On Friday, United States District Judge Joseph F. Bianco sentenced Jose Gustavo Orellana-Torres, also known as “Diablito,” the former leader of the Coronados clique of La Mara Salvatrucha, also known as the MS-13 street gang, to 365 months’ imprisonment following his September 25, 2012 guilty plea to racketeering, including predicate acts relating to the May 26, 2009 murder of Dexter Acheampong in Central Islip, New York, and the July 5, 2009 attempted murder of a suspected rival gang member in Roosevelt, 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; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
According to his plea allocution and documents previously filed in the case, on May 26, 2009, Orellana-Torres attended a Coronados clique meeting in Brentwood, New York, and the MS-13 members agreed to “put in work” for the gang by killing rival gang members. Orellana-Torres and several other MS-13 members drove around Brentwood and Central Islip looking for rival gang members, and Orellana-Torres was armed with a .38 caliber revolver. While in the vicinity of East Maple Street in Central Islip, the MS-13 members observed Dexter Acheampong, whom they did not know but believed, based on the color of his skin and the neighborhood he was walking in, to be a member of the Bloods street gang. In fact, Mr. Acheampong did not belong to any street gang. Orellana-Torres stepped out of the car and fired four shots at Mr. Acheampong with the .38 caliber revolver, striking the victim twice in the back as he tried to escape. Mr. Acheampong was found dead in the driveway of a home on East Maple Street the next morning.
Just over a month later, on July 4-5, 2009, Orellana-Torres attended another MS-13 meeting, this time in Roosevelt, New York. The MS-13 members again discussed killing rival gang members. Orellana-Torres, who possessed the same .38 caliber revolver that night, and other MS-13 members drove around Roosevelt, New York, looking for rival gang members. The MS-13 members observed a man, whose identity is known to the government but is not being disclosed in order to protect his safety, whom they believed to be a rival gang member. One of the other MS-13 members fired several shots at the man, striking him once in the hand.
“The MS-13 street gang has become infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional depravity. Orellana-Torres and his co-conspirators targeted Dexter Acheampong and another young man, whom they did not even know, because they believed them to be rival gang members,” stated United States Attorney Lynch. “This sentence should make clear that gang members will pay a heavy price for such cold, calculated acts of violence.”
FBI Assistant Director in Charge Venizelos stated, “We cannot overstate our commitment to investigating MS-13 and other gangs on Long Island. As the case of Orellana-Torres shows, MS-13 is not about ethnic pride, it is a violent, murderous horde. It is hard to imagine a more wanton disregard for human life than shooting a person in the back because the color of his skin makes you think he may be a rival gang member.”
Orellana-Torres’s conviction is the latest in a series of federal prosecutions by this office targeting New York members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and the Rockville Centre Police Department.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
Defendant:
Jose Gustavo Orellana-Torres, aka Diablito
Age: 28
Monday, July 01, 2013
Sunday, June 30, 2013
History's First African American Drug Kingpin, Frank Matthews, is Uncovered in "Black Caesar: The Rise and Disappearance of Frank Matthews" by Crime Expert and Author Ron Chepesiuk
On July 2, 1973, Frank Matthews, history's first African American drug kingpin, jumped bail in New York City with $15 to $20 million - the equivalent of $80 million to $90 million in today's money. It is believed he took his beautiful mistress, Cheryl Brown with him. Though Matthews is undisputedly the longest missing fugitive in DEA history, another figure from the '70's, Assata Shakur, was just recently placed on the FBI's Most Wanted Terrorists list. A 66-year old Black woman, Shakur's reward is set for two million dollars. The reward for 69-year old Frank Matthews, the target of one of the largest manhunts in U.S. law enforcement history, is a mere $20,000. He remains at large and his disappearance is a complete mystery. He has never made any "Most Wanted" list.
Many believe Shakur was erroneously convicted for the murder of a state trooper. But there is no mistaking the fact that the narcotics Matthews helped funnel into Black communities across America continues to leave a trail of devastation, betrayal, death and despair. In each case it has been forty years. And so goes the continued urban legend of Frank Matthews, perhaps the most authentic American Gangster of them all.
Award-winning crime author Ron Chepesiuk goes into depth to investigate the unsolved disappearance of Matthews with his new book, "Black Caesar: The Rise and Disappearance of Frank Matthews, Kingpin" from Strategic Media Books. With an undercover reporting style that leaves no stone unturned, Chepesiuk's determined crack at unraveling one of the crime world's biggest unsolved mysteries makes for a fascinating and intriguing read.
Matthews' literally dominated the heroin market in the '70's. A country boy from North Carolina, Matthew operated out of New York with a drug empire that spanned 21 states with overseas contacts for heroin and cocaine. A boss of bosses, the DEA ranks him as one of the Top Ten drug traffickers in United States history. A young man in his twenties at the time, Matthews was one of the first major independents who challenged the La Cosa Nostra for supremacy in the criminal underworld. The streets deemed him, "Black Caesar" as he was the first black man bold, astute and confident enough to control an interstate organization of its size, independent of the Mob that ruled all.
Chepesiuk follows the trail left cold, retracing Matthew's criminal path with the nose of a bloodhound. His interviews with DEA agents, Federal Marshals, aging ex-drug kingpins, friends, families and associates are perhaps the most in-depth gathering of details about this nefariously historic figure ever compiled. The book explores a host of nagging questions. How was Matthews able to operate for several years without being detected? What was his relationship with La Cosa Nostra? Why did the CIA get involved in the Matthews investigation? What happened to Cheryl Brown? Why has the mystery of his disappearance been so difficult to solve? And while the questions are explored and answered, "Black Caesar: The Rise and Disappearance of Frank Matthews, Kingpin" colorfully captures the vivid imagery, drama and intrigue of the era, entangling the reader in a real life thriller.
"Ron Chepesiuk is to true crime books what Nas is to the hip-hop world," offers Seth Ferranti author of "Gorilla Convict: The Prison Writings of Seth Ferranti," who provides the gripping foreword for the book. "He writes like a lyrical poet examining issues in popular culture in both a historical and scholastic context."
A two-time Fulbright Scholar, film producer and author of several true crime books, including "Drug Lords," "Sergeant Smack" and "Queenpins," Ron Chepesiuk is also a consultant to the History Channel's "Gangland" documentary series and the executive producer and co-host of popular radio show "Crime Beat". An authoritative crime historian, Chepesiuk is a native of Thunder Bay, Canada currently based in South Carolina. He brings a wealth of insight and observation to the account of the missing Frank Matthews. He has also written a screenplay based on the Frank Matthews story.
Dead or alive, we may never know the ultimate truth about Matthews, but thanks to Chepesiuk, every speculation in between is resolved in "Black Caesar: The Rise and Disappearance of Frank Matthews, Kingpin." The FBI may be targeting Assata Shakur, but Frank Matthews is the true gangster Most Wanted!
Many believe Shakur was erroneously convicted for the murder of a state trooper. But there is no mistaking the fact that the narcotics Matthews helped funnel into Black communities across America continues to leave a trail of devastation, betrayal, death and despair. In each case it has been forty years. And so goes the continued urban legend of Frank Matthews, perhaps the most authentic American Gangster of them all.
Award-winning crime author Ron Chepesiuk goes into depth to investigate the unsolved disappearance of Matthews with his new book, "Black Caesar: The Rise and Disappearance of Frank Matthews, Kingpin" from Strategic Media Books. With an undercover reporting style that leaves no stone unturned, Chepesiuk's determined crack at unraveling one of the crime world's biggest unsolved mysteries makes for a fascinating and intriguing read.
Matthews' literally dominated the heroin market in the '70's. A country boy from North Carolina, Matthew operated out of New York with a drug empire that spanned 21 states with overseas contacts for heroin and cocaine. A boss of bosses, the DEA ranks him as one of the Top Ten drug traffickers in United States history. A young man in his twenties at the time, Matthews was one of the first major independents who challenged the La Cosa Nostra for supremacy in the criminal underworld. The streets deemed him, "Black Caesar" as he was the first black man bold, astute and confident enough to control an interstate organization of its size, independent of the Mob that ruled all.
Chepesiuk follows the trail left cold, retracing Matthew's criminal path with the nose of a bloodhound. His interviews with DEA agents, Federal Marshals, aging ex-drug kingpins, friends, families and associates are perhaps the most in-depth gathering of details about this nefariously historic figure ever compiled. The book explores a host of nagging questions. How was Matthews able to operate for several years without being detected? What was his relationship with La Cosa Nostra? Why did the CIA get involved in the Matthews investigation? What happened to Cheryl Brown? Why has the mystery of his disappearance been so difficult to solve? And while the questions are explored and answered, "Black Caesar: The Rise and Disappearance of Frank Matthews, Kingpin" colorfully captures the vivid imagery, drama and intrigue of the era, entangling the reader in a real life thriller.
"Ron Chepesiuk is to true crime books what Nas is to the hip-hop world," offers Seth Ferranti author of "Gorilla Convict: The Prison Writings of Seth Ferranti," who provides the gripping foreword for the book. "He writes like a lyrical poet examining issues in popular culture in both a historical and scholastic context."
A two-time Fulbright Scholar, film producer and author of several true crime books, including "Drug Lords," "Sergeant Smack" and "Queenpins," Ron Chepesiuk is also a consultant to the History Channel's "Gangland" documentary series and the executive producer and co-host of popular radio show "Crime Beat". An authoritative crime historian, Chepesiuk is a native of Thunder Bay, Canada currently based in South Carolina. He brings a wealth of insight and observation to the account of the missing Frank Matthews. He has also written a screenplay based on the Frank Matthews story.
Dead or alive, we may never know the ultimate truth about Matthews, but thanks to Chepesiuk, every speculation in between is resolved in "Black Caesar: The Rise and Disappearance of Frank Matthews, Kingpin." The FBI may be targeting Assata Shakur, but Frank Matthews is the true gangster Most Wanted!
Friday, June 28, 2013
Billy Panzera and Bobby Fiorello Enter Not Guilty Pleas to Federal Loan-Sharking Charges
A Passaic County man, reputed to be an associate of the Genovese organized crime family, entered a not guilty plea Thursday at his arraignment on federal loan-sharking charges.
Lawyers for William “Billy” Panzera, 40, of North Haledon, and a co-defendant, Robert “Bobby” Fiorello, 63, of Jackson, formally denied the charges during a hearing before U.S. District Judge Jose L. Linares in Newark.
Panzera and Fiorello were among 11 defendants, including a reputed captain, two alleged soldiers and several alleged associates of the Genovese family, who were indicted in Brooklyn in April 2012 on 18 counts ranging from racketeering conspiracy to extortion, illegal gambling, union embezzlement and obstruction of justice.
Because the crimes that Panzera and Fiorello are alleged to have committed occurred in New Jersey and they declined to waive their right to be tried here, prosecutors from the Eastern District of New York re-indicted them in Newark last week on the same charges, setting the stage for a trial that Linares scheduled for Aug. 28.
The three-count indictment identifies Panzera as a Genovese crime family associate and alleges that from February to May of 2008 he, Fiorello and others conspired “to participate in the use of extortionate means” to collect one or more loans from an unnamed victim.
Panzera was also charged with conspiring to collect an unlawful debt under New Jersey law, defined as a loan given at a usurious interest rate of greater than 50 percent per year.
During the hearing, Linares set bail for Panzera, who was dressed in a dark suit, at $500,000, secured by property. Bail of $700,000 was set for Fiorello, who wore a black short-sleeve shirt and slacks.
As a condition of bail, both men were directed not to have any contact with witnesses or members and associates of organized crime.
After the hearing, veteran Hackensack attorney Frank P. Luciana, who is representing Panzera, declined to discuss the case, other than to say, “I’m very, very convinced that in this case justice is going to prevail.”
Thanks to Peter J. Sampson.
Lawyers for William “Billy” Panzera, 40, of North Haledon, and a co-defendant, Robert “Bobby” Fiorello, 63, of Jackson, formally denied the charges during a hearing before U.S. District Judge Jose L. Linares in Newark.
Panzera and Fiorello were among 11 defendants, including a reputed captain, two alleged soldiers and several alleged associates of the Genovese family, who were indicted in Brooklyn in April 2012 on 18 counts ranging from racketeering conspiracy to extortion, illegal gambling, union embezzlement and obstruction of justice.
Because the crimes that Panzera and Fiorello are alleged to have committed occurred in New Jersey and they declined to waive their right to be tried here, prosecutors from the Eastern District of New York re-indicted them in Newark last week on the same charges, setting the stage for a trial that Linares scheduled for Aug. 28.
The three-count indictment identifies Panzera as a Genovese crime family associate and alleges that from February to May of 2008 he, Fiorello and others conspired “to participate in the use of extortionate means” to collect one or more loans from an unnamed victim.
