Six Indicted in International Investment Fraud Scheme

Six individuals have been indicted for their role in an investment scam perpetrated from the United States and Switzerland, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, and Special Agent in Charge Laura A. Bucheit of the FBI’s Las Vegas Field Office announced.

The U.S. District Court for the District of Nevada has unsealed indictments against Antony Brandel, 46, of Las Vegas; Joseph Micelli, 59, of Las Vegas; James Warras, 67, of Waterford, Wisconsin; Sean Finn, 44, of Whitefish, Montana; Martin Schlaepfer, 55, of Zurich, Switzerland; and Hans-Jurg Lips, 50, of Zurich, Switzerland. Brandel and Micelli were arrested on December 12, 2013, in Las Vegas, and Warras was arrested on December 13, 2013, in Wisconsin. Finn, Schalepfer and Lips remain at large.

According to court documents, from October 2009 through October 2013, the defendants used a Swiss corporation known as Malom Group AG to promote investments in European equities and debt offerings, which they said would yield high rates of return. The indictment alleges that the defendants created and provided to investors fake bank statements representing that Malom Group AG had large deposit balances at prominent European banks. The defendants collected payments of between $200,000 and $1.2 million per investor but did not put the funds toward the advertised investments. Instead, the defendants used the money for their own purposes. Court documents allege that Brandel, Micelli, Finn, and Warras attempted to conceal the proceeds of the conspiracy by not filing tax returns with the Internal Revenue Service (IRS).

According to allegations in the indictment, the investments that the defendants promoted did not yield any returns to their victims. When victims complained, the defendants told investors that the Malom Group AG would refund their money with the proceeds of pending transactions the defendants knew were fictitious and would not generate any proceeds. Despite the defendants’ promises of refunds, court documents allege that none of the investors identified in the indictment received a refund. The indictment alleges that Micelli, Warras, and Lips went so far as to submit to a U.S. Bankruptcy Court declarations they knew contained false statements about a transaction that the Malom Group AG had promoted to an investor who had an interest in a company that had filed for bankruptcy protection.

According to the indictment, Anthony Brandel acted as the director of MY Consultants Inc., a Nevada corporation that purported to review potential investments for the Malom Group AG. Micelli, a disbarred former attorney, identified himself to victims as Malom Group AG’s “compliance officer.” Warras served as Malom Group AG’s executive vice president for U.S. Operations and Finn acted as a broker who recruited victims and referred them to Malom Group AG. Schlaepfer was Malom Group AG’s chief executive officer, and Lips identified himself as the head of Malom Group AG’s Structured Finance Group. Schlaepfer and Lips presently reside in Switzerland.

The case was investigated by the Las Vegas Field Office of the FBI. The Enforcement Division of the U.S. Securities and Exchange Commission, which referred the matter to the Department of Justice, provided valuable assistance and is conducting a parallel civil enforcement investigation. The Public Prosecutor of the Canton of Zurich State Attorney’s Office assisted with the investigation.

This case is being prosecuted by Trial Attorneys Brian R. Young, Stephen J. Spiegelhalter, and Anna Kaminska of the Criminal Division’s Fraud Section, with assistance from the Criminal Division’s Office of International Affairs and the Office of the United States Attorney for the District of Nevada.

Today's guilty plea was a result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the Task Force, visit www.stopfraud.gov.

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Three reputed #Gangsters plead not guilty in fatal gang-related #mobaction

Three reputed gang members charged with the late November stabbing death of a Wheaton man pleaded innocent Monday to all charges against them, including first-degree murder.

Jonathan Jimenez, 19, of Aurora; Alejandro Martinez, 17, of West Chicago; and Anthony Rios, 18, of West Chicago, each face first-degree murder charges in the death of Thomas Tecuatl, who was found beaten and stabbed early Nov. 17 along Route 59 in West Chicago.

Jimenez, who is alleged to have stabbed Tecuatl, could face natural life in prison if convicted. Rios and Martinez each face 20 to 100 years in prison because prosecutors allege the murder happened during a gang-related mob action.

All three are expected back in court on Jan. 29.

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Holiday Crackdown on Drunk and Drugged Driving #DriveSoberorGetPulledOver

U.S. Transportation Secretary Anthony Foxx and National Highway Traffic Safety Administrator David Strickland today kicked off the annual “Drive Sober or Get Pulled Over” winter holiday crackdown on drunk and drugged driving, along with representatives from local law enforcement, Mothers Against Drunk Driving (MADD) and the Governors Highway Safety Association (GHSA). To further deter drunk driving, NHTSA today released a “Model Guideline for State Ignition Interlock Programs” that will help states develop and implement a breath alcohol ignition interlock program based on highly successful practices from the U.S. and around the world.

