A Bolingbrook man was indicted on federal charges alleging that he violated U.S. export laws by attempting to ship a thermal imaging camera from his company in Schaumburg to a company in Pakistan without obtaining a license from the U.S. Commerce Department.
The case involves a FLIR HRC-U thermal imaging camera, which was on a Commerce Department list of controlled export goods for reasons of national security and regional stability. As a controlled material, a license was required from the Commerce Department’s Bureau of Industry and Security to export the camera to certain countries, including Pakistan.
The defendant, Bilal Ahmed, 33, was charged with one count of violating the International Emergency Economic Powers Act (IEEPA) and one count of attempted smuggling of goods in violation of U.S. export regulations in a two-count indictment returned by a federal grand jury yesterday. Ahmed was initially charged in a criminal complaint and arrested on March 14, and he was subsequently released on a $100,000 secured bond. No date has been set yet for Ahmed to be arraigned in U.S. District Court in Chicago.
According to the complaint affidavit and the indictment, Ahmed was the owner, president, and registered agent of Trexim Corp., which used the address of a virtual office in Schaumburg. Between November 2013 and February of this year, Ahmed corresponded via e-mail with a company in California and negotiated the purchase of a FLIR HRC-U camera for approximately $102,000, which he paid with two checks in February. Ahmed took delivery of the camera on February 27 at a commercial shipping store in Bolingbrook.
On March 7, Ahmed allegedly took the camera, packaged in two boxes, to a different commercial shipper located in Elk Grove Village and left the packages to be shipped to a company in Pakistan. The waybill included a handwritten note containing the letters “NLR,” meaning “no license required.” A search of U.S. State and Commerce Department databases showed there were no licenses applied for or obtained by Ahmed, Trexim, or any other related individual or company names for the export of a FLIR HRC-U camera from the U.S. to Pakistan, the indictment alleges.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Ronald B. Orzel, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office. The Justice Department’s National Security Division is providing assistance in the case.
Violating IEEPA carries a maximum penalty of 20 years in prison and a $1 million fine, while attempted smuggling of goods carries a maximum penalty of 10 years in prison and a $250,000 fine.
Sunday, May 11, 2014
Friday, May 09, 2014
New Book Chronicles the Provocative Odyssey of Jack Reed, Adventurer, Drug Smuggler and Pilot Extraordinaire
Strategic Media Books announced the publication of Buccaneer: The Provocative Odyssey of Jack Reed, Adventurer, Drug Smuggler and Pilot Extraordinaire. Buccaneer is the exciting, true crime tale of the life and times of Jack Carlton Reed, an All-American boy turned drug smuggler, turned Robinson Crusoe, and then infamous prison inmate. 
For the first time, Jack Reed discloses his extraordinary tabooed journey as a high flying international cocaine smuggler and personal pilot for Carlos Lehder, partner to Pablo Escobar, the drug kingpin founder of the Medellin Cartel.
Reed flew drug runs for Lehder’s cocaine transport empire based at Norman's Cay, a tiny out island in the Bahamas. Having gained notoriety in the late 70s as a staging point for drug smuggling, Norman's Cay was immortalized in Blow, a motion picture starring Johnny Depp. Reed lands in court as Lehder’s co-defendant in the longest running drug trial in U.S. history. Despite the tempting opportunity offered by the prosecution, Reed refused to snitch on Lehder. As Reed explained, “I’m no G*d d***n rat! I’m a player. I’m a pirate. I’m a hedonist; and one hell of good smuggler, but I’m no rat!
The self-proclaimed hedonist co-authored this book with pilot/journalist MayCay Beeler, who would not only help record his life story, but would become a character in Reed's twist of fate ending. The book is the stunning account of Reed’s erotic and provocative life with an unforeseen storybook ending that will make readers believe in destiny.
For the first time, Jack Reed discloses his extraordinary tabooed journey as a high flying international cocaine smuggler and personal pilot for Carlos Lehder, partner to Pablo Escobar, the drug kingpin founder of the Medellin Cartel. Reed flew drug runs for Lehder’s cocaine transport empire based at Norman's Cay, a tiny out island in the Bahamas. Having gained notoriety in the late 70s as a staging point for drug smuggling, Norman's Cay was immortalized in Blow, a motion picture starring Johnny Depp. Reed lands in court as Lehder’s co-defendant in the longest running drug trial in U.S. history. Despite the tempting opportunity offered by the prosecution, Reed refused to snitch on Lehder. As Reed explained, “I’m no G*d d***n rat! I’m a player. I’m a pirate. I’m a hedonist; and one hell of good smuggler, but I’m no rat!
The self-proclaimed hedonist co-authored this book with pilot/journalist MayCay Beeler, who would not only help record his life story, but would become a character in Reed's twist of fate ending. The book is the stunning account of Reed’s erotic and provocative life with an unforeseen storybook ending that will make readers believe in destiny.
Thursday, May 08, 2014
Elliot Goldenberg, Author of The Spy of David (the Jonathan Pollard Spy Case) is Tonight's Guest on Crime Beat Radio
Tonight, 
Elliot Goldenberg, author of Spy of David: The Strange Case of Jonathan Pollard and the Two Decade Battle to Win his Freedom, appears on on Crime Beat Radio.
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.
Elliot Goldenberg, author of Spy of David: The Strange Case of Jonathan Pollard and the Two Decade Battle to Win his Freedom, appears on on Crime Beat Radio.
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.
Former Sheriff’s Deputy Pleads Guilty to Conspiring to Unlawfully Detain and Take Money from Motorists
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Georgia announced that Jason Stacks, a former Lowndes County Sheriff’s Office (LCSO) Deputy, pleaded guilty to conspiring to use his law enforcement authority to unlawfully detain and take money from motorists.
In connection with his plea, Stacks admitted that he conspired with two civilians to subject Hispanic motorists to unlawful traffic stops so that the conspirators could demand the motorists pay money in order to avoid arrest and/or deportation. On Aug. 16, 2013, Stacks, while acting as a LCSO Deputy, unlawfully detained at least four motorists. One of the motorists, identified in the plea documents by the initials T.C., was unlawfully detained by Stacks and then approached by Stacks’s two Spanish-speaking co-conspirators, who explained to T.C. that he would be sent to jail or deported if he did not pay $500. When T.C. responded that he did not have $500 in his car, the co-conspirators drove T.C. to his residence and took $300 in cash from him. Stacks and the two co-conspirators divided the $300 among them.
“Mr. Stacks admitted that he conspired to use his badge to unlawfully detain and take money from motorists,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who seek to profit from the violation of civil rights.”
“Today’s guilty plea is another example of the zero tolerance the Department of Justice has for law enforcement officers who violate individuals’ civil rights,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia.
In connection with his plea, Stacks admitted that he conspired with two civilians to subject Hispanic motorists to unlawful traffic stops so that the conspirators could demand the motorists pay money in order to avoid arrest and/or deportation. On Aug. 16, 2013, Stacks, while acting as a LCSO Deputy, unlawfully detained at least four motorists. One of the motorists, identified in the plea documents by the initials T.C., was unlawfully detained by Stacks and then approached by Stacks’s two Spanish-speaking co-conspirators, who explained to T.C. that he would be sent to jail or deported if he did not pay $500. When T.C. responded that he did not have $500 in his car, the co-conspirators drove T.C. to his residence and took $300 in cash from him. Stacks and the two co-conspirators divided the $300 among them.
“Mr. Stacks admitted that he conspired to use his badge to unlawfully detain and take money from motorists,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who seek to profit from the violation of civil rights.”
“Today’s guilty plea is another example of the zero tolerance the Department of Justice has for law enforcement officers who violate individuals’ civil rights,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Roberto Alvarado, Former Fugitive of More Than 23 Years, Sentenced to More Than Six Years in Prison for Drug Trafficking
A former Freeport, Illinois man was sentenced in federal court by U.S. District Judge Frederick J. Kapala on a federal drug trafficking charge. The defendant, Roberto Alvarado, 61, was sentenced to 78 months in federal prison, to be followed by five years of supervised release. Judge Kapala ordered that at the end of his prison tenn, Alvarado, a citizen of Mexico, surrender to officials with Immigration and Customs Enforcement for deportation.
Alvarado had been arrested on December 1, 1989, on a drug trafficking charge by FBI special agents. On December 15, 1989, he was released on a $20,000 bond pending trial. However, Alvarado failed to appear for a court appearance on Sept 18, 1990, and fled from Illinois. His bond was forfeited and the assets he had posted for bond were turned over to the United States. An arrest warrant was also issued for him. On June 28, 2013, Alvarado was a passenger in a car that was stopped in Montana by a State Police trooper for speeding. The trooper was able to identify Alvarado as being wanted by the FBI and took him into custody. Alvarado appeared before a federal magistrate, who ordered that Alvarado be detained and transported to Rockford.
Once in Rockford, Magistrate Judge P. Michael Mahoney ordered that Alvarado be detained pending trial. Alvarado pled guilty to the drug trafficking charge on December 4, 2013. In his plea agreement, Alvarado admitted that on December 1, 1989, in Rock Falls, he had attempted to possess with the intent to distribute 1,414 grams of cocaine. At sentencing today, Judge Kapala noted the amount of time that Alvarado had spent as a fugitive and found it to be an aggravating factor in imposing the sentence.
Alvarado had been arrested on December 1, 1989, on a drug trafficking charge by FBI special agents. On December 15, 1989, he was released on a $20,000 bond pending trial. However, Alvarado failed to appear for a court appearance on Sept 18, 1990, and fled from Illinois. His bond was forfeited and the assets he had posted for bond were turned over to the United States. An arrest warrant was also issued for him. On June 28, 2013, Alvarado was a passenger in a car that was stopped in Montana by a State Police trooper for speeding. The trooper was able to identify Alvarado as being wanted by the FBI and took him into custody. Alvarado appeared before a federal magistrate, who ordered that Alvarado be detained and transported to Rockford.
Once in Rockford, Magistrate Judge P. Michael Mahoney ordered that Alvarado be detained pending trial. Alvarado pled guilty to the drug trafficking charge on December 4, 2013. In his plea agreement, Alvarado admitted that on December 1, 1989, in Rock Falls, he had attempted to possess with the intent to distribute 1,414 grams of cocaine. At sentencing today, Judge Kapala noted the amount of time that Alvarado had spent as a fugitive and found it to be an aggravating factor in imposing the sentence.
Richard Altomare, Former CEO of Universal Express, Sentenced in Securities Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Richard Altomare, 65, of Palm Beach County, was sentenced yesterday for his participation in a securities fraud “pump and dump” scheme. Altomare was sentenced to 37 months in prison, to be followed by three years of supervised release.
On February 21, 2014, a federal jury in Fort Lauderdale convicted Altomare on four counts, including one count of mail fraud and three counts of securities fraud.
According to the indictment and evidence presented during the trial, Altomare was the former CEO of Universal Express Inc. Between 2000 and 2003, Altomare and other company insiders sold 500 million unregistered shares of Universal stock to the public and then issued a series of false press releases in order to offset the resultant negative pressure on the stock price. On March 8, 2007, a final judgment in a civil action brought by the Securities and Exchange Commission was entered against Altomare. Among other things, the order prohibited Altomare from “participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for the purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock.”
Despite the order, Altomare persuaded a start-up financial services firm based in Jacksonville called Sunset Brands Inc. (SSBN), whose shares traded on the over the counter penny stock market, to bring him in as a consultant to attract investors and help write their press releases. Instead, Altomare used his access to the company to carry out a pump and dump scheme to defraud investors. In early 2013, Altomare met with a former business associate and conceived a scheme to artificially inflate the share price and trading volume of SSBN stock to enrich himself and his associate. Unbeknownst to Altomare, his former associate had become an informant for the FBI. During recorded conversations and meetings with the informant, Altomare promised to compensate him with SSBN stock to induce his cooperation in the scheme. Altomare’s plan was to have his former associate purchase shares of SSBN stock to mislead investors into believing that SSBN’s share price was rising and that there was a public market for SSBN stock. Altomare also used his access to SSBN’s press releases to further the scheme. Altomare agreed to cause SSBN, which was unaware of his plans, to issue positive press releases about the company to follow and coincide with the illegally induced purchasing by the informant. The purpose of the press releases was to make it appear that SSBN’s stock price was rising because of the positive news and to conceal the market manipulation scheme from regulatory authorities. Altomare’s plan was to sell, or dump, the stock he and the informant controlled after the share price had been artificially inflated and then split the proceeds with the informant.
