Sterling Rivers, a/k/a “Little Real,” 26, of Lebanon, Tennessee, was sentenced in U.S. District Court to 28 years in prison for conspiring to distribute large quantities of crack cocaine and cocaine, as part of his involvement in a criminal street gang called the Unknown Vice Lords, announced David Rivera, U. S. Attorney for the Middle District of Tennessee.
Rivers was indicted with 16 other individuals in September 2011 following a nearly two-year investigation into a national street gang, the Vice Lords, operating in Wilson and Putnam County, Tennessee, and beyond.
Rivers fled following his indictment and was arrested in October 2011 as a fugitive in Texas. Rivers was convicted following a trial in September 2013 in which he represented himself.
“This sentence reaffirms that drug trafficking and organized crime will result in significant prison sentences,” said U.S. Attorney David Rivera. “This and other recent sentences of gang members should send a clear and convincing message that violent gang activity in this district will be vigorously pursued by the U.S. Attorney’s Office and our law enforcement partners.”
The convictions in this case followed a two-week trial, during which Rivers represented himself. Proof at trial established that Rivers was engaged in organizing the Vice Lords Gang throughout the state of Tennessee and had been involved in an array of violent crime, including the robbery of another drug dealer and the shooting of another individual.
Sixteen other defendants were also charged in connection with this investigation, and all have been convicted.
This investigation was conducted by the FBI; the Lebanon Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tennessee Bureau of Investigation; and the Tennessee Highway Patrol. This case was prosecuted by Assistant United States Attorneys Braden H. Boucek and Brent Hannafan.
Thursday, January 30, 2014
Wednesday, January 29, 2014
Steven M. Dombrowski, formerly with @Allscripts #Healthcare Solutions, Indicted on Securities Fraud Charges for Allegedly Profiting $286,000 from Insider Trading
A certified public accountant who was involved in the auditing process at a publicly traded company based in Chicago was indicted on federal fraud charges for allegedly engaging in insider trading of the company’s securities that made him an illegal profit of more than $286,000 in 2012. The defendant, Steven M. Dombrowski, who was the director of corporate audit for Allscripts Healthcare Solutions Inc., was charged with 16 counts of securities fraud in an indictment that was returned by a federal grand jury yesterday and announced today.
At the same time, the U.S. Securities and Exchange Commission announced that it filed a civil enforcement action involving the insider trading allegations against Dombrowski yesterday in U.S. District Court in Chicago. Dombrowski, 49, of Chicago, will be arraigned on the criminal charges on a date yet to be determined in Federal Court.
According to the indictment, Dombrowski misused material, non-public information he knew about Allscripts’ performance for the first quarter of 2012 and purchased put options and engaged in short sales of stock through a trading account in his wife’s maiden name that he controlled, which resulted in illegal profits of approximately $286,211. The indictment seeks forfeiture of that amount from Dombrowski.
Dombrowski and the employees he supervised were responsible for auditing and testing the processes and procedures Allscripts used to compute and report its financial performance. Allscripts provides information technology solutions to the health care industry, and its common stock is traded on the NASDAQ stock market under the symbol MDRX.
Between April 10 and April 28, 2012, a quarterly blackout period was in effect at Allscripts. The blackout prohibited certain employees, including Dombrowski, who were given written notice and who had access to material, non-public information, from engaging in insider trading 15 days before the end of a quarter and ending after the second full business day following the company’s quarterly earnings announcement.
Dombrowski allegedly learned in April 2012 through his employment that Allscripts’ first quarter financial results were going to be less favorable than market expectations when they were publicly announced on April 26, 2012. Throughout April, Dombrowski conducted securities transactions that he designed to be profitable if the price of Allscripts stock declined, including purchasing put options and short selling stock, which he knew was prohibited, the indictment alleges. Allscripts’ stock, in fact, declined when its 2012 first quarter announcement revealed lower sales, less revenue, and lower earnings per share than the first quarter of 2011.
