A former executive of the Shaw Group has pled guilty to engaging in insider trading. The conviction is the result of an ongoing federal investigation into the use of pre-merger confidential information regarding the 2012 acquisition of Shaw by Chicago Bridge and Iron Company (CB&I).
SCOTT DAVID ZERINGUE, age 48, of Baton Rouge, Louisiana, pled guilty before Chief Judge Brian A. Jackson to one count of conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371. ZERINGUE also agreed to forfeit proceeds derived from the offense.
In the Spring of 2012, Shaw began considering a potential merger. At the time, ZERINGUE was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012. As a result of the announcement, Shaw’s stock price rose substantially.
At today’s proceeding, ZERINGUE admitted that, prior to the public announcement, he received confidential inside information regarding the impending merger which he passed on to a family member with the understanding that the family member would trade in Shaw stock based on such information. Thereafter, ZERINGUE and the family member both used the inside information obtained by ZERINGUE to purchase Shaw stock and stock options. As a result of the insider trading, ZERINGUE and the family member made over $750,000 in profits.
ZERINGUE faces a sentence of up to five years’ imprisonment, a fine of up to $250,000, and up to three years of supervised release following imprisonment.
U.S. Attorney Green stated: “Insider trading undermines the level playing field that is essential to the integrity and fair functioning of the stock market. We will continue to aggressively investigate and prosecute individuals who exploit confidential company information for personal gain at shareholder expense.”
This matter is being investigated by the United States Secret Service, the Federal Bureau of Investigation (FBI), and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney J. Christopher Dippel, Jr., and Senior Litigation Counsel M. Patricia Jones.
The investigation is continuing. Anyone with information concerning pre-merger insider trading of Shaw stock is urged to contact Special Agent Moe Hattier of the FBI at 225-291-5159 or Special Agent Kevin Bodden of the U.S. Secret Service at 225-925-5436.
Monday, June 30, 2014
Friday, June 27, 2014
Patricia S Miller Charged with Stealing Over $2.5 Million in Client Funds
A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was indicted in U.S. District Court in Boston on charges that she orchestrated a multi-million dollar investment fraud scheme.
Patricia S. Miller, 67, was charged with five counts of wire fraud.
The indictment alleges that Miller used her position as a trusted financial adviser, as well as her association with the Massachusetts broker dealer, to obtain money from clients for purported investments never made on the behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 20 clients for these purported investment clubs. Instead of investing the money as promised, however, she misappropriated client funds for her own use.
If convicted, Miller faces a maximum sentence under the statute for each count of wire fraud of 20 years in prison, three years of supervised release, and a $250,000 fine.
Patricia S. Miller, 67, was charged with five counts of wire fraud.
The indictment alleges that Miller used her position as a trusted financial adviser, as well as her association with the Massachusetts broker dealer, to obtain money from clients for purported investments never made on the behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 20 clients for these purported investment clubs. Instead of investing the money as promised, however, she misappropriated client funds for her own use.
If convicted, Miller faces a maximum sentence under the statute for each count of wire fraud of 20 years in prison, three years of supervised release, and a $250,000 fine.
Thursday, June 26, 2014
Jose Morfi, Leader of Colombian Drug Trafficking Organization, Sentenced to 27 Years in Prison
U.S. District Judge Susan C. Bucklew sentenced Jose Samir Renteria-Cuero (51, Cali, Colombia), a/k/a “Jose Morfi,” to 27 years in federal prison for conspiring with others to distribute five kilograms or more of cocaine onboard a vessel subject to the jurisdiction of the United States. Renteria-Cuero pleaded guilty on February 6, 2014.
According to court documents, Renteria-Cuero was involved in maritime cocaine smuggling operations from the 1980s until at least 2009. He started out as a mechanic, servicing go-fast vessels (GFVs) and participating in GFV smuggling operations. Eventually, he acquired and built GFVs and self-propelled semi-submersible (SPSS) vessels and recruited mariners to participate in maritime cocaine smuggling operations. Renteria-Cuero worked with others to transport and store cocaine in Colombia, construct and repair GFVs and SPSS vessels, and dispatch those stateless vessels from Colombia. Renteria-Cuero acted as a “general contractor,” accepting contracts to build SPSS vessels from cocaine owners in Colombia. Renteria-Cuero provided maritime cocaine transportation services aboard stateless vessels that were used to smuggle the drugs from Colombia to Mexico, via the Pacific Ocean, in international waters, knowing and intending that the cocaine would ultimately be imported unlawfully into the United States. Many of these ventures involved at least 1,000 kilograms of cocaine.
Renteria-Cuero was arrested in Cali, Colombia in March 2012, and subsequently extradited to the United States, first arriving at a place in the Middle District of Florida.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
According to court documents, Renteria-Cuero was involved in maritime cocaine smuggling operations from the 1980s until at least 2009. He started out as a mechanic, servicing go-fast vessels (GFVs) and participating in GFV smuggling operations. Eventually, he acquired and built GFVs and self-propelled semi-submersible (SPSS) vessels and recruited mariners to participate in maritime cocaine smuggling operations. Renteria-Cuero worked with others to transport and store cocaine in Colombia, construct and repair GFVs and SPSS vessels, and dispatch those stateless vessels from Colombia. Renteria-Cuero acted as a “general contractor,” accepting contracts to build SPSS vessels from cocaine owners in Colombia. Renteria-Cuero provided maritime cocaine transportation services aboard stateless vessels that were used to smuggle the drugs from Colombia to Mexico, via the Pacific Ocean, in international waters, knowing and intending that the cocaine would ultimately be imported unlawfully into the United States. Many of these ventures involved at least 1,000 kilograms of cocaine.
Renteria-Cuero was arrested in Cali, Colombia in March 2012, and subsequently extradited to the United States, first arriving at a place in the Middle District of Florida.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Mel Ayton, Author of #HuntingthePresident Appears on Crime Beat Radio Tonight
Mel Ayton, author of Hunting the President: Threats, Plots and Assassination Attempts--From FDR to Obama, appears on Crime Beat Radio tonight.
In American history, four U.S. Presidents have been murdered at the hands of an assassin. In each case the assassinations changed the course of American history.
But most historians have overlooked or downplayed the many threats modern presidents have faced, and survived. Author Mel Ayton sets the record straight in his new book Hunting the Presidents: Threats, Plots and Assassination Attempts—From FDR to Obama, telling the sensational story of largely forgotten—or never-before revealed—malicious attempts to slay America’s leaders.
Supported by court records, newspaper archives, government reports, FBI files, and transcripts of interviews from presidential libraries, Hunting the Presidents reveals:
The relationships presidents held with their protectors and the effect it had on the Secret Service’s mission
Hunting the Presidents opens the vault of stories about how many of our recent Presidents have come within a hair’s breadth of assassination, leaving America’s fate in the balance. Most of these stories have remained buried—until now. Includes glossy photo signature of historic pictures and documents.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
In American history, four U.S. Presidents have been murdered at the hands of an assassin. In each case the assassinations changed the course of American history.
But most historians have overlooked or downplayed the many threats modern presidents have faced, and survived. Author Mel Ayton sets the record straight in his new book Hunting the Presidents: Threats, Plots and Assassination Attempts—From FDR to Obama, telling the sensational story of largely forgotten—or never-before revealed—malicious attempts to slay America’s leaders.Supported by court records, newspaper archives, government reports, FBI files, and transcripts of interviews from presidential libraries, Hunting the Presidents reveals:
- How an armed, would-be assassin stalked President Roosevelt and spent ten days waiting across the street from the White House for his chance to shoot him
- How the Secret Service foiled a plot by a Cuban immigrant who told coworkers he was going to shoot LBJ from a window overlooking the president’s motorcade route
- How a deranged man broke into Reagan’s California home and attempted to strangle the former president before he was subdued by Secret Service agents.
- In early 1992 a mentally deranged man stalking Bush turned up at the wrong presidential venue for his planned assassination attempt
The relationships presidents held with their protectors and the effect it had on the Secret Service’s mission
Hunting the Presidents opens the vault of stories about how many of our recent Presidents have come within a hair’s breadth of assassination, leaving America’s fate in the balance. Most of these stories have remained buried—until now. Includes glossy photo signature of historic pictures and documents.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Wednesday, June 25, 2014
Details on #OperationCrossCountry Recovery of 168 Juveniles in Nationwide Operation Targeting Commercial Child Sex Trafficking
During the past week, the FBI; its local, state, and federal law enforcement partners; and the National Center for Missing and Exploited Children (NCMEC) conducted Operation Cross Country VIII, a week-long enforcement action to address commercial child sex trafficking throughout the United States. This operation included enforcement actions in 106 cities across 54 FBI field divisions nationwide and resulted in 168 recoveries of children who were being victimized through prostitution. Additionally, 281 pimps were arrested on state and federal charges.
“Targeting and harming America’s children through commercial sex trafficking is a heinous crime, with serious consequences,” said FBI Director James B. Comey. “Every child deserves to be safe and sound. Through targeted measures like Operation Cross Country, we can end the cycle of victimization.”
“Child sex traffickers create a living nightmare for their adolescent victims,” said Leslie R. Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice. “They use fear and force and treat children as commodities of sex to be sold again and again. This operation puts traffickers behind bars and rescues kids from their nightmare so they can start reclaiming their childhood.”
Operation Cross Country is part of the Innocence Lost National Initiative that was established in 2003 by the FBI’s Criminal Investigative Division, in partnership with the Department of Justice and NCMEC, to address the growing problem of child prostitution.
“Operation Cross Country reveals that children are being targeted and sold for sex in America every day,” said John Ryan, president and CEO of NCMEC. “We’re proud to partner with the FBI and provide support to both law enforcement and victim specialists in the field as they help survivors take that first step toward freedom.”
To date, the FBI and its task force partners have recovered nearly 3,600 children from the streets. The investigations and subsequent 1,450 convictions have resulted in lengthy sentences, including 14 life terms and the seizure of more than $3.1 million in assets.
Task force operations usually begin as local enforcement actions that target truck stops, casinos, street “tracks,” and websites that advertise dating or escort services, based on intelligence gathered by officers working in their respective jurisdictions. Initial arrests are often violations of local and state laws relating to prostitution or solicitation. Information gleaned from those arrested frequently uncovers organized efforts to prostitute women and children across many states. FBI agents further develop this evidence in partnership with U.S. Attorney’s Offices and the U.S. Department of Justice’s Child Exploitation and Obscenity Section so that prosecutors can help bring federal charges in those cities where child prostitution occurs.
The Innocence Lost National Initiative partners with NCMEC to provide training for state and federal law enforcement agencies, prosecutors, and social service providers from across the country.
“Targeting and harming America’s children through commercial sex trafficking is a heinous crime, with serious consequences,” said FBI Director James B. Comey. “Every child deserves to be safe and sound. Through targeted measures like Operation Cross Country, we can end the cycle of victimization.”
“Child sex traffickers create a living nightmare for their adolescent victims,” said Leslie R. Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice. “They use fear and force and treat children as commodities of sex to be sold again and again. This operation puts traffickers behind bars and rescues kids from their nightmare so they can start reclaiming their childhood.”