On February 21, 2014, a federal jury in Fort Lauderdale convicted Altomare on four counts, including one count of mail fraud and three counts of securities fraud.
According to the indictment and evidence presented during the trial, Altomare was the former CEO of Universal Express Inc. Between 2000 and 2003, Altomare and other company insiders sold 500 million unregistered shares of Universal stock to the public and then issued a series of false press releases in order to offset the resultant negative pressure on the stock price. On March 8, 2007, a final judgment in a civil action brought by the Securities and Exchange Commission was entered against Altomare. Among other things, the order prohibited Altomare from “participating in an offering of penny stock, including engaging in activities with a broker, dealer, or issuer for the purposes of issuing, trading, or inducing or attempting to induce the purchase or sale of any penny stock.”
Despite the order, Altomare persuaded a start-up financial services firm based in Jacksonville called Sunset Brands Inc. (SSBN), whose shares traded on the over the counter penny stock market, to bring him in as a consultant to attract investors and help write their press releases. Instead, Altomare used his access to the company to carry out a pump and dump scheme to defraud investors. In early 2013, Altomare met with a former business associate and conceived a scheme to artificially inflate the share price and trading volume of SSBN stock to enrich himself and his associate. Unbeknownst to Altomare, his former associate had become an informant for the FBI. During recorded conversations and meetings with the informant, Altomare promised to compensate him with SSBN stock to induce his cooperation in the scheme. Altomare’s plan was to have his former associate purchase shares of SSBN stock to mislead investors into believing that SSBN’s share price was rising and that there was a public market for SSBN stock. Altomare also used his access to SSBN’s press releases to further the scheme. Altomare agreed to cause SSBN, which was unaware of his plans, to issue positive press releases about the company to follow and coincide with the illegally induced purchasing by the informant. The purpose of the press releases was to make it appear that SSBN’s stock price was rising because of the positive news and to conceal the market manipulation scheme from regulatory authorities. Altomare’s plan was to sell, or dump, the stock he and the informant controlled after the share price had been artificially inflated and then split the proceeds with the informant.
Smith Advertising Company Executives Arrested for Fraud
United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Gary Todd Smith (45), a/k/a Todd, and Gary Truman Smith (69), a/k/a Gary, both of Fayetteville, North Carolina, with wire fraud affecting a financial institution. If convicted, each faces a maximum penalty of 30 years in federal prison.
According to the complaint, Gary and Todd Smith ran Smith Advertising. The pair was allegedly involved in a fraud scheme that involved borrowing money (called bridge loans) for Smith Advertising to purportedly pre-purchase advertising space. They also borrowed money on outstanding invoices (called factoring) for Smith Advertising. Each loan, to the extent that it was repaid, was repaid by new loans. The underlying collateral for the loans was, where produced, fake invoices. Smith Advertising maintained a real and a false set of record books. On the date the company ceased operations, the total assets for the corporation were, according to their real books, valued at -$63,723,391.55, and the total equity was -$103,140,084.68.
According to the complaint, Gary and Todd Smith ran Smith Advertising. The pair was allegedly involved in a fraud scheme that involved borrowing money (called bridge loans) for Smith Advertising to purportedly pre-purchase advertising space. They also borrowed money on outstanding invoices (called factoring) for Smith Advertising. Each loan, to the extent that it was repaid, was repaid by new loans. The underlying collateral for the loans was, where produced, fake invoices. Smith Advertising maintained a real and a false set of record books. On the date the company ceased operations, the total assets for the corporation were, according to their real books, valued at -$63,723,391.55, and the total equity was -$103,140,084.68.
Wednesday, May 07, 2014
Columbian Vinston Boxton-Moises Pleads Guilty to Cocaine Conspiracy Charge
United States Attorney A. Lee Bentley, III announces that Vinston Boxton-Moises (48, San Andres Island, Colombia, South America) pleaded guilty to conspiring with others to distribute five kilograms or more of cocaine, knowing that the cocaine would be unlawfully imported into the United States. Boxton faces a mandatory minimum penalty of 10 years in federal prison and up to a maximum term of life imprisonment.
According to the plea agreement, between 2010 and 2013, Boxton was a knowing and willing participant in an ongoing plan to smuggle cocaine by sea. The cocaine was ultimately destined for unlawful importation into the United States. Boxton’s roles in the conspiracy included recruiting and paying mariners and mechanics, contracting for the use of smuggling and lookout/logistics vessels, and dispatching cocaine-laden go-fast vessels (GFVs).
Boxton is accountable for the GFV TAUPLY that was interdicted by the United States in the Caribbean Sea on May 31, 2012, approximately 85 nautical miles southeast of Nicaragua. The TAUPLY interdiction resulted in the seizure of approximately 1,000 kilograms of cocaine. Boxton arranged for the recruitment and payment of the mariners who ultimately operated TAUPLY and attempted to smuggle the cocaine. The government of Colombia consented to the enforcement of United States law over the TAUPLY, its illicit cargo (cocaine), and crew. The five mariners embarked in TAUPLY were successfully prosecuted in the United States for violations of the Maritime Drug Law Enforcement Act, first arriving at a place in the Middle District of Florida.
Boxton was arrested on San Andres Island, Colombia, in August 2013 and subsequently extradited to the United States for prosecution. As a direct result of his participation in the conspiracy, Boxton obtained at least $1 million in proceeds.
According to the plea agreement, between 2010 and 2013, Boxton was a knowing and willing participant in an ongoing plan to smuggle cocaine by sea. The cocaine was ultimately destined for unlawful importation into the United States. Boxton’s roles in the conspiracy included recruiting and paying mariners and mechanics, contracting for the use of smuggling and lookout/logistics vessels, and dispatching cocaine-laden go-fast vessels (GFVs).
Boxton is accountable for the GFV TAUPLY that was interdicted by the United States in the Caribbean Sea on May 31, 2012, approximately 85 nautical miles southeast of Nicaragua. The TAUPLY interdiction resulted in the seizure of approximately 1,000 kilograms of cocaine. Boxton arranged for the recruitment and payment of the mariners who ultimately operated TAUPLY and attempted to smuggle the cocaine. The government of Colombia consented to the enforcement of United States law over the TAUPLY, its illicit cargo (cocaine), and crew. The five mariners embarked in TAUPLY were successfully prosecuted in the United States for violations of the Maritime Drug Law Enforcement Act, first arriving at a place in the Middle District of Florida.
Boxton was arrested on San Andres Island, Colombia, in August 2013 and subsequently extradited to the United States for prosecution. As a direct result of his participation in the conspiracy, Boxton obtained at least $1 million in proceeds.
HUGE NATIONWIDE SYNTHETIC DRUG TAKEDOWN #ProjectSynergyPhaseII continues attack on drug networks, sources of supply, global money flow
The Drug Enforcement Administration (DEA), Customs and Border Protection (CBP), Immigration and Customs Enforcement Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) and other federal, state, and local partners announced the culmination of Project Synergy Phase II, an ongoing effort targeting every level of the dangerous global synthetic designer drug market. Since January and leading up to early this morning, nationwide enforcement operations have taken place targeting these drug trafficking organizations that have operated in communities across the country.
The second phase of the Project Synergy, which began January 2014, culminated this morning in 29 states, involves more than 45 DEA offices serving nearly 200 search warrants. As of today, more than 150 individuals have been arrested and federal, state and local law enforcement authorities have seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized. These numbers are expected to grow as investigations continue.
The Special Operations Division-coordinated Project Synergy initiative is aimed at bringing together federal, state, local, and international law enforcement resources to target the dangerous global synthetic designer drug industry through coordinated, united strategies.
In addition to targeting retailers, wholesalers, and manufacturers, many of these investigations continued to uncover the massive flow of drug-related proceeds to countries in the Middle East, including Yemen, Jordan, Syria, and Lebanon, and as well as other countries. Investigations also targeted many trade implements such as organic leaves and packaging material used in preparation for drug re-sale and distribution. These facilitators are key players in this ever-changing designer drug industry.
Communities, families, and individuals across the United States have experienced the scourge of designer synthetic drugs, which are often marketed as herbal incense, bath salts, jewelry cleaner, or plant food. These dangerous drugs have caused significant abuse, addiction, overdoses, and emergency room visits. Those who have abused synthetic drugs have suffered vomiting, anxiety, agitation, irritability, seizures, hallucinations, tachycardia, elevated blood pressure, and loss of consciousness. They have caused significant organ damage as well as overdose deaths. Over the past five years, DEA has identified between 200 and 300 new designers drugs from eight different structural classes, the vast majority of which are manufactured in China.
“Many who manufacture, distribute and sell these dangerous synthetic drugs found out first hand today that DEA will target, find and prosecute those who have committed these crimes,” said DEA Administrator Michele M. Leonhart. “The success of Project Synergy II could not have been possible without the assistance of our state, local and foreign law enforcement partners. We stand united in our commitment to aggressively pursue criminals who are all too willing to experiment on our children and young adults.”
“Tragically, people die every day at the hands of illegal designer drugs," said ICE Deputy Director Daniel Ragsdale, “Through operations like this, we strike a blow to drug dealers and continue an important national conversation about the dangers associated with drug use.”
“This is another example of the partnership between CBP, HSI, and DEA to share information and participate in joint efforts to keep synthetic drugs out of the country, off the streets, and out of our communities,” said CBP Commissioner R. Gil Kerlikowske. “The specialized expertise of our CBP officers as well as the unique capabilities of CBP scientists play a vital role in contributing to the seizure and identification of these potentially deadly substances at the border.”
The first phase of Project Synergy began in December of 2012, and resulted in more than 227 arrests and 416 search warrants served in 35 states, 49 cities and five countries, along with more than $60 million in cash and assets seized. Altogether, 9,445 kilograms of individually packaged, ready-to-sell synthetic drugs, 299 kilograms of cathinone drugs (the falsely labeled “bath salts”), 1,252 kilograms of synthetic cannabinoid drugs (used to make the so-called “fake pot” or herbal incense products), and 783 kilograms of treated plant material were seized.
As was the case in the June 2013 culmination of the first phase of Project Synergy, CBP’s National Targeting Center played a significant role in the continued success of this initiative. As part of this effort, CBP was responsible for identifying and targeting high-risk express consignment shipments suspected of containing synthetic drugs. One of the keys to the success of Project Synergy is the cooperation between CBP and DEA, who routinely share information and intelligence with each other and other partners such as DHS-HSI to strengthen and further these investigations. (see B-roll video link below)
Chemists and other scientists from DEA’s Office of Forensic Science, as well as CBP scientists across the country, were instrumental in identifying synthetic drugs and compounds designed to circumvent U.S. controlled substance classifications. The identifying of these compounds allowed investigators and prosecutors to quickly act during the course of these investigations. As a result of these cooperative efforts between DEA and CBP through the Special Operations Division, CBP has seized over 3,000 kilograms of illicit designer drugs. Intelligence has also been shared with other nations such as Australia and other international partners, who have in turn seized hundreds of kilograms of illicit designer substances such as cannabinoids, cathinones and GHB.
The second phase of the Project Synergy, which began January 2014, culminated this morning in 29 states, involves more than 45 DEA offices serving nearly 200 search warrants. As of today, more than 150 individuals have been arrested and federal, state and local law enforcement authorities have seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized. These numbers are expected to grow as investigations continue.
The Special Operations Division-coordinated Project Synergy initiative is aimed at bringing together federal, state, local, and international law enforcement resources to target the dangerous global synthetic designer drug industry through coordinated, united strategies.
In addition to targeting retailers, wholesalers, and manufacturers, many of these investigations continued to uncover the massive flow of drug-related proceeds to countries in the Middle East, including Yemen, Jordan, Syria, and Lebanon, and as well as other countries. Investigations also targeted many trade implements such as organic leaves and packaging material used in preparation for drug re-sale and distribution. These facilitators are key players in this ever-changing designer drug industry.
Communities, families, and individuals across the United States have experienced the scourge of designer synthetic drugs, which are often marketed as herbal incense, bath salts, jewelry cleaner, or plant food. These dangerous drugs have caused significant abuse, addiction, overdoses, and emergency room visits. Those who have abused synthetic drugs have suffered vomiting, anxiety, agitation, irritability, seizures, hallucinations, tachycardia, elevated blood pressure, and loss of consciousness. They have caused significant organ damage as well as overdose deaths. Over the past five years, DEA has identified between 200 and 300 new designers drugs from eight different structural classes, the vast majority of which are manufactured in China.
