acts to enhance the enterprise’s prestige and to protect it from rival criminal organizations.
“As set forth in the indictment, the Hull Street Crew rained down brutal violence onto the streets of Brooklyn for over a decade. The defendants pledged their allegiance to the Crew and its violent methods, committing a brutal murder and other senseless acts of violence. This indictment brings to a halt the Hull Street Crew’s reign of terror over the streets of Brooklyn,” stated United States Attorney Lynch. “Working together with the FBI and the NYPD, we stand committed to ending the scourge of violence in our communities and bringing to justice those who commit such violent acts. We hope that this prosecution will bring some measure of closure to the families of the victims who have suffered not only because of the loss of loved ones but also by not knowing who was responsible for these crimes.”
FBI Assistant Director in Charge Venizelos stated, “Violence is the rule, not the exception, in the Hull Street Crew. As alleged, this criminal enterprise used illegal means, including murder and kidnapping, to intimidate rivals and instill fear in the innocent public. Today’s indictment illustrates the FBI’s continued effort to work with our law enforcement partners to disrupt and dismantle violent criminal enterprises that terrorize our communities.”
Police Commissioner Bratton stated, “Members of this violent and vicious crew operated on the streets of Brooklyn for more than a decade, but with this investigation and indictment, we send a message to those who choose to operate within a ruthless criminal operation—you will be brought to justice and eradicated from our communities. The Hull Street Crew was shut down thanks to the tireless efforts of the investigators from the NYPD Detective Bureau, the Federal Bureau of Investigation, and the United States Attorney’s Office, Eastern District of New York.”
The case has been assigned to U.S. District Judge Frederic Block. If convicted of murder, the defendants face a maximum sentence of life imprisonment, or possibly the death penalty.
The government’s case is being prosecuted by Celia A. Cohen, Gina M. Parlovecchio, and Robert T. Polemeni.
The charges were 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 (FBI); and William J. Bratton, Commissioner, New York City Police Department.
According to court papers, the enterprise, known as the Hull Street Crew, began its violent conduct in 2000 with the murder of Charlemagne Lormand, followed by the 2005 murder of Shamell Etienne and the 2008 murder of Daquane Shelton. In 2006, the defendants allegedly murdered Earle Kevin Obermuller when they bound his entire head with duct tape, dragged him down to a basement, tied him to a chair on a bed of charcoals, and then set him on fire. The indictment also charges the 2011 murders of Jason Bostic and Aaron Formey, who were murdered in a similar manner when they were bound with duct tape, pushed down the stairs to a basement, and shot multiple times. The Hull Street Crew enriched its members through drug trafficking and gambling on dog fights and committed these violent acts to enhance the enterprise’s prestige and to protect it from rival criminal organizations.
“As set forth in the indictment, the Hull Street Crew rained down brutal violence onto the streets of Brooklyn for over a decade. The defendants pledged their allegiance to the Crew and its violent methods, committing a brutal murder and other senseless acts of violence. This indictment brings to a halt the Hull Street Crew’s reign of terror over the streets of Brooklyn,” stated United States Attorney Lynch. “Working together with the FBI and the NYPD, we stand committed to ending the scourge of violence in our communities and bringing to justice those who commit such violent acts. We hope that this prosecution will bring some measure of closure to the families of the victims who have suffered not only because of the loss of loved ones but also by not knowing who was responsible for these crimes.”
FBI Assistant Director in Charge Venizelos stated, “Violence is the rule, not the exception, in the Hull Street Crew. As alleged, this criminal enterprise used illegal means, including murder and kidnapping, to intimidate rivals and instill fear in the innocent public. Today’s indictment illustrates the FBI’s continued effort to work with our law enforcement partners to disrupt and dismantle violent criminal enterprises that terrorize our communities.”
Police Commissioner Bratton stated, “Members of this violent and vicious crew operated on the streets of Brooklyn for more than a decade, but with this investigation and indictment, we send a message to those who choose to operate within a ruthless criminal operation—you will be brought to justice and eradicated from our communities. The Hull Street Crew was shut down thanks to the tireless efforts of the investigators from the NYPD Detective Bureau, the Federal Bureau of Investigation, and the United States Attorney’s Office, Eastern District of New York.”
The case has been assigned to U.S. District Judge Frederic Block. If convicted of murder, the defendants face a maximum sentence of life imprisonment, or possibly the death penalty.
The government’s case is being prosecuted by Celia A. Cohen, Gina M. Parlovecchio, and Robert T. Polemeni.
Four Months Federal Prison Sentence for Former Police Sergeant John Miller
Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Sergeant John Miller, 44, was sentenced by U.S. District Judge Alvin W. Thompson in Hartford to four months of imprisonment, followed by two years of supervised release, for violating an individual’s civil rights by using unreasonable force during the course of an arrest. Miller was also ordered to pay a $3,000 fine.
This matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports. As a result of the investigation, Miller and Officers Dennis Spaulding, Jason Zullo, and David Cari were convicted of various civil rights offenses.
According to court documents and statements made in court, on January 3, 2010, in the course of making an arrest, Miller struck a handcuffed individual while the victim was in the secure custody of two other East Haven Police officers.
On September 21, 2012, Miller pleaded guilty to one count of depriving an individual of his right to be free from the use of excessive force by a law enforcement officer.
Judge Thompson credited Miller for his cooperation in the investigation and prosecution of this matter and imposed a sentence below the recommended sentencing guidelines range of 12 to 18 months of imprisonment.
Miller, who has retired from the East Haven Police Department, was ordered to report to prison on March 13.
On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation. On December 16, 2013, he was sentenced to 24 months of imprisonment.
On October 21, 2013, David Cari was found guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report. On January 21, 2014, he was sentenced to 30 months of imprisonment.
On October 21, 2013, Dennis Spaulding was found guilty of one count of conspiracy against rights, one count of use of unreasonable force by a law enforcement officer, two counts of deprivation of rights for making arrests without probable cause, and two counts of obstruction of a federal investigation for preparing false reports to justify the false arrests. On January 23, he was sentenced to 60 months of imprisonment.
This matter was investigated by the Civil Rights Squad of the FBI’s New York Field Office, and it was prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
This matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports. As a result of the investigation, Miller and Officers Dennis Spaulding, Jason Zullo, and David Cari were convicted of various civil rights offenses.
According to court documents and statements made in court, on January 3, 2010, in the course of making an arrest, Miller struck a handcuffed individual while the victim was in the secure custody of two other East Haven Police officers.
On September 21, 2012, Miller pleaded guilty to one count of depriving an individual of his right to be free from the use of excessive force by a law enforcement officer.
Judge Thompson credited Miller for his cooperation in the investigation and prosecution of this matter and imposed a sentence below the recommended sentencing guidelines range of 12 to 18 months of imprisonment.
Miller, who has retired from the East Haven Police Department, was ordered to report to prison on March 13.
On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation. On December 16, 2013, he was sentenced to 24 months of imprisonment.
On October 21, 2013, David Cari was found guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report. On January 21, 2014, he was sentenced to 30 months of imprisonment.
On October 21, 2013, Dennis Spaulding was found guilty of one count of conspiracy against rights, one count of use of unreasonable force by a law enforcement officer, two counts of deprivation of rights for making arrests without probable cause, and two counts of obstruction of a federal investigation for preparing false reports to justify the false arrests. On January 23, he was sentenced to 60 months of imprisonment.