Operation Cross Country is part of the Innocence Lost National Initiative that was established in 2003 by the FBI’s Criminal Investigative Division, in partnership with the Department of Justice and NCMEC, to address the growing problem of child prostitution.
“Operation Cross Country reveals that children are being targeted and sold for sex in America every day,” said John Ryan, president and CEO of NCMEC. “We’re proud to partner with the FBI and provide support to both law enforcement and victim specialists in the field as they help survivors take that first step toward freedom.”
To date, the FBI and its task force partners have recovered nearly 3,600 children from the streets. The investigations and subsequent 1,450 convictions have resulted in lengthy sentences, including 14 life terms and the seizure of more than $3.1 million in assets.
Task force operations usually begin as local enforcement actions that target truck stops, casinos, street “tracks,” and websites that advertise dating or escort services, based on intelligence gathered by officers working in their respective jurisdictions. Initial arrests are often violations of local and state laws relating to prostitution or solicitation. Information gleaned from those arrested frequently uncovers organized efforts to prostitute women and children across many states. FBI agents further develop this evidence in partnership with U.S. Attorney’s Offices and the U.S. Department of Justice’s Child Exploitation and Obscenity Section so that prosecutors can help bring federal charges in those cities where child prostitution occurs.
The Innocence Lost National Initiative partners with NCMEC to provide training for state and federal law enforcement agencies, prosecutors, and social service providers from across the country.
Tuesday, June 24, 2014
Is the Polish Government Under Attack from Organized Crime Groups?
The United States remains "a very important ally" to Poland and that will not change despite the leak of disparaging remarks by the country's top diplomat, the president said Monday.
President Bronislaw Komorowski spoke a day after the magazine Wprost released a transcript in which Foreign Minister Radek Sikorski said Poland's alliance with the U.S. is worthless and even harmful for the eastern European country because it created a false sense of security. "The United States is our very important ally and partner," Komorowski told reporters in Warsaw.
Transcripts of bugged restaurant conversations between top officials are rocking Prime Minister Donald Tusk's center-right government and critics have urged that it resign.
Earlier Monday, Tusk said he will not dismiss officials whose compromising conversations were caught on tape in what he called a "criminal" action by "ill-intentioned people."
Sikorski asserted Monday that organized crime was behind the secret recordings. "The government was attacked by an organized crime group," Sikorski said in Luxembourg. "We don't yet know who stands behind it."
He offered no proof for his statement.
The magazine says the recordings came from a "businessman" who did not do the taping and were made in the private VIP rooms of Warsaw restaurants.
In the transcript released by Wprost, Sikorski used vulgar terms while telling the former finance minister, Jacek Rostowski, the Polish-U.S. alliance is not helping Poland. "The Polish-American alliance isn't worth anything. It is even harmful because it gives Poland a false sense of security," Sikorski said. "(We are) suckers, total suckers."
In Washington, State Department spokeswoman Marie Harf wouldn't comment directly on the tapes, but said "the United States and Poland have an incredibly strong relationship ... based on shared values."
"It's a key part of our alliances in that part of the world. And the crisis in Ukraine, I think, has made that even more the case, where we're confronting a shared threat together," Harf said.
Earlier, Wprost released a conversation between Central Bank head Marek Belka and Interior Minister Bartlomiej Sienkiewicz where they discussed how the bank could help the governing party win re-election in 2015, a seeming violation of the bank's independence.
Thanks to Vanessa Gera.
President Bronislaw Komorowski spoke a day after the magazine Wprost released a transcript in which Foreign Minister Radek Sikorski said Poland's alliance with the U.S. is worthless and even harmful for the eastern European country because it created a false sense of security. "The United States is our very important ally and partner," Komorowski told reporters in Warsaw.
Transcripts of bugged restaurant conversations between top officials are rocking Prime Minister Donald Tusk's center-right government and critics have urged that it resign.
Earlier Monday, Tusk said he will not dismiss officials whose compromising conversations were caught on tape in what he called a "criminal" action by "ill-intentioned people."
Sikorski asserted Monday that organized crime was behind the secret recordings. "The government was attacked by an organized crime group," Sikorski said in Luxembourg. "We don't yet know who stands behind it."
He offered no proof for his statement.
The magazine says the recordings came from a "businessman" who did not do the taping and were made in the private VIP rooms of Warsaw restaurants.
In the transcript released by Wprost, Sikorski used vulgar terms while telling the former finance minister, Jacek Rostowski, the Polish-U.S. alliance is not helping Poland. "The Polish-American alliance isn't worth anything. It is even harmful because it gives Poland a false sense of security," Sikorski said. "(We are) suckers, total suckers."
In Washington, State Department spokeswoman Marie Harf wouldn't comment directly on the tapes, but said "the United States and Poland have an incredibly strong relationship ... based on shared values."
"It's a key part of our alliances in that part of the world. And the crisis in Ukraine, I think, has made that even more the case, where we're confronting a shared threat together," Harf said.
Earlier, Wprost released a conversation between Central Bank head Marek Belka and Interior Minister Bartlomiej Sienkiewicz where they discussed how the bank could help the governing party win re-election in 2015, a seeming violation of the bank's independence.
Thanks to Vanessa Gera.
David Malcom Strickland, Alleged Stone Cold Killer, Captured Fugitive Facing Capital Murder & Sexual Assault Charges
David Malcom Strickland, 27, was arrested by members of the United States Marshals Service Lone Star Fugitive Task Force (LSFTF) in Helotes, TX. Arrest warrants were issued for Strickland pursuant to an investigation by the Portland Police Department (PPD) and Texas Rangers (TR) on charges involving Capital Murder, Aggravated Assault with a Weapon, and Aggravated Sexual Assault.
The LSFTF was contacted by the TR for assistance in locating and apprehending Strickland. Through joint investigative efforts, task force officers and rangers determined that Strickland was hiding out at an apartment in the 12000 block of Bandera Road in Helotes. Task force officers and rangers conducted a brief surveillance and approached the apartment. Task force officers and rangers entered the apartment, identified themselves, and made contact with Strickland. Strickland was then taken into custody without incident.
On June 23, 2012, Strickland was allegedly involved in sexually assaulting and shooting two women in the head. The heinous assault took place at a park located in Portland, TX. Both women were left for dead in a grassy area of the park, but were later found by a couple passing by. One of the victims had succumbed to the gunshot wound, but the other victim survived. After an extensive investigation conducted by the PPD and TR, today, warrants were issued for Strickland’s arrest.
Strickland is currently being held in custody at the Helotes Police Department awaiting extradition to the San Patricio County Jail to face pending charges.
Robert R. Almonte, United States Marshal for the Western District of Texas, states, “I am thrilled that the collaborative efforts of the Lone Star Fugitive Task Force, Texas Rangers, and Portland Police Department resulted in Strickland’s arrest. He’s a stone cold killer who thought he got away with murder, but will finally pay for his crime. My sympathies and condolences go to the victims and their families who had to endure this wicked act of violence.”
The LSFTF was contacted by the TR for assistance in locating and apprehending Strickland. Through joint investigative efforts, task force officers and rangers determined that Strickland was hiding out at an apartment in the 12000 block of Bandera Road in Helotes. Task force officers and rangers conducted a brief surveillance and approached the apartment. Task force officers and rangers entered the apartment, identified themselves, and made contact with Strickland. Strickland was then taken into custody without incident.
On June 23, 2012, Strickland was allegedly involved in sexually assaulting and shooting two women in the head. The heinous assault took place at a park located in Portland, TX. Both women were left for dead in a grassy area of the park, but were later found by a couple passing by. One of the victims had succumbed to the gunshot wound, but the other victim survived. After an extensive investigation conducted by the PPD and TR, today, warrants were issued for Strickland’s arrest.
Strickland is currently being held in custody at the Helotes Police Department awaiting extradition to the San Patricio County Jail to face pending charges.
Robert R. Almonte, United States Marshal for the Western District of Texas, states, “I am thrilled that the collaborative efforts of the Lone Star Fugitive Task Force, Texas Rangers, and Portland Police Department resulted in Strickland’s arrest. He’s a stone cold killer who thought he got away with murder, but will finally pay for his crime. My sympathies and condolences go to the victims and their families who had to endure this wicked act of violence.”
Monday, June 23, 2014
Jewelry Store Owner, Vijay Verma, Admits Role in International, $200 Million Credit Card Fraud Scheme
A New Jersey jewelry store owner who used his business to further one of the largest credit card fraud schemes ever charged by the Justice Department, became the 18th conspirator to admit his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Vijay Verma, 46, of Iselin, N.J., pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of access device fraud. According to documents filed in this case and statements made in court:
Verma was indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Verma admitted he allowed others who came to his Jersey City, N.J., store to swipe cards he knew did not legitimately belong to them. Verma would then split the proceeds of the phony transactions with these other conspirators. The count to which Verma pleaded guilty carries a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 25, 2014.
Vijay Verma, 46, of Iselin, N.J., pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of access device fraud. According to documents filed in this case and statements made in court:
Verma was indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Verma admitted he allowed others who came to his Jersey City, N.J., store to swipe cards he knew did not legitimately belong to them. Verma would then split the proceeds of the phony transactions with these other conspirators. The count to which Verma pleaded guilty carries a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 25, 2014.
DCFS Auditor, Kaneasha L. Gordon, Pleads Guilty to Theft from a Federal Program
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge James J. Brady to theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A). She faces up to 10 years’ imprisonment, a fine up to $250,000, forfeiture of the proceeds from the offense, restitution, and up to three years of supervised release following a term of imprisonment. A sentencing date has not yet been set.
GOSTON was employed with DCFS’s Bureau of Auditing and Compliance Services which was responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded; and ensuring compliances with management policies, as well as federal and state laws and regulations. During the period she was employed with this department, DCFS received over a billion dollars annually in federal funds.
GOSTON admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts which were submitted were signed both by GOSTON and by DCFS Audit Director, Delrice Augustus, who also recently pled guilty as part of this scheme. When the requested amount of reimbursement would be received, GOSTON and Augustus would split the fraudulent payments. Augustus has been charged and pled guilty for his role in this and related fraudulent conduct.
U.S. Attorney Green stated: “Public corruption will continue to be a priority for this office, particularly when such corruption involves officials responsible for the proper handling of millions in federal funds. In waging this fight, we are encouraged by the active cooperation and assistance provided by the DCFS leadership in this investigation. The vast majority of public servants at DCFS are honest and hardworking individuals who despise corruption. All public servants should be vigilant against corruption and report wrongdoing immediately.”
Louisiana Inspector General Stephen Street commented: “Those who abuse positions of trust in order to steal from the taxpayers should know that the risk of criminal prosecution is high. This guilty plea is the latest example of that.”
GOSTON was employed with DCFS’s Bureau of Auditing and Compliance Services which was responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded; and ensuring compliances with management policies, as well as federal and state laws and regulations. During the period she was employed with this department, DCFS received over a billion dollars annually in federal funds.