“Many who manufacture, distribute and sell these dangerous synthetic drugs found out first hand today that DEA will target, find and prosecute those who have committed these crimes,” said DEA Administrator Michele M. Leonhart. “The success of Project Synergy II could not have been possible without the assistance of our state, local and foreign law enforcement partners. We stand united in our commitment to aggressively pursue criminals who are all too willing to experiment on our children and young adults.”
“Tragically, people die every day at the hands of illegal designer drugs," said ICE Deputy Director Daniel Ragsdale, “Through operations like this, we strike a blow to drug dealers and continue an important national conversation about the dangers associated with drug use.”
“This is another example of the partnership between CBP, HSI, and DEA to share information and participate in joint efforts to keep synthetic drugs out of the country, off the streets, and out of our communities,” said CBP Commissioner R. Gil Kerlikowske. “The specialized expertise of our CBP officers as well as the unique capabilities of CBP scientists play a vital role in contributing to the seizure and identification of these potentially deadly substances at the border.”
The first phase of Project Synergy began in December of 2012, and resulted in more than 227 arrests and 416 search warrants served in 35 states, 49 cities and five countries, along with more than $60 million in cash and assets seized. Altogether, 9,445 kilograms of individually packaged, ready-to-sell synthetic drugs, 299 kilograms of cathinone drugs (the falsely labeled “bath salts”), 1,252 kilograms of synthetic cannabinoid drugs (used to make the so-called “fake pot” or herbal incense products), and 783 kilograms of treated plant material were seized.
As was the case in the June 2013 culmination of the first phase of Project Synergy, CBP’s National Targeting Center played a significant role in the continued success of this initiative. As part of this effort, CBP was responsible for identifying and targeting high-risk express consignment shipments suspected of containing synthetic drugs. One of the keys to the success of Project Synergy is the cooperation between CBP and DEA, who routinely share information and intelligence with each other and other partners such as DHS-HSI to strengthen and further these investigations. (see B-roll video link below)
Chemists and other scientists from DEA’s Office of Forensic Science, as well as CBP scientists across the country, were instrumental in identifying synthetic drugs and compounds designed to circumvent U.S. controlled substance classifications. The identifying of these compounds allowed investigators and prosecutors to quickly act during the course of these investigations. As a result of these cooperative efforts between DEA and CBP through the Special Operations Division, CBP has seized over 3,000 kilograms of illicit designer drugs. Intelligence has also been shared with other nations such as Australia and other international partners, who have in turn seized hundreds of kilograms of illicit designer substances such as cannabinoids, cathinones and GHB.
Details of Nancy Dobrowski, Former Burnham Village Clerk, Charged with Stealing at Least $650,000 from Revenue Payments and Filing False Tax Return
The former longtime elected clerk for the Village of Burnham was charged today with stealing more than $650,862 from her office at the south suburb’s village hall and using most of the cash to gamble at casinos. The defendant, Nancy Dobrowski, was charged with one count each of wire fraud and filing a false federal income tax return in a criminal information filed in U.S. District Court.
Dobrowski, 70, of Burnham, served as Burnham’s elected clerk from 1980 until she resigned on May 29, 2013, when FBI agents executed a federal search warrant at the clerk’s village hall office. Through her attorney, Dobrowski authorized the government to disclose that she will plead guilty to the charges. No date has been set yet for Dobrowski to be arraigned in federal court.
As clerk, Dobrowski was responsible for managing Burnham’s finances and depositing cash and checks collected by the clerk’s office into the village’s bank accounts.
Between at least 2004 and May 2013, Dobrowski allegedly took cash the village received as payment for fees and fines from the public. She then used most of the cash to gamble at casinos in Indiana and elsewhere either by taking cash to casinos or by depositing the money into her personal bank account and then withdrawing it from automated teller machines at casinos. She falsely represented the village’s finances to auditors and covered up her fraud scheme by causing false entries in village books, according to the charges.
As part of the fraud scheme, Dobrowski allegedly took cash from both the village cash register and the collection of money received as tow bonds. She recorded false amounts of tow bond money that had been received to make it appear that the village collected less cash than it had actually received, and sometimes she used tow bond money to balance the cash register, the charges allege.
To conceal her misappropriation of cash from the village cash register, Dobrowski waited a week to deposit cash into the village’s bank accounts instead of making daily deposits. By delaying deposits, Dobrowski could use funds received by the village in the later week to make up for funds she had taken during the prior week, making the deposit appear to match the revenues despite having taken cash from the register, the information alleges.
Dobrowski allegedly further concealed the scheme by failing to record checks received from the public as payment for village fees and services. She would place the unrecorded checks into the register to compensate for an equal amount of cash she had taken, making the register appear balanced. She provided false information to the village’s outside audit firm regarding the village’s revenues and regularly disposed of the cash register tape to conceal that the village’s revenues often did not match the deposits into village bank accounts.
Dobrowski was also charged with filing a false federal income tax return for 2012, when she reported total income of $309,181, knowing that her total income was substantially greater than that because she failed to report the cash she misappropriated from the village in 2012 as income.
Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine or an alternate fine totaling twice the gross loss or gain, whichever is greater. Filing a false federal income tax return carries a maximum penalty of three years in prison, a $250,000 fine, and mandatory costs of prosecution. Restitution is mandatory and defendants convicted of tax offenses remain liable for back taxes, interest, and a civil penalty of up to 75 percent of the amount owed.
Dobrowski, 70, of Burnham, served as Burnham’s elected clerk from 1980 until she resigned on May 29, 2013, when FBI agents executed a federal search warrant at the clerk’s village hall office. Through her attorney, Dobrowski authorized the government to disclose that she will plead guilty to the charges. No date has been set yet for Dobrowski to be arraigned in federal court.
As clerk, Dobrowski was responsible for managing Burnham’s finances and depositing cash and checks collected by the clerk’s office into the village’s bank accounts.
Between at least 2004 and May 2013, Dobrowski allegedly took cash the village received as payment for fees and fines from the public. She then used most of the cash to gamble at casinos in Indiana and elsewhere either by taking cash to casinos or by depositing the money into her personal bank account and then withdrawing it from automated teller machines at casinos. She falsely represented the village’s finances to auditors and covered up her fraud scheme by causing false entries in village books, according to the charges.
As part of the fraud scheme, Dobrowski allegedly took cash from both the village cash register and the collection of money received as tow bonds. She recorded false amounts of tow bond money that had been received to make it appear that the village collected less cash than it had actually received, and sometimes she used tow bond money to balance the cash register, the charges allege.
To conceal her misappropriation of cash from the village cash register, Dobrowski waited a week to deposit cash into the village’s bank accounts instead of making daily deposits. By delaying deposits, Dobrowski could use funds received by the village in the later week to make up for funds she had taken during the prior week, making the deposit appear to match the revenues despite having taken cash from the register, the information alleges.
Dobrowski allegedly further concealed the scheme by failing to record checks received from the public as payment for village fees and services. She would place the unrecorded checks into the register to compensate for an equal amount of cash she had taken, making the register appear balanced. She provided false information to the village’s outside audit firm regarding the village’s revenues and regularly disposed of the cash register tape to conceal that the village’s revenues often did not match the deposits into village bank accounts.
Dobrowski was also charged with filing a false federal income tax return for 2012, when she reported total income of $309,181, knowing that her total income was substantially greater than that because she failed to report the cash she misappropriated from the village in 2012 as income.
Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine or an alternate fine totaling twice the gross loss or gain, whichever is greater. Filing a false federal income tax return carries a maximum penalty of three years in prison, a $250,000 fine, and mandatory costs of prosecution. Restitution is mandatory and defendants convicted of tax offenses remain liable for back taxes, interest, and a civil penalty of up to 75 percent of the amount owed.
David Wax Admits Role in Conspiracy to Kidnap Jewish Husband to Force Him to Give Wife a Religious Divorce
A Lakewood, New Jersey, man admitted conspiring to kidnap a Jewish man to force him to give his wife a religious divorce, known as a get, U.S. Attorney Paul J. Fishman announced.
David Wax, 51, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit kidnapping. According to documents filed in this case and statements made in court:
In October 2010, Wax and his conspirators agreed to force a Jewish man (Victim One) to give his wife a get, a document which, according to Jewish law, must be presented by a husband to his wife to effect their divorce. Wax then lured Victim One from Brooklyn, New York, to Wax’s home in Lakewood on October 17, 2010, under the pretense that Victim One would work on Talmudic books that Wax was publishing. When the victim arrived, he was brought upstairs, blindfolded, handcuffed, and bound. Victim One was then assaulted by Wax and his conspirators until he provided the get.
Victim One’s wife’s family paid Wax approximately $100,000 to obtain the forced get. Wax’s conspirators received approximately $50,000.
The conspiracy to commit kidnapping charge carries a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for August 19, 2014.
David Wax, 51, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit kidnapping. According to documents filed in this case and statements made in court:
In October 2010, Wax and his conspirators agreed to force a Jewish man (Victim One) to give his wife a get, a document which, according to Jewish law, must be presented by a husband to his wife to effect their divorce. Wax then lured Victim One from Brooklyn, New York, to Wax’s home in Lakewood on October 17, 2010, under the pretense that Victim One would work on Talmudic books that Wax was publishing. When the victim arrived, he was brought upstairs, blindfolded, handcuffed, and bound. Victim One was then assaulted by Wax and his conspirators until he provided the get.
Victim One’s wife’s family paid Wax approximately $100,000 to obtain the forced get. Wax’s conspirators received approximately $50,000.
The conspiracy to commit kidnapping charge carries a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for August 19, 2014.
HTFC Mortgage Banker and Five Others Indicted in $30 Million Bank Fraud Conspiracy
An indictment was unsealed charging six men with carrying out a $30 million bank fraud conspiracy by fraudulently inflating the prices of homes for sale and then obtaining mortgages that far exceeded the true collateral value of properties in Nassau and Suffolk Counties. Through his mortgage banking company, defendant Aaron Wider and his co-conspirators allegedly then re-sold these “toxic” mortgages to banks and other investors in the secondary mortgage market, causing millions in losses when the loans went into foreclosure. Four of the defendants were arrested and will be presented for arraignment at the United States Courthouse in Central Islip, New York, before United State Magistrate Judge Gary R. Brown. Of the remaining two defendants, one was taken into custody in Florida, while another is scheduled to surrender to federal agents in Central Islip.
The indictment and arrests were 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.
“The conduct charged in the indictment is a prime example of the type of corrupt mortgage-lending practices that preceded the bursting of the real estate bubble, the loss of faith in securitized mortgage obligations, and the financial collapse of 2007 and 2008,” stated United States Attorney Lynch. “Instead of using their skills in banking, the law, and investing to assist individuals pursuing the American Dream, the defendants cooked up a sophisticated scheme that defrauded lenders and then fed toxic debt to the investigating public at large in the secondary mortgage market. I would like to thank the investigators at the Nassau County District Attorney’s Office and New York State Department of Financial Services for their invaluable assistance in this investigation.”
FBI Assistant Director in Charge Venizelos said, “As alleged in the indictment, during the height of the real estate boom, these defendants devised a scheme to turn a profit at the expense of unsuspecting lenders, investors, and members of the public. Mortgage fraud poses a threat to our financial systems and to our economy. This case should send a clear message to all individuals who try to game our financial market: you will be identified and held accountable for your criminal acts. The FBI, along with our law enforcement partners, will continue to investigate those who orchestrate and participate in various mortgage fraud schemes in order to protect the public against those who seek to damage our economy.”
According to the indictment and other court filings, between 2003 and 2008, defendant Aaron Wider operated a New York State licensed mortgage bank in Garden City, New York, called HTFC Corp., which issued residential mortgages to borrowers. HTFC did not possess assets to fund these loans but relied on funding from other banks and financial institutions, commonly known as “warehouse lenders.” The warehouse lenders relied on Wider and HTFC to ensure that home buyers were able to pay the mortgages and that the market value of the homes fully collateralized the loans.