This matter was investigated by the Civil Rights Squad of the FBI’s New York Field Office, and it was prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
4 Individuals Charged in with Participating in a Multi-State Robbery Crew That Stole More Than $1 Million in Luxury Watches and Other Goods
Preet Bharara, the United States Attorney for the Southern District of New York; George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI); and William Bratton, the Police Commissioner of the City of New York (NYPD), announced the unsealing of a five-count complaint charging four members of a robbery crew operating across New York, New Jersey, and Virginia with robbery conspiracy and robberies of high-end jewelry and watch stores, resulting in the theft of more than a million dollars in watches. Specifically, Allens Williams, 35; Roberto Grant, 33; Terrell Ratliff, 22; and Tyrone DeHoyos, 35, have each been charged with robbery conspiracy and one or more substantive robberies. DeHoyos was arrested in Brooklyn, New York, and was presented before U.S. Magistrate Judge Andrew J. Peck. DeHoyos was ordered detained pending trial. Williams, Grant, and Ratliff were all previously arrested by the NYPD and are expected to be transferred into federal custody to be presented on the charges contained in the complaint.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, the defendants engaged in violent robberies of luxury jewelry stores in New York, New Jersey, and Virginia. They allegedly combined forethought with force, scouting out their targets and then terrorizing customers and employees by smashing display cases with hammers and stealing high-end timepieces. They will now face the consequences of their violent shopping spree.”
FBI Assistant Director in Charge George Venizelos said, “From Cartier on Manhattan’s Fifth Avenue to the Borgata Casino in Atlantic City, the defendants left no rock unturned, carrying out a series of brazen midday smash-and-grab robberies of high-end jewelers up and down the East Coast. It took sophisticated, modern crime fighting techniques to tie the heists together. Today, we see the result of diligent work by law enforcement from Virginia to New York to stop this violent, skilled crime syndicate.”
Police Commissioner William J. Bratton said, “Thanks to the collaborative efforts of investigators and prosecutors assigned to this case, four members of this smash and grab crew, which targeted businesses throughout New York City and in other states, is no longer in operation. Two of these criminals, Allen Williams and Roberto Grant, were quickly apprehended by members of the NYPD after they brazenly walked into a Manhattan Cartier store and stole more than $700,000 worth of watches.”
According to the allegations contained in the complaint and statements made in court today:
Between approximately July 1, 2013 and January 30, 2014, a highly organized crew engaged in a series of violent robberies of high-end jewelry and watch stores located in three states, while customers and employees were in the stores, and stole more than a million dollars in luxury watches.
The robberies followed a simple but brazen pattern: on each occasion, three to five members of the crew entered a jewelry or watch store, began smashing glass display cases with hammers, grabbed luxury watches from those display cases, and then fled within minutes of entering the store into waiting getaway cars driven by members of the robbery crew. Each robbery occurred during business hours while store employees and customers were present. The crew used violence as necessary to carry out the scheme. For example, during one robbery in August 2013 in Richmond, Virginia, the robbers used a handheld stungun to subdue a female store employee before fleeing with more than $100,000 in watches.
Among the stores robbed by the crew are Cartier in Manhattan, New York; the Borgata Hotel and Casino in Atlantic City, New Jersey; Schwarzschild’s Jewelers in Richmond, Virginia; and Martin Jewelers in Cranford, New Jersey.
All four defendants are charged in count one of the complaint, conspiracy to commit robbery in interstate commerce, which carries a maximum sentence of 20 years in prison.
Williams and Grant are also charged with each of the robberies in interstate commerce in counts two through five in the complaint; Ratliff is charged with the robbery in interstate commerce in count two of the complaint; and DeHoyos is charged with the robbery in interstate commerce in count four of the complaint. Each of the substantive interstate robbery counts carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the FBI and the NYPD. Mr. Bharara also thanked the Manhattan District Attorney’s Office, which brought charges against Williams and Grant in connection with their participation in the January 30, 2014 robbery of Cartier. He also thanked the Richmond FBI Office and the Atlantic City Resident Agency of the Newark FBI Office, as well as the police departments of Cranford and Atlantic City, New Jersey, and Richmond, Virginia.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Andrea Griswold and Richard Cooper are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, the defendants engaged in violent robberies of luxury jewelry stores in New York, New Jersey, and Virginia. They allegedly combined forethought with force, scouting out their targets and then terrorizing customers and employees by smashing display cases with hammers and stealing high-end timepieces. They will now face the consequences of their violent shopping spree.”
FBI Assistant Director in Charge George Venizelos said, “From Cartier on Manhattan’s Fifth Avenue to the Borgata Casino in Atlantic City, the defendants left no rock unturned, carrying out a series of brazen midday smash-and-grab robberies of high-end jewelers up and down the East Coast. It took sophisticated, modern crime fighting techniques to tie the heists together. Today, we see the result of diligent work by law enforcement from Virginia to New York to stop this violent, skilled crime syndicate.”
Police Commissioner William J. Bratton said, “Thanks to the collaborative efforts of investigators and prosecutors assigned to this case, four members of this smash and grab crew, which targeted businesses throughout New York City and in other states, is no longer in operation. Two of these criminals, Allen Williams and Roberto Grant, were quickly apprehended by members of the NYPD after they brazenly walked into a Manhattan Cartier store and stole more than $700,000 worth of watches.”
According to the allegations contained in the complaint and statements made in court today:
Between approximately July 1, 2013 and January 30, 2014, a highly organized crew engaged in a series of violent robberies of high-end jewelry and watch stores located in three states, while customers and employees were in the stores, and stole more than a million dollars in luxury watches.
The robberies followed a simple but brazen pattern: on each occasion, three to five members of the crew entered a jewelry or watch store, began smashing glass display cases with hammers, grabbed luxury watches from those display cases, and then fled within minutes of entering the store into waiting getaway cars driven by members of the robbery crew. Each robbery occurred during business hours while store employees and customers were present. The crew used violence as necessary to carry out the scheme. For example, during one robbery in August 2013 in Richmond, Virginia, the robbers used a handheld stungun to subdue a female store employee before fleeing with more than $100,000 in watches.
Among the stores robbed by the crew are Cartier in Manhattan, New York; the Borgata Hotel and Casino in Atlantic City, New Jersey; Schwarzschild’s Jewelers in Richmond, Virginia; and Martin Jewelers in Cranford, New Jersey.
All four defendants are charged in count one of the complaint, conspiracy to commit robbery in interstate commerce, which carries a maximum sentence of 20 years in prison.
Williams and Grant are also charged with each of the robberies in interstate commerce in counts two through five in the complaint; Ratliff is charged with the robbery in interstate commerce in count two of the complaint; and DeHoyos is charged with the robbery in interstate commerce in count four of the complaint. Each of the substantive interstate robbery counts carries a maximum sentence of 20 years in prison.Mr. Bharara praised the investigative work of the FBI and the NYPD. Mr. Bharara also thanked the Manhattan District Attorney’s Office, which brought charges against Williams and Grant in connection with their participation in the January 30, 2014 robbery of Cartier. He also thanked the Richmond FBI Office and the Atlantic City Resident Agency of the Newark FBI Office, as well as the police departments of Cranford and Atlantic City, New Jersey, and Richmond, Virginia.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorneys Andrea Griswold and Richard Cooper are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Todd C. Smith and Travis Oliver Charged in $983,000 Investment Fraud Scheme
A Rockford man and a Califomia man were indicted by a federal grand jury in Rockford on fraud charges. Todd C. Smith, 46, of Rockford, was charged with seven counts of mail fraud and 10 counts of wire fraud, and Travis Oliver, 36, of Tremecula, California, was charged with eight counts of mail fraud and 15 counts of wire fraud in connection with a scheme to defraud investors by falsely representing to investors that their investments in Electus Asset Holdings were guaranteed, thereby fraudulently obtaining more than $983,000 from the investors.
According to the indictment, Oliver was sole managmg member of Electus Asset Holdings, and both Oliver and Smith solicited individuals to invest in Electus Asset Holdings, engaging in a scheme from February 13, 2009 to at least March 2012 to defaud investors. The indictment alleges the defendants falsely represented to the investors that their investments would be retmned in one year, yielding a guaranteed rate of interest per month, and that the funds could be withdrawn at any time without penalty. However, it is alleged the defendants knew a large portion of the investors’ funds was used to pay personal and other expenses, such as commissions to the defendants and to make interest and principal payments to other individuals who had invested money with Oliver prior to the fonnation ofElectus Asset Holdings in January 2009 and that the remainder of the investors’ funds was placed in a non-guaranteed investment
It is further alleged that in order to conceal their false promises and misrepresentations and to prevent the investors from demanding the return of their principal, defendants used funds from new investors to pay interest and principal owed to prior investors. The indictment also charges that defendants mailed monthly statements and IRS 1099-INT forms to investors that falsely stated that the investors had earned interest on their investments, when defendants knew no interest had been earned on the investments. The indictment alleges that when investors requested the return of their interest and principal, Oliver and Smith made false statements and promises to conceal the fact the investors’ money had been spent or lost in high risk investments, including that the investors’ checks were going to be issued shortly, that their checks were lost in the mail, and that the investors’ money was invested in company that was under investigation by the Federal Trade Commission and its assets had been frozen.