GOSTON admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts which were submitted were signed both by GOSTON and by DCFS Audit Director, Delrice Augustus, who also recently pled guilty as part of this scheme. When the requested amount of reimbursement would be received, GOSTON and Augustus would split the fraudulent payments. Augustus has been charged and pled guilty for his role in this and related fraudulent conduct.
U.S. Attorney Green stated: “Public corruption will continue to be a priority for this office, particularly when such corruption involves officials responsible for the proper handling of millions in federal funds. In waging this fight, we are encouraged by the active cooperation and assistance provided by the DCFS leadership in this investigation. The vast majority of public servants at DCFS are honest and hardworking individuals who despise corruption. All public servants should be vigilant against corruption and report wrongdoing immediately.”
Louisiana Inspector General Stephen Street commented: “Those who abuse positions of trust in order to steal from the taxpayers should know that the risk of criminal prosecution is high. This guilty plea is the latest example of that.”
Joint Statement from the Office of the Director of National Intelligence and the Department of Justice on the Declassification of Renewal of Collection Under Section 501 of the Foreign Intelligence Surveillance Act
Earlier this year in a speech at the Department of Justice, President Obama announced a transition that would end the Section 215 bulk telephony metadata program as it previously existed, and that the government would establish a mechanism that preserves the capabilities we need without the government holding this bulk data. As a first step in that transition, the President directed the Attorney General to work with the Foreign Intelligence Surveillance Court (FISC) to ensure that, absent a true emergency, the telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. The President also directed that the query results must be limited to metadata within two hops of the selection term instead of three. These two changes were put into effect in February 2014. In addition to directing those immediate changes to the program, the President also directed the Intelligence Community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata. After carefully considering the available options, the President announced in March that the best path forward is that the government should not collect or hold this data in bulk, and that it remain at the telephone companies with a legal mechanism in place which would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries. The President also noted that legislation would be required to implement this option and called on Congress to enact this important change to the Foreign Intelligence Surveillance Act (FISA).
Consistent with the President’s March proposal, in May, the House of Representatives passed H.R. 3361, the USA FREEDOM Act, which would, if enacted, create a new mechanism for the government to obtain this telephony metadata pursuant to individual orders from the FISC, rather than in bulk. The bill also prohibits bulk collection through the use of Section 215, FISA pen registers and trap and trace devices, and National Security Letters. Overall, the bill’s significant reforms would provide the public greater confidence in our programs and the checks and balances in the system, while ensuring our intelligence and law enforcement professionals have the authorities they need to protect the Nation. The Administration strongly supports the USA FREEDOM Act. We urge the Senate to swiftly consider it, and remain ready to work with Congress to clarify that the bill prohibits bulk collection as noted above, as necessary.
Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the Section 215 telephony metadata program, the government has sought a 90-day reauthorization of the existing program, as modified by the changes the President announced earlier this year. Consistent with prior declassification decisions, in light of the significant and continuing public interest in the telephony metadata collection program, the Director of National Intelligence, James Clapper, has declassified the fact that the government’s application to renew the program was approved yesterday by the FISC . The order issued yesterday expires on Sept. 12, 2014. The Administration is undertaking a declassification review of this most recent court order and an accompanying memorandum opinion for publication.
Consistent with the President’s March proposal, in May, the House of Representatives passed H.R. 3361, the USA FREEDOM Act, which would, if enacted, create a new mechanism for the government to obtain this telephony metadata pursuant to individual orders from the FISC, rather than in bulk. The bill also prohibits bulk collection through the use of Section 215, FISA pen registers and trap and trace devices, and National Security Letters. Overall, the bill’s significant reforms would provide the public greater confidence in our programs and the checks and balances in the system, while ensuring our intelligence and law enforcement professionals have the authorities they need to protect the Nation. The Administration strongly supports the USA FREEDOM Act. We urge the Senate to swiftly consider it, and remain ready to work with Congress to clarify that the bill prohibits bulk collection as noted above, as necessary.
Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the Section 215 telephony metadata program, the government has sought a 90-day reauthorization of the existing program, as modified by the changes the President announced earlier this year. Consistent with prior declassification decisions, in light of the significant and continuing public interest in the telephony metadata collection program, the Director of National Intelligence, James Clapper, has declassified the fact that the government’s application to renew the program was approved yesterday by the FISC . The order issued yesterday expires on Sept. 12, 2014. The Administration is undertaking a declassification review of this most recent court order and an accompanying memorandum opinion for publication.
Sunday, June 22, 2014
Pope Francis, @Pontifex, Excommunicates #Mobsters with Calabrian Mafia from Catholic Church
Pope Francis concluded his one-day trip to the southern Italian region of Calabria with strong words against the Calabrian mafia, calling it “adoration of evil and contempt for the common good.”
“Those who in their lives have taken this evil road, this road of evil, such as the mobsters, they are not in communion with God, they are excommunicated,” he said to applause.
The Pope
made these statements on Saturday during the feast-day Mass he presided for Corpus Domini on the plains of the small town of Sibari, a once-important city in the Hellenistic period of Calabrian history.
Organizers planned for 200,000 faithful to attend. They gathered under the hot sun, with temperatures flirting around the 30-degree mark. Sitting in the first rows of the assembly were those with illness and disability, rather than local dignitaries—a decision the local bishop chose to underline ahead of the Pope’s trip.
The Pope’s visit to the region, marked by violence and corruption and renowned for mafia activity, was highly anticipated by the locals, who in recent months were rocked by the murder of Fr. Lazzaro Longobardi, as well as the death of a three-year-old boy, the innocent victim of a mafia homicide.
In his homily, the Pope spoke about the evils that can occur when adoration of God is replaced by adoration of money. “Your land, which so beautiful, knows the signs of the consequences of this sin," he told those assembled. "This evil must be fought, must be expelled.” He called on the local Church to expend itself even more “so that good can prevail”.
“Our children ask this of us,” he added.
He said faith can help in responding to these demands. He called the faithful of the Church in Calabria to be brothers and to show each other practical solidarity, noting signs of hope in local families and in the Church. He also urged young people not to allow themselves to be robbed of hope.
He told the faithful his trip was intended to express his support for the local Church, to confirm the people in faith and charity, and to encourage them in their journey with Jesus Christ.
“Today,” he continued, “we ask the Lord to enlighten us and to convert us, so that we truly adore only him and we renounce evil in all its forms.”
He concluded, saying that in adoring Christ and following him, parishes will grow in faith and charity and they will be places where people walk alongside each other and support, help and love each other, even in difficult moments
Thanks to Vatican Radio.
“Those who in their lives have taken this evil road, this road of evil, such as the mobsters, they are not in communion with God, they are excommunicated,” he said to applause.
The Pope
made these statements on Saturday during the feast-day Mass he presided for Corpus Domini on the plains of the small town of Sibari, a once-important city in the Hellenistic period of Calabrian history.Organizers planned for 200,000 faithful to attend. They gathered under the hot sun, with temperatures flirting around the 30-degree mark. Sitting in the first rows of the assembly were those with illness and disability, rather than local dignitaries—a decision the local bishop chose to underline ahead of the Pope’s trip.
The Pope’s visit to the region, marked by violence and corruption and renowned for mafia activity, was highly anticipated by the locals, who in recent months were rocked by the murder of Fr. Lazzaro Longobardi, as well as the death of a three-year-old boy, the innocent victim of a mafia homicide.
In his homily, the Pope spoke about the evils that can occur when adoration of God is replaced by adoration of money. “Your land, which so beautiful, knows the signs of the consequences of this sin," he told those assembled. "This evil must be fought, must be expelled.” He called on the local Church to expend itself even more “so that good can prevail”.
“Our children ask this of us,” he added.
He said faith can help in responding to these demands. He called the faithful of the Church in Calabria to be brothers and to show each other practical solidarity, noting signs of hope in local families and in the Church. He also urged young people not to allow themselves to be robbed of hope.
He told the faithful his trip was intended to express his support for the local Church, to confirm the people in faith and charity, and to encourage them in their journey with Jesus Christ.
“Today,” he continued, “we ask the Lord to enlighten us and to convert us, so that we truly adore only him and we renounce evil in all its forms.”
He concluded, saying that in adoring Christ and following him, parishes will grow in faith and charity and they will be places where people walk alongside each other and support, help and love each other, even in difficult moments
Thanks to Vatican Radio.
Saturday, June 21, 2014
Friday, June 20, 2014
"The White Boy Confessions" Chronicles Gang Life, Violence, Poverty and Race Relations in San Antonio, Texas
The White Boy Confessions: The Explosive Story of Marcus Valdespino and San Antonio's Hood, the powerful autobiography of San Antonio native Marcus Valdespino. White Boy Confessions deals with gang life and violence in San Antonio and such controversial subjects as race relations, poverty, and interracial crime. The first twenty-nine years of Valdespino’s life were compelling and tragic. Valdespino witnessed his father’s drug dealing to high profile people and he, unfortunately, followed in his footsteps. 
Valdespino’s story shows the worst of humanity and is chilling in its depiction of sex and violence and heartfelt, poignant and sad in its betrayal of the rite of passage of a young person growing up in this world.
The White Boys Confessions is also extremely powerful in its social and political commentary. There are several layers of the story contained within it that are both frightening and humorous. As white boy operated primarily in an African American environment, Valdespino had to prove his worth beyond a reasonable doubt. Yet, he went from a know nothing white kid of the streets in 1989 to second in command to a drug dealer in charge of a crack cocaine empire. The FEDS were after him and his crew from 1998 to 2000. There were many shoot outs, home invasions, beat downs, violent rapes, police raids, graphic explicit sex, human trafficking and even a murder.
Today, all of Valdespino’s friends are in the penitentiary, dead or their whereabouts are unknown. Yet, by some miracle he went unscathed and experienced no penitentiary time.. All of Valdespino’s story—the bad and the ugly-- is in The White Boy Confessions, a story of not just survival but also redemption.
Valdespino’s story shows the worst of humanity and is chilling in its depiction of sex and violence and heartfelt, poignant and sad in its betrayal of the rite of passage of a young person growing up in this world.
The White Boys Confessions is also extremely powerful in its social and political commentary. There are several layers of the story contained within it that are both frightening and humorous. As white boy operated primarily in an African American environment, Valdespino had to prove his worth beyond a reasonable doubt. Yet, he went from a know nothing white kid of the streets in 1989 to second in command to a drug dealer in charge of a crack cocaine empire. The FEDS were after him and his crew from 1998 to 2000. There were many shoot outs, home invasions, beat downs, violent rapes, police raids, graphic explicit sex, human trafficking and even a murder.
Today, all of Valdespino’s friends are in the penitentiary, dead or their whereabouts are unknown. Yet, by some miracle he went unscathed and experienced no penitentiary time.. All of Valdespino’s story—the bad and the ugly-- is in The White Boy Confessions, a story of not just survival but also redemption.
Thursday, June 19, 2014
Jewelry Store Owner Pleads Guilty in International $200 Million Credit Card Fraud Conspiracy
A New Jersey jewelry store owner who used his business to further one of the largest credit card fraud schemes ever charged by the Justice Department admitted his role in the scheme, the 17th conspirator to do so, New Jersey U.S. Attorney Paul J. Fishman announced.