Panzera was also charged with conspiring to collect an unlawful debt under New Jersey law, defined as a loan given at a usurious interest rate of greater than 50 percent per year.
During the hearing, Linares set bail for Panzera, who was dressed in a dark suit, at $500,000, secured by property. Bail of $700,000 was set for Fiorello, who wore a black short-sleeve shirt and slacks.
As a condition of bail, both men were directed not to have any contact with witnesses or members and associates of organized crime.
After the hearing, veteran Hackensack attorney Frank P. Luciana, who is representing Panzera, declined to discuss the case, other than to say, “I’m very, very convinced that in this case justice is going to prevail.”
Thanks to Peter J. Sampson.
Thursday, June 27, 2013
Wednesday, June 26, 2013
Top Ten Signs You Have A Bad Summer Job
Top Ten Signs You Have A Bad Summer Job by David Letterman
10. Each day begins with the North Korean pledge of allegiance
9. You spend ten hours a day digging for Jimmy Hoffa
8. They make you share a whistle
7. Sign in restroom reads "Employees Must Wash Each Other"
6. Your parents lie and tell people you're a stripper
5. A big part of your day involves dodging Federales
4. Even the interns address you with "Out of the way, loser!"
3. To go home at the end of the day you have to escape
2. You work alongside this guy (VT: Chinese baggage handler)
1. You greet people with, "Welcome aboard Carnival Cruise Lines"
10. Each day begins with the North Korean pledge of allegiance
9. You spend ten hours a day digging for Jimmy Hoffa
8. They make you share a whistle
7. Sign in restroom reads "Employees Must Wash Each Other"
6. Your parents lie and tell people you're a stripper
5. A big part of your day involves dodging Federales
4. Even the interns address you with "Out of the way, loser!"
3. To go home at the end of the day you have to escape
2. You work alongside this guy (VT: Chinese baggage handler)
1. You greet people with, "Welcome aboard Carnival Cruise Lines"
Monday, June 24, 2013
Deal with the Devil, FBI's Secret Relationship with Mafia Killer Gregory Scarpa Sr on Crime Beat Radio
On June 27th, Peter Lance discusses his book, Deal with the Devil: The FBI’s Secret 30-year Relationship with a Mafia Killer. Margaret McClain, Special Correspondent, reports on the Bulger trial.
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.
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.
Sunday, June 23, 2013
Impeccable Connections: The Rise And Fall Of Richard Whitney – Stealing From Clients To Cover Debts. Sound Familiar?
“Not Dick Whitney. Not Dick Whitney!” President Franklin D. Roosevelt exclaimed upon being told Richard Whitney
, the long-time president of the New York Stock Exchange, was a criminal. Almost ten years earlier, on October 24, 1929, Black Thursday, as one newspaper’s headline put it the next day, “Richard Whitney Halts Stock Panic.” In 1934, he appeared on the cover of Time magazine, hailed as the leader of the securities industry in its fight against New Deal regulation. Whitney’s message was clear: the securities industry could regulate itself, and the federal government should stay out.
Impeccable Connections, The Rise and Fall of Richard Whitney, tells in rich detail the remarkable account of a well-connected gentleman’s extraordinary life and gives details of the banking and investment structure that precipitated the stock market collapse of 1929. As president of the NYSE, the story depicts how Whitney played his role even as he manipulated powerful and trusted friends. While Whitney’s name might be less common than Bernie Madoff, Ivan Boesky or Charles Keating, his rise to the top of Wall Street and fall to Sing Sing was all the more dramatic because he started at the top of the old-guard establishment.
Impeccable Connections by Malcolm MacKay, tells the fascinating story of one of the biggest scandals and scoundrels in American finance that resulted in the securities regulations that are in today’s headlines. Richard Whitney, a man whose family was ‘old Massachusetts’ but not wealthy or particularly distinguished, and whose father had risen from a clerk to a successful importer and banker. Richard followed his older brother George to Groton, Harvard, the college’s socially elite Porcellian Club, and Wall Street.
Known as ‘the voice of Wall Street,’ Whitney became the leading opponent of federal regulation of the securities industry, testifying in Washington, and speaking around the country (often broadcast on national radio). Power, money and social position were all his. A successful bond broker whose largest client was the Morgan bank, he lived in a grand manner. Imagine the nation’s shock when, in 1938, he was sent to Sing Sing for embezzling clients’ securities! Addressed by both guards and fellow prisoners as “Mr. Whitney,” befitting his social position, Whitney was released early in 1941 for good behavior, having served only 3 years and 4 months out of a 5 – 10 year sentence. After Whitney’s fall, the New Deal reforms of the securities industry became secure.
Whitney would live for more than three decades, surviving his loyal wife and supportive brother George, who made good on all Richard’s failed loans and fraud. After a few false starts in various businesses, he spent the remainder of his life as the treasurer of a local dairy owned by a Far Hills neighbor, living in a cottage on a local estate.
Malcolm MacKay skillfully recounts the life story of Whitney, a man who was known to be an insufferable snob and a scoundrel, and also offers remarkable insight into the psyche of the man himself. As a young man, Malcolm MacKay, who knew the much older Whitney personally, thought a great deal about Whitney’s actions, always wondering, ‘Why did he do what he did?’
Malcolm MacKay has written several local histories and articles published in leading newspapers and magazines. He is a graduate of Princeton University and Harvard Law School.
, the long-time president of the New York Stock Exchange, was a criminal. Almost ten years earlier, on October 24, 1929, Black Thursday, as one newspaper’s headline put it the next day, “Richard Whitney Halts Stock Panic.” In 1934, he appeared on the cover of Time magazine, hailed as the leader of the securities industry in its fight against New Deal regulation. Whitney’s message was clear: the securities industry could regulate itself, and the federal government should stay out.Impeccable Connections, The Rise and Fall of Richard Whitney, tells in rich detail the remarkable account of a well-connected gentleman’s extraordinary life and gives details of the banking and investment structure that precipitated the stock market collapse of 1929. As president of the NYSE, the story depicts how Whitney played his role even as he manipulated powerful and trusted friends. While Whitney’s name might be less common than Bernie Madoff, Ivan Boesky or Charles Keating, his rise to the top of Wall Street and fall to Sing Sing was all the more dramatic because he started at the top of the old-guard establishment.
Impeccable Connections by Malcolm MacKay, tells the fascinating story of one of the biggest scandals and scoundrels in American finance that resulted in the securities regulations that are in today’s headlines. Richard Whitney, a man whose family was ‘old Massachusetts’ but not wealthy or particularly distinguished, and whose father had risen from a clerk to a successful importer and banker. Richard followed his older brother George to Groton, Harvard, the college’s socially elite Porcellian Club, and Wall Street.
Known as ‘the voice of Wall Street,’ Whitney became the leading opponent of federal regulation of the securities industry, testifying in Washington, and speaking around the country (often broadcast on national radio). Power, money and social position were all his. A successful bond broker whose largest client was the Morgan bank, he lived in a grand manner. Imagine the nation’s shock when, in 1938, he was sent to Sing Sing for embezzling clients’ securities! Addressed by both guards and fellow prisoners as “Mr. Whitney,” befitting his social position, Whitney was released early in 1941 for good behavior, having served only 3 years and 4 months out of a 5 – 10 year sentence. After Whitney’s fall, the New Deal reforms of the securities industry became secure.
Whitney would live for more than three decades, surviving his loyal wife and supportive brother George, who made good on all Richard’s failed loans and fraud. After a few false starts in various businesses, he spent the remainder of his life as the treasurer of a local dairy owned by a Far Hills neighbor, living in a cottage on a local estate.
Malcolm MacKay skillfully recounts the life story of Whitney, a man who was known to be an insufferable snob and a scoundrel, and also offers remarkable insight into the psyche of the man himself. As a young man, Malcolm MacKay, who knew the much older Whitney personally, thought a great deal about Whitney’s actions, always wondering, ‘Why did he do what he did?’
Malcolm MacKay has written several local histories and articles published in leading newspapers and magazines. He is a graduate of Princeton University and Harvard Law School.
Friday, June 21, 2013
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.
“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.
Thursday, June 20, 2013
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.
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.
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.
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.
Wednesday, June 19, 2013
James Gandolfini, #TonySoprano, Dies from Heart Attack
James Gandolfini -- who famously played Tony Soprano on "The Sopranos" -- died earlier today in Italy ... TMZ has learned.
Gandolfini is believed to have suffered a heart attack. He was 51.
Gandolfini was in Italy to attend the 59th Taormina Film Festival in Sicily -- and he was scheduled to participate in a festival event this weekend with Italian director Gabriele Muccino.
Gandolfini shot to fame playing a hitman in the 1993 hit "True Romance" ... and quickly became a Hollywood legend when he was cast as Tony Soprano in 1999. He won 3 Emmy awards for the role during the show's 6 season run.
Gandolfini also appeared in a ton of huge movies including "Get Shorty," "The Mexican" and "Zero Dark Thirty."
Gandolfini is survived by his wife Deborah Lin, who gave birth to the couple's daughter in October 2012. He also has a teenage son from a previous marriage. R.I.P.
Thanks to TMZ.
Gandolfini is believed to have suffered a heart attack. He was 51.
Gandolfini was in Italy to attend the 59th Taormina Film Festival in Sicily -- and he was scheduled to participate in a festival event this weekend with Italian director Gabriele Muccino.
Gandolfini shot to fame playing a hitman in the 1993 hit "True Romance" ... and quickly became a Hollywood legend when he was cast as Tony Soprano in 1999. He won 3 Emmy awards for the role during the show's 6 season run.
Gandolfini also appeared in a ton of huge movies including "Get Shorty," "The Mexican" and "Zero Dark Thirty."
Gandolfini is survived by his wife Deborah Lin, who gave birth to the couple's daughter in October 2012. He also has a teenage son from a previous marriage. R.I.P.
Thanks to TMZ.
William Belfair, Licensed Psychiartrist, Charged with Illegally Distributing Oxycodone
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced the arrest of William S. Belfar, a licensed psychiatrist in New York, on charges that he distributed oxycodone, a prescription painkiller, for cash and without a medical purpose. Belfar was presented in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, William Belfar, a licensed psychiatrist, contributed to the growing epidemic of prescription drug abuse and addiction by writing prescriptions in exchange for cash—conduct which he had described as illegal when discussing other doctors. This office will not tolerate medical professionals who exploit their licenses to fuel the prescription drug problem.”
FBI Assistant Director in Charge George Venizelos said, “William Belfar, a licensed physician and mental health professional, allegedly exploited the addictive nature of oxycodone—the very thing he warned of on television—to make money. He violated the oath of his profession and broke the law in peddling oxycodone prescriptions. The Health Care Fraud Task Force was formed in part to protect the public from unscrupulous doctors who put profiteering ahead of professional responsibility.”
According to the complaint unsealed in Manhattan federal court:
Belfar operated a medical office in Manhattan, New York, from which he sold prescriptions for oxycodone and other medications for cash. On three occasions from May 2011 to April 2013, he sold prescriptions of oxycodone pills and other medications to an FBI confidential informant and two undercover FBI officers. Belfar sold the prescriptions for up to $1,000 per prescription. On one occasion when Belfar sold an oxycodone prescription, he stated to the informant, “[I]t is a very easy way to make money, but it’s an easy way for me to go to jail, too.” Belfar prescribed the oxycodone to the confidential informant even though he said he believed the informant was a “dealer.”
In February and March 2013, around the same time that Belfar was selling oxycodone prescriptions, he appeared on two television shows as an interview guest on the subject of oxycodone addiction. During those interviews, Belfar discussed cases of celebrities becoming addicted to oxycodone, including one situation where the “doctor essentially became [a] drug dealer.” Belfar also stated during one interview that “This is a big business....On the street...each [oxycodone] pill is $30....Patients will pay a lot of money just to get these pills....The doctors prescribe it. Yes, some do it for money. Some do it because they just don’t know what they are doing....[T]hey just shouldn’t be doing it.”
Oxycodone, a Schedule II controlled substance, is a powerful painkiller with a high potential for addiction and abuse. It is sold on the street as a substitute for heroin and other illegal drugs.
Belfar, 49, of Huntington, New York, is charged with three counts of distributing oxycodone. Each count carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the FBI, the FBI’s Boston Field Office, the FBI Boston-Lakeville RA, the New York City Police Department, and the FBI’s New York Health Care Fraud Task Force. The FBI’s New York Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force is composed of agents, officers, and investigators of the FBI, NYPD, New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, NYS Attorney General’s Office, NYS-Office of Medicaid Inspector General, NYC Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Rahul Mukhi and Ian McGinley are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, William Belfar, a licensed psychiatrist, contributed to the growing epidemic of prescription drug abuse and addiction by writing prescriptions in exchange for cash—conduct which he had described as illegal when discussing other doctors. This office will not tolerate medical professionals who exploit their licenses to fuel the prescription drug problem.”