Each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. If convicted, the court must impose a reasonable sentence under the advisory United States Sentencing Guidelines and under federal sentencing statutes, as well as restitution.
According to the indictment, Oliver was sole managmg member of Electus Asset Holdings, and both Oliver and Smith solicited individuals to invest in Electus Asset Holdings, engaging in a scheme from February 13, 2009 to at least March 2012 to defaud investors. The indictment alleges the defendants falsely represented to the investors that their investments would be retmned in one year, yielding a guaranteed rate of interest per month, and that the funds could be withdrawn at any time without penalty. However, it is alleged the defendants knew a large portion of the investors’ funds was used to pay personal and other expenses, such as commissions to the defendants and to make interest and principal payments to other individuals who had invested money with Oliver prior to the fonnation ofElectus Asset Holdings in January 2009 and that the remainder of the investors’ funds was placed in a non-guaranteed investment
It is further alleged that in order to conceal their false promises and misrepresentations and to prevent the investors from demanding the return of their principal, defendants used funds from new investors to pay interest and principal owed to prior investors. The indictment also charges that defendants mailed monthly statements and IRS 1099-INT forms to investors that falsely stated that the investors had earned interest on their investments, when defendants knew no interest had been earned on the investments. The indictment alleges that when investors requested the return of their interest and principal, Oliver and Smith made false statements and promises to conceal the fact the investors’ money had been spent or lost in high risk investments, including that the investors’ checks were going to be issued shortly, that their checks were lost in the mail, and that the investors’ money was invested in company that was under investigation by the Federal Trade Commission and its assets had been frozen.
Each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater. If convicted, the court must impose a reasonable sentence under the advisory United States Sentencing Guidelines and under federal sentencing statutes, as well as restitution.
Dr. Charles DeHann Indicted on Charges of Health Care Fraud
A suspended Rockford physician was indicted this week by a federal grand jury on charges of healthcare fraud. Charles S. DeHann, 59, of Belvidere, Illinois, was charged with nine counts of engaging in a scheme to defraud Medicare.
The indictment alleges that DeHaan, a physician licensed in Illinois, and president of Housecall Physicians Group of Rockford, South Carolina, treated numerous patients at Rockford-area assisted living facilities and, as a physician, had access to patients and patient records. The indictment alleges that, from January 2013 through January 24, 2014, in order to enrich himself, DeHaan submitted false claims to Medicare for reimbursement for medical services that DeHaan provided to patients in their homes. As part of the scheme, DeHaan allegedly obtained patient information of Medicare beneficiaries through his affiliation with and privileges granted to him at various Rockford-area assisted living facilities, without the knowledge or consent of the patients. It is also alleged that DeHaan billed for medical services purportedly provided to patients whom DeHaan never actually treated and billed routine visits with Medicare patients at the highest levels of in-home care when he knew that his visits with these patients typically did not qualify for such billing.
In addition, DeHaan allegedly billed for medical services provided to patients when he knew he did not provide any reimbursable medical service. For instance, on multiple occasions, DeHaan billed Medicare for medical services purportedly provided to patients, when DeHaan’s visit with the patient involved no medical care and instead involved DeHaan’s having sexual contact and attempting to have sexual contact with a patient and making sexual advances toward a patient, according to the indictment.
DeHaan was initially charged with federal health care fraud last month when he was arrested on a criminal complaint.
Each count of health care fraud carries a maximum potential penalty of up to 10 years in prison, a fine of up to $250,000, and full restitution. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment alleges that DeHaan, a physician licensed in Illinois, and president of Housecall Physicians Group of Rockford, South Carolina, treated numerous patients at Rockford-area assisted living facilities and, as a physician, had access to patients and patient records. The indictment alleges that, from January 2013 through January 24, 2014, in order to enrich himself, DeHaan submitted false claims to Medicare for reimbursement for medical services that DeHaan provided to patients in their homes. As part of the scheme, DeHaan allegedly obtained patient information of Medicare beneficiaries through his affiliation with and privileges granted to him at various Rockford-area assisted living facilities, without the knowledge or consent of the patients. It is also alleged that DeHaan billed for medical services purportedly provided to patients whom DeHaan never actually treated and billed routine visits with Medicare patients at the highest levels of in-home care when he knew that his visits with these patients typically did not qualify for such billing.
In addition, DeHaan allegedly billed for medical services provided to patients when he knew he did not provide any reimbursable medical service. For instance, on multiple occasions, DeHaan billed Medicare for medical services purportedly provided to patients, when DeHaan’s visit with the patient involved no medical care and instead involved DeHaan’s having sexual contact and attempting to have sexual contact with a patient and making sexual advances toward a patient, according to the indictment.
DeHaan was initially charged with federal health care fraud last month when he was arrested on a criminal complaint.
Each count of health care fraud carries a maximum potential penalty of up to 10 years in prison, a fine of up to $250,000, and full restitution. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
A Benchmark Win in 9th U.S. Circuit Court of Appeals in @NRA Backed Case
The United States Court of Appeals for the 9th Circuit today ruled in favor of the right of law-abiding citizens in California to carry a firearm outside the home for self-defense. California law allows local governments to issue concealed and open carry permits, but generally prohibits the carriage of handguns in public places. The San Diego County Sheriff’s office further restricts gun permits only to law-abiding citizens who can prove “good cause,” meaning they have to show they faced a specific threat to their safety above what the general public faces.
The court ruled San Diego County’s gun regulation scheme unconstitutional. Under the ruling, law-abiding citizens in California would be allowed to carry a handgun for self-defense in public places, not just in their homes.
In addition to supporting the case financially from the beginning, the National Rifle Association filed a friend of the court brief in support of the plaintiffs.
From the Court Ruling:
The court ruled San Diego County’s gun regulation scheme unconstitutional. Under the ruling, law-abiding citizens in California would be allowed to carry a handgun for self-defense in public places, not just in their homes.
In addition to supporting the case financially from the beginning, the National Rifle Association filed a friend of the court brief in support of the plaintiffs.
“No one should have to wait until they are assaulted before they are allowed to exercise their fundamental right of self-defense,” said Chris W. Cox, Executive Director of the NRA’s Institute for Legislative Action. “The U.S. Supreme Court has already affirmed our Constitutional right to Keep Arms, and today, the 9th Circuit Court of Appeals affirmed the right to Bear Arms. Our fundamental, individual Right to Keep and Bear Arms is not limited to the home,” concluded Cox.
From the Court Ruling:
Because the Second Amendment “confer[s] an individual right to keep and bear arms,” we must assess whether the California scheme deprives any individual of his constitutional rights. Heller, 554 U.S. at 595. Thus, the question is not whether the California scheme (in light of San Diego County’s policy) allows some people to bear arms outside the home in some places at some times; instead, the question is whether it allows the typical responsible, law-abiding citizen to bear arms in public for the lawful purpose of self-defense. The answer to the latter question is a resounding “no.”
Thursday, February 13, 2014
Reward Offered for Capture of Chad Everette Dasher and Raymond Thomas Smith, Jail Escapees
The U.S. Marshals Service is offering dual $2,500 rewards for information that leads to the arrests of two Tattnall County Jail escapees. Chad Everette Dasher and Raymond Thomas Smith escaped from the Tattnall County Jail on Jan. 24. They executed an elaborate plan to breach jail security and escaped through the jail’s roof. They are considered armed and extremely dangerous.