Vinod Dadlani, 51, of Lyndhurst, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Dadlani was indicted in October 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Dadlani’s jewelry store, among many other locations, where Dadlani would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and then run up large charges.
The scope of the criminal fraud enterprise required Dadlani’s conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses for the false identities.
During his guilty plea proceeding, Dadlani admitted he worked with other conspirators, who came to his Jersey City, New Jersey store and allowed them to swipe cards he knew did not legitimately belong to them. Dadlani would then split the proceeds of the phony transactions with the conspirators.
The count to which Dadlani pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine or twice the gain or loss caused by the offense.
Dadlani is scheduled for sentencing by Judge Thompson on September 24, 2014.
Vinod Dadlani, 51, of Lyndhurst, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Dadlani was indicted in October 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Dadlani’s jewelry store, among many other locations, where Dadlani would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and then run up large charges.
The scope of the criminal fraud enterprise required Dadlani’s conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses for the false identities.
During his guilty plea proceeding, Dadlani admitted he worked with other conspirators, who came to his Jersey City, New Jersey store and allowed them to swipe cards he knew did not legitimately belong to them. Dadlani would then split the proceeds of the phony transactions with the conspirators.
The count to which Dadlani pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine or twice the gain or loss caused by the offense.
Dadlani is scheduled for sentencing by Judge Thompson on September 24, 2014.
Friday, June 13, 2014
New Book Investigates One of America's Most Controversial Spy Cases #SpyofDavid
Strategic Media Books is pleased to announce the publication of a timely book that profiles one of the biggest spy cases in U.S. history. Winston Churchill’s description of Stalinist Russia in 1939 – he called it “a riddle, wrapped in a mystery, inside an enigma” – easily could have been said about the case of Jonathan Jay Pollard, the U.S. Naval Intelligence analyst who, in March of 1987, received a mystifying life sentence for passing classified secrets to Israel, an American ally . Now, twenty-seven years later, the debate over America’s most controversial spy has apparently once again been rekindled.
A sequel
to author Elliot Goldenberg’s previous book, The Hunting Horse, Spy of David: The Strange Case of Jonathan Pollard and the Two Decade Battle to Win his Freedomchronicles the obstacles faced by Goldenberg and his partner in a motion picture project as they navigate the perilous waters of Hollywood and Washington in an attempt to not only separate fact from fiction about the Pollard spy case but, hopefully, make a feature film based on The Hunting Horse.
Always provocative, Spy of David intertwines the story of America’s most debated case of espionage with the dangers of international Islamic terrorism (including Middle Eastern ties to the Oklahoma City bombing), and the selling of a major motion picture. Simply put, Spy of David is an attempt to shed a bright light over a dark stain on both the American judicial system and our intelligence community, while, at the same time, solve a decades-old puzzle – knowing that, for way too long, the truth surrounding this most gut-wrenching of spy cases has remained hidden, blurred, and obscured.
A sequel
to author Elliot Goldenberg’s previous book, The Hunting Horse, Spy of David: The Strange Case of Jonathan Pollard and the Two Decade Battle to Win his Freedomchronicles the obstacles faced by Goldenberg and his partner in a motion picture project as they navigate the perilous waters of Hollywood and Washington in an attempt to not only separate fact from fiction about the Pollard spy case but, hopefully, make a feature film based on The Hunting Horse.Always provocative, Spy of David intertwines the story of America’s most debated case of espionage with the dangers of international Islamic terrorism (including Middle Eastern ties to the Oklahoma City bombing), and the selling of a major motion picture. Simply put, Spy of David is an attempt to shed a bright light over a dark stain on both the American judicial system and our intelligence community, while, at the same time, solve a decades-old puzzle – knowing that, for way too long, the truth surrounding this most gut-wrenching of spy cases has remained hidden, blurred, and obscured.
Thursday, June 12, 2014
Protect Your Computer from Malware
- Make sure you have updated antivirus software on your computer.
- Enable automated patches for your operating system and web browser.
- Have strong passwords, and don’t use the same passwords for everything.
- Use a pop-up blocker.
- Only download software—especially free software—from sites you know and trust (malware can also come in downloadable games, file-sharing programs, and customized toolbars).
- Don’t open e-mail attachments in unsolicited e-mails, even if they come from people in your contact list, and never click on a URL contained in an e-mail, even if you think it looks safe. Instead, close out the e-mail and go to the organization’s website directly.
- Enable automated patches for your operating system and web browser.
- Have strong passwords, and don’t use the same passwords for everything.
- Use a pop-up blocker.
- Only download software—especially free software—from sites you know and trust (malware can also come in downloadable games, file-sharing programs, and customized toolbars).
- Don’t open e-mail attachments in unsolicited e-mails, even if they come from people in your contact list, and never click on a URL contained in an e-mail, even if you think it looks safe. Instead, close out the e-mail and go to the organization’s website directly.
Monday, June 09, 2014
Investment Adviser, Patricia S. Miller, Charged with Stealing Client Funds in Massive Ponzi Scheme
A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was arrested on charges that she orchestrated a massive Ponzi scheme.
Patricia S. Miller, 67, was charged in a complaint with wire fraud and arrested in Pennsylvania today.
The complaint alleges that Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that Miller never made on their behalf. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Instead of investing money as promised, Miller misappropriated client funds for her own personal use.
If convicted, Miller faces a maximum sentence under the statute of 20 years in prison, three years of supervised release, and a $250,000 fine.
Patricia S. Miller, 67, was charged in a complaint with wire fraud and arrested in Pennsylvania today.
The complaint alleges that Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that Miller never made on their behalf. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Instead of investing money as promised, Miller misappropriated client funds for her own personal use.
If convicted, Miller faces a maximum sentence under the statute of 20 years in prison, three years of supervised release, and a $250,000 fine.
Violence is Entrenched in Chicago #MurderCityUSA
When a 14-year-old Chicago girl was arrested on charges that she shot and killed another 14-year-old Chicago girl, much of the attention centered on how the shooting stemmed from an argument over a boy that was playing out on Facebook. But to hear police, prosecutors and the victim's friends tell it, the slaying of Endia Martin was also a tragedy that could have been stopped by many people along the way — from a trusted uncle charged with bringing the teen a gun and watching as she opened fire, to an aunt who authorities say did not step in, to the victim herself, who did not heed classmates' warnings that she risked facing a gun on that April afternoon.
The war of words ended with Martin joining the longest list of homicides in any city in the nation — offering a glimpse at life and death in some pockets of Chicago, where a reflex to grab a gun has become entrenched enough that even the victim understood the other teen might be armed.
"They are making her look like a monster when she was just a love-starved child who turned to the wrong person," said Jerry Thomas, 48, a neighbor of the accused girl and acquaintance of the uncle, 25-year-old Donnell Flora, who is charged with first-degree murder. "This thing took both children's lives."
The girl charged with first-degree murder, accused of shooting Martin in the back on April 28, appeared in juvenile court Friday for a brief hearing. She was flanked by her mother and grandmother off to one side, and the mother of the victim and other relatives standing a few feet away on the other side. The Associated Press is not releasing the girl's name because she is a minor.
Martin, who wanted to be a nurse like her mother, became the latest symbol of the violence that has put Chicago at the center of a national debate about gun crime. In 2012, the city recorded more than 500 homicides — nearly 100 more than New York. The numbers have since dropped, though Chicago still leads the nation.
Endia Martin's death highlights another part of the same Chicago story: Not of a gang dispute, but one of neighborhoods where police say firearms are so easy to find, so accepted, that a good student and respectful child allegedly contacted an uncle — himself, police say, a known gang member who has been in a wheelchair since he was shot in 2010 — and asked him to bring her a gun.
"How could he do that?' Kent Kennedy, Endia's stepfather, asked after the hearing. Kennedy, who called Endia and the suspect friends who'd graduated from eighth grade together, said he can't believe all the things that weren't done. "Just to get there on the bus, the uncle had to (travel) an hour, hour and a half on public transportation on, how could he not grab his niece and say, you should leave from this area?"
The minister who eulogized Endia at her funeral suggested that if the allegations about Flora are true, he was a man passing on a way of life he could no longer have himself. "If you're shot and paralyzed, what do you do?" asked Pastor Larry Martin, who is not related to Endia. "You can't be the villain in the neighborhood in a wheelchair, but you can help empower someone else."
Police Superintendent Garry McCarthy pointed to Flora's earlier refusal to cooperate with investigators after he was shot as a "'classic example of the cycle of violence ... that exemplifies what we are up against." McCarthy noted the prevalence of guns, and lenient sentences for gun crimes, as one of the main problems behind the city's violence.
The teen charged in the slaying was, according to Thomas, a nice girl who always had a book in her hand and said hello on her way to school. Both she and her uncle are represented by Cook County's public defender's office, which declined to comment.
Authorities also contended the suspect's aunt could have intervened. During a court hearing, a police officer testified that 32-year-old Vandetta Redwood encouraged the suspect and other teens to "kick their ass."
Footage from a cellphone camera appears to confirm Redwood was at the fight, said her attorney. But he argued there was no evidence she played a role in the shooting and a judge agreed, dismissing mob action and obstruction charges against her. Redwood declined comment.
At Endia's high school, there's talk among students of a different outcome had she listened to classmates who heard someone might bring a gun. "But she didn't expect anyone to actually use it," said one of the classmates who tried to talk Endia out of going to the scene of the fight. The classmate, who has known both girls since elementary school, spoke on condition of anonymity due to concern about retaliation. "Sometimes they bring guns to a fight — it happens."
Thanks to Don Babwin.
The war of words ended with Martin joining the longest list of homicides in any city in the nation — offering a glimpse at life and death in some pockets of Chicago, where a reflex to grab a gun has become entrenched enough that even the victim understood the other teen might be armed.
"They are making her look like a monster when she was just a love-starved child who turned to the wrong person," said Jerry Thomas, 48, a neighbor of the accused girl and acquaintance of the uncle, 25-year-old Donnell Flora, who is charged with first-degree murder. "This thing took both children's lives."
The girl charged with first-degree murder, accused of shooting Martin in the back on April 28, appeared in juvenile court Friday for a brief hearing. She was flanked by her mother and grandmother off to one side, and the mother of the victim and other relatives standing a few feet away on the other side. The Associated Press is not releasing the girl's name because she is a minor.
Martin, who wanted to be a nurse like her mother, became the latest symbol of the violence that has put Chicago at the center of a national debate about gun crime. In 2012, the city recorded more than 500 homicides — nearly 100 more than New York. The numbers have since dropped, though Chicago still leads the nation.
Endia Martin's death highlights another part of the same Chicago story: Not of a gang dispute, but one of neighborhoods where police say firearms are so easy to find, so accepted, that a good student and respectful child allegedly contacted an uncle — himself, police say, a known gang member who has been in a wheelchair since he was shot in 2010 — and asked him to bring her a gun.
"How could he do that?' Kent Kennedy, Endia's stepfather, asked after the hearing. Kennedy, who called Endia and the suspect friends who'd graduated from eighth grade together, said he can't believe all the things that weren't done. "Just to get there on the bus, the uncle had to (travel) an hour, hour and a half on public transportation on, how could he not grab his niece and say, you should leave from this area?"