Instead, Wider and the co-defendants allegedly engineered a complex series of same-day sham transactions, or “flips,” to artificially inflate the prices of homes. Then, they lied to the warehouse lenders to obtain mortgage funding that was 80 percent more than the actual value of the homes. Wider and co-defendants Manjeet Bawa, John Petiton, and Joseph Ferrara contracted to buy homes in Nassau and Suffolk Counties from innocent sellers at market prices. The defendants then submitted fraudulent loan applications to the warehouse lenders that nearly doubled the true sales prices of the homes. The defendants also inflated their personal assets and concealed significant liabilities to get loan approval.
At each closing, Petiton, an attorney admitted to practice in New York State, oversaw the actual sales to innocent sellers and simultaneously created sham trusts into which title to the properties was transferred for no money. He and the co-conspirators then immediately transferred title back to the co-defendants at nearly double the price to create a false paper trail documenting the artificially inflated prices. Meanwhile, real estate appraiser Joseph Mirando prepared false appraisal reports to justify the inflated prices, while HTFC closing attorney Eric Finger concealed the far lower, true sales price for properties by lying on federal-mandated settlement forms. Finger received wire transfers of funds from the warehouse lenders and, after paying the innocent third-party sellers, disbursed the surplus money fraudulently obtained in the mortgages to his fellow co-conspirators.
HTFC sold each of its mortgages in the secondary market. On paper, the loans appeared to be attractive investments because HTFC’s mortgages carried high rates of return that were supposedly fully collateralized by the market value of homes and the assets and incomes of the borrowers or mortgagors. Upon buying mortgages from HTFC, the secondary market bank paid off the warehouse lenders and then either collected the principal and interest or bundled them into mortgage-backed securities that were sold to pension funds, hedge funds, and other investors seeking relatively secure, high-yield investments. When HTFCs mortgages went into foreclosure beginning in 2007 and 2008, the secondary market investors discovered that the actual value of the collateral was 80 percent less than the amount borrowed for each home.
The charges in the indictment are merely allegations, and the defendants presumed innocent unless and until proven guilty. If convicted, the defendants face up to 30 years’ imprisonment. The indictment unsealed today also seeks to forfeit 19 residential properties traced to the bank fraud or up to $30 million in a money judgment.
The case is being prosecuted by Assistant U.S. Attorney James Miskiewicz.
Defendants:
MANJEET BAWA, age 46, Dix Hills, New York
JOSEPH FERRARA, age 70, Long Beach, New York
ERIC FINGER, age 48, Miami, Florida
JOSEPH MIRANDO, age 54, Centereach, NY
JOHN PETITON age 68, Garden City, New York
AARON WIDER age 50, Copiague, New York
The indictment and arrests were 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.
“The conduct charged in the indictment is a prime example of the type of corrupt mortgage-lending practices that preceded the bursting of the real estate bubble, the loss of faith in securitized mortgage obligations, and the financial collapse of 2007 and 2008,” stated United States Attorney Lynch. “Instead of using their skills in banking, the law, and investing to assist individuals pursuing the American Dream, the defendants cooked up a sophisticated scheme that defrauded lenders and then fed toxic debt to the investigating public at large in the secondary mortgage market. I would like to thank the investigators at the Nassau County District Attorney’s Office and New York State Department of Financial Services for their invaluable assistance in this investigation.”
FBI Assistant Director in Charge Venizelos said, “As alleged in the indictment, during the height of the real estate boom, these defendants devised a scheme to turn a profit at the expense of unsuspecting lenders, investors, and members of the public. Mortgage fraud poses a threat to our financial systems and to our economy. This case should send a clear message to all individuals who try to game our financial market: you will be identified and held accountable for your criminal acts. The FBI, along with our law enforcement partners, will continue to investigate those who orchestrate and participate in various mortgage fraud schemes in order to protect the public against those who seek to damage our economy.”
According to the indictment and other court filings, between 2003 and 2008, defendant Aaron Wider operated a New York State licensed mortgage bank in Garden City, New York, called HTFC Corp., which issued residential mortgages to borrowers. HTFC did not possess assets to fund these loans but relied on funding from other banks and financial institutions, commonly known as “warehouse lenders.” The warehouse lenders relied on Wider and HTFC to ensure that home buyers were able to pay the mortgages and that the market value of the homes fully collateralized the loans.
Instead, Wider and the co-defendants allegedly engineered a complex series of same-day sham transactions, or “flips,” to artificially inflate the prices of homes. Then, they lied to the warehouse lenders to obtain mortgage funding that was 80 percent more than the actual value of the homes. Wider and co-defendants Manjeet Bawa, John Petiton, and Joseph Ferrara contracted to buy homes in Nassau and Suffolk Counties from innocent sellers at market prices. The defendants then submitted fraudulent loan applications to the warehouse lenders that nearly doubled the true sales prices of the homes. The defendants also inflated their personal assets and concealed significant liabilities to get loan approval.
At each closing, Petiton, an attorney admitted to practice in New York State, oversaw the actual sales to innocent sellers and simultaneously created sham trusts into which title to the properties was transferred for no money. He and the co-conspirators then immediately transferred title back to the co-defendants at nearly double the price to create a false paper trail documenting the artificially inflated prices. Meanwhile, real estate appraiser Joseph Mirando prepared false appraisal reports to justify the inflated prices, while HTFC closing attorney Eric Finger concealed the far lower, true sales price for properties by lying on federal-mandated settlement forms. Finger received wire transfers of funds from the warehouse lenders and, after paying the innocent third-party sellers, disbursed the surplus money fraudulently obtained in the mortgages to his fellow co-conspirators.
HTFC sold each of its mortgages in the secondary market. On paper, the loans appeared to be attractive investments because HTFC’s mortgages carried high rates of return that were supposedly fully collateralized by the market value of homes and the assets and incomes of the borrowers or mortgagors. Upon buying mortgages from HTFC, the secondary market bank paid off the warehouse lenders and then either collected the principal and interest or bundled them into mortgage-backed securities that were sold to pension funds, hedge funds, and other investors seeking relatively secure, high-yield investments. When HTFCs mortgages went into foreclosure beginning in 2007 and 2008, the secondary market investors discovered that the actual value of the collateral was 80 percent less than the amount borrowed for each home.
The charges in the indictment are merely allegations, and the defendants presumed innocent unless and until proven guilty. If convicted, the defendants face up to 30 years’ imprisonment. The indictment unsealed today also seeks to forfeit 19 residential properties traced to the bank fraud or up to $30 million in a money judgment.
The case is being prosecuted by Assistant U.S. Attorney James Miskiewicz.
Defendants:
MANJEET BAWA, age 46, Dix Hills, New York
JOSEPH FERRARA, age 70, Long Beach, New York
ERIC FINGER, age 48, Miami, Florida
JOSEPH MIRANDO, age 54, Centereach, NY
JOHN PETITON age 68, Garden City, New York
AARON WIDER age 50, Copiague, New York
Yufeng Wei Sentenced for Illegally Exporting Electronics Components Used in Military Radar, Electronic Warfare, and Missile Systems to China
The former manager of a Massachusetts electronics company was re-sentenced yesterday for illegally exporting electronics components to China.
Yufeng Wei, a Chinese national residing in Belmont, Massachusetts, was sentenced to 23 months in prison for conspiring, over a 10-year period, to illegally export military and sophisticated electronics used in military phased array radar, electronic warfare, and missile systems to the People’s Republic of China (PRC) and illegally exporting sensitive electronic components to the PRC in violation of the Export Administration Regulations. Several Chinese military entities were among those to whom the defendant and her co-conspirators exported the equipment.
On March 19, 2013, the U.S. Court of Appeals for the First Circuit affirmed Wei’s conviction on export violations charges, for which a jury convicted her in May 2010. The First Circuit vacated two counts of the conviction that charged Wei, and her now ex-husband, Zhen Zhou Wu, with illegally exporting parts designated on the United States Munitions List because it held that the jury instructions given were constitutionally inadequate. However, the First Circuit observed that, from 1996 until 2008, Wu and Wei shipped tens of millions of dollars worth of sophisticated electronic components from the United States to China with little regard for whether the parts that they sold were export-controlled. Further, the First Circuit determined that Wu and Wei repeatedly attempted to disguise the fact that they were exporting to China and that they lacked the necessary licenses to do so. Because two counts of conviction were vacated, the case was remanded for a re-sentencing hearing. Wu was sentenced to 84 months in prison at his re-sentencing hearing held on September 9, 2013.
Wei, 50, was also sentenced to two years of supervised release. After serving her sentence Wei, who has been residing in the United States as a Lawful Permanent Resident, will be subject to deportation.
On May 17, 2010, Wei, Wu, and Chitron Electronics Inc. (Chitron-US) were convicted of conspiring from 1997 to 2007 to unlawfully export to the PRC military electronics and export restricted electronics components and illegally exporting such parts to the PRC on numerous occasions between 2004 and 2007. The defendants’ illegal enterprise involved the use of Chitron-US, a company Wu established in Waltham, Massachusetts as a front company for its parent company, Chitron Electronics Company Limited, based in Shenzhen, PRC. Wei was a “hands-on” manager at Chitron-US who oversaw the procurement of export restricted equipment from U.S. suppliers and shipment of those goods from Waltham to China, through Hong Kong without the suppliers’ knowledge. The exported equipment is used in electronic warfare, military radar, fire control, military guidance and control equipment, missile systems, and satellite communications. Many of Chitron’s customers were Chinese military research institutes and military entities responsible for procuring, developing, and manufacturing electronic components for China’s Army, Navy, and Air Force.
The Department of Defense’s Defense Technology Security Administration concluded in a report filed with the court that the defendants’ activities in this case seriously threatened “U.S. national and regional security interests.” According to the Department of Defense, the parts the defendants were convicted of illegally exporting are “vital for Chinese military electronic warfare, military radar, fire control, military guidance and control equipment, and satellite communications.” The report further concluded that the illegally exported parts are “precisely the [types of] items...that the People’s Liberation Army actively seeks to acquire.”
Yufeng Wei, a Chinese national residing in Belmont, Massachusetts, was sentenced to 23 months in prison for conspiring, over a 10-year period, to illegally export military and sophisticated electronics used in military phased array radar, electronic warfare, and missile systems to the People’s Republic of China (PRC) and illegally exporting sensitive electronic components to the PRC in violation of the Export Administration Regulations. Several Chinese military entities were among those to whom the defendant and her co-conspirators exported the equipment.
On March 19, 2013, the U.S. Court of Appeals for the First Circuit affirmed Wei’s conviction on export violations charges, for which a jury convicted her in May 2010. The First Circuit vacated two counts of the conviction that charged Wei, and her now ex-husband, Zhen Zhou Wu, with illegally exporting parts designated on the United States Munitions List because it held that the jury instructions given were constitutionally inadequate. However, the First Circuit observed that, from 1996 until 2008, Wu and Wei shipped tens of millions of dollars worth of sophisticated electronic components from the United States to China with little regard for whether the parts that they sold were export-controlled. Further, the First Circuit determined that Wu and Wei repeatedly attempted to disguise the fact that they were exporting to China and that they lacked the necessary licenses to do so. Because two counts of conviction were vacated, the case was remanded for a re-sentencing hearing. Wu was sentenced to 84 months in prison at his re-sentencing hearing held on September 9, 2013.
Wei, 50, was also sentenced to two years of supervised release. After serving her sentence Wei, who has been residing in the United States as a Lawful Permanent Resident, will be subject to deportation.
On May 17, 2010, Wei, Wu, and Chitron Electronics Inc. (Chitron-US) were convicted of conspiring from 1997 to 2007 to unlawfully export to the PRC military electronics and export restricted electronics components and illegally exporting such parts to the PRC on numerous occasions between 2004 and 2007. The defendants’ illegal enterprise involved the use of Chitron-US, a company Wu established in Waltham, Massachusetts as a front company for its parent company, Chitron Electronics Company Limited, based in Shenzhen, PRC. Wei was a “hands-on” manager at Chitron-US who oversaw the procurement of export restricted equipment from U.S. suppliers and shipment of those goods from Waltham to China, through Hong Kong without the suppliers’ knowledge. The exported equipment is used in electronic warfare, military radar, fire control, military guidance and control equipment, missile systems, and satellite communications. Many of Chitron’s customers were Chinese military research institutes and military entities responsible for procuring, developing, and manufacturing electronic components for China’s Army, Navy, and Air Force.
The Department of Defense’s Defense Technology Security Administration concluded in a report filed with the court that the defendants’ activities in this case seriously threatened “U.S. national and regional security interests.” According to the Department of Defense, the parts the defendants were convicted of illegally exporting are “vital for Chinese military electronic warfare, military radar, fire control, military guidance and control equipment, and satellite communications.” The report further concluded that the illegally exported parts are “precisely the [types of] items...that the People’s Liberation Army actively seeks to acquire.”