FBI Assistant Director in Charge George Venizelos said, “William Belfar, a licensed physician and mental health professional, allegedly exploited the addictive nature of oxycodone—the very thing he warned of on television—to make money. He violated the oath of his profession and broke the law in peddling oxycodone prescriptions. The Health Care Fraud Task Force was formed in part to protect the public from unscrupulous doctors who put profiteering ahead of professional responsibility.”
According to the complaint unsealed in Manhattan federal court:
Belfar operated a medical office in Manhattan, New York, from which he sold prescriptions for oxycodone and other medications for cash. On three occasions from May 2011 to April 2013, he sold prescriptions of oxycodone pills and other medications to an FBI confidential informant and two undercover FBI officers. Belfar sold the prescriptions for up to $1,000 per prescription. On one occasion when Belfar sold an oxycodone prescription, he stated to the informant, “[I]t is a very easy way to make money, but it’s an easy way for me to go to jail, too.” Belfar prescribed the oxycodone to the confidential informant even though he said he believed the informant was a “dealer.”
In February and March 2013, around the same time that Belfar was selling oxycodone prescriptions, he appeared on two television shows as an interview guest on the subject of oxycodone addiction. During those interviews, Belfar discussed cases of celebrities becoming addicted to oxycodone, including one situation where the “doctor essentially became [a] drug dealer.” Belfar also stated during one interview that “This is a big business....On the street...each [oxycodone] pill is $30....Patients will pay a lot of money just to get these pills....The doctors prescribe it. Yes, some do it for money. Some do it because they just don’t know what they are doing....[T]hey just shouldn’t be doing it.”
Oxycodone, a Schedule II controlled substance, is a powerful painkiller with a high potential for addiction and abuse. It is sold on the street as a substitute for heroin and other illegal drugs.
Belfar, 49, of Huntington, New York, is charged with three counts of distributing oxycodone. Each count carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the FBI, the FBI’s Boston Field Office, the FBI Boston-Lakeville RA, the New York City Police Department, and the FBI’s New York Health Care Fraud Task Force. The FBI’s New York Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force is composed of agents, officers, and investigators of the FBI, NYPD, New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, NYS Attorney General’s Office, NYS-Office of Medicaid Inspector General, NYC Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Rahul Mukhi and Ian McGinley are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Evan Hall Charged in Connection with String of Suburban Bank Robberies
A Cary, Illinois man has been charged in a three-count criminal complaint for robberies that occurred over a 10-day period earlier this month. The charges were announced yesterday by Cory B. Nelson, Special Agent in Charge of the Chicago Field Office of the FBI, and Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
Evan L. Hall, 26, of the 100 block of River Drive in Cary, was charged in a criminal complaint filed last Friday in U.S. District Court with three counts of bank robbery, a felony offense. He appeared before U.S. Magistrate Judge Mary M. Rowland Monday, at which time he was formally charged. Hall remains in federal custody pending his next scheduled court appearance, which is scheduled for July 1, 2013, at 10:00 a.m.
According to the complaint, Hall’s first robbery occurred on June 2, 2013, at a TCF Bank branch located at 1157 North Eola Road in Aurora. On that date, Hall allegedly made a verbal demand for money, and, when offered an entire drawer of cash by the teller, Hall directed the teller to hand him the money instead. A witness reported seeing the robber leave the bank and enter a gray-colored Audi.
The second of the charged robberies took place at a Lombard TCF Bank branch located at 1177 South Main Street just four days later. The complaint alleges that on June 6, Hall entered the bank and again made a verbal demand for money. The complaint further alleges that Hall threatened the teller and gestured to a firearm he carried in a sweatshirt pocket.
The third robbery charged in the complaint occurred on June 12. The complaint states that Hall entered a TCF Bank branch located at 1952 West Galena Boulevard in Aurora on that day and once more verbally demanded money from the teller. A short time later, police stopped a blue Audi near the location of the robbery and took Hall, the passenger in that car, into custody.
Mr. Nelson expressed his thanks to the Aurora and Lombard Police Departments for their participation in the investigation of the robberies and the quick apprehension of Hall following the third robbery.
If convicted of the charge filed against him, Hall faces a possible maximum sentence of 20 years in prison.
The public is reminded that a criminal complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.
Evan L. Hall, 26, of the 100 block of River Drive in Cary, was charged in a criminal complaint filed last Friday in U.S. District Court with three counts of bank robbery, a felony offense. He appeared before U.S. Magistrate Judge Mary M. Rowland Monday, at which time he was formally charged. Hall remains in federal custody pending his next scheduled court appearance, which is scheduled for July 1, 2013, at 10:00 a.m.
According to the complaint, Hall’s first robbery occurred on June 2, 2013, at a TCF Bank branch located at 1157 North Eola Road in Aurora. On that date, Hall allegedly made a verbal demand for money, and, when offered an entire drawer of cash by the teller, Hall directed the teller to hand him the money instead. A witness reported seeing the robber leave the bank and enter a gray-colored Audi.
The second of the charged robberies took place at a Lombard TCF Bank branch located at 1177 South Main Street just four days later. The complaint alleges that on June 6, Hall entered the bank and again made a verbal demand for money. The complaint further alleges that Hall threatened the teller and gestured to a firearm he carried in a sweatshirt pocket.
The third robbery charged in the complaint occurred on June 12. The complaint states that Hall entered a TCF Bank branch located at 1952 West Galena Boulevard in Aurora on that day and once more verbally demanded money from the teller. A short time later, police stopped a blue Audi near the location of the robbery and took Hall, the passenger in that car, into custody.
Mr. Nelson expressed his thanks to the Aurora and Lombard Police Departments for their participation in the investigation of the robberies and the quick apprehension of Hall following the third robbery.
If convicted of the charge filed against him, Hall faces a possible maximum sentence of 20 years in prison.
The public is reminded that a criminal complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.
Pedro Gautier Espada, Former Councilman, Sentenced to Six Months’ Imprisonment
Yesterday, Pedro Gautier Espada was sentenced before Judge Frederic Block in U.S. District Court in Brooklyn, New York, to six months’ imprisonment, to be followed by six months’ home confinement and one year of supervised release, for theft of federal funds from Bronx-based non-profit healthcare clinics, Soundview Healthcare Network (“Soundview”) and for failing to file a tax return for tax year 2009. As part of that sentence, Judge Block ordered Gautier Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $15,628, and additional restitution to the victims of his thefts in an amount to be determined by the court. Gautier Espada served the South Bronx as a New York City Councilman from 1997 to 2001 and as a New York State Assemblyman in 1996.
On June 14, 2013, Judge Block sentenced Gautier Espada’s father, former New York State Senate Majority Leader Pedro Espada, Jr. to five years’ imprisonment, to be followed by three years of supervised release, for theft of federal funds from Soundview and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons.
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); and Toni Weirauch, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).
On October 12, 2012, Gautier Espada pled guilty to one count of stealing federal funding from Soundview and one count of failing to file a tax return for 2009. Gautier Espada was Soundview’s Director of Environmental Care and headed Soundview’s Compliance Committee.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Carolyn Pokorny, and Claire Kedeshian.
On June 14, 2013, Judge Block sentenced Gautier Espada’s father, former New York State Senate Majority Leader Pedro Espada, Jr. to five years’ imprisonment, to be followed by three years of supervised release, for theft of federal funds from Soundview and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons.
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); and Toni Weirauch, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).
On October 12, 2012, Gautier Espada pled guilty to one count of stealing federal funding from Soundview and one count of failing to file a tax return for 2009. Gautier Espada was Soundview’s Director of Environmental Care and headed Soundview’s Compliance Committee.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Carolyn Pokorny, and Claire Kedeshian.
Tuesday, June 18, 2013
Carl Fiorentin, Former President of TigerDirect, Indicted for Executing Fraud and Money Laundering Scheme Involving More Than $230 Million in Purchases
An indictment was unsealed this morning in federal court in the Eastern District of New York charging Carl Fiorentino, the former president of computer and electronics seller TigerDirect, with mail fraud, wire fraud, and money laundering in connection with a scheme to defraud TigerDirect and its parent company, Systemax Inc. (“Systemax”). Systemax is a publicly traded company with headquarters in Port Washington, New York. According to the indictment, the defendant personally took more than $7 million in commercial bribes and kickbacks in return for steering more than $230 million in business to the Taiwanese and California companies that paid the bribes and kickbacks.
The defendant was arrested by federal agents earlier today in Coral Gables, Florida, and a search warrant was executed at his $8 million residence, purchased with fraud proceeds. Later today, the defendant will appear for arraignment before United States Magistrate Judge Edwin Torres in the Southern District of Florida. The criminal case has been assigned to the Honorable Sandra J. Feuerstein, United States District Judge for the Eastern District of New York, in Central Islip, New York.
The arrest and charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Michael DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Miami, Florida.
“As alleged in the indictment and court papers, Carl Fiorentino abused his position of trust, employing fraud and deceit to line his own pockets at the expense of his employer and its public shareholders. Fiorentino had it all—a lucrative job and a high-flying lifestyle. But as alleged in the indictment and court papers, his loyalties were neither to his employer nor its public shareholders but solely to himself. Fiorentino’s greed spanned the Pacific Ocean to pull companies from California to Taiwan into his bribery and kickback scheme,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute to the fullest extent of the law those who seek to profit by such fraud.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS for their work on the investigation.
“As alleged, Fiorentino exploited his position to engage in blatant self-dealing. He accepted bribes to abuse his purchasing power and direct company business to specific suppliers. The suppliers’ lavish kickbacks helped finance Fiorentino’s multi-million-dollar home. The FBI will continue to police the kind of insider fraud that victimizes companies and their shareholders,” stated FBI Assistant Director in Charge Venizelos.
“IRS-Criminal Investigation is committed to unraveling elaborate and complex money laundering schemes leaving no financial stones unturned,” stated Michael J. De Palma, Acting Special Agent in Charge of IRS-Criminal Investigation, Miami Field Office. “Those who abuse their position of trust to illegally enrich themselves will be held accountable for their actions.”
Beginning in January 2003 and continuing until April 2011, Fiorentino was the president of TigerDirect, a subsidiary of Systemax Inc. that sold brand-name computers and its own line of Ultra computers in its retail stores and via mail-order catalogs and the Internet. In 2010 Systemax reported $3.5 billion in net sales according to its 2010 SEC 10K filing. Among his duties as company president, Fiorentino was responsible for selecting suppliers to provide computer components, peripherals, and other products to TigerDirect. As alleged in the indictment, beginning in 2003, Fiorentino entered into an illegal agreement with the owner of a Taiwanese company to steer TigerDirect business to his company by directing TigerDirect to purchase the Taiwanese company’s computer components in exchange for bribes and kickbacks that totaled $6.5 million dollars over the course of the conspiracy. In addition, between 2003 and 2007, Fiorentino received another $570,000 in bribes and kickbacks from a California-based company that sold computer memory modules and flash memory products. Fiorentino received the bribes and kickbacks through checks and wire transfers payable to third party individuals and entities that he controlled. Fiorentino used the proceeds of the fraud scheme to buy, among other things, an $8 million home in Coral Gables, Florida.
As a result of the scheme, TigerDirect is alleged to have paid over $157,000,000 for the Taiwanese company’s products and $80,000,000 for the California company’s products. Fiorentino concealed the scheme and kickback payments by submitting false conflict of interest forms to Systemax and using a complex web of wire transfers and shell companies.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. The indictment charges Fiorentino with mail fraud, wire fraud, conspiracy to commit mail and wire fraud, and money laundering conspiracy. If convicted, he faces a maximum sentence of 20 years’ imprisonment on each of those charges, forfeiture of the $8 million Coral Gables residence and over $7 million dollars, and a $250,000 fine.
The government’s case is being prosecuted by Assistant United States Attorney Demetri Jones.
The defendant was arrested by federal agents earlier today in Coral Gables, Florida, and a search warrant was executed at his $8 million residence, purchased with fraud proceeds. Later today, the defendant will appear for arraignment before United States Magistrate Judge Edwin Torres in the Southern District of Florida. The criminal case has been assigned to the Honorable Sandra J. Feuerstein, United States District Judge for the Eastern District of New York, in Central Islip, New York.
The arrest and charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Michael DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Miami, Florida.
“As alleged in the indictment and court papers, Carl Fiorentino abused his position of trust, employing fraud and deceit to line his own pockets at the expense of his employer and its public shareholders. Fiorentino had it all—a lucrative job and a high-flying lifestyle. But as alleged in the indictment and court papers, his loyalties were neither to his employer nor its public shareholders but solely to himself. Fiorentino’s greed spanned the Pacific Ocean to pull companies from California to Taiwan into his bribery and kickback scheme,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute to the fullest extent of the law those who seek to profit by such fraud.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS for their work on the investigation.