The minister who eulogized Endia at her funeral suggested that if the allegations about Flora are true, he was a man passing on a way of life he could no longer have himself. "If you're shot and paralyzed, what do you do?" asked Pastor Larry Martin, who is not related to Endia. "You can't be the villain in the neighborhood in a wheelchair, but you can help empower someone else."
Police Superintendent Garry McCarthy pointed to Flora's earlier refusal to cooperate with investigators after he was shot as a "'classic example of the cycle of violence ... that exemplifies what we are up against." McCarthy noted the prevalence of guns, and lenient sentences for gun crimes, as one of the main problems behind the city's violence.
The teen charged in the slaying was, according to Thomas, a nice girl who always had a book in her hand and said hello on her way to school. Both she and her uncle are represented by Cook County's public defender's office, which declined to comment.
Authorities also contended the suspect's aunt could have intervened. During a court hearing, a police officer testified that 32-year-old Vandetta Redwood encouraged the suspect and other teens to "kick their ass."
Footage from a cellphone camera appears to confirm Redwood was at the fight, said her attorney. But he argued there was no evidence she played a role in the shooting and a judge agreed, dismissing mob action and obstruction charges against her. Redwood declined comment.
At Endia's high school, there's talk among students of a different outcome had she listened to classmates who heard someone might bring a gun. "But she didn't expect anyone to actually use it," said one of the classmates who tried to talk Endia out of going to the scene of the fight. The classmate, who has known both girls since elementary school, spoke on condition of anonymity due to concern about retaliation. "Sometimes they bring guns to a fight — it happens."
Thanks to Don Babwin.
Friday, June 06, 2014
Craig Marshall, Former Trader for ConvergEx Global Markets, Charged with Conspiracy
A former trader for ConvergEx Global Markets Limited (CGM Limited) — a former securities broker-dealer registered in Bermuda — has been charged in the District of New Jersey with conspiracy to commit wire fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.
Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey. On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.
The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.
Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey. On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.
The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.
With Attorney Dead, Mob Boss Joey "The Clown" Lombardo Claims Bad Lawyering in Appeal
Chicago mob boss Joey "The Clown" Lombardo is in federal prison because people died. Now he is blaming his conviction on his trial lawyer, who is also dead.
Attorney Rick Halprin died by suicide a year ago, long after losing the Lombardo case which was part of Chicago's infamous "Family Secrets" murder trial. Lombardo now has a new attorney, who has filed a new motion to get the 85-year-old out of prison.
While a gag order seemed fitting in a case where the defendant was known as "The Clown," Lombardo was no easy client for his longtime attorney Rick Halprin.
During his notorious career as a top Chicago hoodlum, Lombardo was known to sport a newspaper mask at the courthouse, and in his heyday he liked to lead news hounds on hide and seek missions, once through a construction site. But in the "Family Secrets" murder case the stakes couldn't have been higher for Lombardo and other mob bosses. Joey "The Clown" was sentenced to life in prison, and has been in solitary confinement at the federal penitentiary in Butner, N.C.
Now Halprin is being vilified in a Lombardo appeal memo newly obtained by the I-Team. Lombardo says he wants and deserves freedom because Halprin was ineffective, incompetent, deficient and unprofessional.
His new attorney from Florida is claiming Halprin did little or no work investigating the evidence and witness claims used against Lombardo, and that Halprin "ensured his conviction" by calling Lombardo a liar in closing arguments.
Lombardo's current attorney didn't respond to I-Team questions. In legal papers he claims that Halprin received extra money from the court to investigate decades-old evidence, but didn't do so.
In the motion, Halprin's work is described as so inept that Lombardo's conviction should be thrown out or he should be let out on bond.
Bad lawyering claims are not unusual, but with Halprin dead they will go unchallenged. Prosecutors, however, intend to respond in court.
Thanks to I-Team.
Attorney Rick Halprin died by suicide a year ago, long after losing the Lombardo case which was part of Chicago's infamous "Family Secrets" murder trial. Lombardo now has a new attorney, who has filed a new motion to get the 85-year-old out of prison.
While a gag order seemed fitting in a case where the defendant was known as "The Clown," Lombardo was no easy client for his longtime attorney Rick Halprin.
During his notorious career as a top Chicago hoodlum, Lombardo was known to sport a newspaper mask at the courthouse, and in his heyday he liked to lead news hounds on hide and seek missions, once through a construction site. But in the "Family Secrets" murder case the stakes couldn't have been higher for Lombardo and other mob bosses. Joey "The Clown" was sentenced to life in prison, and has been in solitary confinement at the federal penitentiary in Butner, N.C.
Now Halprin is being vilified in a Lombardo appeal memo newly obtained by the I-Team. Lombardo says he wants and deserves freedom because Halprin was ineffective, incompetent, deficient and unprofessional.
His new attorney from Florida is claiming Halprin did little or no work investigating the evidence and witness claims used against Lombardo, and that Halprin "ensured his conviction" by calling Lombardo a liar in closing arguments.
Lombardo's current attorney didn't respond to I-Team questions. In legal papers he claims that Halprin received extra money from the court to investigate decades-old evidence, but didn't do so.
In the motion, Halprin's work is described as so inept that Lombardo's conviction should be thrown out or he should be let out on bond.
Bad lawyering claims are not unusual, but with Halprin dead they will go unchallenged. Prosecutors, however, intend to respond in court.
Thanks to I-Team.
Thursday, June 05, 2014
The Sopranos' for the first time on Blu-ray
Often cited as one of the best TV productions of all time, drama series "The Sopranos" has yet to be released in its entirety in HD. This omission will soon be corrected with the release of a Blu-ray box set with the complete series on the mob boss Tony Soprano.
According to the Hollywood Reporter, the six seasons of "The Sopranos" will be available in a single Blu-ray box set from November 4. Previously, only the first and sixth seasons had been released in HD.
The 86 episodes will come with over five hours of bonus content, all on 28 high-definition Blu-ray discs. Fans of the mafia drama can enjoy cut scenes, audio commentary tracks and roundtable discussions with the cast and crew.
The box set also includes "Defining a Television Landmark," a previously unreleased documentary with a run time of 45 minutes. Among those interviewed for the documentary are series creator David Chase, its star James Gandolfini, who died in June 2013, and Steve Buscemi, who contributed to the show's success on screen as well as from the director's chair. Steven Soderbergh and Jeff Daniels also contributed their commentary.
A touchstone of American TV culture, "The Sopranos" aired on HBO from 1999 to 2007. The series received around 60 awards in total, including 21 Emmy Awards and five Golden Globes, and is widely considered as one of if not the best series in the history of television.
Regardless of where they place "The Sopranos" in their ranking of the best shows of all time, critics agree that the show revolutionized the mafia drama genre with its portrayal of Tony Soprano, the New Jersey mob boss who is forced by his panic attacks to see a shrink on the sly. The character experiences a long and difficult battle to reconcile the interests of his family with those of his organized crime network.
According to the Hollywood Reporter, the six seasons of "The Sopranos" will be available in a single Blu-ray box set from November 4. Previously, only the first and sixth seasons had been released in HD.
The 86 episodes will come with over five hours of bonus content, all on 28 high-definition Blu-ray discs. Fans of the mafia drama can enjoy cut scenes, audio commentary tracks and roundtable discussions with the cast and crew.
The box set also includes "Defining a Television Landmark," a previously unreleased documentary with a run time of 45 minutes. Among those interviewed for the documentary are series creator David Chase, its star James Gandolfini, who died in June 2013, and Steve Buscemi, who contributed to the show's success on screen as well as from the director's chair. Steven Soderbergh and Jeff Daniels also contributed their commentary.
A touchstone of American TV culture, "The Sopranos" aired on HBO from 1999 to 2007. The series received around 60 awards in total, including 21 Emmy Awards and five Golden Globes, and is widely considered as one of if not the best series in the history of television.
Regardless of where they place "The Sopranos" in their ranking of the best shows of all time, critics agree that the show revolutionized the mafia drama genre with its portrayal of Tony Soprano, the New Jersey mob boss who is forced by his panic attacks to see a shrink on the sly. The character experiences a long and difficult battle to reconcile the interests of his family with those of his organized crime network.
Wednesday, June 04, 2014
Mayor Rahm Emanuel's Gun Store Ordinance Far Stricter Than What Public Wants
Mayor Rahm Emanuel’s proposal to keep gun stores out of most of Chicago is far more restrictive than what the public supports, a gun industry lobbyist said Monday.
Whitney O’Daniel of the National Shooting Sports Foundation pointed to an April survey — which the foundation commissioned — of registered Chicago voters that showed 69 percent supported regulating gun stores under the same zoning laws that cover other age-regulated businesses like liquor stores.
The McKeon & Associates
poll had an error margin of plus or minus 4 percentage points.
“Let the market decide how many gun stores people will support in the city,” said O’Daniel, who is also the executive director of the Illinois Association of Firearm Retailers.
Emanuel’s proposed ordinance would keep gun stores at least 500 feet away from parks and schools, barring them from 99.5 percent of the city, according to city officials.
In January, U.S. District Judge Edmond Chang overturned Chicago’s ban on gun stores in a lawsuit brought by the Illinois Association of Firearms Retailers and three Chicago gun owners. Chang gave the city until mid-July to impose regulations on gun stores.
Last week, the Emanuel administration proposed a far-reaching ordinance that would require gun stores to videotape purchases to deter customers from buying guns for crooks. Stores would have to maintain a log of gun sales in which a firearm was later recovered in a crime. That would help employees identify potential gun traffickers, according to city officials.
O’Daniel said the groups he represents aren’t opposed to stores introducing “best practices” like videotaping sales.
He said the National Shooting Sports Foundation spent $800,000 this year on Chicago billboards with the message, “Don’t Lie for the Other Guy,” referring to “straw purchasers” who legally buy guns they give to criminals. “We don’t want anyone to have illegal firearms or participate in the sale of illegal firearms,” O’Daniel said. But safeguards like videotaping gun sales should be voluntary, not mandatory, he said.
O’Daniel also said some parts of the proposed ordinance appear unworkable. For example, the government can’t provide stores with the names of people who buy guns later used in crimes, he said. “It’s a little premature to say we will go back and challenge this in court,” O’Daniel said of the proposed ordinance. “But we will certainly look at this closely. We are willing to work with the aldermen on this.”
South Side Ald. Howard Brookins (21st) has already warned that the ordinance invites another potentially costly court battle.
The other plaintiffs in the lawsuit against the city include gun owners Michael Hall, Kathryn Tyler and her husband Kenneth Pacholski. None has expressed an interest in selling guns, but they have said the Chicago ban on gun stores was unreasonable.
In 2010, Hall was a telecommunications consultant and part-time high school basketball referee who owned a shotgun, a rifle and a 9mm pistol he bought for protection after his Morgan Park home was burglarized, according to a deposition he gave to the city.
Pacholski owned 18 guns, including 13 rifles, three shotguns, a revolver and a semiautomatic pistol, according to his deposition. He said he carried a gun from his bedroom to his basement for protection in their West Rogers Park home.