Tuesday, May 06, 2014
Review of “Eliot Ness: The Rise and Fall of an American Hero”
Douglas Perry’s “Eliot Ness: The Rise and Fall of an American Hero” is a riveting biography of the man who cleaned up Chicago bootlegging, took on the mob in Cleveland and battled venereal disease among soldiers during World War II.
Eliot Ness
was the real thing. Working as a federal Prohibition agent, he led a bold campaign against bootleggers in Chicago and helped send Al Capone to prison. His “Untouchables” really did crash into illegal breweries with a battering ram mounted on a truck.
Ness had a “soft, indistinct face,” writes Douglas Perry in his new biography of the lawman, and “a sadness in his eyes, even when he was smiling.” He stood about 6 feet tall, with a lithe, athletic build and conveyed a sensitivity that many women found irresistible.
Ness understood public relations and took care to nourish his legend. When he captured contraband liquor, he invited newspapers to send over cameramen with no cameras. He sent them back with their camera cases filled with booze. Predictably, he got good press — too good for FBI Director J. Edgar Hoover, a zealous media hog who declined Ness’ overture to join the bureau.
The end of Prohibition put the Untouchables out of business. Ness went to Cleveland, arguably even more corrupt than Chicago, where as director of public safety he cleaned up the police force and took on the mob.
As in Chicago, he was involved in car chases and shootouts with bad guys. But Ness was interested in more than just dramatic heroics. In Cleveland, he instituted an innovative traffic-safety program that reduced the death rate, and he worked with youth gangs to steer them away from criminal activity.
In World War II, Ness went to work for the government on reducing the incidence of venereal disease among soldiers by suppressing prostitution. He sent hundreds of prostitutes to training camps to learn vocational skills. He himself had no aversion to sex and alcohol. He was an all-night party animal who liked the ladies and drank more and more as the years passed.
The author may have spent too much time in creative-writing class. He describes Capone’s chief brewmaster as “stocky, cow-faced, with a wide pessimistic mouth like a dried-up old nun.” Nonetheless, Perry has spun a riveting tale.
Thanks to Hank H. Cox.
Eliot Ness
was the real thing. Working as a federal Prohibition agent, he led a bold campaign against bootleggers in Chicago and helped send Al Capone to prison. His “Untouchables” really did crash into illegal breweries with a battering ram mounted on a truck.Ness had a “soft, indistinct face,” writes Douglas Perry in his new biography of the lawman, and “a sadness in his eyes, even when he was smiling.” He stood about 6 feet tall, with a lithe, athletic build and conveyed a sensitivity that many women found irresistible.
Ness understood public relations and took care to nourish his legend. When he captured contraband liquor, he invited newspapers to send over cameramen with no cameras. He sent them back with their camera cases filled with booze. Predictably, he got good press — too good for FBI Director J. Edgar Hoover, a zealous media hog who declined Ness’ overture to join the bureau.
The end of Prohibition put the Untouchables out of business. Ness went to Cleveland, arguably even more corrupt than Chicago, where as director of public safety he cleaned up the police force and took on the mob.
As in Chicago, he was involved in car chases and shootouts with bad guys. But Ness was interested in more than just dramatic heroics. In Cleveland, he instituted an innovative traffic-safety program that reduced the death rate, and he worked with youth gangs to steer them away from criminal activity.
In World War II, Ness went to work for the government on reducing the incidence of venereal disease among soldiers by suppressing prostitution. He sent hundreds of prostitutes to training camps to learn vocational skills. He himself had no aversion to sex and alcohol. He was an all-night party animal who liked the ladies and drank more and more as the years passed.
The author may have spent too much time in creative-writing class. He describes Capone’s chief brewmaster as “stocky, cow-faced, with a wide pessimistic mouth like a dried-up old nun.” Nonetheless, Perry has spun a riveting tale.
Thanks to Hank H. Cox.
Monday, May 05, 2014
Review of "A History of Violence: An Encyclopedia of 1,400 Chicago Mob Murders"
From his boyhood memories of the raid on a bookie joint under the Chicago apartment where he grew up to the murder cases he worked on as an officer with the Chicago Police Department's organized crime division, Harper College professor Wayne A. Johnson has been steeped in the violence of mobsters.
Isolated murders, such as the infamous Valentine's Day Massacre or the beating deaths of brothers Anthony "Tony the Ant" and Michael Spilotro, have become scenes in mob movies. "But nobody ever put it in one place before," says Johnson, who has done that with his new book, "A History of Violence:: An Encyclopedia of 1400 Chicago Mob Murders.1st Edition."
From the stabbing death of Harry Bush during the newspaper "circulation war" on July 6, 1900, to the Aug. 31, 2006, disappearance of 71-year-old Anthony "Little Tony" Zizzo of Westmont, Johnson has used court documents, police records, newspaper accounts and 14 years of personal research to compile more than a century of suspected mob murders.
"You know what makes it so insidious? Their ability to get into places that affect every aspect of our lives," says Johnson, who notes cases where politicians, judges and police officers cooperated with mobsters. "Once you are into these guys, they own you."
Appearing in countless articles and TV shows as an expert on the mob, Johnson spent 25 years as a Chicago police officer and served as chief investigator for the Chicago Crime Commission before getting his doctoral degree in education. He's now an associate professor and program coordinator of law enforcement programs at Harper College.
The stereotype of the Chicago mob as the Italian Mafia known as Cosa Nostra is a myth, says Johnson, who says organized crime boasts a diverse collection of people, including many immigrants, who learned how to make money through illegal methods. The criminal groups formed partnerships and cut deals with each other, he says.
Of the 1,401 murders Johnson details, he lists only 278 as "solved," and the number of people convicted of those murders is even lower. "Just because they weren't charged doesn't mean it's not solved," says Johnson.
In teaching his "Organized Crime" class, Johnson tells the Harper students that reputed mob boss Tony "Big Tuna" Accardo, who died in 1992 at the age of 86, lived the last years of his life just a short drive away, on Algonquin Road in Barrington Hills.
Student Jackie Cooney, 30, of McHenry wrote a research paper that ended up adding early 20th-century murders to Johnson's book.
"I logged 108 murders, and, of those murders, a portion of them were mob murders," says Cooney, who says she's been interested in the mob since she got her bachelor's degree in history from Roosevelt University in 2008. "I find it fascinating how people make alternative choices to provide for themselves and their families."
Studying
to become a physical anthropologist while excelling in her art classes at Harper, Daniella Boyd, 21, of Wheeling responded to Johnson's request to draw a grisly scene for the cover of his book. "I did some research," says Boyd, who spent about 12 hours making a graphite drawing of the toe tag on the left foot of mobster Sam Giancana, who was gunned down in his Oak Park home in 1975.
The suburbs are home to some of the most infamous mob murders. On Feb. 12, 1985, the body of 48-year-old Hal Smith of Prospect Heights was found in the trunk of his Cadillac in the parking lot of an Arlington Heights hotel. Suspected of being a sports bookie who had run afoul of the mob, Smith was lured to the Long Grove home of his friend William B.J. Jahoda and was tortured, had his throat cut and was strangled. Jahoda, who became a friend of Johnson's before his death of natural causes in 2004, testified against the mob and helped send reputed mob leaders including Ernest Rocco Infelice and Salvatore DeLaurentis of Lake County to prison.
Another gambling operator who angered the mob, Robert Plummer, 51, was found dead in a car trunk in Mundelein in 1982. He was murdered in a Libertyville house already notorious before it was purchased by a mobster and turned into an illicit casino. In 1980, in a crime that went unsolved for more than 15 years, William Rouse, 15, used a shotgun to murder his millionaire parents, Bruce and Darlene Rouse, in a bedroom of the family home.
"Some people romanticize the mob," says Johnson, who adds that he hopes his book not only makes people recognize the heinous brutality of mobster killings, but might also help solve some of the remaining mysteries. "I hope they read my book and say, 'Yeah, it was 20 years ago, but I know who killed so-and-so.' Maybe we can still do something."
Isolated murders, such as the infamous Valentine's Day Massacre or the beating deaths of brothers Anthony "Tony the Ant" and Michael Spilotro, have become scenes in mob movies. "But nobody ever put it in one place before," says Johnson, who has done that with his new book, "A History of Violence:: An Encyclopedia of 1400 Chicago Mob Murders.1st Edition."
From the stabbing death of Harry Bush during the newspaper "circulation war" on July 6, 1900, to the Aug. 31, 2006, disappearance of 71-year-old Anthony "Little Tony" Zizzo of Westmont, Johnson has used court documents, police records, newspaper accounts and 14 years of personal research to compile more than a century of suspected mob murders.
"You know what makes it so insidious? Their ability to get into places that affect every aspect of our lives," says Johnson, who notes cases where politicians, judges and police officers cooperated with mobsters. "Once you are into these guys, they own you."
Appearing in countless articles and TV shows as an expert on the mob, Johnson spent 25 years as a Chicago police officer and served as chief investigator for the Chicago Crime Commission before getting his doctoral degree in education. He's now an associate professor and program coordinator of law enforcement programs at Harper College.
The stereotype of the Chicago mob as the Italian Mafia known as Cosa Nostra is a myth, says Johnson, who says organized crime boasts a diverse collection of people, including many immigrants, who learned how to make money through illegal methods. The criminal groups formed partnerships and cut deals with each other, he says.
Of the 1,401 murders Johnson details, he lists only 278 as "solved," and the number of people convicted of those murders is even lower. "Just because they weren't charged doesn't mean it's not solved," says Johnson.
In teaching his "Organized Crime" class, Johnson tells the Harper students that reputed mob boss Tony "Big Tuna" Accardo, who died in 1992 at the age of 86, lived the last years of his life just a short drive away, on Algonquin Road in Barrington Hills.
Student Jackie Cooney, 30, of McHenry wrote a research paper that ended up adding early 20th-century murders to Johnson's book.
"I logged 108 murders, and, of those murders, a portion of them were mob murders," says Cooney, who says she's been interested in the mob since she got her bachelor's degree in history from Roosevelt University in 2008. "I find it fascinating how people make alternative choices to provide for themselves and their families."
Studying
to become a physical anthropologist while excelling in her art classes at Harper, Daniella Boyd, 21, of Wheeling responded to Johnson's request to draw a grisly scene for the cover of his book. "I did some research," says Boyd, who spent about 12 hours making a graphite drawing of the toe tag on the left foot of mobster Sam Giancana, who was gunned down in his Oak Park home in 1975.The suburbs are home to some of the most infamous mob murders. On Feb. 12, 1985, the body of 48-year-old Hal Smith of Prospect Heights was found in the trunk of his Cadillac in the parking lot of an Arlington Heights hotel. Suspected of being a sports bookie who had run afoul of the mob, Smith was lured to the Long Grove home of his friend William B.J. Jahoda and was tortured, had his throat cut and was strangled. Jahoda, who became a friend of Johnson's before his death of natural causes in 2004, testified against the mob and helped send reputed mob leaders including Ernest Rocco Infelice and Salvatore DeLaurentis of Lake County to prison.
Another gambling operator who angered the mob, Robert Plummer, 51, was found dead in a car trunk in Mundelein in 1982. He was murdered in a Libertyville house already notorious before it was purchased by a mobster and turned into an illicit casino. In 1980, in a crime that went unsolved for more than 15 years, William Rouse, 15, used a shotgun to murder his millionaire parents, Bruce and Darlene Rouse, in a bedroom of the family home.
"Some people romanticize the mob," says Johnson, who adds that he hopes his book not only makes people recognize the heinous brutality of mobster killings, but might also help solve some of the remaining mysteries. "I hope they read my book and say, 'Yeah, it was 20 years ago, but I know who killed so-and-so.' Maybe we can still do something."
Matthew Stoen of Stone Rose, Indicted for Allegedly Cheating at Least 50 Mostly Chicago-Area Investors of $10 Million
A former Chicago-area real estate investment partner was indicted on federal charges alleging that he fraudulently obtained more than $10 million from more than 50 investors, many of whom lived in the Chicago area, and misused the funds he obtained from them as well as lenders. The defendant, MATTHEW STOEN, was a founder of Stone Rose, LP, and effectively was its managing general partner.