“As alleged, Fiorentino exploited his position to engage in blatant self-dealing. He accepted bribes to abuse his purchasing power and direct company business to specific suppliers. The suppliers’ lavish kickbacks helped finance Fiorentino’s multi-million-dollar home. The FBI will continue to police the kind of insider fraud that victimizes companies and their shareholders,” stated FBI Assistant Director in Charge Venizelos.
“IRS-Criminal Investigation is committed to unraveling elaborate and complex money laundering schemes leaving no financial stones unturned,” stated Michael J. De Palma, Acting Special Agent in Charge of IRS-Criminal Investigation, Miami Field Office. “Those who abuse their position of trust to illegally enrich themselves will be held accountable for their actions.”
Beginning in January 2003 and continuing until April 2011, Fiorentino was the president of TigerDirect, a subsidiary of Systemax Inc. that sold brand-name computers and its own line of Ultra computers in its retail stores and via mail-order catalogs and the Internet. In 2010 Systemax reported $3.5 billion in net sales according to its 2010 SEC 10K filing. Among his duties as company president, Fiorentino was responsible for selecting suppliers to provide computer components, peripherals, and other products to TigerDirect. As alleged in the indictment, beginning in 2003, Fiorentino entered into an illegal agreement with the owner of a Taiwanese company to steer TigerDirect business to his company by directing TigerDirect to purchase the Taiwanese company’s computer components in exchange for bribes and kickbacks that totaled $6.5 million dollars over the course of the conspiracy. In addition, between 2003 and 2007, Fiorentino received another $570,000 in bribes and kickbacks from a California-based company that sold computer memory modules and flash memory products. Fiorentino received the bribes and kickbacks through checks and wire transfers payable to third party individuals and entities that he controlled. Fiorentino used the proceeds of the fraud scheme to buy, among other things, an $8 million home in Coral Gables, Florida.
As a result of the scheme, TigerDirect is alleged to have paid over $157,000,000 for the Taiwanese company’s products and $80,000,000 for the California company’s products. Fiorentino concealed the scheme and kickback payments by submitting false conflict of interest forms to Systemax and using a complex web of wire transfers and shell companies.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. The indictment charges Fiorentino with mail fraud, wire fraud, conspiracy to commit mail and wire fraud, and money laundering conspiracy. If convicted, he faces a maximum sentence of 20 years’ imprisonment on each of those charges, forfeiture of the $8 million Coral Gables residence and over $7 million dollars, and a $250,000 fine.
The government’s case is being prosecuted by Assistant United States Attorney Demetri Jones.
$65,000 Reward Offered for Information in Search for #BikeBomber in Times Square Attack
Today, the Federal Bureau of Investigation and the New York City Police Department announced a reward of up to $65,000 for information leading to the identification, arrest, and conviction of the suspect or suspects involved in the unsolved 2008 bombing of the United States Armed Forces Recruiting Station in Times Square. Also released today are never-before-seen video of the suspect(s) and a picture of the explosive device. The suspect(s) may be connected to two other unsolved bombings in New York City—one at the British Consulate in 2005 and the other at the Mexican Consulate in 2007.
Early on the morning of Thursday, March 6, 2008, a bomb exploded in New York’s Times Square at the Armed Forces Recruiting Station. The suspect rode a blue Ross bicycle west on 37th Street, took a right up Sixth Avenue, and made a left on 47th Street before turning left down Seventh Avenue. The suspect got off his bike near the recruiting station at West 43rd Street and Seventh Avenue, placed the explosive device at the recruiting station, lit a fuse, and fled the scene on the bicycle. Although the suspect appears to be working alone, he or she may have had a lookout or surveillance team of as many as five other individuals in Times Square at the time of the attack. The suspect then rode his or her bike south on Broadway before turning left on 38th Street. The bike was later recovered in a dumpster near Madison Avenue and 38th Street.
The explosive device was built using an ammunition can commonly found on the battlefields in Iraq and Afghanistan. It was filled halfway with black powder and detonated using a time fuse. Although no one was wounded, the device could have caused significant casualties if people had been close to the blast.
Details of this bombing are similar to those of two other unsolved bombings that occurred in New York City—one at the British Consulate in May 2005 and the other at the Mexican Consulate in October 2007. All of the devices were delivered by an individual on a bicycle and were detonated between 3 a.m. and 4 a.m. The incidents may be connected.
“Someone, somewhere knows something about a bomber who’s still on the run,” said FBI Assistant Director in Charge George Venizelos. “Today, we’re asking for the public’s assistance in finding those responsible and encouraging the public to look closely at these photos and video, which could be the key to breaking the case.”
“While published reports have repeatedly cited the early morning time of the attack and the lack of casualties, the fact is the bomber narrowly missed killing or injuring passers-by who can be seen clearly in the vicinity moments before the blast,” said New York City Police Department Commissioner Raymond W. Kelly. “The distance between polemics by bombing and the murdering of innocents is short, indeed.”
The suspect on the bicycle was last seen wearing a gray sweatshirt and pants of an unknown color. The height, weight, age, sex, and race of the suspect are unknown.
A reward of up to $65,000 is being offered for information leading to the identification, arrest, and conviction of the person(s) responsible for the 2008 bombing of the U.S. Armed Forces Recruiting Station. Any information about the suspect(s), the bicycle, or any other details could be pertinent. Anyone with information on any of the three bombings is encouraged to call the FBI at 212-384-1000. Tipsters may remain anonymous.
The investigation is being counducted by the FBI’s Joint Terrorism Task Force in Manhattan, which is composed of FBI agents, NYPD detectives, and members of more than 50 local, state, and federal agencies. The FBI’s Joint Terrorism Task Force is being assisted by prosecutors from the United States Attorney’s Office for the Southern District of New York.
The FBI and the NYPD will be using the hash tag #BikeBomber to disseminate information about the attacks and to solicit information.
Early on the morning of Thursday, March 6, 2008, a bomb exploded in New York’s Times Square at the Armed Forces Recruiting Station. The suspect rode a blue Ross bicycle west on 37th Street, took a right up Sixth Avenue, and made a left on 47th Street before turning left down Seventh Avenue. The suspect got off his bike near the recruiting station at West 43rd Street and Seventh Avenue, placed the explosive device at the recruiting station, lit a fuse, and fled the scene on the bicycle. Although the suspect appears to be working alone, he or she may have had a lookout or surveillance team of as many as five other individuals in Times Square at the time of the attack. The suspect then rode his or her bike south on Broadway before turning left on 38th Street. The bike was later recovered in a dumpster near Madison Avenue and 38th Street.
The explosive device was built using an ammunition can commonly found on the battlefields in Iraq and Afghanistan. It was filled halfway with black powder and detonated using a time fuse. Although no one was wounded, the device could have caused significant casualties if people had been close to the blast.
Details of this bombing are similar to those of two other unsolved bombings that occurred in New York City—one at the British Consulate in May 2005 and the other at the Mexican Consulate in October 2007. All of the devices were delivered by an individual on a bicycle and were detonated between 3 a.m. and 4 a.m. The incidents may be connected.
“Someone, somewhere knows something about a bomber who’s still on the run,” said FBI Assistant Director in Charge George Venizelos. “Today, we’re asking for the public’s assistance in finding those responsible and encouraging the public to look closely at these photos and video, which could be the key to breaking the case.”
“While published reports have repeatedly cited the early morning time of the attack and the lack of casualties, the fact is the bomber narrowly missed killing or injuring passers-by who can be seen clearly in the vicinity moments before the blast,” said New York City Police Department Commissioner Raymond W. Kelly. “The distance between polemics by bombing and the murdering of innocents is short, indeed.”
The suspect on the bicycle was last seen wearing a gray sweatshirt and pants of an unknown color. The height, weight, age, sex, and race of the suspect are unknown.
A reward of up to $65,000 is being offered for information leading to the identification, arrest, and conviction of the person(s) responsible for the 2008 bombing of the U.S. Armed Forces Recruiting Station. Any information about the suspect(s), the bicycle, or any other details could be pertinent. Anyone with information on any of the three bombings is encouraged to call the FBI at 212-384-1000. Tipsters may remain anonymous.
The investigation is being counducted by the FBI’s Joint Terrorism Task Force in Manhattan, which is composed of FBI agents, NYPD detectives, and members of more than 50 local, state, and federal agencies. The FBI’s Joint Terrorism Task Force is being assisted by prosecutors from the United States Attorney’s Office for the Southern District of New York.
The FBI and the NYPD will be using the hash tag #BikeBomber to disseminate information about the attacks and to solicit information.
Monday, June 17, 2013
#JimmyHoffa Remains to be Found in Shallow Michigan Grave Today?
The FBI is planning to dig in a Detroit-area field Monday in a hunt for the remains of former Teamsters boss Jimmy Hoffa, according to a law enforcement source with direct knowledge of the investigation.
Agents on Monday morning were executing a search warrant for a field in Oakland Township, north of Detroit, based in part on information provided by Tony Zerilli, a man alleged to have been a mobster.
Earlier this year, Zerilli told New York's NBC 4 that Hoffa was buried in a Michigan field about 20 miles north of where he was last seen in 1975.
The FBI has spent months looking into Zerilli's claims before seeking court authorization to excavate the field and look for evidence of a shallow grave, according to the source.
Hoffa, then 62, was last seen on July 30, 1975, outside a Detroit-area restaurant. The FBI said at the time that the disappearance could have been linked to Hoffa's efforts to regain power in the Teamsters and to the mob's influence over the union's pension funds.
Hoffa's disappearance and presumed death has vexed investigators for almost four decades. As recently as October, soil samples were taken from a home in the suburban Detroit community after a tipster claimed he saw a body buried in the yard a day after Hoffa disappeared in 1975.
The soil samples were tested, and showed no evidence of human remains or decomposition.
Zerilli, freed in 2008 after his last prison sentence, was convicted of crimes in connection with organized crime in Detroit. Keith Corbett, a former U.S. attorney, told CNN earlier this year that Zerilli headed a Detroit organized crime family from 1970 to 1975, but was in prison when Hoffa disappeared.
Zerilli told CNN affiliate WDIV-TV that a "Mafia enforcer" informed him that Hoffa was buried in the Oakland Township field as a temporary measure, and that the remains were to be moved to another spot near a hunting lodge after the heat died down from a massive police attempt to find Hoffa.
Agents on Monday morning were executing a search warrant for a field in Oakland Township, north of Detroit, based in part on information provided by Tony Zerilli, a man alleged to have been a mobster.
Earlier this year, Zerilli told New York's NBC 4 that Hoffa was buried in a Michigan field about 20 miles north of where he was last seen in 1975.
The FBI has spent months looking into Zerilli's claims before seeking court authorization to excavate the field and look for evidence of a shallow grave, according to the source.
Hoffa, then 62, was last seen on July 30, 1975, outside a Detroit-area restaurant. The FBI said at the time that the disappearance could have been linked to Hoffa's efforts to regain power in the Teamsters and to the mob's influence over the union's pension funds.
Hoffa's disappearance and presumed death has vexed investigators for almost four decades. As recently as October, soil samples were taken from a home in the suburban Detroit community after a tipster claimed he saw a body buried in the yard a day after Hoffa disappeared in 1975.
The soil samples were tested, and showed no evidence of human remains or decomposition.
Zerilli, freed in 2008 after his last prison sentence, was convicted of crimes in connection with organized crime in Detroit. Keith Corbett, a former U.S. attorney, told CNN earlier this year that Zerilli headed a Detroit organized crime family from 1970 to 1975, but was in prison when Hoffa disappeared.
Zerilli told CNN affiliate WDIV-TV that a "Mafia enforcer" informed him that Hoffa was buried in the Oakland Township field as a temporary measure, and that the remains were to be moved to another spot near a hunting lodge after the heat died down from a massive police attempt to find Hoffa.
Secret Life Inside the Dirty Banks of Pablo Escobar's Medellin Cartel
On June 20th, Robert Mazur discusses his book, Infiltrator: My Secret Life inside the Dirty Banks behind Pablo Escobar’s Medellin Cartel, which is being made into a movie. Margaret McClain, Special Correspondent will report on the Bulger trial.
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.
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.
Sunday, June 16, 2013
@TheMobMuseum Wins Project of the Year Award from American Public Works Association
The Mob Museum, the National Museum of Organized Crime and Law Enforcement, has been named a 2013 Public Works Project of the Year by the American Public Works Association (APWA). The project’s managing agency, the City of Las Vegas Public Works Department, as well as primary contractor APCO Construction and primary consultant Westlake Reed Keskosky, will be recognized at the awards ceremony scheduled to take place in Chicago this August.