Tyler, a veterinarian, owned a 9mm handgun, according to her deposition. A city attorney asked her whether the ban on gun stores prevented her from buying firearms, and she answered no. But “if guns are legal, then we should be able to buy guns wherever we want to buy guns and people should be able to sell them wherever they want to sell them,” Tyler said.
Emanuel administration officials say tough regulations are needed to help stores identify straw purchasers and prevent thieves from stealing guns from stores.
Chicago’s proposed ordinance would require the stores to submit a safety plan outlining exterior lighting, surveillance cameras and alarm systems, as well as storage of guns and ammunition. Employees would have to undergo fingerprinting, background checks and training on identifying potential gun traffickers.
Emanuel is also proposing that Chicago gun stores could sell only one handgun a month to a buyer. If the city revoked a store’s business license for violating the ordinance, it could not reopen at the same location for three years.
Thanks to Frank Main.
Whitney O’Daniel of the National Shooting Sports Foundation pointed to an April survey — which the foundation commissioned — of registered Chicago voters that showed 69 percent supported regulating gun stores under the same zoning laws that cover other age-regulated businesses like liquor stores.
The McKeon & Associates
poll had an error margin of plus or minus 4 percentage points.“Let the market decide how many gun stores people will support in the city,” said O’Daniel, who is also the executive director of the Illinois Association of Firearm Retailers.
Emanuel’s proposed ordinance would keep gun stores at least 500 feet away from parks and schools, barring them from 99.5 percent of the city, according to city officials.
In January, U.S. District Judge Edmond Chang overturned Chicago’s ban on gun stores in a lawsuit brought by the Illinois Association of Firearms Retailers and three Chicago gun owners. Chang gave the city until mid-July to impose regulations on gun stores.
Last week, the Emanuel administration proposed a far-reaching ordinance that would require gun stores to videotape purchases to deter customers from buying guns for crooks. Stores would have to maintain a log of gun sales in which a firearm was later recovered in a crime. That would help employees identify potential gun traffickers, according to city officials.
O’Daniel said the groups he represents aren’t opposed to stores introducing “best practices” like videotaping sales.
He said the National Shooting Sports Foundation spent $800,000 this year on Chicago billboards with the message, “Don’t Lie for the Other Guy,” referring to “straw purchasers” who legally buy guns they give to criminals. “We don’t want anyone to have illegal firearms or participate in the sale of illegal firearms,” O’Daniel said. But safeguards like videotaping gun sales should be voluntary, not mandatory, he said.
O’Daniel also said some parts of the proposed ordinance appear unworkable. For example, the government can’t provide stores with the names of people who buy guns later used in crimes, he said. “It’s a little premature to say we will go back and challenge this in court,” O’Daniel said of the proposed ordinance. “But we will certainly look at this closely. We are willing to work with the aldermen on this.”
South Side Ald. Howard Brookins (21st) has already warned that the ordinance invites another potentially costly court battle.
The other plaintiffs in the lawsuit against the city include gun owners Michael Hall, Kathryn Tyler and her husband Kenneth Pacholski. None has expressed an interest in selling guns, but they have said the Chicago ban on gun stores was unreasonable.
In 2010, Hall was a telecommunications consultant and part-time high school basketball referee who owned a shotgun, a rifle and a 9mm pistol he bought for protection after his Morgan Park home was burglarized, according to a deposition he gave to the city.
Pacholski owned 18 guns, including 13 rifles, three shotguns, a revolver and a semiautomatic pistol, according to his deposition. He said he carried a gun from his bedroom to his basement for protection in their West Rogers Park home.
Tyler, a veterinarian, owned a 9mm handgun, according to her deposition. A city attorney asked her whether the ban on gun stores prevented her from buying firearms, and she answered no. But “if guns are legal, then we should be able to buy guns wherever we want to buy guns and people should be able to sell them wherever they want to sell them,” Tyler said.
Emanuel administration officials say tough regulations are needed to help stores identify straw purchasers and prevent thieves from stealing guns from stores.
Chicago’s proposed ordinance would require the stores to submit a safety plan outlining exterior lighting, surveillance cameras and alarm systems, as well as storage of guns and ammunition. Employees would have to undergo fingerprinting, background checks and training on identifying potential gun traffickers.
Emanuel is also proposing that Chicago gun stores could sell only one handgun a month to a buyer. If the city revoked a store’s business license for violating the ordinance, it could not reopen at the same location for three years.
Thanks to Frank Main.
Tuesday, June 03, 2014
Khairullozhon Matanov Charged with Obstructing Marathon Bombing Investigation
A Quincy man has been charged with obstructing the investigation of the Boston Marathon bombings.
Khairullozhon Matanov, 23, of Quincy, is charged in an indictment that was unsealed with one count of destroying, altering, and falsifying records, documents, and tangible objects in a federal investigation, specifically, information on his computer; and three counts of making materially false, fictitious, and fraudulent statements in a federal terrorism investigation.
It is alleged that, after the release of the photos of the suspected bombers in the late afternoon of Thursday, April 18, 2013, and again early in the morning of Friday, April 19, 2013, Matanov realized that the FBI would likely want to talk with him because of his ties to the bombers, especially in the week following the bombings. Matanov allegedly then took a series of steps to impede the FBI’s investigation into the extent of his friendship, contact, and communication with the suspected bombers and the fact that he shared the suspected bombers’ philosophical justification for violence. In addition to deleting information from his computer, Matanov made a number of false statements to federal investigators. The indictment does not charge Matanov with participating in the Marathon bombings or knowing about them ahead of time.
The maximum sentence for the count of destruction of evidence is 20 years in prison and eight years for each false statement count. All four counts also carry a maximum of three years of supervised release and a fine of $250,000.
Khairullozhon Matanov, 23, of Quincy, is charged in an indictment that was unsealed with one count of destroying, altering, and falsifying records, documents, and tangible objects in a federal investigation, specifically, information on his computer; and three counts of making materially false, fictitious, and fraudulent statements in a federal terrorism investigation.
It is alleged that, after the release of the photos of the suspected bombers in the late afternoon of Thursday, April 18, 2013, and again early in the morning of Friday, April 19, 2013, Matanov realized that the FBI would likely want to talk with him because of his ties to the bombers, especially in the week following the bombings. Matanov allegedly then took a series of steps to impede the FBI’s investigation into the extent of his friendship, contact, and communication with the suspected bombers and the fact that he shared the suspected bombers’ philosophical justification for violence. In addition to deleting information from his computer, Matanov made a number of false statements to federal investigators. The indictment does not charge Matanov with participating in the Marathon bombings or knowing about them ahead of time.
The maximum sentence for the count of destruction of evidence is 20 years in prison and eight years for each false statement count. All four counts also carry a maximum of three years of supervised release and a fine of $250,000.
Freddie Howard Pleads Guilty in IRS Fraudulent Tax Refund Scam Involving $22 Million in Claims
Freddie Howard, 56, of Davie, pled guilty to his role in a large-dollar tax refund fraud scam. Sentencing for Howard is scheduled for August 29, 2014 at 10:15 a.m.
Howard pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. At sentencing, the defendant faces a maximum term of 22 years in prison.
According to the plea documents, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants, as well as, stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.
According to the plea documents, Freddie Howard submitted over $22 million in false and fraudulent large-dollar refund claims to the IRS that resulted in a payout of approximately $4.5 million on these large-dollar refund requests. As part of the scam, Howard caused a false and fraudulent tax return in the name of “J.E.” to be submitted to the IRS that resulted in a U.S. Treasury tax refund check sent to “J.E.” in Coral Springs for $398,502.52.
Howard pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. At sentencing, the defendant faces a maximum term of 22 years in prison.
According to the plea documents, Howard operated a tax preparation business called QTS1, Inc. (Quality Tax Service) in Broward County. Howard prepared false and fraudulent tax returns using the identity information of willing participants, as well as, stolen identity information. Howard used false and fictitious income and withholding tax information on the returns submitted to the IRS to justify fraudulent large-dollar refund requests. The requested refund amounts generally ranged from $60,000 to $1,400,000, and Howard typically requested payment of these refunds via U.S. Treasury tax refund check. To conceal his identity, Howard submitted the tax returns to the IRS by mail and did not include preparer information. Howard also blocked out the tax preparer software information, and used other people to contact the IRS to inquire about the status of the fraudulent returns.
According to the plea documents, Freddie Howard submitted over $22 million in false and fraudulent large-dollar refund claims to the IRS that resulted in a payout of approximately $4.5 million on these large-dollar refund requests. As part of the scam, Howard caused a false and fraudulent tax return in the name of “J.E.” to be submitted to the IRS that resulted in a U.S. Treasury tax refund check sent to “J.E.” in Coral Springs for $398,502.52.
Wesley Paul Coonce Jr. and Charles Michael Hall Sentenced to Death for Murder of Another Inmate
Two inmates of the U.S. Medical Center for Federal Prisoners in Springfield, Missouri, who were convicted by a federal jury for murdering another inmate at the facility were sentenced to death late yesterday.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Tammy Dickinson of the Western District of Missouri made the announcement.
“Two federal inmates senselessly killed another inmate, and today, they have been brought to justice,” said Assistant Attorney General Caldwell. “The Justice Department is committed to ensuring the safety and security of all Bureau of Prisons employees and inmates.”
“Achieving justice sometimes requires us to ask our citizens to make the most difficult sentencing decisions,” said U.S. Attorney Dickinson. “We appreciate their patience and commitment throughout trial. The defendants’ conduct strikes at the heart of our justice system, which depends upon the safety and security of our penal institutions. Mr. Castro was targeted for murder, in part, because he intervened to help a Bureau of Prisons employee as he was being attacked by another inmate.”
Wesley Paul Coonce Jr., 34, and Charles Michael Hall, 43, who are both inmates at the U.S. Medical Center for Federal Prisoners, were found guilty on May 7, 2014, of one count of murder in the first degree. Coonce was also found guilty of one count of murder by an inmate serving a life sentence. The trial began on April 28, 2014, before U.S. District Judge Gary A. Fenner of the Western District of Missouri.
The evidence presented at trial demonstrated that another inmate at the prison medical center, Victor Castro-Rodriguez, 51, was found dead on the floor of his cell on Jan. 26, 2010, and had been murdered by Coonce and Hall. At the time of the murder, Coonce was serving a life sentence for a kidnapping and carjacking that involved the brutal rape of a young woman, and Hall was serving a combined 194-month sentence from the District of Maine for making threatening communications against a federal judge and a federal prosecutor.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Tammy Dickinson of the Western District of Missouri made the announcement.
“Two federal inmates senselessly killed another inmate, and today, they have been brought to justice,” said Assistant Attorney General Caldwell. “The Justice Department is committed to ensuring the safety and security of all Bureau of Prisons employees and inmates.”
“Achieving justice sometimes requires us to ask our citizens to make the most difficult sentencing decisions,” said U.S. Attorney Dickinson. “We appreciate their patience and commitment throughout trial. The defendants’ conduct strikes at the heart of our justice system, which depends upon the safety and security of our penal institutions. Mr. Castro was targeted for murder, in part, because he intervened to help a Bureau of Prisons employee as he was being attacked by another inmate.”