After Allscripts stock declined on and after April 26, 2012, Dombrowski allegedly offset his Allscripts securities positions and profited approximately $286,211 from insider trading, the charges allege.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The SEC cooperated in the investigation.
The government is being represented by Assistant U.S. Attorneys Clifford C. Histed and Paul H. Tzur.
Each count of securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
At the same time, the U.S. Securities and Exchange Commission announced that it filed a civil enforcement action involving the insider trading allegations against Dombrowski yesterday in U.S. District Court in Chicago. Dombrowski, 49, of Chicago, will be arraigned on the criminal charges on a date yet to be determined in Federal Court.
According to the indictment, Dombrowski misused material, non-public information he knew about Allscripts’ performance for the first quarter of 2012 and purchased put options and engaged in short sales of stock through a trading account in his wife’s maiden name that he controlled, which resulted in illegal profits of approximately $286,211. The indictment seeks forfeiture of that amount from Dombrowski.
Dombrowski and the employees he supervised were responsible for auditing and testing the processes and procedures Allscripts used to compute and report its financial performance. Allscripts provides information technology solutions to the health care industry, and its common stock is traded on the NASDAQ stock market under the symbol MDRX.
Between April 10 and April 28, 2012, a quarterly blackout period was in effect at Allscripts. The blackout prohibited certain employees, including Dombrowski, who were given written notice and who had access to material, non-public information, from engaging in insider trading 15 days before the end of a quarter and ending after the second full business day following the company’s quarterly earnings announcement.
Dombrowski allegedly learned in April 2012 through his employment that Allscripts’ first quarter financial results were going to be less favorable than market expectations when they were publicly announced on April 26, 2012. Throughout April, Dombrowski conducted securities transactions that he designed to be profitable if the price of Allscripts stock declined, including purchasing put options and short selling stock, which he knew was prohibited, the indictment alleges. Allscripts’ stock, in fact, declined when its 2012 first quarter announcement revealed lower sales, less revenue, and lower earnings per share than the first quarter of 2011.
After Allscripts stock declined on and after April 26, 2012, Dombrowski allegedly offset his Allscripts securities positions and profited approximately $286,211 from insider trading, the charges allege.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The SEC cooperated in the investigation.
The government is being represented by Assistant U.S. Attorneys Clifford C. Histed and Paul H. Tzur.
Each count of securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
How to Protect Yourself from #IdentityTheft
Tobechi Onwuhara led a multi-million-dollar home equity line of credit fraud scheme that involved hundreds of victims in the U.S. Often times, people didn’t even realize they had been victimized until they got calls from their financial institutions about a late payment on a home equity line of credit loan, until they applied for another kind of loan and were turned down, or until they checked their credit report.
Fortunately,
these victims—because their financial institutions were insured—were reimbursed for their financial losses. But for all victims of identity theft, there are long-term challenges to face, including credit rating damage, the time and effort to repair damaged credit, and financial hardship. Here are a few tips to help you protect yourself and your loved ones from identity thieves:
Fortunately,
these victims—because their financial institutions were insured—were reimbursed for their financial losses. But for all victims of identity theft, there are long-term challenges to face, including credit rating damage, the time and effort to repair damaged credit, and financial hardship. Here are a few tips to help you protect yourself and your loved ones from identity thieves:- Review your credit report at least once a year.
- Monitor your bank accounts and credit card accounts routinely and report any unauthorized or suspicious activity to your financial institution immediately.
- Use strong passwords for your online financial accounts.
- Make sure you have up-to-date security software on your computer and other devices.
- Limit sharing of personal information on social networking sites.
Tuesday, January 28, 2014
Fugitive Identity Thief Tobechi Onwuhara Led Global Criminal Enterprise #ScamOnTheRun
He made a living stealing other people’s identities…and then their money. And what a living it was—more than enough to bankroll luxury homes, fancy cars, expensive clothes and jewelry, and nights spent in clubs and casinos. When law enforcement was about to swoop in and arrest the thief, he managed to flee the country and continue his extravagant lifestyle abroad for about four years.