The Mob Museum received the national Project of the Year Award in the Historic Restoration/Preservation category for projects costing $25 million - $75 million. Building renovations in preparation for the Museum’s opening comprised $42 million and encompassed 17,000 square feet of exhibition space spanning three floors.
Open as The Mob Museum in February 2012, the venue’s building was originally constructed in 1933 as a U.S. Federal courthouse and post office. Listed on both the Nevada and National Registers of Historic Places, the building is significant for its Depression-era neoclassical architecture.
“We’re proud of the recognition that the City of Las Vegas’ public works department has received,” said Jonathan Ullman, executive director and CEO, The Mob Museum. “Thanks to the City’s efforts to preserve our historic building, the public has an extraordinary place for learning about organized crime and law enforcement.”
The building itself played a prominent role in the history of organized crime and law enforcement. On Nov. 15, 1950, its courtroom was the site of a hearing by the U.S. Senate Special Committee to Investigate Organized Crime in Interstate Commerce—known widely as the Kefauver Committee hearings—which proved pivotal to the nation’s fight against organized crime and Las Vegas’ development as a gaming capital.
The Mob Museum received the national Project of the Year Award in the Historic Restoration/Preservation category for projects costing $25 million - $75 million. Building renovations in preparation for the Museum’s opening comprised $42 million and encompassed 17,000 square feet of exhibition space spanning three floors.
Open as The Mob Museum in February 2012, the venue’s building was originally constructed in 1933 as a U.S. Federal courthouse and post office. Listed on both the Nevada and National Registers of Historic Places, the building is significant for its Depression-era neoclassical architecture.
“We’re proud of the recognition that the City of Las Vegas’ public works department has received,” said Jonathan Ullman, executive director and CEO, The Mob Museum. “Thanks to the City’s efforts to preserve our historic building, the public has an extraordinary place for learning about organized crime and law enforcement.”
The building itself played a prominent role in the history of organized crime and law enforcement. On Nov. 15, 1950, its courtroom was the site of a hearing by the U.S. Senate Special Committee to Investigate Organized Crime in Interstate Commerce—known widely as the Kefauver Committee hearings—which proved pivotal to the nation’s fight against organized crime and Las Vegas’ development as a gaming capital.
Friday, June 14, 2013
Pedro Espada, Jr., Former State Senate Majority Leader, Sentenced to Five Years’ Imprisonment for Theft of Federal Funds
Earlier today, Pedro Espada, Jr. was sentenced before Judge Frederic Block in U.S. District Court in Brooklyn, New York, to five years’ imprisonment, to be followed by three years of supervised release, for theft of federal funds from Bronx-based non-profit health care clinics and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons. Espada is a former New York state senator for the 33rd Senate District in the Bronx who served as the New York State senate majority leader from 2009 to 2010.
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 (FBI), New York Field Office; and Toni Weirauch, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, New York.
“The people of the Bronx trusted Pedro Espada, Jr. to have their best interests at heart. Instead, he abused that trust to the tune of more than half-a-million dollars. Under obligation to use the funds he received for the benefit of people sorely in need of quality health care, he chose instead to benefit himself and his family at their expense. Espada embezzled funds to finance his personal lifestyle and lavish gifts on friends and family members at the expense of taxpayers and underprivileged members of the Bronx community who were deprived of needed health services and medical equipment. He continued his campaign of lying and fraud on his tax returns,” stated United States Attorney Lynch. “Espada has finally been held to account for his crimes.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS, the agencies responsible for leading the government’s investigation, and thanked the Office of New York State Attorney General Eric T. Schneiderman for its assistance.
On May 14, 2012, a federal jury in Brooklyn returned a guilty verdict against Espada on four counts of stealing from non-profit medical clinics in the Bronx that received federal funding. On October 12, 2012, Espada pled guilty to making false statements on his 2005 personal tax return and agreed not to appeal or otherwise challenge the jury’s verdict. That same day, Espada’s son and co-defendant, Pedro Gautier Espada, pled guilty to guilty to one count of stealing federal funding from non-profit medical clinics and one count of failing to file a tax return in 2009, and his sentencing has been scheduled for June 18, 2013, also before Judge Block.
FBI Assistant Director in Charge Venizelos stated, “Over 30 years ago, Pedro Espada, Jr. helped establish the Soundview Health Center, but his own greed and self-dealing undermined that good work. Espada’s embezzlement of federal funds diverted money meant to serve the health needs of the people of the South Bronx. In lining his own pockets, he betrayed those people and stole from U.S. taxpayers in the process. There is a price to pay for these betrayals.”
The successful outcome of the collaborative effort in this investigation demonstrates the government’s resolve in investigating and prosecuting public corruption. Today’s sentences mark the end of a long period of criminal activity that harmed the patients of the not-for-profit clinics, who depended on the services the clinics provided and law abiding American taxpayers, who have to pick up the slack whenever others deliberately do not pay their fair share. IRS Criminal Investigation is proud of its partnership with the FBI and the U.S. Attorney’s Office,” stated IRS Special Agent in Charge Weirauch.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Carolyn Pokorny, and Claire Kedeshian.
Defendants
Pedro Espada, Jr.
Age: 58
Mamaroneck, New York
Pedro Gautier Espada
Age: 39
Fairfield, Connecticut
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 (FBI), New York Field Office; and Toni Weirauch, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, New York.
“The people of the Bronx trusted Pedro Espada, Jr. to have their best interests at heart. Instead, he abused that trust to the tune of more than half-a-million dollars. Under obligation to use the funds he received for the benefit of people sorely in need of quality health care, he chose instead to benefit himself and his family at their expense. Espada embezzled funds to finance his personal lifestyle and lavish gifts on friends and family members at the expense of taxpayers and underprivileged members of the Bronx community who were deprived of needed health services and medical equipment. He continued his campaign of lying and fraud on his tax returns,” stated United States Attorney Lynch. “Espada has finally been held to account for his crimes.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS, the agencies responsible for leading the government’s investigation, and thanked the Office of New York State Attorney General Eric T. Schneiderman for its assistance.
On May 14, 2012, a federal jury in Brooklyn returned a guilty verdict against Espada on four counts of stealing from non-profit medical clinics in the Bronx that received federal funding. On October 12, 2012, Espada pled guilty to making false statements on his 2005 personal tax return and agreed not to appeal or otherwise challenge the jury’s verdict. That same day, Espada’s son and co-defendant, Pedro Gautier Espada, pled guilty to guilty to one count of stealing federal funding from non-profit medical clinics and one count of failing to file a tax return in 2009, and his sentencing has been scheduled for June 18, 2013, also before Judge Block.
FBI Assistant Director in Charge Venizelos stated, “Over 30 years ago, Pedro Espada, Jr. helped establish the Soundview Health Center, but his own greed and self-dealing undermined that good work. Espada’s embezzlement of federal funds diverted money meant to serve the health needs of the people of the South Bronx. In lining his own pockets, he betrayed those people and stole from U.S. taxpayers in the process. There is a price to pay for these betrayals.”
The successful outcome of the collaborative effort in this investigation demonstrates the government’s resolve in investigating and prosecuting public corruption. Today’s sentences mark the end of a long period of criminal activity that harmed the patients of the not-for-profit clinics, who depended on the services the clinics provided and law abiding American taxpayers, who have to pick up the slack whenever others deliberately do not pay their fair share. IRS Criminal Investigation is proud of its partnership with the FBI and the U.S. Attorney’s Office,” stated IRS Special Agent in Charge Weirauch.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Carolyn Pokorny, and Claire Kedeshian.
Defendants
Pedro Espada, Jr.
Age: 58
Mamaroneck, New York
Pedro Gautier Espada
Age: 39
Fairfield, Connecticut
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Thursday, June 13, 2013
Antonio Rivera Sentenced to 60 Years in Prison for Sex Trafficking, Forced Labor, and Immigration Crimes on Long Island
Yesterday, Antonio Rivera, the former owner of the bars Sonidos de la Frontera in Lake Ronkonkoma and La Hija del Mariachi in Farmingville, New York, was sentenced to 60 years’ imprisonment for his role in a sex trafficking and forced labor ring. Rivera’s co-defendants, John Whaley and Jason Villaman, were sentenced to 25 and 30 years, respectively. The sentences were imposed by United States District Judge Sandra J. Feuerstein at the United States Courthouse in Central Islip, New York. The three defendants were convicted after a four-week trial of multiple offenses, including conspiracy, sex trafficking, forced labor, alien harboring, and alien transportation.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Roy L. Austin, Jr., Deputy Assistant Attorney General, Civil Rights Division; James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; Edward Webber, Commissioner, Suffolk County Police Department; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Toni Weirauch, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, New York.
The government’s evidence at trial established that the defendants and others recruited, hired, and harbored in the United States scores of undocumented Latin American immigrants to work as waitresses in Rivera’s bars. The women had come to the United States from Honduras, Guatelmala, Mexico, and El Salvador. Rivera placed ads and flyers seeking waitresses in Spanish language newspapers and at local businesses frequented by Spanish-speaking immigrants. After the women agreed to work as waitresses, Rivera directed them to solicit patrons to buy them alcoholic beverages, which the women were required to consume, and eventually forced them to engage in sexual acts with the patrons in exchange for money, which Rivera kept. Several witnesses testified that Rivera and others used violence, including rapes and beatings, as well as fraud and threats of deportation to compel the victims to continue to work for him and to prevent them from reporting the illegal activity to police.
One victim testified that she was raped by a bar patron inside Sonidos during business hours in full view of patrons and employees. Another victim testified that on one occasion, she was transported by Villaman to a local hotel, where she was raped while unconscious by a bar patron and awoke to find Villaman watching the assault. A third victim testified that Rivera raped her on multiple occasions and subsequently ordered a security guard to brutally beat her. According to the victim, the security guard drove her to a deserted parking lot after work and, once there, viciously beat her. According to other testimony, Whaley, who assisted Rivera in hiring waitresses, maintaining the bars, and transporting the waitresses to and from the two bars, sexually assaulted one of the victims whom he was supposed to drive home. Testimony also revealed that Villaman acted as a security guard at Sonidos de la Frontera and assisted Rivera in illegal acts against victims, including dumping an unconscious victim on the lawn outside her home after the he and Rivera had assaulted her. Several victims testified that their wages were often taken from them under the guise of being placed into a short-term group savings scheme called the “Society” but were not returned to them as promised, which forced the victims to remain in Rivera’s employ in hopes of recouping their money.
“The defendants lured vulnerable young women to the United States with the promise of a better life and the ability to earn a living to support their families. Once here, the defendants then turned their American dream into a nightmare, subjecting them to unspeakable physical violence and emotional abuse, as well as threats of deportation, in order to line their own pockets. The lengthy sentences imposed today are fair and just punishment for the intolerable crimes that these defendants committed,” stated United States Attorney Lynch. “We will continue our efforts to ensure that the full protection of the law is provided to all our residents.” Ms. Lynch expressed her grateful appreciation to HSI, Suffolk County Police Department, FBI, and the IRS for their assistance in this case.
“These defendants preyed on some of the most vulnerable members of our society—young, undocumented women and girls seeking a better life—and brutally exploited them in a scheme driven by cruelty and greed,” stated Deputy Assistant Attorney General Austin. “Human trafficking is an affront to freedom and individual rights. The sentences handed down today affirm our commitment as a nation to bringing human traffickers to justice and restoring the rights and dignity of human trafficking victims.”
“The men sentenced today lured innocent women with dreams of good paying jobs that turned into a nightmare of forced prostitution backed by threats and violence. The victims of these heinous crimes have now begun the healing process they so justly deserve,” said HSI Special Agent in Charge Hayes. “HSI agents will continue to work with the Human Trafficking Task Force and other law enforcement agencies to identify victims and to pursue the criminals who prey on them.”
“These victims and other immigrants have the rightful expectation to be protected against those that may take advantage of their vulnerability. These three predators deserve the lengthy sentences they have received for the unforgivable acts they perpetrated against their victims,” said Suffolk County Police Commissioner Webber. “The Suffolk County Police Department will continue to work jointly with federal, state, and local law enforcement partners to curb forced labor, violence, and sex-trafficking within the county.”
FBI Assistant Director in Charge Venizelos stated, “The defendants have received sentences that reflect the gravity and depravity of the crimes they committed. No human being, regardless of immigration status, can be tormented the way the victims of these defendants were without the strongest possible response from our justice system. The horrific physical violence, sexual predation, and emotional torment suffered by the victims cannot be undone, but long prison terms for the defendants mean they will not be in any position to inflict such torment again.”
IRS Special Agent in Charge Weirauch stated, “IRS-Criminal Investigation is grateful that we were able to support our law enforcement partners in this important investigation and prosecution. The victims in this case endured incredible physical, emotional, and financial hardships. We sincerely hope they will be able to heal and move forward.”
