James Comey Nominated to Serve as Next FBI Director

President Barack Obama today nominated James B. Comey, Jr. to serve as the next Director of the FBI. Comey must be confirmed by the U.S. Senate before taking office.

“Jim is exceptionally qualified to handle the full range of challenges faced by today’s FBI,” the president said during a ceremony held at the White House. “I am confident that Jim will be a leader who understands how to keep America safe and to stay true to our founding ideals no matter what the future may bring.”

“I want to commend the president for the choice of Jim Comey as the next director of the FBI,” said current Director Robert S. Mueller. “I have had the opportunity to work with Jim for a number of years at the Department of Justice, and I have found him to be a man of honesty, dedication, and integrity. His experience, his judgment, and his strong sense of duty will benefit not only the Bureau, but the country as a whole.”

Comey served as deputy attorney general under the George W. Bush administration from December 2003 until August 2005, running the day-to-day operations of the Department of Justice. Prior to that, he was U.S. Attorney for the Southern District of New York, where he prosecuted a number of major terrorism and criminal cases. From 1996 to 2001, Comey worked in the U.S. Attorney’s Office for the Eastern District of Virginia. He has extensive industry experience as well, serving as general counsel and senior vice president for Lockheed Martin and general counsel for the investment firm Bridgewater Associates.

“Just as important as Jim’s extraordinary experience is his character,” President Obama said. “Jim understands that in times of crisis, we aren’t judged solely by how many plots we disrupt or how many criminals we bring to justice—we are also judged by our commitment to the Constitution that we’ve sworn to defend and to the values and civil liberties that we’ve pledged to protect.”

Mueller steps down September 4 after serving 12 years—his original 10-year term plus a two-year extension proposed by the White House and approved by Congress in 2011. “I want to take this opportunity to thank the men and women of the FBI,” Mueller said. “Through their hard work, their dedication, and their adaptability, the FBI is better able to predict and prevent terrorism and crime.”

If his nomination is confirmed, Comey will be the 11th Director in the FBI’s 105-year history—the 7th since the J. Edgar Hoover era. When it began in 1908, the Bureau’s leader was called “Chief.” Since 1919, the organization’s top administrator has been called “Director.” The Director has answered directly to the attorney general since the 1920s, and by law is appointed by the president and confirmed by the Senate. In 1976, in reaction to the extraordinary 48-year term of Hoover, Congress passed a law limiting the FBI Director to a single term of no longer than 10 years.

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Theodore Sweeten Pleads Guilty in $5 Million Fraud Scheme

Theodore Sweeten, the president of Symtech International Inc. (Symtech), pleaded guilty to a charge of wire fraud before United States District Judge Nicholas G. Garaufis at the federal courthouse in Brooklyn, New York. When sentenced, Sweeten faces a maximum sentence of 20 years’ imprisonment.

The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.

Sweeten, who claimed he developed and patented the “Clean Air Valve,” among other environmental products, admitted at his guilty plea that he defrauded an investor of $5 million by lying to him about his expertise in their joint venture agreement. The indictment charged Sweeten and two others with inducing the victim to make the investment in order to “lease” a credit line of $100 million, which in turn would enable him to generate millions of dollars in profit through special investment programs. In furtherance of that scheme, the indictment alleges that the defendants falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, they simply distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.

“Theodore Sweeten defrauded an investor of his hard-earned savings through fanciful tales about his investment and environmental expertise, but the only expertise Sweeten truly had was being a con man,” stated United States Attorney Lynch. “This office, together with our law enforcement colleagues, will vigorously pursue those who prey on unsuspecting investors.” Ms. Lynch expressed her appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.

The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes and Marcia M. Henry.

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Luis Adorno Sentenced to 18 Months’ Imprisonment for Accepting $100,000 Bribe

Luis Adorno, formerly the supervisory construction project manager of the Department of Architecture and Construction Engineering at the New York City Department of Housing Preservation and Development (HPD), was sentenced to a term of imprisonment of 18 months, followed by 300 hours of community service, for his corruption conviction for taking bribes. As part of his sentence, Adorno also was ordered to forfeit $100,000 in bribery money to the government, representing the proceeds of his crime, and fined $10,000. The sentence was imposed by United States District Judge Nina Gershon at the U.S. Courthouse in Brooklyn, New York.

The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Daniel R. Petrole, Deputy Inspector General, United States Department of Labor (DOL) Office of Inspector General; and Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI).

Until his arrest in June 2012, Adorno was employed by HPD, the largest municipal developer of affordable housing in the nation. Adorno was responsible for personally conducting inspections of HPD construction projects and also supervising other inspectors. During 2008 and 2009, a contractor who worked on several HPD construction projects paid Adorno what amounted to a $100,000 bribe for Adorno’s assistance in getting the contractor additional work with HPD. The bribe was structured in a sophisticated manner to ensure that actual cash did not pass through Adorno’s hands. Rather, the contractor paid $100,000 to a real estate developer who was developing several HPD projects, and in return for the $100,000, the real estate developer agreed to give Adorno a 30 percent equity stake in the developer’s company.

Today’s sentencing proceeding is the latest stemming from the government’s wide-ranging investigation into corruption involving the affordable housing industry in New York City. Four real estate developers and two other former HPD officials have pleaded guilty in this district to various charges, including racketeering conspiracy, fraud, and bribery, related to the development of affordable housing in the city. Three additional defendants await trial.

“Luis Adorno admitted that he agreed to put his finger on the scale in favor of a contractor who paid him $100,000 in bribes. By receiving payment in the form of an equity stake in a real estate development company, Adorno sought to create the bribe that would keep on giving. Today’s sentence sends a clear message that any public servant, whether an elected legislator or an appointed official, who betrays the public trust will be prosecuted to the fullest extent of the law,” stated United States Attorney Lynch. Ms. Lynch thanked the Internal Revenue Service, Criminal Investigation, New York; the United States Department of Housing and Urban Development, Office of Inspector General; and the New York City Police Department for their cooperation in this case.

DOI Commissioner Gill Hearn stated, “This ex-city employee lost his job and his bribe money and will soon take up residence in a prison cell. That was not the nest egg he bargained for when he sold his office for a hidden stake in a real estate deal. DOI thanks our federal partners for their shared determination to unearth the facts and demonstrate again that corruption is a losing strategy.”

The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Anthony M. Capozzolo, and Claire Kedeshian.

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