Eventually, thanks to investigators who wouldn’t give up and international partners who provided vital support, this man was found and returned to the U.S. to face justice.
Last month, Tobechi Onwuhara, of Dallas, Texas—the ringleader of a multi-million-dollar fraud scheme and a former FBI wanted cyber fugitive—was sentenced to federal prison. Seven additional co-conspirators have either pled guilty or been convicted.
There’s no shortage of schemes that identity thieves perpetrate to line their own pockets—from stealing credit card numbers and fraudulently applying for loans and refunds to breaking into online bank accounts. Onwuhara’s specialty? He targeted home equity line of credit accounts, a form of revolving credit in which your home serves as collateral.
How the scheme worked: Onwuhara and his co-conspirators identified potential victims—people who had home equity line of credit accounts with large balances—by accessing certain fee-based websites often used in the real estate for customer leads (one of Onwuhara’s associates was a real estate agent). After collecting bits of personally identifiable information from those websites—like names, addresses, dates of birth, and Social Security numbers—and then using other online sites to obtain personal information to help with passwords and security questions, they were able to access victims’ credit reports online, which contained loan balances and other financial and personal information.
Armed with this information, Onwuhara would either call a customer service representative at a victim’s financial institution while impersonating the victim—or gain access to the victim’s online account—and request a transfer of funds from the home equity line of credit account into the victim’s checking or savings account. From those accounts, he’d request that the money be wired to another bank account—usually overseas and always one that he controlled.
To help with the impersonation, Onwuhara would use caller ID spoofing services to display the customer’s legitimate phone number. And in case the financial institution needed to call the customer back for some reason before the money was wired, Onwuhara—again impersonating the victim—would call the victim’s telephone company and request call forwarding to another phone (which of course belonged to a member of his criminal group).
Once the money was transferred, Onwuhara paid money mules in several different countries to withdraw the money and get it back to Onwuhara’s criminal enterprise.
The FBI's investigation of Onwuhara’s scheme—which involved hundreds of victims nationwide, attempts to steal more than $38 million, and losses of $13 million—began in late 2007 after they received a complaint from a victim in the Washington, D.C. area. They were ultimately able to identify and gather evidence against Onwuhara and his crew, and federal charges were handed down in August 2008. After he fled the U.S., ongoing international law enforcement efforts continued until December 2012, when he was located in Sydney, arrested by the Australian National Police, and returned to this country.
Eventually, thanks to investigators who wouldn’t give up and international partners who provided vital support, this man was found and returned to the U.S. to face justice.
Last month, Tobechi Onwuhara, of Dallas, Texas—the ringleader of a multi-million-dollar fraud scheme and a former FBI wanted cyber fugitive—was sentenced to federal prison. Seven additional co-conspirators have either pled guilty or been convicted.There’s no shortage of schemes that identity thieves perpetrate to line their own pockets—from stealing credit card numbers and fraudulently applying for loans and refunds to breaking into online bank accounts. Onwuhara’s specialty? He targeted home equity line of credit accounts, a form of revolving credit in which your home serves as collateral.
How the scheme worked: Onwuhara and his co-conspirators identified potential victims—people who had home equity line of credit accounts with large balances—by accessing certain fee-based websites often used in the real estate for customer leads (one of Onwuhara’s associates was a real estate agent). After collecting bits of personally identifiable information from those websites—like names, addresses, dates of birth, and Social Security numbers—and then using other online sites to obtain personal information to help with passwords and security questions, they were able to access victims’ credit reports online, which contained loan balances and other financial and personal information.
Armed with this information, Onwuhara would either call a customer service representative at a victim’s financial institution while impersonating the victim—or gain access to the victim’s online account—and request a transfer of funds from the home equity line of credit account into the victim’s checking or savings account. From those accounts, he’d request that the money be wired to another bank account—usually overseas and always one that he controlled.
To help with the impersonation, Onwuhara would use caller ID spoofing services to display the customer’s legitimate phone number. And in case the financial institution needed to call the customer back for some reason before the money was wired, Onwuhara—again impersonating the victim—would call the victim’s telephone company and request call forwarding to another phone (which of course belonged to a member of his criminal group).