Chad Everette DasherDasher was being held on multiple charges for a multi-county crime spree that occurred in Georgia in 2012. Dasher is a white male, 5’9” tall and 140 pounds. He has green eyes and brown hair. Dasher has an extensive criminal history, including arrests for burglary, firearms, fraud, narcotics, resisting arresting and traffic offenses. He has a history of fleeing from law enforcement.
Smith was being held on multiple counts of aggravated child molestation. Smith is a white male, 6’1” tall and 200 pounds. He has brown hair and brown eyes. InRaymond Thomas Smith addition to Smith’s arrest for sex offenses, he has prior arrests for assault, firearms, and obstruction.
If you have any information about these escapees, call the Tattnall County Sheriff’s Office at 912-557-6777 or the U.S. Marshals Service Communications Center at 1-800-336-0102. Tips can also be emailed to usms.wanted@usdoj.gov. All information is confidential. A $2,500.00 reward is being offered for information that leads to the arrest of each of these fugitives. In order to collect the reward, tipsters should be prepared to give their name and contact information to law enforcement officials manning the tip lines.
Established in 1789, the U.S. Marshals Service is the nation’s oldest federal law enforcement agency. The U.S. Marshals Service is the federal government’s primary agency for fugitive investigations. In fiscal year 2013, the Marshals apprehended approximately 36,000 federal fugitives and cleared approximately 39,000 felony warrants. Marshals-led fugitive task forces arrested 74,200 state and local fugitives and cleared approximately 95,000 state and local felony warrants in FY 2013.
The U. S. Marshals Service Southeast Regional Fugitive Task Force (SERFTF) was created by the Presidential Threat Protection Act of 2000. Congress recognized the U.S. Marshals expertise in tracking and apprehending dangerous fugitives and ordered the creation of regional fugitive task forces (RFTFs) in core cities throughout the country. Via this mandate, SERFTF was created in 2003 and has offices in Atlanta, Macon and Savannah to assist state, county and local agencies as a central investigative base to identify, locate and apprehend dangerous offenders.
In FY2013, SERFTF arrested approximately 2,534 fugitives and cleared roughly 4,048 warrants statewide in Georgia. Locally, the Savannah Division of SERFTF is composed of state and local law enforcement officers from the Georgia Department of Corrections, Georgia Parole, the Chatham County Sheriff’s Office, the Savannah Chatham Metro Police Department, the Bulloch County Sheriff’s Office, the Liberty County Sheriff’s Office, the Hampton County Sheriff’s Office, and the McIntosh County Sheriff’s Office.
Chad Everette DasherDasher was being held on multiple charges for a multi-county crime spree that occurred in Georgia in 2012. Dasher is a white male, 5’9” tall and 140 pounds. He has green eyes and brown hair. Dasher has an extensive criminal history, including arrests for burglary, firearms, fraud, narcotics, resisting arresting and traffic offenses. He has a history of fleeing from law enforcement.
Smith was being held on multiple counts of aggravated child molestation. Smith is a white male, 6’1” tall and 200 pounds. He has brown hair and brown eyes. InRaymond Thomas Smith addition to Smith’s arrest for sex offenses, he has prior arrests for assault, firearms, and obstruction.
If you have any information about these escapees, call the Tattnall County Sheriff’s Office at 912-557-6777 or the U.S. Marshals Service Communications Center at 1-800-336-0102. Tips can also be emailed to usms.wanted@usdoj.gov. All information is confidential. A $2,500.00 reward is being offered for information that leads to the arrest of each of these fugitives. In order to collect the reward, tipsters should be prepared to give their name and contact information to law enforcement officials manning the tip lines.
Established in 1789, the U.S. Marshals Service is the nation’s oldest federal law enforcement agency. The U.S. Marshals Service is the federal government’s primary agency for fugitive investigations. In fiscal year 2013, the Marshals apprehended approximately 36,000 federal fugitives and cleared approximately 39,000 felony warrants. Marshals-led fugitive task forces arrested 74,200 state and local fugitives and cleared approximately 95,000 state and local felony warrants in FY 2013.
The U. S. Marshals Service Southeast Regional Fugitive Task Force (SERFTF) was created by the Presidential Threat Protection Act of 2000. Congress recognized the U.S. Marshals expertise in tracking and apprehending dangerous fugitives and ordered the creation of regional fugitive task forces (RFTFs) in core cities throughout the country. Via this mandate, SERFTF was created in 2003 and has offices in Atlanta, Macon and Savannah to assist state, county and local agencies as a central investigative base to identify, locate and apprehend dangerous offenders.
In FY2013, SERFTF arrested approximately 2,534 fugitives and cleared roughly 4,048 warrants statewide in Georgia. Locally, the Savannah Division of SERFTF is composed of state and local law enforcement officers from the Georgia Department of Corrections, Georgia Parole, the Chatham County Sheriff’s Office, the Savannah Chatham Metro Police Department, the Bulloch County Sheriff’s Office, the Liberty County Sheriff’s Office, the Hampton County Sheriff’s Office, and the McIntosh County Sheriff’s Office.
John DeDakis, Long-time CNN Journalist, Publishes #TroubledWater, New Mystery Novel
Long-time CNN journalist John DeDakis is back with his third mystery novel featuring young, feisty reporter Lark Chadwick. Just as Lark is about to begin her new job on the cops and courts beat, she discovers the body of a strangled girl - the first victim of a serial killer. Lark has the inside track, but there are complications: jealous rivals in the newsroom, her job in danger, a hunky colleague who becomes a suspect, a superstar athlete with anger issues. And just who is that mysterious bag boy at the local market? With the help of her friend and mentor, Pulitzer Prize-winning journalist Lionel Stone, Lark's nerve is tested like never before in a dramatic life-or-death showdown with the killer. Troubled Water is the third installment in the Lark Chadwick mystery/suspense series.
Wednesday, February 12, 2014
Patriot Priest Documents the Remarkable Life of American Adventurer William Hemmick
Strategic Media Books has published Patricia Daly-Lipe's sixth book, Patriot Priest: The Biography of William Hemmick, a remarkable tale of the life of Msgr. William A Hemmick whose extraordinary experiences over several epochs give the reader a new personal perspective on history from WWI and WWII to the post-war era of the '50s and 60s. During his long life, Msgr. William interacted with some of the most notable movers and shakers of modern times, including Pope Benedict XV, Marshall Foch, artist Simon Elwes, Sir Shane Leslie, and F. Scott Fitzgerald who was once his student.
Born in Pittsburgh, Pennsylvania, but raised in Europe, William A Hemmick became fluent in five languages. Ordained by Cardinal Gibbons in 1911, when the First World War broke out, he felt committed to help the troops. After the war, the U.S. Army and Navy proclaimed him the "Patriot Priest of Picardy." After years spent in Paris between the wars, where he established and ran the American Catholic Welfare Centre for all those who had been traumatized by the war, the Vatican asked Father William to come to Rome. Ultimately, he became the only American Canon of St. Peter's representing the Knights of Malta to the Holy See. It was he who performed the nuptials of American film star Tyrone Power and Linda Christian. He also converted the future Queen Astrid of Belgium.
Although many stories and famous people permeate Hemmick’s life through the events of both world wars, this is not only the story of oneindividual. It is a personal glimpse at an epic era in history, from WWI to Paris between the wars, to WWII and its aftermath.
Born in Pittsburgh, Pennsylvania, but raised in Europe, William A Hemmick became fluent in five languages. Ordained by Cardinal Gibbons in 1911, when the First World War broke out, he felt committed to help the troops. After the war, the U.S. Army and Navy proclaimed him the "Patriot Priest of Picardy." After years spent in Paris between the wars, where he established and ran the American Catholic Welfare Centre for all those who had been traumatized by the war, the Vatican asked Father William to come to Rome. Ultimately, he became the only American Canon of St. Peter's representing the Knights of Malta to the Holy See. It was he who performed the nuptials of American film star Tyrone Power and Linda Christian. He also converted the future Queen Astrid of Belgium.
Although many stories and famous people permeate Hemmick’s life through the events of both world wars, this is not only the story of oneindividual. It is a personal glimpse at an epic era in history, from WWI to Paris between the wars, to WWII and its aftermath.