“With the help of our law enforcement partners, we’re sending a message across the country, today and throughout the holiday season – Drive Sober or Get Pulled Over,” said Secretary Foxx. “And this year, with the release of our model guidelines for ignition interlock programs, we’re helping states improve their efforts to enforce safe driving among convicted offenders, which is crucial to ending these unnecessary deaths.”

Last year, deaths in crashes involving drunk drivers increased 4.6 percent, taking 10,322 lives compared to 9,865 in 2011. The majority of those crashes involved drivers with a blood alcohol concentration (BAC) of .15 or higher – nearly double the legal limit. During last year’s holiday season alone, 830 lives were lost in drunk driving crashes.

Previous NHTSA research of convicted drunk drivers show that those with interlocks installed are 75 percent less likely to repeat the behavior compared to those who do not. The guideline emphasizes several key program features to maximize effectiveness – including legislation, education, program administration, and implementation.

“It is unacceptable and downright offensive that anyone would get behind the wheel drunk, let alone at twice the legal limit,” said NHTSA Administrator David Strickland. “I urge the states to adopt our new guidelines to protect sober motorists and ensure that individuals convicted of drunk driving learn from their mistakes.”

According to NHTSA’s latest issue of Safety 1n Num3ers, the holiday enforcement on drunk drivers comes at a time of year when crashes involving alcohol increase. Over the past decade, almost two of every five (41 percent) deaths that occur around the New Year’s holiday and the Christmas holiday (37 percent) were alcohol-impaired, compared to 31 percent nationally over the past ten years.

The crackdown runs from December 13 – January 1, 2014, and is supported by $7.5 million in national advertising in TV and radio advertising featuring NHTSA’s “Drive Sober or Get Pulled Over” campaign. The ads are designed to raise awareness and support law enforcement activities in every state in an effort to reduce drunk driving deaths. NHTSA's Drive Sober or Get Pulled Over message will also be featured in a new public service announcement featuring Metro-Goldwyn-Mayer Pictures/Columbia Pictures' RoboCop, in theaters February 12, 2014.

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Mexican, U.S. Women Leading Law Enforcement Efforts Against #FARC and #TransnationalCrime

DEA Administrator Michele M. Leonhart and Preet Bharara, the United States Attorney for the Southern District of New York, announced that IOANNIS VIGLAKIS, a/k/a “Pablo,” pled guilty yesterday in Manhattan federal court to attempting to provide material support to the Fuerzas Armadas Revolucionarias de Colombia (“FARC”), a Colombian terrorist organization. VIGLAKIS, a citizen of Greece, was arrested in Panama City, Panama, in coordination with Panamanian authorities during August 2012. He waived extradition and was subsequently turned over to the custody of the United States. VIGLAKIS pled guilty before U.S. District Judge Katherine B. Forrest.

“This investigation clearly demonstrates DEA’s unique ability to disrupt and dismantle the arms-trafficking networks that supply weapons to the most significant global narco-terror organizations," Leonhart said. "DEA will continue to aggressively pursue international arms dealers and narco-terrorists who are focused on harming our nation's security.”

Manhattan U.S. Attorney Preet Bharara said: “By providing functioning rocket-propelled grenade launchers and other military-grade weapons to an individual he believed to be a FARC associate, Ioannis Viglakis was attempting to arm a known terrorist organization that he understood would use those weapons against Americans and Colombians.”

According to the Indictment previously unsealed in this case:

Beginning in November 2011, VIGLAKIS had a series of meetings with a DEA confidential source (the “CS”) who represented himself to be an associate of the FARC. During those meetings, which took place in Europe and Central America, the CS informed VIGLAKIS that he was seeking weapons for use by the FARC to attack American forces in Colombia.

VIGLAKIS offered to provide the FARC with functional, bona fide, military-grade weapons – including assault rifles, rocket-propelled grenade (“RPG”) launchers and surface-to-air missiles – in exchange for cocaine and cash. During the meetings, VIGLAKIS and the CS also discussed the FARC’s use of these weapons to fight the Colombian and American governments, including by shooting down American aircraft in Colombia.

During the following months, VIGLAKIS indicated that he would provide the CS with several RPG launchers as a sample. On July 18, 2012, VIGLAKIS successfully arranged for the delivery in Europe of six live RPGs and three working RPG launchers, which were received by a DEA undercover agent.

* * *

VIGLAKIS, 53, pled guilty to one count of attempting to provide material support to the FARC. He faces a maximum sentence of 15 years in prison, and is scheduled to be sentenced by Judge Forrest on April 11, 2014, at 11:00 a.m.

Mr. Bharara praised the outstanding work of the Special Operations Division of the DEA, as well as the DEA Panama Country Office, the DEA Madrid Country Office, and the DEA Copenhagen Country Office. Mr. Bharara also thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the Government of the Republic of Panama.