Stoen, 35, of Wayzata, Minnesota and formerly of St. Charles and Chicago, was charged with four counts of mail fraud and two counts of wire fraud in an indictment returned by a federal grand jury. He will be arraigned on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of more than $10 million in alleged fraud proceeds.
According to the indictment, Stoen falsely represented to investors and lenders his personal background and financial condition, including claiming that he was the beneficiary of a trust fund, which he knew was false. He allegedly carried out a financing fraud scheme to benefit himself by fraudulently raising millions of dollars through the offer and sale of limited partnership interests and through loans. Stoen fraudulently obtained and retained these funds by making false representations regarding the intended use of the funds raised for Stone Rose, the terms of Stone Rose’s real estate transactions, Stone Rose’s financial condition, his personal financial condition, and his interest in Stone Rose real estate transactions. Stoen misappropriated Stone Rose funds for his own benefit, and concealed his scheme by creating and distributing to investors a false and misleading financial review of Stone Rose, the indictment states.
Stoen allegedly represented to investors and lenders that funds invested in Stone Rose would be used for real estate investment projects in the Kansas City area as well as certain Stone Rose fees and expenses, knowing that he intended to misappropriate a portion of the funds for other purposes, including for his own use and benefit.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Stoen, 35, of Wayzata, Minnesota and formerly of St. Charles and Chicago, was charged with four counts of mail fraud and two counts of wire fraud in an indictment returned by a federal grand jury. He will be arraigned on a date to be determined in U.S. District Court in Chicago.
The indictment also seeks forfeiture of more than $10 million in alleged fraud proceeds.
According to the indictment, Stoen falsely represented to investors and lenders his personal background and financial condition, including claiming that he was the beneficiary of a trust fund, which he knew was false. He allegedly carried out a financing fraud scheme to benefit himself by fraudulently raising millions of dollars through the offer and sale of limited partnership interests and through loans. Stoen fraudulently obtained and retained these funds by making false representations regarding the intended use of the funds raised for Stone Rose, the terms of Stone Rose’s real estate transactions, Stone Rose’s financial condition, his personal financial condition, and his interest in Stone Rose real estate transactions. Stoen misappropriated Stone Rose funds for his own benefit, and concealed his scheme by creating and distributing to investors a false and misleading financial review of Stone Rose, the indictment states.
Stoen allegedly represented to investors and lenders that funds invested in Stone Rose would be used for real estate investment projects in the Kansas City area as well as certain Stone Rose fees and expenses, knowing that he intended to misappropriate a portion of the funds for other purposes, including for his own use and benefit.
Each count of mail and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
2 Alleged Members of the #AlmightyImperialGangstersNation Indicted for Murder in Aid of Racketeering
Two alleged members of the Almighty Imperial Gangsters Nation have been indicted for their alleged roles in a 2007 murder in the Southern District of Florida.
Acting Assistant Attorney David A. O’Neil of the Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The indictment returned by a federal grand jury on May 1, 2014, and unsealed in the Southern District of Florida charges Jose Herrera, aka “Spyro,” 27, and Leonel Carrera, aka “Leo,” 25, both of Miami, with murder in aid of racketeering activity. Herrera and Carrera were both arrested this morning.
The indictment alleges that Herrera and Carrera participated in the murder of Hockynson Sanchez, aka “Jaxx,” on Nov. 20, 2007, for the purpose of maintaining and increasing their position in the Almighty Imperial Gangsters Nation.
According to the indictment, the Almighty Imperial Gangsters Nation is a nationally known organized street gang that originated in the northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangers Nation allegedly engaged in acts of violence, including murder, attempted murder, aggravated battery and aggravated assault, as well as narcotics distribution and other criminal activities.
Acting Assistant Attorney David A. O’Neil of the Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The indictment returned by a federal grand jury on May 1, 2014, and unsealed in the Southern District of Florida charges Jose Herrera, aka “Spyro,” 27, and Leonel Carrera, aka “Leo,” 25, both of Miami, with murder in aid of racketeering activity. Herrera and Carrera were both arrested this morning.
The indictment alleges that Herrera and Carrera participated in the murder of Hockynson Sanchez, aka “Jaxx,” on Nov. 20, 2007, for the purpose of maintaining and increasing their position in the Almighty Imperial Gangsters Nation.
According to the indictment, the Almighty Imperial Gangsters Nation is a nationally known organized street gang that originated in the northwest side of Chicago and spread to other regions of the United States, including South Florida. Members and associates of the Almighty Imperial Gangers Nation allegedly engaged in acts of violence, including murder, attempted murder, aggravated battery and aggravated assault, as well as narcotics distribution and other criminal activities.
Two #AryanBrotherhood Members Plead Guilty to Federal Racketeering Charges
Two Aryan Brotherhood of Texas (ABT) gang members pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Kelley Ray Elley, of Austin, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. Jamie Grant Loveall, aka “Dutch,” of Houston, pleaded guilty to the same charge on May 1, 2014.
According to court documents, Elley, Loveall and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Elley, Loveall and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Elley and Loveall admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Loveall and Elley are both scheduled to be sentenced on Oct. 7, 2014. Each faces a maximum penalty of life in prison.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Loveall and Elley are both scheduled to be sentenced on Oct. 7, 2014. Each faces a maximum penalty of life in prison.
Loveall and Elley are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 26 defendants have pleaded guilty.
Glen McInerney Sentenced to 41 Months in Prison After Pleading Guilty to Bank Fraud, Money Laundering, and Wire Fraud
GLEN MCINERNEY, age 42, a resident of Meraux, Louisiana, was sentenced by U.S. District Judge Jane Triche Milazzo to 41 months in prison, followed by three years of supervised release, announced U.S. Attorney Kenneth Polite. MCINERNEY previously pled guilty to a four-count superseding bill of information charging him with two counts of bank fraud, one count of money laundering, and one count of wire fraud. MCINERNEY was also ordered to make restitution to the three victims of his crimes in the amount of $845,083.18.
According to court documents, MCINERNEY owned and operated GM Motors and Used Cars (“GM Motors”). MCINERNEY maintained a bank account for GM Motors at Regions Bank. Between May 2, 2009, and June 20, 2009, MCINERNEY wrote checks to straw payees to cash the checks and return the cash to him so that he could deposit portions of the proceeds back into the Regions account. MCINERNEY timed the cash deposits to occur prior to account debits, which lead to the straw payees cashing checks that he knew would ultimately bounce. In total, MCINERNEY wrote 288 such checks, resulting in a loss to Regions Bank of approximately $17,000.
Separately, between December 29, 2008, and January 7, 2009, MCINERNEY also defraudedGulf Coast Bank & Trust by negotiating six checks purportedly drawn on funds from a bank account at Twin City Federal National Bank in Minneapolis, Minnesota. MCINERNEY knew that the Twin City Federal National Bank account had been closed since July 30, 2007, that the account belonged to someone other than MCINERNEY, and which MCINERNEY did not have authority or control. These actions caused a loss to Gulf Coast Bank & Trust of approximately $28,083.18.
Finally, between January 3, 2007, and December 15, 2008, MCINERNEY defrauded an individual who had provided him with collateral for a short-term business loan by falsely representing that he had purchased used trailers from the Federal Emergency Management Agency (“FEMA”) that he intended to resell, when, in fact, he did not purchase such trailers in the first place. MCINERNEY’S fraudulent misrepresentations caused the individual who loaned him the money to suffer losses of approximately $800,000.
“Glen McInerney was sentenced today after pleading guilty to using “straw” payees to cash checks, committing bank fraud and laundering money to hide his part in illegal financial transactions,” stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation, New Orleans Field Office. “Money laundering is not a victimless crime. Not only are innocent people ‘duped’ by such schemes, but the underground, untaxed economy harms the entire nation’s economic strength. Special agents of IRS Criminal Investigation are committed to lending their expertise as the world’s premiere financial investigators to all crimes of greed.”
According to court documents, MCINERNEY owned and operated GM Motors and Used Cars (“GM Motors”). MCINERNEY maintained a bank account for GM Motors at Regions Bank. Between May 2, 2009, and June 20, 2009, MCINERNEY wrote checks to straw payees to cash the checks and return the cash to him so that he could deposit portions of the proceeds back into the Regions account. MCINERNEY timed the cash deposits to occur prior to account debits, which lead to the straw payees cashing checks that he knew would ultimately bounce. In total, MCINERNEY wrote 288 such checks, resulting in a loss to Regions Bank of approximately $17,000.
Separately, between December 29, 2008, and January 7, 2009, MCINERNEY also defraudedGulf Coast Bank & Trust by negotiating six checks purportedly drawn on funds from a bank account at Twin City Federal National Bank in Minneapolis, Minnesota. MCINERNEY knew that the Twin City Federal National Bank account had been closed since July 30, 2007, that the account belonged to someone other than MCINERNEY, and which MCINERNEY did not have authority or control. These actions caused a loss to Gulf Coast Bank & Trust of approximately $28,083.18.
Finally, between January 3, 2007, and December 15, 2008, MCINERNEY defrauded an individual who had provided him with collateral for a short-term business loan by falsely representing that he had purchased used trailers from the Federal Emergency Management Agency (“FEMA”) that he intended to resell, when, in fact, he did not purchase such trailers in the first place. MCINERNEY’S fraudulent misrepresentations caused the individual who loaned him the money to suffer losses of approximately $800,000.
“Glen McInerney was sentenced today after pleading guilty to using “straw” payees to cash checks, committing bank fraud and laundering money to hide his part in illegal financial transactions,” stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation, New Orleans Field Office. “Money laundering is not a victimless crime. Not only are innocent people ‘duped’ by such schemes, but the underground, untaxed economy harms the entire nation’s economic strength. Special agents of IRS Criminal Investigation are committed to lending their expertise as the world’s premiere financial investigators to all crimes of greed.”
Thursday, May 01, 2014
McHugh Construction to Pay $12 Million to Settle Contract Fraud Claims on Seven Public Works Projects
A Chicago-based construction company will pay the United States and the State of Illinois $12 million to resolve allegations of fraud on government programs designed to benefit women- and minority-owned sub-contractors under the terms of a civil settlement agreement announced. The contractor, James McHugh Construction Co., Inc., allegedly failed to abide by federal and state requirements for the participation of disadvantaged businesses in contracts to perform seven public construction projects. The work on area roads, highways, and transit lines was funded by the federal and state governments between 2004 and 2011.
The federal and state governments claimed that McHugh violated the federal and Illinois False Claims Acts by making false statements and claims for payment to government agencies regarding McHugh’s compliance with federal and state requirements to include disadvantaged businesses in the construction projects.
As a result of the $12 million settlement, the federal government will receive $7.2 million and the state government will receive $4.8 million. In a separate administrative settlement and compliance agreement, McHugh agreed to implement a corporate compliance program, appoint a compliance officer, and be subject to an independent monitor for three years, in exchange for the federal, state, and City of Chicago transportation agencies and contracting authorities’ agreement not to bar McHugh from future government contracts. This allows McHugh to continue pursuing and performing public works projects while ensuring that it remains compliant with disadvantaged business regulations.
“It was more costly in the long run for McHugh to avoid its obligations to hire women- and minority-owned businesses than it would have been simply to comply with the requirements and retain disadvantaged businesses to actually participate in these public construction projects,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “It’s important that McHugh and other companies realize that compliance with these requirements is both a good business decision and the right thing to do,” he added.
“Our investigation revealed that McHugh Construction falsely used subcontractors to help secure bids for major construction projects funded by and for Illinois taxpayers,” Illinois Attorney General Lisa Madigan said. “The company used women-owned businesses to submit false claims to the state and federal governments for millions of dollars when in fact, those businesses never completed the level of work required by law.”
Mr. Fardon and Attorney General Madigan announced the settlement with Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; Michelle McVicker, Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General in Chicago; and James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of Inspector General in Chicago.
The settlement arose from a lawsuit that was filed under seal in 2008 by Ryan Keiser, who was a project manager for Perdel Contracting Corp. and Accurate Steel Installers, Inc. (ASI), at three of the McHugh construction sites. The lawsuit, which was unsealed, was filed under the qui tam, or whistleblower, provisions of the federal and state False Claims Acts. United States, et al., ex rel. James McHugh Construction Co., et al., No. 08 C 2443 (N.D. Ill.).
The similar federal and state statutes permit private individuals to sue for false claims on behalf of the government and to share in any recovery. Mr. Keiser will receive 17 percent of the $12 million settlement or $2,040,000―$1,224,000 from the United States share, and $816,000 from Illinois’ portion of the settlement.