Tuesday, February 11, 2014
Earl L. Theriot, Former Police Chief, Convicted of Making False Statements in Civil Rights Investigation
United States Attorney Walt Green announced that Earl L. Theriot, age 65, of Sorrento, Louisiana, pled guilty before Chief U.S. District Judge Brian A. Jackson to making false statements to an FBI special agent in connection with a criminal civil rights investigation. Theriot faces up to five years in prison, three years of supervised release following imprisonment, and a fine of up to $250,000.
Theriot admitted that on November 1, 2013, while serving as the chief of police for the town of Sorrento and following a 911 emergency police dispatch, he contacted an unresponsive individual at a local gas station, placed her in the front seat of his police unit, and, instead of bringing her back to her residence, transported her to his office at the Sorrento Police Department, where he engaged in inappropriate sexual contact with her. Theriot also admitted to later making numerous false statements to an FBI special agent and a deputy with the Ascension Parish Sheriff’s Office who were investigating whether Theriot violated federal civil rights laws, among other things.
On February 7, 2014, Theriot resigned as chief of police as required by the plea agreement with the United States Attorney’s Office.
United States Attorney Green stated, “This office, along with our federal, state, and local partners, are dedicated to conducting thorough and complete investigations into credible allegations of police corruption and civil rights violations. Those who seek to obstruct such efforts by making false statements to federal investigators will face severe consequences. My special appreciation to Sheriff Jeff Wiley of the Ascension Parish Sheriff’s Office, District Attorney Ricky Babin of the 23rd Judicial District, and the FBI who worked seamlessly with my office to ensure justice was done.”
Theriot admitted that on November 1, 2013, while serving as the chief of police for the town of Sorrento and following a 911 emergency police dispatch, he contacted an unresponsive individual at a local gas station, placed her in the front seat of his police unit, and, instead of bringing her back to her residence, transported her to his office at the Sorrento Police Department, where he engaged in inappropriate sexual contact with her. Theriot also admitted to later making numerous false statements to an FBI special agent and a deputy with the Ascension Parish Sheriff’s Office who were investigating whether Theriot violated federal civil rights laws, among other things.
On February 7, 2014, Theriot resigned as chief of police as required by the plea agreement with the United States Attorney’s Office.
United States Attorney Green stated, “This office, along with our federal, state, and local partners, are dedicated to conducting thorough and complete investigations into credible allegations of police corruption and civil rights violations. Those who seek to obstruct such efforts by making false statements to federal investigators will face severe consequences. My special appreciation to Sheriff Jeff Wiley of the Ascension Parish Sheriff’s Office, District Attorney Ricky Babin of the 23rd Judicial District, and the FBI who worked seamlessly with my office to ensure justice was done.”
Full Details on US-Italian #Mafia Takedown of 24 Defendants Including Reputed #Ndrangheta Member, #Gambino A
A 15—count indictment was unsealed this morning in federal court in the Eastern District of New York charging seven defendants with narcotics trafficking, money laundering, and firearms offenses based, in part, on their participation in a transnational heroin and cocaine trafficking conspiracy involving the ‘Ndrangheta, one of Italy’s most powerful organized crime syndicates. The defendants—‘Ndrangheta member Raffaele Valente, also known as “Lello”; Gambino associate Franco Lupoi; Bonanno associate Charles Centaro, also known as “Charlie Pepsi”; Dominic Ali; Alexander Chan; Christos Fasarakis; and Jose Alfredo Garcia, also known as “Freddy”—were arrested earlier today. In a coordinated operation, Italian law enforcement authorities arrested 17 members and associates of the ‘Ndrangheta in Calabria, Italy, who were involved in the narcotics trafficking conspiracy, among other crimes.
The seven defendants arrested in the United States were scheduled to be arraigned this afternoon before Chief United States Magistrate Judge Steven M. Gold, at the United States Courthouse at 225 Cadman Plaza East in Brooklyn, New York. The case has been assigned to United States District Judge Sterling Johnson, Jr.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“The ‘Ndrangheta is an exceptionally dangerous, sophisticated, and insidious criminal organization with tentacles stretching from Italy to countries around the world,” stated United States Attorney Lynch. “The defendant Lupoi sought to use his connections with both ‘Ndrangheta and the Gambino crime family to extend his own criminal reach literally around the globe. Today, thanks to the vigilance and sustained cooperation of the Department of Justice and its law enforcement partners in Italy, the ‘Ndrangheta’s efforts to gain a foothold in New York have been dealt a lasting blow.” Ms. Lynch praised the outstanding investigative efforts of the Federal Bureau of Investigation and expressed her thanks to law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria; the Italian National Police (INP), in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo; the Direzione Centrale per i Servizi Antidroga; and the Direzione Nazionale Antimafia. Ms. Lynch also expressed gratitude to the U.S. Department of Justice Attaché and the the FBI Legal Attaché at the U.S. Embassy in Rome, who coordinated extensive evidence-sharing and undercover operations.
“As alleged, ‘Ndrangheta’s clan members conspired with members of the Gambino organized crime family in New York in an attempt to infiltrate our area with their illegal activities. Under the auspices of legitimate shipping businesses, the two criminal groups worked together to establish a plan of moving cocaine and heroin between the United States and Italy. Little did they know, there was an ongoing collaboration between the FBI and the Italian National Police to investigate and identify their scheme. This international cooperation between our great law enforcement agencies is one that was established at the beginning of our investigation, and it remains in place today. With every arrest made, both here and in Italy, FBI agents and Italian National Police officers closely coordinated their operations and share the success of this operation,” said FBI Assistant Director in Charge Venizelos.
As detailed in the indictment and detention letter filed today, defendant Franco Lupoi, a Brooklyn resident who has lived in Calabria, used his close criminal ties to both the Gambino organized crime family and the ‘Ndrangheta, an Italian criminal organization akin to the Mafia in Sicily and the Camorra in Naples, to pursue criminal activity that stretched across the globe. The Italian charges unsealed today reveal how the ‘Ndrangheta has operated for decades in Calabria in localized clans—known as ‘ndrine—based primarily on close family ties. In this case, Lupoi’s father-in-law, Italian defendant Nicola Antonio Simonetta, is a member of the Ursino clan of the ‘Ndrangheta. In 2012, Simonetta traveled to Brooklyn and met with Lupoi and an undercover FBI agent, who recorded Simonetta and Lupoi discussing plans to ship narcotics between the U.S. and Italy via the port of Gioia Tauro in Calabria, an infamous hub of ‘Ndrangheta activity. Simonetta revealed that his ‘Ndrangheta associates at the port would guarantee the safe arrival of container ships containing contraband.
As alleged in court documents, Lupoi exploited these underworld connections to link his criminal associates in New York with those in Calabria, forming conspiracies to traffic heroin and cocaine. On the Italian side, he allegedly engaged Italian defendant and ‘Ndrangheta leader Francesco Ursino and others as suppliers of heroin and buyers of cocaine. During two joint FBI-INP operations in Italy, Lupoi and Ursino sold more than 1.3 kilograms of heroin to an FBI undercover agent for what they believed was eventual distribution in the United States. In New York, Lupoi, Chan, and Garcia sold the undercover agent more than a kilogram of heroin.
As alleged, Lupoi also set into motion a plot to transport 500 kilograms of cocaine, concealed in frozen food, in shipping containers from Guyana to Calabria. In the course of these conspiracies, Lupoi assured his confederates of his relationship with a corrupt port official in Gioia Tauro, indicating that in return for €200,000, the official could guarantee passage of unlimited containers of contraband. In New York, Lupoi joined forces with defendants Alexander Chan and Garcia to orchestrate the Guyana-Italy cocaine conspiracy. In conversations recorded by the undercover agent, the conspirators discussed their connections to Mexican drug cartels operating in Guyana, South America, and plotted to transport 500 kilograms of cocaine internationally, hidden in shipments of frozen fish or pineapples. On the Italian side, Ursino and his co-conspirators planned to use a fish importation company to receive the shipment. As set forth in Italian court documents, the conspiracy slowed when shipping containers originating from the same Guyanese shipping company were seized in Malaysia and found to contain more than $7 million in cocaine hidden in pineapples and coconut milk.