Once the money was transferred, Onwuhara paid money mules in several different countries to withdraw the money and get it back to Onwuhara’s criminal enterprise.
The FBI's investigation of Onwuhara’s scheme—which involved hundreds of victims nationwide, attempts to steal more than $38 million, and losses of $13 million—began in late 2007 after they received a complaint from a victim in the Washington, D.C. area. They were ultimately able to identify and gather evidence against Onwuhara and his crew, and federal charges were handed down in August 2008. After he fled the U.S., ongoing international law enforcement efforts continued until December 2012, when he was located in Sydney, arrested by the Australian National Police, and returned to this country.
Joseph "Uncle Joe" Ligambi Has Feds Dismiss Case After He Beats Gambling and Racketeering Charges Twice
Federal prosecutors abandoned their pursuit of a reputed Philadelphia mob boss on Monday after he twice beat charges in a gambling and racketeering case.
Joseph "Uncle Joe" Ligambi could have faced a third trial after jurors acquitted him last week of witness tampering while deadlocking on three other charges. But prosecutors filed a motion seeking to dismiss the remaining counts — a rare setback in their decades-long campaign against the Philadelphia mob.
Ligambi's attorney, Ed Jacobs, praised the decision and said he expects his client to be released from a federal detention center Tuesday. A judge still has to sign off. "They have properly exercised their discretion," Jacobs said. "They have failed twice in their efforts to convict Joe, and I don't think they think the third time's the charm."
A spokeswoman for U.S. Attorney Zane Memeger declined comment.
The Ligambi case largely involved the collection of small gambling debts and loans, and the operation of video poker machines at neighborhood bars.
Prosecutors won convictions against Ligambi's reputed underboss and enforcer — who were sentenced to 15 years and 11 years in prison respectively — and several associates. But two juries deadlocked on the main racketeering charge against Ligambi, 74, and he was acquitted of six of nine counts overall.
Authorities say Ligambi took over a weakened La Cosa Nostra after his predecessor, Joseph "Skinny Joey" Merlino, was convicted and sent to prison in 2001.
An indictment unsealed in 2011 said Ligambi and other reputed mobsters remained dangerous, using threats to kill or harm people who hadn't paid their debts to the Mafia.
Ligambi has spent nearly three years in prison following his arrest.
Jacobs, who has called the case a witch hunt, said Monday the government should "put all this time and effort and money to better use chasing somebody else."
Joseph "Uncle Joe" Ligambi could have faced a third trial after jurors acquitted him last week of witness tampering while deadlocking on three other charges. But prosecutors filed a motion seeking to dismiss the remaining counts — a rare setback in their decades-long campaign against the Philadelphia mob.
Ligambi's attorney, Ed Jacobs, praised the decision and said he expects his client to be released from a federal detention center Tuesday. A judge still has to sign off. "They have properly exercised their discretion," Jacobs said. "They have failed twice in their efforts to convict Joe, and I don't think they think the third time's the charm."
A spokeswoman for U.S. Attorney Zane Memeger declined comment.
The Ligambi case largely involved the collection of small gambling debts and loans, and the operation of video poker machines at neighborhood bars.
Prosecutors won convictions against Ligambi's reputed underboss and enforcer — who were sentenced to 15 years and 11 years in prison respectively — and several associates. But two juries deadlocked on the main racketeering charge against Ligambi, 74, and he was acquitted of six of nine counts overall.
Authorities say Ligambi took over a weakened La Cosa Nostra after his predecessor, Joseph "Skinny Joey" Merlino, was convicted and sent to prison in 2001.
An indictment unsealed in 2011 said Ligambi and other reputed mobsters remained dangerous, using threats to kill or harm people who hadn't paid their debts to the Mafia.
Ligambi has spent nearly three years in prison following his arrest.
Jacobs, who has called the case a witch hunt, said Monday the government should "put all this time and effort and money to better use chasing somebody else."
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