The settlement covers McHugh’s contracts on the following projects: the Washington/Monroe Viaducts over Interstate 90/94 for the Chicago Department of Transportation (CDOT) in 2005; the Red Line Howard Station for the Chicago Transit Authority in 2006; the North Avenue Bridge for CDOT in 2006; the Brown Line for the CTA in 2006; the Eastbound Interstate 88/Fox River Bridge for the Illinois State Toll Highway Authority in 2007; the Westbound Interstate 88/Fox River Bridge for the toll highway authority in 2008; and the Wacker Drive Viaduct Reconstruction from Randolph to Monroe streets for CDOT in 2010.
The federal and state governments contended that in bids for these contacts, in the final contracts, and in claims for payment, McHugh falsely stated that Perdel and ASI, which were both certified as “disadvantaged business enterprises” (DBE) owned by Elizabeth Perino, would perform or had performed work on the projects in satisfaction of federal and state DBE participation requirements in the contracts. The governments contended that contrary to McHugh’s statements, Perdel and ASI often functioned merely as “pass-throughs,” performing little, if any, work that would qualify for participation credit under federal and state DBE requirements. Perino, who owned Perdel and ASI in Lockport, was charged with federal mail fraud in 2011, and the case remains pending.
According to the settlement agreement, the governments also contended that Perdel and ASI’s contracted work for McHugh often exceeded the companies’ capacity and experience. Although their projects with McHugh were substantially greater in size and scope than they had previously performed, Perdel and ASI’s expertise to perform larger and more complex projects did not change correspondingly. Rather than Perdel and ASI performing, managing, or supervising the work that McHugh represented they would, McHugh frequently managed union workers they each hired. In some cases, McHugh directed Perdel and ASI as to which union crews to hire.
McHugh, not Perdel or ASI, also selected certain suppliers on each of the contracts, determined the quantity and quality of those materials, negotiated the price, and often drafted a purchase order for Perdel or ASI to put on their letterhead, the governments contended. That kind of conduct violates federal and state provisions that are designed to give a share of the actual work of government-funded construction projects to minority- and women-owned businesses.
The settlement is neither an admission of liability by McHugh nor a concession by the state and federal governments that their contentions are not well founded, and McHugh expressly denies the claims.
The settlement was reached on behalf of the U.S. Department of Transportation, the Illinois Department of Transportation, the Illinois State Toll Highway Authority, and the Regional Transportation Authority.
The separate three-year administrative monitoring settlement and compliance agreement was reached between McHugh and the Federal Transit Administration, the Federal Highway Administration, the U.S. and Illinois Transportation Departments and their procurement officers, and the City of Chicago. In exchange for the government entities’ agreement not to pursue any suspension or debarment action against McHugh for the covered conduct, McHugh agreed to implement a corporate compliance program and appoint a compliance officer who is knowledgeable about DBE programs. The company also agreed to retain an independent monitor to evaluate McHugh’s performance and submit periodic reports to the government agencies and officials, and to make six presentations to those agencies and officials to discuss and promote compliant policies and procedures for working with DBE firms.
The federal and state governments claimed that McHugh violated the federal and Illinois False Claims Acts by making false statements and claims for payment to government agencies regarding McHugh’s compliance with federal and state requirements to include disadvantaged businesses in the construction projects.
As a result of the $12 million settlement, the federal government will receive $7.2 million and the state government will receive $4.8 million. In a separate administrative settlement and compliance agreement, McHugh agreed to implement a corporate compliance program, appoint a compliance officer, and be subject to an independent monitor for three years, in exchange for the federal, state, and City of Chicago transportation agencies and contracting authorities’ agreement not to bar McHugh from future government contracts. This allows McHugh to continue pursuing and performing public works projects while ensuring that it remains compliant with disadvantaged business regulations.
“It was more costly in the long run for McHugh to avoid its obligations to hire women- and minority-owned businesses than it would have been simply to comply with the requirements and retain disadvantaged businesses to actually participate in these public construction projects,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “It’s important that McHugh and other companies realize that compliance with these requirements is both a good business decision and the right thing to do,” he added.
“Our investigation revealed that McHugh Construction falsely used subcontractors to help secure bids for major construction projects funded by and for Illinois taxpayers,” Illinois Attorney General Lisa Madigan said. “The company used women-owned businesses to submit false claims to the state and federal governments for millions of dollars when in fact, those businesses never completed the level of work required by law.”
Mr. Fardon and Attorney General Madigan announced the settlement with Robert J. Holley, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; Michelle McVicker, Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General in Chicago; and James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of Inspector General in Chicago.
The settlement arose from a lawsuit that was filed under seal in 2008 by Ryan Keiser, who was a project manager for Perdel Contracting Corp. and Accurate Steel Installers, Inc. (ASI), at three of the McHugh construction sites. The lawsuit, which was unsealed, was filed under the qui tam, or whistleblower, provisions of the federal and state False Claims Acts. United States, et al., ex rel. James McHugh Construction Co., et al., No. 08 C 2443 (N.D. Ill.).
The similar federal and state statutes permit private individuals to sue for false claims on behalf of the government and to share in any recovery. Mr. Keiser will receive 17 percent of the $12 million settlement or $2,040,000―$1,224,000 from the United States share, and $816,000 from Illinois’ portion of the settlement.
The settlement covers McHugh’s contracts on the following projects: the Washington/Monroe Viaducts over Interstate 90/94 for the Chicago Department of Transportation (CDOT) in 2005; the Red Line Howard Station for the Chicago Transit Authority in 2006; the North Avenue Bridge for CDOT in 2006; the Brown Line for the CTA in 2006; the Eastbound Interstate 88/Fox River Bridge for the Illinois State Toll Highway Authority in 2007; the Westbound Interstate 88/Fox River Bridge for the toll highway authority in 2008; and the Wacker Drive Viaduct Reconstruction from Randolph to Monroe streets for CDOT in 2010.
The federal and state governments contended that in bids for these contacts, in the final contracts, and in claims for payment, McHugh falsely stated that Perdel and ASI, which were both certified as “disadvantaged business enterprises” (DBE) owned by Elizabeth Perino, would perform or had performed work on the projects in satisfaction of federal and state DBE participation requirements in the contracts. The governments contended that contrary to McHugh’s statements, Perdel and ASI often functioned merely as “pass-throughs,” performing little, if any, work that would qualify for participation credit under federal and state DBE requirements. Perino, who owned Perdel and ASI in Lockport, was charged with federal mail fraud in 2011, and the case remains pending.
According to the settlement agreement, the governments also contended that Perdel and ASI’s contracted work for McHugh often exceeded the companies’ capacity and experience. Although their projects with McHugh were substantially greater in size and scope than they had previously performed, Perdel and ASI’s expertise to perform larger and more complex projects did not change correspondingly. Rather than Perdel and ASI performing, managing, or supervising the work that McHugh represented they would, McHugh frequently managed union workers they each hired. In some cases, McHugh directed Perdel and ASI as to which union crews to hire.
McHugh, not Perdel or ASI, also selected certain suppliers on each of the contracts, determined the quantity and quality of those materials, negotiated the price, and often drafted a purchase order for Perdel or ASI to put on their letterhead, the governments contended. That kind of conduct violates federal and state provisions that are designed to give a share of the actual work of government-funded construction projects to minority- and women-owned businesses.
The settlement is neither an admission of liability by McHugh nor a concession by the state and federal governments that their contentions are not well founded, and McHugh expressly denies the claims.
The settlement was reached on behalf of the U.S. Department of Transportation, the Illinois Department of Transportation, the Illinois State Toll Highway Authority, and the Regional Transportation Authority.
The separate three-year administrative monitoring settlement and compliance agreement was reached between McHugh and the Federal Transit Administration, the Federal Highway Administration, the U.S. and Illinois Transportation Departments and their procurement officers, and the City of Chicago. In exchange for the government entities’ agreement not to pursue any suspension or debarment action against McHugh for the covered conduct, McHugh agreed to implement a corporate compliance program and appoint a compliance officer who is knowledgeable about DBE programs. The company also agreed to retain an independent monitor to evaluate McHugh’s performance and submit periodic reports to the government agencies and officials, and to make six presentations to those agencies and officials to discuss and promote compliant policies and procedures for working with DBE firms.
Helly Nahmad Sentenced to 1 Year and 1 Day for Being a Leader of an International, Multi-Million-Dollar Illegal Sports Gambling Business
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HILLEL NAHMAD, a/k/a “Helly,” was sentenced in Manhattan federal court to one year and one day in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. NAHMAD was also ordered to forfeit $6,427,000 and all his right, title, and interest in the painting Carnaval à Nice, 1937, by Raoul Dufy, to the United States. He was sentenced by U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “For art gallery owner Helly Nahmad, running a multi-million-dollar illegal sports gambling business came with a steep price, forfeiture of over $6 million and time behind bars—a punishment he likely never pictured.”
According to the indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including his sentencing:
NAHMAD operates the Helly Nahmad Gallery out of the Carlyle Hotel in New York, New York. NAHMAD and defendant Illya Trincher operated and led a nationwide illegal gambling business in New York City and Los Angeles that catered primarily to multi-millionaire and billionaire clients. As part of this business, the organization ran a high-stakes, illegal sportsbook that utilized several online gambling websites operating illegally in the United States. The organization booked bets that were often in the hundreds of thousands of dollars, and at times a million dollars, on a single sporting event. The organization also made millions of dollars of sports bets each year. NAHMAD was the primary source of financing for the illegal gambling business, and he was entitled to a substantial share of its profits.
Twenty-eight defendants in this case have pled guilty, and two have entered into deferred prosecution agreements. The defendants who have pled to date have agreed to forfeit, in total, more than $68 million. The following defendants have pled guilty, and have been sentenced or await sentencing:
Manhattan U.S. Attorney Preet Bharara said: “For art gallery owner Helly Nahmad, running a multi-million-dollar illegal sports gambling business came with a steep price, forfeiture of over $6 million and time behind bars—a punishment he likely never pictured.”
According to the indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including his sentencing:
NAHMAD operates the Helly Nahmad Gallery out of the Carlyle Hotel in New York, New York. NAHMAD and defendant Illya Trincher operated and led a nationwide illegal gambling business in New York City and Los Angeles that catered primarily to multi-millionaire and billionaire clients. As part of this business, the organization ran a high-stakes, illegal sportsbook that utilized several online gambling websites operating illegally in the United States. The organization booked bets that were often in the hundreds of thousands of dollars, and at times a million dollars, on a single sporting event. The organization also made millions of dollars of sports bets each year. NAHMAD was the primary source of financing for the illegal gambling business, and he was entitled to a substantial share of its profits.
Twenty-eight defendants in this case have pled guilty, and two have entered into deferred prosecution agreements. The defendants who have pled to date have agreed to forfeit, in total, more than $68 million. The following defendants have pled guilty, and have been sentenced or await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013, and was sentenced on November 25, 2013.
- William Barbalat pled guilty to gambling charges on August 14, 2013, and was sentenced on December 16, 2013.
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013, and was sentenced on December 19, 2014.
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013, and were sentenced on January 21, 2014, and January 6, 2014, respectively.
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013, and were sentenced on April 18, 2014, and February 14, 2014, respectively.
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013, and is scheduled to be sentenced on May 1, 2014.
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013, and was sentenced on February 25, 2014.
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013, and is scheduled to be sentenced on June 10, 2014.
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013, and was sentenced on March 25, 2014.
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013, and is scheduled to be sentenced on May 2, 2014.
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013, and was sentenced on April 9, 2014.
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013, and was sentenced on April 30, 2014.
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013, and was sentenced on April 30, 2014.
- Eugene Trincher pled guilty to gambling charges on November 14, 2013, and is scheduled to be sentenced on June 9, 2014.
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013, and was sentenced on April 29, 2014.
- Illya Trincher pled guilty to gambling charges on November 15, 2013, and is scheduled to be sentenced on May 8, 2014.
- Ronald Uy pled guilty to structuring financial transactions on November 25, 2013, and was sentenced on March 27, 2014.
- Moshe Oratz pled guilty to gambling charges on December 3, 2013, and was sentenced on April 9, 2014.
- Michael Sall pled guilty to interstate travel in aid of an unlawful activity (illegal gambling) and Jonathan Hirsch pled guilty to gambling charges on December 4, 2013. Sall was sentenced on April 18, 2014, and Hirsch is scheduled to be sentenced on May 9, 2014.