As set forth in court documents, Lupoi also worked closely with U.S. defendant and ‘Ndrangheta member Raffaele Valente, who sold an illegal silencer and sawed-off shotgun to the FBI undercover agent at the Royal Crown Bakery in Brooklyn. In conversations intercepted on Italian wiretaps, Valente revealed that he had assembled a group of well-armed men in New York and that their base of operations was as secure as Fort Knox. Valente also discussed his devotion to St. Michael the Archangel as the purported “patron saint” of the ‘Ndrangheta and exhorted Italian defendant Andrea Memmolo to wear a special ring as a sign of pride and mutual recognition. Valente and Lupoi are charged with conspiracy to transfer a firearm, and Valente is charged with two counts of illegal possession of a silencer. Valente is also charged in Italy with the crime of mafia association based on his role in establishing an ‘Ndrangheta cell in New York.
As alleged, Lupoi further maintained a network of money laundering associates in New York. He and his co-defendants Dominic Ali, Charles “Charlie Pepsi” Centaro, and Christos Fasarakis, an employee of Alma Bank in Brooklyn, laundered more than $500,000 in funds that they believed were the proceeds of narcotics and illegal weapons trafficking. Centaro was recorded describing his access to bank accounts with millions of dollars through which he could launder and conceal criminal proceeds.
If convicted, Lupoi, Chan, and Garcia face a maximum sentence of life imprisonment; Ali, Centaro, and Fasarakis face a maximum sentence of 20 years’ imprisonment on each money laundering charge; and Valente faces a maximum sentence of 10 years’ imprisonment on each firearms charge.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Kristin Mace, and Kevin Trowel.
The charges contained in the indictment and complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Defendants
Franco Lupoi
Age: 44
Brooklyn, New York
Dominic Ali
Age: 55
Brooklyn, New York
Charles Centaro, a.k.a. “Charlie Pepsi”
Age: 50
Brooklyn, New York
Alexander Chan
Age: 46
New York, New York
Christos Fasarakis
Age: 42
Brooklyn, New York
Raffaele Valente, a.k.a. “Lello”
Age: 42
Brooklyn, New York
Jose Alfredo Garcia, a.k.a. “Freddy”
Age: 47
New York, New York
The seven defendants arrested in the United States were scheduled to be arraigned this afternoon before Chief United States Magistrate Judge Steven M. Gold, at the United States Courthouse at 225 Cadman Plaza East in Brooklyn, New York. The case has been assigned to United States District Judge Sterling Johnson, Jr.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“The ‘Ndrangheta is an exceptionally dangerous, sophisticated, and insidious criminal organization with tentacles stretching from Italy to countries around the world,” stated United States Attorney Lynch. “The defendant Lupoi sought to use his connections with both ‘Ndrangheta and the Gambino crime family to extend his own criminal reach literally around the globe. Today, thanks to the vigilance and sustained cooperation of the Department of Justice and its law enforcement partners in Italy, the ‘Ndrangheta’s efforts to gain a foothold in New York have been dealt a lasting blow.” Ms. Lynch praised the outstanding investigative efforts of the Federal Bureau of Investigation and expressed her thanks to law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria; the Italian National Police (INP), in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo; the Direzione Centrale per i Servizi Antidroga; and the Direzione Nazionale Antimafia. Ms. Lynch also expressed gratitude to the U.S. Department of Justice Attaché and the the FBI Legal Attaché at the U.S. Embassy in Rome, who coordinated extensive evidence-sharing and undercover operations.
“As alleged, ‘Ndrangheta’s clan members conspired with members of the Gambino organized crime family in New York in an attempt to infiltrate our area with their illegal activities. Under the auspices of legitimate shipping businesses, the two criminal groups worked together to establish a plan of moving cocaine and heroin between the United States and Italy. Little did they know, there was an ongoing collaboration between the FBI and the Italian National Police to investigate and identify their scheme. This international cooperation between our great law enforcement agencies is one that was established at the beginning of our investigation, and it remains in place today. With every arrest made, both here and in Italy, FBI agents and Italian National Police officers closely coordinated their operations and share the success of this operation,” said FBI Assistant Director in Charge Venizelos.
As detailed in the indictment and detention letter filed today, defendant Franco Lupoi, a Brooklyn resident who has lived in Calabria, used his close criminal ties to both the Gambino organized crime family and the ‘Ndrangheta, an Italian criminal organization akin to the Mafia in Sicily and the Camorra in Naples, to pursue criminal activity that stretched across the globe. The Italian charges unsealed today reveal how the ‘Ndrangheta has operated for decades in Calabria in localized clans—known as ‘ndrine—based primarily on close family ties. In this case, Lupoi’s father-in-law, Italian defendant Nicola Antonio Simonetta, is a member of the Ursino clan of the ‘Ndrangheta. In 2012, Simonetta traveled to Brooklyn and met with Lupoi and an undercover FBI agent, who recorded Simonetta and Lupoi discussing plans to ship narcotics between the U.S. and Italy via the port of Gioia Tauro in Calabria, an infamous hub of ‘Ndrangheta activity. Simonetta revealed that his ‘Ndrangheta associates at the port would guarantee the safe arrival of container ships containing contraband.
As alleged in court documents, Lupoi exploited these underworld connections to link his criminal associates in New York with those in Calabria, forming conspiracies to traffic heroin and cocaine. On the Italian side, he allegedly engaged Italian defendant and ‘Ndrangheta leader Francesco Ursino and others as suppliers of heroin and buyers of cocaine. During two joint FBI-INP operations in Italy, Lupoi and Ursino sold more than 1.3 kilograms of heroin to an FBI undercover agent for what they believed was eventual distribution in the United States. In New York, Lupoi, Chan, and Garcia sold the undercover agent more than a kilogram of heroin.
As alleged, Lupoi also set into motion a plot to transport 500 kilograms of cocaine, concealed in frozen food, in shipping containers from Guyana to Calabria. In the course of these conspiracies, Lupoi assured his confederates of his relationship with a corrupt port official in Gioia Tauro, indicating that in return for €200,000, the official could guarantee passage of unlimited containers of contraband. In New York, Lupoi joined forces with defendants Alexander Chan and Garcia to orchestrate the Guyana-Italy cocaine conspiracy. In conversations recorded by the undercover agent, the conspirators discussed their connections to Mexican drug cartels operating in Guyana, South America, and plotted to transport 500 kilograms of cocaine internationally, hidden in shipments of frozen fish or pineapples. On the Italian side, Ursino and his co-conspirators planned to use a fish importation company to receive the shipment. As set forth in Italian court documents, the conspiracy slowed when shipping containers originating from the same Guyanese shipping company were seized in Malaysia and found to contain more than $7 million in cocaine hidden in pineapples and coconut milk.
As set forth in court documents, Lupoi also worked closely with U.S. defendant and ‘Ndrangheta member Raffaele Valente, who sold an illegal silencer and sawed-off shotgun to the FBI undercover agent at the Royal Crown Bakery in Brooklyn. In conversations intercepted on Italian wiretaps, Valente revealed that he had assembled a group of well-armed men in New York and that their base of operations was as secure as Fort Knox. Valente also discussed his devotion to St. Michael the Archangel as the purported “patron saint” of the ‘Ndrangheta and exhorted Italian defendant Andrea Memmolo to wear a special ring as a sign of pride and mutual recognition. Valente and Lupoi are charged with conspiracy to transfer a firearm, and Valente is charged with two counts of illegal possession of a silencer. Valente is also charged in Italy with the crime of mafia association based on his role in establishing an ‘Ndrangheta cell in New York.
As alleged, Lupoi further maintained a network of money laundering associates in New York. He and his co-defendants Dominic Ali, Charles “Charlie Pepsi” Centaro, and Christos Fasarakis, an employee of Alma Bank in Brooklyn, laundered more than $500,000 in funds that they believed were the proceeds of narcotics and illegal weapons trafficking. Centaro was recorded describing his access to bank accounts with millions of dollars through which he could launder and conceal criminal proceeds.