Wesley Paul Coonce Jr., 34, and Charles Michael Hall, 43, who are both inmates at the U.S. Medical Center for Federal Prisoners, were found guilty on May 7, 2014, of one count of murder in the first degree. Coonce was also found guilty of one count of murder by an inmate serving a life sentence. The trial began on April 28, 2014, before U.S. District Judge Gary A. Fenner of the Western District of Missouri.
The evidence presented at trial demonstrated that another inmate at the prison medical center, Victor Castro-Rodriguez, 51, was found dead on the floor of his cell on Jan. 26, 2010, and had been murdered by Coonce and Hall. At the time of the murder, Coonce was serving a life sentence for a kidnapping and carjacking that involved the brutal rape of a young woman, and Hall was serving a combined 194-month sentence from the District of Maine for making threatening communications against a federal judge and a federal prosecutor.
Sunday, June 01, 2014
2 Corrections Officers, a Lawyer and 6 Others Walk into Federal Pretrial Detention Facility, Charged in Schemes to Smuggle Contraband
Two corrections officers, a lawyer, and six others were charged in three separate complaints with smuggling contraband, including cell phones and marijuana, into a federal pretrial detention facility at the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.
Corrections officer Stephon Solomon, 26, of Irvington, New Jersey; Darsell Davis, 28, Dwayne Harper, 30, and Deidra Harrison, 49, all of Newark; attorney Brian Kapalin, 66, of Maplewood, New Jersey; and Vladimir Sauzereseteo, 40, of East Orange, New Jersey, were arrested this morning by special agents of the FBI. Corrections officer Channel Lespinasse, 25, of Florham Park, New Jersey, was issued a summons. Quasim Nichols, 29, and Muhammad Subpunallah, 32, already are incarcerated on unrelated federal charges.
“According to the complaints, the defendants operated contraband marketplace within the walls of the Essex County Correctional Facility,” said U.S. Attorney Fishman. “Jails are no place for drugs and illicit phones, and it is disappointing that two corrections officers and an attorney allegedly used their authority and access to make them available.”
“The allegations in today’s complaints underscore the commitment of the FBI and the Department of Justice to continue to pursue those employed by the government who undermine the public’s trust and engage in unethical and corrupt practices,” said Special Agent in Charge Ford. “The FBI and our law enforcement partners are determined to address public corruption at all levels of government.”
Solomon, Davis, Harper, Harrison, Kapalin, Sauzereseteo, Nichols, and Subpunallah were scheduled to make their initial appearances before U.S. Magistrate Judge James B. Clark, III in Newark federal court. Lespinasse will appear for her initial appearance on June 2, 2014, before U.S. Magistrate Judge Michael A. Hammer in Newark.
According to the complaints unsealed:
The criminal complaints charge Solomon, Nichols, Davis, Harper, Lespinasse, and Harrison each with one count of conspiring to violate the Hobbs Act, punishable by a maximum potential penalty of 20 years in prison and a maximum fine of the greatest of $250,000 or twice the gain or loss from the offense. The criminal complaints charge all nine defendants with one count of conspiring to provide contraband to inmates at the jail, a count that carries a maximum potential penalty of five years in prison and a $250,000 fine for smuggling marijuana or one year in prison and $100,000 maximum fine for smuggling a cell phone.
Corrections officer Stephon Solomon, 26, of Irvington, New Jersey; Darsell Davis, 28, Dwayne Harper, 30, and Deidra Harrison, 49, all of Newark; attorney Brian Kapalin, 66, of Maplewood, New Jersey; and Vladimir Sauzereseteo, 40, of East Orange, New Jersey, were arrested this morning by special agents of the FBI. Corrections officer Channel Lespinasse, 25, of Florham Park, New Jersey, was issued a summons. Quasim Nichols, 29, and Muhammad Subpunallah, 32, already are incarcerated on unrelated federal charges.
“According to the complaints, the defendants operated contraband marketplace within the walls of the Essex County Correctional Facility,” said U.S. Attorney Fishman. “Jails are no place for drugs and illicit phones, and it is disappointing that two corrections officers and an attorney allegedly used their authority and access to make them available.”
“The allegations in today’s complaints underscore the commitment of the FBI and the Department of Justice to continue to pursue those employed by the government who undermine the public’s trust and engage in unethical and corrupt practices,” said Special Agent in Charge Ford. “The FBI and our law enforcement partners are determined to address public corruption at all levels of government.”
Solomon, Davis, Harper, Harrison, Kapalin, Sauzereseteo, Nichols, and Subpunallah were scheduled to make their initial appearances before U.S. Magistrate Judge James B. Clark, III in Newark federal court. Lespinasse will appear for her initial appearance on June 2, 2014, before U.S. Magistrate Judge Michael A. Hammer in Newark.
According to the complaints unsealed:
- On at least five occasions between October 2013 and April 2014, Solomon, a corrections officer at the Essex County Correctional Facility, smuggled contraband—including cell phones, tobacco, and marijuana—to Nichols, an inmate there, in exchange for cash bribes. Nichols’ friends, Davis and Harper, helped by collecting the items that were to be smuggled into the jail. Davis then handed off the contraband and cash payments to Solomon. Nichols ultimately sold some of the marijuana and cell phones he received from Solomon to other inmates. The inmates purchasing marijuana and cell phones from Nichols had their friends and family pay for the items by sending Western Union money transfers to Nichols, who then enlisted Davis and others to retrieve the payments. Nichols also used the cell phones he received through this smuggling scheme to communicate with his conspirators.
- Lespinasse, another corrections officer at the Essex County Correctional Facility, also smuggled in contraband in exchange for a cash bribe. In November 2013, Lespinasse and an associate, Harrison, agreed to smuggle a cell phone to an inmate in the jail in exchange for a cash bribe. On behalf of Lespinasse, Harrison accepted a $1,000 cash bribe and a cell phone from an undercover agent in the parking lot of a McDonald’s restaurant in Newark. Harrison promised the undercover federal agent that the cell phone would be delivered to its recipient—an inmate in the jail. Three days later, Lespinasse delivered the cell phone to the inmate.
- Kapalin, a lawyer who practiced in New Jersey, used his access to inmates at the Essex County Correctional Facility to smuggle in contraband—including marijuana and tobacco—to inmates, including Subpunallah, in exchange for cash payments. Sauzereseteo, an associate of Subpunallah, delivered the contraband and the cash payments to Kapalin, who then smuggled the contraband into the jail. In January 2014, Kapalin spoke with Subpunallah—at that point an inmate at the Hudson County Correctional Facility—over a recorded jail phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. Sauzereseteo was paid $1,650 via Western Union money transfers, which he used to purchase marijuana he delivered to Kapalin, along with a cash payment. A few days later, Kapalin met an inmate from the Essex County Correctional Facility in the attorney conference room at the jail, during which time he delivered the marijuana to the inmate.
- A search of the federal pods at the Essex County Correctional Facility on May 26, 2014, produced nine hidden cell phones, including one in the light fixture in the ceiling of Nichols’ cell.
The criminal complaints charge Solomon, Nichols, Davis, Harper, Lespinasse, and Harrison each with one count of conspiring to violate the Hobbs Act, punishable by a maximum potential penalty of 20 years in prison and a maximum fine of the greatest of $250,000 or twice the gain or loss from the offense. The criminal complaints charge all nine defendants with one count of conspiring to provide contraband to inmates at the jail, a count that carries a maximum potential penalty of five years in prison and a $250,000 fine for smuggling marijuana or one year in prison and $100,000 maximum fine for smuggling a cell phone.
International Scheme to Extort Americans by Impersonating DEA Special Agents Foiled
21 citizens of the Dominican Republic have been charged with conspiring to impersonate United States law enforcement officers, extortion, and wire fraud. Beginning two weeks ago, authorities in the Dominican Republic, acting on requests from the United States, located and arrested 17 of the defendants in the Dominican Republic, who are now awaiting extradition proceedings in that country. Four defendants remain at-large.
The defendants are alleged to have engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government. The defendants targeted individuals who they believed had illicitly purchased prescription pharmaceuticals through call centers located in the Dominican Republic. As part of the defendants’ scheme, a member of the conspiracy would call a victim located in the United States and identify himself or herself as a DEA agent or representative of another United States agency. The victim would then be told that he or she was under investigation for illegally purchasing prescription drugs, and that the only way to avoid arrest and jail would be to pay a “fine” or some other fee to the DEA. In total, the defendants and others who participated in this scheme and copy-cat schemes demanded at least $3.5 million, and received at least $880,000, in extortionate payments from victims in the United States.
“These alleged criminals not only bilked thousands of dollars from unsuspecting Americans but they also called into question the integrity and honor of the DEA and all law enforcement,” Administrator Leonhart said. The DEA, with the assistance of our Dominican Republic counterparts, have worked diligently to identify, target and, ultimately, dismantle this group of alleged scam artists. We urge anyone who receives a similar threatening phone call to hang up and contact local or federal law enforcement immediately.”
United States Attorney Bharara said: “These defendants generated untold millions of dollars in illicit profits by posing as DEA Agents or other U.S. law enforcement officers. They carried out the internet or telephone equivalent of displaying phony badges to rip off their victims. In the process, the defendants assaulted the good name of the DEA. We commend the DEA for putting a stop to this criminal charade.”
According to the Indictment, which was unsealed in Manhattan federal court:
From at least 2008, up to and including March 2013, JULIO SANTANA JOSEPH, FRANCISCO RUBIO MONTALVO, ANGEL PEREZ AVILES, a/k/a “Mike,” DEIVY BURGOS FELIX, CHENGY PADILLA GARO, GEURY GUZMAN ROSA, DANTE CAMINERO VASQUEZ, SAUL HERNANDEZ BATISTA, MOISES DE LA CRUZ DECENA, CELSO MIGUEL SARITA, EDWARD CUEVAS ESCANO, SANTIAGO GUZMAN GONZALEZ, JOSE ARISMENDY CUESTA ABREU, CARLOS PERDOMO ROSARIO, a/k/a “El Depo,” ELINSON REYES ALMONTE, YEURY AMARANTE ROSARIO, MARIO ANTONIO PLACIDO, YGNACIO ESTEVEZ MESSON, BORIS GIL GUERRERO, VICTOR VELASQUEZ ROCHTTIS, a/k/a “Vitico,” and RAFAELA MEDINA, a/k/a “Carolina,” the defendants, and others known and unknown, engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government (the “Impersonation and Extortion Scheme”). Each of the defendants made extortionate calls and/or received money from victims who had been extorted. The Impersonation and Extortion Scheme targeted individuals who the defendants believed had purchased prescription drugs unlawfully over the internet or through call centers. The illicit websites and call centers at issue sold pills to customers that would typically require a doctor’s prescription to purchase. The illicit websites and call centers did not require consumers to obtain the required prescriptions before purchase (hereinafter, the pills sold in this manner are referred to as the “Prescription Drugs”).