The government’s case was prosecuted by Assistant United States Attorneys Demetri M. Jones and Licha Nyiendo and Senior Litigation Counsel John Cotton Richmond of the Department of Justice, Civil Rights Division, Human Trafficking Prosecution Unit.
Defendants:
Antonio Rivera
Age: 38
Residence: Patchogue, New York
John Whaley
Age: 33
Residence: Bellport, New York
Jason Villaman
Age: 34
Residence: Brentwood, New York
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Roy L. Austin, Jr., Deputy Assistant Attorney General, Civil Rights Division; James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; Edward Webber, Commissioner, Suffolk County Police Department; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Toni Weirauch, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, New York.
The government’s evidence at trial established that the defendants and others recruited, hired, and harbored in the United States scores of undocumented Latin American immigrants to work as waitresses in Rivera’s bars. The women had come to the United States from Honduras, Guatelmala, Mexico, and El Salvador. Rivera placed ads and flyers seeking waitresses in Spanish language newspapers and at local businesses frequented by Spanish-speaking immigrants. After the women agreed to work as waitresses, Rivera directed them to solicit patrons to buy them alcoholic beverages, which the women were required to consume, and eventually forced them to engage in sexual acts with the patrons in exchange for money, which Rivera kept. Several witnesses testified that Rivera and others used violence, including rapes and beatings, as well as fraud and threats of deportation to compel the victims to continue to work for him and to prevent them from reporting the illegal activity to police.
One victim testified that she was raped by a bar patron inside Sonidos during business hours in full view of patrons and employees. Another victim testified that on one occasion, she was transported by Villaman to a local hotel, where she was raped while unconscious by a bar patron and awoke to find Villaman watching the assault. A third victim testified that Rivera raped her on multiple occasions and subsequently ordered a security guard to brutally beat her. According to the victim, the security guard drove her to a deserted parking lot after work and, once there, viciously beat her. According to other testimony, Whaley, who assisted Rivera in hiring waitresses, maintaining the bars, and transporting the waitresses to and from the two bars, sexually assaulted one of the victims whom he was supposed to drive home. Testimony also revealed that Villaman acted as a security guard at Sonidos de la Frontera and assisted Rivera in illegal acts against victims, including dumping an unconscious victim on the lawn outside her home after the he and Rivera had assaulted her. Several victims testified that their wages were often taken from them under the guise of being placed into a short-term group savings scheme called the “Society” but were not returned to them as promised, which forced the victims to remain in Rivera’s employ in hopes of recouping their money.
“The defendants lured vulnerable young women to the United States with the promise of a better life and the ability to earn a living to support their families. Once here, the defendants then turned their American dream into a nightmare, subjecting them to unspeakable physical violence and emotional abuse, as well as threats of deportation, in order to line their own pockets. The lengthy sentences imposed today are fair and just punishment for the intolerable crimes that these defendants committed,” stated United States Attorney Lynch. “We will continue our efforts to ensure that the full protection of the law is provided to all our residents.” Ms. Lynch expressed her grateful appreciation to HSI, Suffolk County Police Department, FBI, and the IRS for their assistance in this case.
“These defendants preyed on some of the most vulnerable members of our society—young, undocumented women and girls seeking a better life—and brutally exploited them in a scheme driven by cruelty and greed,” stated Deputy Assistant Attorney General Austin. “Human trafficking is an affront to freedom and individual rights. The sentences handed down today affirm our commitment as a nation to bringing human traffickers to justice and restoring the rights and dignity of human trafficking victims.”
“The men sentenced today lured innocent women with dreams of good paying jobs that turned into a nightmare of forced prostitution backed by threats and violence. The victims of these heinous crimes have now begun the healing process they so justly deserve,” said HSI Special Agent in Charge Hayes. “HSI agents will continue to work with the Human Trafficking Task Force and other law enforcement agencies to identify victims and to pursue the criminals who prey on them.”
“These victims and other immigrants have the rightful expectation to be protected against those that may take advantage of their vulnerability. These three predators deserve the lengthy sentences they have received for the unforgivable acts they perpetrated against their victims,” said Suffolk County Police Commissioner Webber. “The Suffolk County Police Department will continue to work jointly with federal, state, and local law enforcement partners to curb forced labor, violence, and sex-trafficking within the county.”
FBI Assistant Director in Charge Venizelos stated, “The defendants have received sentences that reflect the gravity and depravity of the crimes they committed. No human being, regardless of immigration status, can be tormented the way the victims of these defendants were without the strongest possible response from our justice system. The horrific physical violence, sexual predation, and emotional torment suffered by the victims cannot be undone, but long prison terms for the defendants mean they will not be in any position to inflict such torment again.”
IRS Special Agent in Charge Weirauch stated, “IRS-Criminal Investigation is grateful that we were able to support our law enforcement partners in this important investigation and prosecution. The victims in this case endured incredible physical, emotional, and financial hardships. We sincerely hope they will be able to heal and move forward.”
The government’s case was prosecuted by Assistant United States Attorneys Demetri M. Jones and Licha Nyiendo and Senior Litigation Counsel John Cotton Richmond of the Department of Justice, Civil Rights Division, Human Trafficking Prosecution Unit.
Defendants:
Antonio Rivera
Age: 38
Residence: Patchogue, New York
John Whaley
Age: 33
Residence: Bellport, New York
Jason Villaman
Age: 34
Residence: Brentwood, New York
Wednesday, June 12, 2013
Former Country Club Hills Police Chief, Regina Evans, Charged with Hiding Business Income and $500,000 from State Grant in False Tax Returns
Regina Evans and her husband, Ronald Evans, the former police chief and the former inspector general, respectively, of suburban Country Club Hills, were each charged today with three counts of filing false federal income tax returns for allegedly failing to report all of their income during calendar years 2007-09. They were charged in a felony information filed today in U.S. District Court in Chicago.
Regina Evans’ attorney has authorized the government to disclose that she will be pleading guilty to the tax charges after the government files a request to transfer the case against her to the Central District of Illinois in Springfield for disposition. Regina Evans, 50, who was Country Club Hills police chief from 2009 to 2011, and Ronald Evans, 46, are scheduled to appear in U.S. District Court in Springfield on June 18.
The defendants were charged with failing to report all of their income in 2009, when they allegedly converted to personal income more than $500,000 of a $1.25 million state grant. They also allegedly failed to report all of their income in 2007, 2008, and 2009 from Prime Time Limousine, a Chicago transportation and security services company that they jointly owned and operated.
According to the charging document, Regina Evans founded and ran an organization called We Are Our Brother’s Keeper that, in 2009, received a $1.25 million employment opportunities grant from the Illinois Department of Commerce and Economic Opportunity to provide pre-apprenticeship educational and vocational training for people employed in building trades, such as bricklayers and electricians. The couple allegedly used more than $500,000 for non-grant-related personal purposes, making that money personal income.
On their federal income tax return for 2009, the couple stated that Prime Time’s gross receipts were approximately $150,000, knowing that its gross receipts totaled more than $201,297. They also allegedly stated that they did not have any other income, knowing that they had converted at least $500,000 in grant money.
In 2007, the defendants allegedly filed a false tax return by reporting Prime Time’s gross receipts were approximately $205,290, when the business actually had gross receipts totaling more than $360,649, and they allegedly filed a false 2008 tax return stating Prime Time’s gross receipts were approximately $150,630, when it actually had gross receipts of more than $291,414.
The charges were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division in Chicago. The Chicago Office of the Federal Bureau of Investigation participated in the investigation.
Filing a false federal income tax return carries a maximum penalty of three years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. If convicted, the court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Joel Hammerman.
The public is reminded that an information contains only charges and 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.
Regina Evans’ attorney has authorized the government to disclose that she will be pleading guilty to the tax charges after the government files a request to transfer the case against her to the Central District of Illinois in Springfield for disposition. Regina Evans, 50, who was Country Club Hills police chief from 2009 to 2011, and Ronald Evans, 46, are scheduled to appear in U.S. District Court in Springfield on June 18.
The defendants were charged with failing to report all of their income in 2009, when they allegedly converted to personal income more than $500,000 of a $1.25 million state grant. They also allegedly failed to report all of their income in 2007, 2008, and 2009 from Prime Time Limousine, a Chicago transportation and security services company that they jointly owned and operated.
According to the charging document, Regina Evans founded and ran an organization called We Are Our Brother’s Keeper that, in 2009, received a $1.25 million employment opportunities grant from the Illinois Department of Commerce and Economic Opportunity to provide pre-apprenticeship educational and vocational training for people employed in building trades, such as bricklayers and electricians. The couple allegedly used more than $500,000 for non-grant-related personal purposes, making that money personal income.
On their federal income tax return for 2009, the couple stated that Prime Time’s gross receipts were approximately $150,000, knowing that its gross receipts totaled more than $201,297. They also allegedly stated that they did not have any other income, knowing that they had converted at least $500,000 in grant money.
In 2007, the defendants allegedly filed a false tax return by reporting Prime Time’s gross receipts were approximately $205,290, when the business actually had gross receipts totaling more than $360,649, and they allegedly filed a false 2008 tax return stating Prime Time’s gross receipts were approximately $150,630, when it actually had gross receipts of more than $291,414.
The charges were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division in Chicago. The Chicago Office of the Federal Bureau of Investigation participated in the investigation.
Filing a false federal income tax return carries a maximum penalty of three years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. If convicted, the court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Joel Hammerman.
The public is reminded that an information contains only charges and 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.
Tuesday, June 11, 2013
Troubled Teen Takes School Hostage at Gunpoint in Michael Hassan's "Crash and Burn"
Crash and Burn is a powerful, emotional knockout by author Michael Hassan about the complicated relationship between a profoundly-troubled teenager who takes his school hostage at gunpoint and the profoundly untroubled student who stops him in a novel that Daniel Kraus of Booklist has called "Sprawling, messy, vulgar, sexy, irreverent, violent, bighearted, harrowing" and "quite simply, a great American novel."
On April 21, 2008, Steven "Crash" Crashinsky saved over a thousand people when he stopped his classmate David Burnett from taking their high school hostage armed with assault weapons and high powered explosives. You likely already know what came after for Crash: the nationwide notoriety, the college recruitment, and, of course, the book deal. What you might not know is what came before: a story of two teens whose lives have been inextricably linked since grade school, who were destined, some say, to meet that day in the teachers' lounge of Meadows High. And what you definitely don't know are the words that Burn whispered to Crash right as the siege was ending, a secret that Crash has never revealed.
Until now.
Michael Hassan's shattering novel is a tale of first love and first hate, the story of two high school seniors and the morning that changed their lives forever. It's a portrait of the modern American teenage male, in all his brash, disillusioned, oversexed, schizophrenic, drunk, nihilistic, hopeful, ADD-diagnosed glory. According to Liz Kossnar of Bookreporter.com, "Dealing with the expectations of heroism, ADD, broken families and just getting by during adolescence, this story is not only timely but a necessary read."
And in her review, Karen Coats called Crash and Burn "a must-read for teens and adults alike who want to understand the lack of empathy that permeates contemporary culture." A powerful summer read for teens and adults alike. Find out why teenagers across the country are hiding it from their parents.
On April 21, 2008, Steven "Crash" Crashinsky saved over a thousand people when he stopped his classmate David Burnett from taking their high school hostage armed with assault weapons and high powered explosives. You likely already know what came after for Crash: the nationwide notoriety, the college recruitment, and, of course, the book deal. What you might not know is what came before: a story of two teens whose lives have been inextricably linked since grade school, who were destined, some say, to meet that day in the teachers' lounge of Meadows High. And what you definitely don't know are the words that Burn whispered to Crash right as the siege was ending, a secret that Crash has never revealed.
Until now.
Michael Hassan's shattering novel is a tale of first love and first hate, the story of two high school seniors and the morning that changed their lives forever. It's a portrait of the modern American teenage male, in all his brash, disillusioned, oversexed, schizophrenic, drunk, nihilistic, hopeful, ADD-diagnosed glory. According to Liz Kossnar of Bookreporter.com, "Dealing with the expectations of heroism, ADD, broken families and just getting by during adolescence, this story is not only timely but a necessary read."
And in her review, Karen Coats called Crash and Burn "a must-read for teens and adults alike who want to understand the lack of empathy that permeates contemporary culture." A powerful summer read for teens and adults alike. Find out why teenagers across the country are hiding it from their parents.
Monday, June 10, 2013
Vienna Pub Names Panini Sammiches After Mafia Bosses and Victims of Mobster Slayings #PoorTaste
Italy has complained to Austrian authorities about a Vienna pub selling Panini named after Mafia bosses as well as other sandwiches that make light of Italians slain by Sicilian mobsters.
The foreign ministry said on Saturday that Italy's charge d'affaires in Vienna 'intervened to sensitise' local authorities, including the city of Vienna and the finance ministry.
Italy said news of the menu with its 'poor taste' upset Italians in Vienna and public opinion in Italy.