If convicted, Lupoi, Chan, and Garcia face a maximum sentence of life imprisonment; Ali, Centaro, and Fasarakis face a maximum sentence of 20 years’ imprisonment on each money laundering charge; and Valente faces a maximum sentence of 10 years’ imprisonment on each firearms charge.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Kristin Mace, and Kevin Trowel.
The charges contained in the indictment and complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Defendants
Franco Lupoi
Age: 44
Brooklyn, New York
Dominic Ali
Age: 55
Brooklyn, New York
Charles Centaro, a.k.a. “Charlie Pepsi”
Age: 50
Brooklyn, New York
Alexander Chan
Age: 46
New York, New York
Christos Fasarakis
Age: 42
Brooklyn, New York
Raffaele Valente, a.k.a. “Lello”
Age: 42
Brooklyn, New York
Jose Alfredo Garcia, a.k.a. “Freddy”
Age: 47
New York, New York
Monday, February 10, 2014
Phillip D. Murphy, Former Bank of America Executive, Pleads Guilty to Role in Conspiracy and Fraud Involving Investment Contracts for Municipal Bonds Proceeds
A former Bank of America executive pleaded guilty today to his participation in a conspiracy and scheme to defraud related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
Phillip D. Murphy, the former managing director of Bank of America’s municipal derivatives products desk from 1998 to 2002, pleaded guilty today before U.S. District Judge Max O. Cogburn, Jr. in the U.S. District Court for the Western District of North Carolina to participating in a fraud conspiracy and wire fraud scheme with employees of Rubin/Chambers, Dunhill Insurance Services Inc., also known as CDR Financial Products, a broker of municipal finance contracts, and others. Murphy also pleaded guilty to conspiring with others to make false entries in the reports and statements originating from his desk, which were sent to bank management.
Murphy was indicted by a grand jury on July 19, 2012. According to the indictment, Murphy participated in a wire fraud scheme and separate fraud conspiracies that began as early as 1998 and continued until 2006.
“By manipulating what was intended to be a competitive bidding process, the conspirators defrauded municipalities, public entities, and taxpayers across the country,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s Criminal Enforcement Program. “Today’s guilty plea reaffirms the Antitrust Division’s continued efforts to hold accountable those who corrupt and subvert the competitive process in our financial markets.”
Public entities seek to invest money from a variety of sources, primarily the proceeds of municipal bonds that they issue, to raise money for, among other things, public projects. Public entities typically hire a broker to conduct a competitive bidding process for the award of the investment agreements and often for other municipal finance contracts.
According to the charges, Murphy conspired with CDR and others to increase the number and profitability of investment agreements and other municipal finance contracts awarded to Bank of America. Murphy won investment agreements through CDR’s manipulation of the bidding process in obtaining losing bids from other providers, which is explicitly prohibited by U.S. Treasury regulations. As a result of the information, various providers won investment agreements and other municipal finance contracts at artificially determined prices. In exchange for this information, Murphy submitted intentionally losing bids for certain investment agreements and other contracts when requested and, on occasion, agreed to pay or arranged for kickbacks to be paid to CDR and other co-conspirator brokers.
Murphy and his co-conspirators misrepresented to municipal issuers that the bidding process was competitive and in compliance with U.S. Treasury regulations. This caused the municipal issuers to award investment agreements and other municipal finance contracts to providers that otherwise would not have been awarded the contracts if the issuers had true and accurate information regarding the bidding process. Such conduct placed the tax-exempt status of the underlying bonds in jeopardy.
“Mr. Murphy’s actions undermined the public’s trust when he conspired to manipulate a competitive bidding process,” said Richard Weber, Chief, IRS-Criminal Investigation (IRS-CI). “IRS-CI has experienced great success in unraveling significant and complex financial frauds as we work in close collaboration with our law enforcement partners.”
“Mr. Murphy ripped off hard working American taxpayers and cash-strapped municipalities all in pursuit of his own lucre,” said George Venizelos, Assistant Director in Charge of the FBI’s New York Field Office. “Let this serve as a reminder to others who are entrusted to act in the public’s best interest; your lack of candor won’t go without notice.”
Murphy pleaded guilty to two counts of conspiracy and one count of wire fraud. The fraud conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine. The false bank records conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. The maximum fines for each of these offenses may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Murphy, a total of 17 individuals have been convicted or pleaded guilty. Additionally, one company has pleaded guilty.
The prosecution is being handled by Steven Tugander, Richard Powers, Eric Hoffmann, Patricia Jannaco, and Stephanie Raney of the Antitrust Division. Assistant U.S. Attorneys Kurt Meyers, Michael Savage, and Mark Odulio of the U.S. Attorney’s Office for the Western District of North Carolina have also provided valuable assistance in this matter. The guilty plea announced today resulted from a wide-ranging investigation conducted by the Antitrust Division’s New York office, the FBI, and the IRS-CI. The division coordinated its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency, and the Federal Reserve Bank of New York.
Phillip D. Murphy, the former managing director of Bank of America’s municipal derivatives products desk from 1998 to 2002, pleaded guilty today before U.S. District Judge Max O. Cogburn, Jr. in the U.S. District Court for the Western District of North Carolina to participating in a fraud conspiracy and wire fraud scheme with employees of Rubin/Chambers, Dunhill Insurance Services Inc., also known as CDR Financial Products, a broker of municipal finance contracts, and others. Murphy also pleaded guilty to conspiring with others to make false entries in the reports and statements originating from his desk, which were sent to bank management.
Murphy was indicted by a grand jury on July 19, 2012. According to the indictment, Murphy participated in a wire fraud scheme and separate fraud conspiracies that began as early as 1998 and continued until 2006.
“By manipulating what was intended to be a competitive bidding process, the conspirators defrauded municipalities, public entities, and taxpayers across the country,” said Brent Snyder, Deputy Assistant Attorney General of the Antitrust Division’s Criminal Enforcement Program. “Today’s guilty plea reaffirms the Antitrust Division’s continued efforts to hold accountable those who corrupt and subvert the competitive process in our financial markets.”
Public entities seek to invest money from a variety of sources, primarily the proceeds of municipal bonds that they issue, to raise money for, among other things, public projects. Public entities typically hire a broker to conduct a competitive bidding process for the award of the investment agreements and often for other municipal finance contracts.
According to the charges, Murphy conspired with CDR and others to increase the number and profitability of investment agreements and other municipal finance contracts awarded to Bank of America. Murphy won investment agreements through CDR’s manipulation of the bidding process in obtaining losing bids from other providers, which is explicitly prohibited by U.S. Treasury regulations. As a result of the information, various providers won investment agreements and other municipal finance contracts at artificially determined prices. In exchange for this information, Murphy submitted intentionally losing bids for certain investment agreements and other contracts when requested and, on occasion, agreed to pay or arranged for kickbacks to be paid to CDR and other co-conspirator brokers.
Murphy and his co-conspirators misrepresented to municipal issuers that the bidding process was competitive and in compliance with U.S. Treasury regulations. This caused the municipal issuers to award investment agreements and other municipal finance contracts to providers that otherwise would not have been awarded the contracts if the issuers had true and accurate information regarding the bidding process. Such conduct placed the tax-exempt status of the underlying bonds in jeopardy.
“Mr. Murphy’s actions undermined the public’s trust when he conspired to manipulate a competitive bidding process,” said Richard Weber, Chief, IRS-Criminal Investigation (IRS-CI). “IRS-CI has experienced great success in unraveling significant and complex financial frauds as we work in close collaboration with our law enforcement partners.”
“Mr. Murphy ripped off hard working American taxpayers and cash-strapped municipalities all in pursuit of his own lucre,” said George Venizelos, Assistant Director in Charge of the FBI’s New York Field Office. “Let this serve as a reminder to others who are entrusted to act in the public’s best interest; your lack of candor won’t go without notice.”