The DEA Impersonation and Extortion Scheme typically operated as follows: First, certain of the defendants and other individuals not named as defendants who engaged in the Impersonation and Extortion Scheme (the “Extorters”) purchased, or otherwise obtained, lists of individuals who the Extorters believed had previously purchased Prescription Drugs over the internet on illicit websites or through illicit call centers located in the Dominican Republic (“Customer Lists”). The Customer Lists generally contained the names, addresses, credit card numbers and other information for individuals located in the United States.
Second, an Extorter contacted a customer from the Customer Lists (the “victim”) and identified him- or herself as a DEA agent or representative of another United States agency. Often, the Extorter provided the name of an actual DEA supervisor from a DEA office located in the United States. The Extorters attempted to extort money from victims throughout the United States, including victims in Manhattan and the Bronx, New York.
During a call with a victim, an Extorter falsely informed the victim that authorities in the Dominican Republic or elsewhere were investigating or criminally charging the victim as a result of his or her illegal purchase of Prescription Drugs that were sent to the victim from the Dominican Republic. In a single call or series of calls and emails, the Extorter detailed the purported criminal charges and potential penalties facing the victim, including imprisonment, and the likelihood that the victim would be arrested and extradited to a foreign country for prosecution.
During a call with the victim, an Extorter also generally informed the victim that he or she could dispose of, or avoid, the criminal charges by making a cash payment. In order to do so, the Extorter had the victim transfer between several hundred and several thousand dollars either (i) through a money remitting service to a particular individual in the Dominican Republic, or (ii) via wire transfer to a particular bank account located in the Dominican Republic.
Following receipt of a payment from a victim, an Extorter typically contacted the victim again. During the follow-up conversations, the Extorter demanded additional payments and threatened to have criminal charges re-filed against the victim. If the victim refused to make, or to continue to make, extortion payments to the Extorter, the Extorter threatened the victim with his or her imminent arrest, with searches of the victim’s home in the United States by federal law enforcement officers, or with public disclosure of the victim’s prior purchases of Prescription Drugs.
The Extorters typically made extortion calls from illicit call centers located in the Dominican Republic (the “Call Centers”). In these Call Centers, the Extorters gathered together and used multiple computers equipped with Voice Over Internet Protocol (“VOIP”) technology to make extortion calls to victims listed on a Customer List. VOIP is a means of transmitting digital voice communications over the internet via a high-speed internet connection. The VOIP technology allowed the Extorters to contact their victims by using VOIP lines that made it appear as though the Extorters were calling from telephone numbers with area codes from within the United States. For example, the Extorters used VOIP lines that made it appear as though the Extorters were calling from, among other places, Washington, D.C., and New York, New York, when, in truth, the Extorters were located in the Dominican Republic. The Extorters often made hundreds of extortion calls a day from these Call Centers to victims in the United States.
Once a particular victim made an extortion payment to one of the Extorters, the Extorter who received that payment often shared that victim’s contact information with other Extorters, who then besieged the victim with additional, repeated extortion attempts via telephone. While using these lines to further the Impersonation and Extortion Scheme, the Extorters often traded tips with other Extorters in the same Call Center on the best techniques to use to extort victims.
Beginning in June 2010, the DEA established a telephone hotline (the “Hotline”), to allow victims to report extortion attempts and other contacts with the defendants and other individuals who engaged in the Impersonation and Extortion Scheme and who posed as DEA and other federal agents. Since the Hotline was established in June 2010, through January 2013, the DEA received approximately 6,500 reports from victims of extortion attempts, nearly all of which followed substantially the same pattern described above. In sum, through the Hotline, the DEA has learned of the Extorters’ efforts to obtain over $3.5 million in extortion payments from victims, and of actual extortion payments from victims to the Extorters of over $880,000. These attempted Extortions and actual extortion payment amounts reflect only what was reported to the DEA through the Hotline, and thus represent only a portion of the extortion payments that the Extorters have attempted to obtain, or actually obtained, from their victims.
Each of the defendants has been charged with one count of conspiracy to commit wire fraud, and one count of conspiracy to commit extortion, each of which carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Each of the defendants has also been charged with one count of conspiracy to impersonate a United States law enforcement officer, which carries a maximum potential penalty of 5 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
The defendants are alleged to have engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government. The defendants targeted individuals who they believed had illicitly purchased prescription pharmaceuticals through call centers located in the Dominican Republic. As part of the defendants’ scheme, a member of the conspiracy would call a victim located in the United States and identify himself or herself as a DEA agent or representative of another United States agency. The victim would then be told that he or she was under investigation for illegally purchasing prescription drugs, and that the only way to avoid arrest and jail would be to pay a “fine” or some other fee to the DEA. In total, the defendants and others who participated in this scheme and copy-cat schemes demanded at least $3.5 million, and received at least $880,000, in extortionate payments from victims in the United States.
“These alleged criminals not only bilked thousands of dollars from unsuspecting Americans but they also called into question the integrity and honor of the DEA and all law enforcement,” Administrator Leonhart said. The DEA, with the assistance of our Dominican Republic counterparts, have worked diligently to identify, target and, ultimately, dismantle this group of alleged scam artists. We urge anyone who receives a similar threatening phone call to hang up and contact local or federal law enforcement immediately.”
United States Attorney Bharara said: “These defendants generated untold millions of dollars in illicit profits by posing as DEA Agents or other U.S. law enforcement officers. They carried out the internet or telephone equivalent of displaying phony badges to rip off their victims. In the process, the defendants assaulted the good name of the DEA. We commend the DEA for putting a stop to this criminal charade.”
According to the Indictment, which was unsealed in Manhattan federal court:
From at least 2008, up to and including March 2013, JULIO SANTANA JOSEPH, FRANCISCO RUBIO MONTALVO, ANGEL PEREZ AVILES, a/k/a “Mike,” DEIVY BURGOS FELIX, CHENGY PADILLA GARO, GEURY GUZMAN ROSA, DANTE CAMINERO VASQUEZ, SAUL HERNANDEZ BATISTA, MOISES DE LA CRUZ DECENA, CELSO MIGUEL SARITA, EDWARD CUEVAS ESCANO, SANTIAGO GUZMAN GONZALEZ, JOSE ARISMENDY CUESTA ABREU, CARLOS PERDOMO ROSARIO, a/k/a “El Depo,” ELINSON REYES ALMONTE, YEURY AMARANTE ROSARIO, MARIO ANTONIO PLACIDO, YGNACIO ESTEVEZ MESSON, BORIS GIL GUERRERO, VICTOR VELASQUEZ ROCHTTIS, a/k/a “Vitico,” and RAFAELA MEDINA, a/k/a “Carolina,” the defendants, and others known and unknown, engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government (the “Impersonation and Extortion Scheme”). Each of the defendants made extortionate calls and/or received money from victims who had been extorted. The Impersonation and Extortion Scheme targeted individuals who the defendants believed had purchased prescription drugs unlawfully over the internet or through call centers. The illicit websites and call centers at issue sold pills to customers that would typically require a doctor’s prescription to purchase. The illicit websites and call centers did not require consumers to obtain the required prescriptions before purchase (hereinafter, the pills sold in this manner are referred to as the “Prescription Drugs”).
The DEA Impersonation and Extortion Scheme typically operated as follows: First, certain of the defendants and other individuals not named as defendants who engaged in the Impersonation and Extortion Scheme (the “Extorters”) purchased, or otherwise obtained, lists of individuals who the Extorters believed had previously purchased Prescription Drugs over the internet on illicit websites or through illicit call centers located in the Dominican Republic (“Customer Lists”). The Customer Lists generally contained the names, addresses, credit card numbers and other information for individuals located in the United States.
Second, an Extorter contacted a customer from the Customer Lists (the “victim”) and identified him- or herself as a DEA agent or representative of another United States agency. Often, the Extorter provided the name of an actual DEA supervisor from a DEA office located in the United States. The Extorters attempted to extort money from victims throughout the United States, including victims in Manhattan and the Bronx, New York.
During a call with a victim, an Extorter falsely informed the victim that authorities in the Dominican Republic or elsewhere were investigating or criminally charging the victim as a result of his or her illegal purchase of Prescription Drugs that were sent to the victim from the Dominican Republic. In a single call or series of calls and emails, the Extorter detailed the purported criminal charges and potential penalties facing the victim, including imprisonment, and the likelihood that the victim would be arrested and extradited to a foreign country for prosecution.
During a call with the victim, an Extorter also generally informed the victim that he or she could dispose of, or avoid, the criminal charges by making a cash payment. In order to do so, the Extorter had the victim transfer between several hundred and several thousand dollars either (i) through a money remitting service to a particular individual in the Dominican Republic, or (ii) via wire transfer to a particular bank account located in the Dominican Republic.
Following receipt of a payment from a victim, an Extorter typically contacted the victim again. During the follow-up conversations, the Extorter demanded additional payments and threatened to have criminal charges re-filed against the victim. If the victim refused to make, or to continue to make, extortion payments to the Extorter, the Extorter threatened the victim with his or her imminent arrest, with searches of the victim’s home in the United States by federal law enforcement officers, or with public disclosure of the victim’s prior purchases of Prescription Drugs.
The Extorters typically made extortion calls from illicit call centers located in the Dominican Republic (the “Call Centers”). In these Call Centers, the Extorters gathered together and used multiple computers equipped with Voice Over Internet Protocol (“VOIP”) technology to make extortion calls to victims listed on a Customer List. VOIP is a means of transmitting digital voice communications over the internet via a high-speed internet connection. The VOIP technology allowed the Extorters to contact their victims by using VOIP lines that made it appear as though the Extorters were calling from telephone numbers with area codes from within the United States. For example, the Extorters used VOIP lines that made it appear as though the Extorters were calling from, among other places, Washington, D.C., and New York, New York, when, in truth, the Extorters were located in the Dominican Republic. The Extorters often made hundreds of extortion calls a day from these Call Centers to victims in the United States.
Once a particular victim made an extortion payment to one of the Extorters, the Extorter who received that payment often shared that victim’s contact information with other Extorters, who then besieged the victim with additional, repeated extortion attempts via telephone. While using these lines to further the Impersonation and Extortion Scheme, the Extorters often traded tips with other Extorters in the same Call Center on the best techniques to use to extort victims.
Beginning in June 2010, the DEA established a telephone hotline (the “Hotline”), to allow victims to report extortion attempts and other contacts with the defendants and other individuals who engaged in the Impersonation and Extortion Scheme and who posed as DEA and other federal agents. Since the Hotline was established in June 2010, through January 2013, the DEA received approximately 6,500 reports from victims of extortion attempts, nearly all of which followed substantially the same pattern described above. In sum, through the Hotline, the DEA has learned of the Extorters’ efforts to obtain over $3.5 million in extortion payments from victims, and of actual extortion payments from victims to the Extorters of over $880,000. These attempted Extortions and actual extortion payment amounts reflect only what was reported to the DEA through the Hotline, and thus represent only a portion of the extortion payments that the Extorters have attempted to obtain, or actually obtained, from their victims.
Each of the defendants has been charged with one count of conspiracy to commit wire fraud, and one count of conspiracy to commit extortion, each of which carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Each of the defendants has also been charged with one count of conspiracy to impersonate a United States law enforcement officer, which carries a maximum potential penalty of 5 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
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