Naming a sandwich for Giovanni Falcone, a prosecutor killed by a Mafia bombing in 1992 and saying on the menu Falcone was 'grilled' like a wurstel highly offended his memory and is 'unacceptable,' the ministry said.
The foreign ministry said on Saturday that Italy's charge d'affaires in Vienna 'intervened to sensitise' local authorities, including the city of Vienna and the finance ministry.
Italy said news of the menu with its 'poor taste' upset Italians in Vienna and public opinion in Italy.
Naming a sandwich for Giovanni Falcone, a prosecutor killed by a Mafia bombing in 1992 and saying on the menu Falcone was 'grilled' like a wurstel highly offended his memory and is 'unacceptable,' the ministry said.
Was There Another Bomber at Oklahoma City?
On June 13th, Journalist Gerald Posner discusses his new book, The Third Man: Was there another bomber at Oklahoma City?, and his writing career. Also, Margaret McClain, Special Correspondent, reports on the Bulger trial.
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.
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 05, 2013
New Book Chronicles the Fascinating Story of Gangsters of Boston
This coming June 6
, Boston will experience, no doubt, what will be organized crime's “Trial of the Century” when the infamous Whitey Bulger stands trial for murder. But before Whitey Bulger, Boston had such intriguing gangsters as Adam Worth, Daddy Black and Tony Pino.
Now, with the timely publication of Gangsters of Boston, we have the first comprehensive account of three centuries of thug life in the city where America began. Through court records, interviews, newly uncovered police documents and other information sources, Gangsters of Boston tells the incredible story of the city’s underworld. In chilling new detail, veteran Boston journalist George Hassett reveals the legendary crime stories of Boston – from Prohibition to the Mafia to the Irish Gang War and to the infamous Whitey Bulger.
The forgotten chapters of Boston gang history are also covered – from the role of street gangs in the American Revolution to Chinatown’s infamous Tong Wars to the murder of numbers king Daddy Black. It’s all here, every neighbourhood, every era and every gangster. This is a brutal Boston of warring gangs, hit men and paranoid mob bosses. Dive bars, fugitive hideouts and mob dens populate this world and Gangsters of Boston is a first class tour.
With more than fifty crisply told tales of thieves, kingpins, vicious street gangs and corrupt cops, be prepared to see the Athens of America in a new light. Boston gangsters featured include Detroit Red (Malcolm X), The Winter Hill Gang, Joe Kennedy, King Solomon, Gennaro Angiulo, Larry Zanino, The Flemmi Brothers, Campbell Brothers, Darryl Whiting AKA God, Franklin Hill Giants, Tony Johnson, Corbet Street Crew, and, of course, Whitey Bulger.
Boston, Massachusetts-based George Hassett has worked as a newspaper reporter and editor in the Boston area for publications such as The Boston Phoenix, Somerville News and Cambridge Chronicle. His crime reporting has also appeared in national magazines such as FEDS and ASIS and he has been interviewed as an expert on Boston organized crime for television and radio specials.
, Boston will experience, no doubt, what will be organized crime's “Trial of the Century” when the infamous Whitey Bulger stands trial for murder. But before Whitey Bulger, Boston had such intriguing gangsters as Adam Worth, Daddy Black and Tony Pino.Now, with the timely publication of Gangsters of Boston, we have the first comprehensive account of three centuries of thug life in the city where America began. Through court records, interviews, newly uncovered police documents and other information sources, Gangsters of Boston tells the incredible story of the city’s underworld. In chilling new detail, veteran Boston journalist George Hassett reveals the legendary crime stories of Boston – from Prohibition to the Mafia to the Irish Gang War and to the infamous Whitey Bulger.
The forgotten chapters of Boston gang history are also covered – from the role of street gangs in the American Revolution to Chinatown’s infamous Tong Wars to the murder of numbers king Daddy Black. It’s all here, every neighbourhood, every era and every gangster. This is a brutal Boston of warring gangs, hit men and paranoid mob bosses. Dive bars, fugitive hideouts and mob dens populate this world and Gangsters of Boston is a first class tour.
With more than fifty crisply told tales of thieves, kingpins, vicious street gangs and corrupt cops, be prepared to see the Athens of America in a new light. Boston gangsters featured include Detroit Red (Malcolm X), The Winter Hill Gang, Joe Kennedy, King Solomon, Gennaro Angiulo, Larry Zanino, The Flemmi Brothers, Campbell Brothers, Darryl Whiting AKA God, Franklin Hill Giants, Tony Johnson, Corbet Street Crew, and, of course, Whitey Bulger.
Boston, Massachusetts-based George Hassett has worked as a newspaper reporter and editor in the Boston area for publications such as The Boston Phoenix, Somerville News and Cambridge Chronicle. His crime reporting has also appeared in national magazines such as FEDS and ASIS and he has been interviewed as an expert on Boston organized crime for television and radio specials.
Monday, June 03, 2013
The Rise and Disappearance of Kingpin Frank Matthews with Whitey Bulger Trial Updates on Crime Beat Radio
On June 6th, Ron Chepesiuk, Dave O’Flaherty and William Callahan will discuss Chepesiuk’s new biography, Black Caesar: The Rise and Disappearance of Frank Matthews, Kingpin. Margaret McClain, Special Correspondent, will also give the first of her continuing reports on the Whitey Bulger trial in Boston.
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.
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.
Tuesday, May 28, 2013
Whitey Bulger is Discussed on This Week's Crime Beat Radio
On May 30th, Dick Lehr and Gerald O’Neill discuss their book, Whitey: The Life of America’s Most Notorious Mob Boss.
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.
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.
Friday, May 24, 2013
Guilty Pleas by Los Zetas Cartel in Ambush Murder and Attempted Murder of Immigration and Customs Enforcement (ICE) Special Agents
Julian Zapata Espinoza, also known as “Piolin,” 32, pleaded guilty yesterday to the murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico. The court also unsealed the guilty pleas of three other defendants on related murder, attempted murder, racketeering, and accessory charges.
The guilty pleas, in the U.S. District Court for the District of Columbia, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the District of Columbia Ronald C. Machen, Jr.; Assistant Director Ronald T. Hosko of the FBI Criminal Investigative Division; and ICE Director John Morton.
As set forth in court filings, on February 15, 2011, Espinoza, a commander in Los Zetas Cartel, a heavily armed Mexican narco-trafficking cartel and transnational criminal organization, attempted to hijack Special Agent Zapata’s and Special Agent Avila’s armored government vehicle as the agents were driving on Highway 57 in San Luis Potosi. Two armed Zetas hit squads, or “estacas,” forced the agents off the road, and surrounded their vehicle. Espinoza, the leader of the attack, ordered the agents to exit their vehicle. When the agents refused and attempted to identify themselves as American diplomats from the U.S. Embassy, the hit squad members fired weapons near and into the vehicle, striking both agents. Estaca members continued to fire at the vehicle as the agents attempted to escape by driving away. Special Agent Zapata died as a result of the gunshot wounds he suffered during the attack, and Special Agent Avila was seriously injured.
On April 19, 2011, Espinoza was indicted by a federal grand jury in the District of Columbia on multiple counts pertaining to the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Avila and, on December 20, 2011, was extradited from Mexico to the United States. The defendant entered a guilty plea before Chief Judge Royce C. Lamberth to the murder of Special Agent Zapata, an officer and employee of the United States, and the attempted murder of Special Agent Avila, an officer and employee of the United States.
In addition to the announcing the guilty plea of Espinoza, prosecutors also announced related guilty pleas by three other defendants. Ruben Dario Venegas Rivera, also known as “Catracho,” 25, pleaded guilty on August 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, also known as “Cacho,” 30, pleaded guilty on January 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, also known as “Dalmata,” 38, pleaded guilty on January 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera, and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the February 15, 2011 ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the February 15 attack.
All four defendants face a maximum sentence of life in prison. No sentencing date has been set for the defendants.
“Special Agent Zapata died for his country in a senseless and brutal attack, and Special Agent Avila was grievously wounded in the same ambush by members of Los Zetas Cartel,” said Acting Assistant Attorney General Raman. “Both men are American heroes who dedicated themselves to protecting the United States, only to be attacked by vicious thugs. I hope that today’s announcement of guilty pleas by the cartel members directly responsible for the attack brings some measure of justice to the victims and their families. A team of dedicated prosecutors and investigators has worked day and night to identify and hold these defendants accountable. Our work is far from over, and we will continue to devote our full resources and work with our law enforcement partners here and abroad to investigate and prosecute those responsible.”
“The deadly ambush of two highly dedicated and courageous American law enforcement officers by the Los Zetas drug cartel demanded an intense, dedicated, and forceful response,” said U.S. Attorney Machen. “The message to any criminal who dares to commit an act of violence against a U.S. law enforcement officer serving in a foreign land is unmistakable—if you commit such a heinous crime, we will not forget, we will not falter, and we will not rest until you are brought to justice. Our work in this critical case will continue until all of those who participated in the murder of Special Agent Zapata and attempted murder of Special Agent Avila are held accountable.”
“With the assistance of our law enforcement partners, assailants responsible for murdering Agent Zapata and wounding Agent Avila have been brought to justice,” said FBI Assistant Director Hosko. “While there is nothing we can do to change what happened that fateful day in Mexico, let it be known that an attack against any federal agent serving his or her country is an attack on all federal agents and, as such, remains a priority for the FBI until those responsible are brought to justice.”
“Today’s announcement is a very important milestone in the effort to see that justice is served in the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Victor Avila,” said ICE Director Morton. “Both men were trying to make the world a safer place, and today’s result is a very welcome step to honor their service and sacrifice.”
This case is being investigated by the FBI, with substantial assistance from ICE; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Customs and Border Protection; the Diplomatic Security Service; and the U.S. Marshals Service.
The case is being prosecuted by the Organized Crime and Gang Section and the Narcotic and Dangerous Drug Section of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the District of Columbia. The Office of International Affairs of the Justice Department’s Criminal Division provided substantial assistance.
The guilty pleas, in the U.S. District Court for the District of Columbia, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the District of Columbia Ronald C. Machen, Jr.; Assistant Director Ronald T. Hosko of the FBI Criminal Investigative Division; and ICE Director John Morton.
As set forth in court filings, on February 15, 2011, Espinoza, a commander in Los Zetas Cartel, a heavily armed Mexican narco-trafficking cartel and transnational criminal organization, attempted to hijack Special Agent Zapata’s and Special Agent Avila’s armored government vehicle as the agents were driving on Highway 57 in San Luis Potosi. Two armed Zetas hit squads, or “estacas,” forced the agents off the road, and surrounded their vehicle. Espinoza, the leader of the attack, ordered the agents to exit their vehicle. When the agents refused and attempted to identify themselves as American diplomats from the U.S. Embassy, the hit squad members fired weapons near and into the vehicle, striking both agents. Estaca members continued to fire at the vehicle as the agents attempted to escape by driving away. Special Agent Zapata died as a result of the gunshot wounds he suffered during the attack, and Special Agent Avila was seriously injured.
On April 19, 2011, Espinoza was indicted by a federal grand jury in the District of Columbia on multiple counts pertaining to the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Avila and, on December 20, 2011, was extradited from Mexico to the United States. The defendant entered a guilty plea before Chief Judge Royce C. Lamberth to the murder of Special Agent Zapata, an officer and employee of the United States, and the attempted murder of Special Agent Avila, an officer and employee of the United States.
In addition to the announcing the guilty plea of Espinoza, prosecutors also announced related guilty pleas by three other defendants. Ruben Dario Venegas Rivera, also known as “Catracho,” 25, pleaded guilty on August 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, also known as “Cacho,” 30, pleaded guilty on January 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, also known as “Dalmata,” 38, pleaded guilty on January 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera, and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the February 15, 2011 ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the February 15 attack.
All four defendants face a maximum sentence of life in prison. No sentencing date has been set for the defendants.
“Special Agent Zapata died for his country in a senseless and brutal attack, and Special Agent Avila was grievously wounded in the same ambush by members of Los Zetas Cartel,” said Acting Assistant Attorney General Raman. “Both men are American heroes who dedicated themselves to protecting the United States, only to be attacked by vicious thugs. I hope that today’s announcement of guilty pleas by the cartel members directly responsible for the attack brings some measure of justice to the victims and their families. A team of dedicated prosecutors and investigators has worked day and night to identify and hold these defendants accountable. Our work is far from over, and we will continue to devote our full resources and work with our law enforcement partners here and abroad to investigate and prosecute those responsible.”
“The deadly ambush of two highly dedicated and courageous American law enforcement officers by the Los Zetas drug cartel demanded an intense, dedicated, and forceful response,” said U.S. Attorney Machen. “The message to any criminal who dares to commit an act of violence against a U.S. law enforcement officer serving in a foreign land is unmistakable—if you commit such a heinous crime, we will not forget, we will not falter, and we will not rest until you are brought to justice. Our work in this critical case will continue until all of those who participated in the murder of Special Agent Zapata and attempted murder of Special Agent Avila are held accountable.”