Murphy pleaded guilty to two counts of conspiracy and one count of wire fraud. The fraud conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine. The false bank records conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. The maximum fines for each of these offenses may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Murphy, a total of 17 individuals have been convicted or pleaded guilty. Additionally, one company has pleaded guilty.
The prosecution is being handled by Steven Tugander, Richard Powers, Eric Hoffmann, Patricia Jannaco, and Stephanie Raney of the Antitrust Division. Assistant U.S. Attorneys Kurt Meyers, Michael Savage, and Mark Odulio of the U.S. Attorney’s Office for the Western District of North Carolina have also provided valuable assistance in this matter. The guilty plea announced today resulted from a wide-ranging investigation conducted by the Antitrust Division’s New York office, the FBI, and the IRS-CI. The division coordinated its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency, and the Federal Reserve Bank of New York.
Seven Arts Entertainment CEO Indicted in Fraudulent Film Tax Credit Scheme
Peter M. Hoffman, age 63, of Los Angeles, California, and Michael P. Arata, age 47, of New Orleans, Louisiana, were charged in a six count indictment by a federal grand jury with conspiracy and wire fraud, announced United States Attorney Kenneth Allen Polite, Jr.
According to the indictment, the Louisiana Motion Picture Incentive Act (LMPIA) was enacted to provide incentives for and encourage the filming of motion pictures and television programs in Louisiana. Under the LMPIA, companies making motion pictures were eligible to receive tax credits that were calculated as a percentage of the companies’ qualified expenditures in Louisiana. Qualified expenditures upon which companies could receive tax credits included expenditures on infrastructure. Infrastructure expenditures only included the purchase, construction, and use of facilities that were directly related to and utilized for motion picture production in Louisiana. In order to qualify for infrastructure tax credits, all funds had to be actually expended, and such expenditures had to be verified by an independent Louisiana Certified Public Accountant. Businesses that applied to the state for infrastructure tax credits were entitled to receive an amount equal to 40 percent of their qualified and audited infrastructure expenditures. Once this amount was certified by the state of Louisiana, the applicants could then sell the certification to local businesses and individuals. Such sale of tax credits provided for a significant source of cash for film projects.
The defendant, Peter M. Hoffman, was the chief executive officer of Seven Arts Entertainment Inc., a company that was primarily involved in the motion picture and entertainment industry in California. As chief executive officer of Seven Arts Entertainment Inc., his duties included the selection and production of major motion pictures, strategic planning, business development, operations, financial administration, and accounting. Hoffman was also an attorney and participated as a lawyer and executive in numerous financial and tax-preferred financings over a period of more than 25 years. Hoffman also owned, operated, and controlled numerous companies related to and affiliated with Seven Arts Entertainment Inc.
The co-defendant, Michael P. Arata, was a Louisiana attorney and businessman who also owned and operated companies involved in the movie and entertainment industry. Through their respective companies, Hoffman and Arata were partners in different movie-industry business ventures.
Through their respective companies, Hoffman and Arata purchased property located at 807 Esplanade in New Orleans, Louisiana. 807 Esplanade was an old mansion located in the Faubourg Marigny neighborhood on the edge of the French Quarter that had fallen into a severe state of disrepair over many years. The proposed reason for purchasing the property was to renovate the mansion and turn it into a film post-production facility.
After purchasing the property, Hoffman and Arata submitted an application and supporting documents to the state of Louisiana in order to receive film infrastructure tax credits for money the defendants fraudulently claimed had been spent on 807 Esplanade. On or about June 19, 2009, the state of Louisiana issued approximately $1,132,480.80 in tax credits to the 807 Esplanade partnership.
The Indictment charges that Hoffman and Arata fraudulently submitted materially false and misleading documents and information regarding 807 Esplanade expenditures to the auditors and to the state of Louisiana in order to receive infrastructure tax credits.
“The United States Attorney’s Office, the FBI. and the Louisiana Office of the Inspector General stand committed to protecting the economic interests of the United States and the state of Louisiana,” stated U.S. Attorney Polite. “The state of Louisiana has provided significant incentives to the film and entertainment industry in order to develop business and employment in Louisiana. Such an important effort will not be criminally exploited.”
“Those who brazenly steal from the taxpayers and abuse tax credit programs should know that we will relentlessly pursue and hold them criminally accountable wherever possible,” stated Louisiana Inspector General Stephen Street. “We remain committed to working with the FBI and United States Attorney to root out this sort of corruption wherever it may exist.”
Hoffman and Arata face a maximum term of imprisonment of five years with respect to count one and 20 years with respect to each of counts two through six. The defendants also face a maximum fine of $250,000 with respect to each count and supervised release of three years.
According to the indictment, the Louisiana Motion Picture Incentive Act (LMPIA) was enacted to provide incentives for and encourage the filming of motion pictures and television programs in Louisiana. Under the LMPIA, companies making motion pictures were eligible to receive tax credits that were calculated as a percentage of the companies’ qualified expenditures in Louisiana. Qualified expenditures upon which companies could receive tax credits included expenditures on infrastructure. Infrastructure expenditures only included the purchase, construction, and use of facilities that were directly related to and utilized for motion picture production in Louisiana. In order to qualify for infrastructure tax credits, all funds had to be actually expended, and such expenditures had to be verified by an independent Louisiana Certified Public Accountant. Businesses that applied to the state for infrastructure tax credits were entitled to receive an amount equal to 40 percent of their qualified and audited infrastructure expenditures. Once this amount was certified by the state of Louisiana, the applicants could then sell the certification to local businesses and individuals. Such sale of tax credits provided for a significant source of cash for film projects.
The defendant, Peter M. Hoffman, was the chief executive officer of Seven Arts Entertainment Inc., a company that was primarily involved in the motion picture and entertainment industry in California. As chief executive officer of Seven Arts Entertainment Inc., his duties included the selection and production of major motion pictures, strategic planning, business development, operations, financial administration, and accounting. Hoffman was also an attorney and participated as a lawyer and executive in numerous financial and tax-preferred financings over a period of more than 25 years. Hoffman also owned, operated, and controlled numerous companies related to and affiliated with Seven Arts Entertainment Inc.
The co-defendant, Michael P. Arata, was a Louisiana attorney and businessman who also owned and operated companies involved in the movie and entertainment industry. Through their respective companies, Hoffman and Arata were partners in different movie-industry business ventures.
Through their respective companies, Hoffman and Arata purchased property located at 807 Esplanade in New Orleans, Louisiana. 807 Esplanade was an old mansion located in the Faubourg Marigny neighborhood on the edge of the French Quarter that had fallen into a severe state of disrepair over many years. The proposed reason for purchasing the property was to renovate the mansion and turn it into a film post-production facility.
After purchasing the property, Hoffman and Arata submitted an application and supporting documents to the state of Louisiana in order to receive film infrastructure tax credits for money the defendants fraudulently claimed had been spent on 807 Esplanade. On or about June 19, 2009, the state of Louisiana issued approximately $1,132,480.80 in tax credits to the 807 Esplanade partnership.
The Indictment charges that Hoffman and Arata fraudulently submitted materially false and misleading documents and information regarding 807 Esplanade expenditures to the auditors and to the state of Louisiana in order to receive infrastructure tax credits.
“The United States Attorney’s Office, the FBI. and the Louisiana Office of the Inspector General stand committed to protecting the economic interests of the United States and the state of Louisiana,” stated U.S. Attorney Polite. “The state of Louisiana has provided significant incentives to the film and entertainment industry in order to develop business and employment in Louisiana. Such an important effort will not be criminally exploited.”
“Those who brazenly steal from the taxpayers and abuse tax credit programs should know that we will relentlessly pursue and hold them criminally accountable wherever possible,” stated Louisiana Inspector General Stephen Street. “We remain committed to working with the FBI and United States Attorney to root out this sort of corruption wherever it may exist.”
Hoffman and Arata face a maximum term of imprisonment of five years with respect to count one and 20 years with respect to each of counts two through six. The defendants also face a maximum fine of $250,000 with respect to each count and supervised release of three years.
Subscribe to:
Posts (Atom)