This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell, Aimee Hector, and Michael Lockard are in charge of the prosecution.

“This investigation clearly demonstrates DEA’s unique ability to disrupt and dismantle the arms-trafficking networks that supply weapons to the most significant global narco-terror organizations," Leonhart said. "DEA will continue to aggressively pursue international arms dealers and narco-terrorists who are focused on harming our nation's security.”

Manhattan U.S. Attorney Preet Bharara said: “By providing functioning rocket-propelled grenade launchers and other military-grade weapons to an individual he believed to be a FARC associate, Ioannis Viglakis was attempting to arm a known terrorist organization that he understood would use those weapons against Americans and Colombians.”

According to the Indictment previously unsealed in this case:

Beginning in November 2011, VIGLAKIS had a series of meetings with a DEA confidential source (the “CS”) who represented himself to be an associate of the FARC. During those meetings, which took place in Europe and Central America, the CS informed VIGLAKIS that he was seeking weapons for use by the FARC to attack American forces in Colombia.

VIGLAKIS offered to provide the FARC with functional, bona fide, military-grade weapons – including assault rifles, rocket-propelled grenade (“RPG”) launchers and surface-to-air missiles – in exchange for cocaine and cash. During the meetings, VIGLAKIS and the CS also discussed the FARC’s use of these weapons to fight the Colombian and American governments, including by shooting down American aircraft in Colombia.

During the following months, VIGLAKIS indicated that he would provide the CS with several RPG launchers as a sample. On July 18, 2012, VIGLAKIS successfully arranged for the delivery in Europe of six live RPGs and three working RPG launchers, which were received by a DEA undercover agent.

* * *

VIGLAKIS, 53, pled guilty to one count of attempting to provide material support to the FARC. He faces a maximum sentence of 15 years in prison, and is scheduled to be sentenced by Judge Forrest on April 11, 2014, at 11:00 a.m.

Mr. Bharara praised the outstanding work of the Special Operations Division of the DEA, as well as the DEA Panama Country Office, the DEA Madrid Country Office, and the DEA Copenhagen Country Office. Mr. Bharara also thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the Government of the Republic of Panama.

This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell, Aimee Hector, and Michael Lockard are in charge of the prosecution.

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Green For All, University of Phoenix Hosted Chicago Green Business Academy to Support Area’s Green Businesses #GoGreen

University of Phoenix® and Green For All held a workshop centered on building Chicago’s emerging green entrepreneurs. During the event, small business owners and entrepreneurs learned valuable information on sustainable business resources, working with the government, financing options and The Affordable Care Act’s effect on green businesses. Participants also pitched their business ideas and received constructive feedback from established local professionals.

As the green economy continues to thrive, Chicago is becoming a leader in the field. It ranks third for green jobs among the nation's largest metro areas. According to a Brookings Institution report, the Chicago area enjoyed 79,388 clean economy jobs.

“Chicago is one of the greenest cities in the country,” said Green For All’s Program Manager for Business Engagement, Zakiya Harris. “This business academy supports the city’s green entrepreneurs and small business owners – particularly those coming from low-income areas and communities of color – and arms them with the resources to grow their businesses and a place to interact with local organizations and community stakeholders.”

The Chicago Green Business Academy was Green For All and University of Phoenix’s 14th business academy to support green entrepreneurs in growing their businesses, especially businesses located in underserved communities.

“University of Phoenix is dedicated to being a good corporate citizen by serving communities and individuals across the country in the areas of education, workforce readiness and sustainability,” said Pat Gottfried, vice president of Corporate Social Responsibility for Apollo Education Group, parent company of University of Phoenix. “We are proud to work with Green For All to bring this exciting event to Chicago and help pair Chicago’s green entrepreneurs with resources needed to grow within this industry.”

Chicago Green Business Academy panelists included: Elise Zelechowski, Founder & Executive Director, Rebuilding Exchange; Brenda Palms Barber, CEO, North Lawndale Employment Network and Sweet Beginnings, LLC; Melissa Antone, Director of Sustainability, Apollo Education Group, parent company of University of Phoenix; Zakiya Harris, Program Manager for Business Engagement, Green For All; Charles Sprague, Lead Faculty Area Chair, University of Phoenix Chicago Campus; Mark Ferguson, Public Information Officer, U.S. Small Business Administration; Jumaani Bates, Sustainability Consultant & Green For All Fellow; Walter Bush IV, Operations Manager & Founding Partner, Bronzeville Green Landscaping, LLC; Mary Timmel, Outreach Manager, Small Business Majority; Jon Levey, Executive Vice President & Chief Lending Officer, GreenChoice Bank; and Marc Lane, Founder, The Law Offices of Marc J. Lane.

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