“With the assistance of our law enforcement partners, assailants responsible for murdering Agent Zapata and wounding Agent Avila have been brought to justice,” said FBI Assistant Director Hosko. “While there is nothing we can do to change what happened that fateful day in Mexico, let it be known that an attack against any federal agent serving his or her country is an attack on all federal agents and, as such, remains a priority for the FBI until those responsible are brought to justice.”
“Today’s announcement is a very important milestone in the effort to see that justice is served in the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Victor Avila,” said ICE Director Morton. “Both men were trying to make the world a safer place, and today’s result is a very welcome step to honor their service and sacrifice.”
This case is being investigated by the FBI, with substantial assistance from ICE; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Customs and Border Protection; the Diplomatic Security Service; and the U.S. Marshals Service.
The case is being prosecuted by the Organized Crime and Gang Section and the Narcotic and Dangerous Drug Section of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the District of Columbia. The Office of International Affairs of the Justice Department’s Criminal Division provided substantial assistance.
Monday, May 20, 2013
Legendary FBI Profiler John Douglas on Crime Beat Radio
On May 23rd, John Douglas and Mark Olshaker discuss Douglas’ profiler career and their book Law and Disorder: The Legendary FBI Profiler’s Relentless Pursuit of Justice.
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.
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.
Friday, May 17, 2013
Charges Filed in Federal Sweep Targeting Chicago's #OperationHeroinHotline
Seven men and one woman are facing federal drug charges in connection with an investigation dubbed Operation Heroin Hotline that targeted heroin trafficking on Chicago’s near west side. The charges and the arrests of five of the defendants were announced by Cory B. Nelson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation (FBI); Gary S. Shapiro, United States Attorney for the Northern District of Illinois; and Garry F. McCarthy, Superintendent of the Chicago Police Department (CPD).
The five defendants taken into custody were arrested without incident at various locations in the Chicago area by members of the FBI’s Safe Streets Gang Task Force and CPD officers. One defendant was already in state custody on unrelated charges. Two defendants were not located yesterday and remain at large.
The charges against seven of the defendants were contained in three indictments returned by a federal grand jury earlier this week and unsealed following yesterday’s arrests. Two defendants were charged in separate indictments with one count each of distribution of a controlled substance, a felony offense. Five other defendants were named in a nine-count indictment that included charges of conspiracy to distribute a controlled substance and distribution of a controlled substance.
One defendant was charged in a criminal complaint filed today in U.S. District Court with one count of conspiracy to distribute a controlled substance.
According to court documents previously filed in connection with the case, the defendants allegedly worked together to provide customers with heroin, usually in capsule form, in exchange for cash. The transactions involved customers calling a specific telephone number to place an order for heroin. The customers were then directed to a series of locations in subsequent calls placed to the same telephone number until ultimately meeting face-to-face with an individual who would then provide the heroin to the customers.
The defendants charged by indictment are identified as PIERRE HENDERSON, 36, of 1254 South Washtenaw; his brother ERIC HENDERSON, 34, of 6432 19th Street, Berwyn; ALLEN MCBEATH, 32, of 1326 North Lockwood; ANTHONY BROWN, 27, of 121 North Independence, Rockford; SHRONDA MCDANIEL, 30, of 6432 19th Street; JIMMIE SESSONS, 28, of 1410 South Karlov; and HARVEY DAVIS, 25, of 856 North Tripp. HOWARD WALKER, 27, of 8406 South Marshfield, was charged by complaint.
Two defendants, Anthony Brown and Jimmie Sessons, avoided yesterday today and are now the subject of a nationwide manhunt. One other defendant, Davis, was already in custody on unrelated state charges.
The investigation leading to the filing of the charges and arrests announced is part of an ongoing and coordinated effort by local, state, and federal authorities to identify and dismantle the many highly organized drug trafficking organizations operating in and around the Chicago metropolitan area. Operation Heroin Hotline began in 2009 and employed the extensive use of sophisticated physical surveillance techniques as well as the controlled purchase of heroin by undercover officers. The investigation to date has resulted in the seizure of approximately 750 grams of heroin, $21,000, and one vehicle.
Defendants Pierre Henderson, Eric Henderson, McBeath, and McDaniel appeared before U.S. Magistrate Judge Jeffrey T. Gilbert. McDaniel was released on bond, while the others were ordered held pending their next court appearances, which are scheduled to take place next week. Defendant Walker appeared at 3:00 p.m. yesterday before U.S. Magistrate Judge Susan E. Cox.
If convicted of the charges against him, defendant Davis faces a maximum penalty of 20 years in prison. The other defendants each face a mandatory minimum sentence of five years and a maximum sentence of 40 years in prison and a maximum fine of $5 million.
The Chicago FBI’s Safe Streets Gangs Joint Task Force is composed of FBI special agents and officers from the Chicago Police Department.
Mr. Nelson thanked the River Forest and Forest Park Police Departments for their significant involvement throughout the course of the investigation.
The public is reminded that indictments and complaints are not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.
Thursday, May 16, 2013
Dramatic Drop in Gun Violence Numbers
Gun Homicides in 2011: 11,101
Nonfatal Gun Crimes in 2011: 467,300
Data from the Bureau of Justice Statistics
- 39% Decrease from 1993
Nonfatal Gun Crimes in 2011: 467,300
- 69% Decrease from 1993
Data from the Bureau of Justice Statistics
Wednesday, May 15, 2013
Preview of "The War in Chicago" Upcoming This Saturday from 48 Hours on CBS
An honor student shot dead, an innocent victim of a gang war. An investigation into drugs, guns, gangs and the battle for Chicago. A "48 Hours" special, Saturday, May 18 at 10 p.m. ET/PT on CBS.
Leon Benzer Indicted for Income Tax Evasion
A federal grand jury in Nevada yesterday returned an indictment against a former construction company owner for evading federal income and employment taxes, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber, FBI Acting Special Agent in Charge William C. Woerner of the Las Vegas Field Office, and Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department.
Leon Benzer, 46, of Las Vegas, was charged in U.S. District Court in the District of Nevada with two counts of tax evasion.
In January 2013, Benzer was indicted in a related case on charges of wire fraud and conspiracy to commit wire and mail fraud. According to court documents, from approximately August 2003 through February 2009, Benzer orchestrated a scheme to direct construction defect litigation and repairs at condominium complexes to a conspiring law firm and Benzer’s construction company, Silver Lining Construction (SLC). As a result of this scheme, the indictment alleges that SLC was awarded a contract worth over $7 million for work at the Vistana Homeowner’s Association (Vistana HOA) in Las Vegas. The case is pending.
According to the indictment, in August 2006, Benzer filed five years’ worth of personal tax forms and business tax returns without any payments accompanying those returns. As of April 2007, Benzer had allegedly failed to pay his personal tax liability of approximately $459,000 and SLC’s employment tax liability of approximately $687,000 and unemployment tax liability of approximately $18,000. In May 2007, the IRS issued a notice of intent to file a levy; Benzer subsequently appealed this process and indicated that he wanted to enter into an “offer-in-compromise” with the IRS to pay a portion of what was owed in full satisfaction of all his tax liabilities. According to the indictment, during this offer-in-compromise process, the IRS requested detailed financial information from Benzer.
Between March 2005 and January 2008, the indictment alleges that Benzer and SLC received over $7 million from the Vistana HOA contract, including a wire transfer of over $1 million on September 21, 2007, to a personal U.S. Bank account that Benzer opened in August 2007. The indictment alleges that when Benzer filed certain IRS forms related to the offer-in-compromise process on September 25, 2007, he failed to disclose this personal U.S. Bank account or the assets contained in it.
The maximum prison sentence for each count of tax evasion is five years in prison and a maximum fine of $100,000.
The charges and allegations against the indicted defendant are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The case is being prosecuted by Senior Deputy Chief Kathleen McGovern, Deputy Chief Charles La Bella, and Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section. The case is being investigated by IRS-CI, the FBI, and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section.
Yesterday’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Leon Benzer, 46, of Las Vegas, was charged in U.S. District Court in the District of Nevada with two counts of tax evasion.
In January 2013, Benzer was indicted in a related case on charges of wire fraud and conspiracy to commit wire and mail fraud. According to court documents, from approximately August 2003 through February 2009, Benzer orchestrated a scheme to direct construction defect litigation and repairs at condominium complexes to a conspiring law firm and Benzer’s construction company, Silver Lining Construction (SLC). As a result of this scheme, the indictment alleges that SLC was awarded a contract worth over $7 million for work at the Vistana Homeowner’s Association (Vistana HOA) in Las Vegas. The case is pending.
According to the indictment, in August 2006, Benzer filed five years’ worth of personal tax forms and business tax returns without any payments accompanying those returns. As of April 2007, Benzer had allegedly failed to pay his personal tax liability of approximately $459,000 and SLC’s employment tax liability of approximately $687,000 and unemployment tax liability of approximately $18,000. In May 2007, the IRS issued a notice of intent to file a levy; Benzer subsequently appealed this process and indicated that he wanted to enter into an “offer-in-compromise” with the IRS to pay a portion of what was owed in full satisfaction of all his tax liabilities. According to the indictment, during this offer-in-compromise process, the IRS requested detailed financial information from Benzer.
Between March 2005 and January 2008, the indictment alleges that Benzer and SLC received over $7 million from the Vistana HOA contract, including a wire transfer of over $1 million on September 21, 2007, to a personal U.S. Bank account that Benzer opened in August 2007. The indictment alleges that when Benzer filed certain IRS forms related to the offer-in-compromise process on September 25, 2007, he failed to disclose this personal U.S. Bank account or the assets contained in it.
The maximum prison sentence for each count of tax evasion is five years in prison and a maximum fine of $100,000.
The charges and allegations against the indicted defendant are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The case is being prosecuted by Senior Deputy Chief Kathleen McGovern, Deputy Chief Charles La Bella, and Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section. The case is being investigated by IRS-CI, the FBI, and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section.
Yesterday’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Tuesday, May 14, 2013
Clare Thomas Anderson Pleads Guilty to $1 Million International Fraud Scheme
A Cary, Illinois business owner pleaded guilty to wire fraud yesterday in federal court before U.S. District Judge Frederick J. Kapala. Clare Thomas Anderson, 44, who owned and operated multiple businesses in Cary, Illinois, and Florida, admitted that between April 2009 and January 2013, he schemed to defraud more than $1 million from more than 10 victims that did business with the companies he operated.
According to the written plea agreement, the businesses Anderson owned and operated were Certifibre LLC; Anderson International Global LLC, which had an assumed name of Worldwide Paper Company Inc.; Anlerican Smplus Supply; Southernmost Exports LLC; Southernmost Holdings LTD; and Sea Consulting LLC. Through these businesses, Anderson contracted to sell wood pulp and other raw materials to manufacturers brokers, and suppliers, which were usually located in foreign countries.
Anderson obtained payments from his customers before the shipments arrived at their destinations. Often, the customers obtained Letters of Credit from their banks in order to pay for the shipments in advance. Anderson admitted that he caused payments to be disbursed under these Letters of Credit to bank accounts he controlled by creating and presenting fraudulent Bills of Lading, Certificates of Origin, and packing lists. These documents falsely represented that the agreed upon quantity and quality of materials had been shipped.
Anderson admitted that instead of shipping the wood pulp or other raw materials he had agreed to sell, on various occasions he shipped worthless scrap materials to his foreign customers. When the customers called him to complain about the worthless scrap materials they had received, Anderson falsely told them that the scrap materials were intended for another customer in a different country.
Anderson further admitted that on some occasions, instead of shipping the agreed upon weights and volume of wood pulp or other raw materials, he instead shipped substantially smaller amounts of wood pulp or other raw materials. When the customers called and complained about the short shipments, Anderson falsely told them that short shipments were caused by clerical errors.
Anderson acknowledged that, in order to maximize the profits from his scheme to defraud, he often failed to pay for the materials he obtained and for the freight shipping charges. Anderson also admitted that he spent the funds that his customers sent to him on his own personal expenses.
As he acknowledged in the plea agreement, on a few occasions, Anderson refunded some money to his victims in order to avoid detection of his scheme. Anderson paid these refunds only after the victims contacted, or threatened to contact, federal law enforcement officials. Anderson admitted that he obtained the funds used to pay these refunds by defrauding additional customers.
Anderson is scheduled to be sentenced on August 22, 2013, at 2:30 p.m. Wire fraud carries a maximum penalty of up to 20 years in prison, a term of up to three years of supervised release following imprisonment, a $250,000 fine, and mandatory restitution. The court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Scott A. Verseman.
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