- Noah Siegel pled guilty to gambling charges on December 5, 2013, and was sentenced on April 10, 2014.
- Molly Bloom pled guilty to gambling charges on December 12, 2013, and is scheduled to be sentenced on May 2, 2014.
- Alexander Katchaloff pled guilty to gambling charges on January 16, 2014, and is scheduled to be sentenced on May 20, 2014.
- Donald McCalmont, John Jarekci, a/k/a “John Hanson,” and Abraham Mosseri pled guilty to making a fraudulent tax statement, failing to file a tax return, and causing a financial institution to participate in a lottery related matter, respectively, on January 24, 2014, and are scheduled to be sentenced on May 29, 2014, May 28, 2014, and May 21, 2014, respectively.
- William Edler and Peter Feldman entered into deferred prosecution agreements on April 11, 2014.
638 gang members arrested during #ProjectSouthBound Operation
More than 600 gang members and associates from 145 different gangs were arrested in 179 cities across the U.S. during Project Southbound, a month-long operation executed by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), which targeted gangs affiliated with the Sureños.
The Sureños, also known as Sur 13, is a transnational criminal street gang that originated in Southern California with hundreds of cliques around the United States. The Sureños and their affiliates pay tribute to the Mexican Mafia and the number “13” is their symbol signifying “M” in the alphabet for Mexican Mafia. Membership and cliques associated with the Sureños are expanding faster than any other national-level gang in the United States, according to the U.S. Department of Justice’s National Gang Intelligence Center’s 2011 National Gang Threat Assessment. Sureños gang members are involved in a myriad of criminal activity, including murder, extortion, narcotics trafficking, human trafficking, prostitution and other crimes with a nexus to the border.
Through Project Southbound, which ran March 12 to April 13, HSI special agents worked with 150 federal, state and local law enforcement partners to apprehend individuals from various gangs affiliated with the Sureños. More than 73 percent of those arrested during this HSI National Gang Unit-led operation were members or associates of the Sureños.
In addition to the 638 gang members and associates, HSI agents also arrested – or assisted in the arrest of – 119 other individuals on federal and/or state criminal violations and administrative immigration violations, for a total of 757 arrests.
“Project Southbound is the largest-ever ICE operation targeting the Sureños gang,” said ICE Principal Deputy Assistant Secretary Thomas S. Winkowski. “This gang now has more than 30,000 members in the United States and its numbers are growing. Targeting transnational gangs like the Sureños is a top priority for ICE and we will continue to disrupt and dismantle the violence and criminal activities that they inflict upon our neighborhoods.”
Of the 638 gang members or associates arrested: 525 were charged with criminal offenses; 113 were arrested administratively for immigration violations; 414 had violent criminal histories, including seven individuals wanted for murder and five wanted for rape or sexual assault; and 256 were foreign nationals.
Among the Sureños gang members or associates arrested during Project Southbound were:
Those arrested during Project Southbound came from 21 countries in South and Central America, Asia, Africa and the Caribbean. Of the total 757 arrested, 678 were males and 79 were females.
HSI special agents also seized 54 firearms, 13.36 pounds of methamphetamine, 82.76 pounds of marijuana, 3.075 pounds of cocaine, 1.44 pounds of heroin, more than $166,000 in U.S currency and 10 vehicles during Project Southbound.
The Sureños, also known as Sur 13, is a transnational criminal street gang that originated in Southern California with hundreds of cliques around the United States. The Sureños and their affiliates pay tribute to the Mexican Mafia and the number “13” is their symbol signifying “M” in the alphabet for Mexican Mafia. Membership and cliques associated with the Sureños are expanding faster than any other national-level gang in the United States, according to the U.S. Department of Justice’s National Gang Intelligence Center’s 2011 National Gang Threat Assessment. Sureños gang members are involved in a myriad of criminal activity, including murder, extortion, narcotics trafficking, human trafficking, prostitution and other crimes with a nexus to the border.
Through Project Southbound, which ran March 12 to April 13, HSI special agents worked with 150 federal, state and local law enforcement partners to apprehend individuals from various gangs affiliated with the Sureños. More than 73 percent of those arrested during this HSI National Gang Unit-led operation were members or associates of the Sureños.
In addition to the 638 gang members and associates, HSI agents also arrested – or assisted in the arrest of – 119 other individuals on federal and/or state criminal violations and administrative immigration violations, for a total of 757 arrests.
“Project Southbound is the largest-ever ICE operation targeting the Sureños gang,” said ICE Principal Deputy Assistant Secretary Thomas S. Winkowski. “This gang now has more than 30,000 members in the United States and its numbers are growing. Targeting transnational gangs like the Sureños is a top priority for ICE and we will continue to disrupt and dismantle the violence and criminal activities that they inflict upon our neighborhoods.”
Of the 638 gang members or associates arrested: 525 were charged with criminal offenses; 113 were arrested administratively for immigration violations; 414 had violent criminal histories, including seven individuals wanted for murder and five wanted for rape or sexual assault; and 256 were foreign nationals.
Among the Sureños gang members or associates arrested during Project Southbound were:
- Cesar Lisandro Anaya, 27, an El Salvadoran national and an 18th Street gang member, arrested in Dallas, Texas, on immigration-related charges. He is wanted in El Salvador on felony warrants for aggravated homicide, extortion, and illicit groupings (gang activity).
- Nine MS-13 gang members arrested on RICO charges filed in the District of Maryland stemming from their involvement in multiple criminal acts including murder, assault, extortion and prostitution, in furtherance of MS-13.
- Richard Allen Cotinola, a U.S. citizen and Brewtown Locos gang member, arrested in New Mexico on an outstanding state warrant for violation of parole related to a previous conviction for aggravated burglary with a weapon. He has previous convictions for aggravated burglary with a weapon and armed robbery.
- A father and son arrested in San Francisco on state narcotics and firearms charges following the execution of state search warrants on the father’s property. The father, a Sureños gang associate and previously deported aggravated felon, accused of supplying large quantities of high-quality, commercially-grown marijuana to Sureños and Latin Kings gang members. During these arrests, HSI agents seized 4,669 marijuana plants, 25 pounds of processed marijuana, an AR-15 rifle, a stolen Glock handgun, four diesel generators, four vehicles and $85,635 in cash.
Those arrested during Project Southbound came from 21 countries in South and Central America, Asia, Africa and the Caribbean. Of the total 757 arrested, 678 were males and 79 were females.
HSI special agents also seized 54 firearms, 13.36 pounds of methamphetamine, 82.76 pounds of marijuana, 3.075 pounds of cocaine, 1.44 pounds of heroin, more than $166,000 in U.S currency and 10 vehicles during Project Southbound.
Wednesday, April 30, 2014
Invest Your Money Wisely: Tips for Consumers
- Be extremely cautious about unsolicited offers to invest.
- Don’t believe everything you’re told. Take the time to do your own research on the investment’s potential…and on the person making the offer.
- Be wary of an investment opportunity that offers unusually high yields.
- Check with federal and state securities regulators to find out if there have been any complaints against the company or person you’re thinking of doing business with.
- Request written financial information—such as a prospectus, annual reports, or financial statements—then compare the written information to what you were told.
- Check with a trusted financial adviser, broker, or attorney about any investments you are considering.
- And if you think you’ve been scammed, report it to the Securities and Exchange Commission, your state’s securities regulator, or a law enforcement agency.
Tuesday, April 29, 2014
The Despicable Story of Vernon Matthews and His Defrauding of Military Personnel and Their Dependents
They are our nation’s heroes—often risking their lives abroad to protect us at home. Which makes what one Virginia con man did all the more despicable…defrauding military personnel and their dependents in an investment fraud scheme. But one of his victims came forward and filed a complaint. And after a joint investigation conducted by the Richmond offices of the FBI and the U.S. Postal Inspection Service (USPIS)—under the auspices of the Virginia Financial and Securities Fraud Task Force—Vernon Matthews was charged in the scheme, pled guilty, and was recently sentenced to a federal prison term.
Matthews operated a company called First Capital Group (FCG), located in Virginia Beach. He had a license to sell insurance, not to give investment advice or handle securities—but that didn’t stop him from doing so. Starting in 2010 and continuing until early 2013, Matthews solicited members of the military and their families to make investments with FCG.
Often times, he set up booths at establishments known to be frequented by the military—like restaurants located near military bases—and offered promotions, like a free night at a hotel. And when potential victims came to his office to claim the prizes, Matthews would pitch them on an investment. And he lied through his teeth while doing it. Among Matthews’ misrepresentations:
In one particular instance, a U.S. Naval Academy graduate who invested $20,000 with FCG tried withdrawing funds. Matthews mailed a check that bounced. After being notified about it, he mailed another one…and instructed the victim not to deposit the check until he could put the funds into his account. That, of course, never happened.
Matthews received more than $235,600 from victim investors. Only a few of his victims were able to recover any money, so at his sentencing, the judge ordered Matthews to repay the outstanding balance of $204,465 in restitution to his victims.
The Bureau joined the investigation in April 2013. In July 2013—after an extensive review of financial records, documents, and e-mails, along with interviews of dozens of victims and other witnesses—Matthews was arrested.
The Virginia Financial and Securities Fraud Task Force was initially launched in 2010 to establish a partnership between criminal investigators—including the FBI and the USPIS—and civil regulators to investigate and prosecute complex financial fraud cases in Virginia. The state task force is also an investigative arm of the national Financial Fraud Enforcement Task Force, an interagency group created to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. And while law enforcement, civil regulators, and prosecutors are doing all they can to address financial crimes, you should educate yourself and your loved ones on how to avoid becoming a victim of financial fraud.
Matthews operated a company called First Capital Group (FCG), located in Virginia Beach. He had a license to sell insurance, not to give investment advice or handle securities—but that didn’t stop him from doing so. Starting in 2010 and continuing until early 2013, Matthews solicited members of the military and their families to make investments with FCG.
Often times, he set up booths at establishments known to be frequented by the military—like restaurants located near military bases—and offered promotions, like a free night at a hotel. And when potential victims came to his office to claim the prizes, Matthews would pitch them on an investment. And he lied through his teeth while doing it. Among Matthews’ misrepresentations:
- He received compensation from the U.S. government for his investment advice and services (he did not);
- He would invest his clients’ funds in certificates of deposits, mutual funds, or something similar (Matthews misappropriated all the funds for his own personal or business use);
- FCG was affiliated with several reputable investment companies and funds (it was not);
- The investment provided a good return—anywhere from 4 to 300 percent—and was low-risk or no-risk (it did not and was not).
In one particular instance, a U.S. Naval Academy graduate who invested $20,000 with FCG tried withdrawing funds. Matthews mailed a check that bounced. After being notified about it, he mailed another one…and instructed the victim not to deposit the check until he could put the funds into his account. That, of course, never happened.
Matthews received more than $235,600 from victim investors. Only a few of his victims were able to recover any money, so at his sentencing, the judge ordered Matthews to repay the outstanding balance of $204,465 in restitution to his victims.
The Bureau joined the investigation in April 2013. In July 2013—after an extensive review of financial records, documents, and e-mails, along with interviews of dozens of victims and other witnesses—Matthews was arrested.
The Virginia Financial and Securities Fraud Task Force was initially launched in 2010 to establish a partnership between criminal investigators—including the FBI and the USPIS—and civil regulators to investigate and prosecute complex financial fraud cases in Virginia. The state task force is also an investigative arm of the national Financial Fraud Enforcement Task Force, an interagency group created to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. And while law enforcement, civil regulators, and prosecutors are doing all they can to address financial crimes, you should educate yourself and your loved ones on how to avoid becoming a victim of financial fraud.
Sunday, April 27, 2014
3 Chicago Men Indicted for Their Alleged Roles in a Series of Armed Robberies of 10 Retail Businesses in Chicago and Suburbs
Three Chicago men are facing federal charges for their alleged roles in a series of armed robberies of various retail businesses in Chicago and several suburbs late last year and early this year, federal law enforcement officials announced. The indictments charge nine armed robberies and an attempted armed robbery of gas stations, convenience stores, jewelry stores, and others businesses in Chicago, Arlington Heights, Berwyn, Glenview, Hometown, Lincolnwood, North Chicago, Skokie, and Wilmette between October 2013 and February this year.
Two defendants, Tyree Craig, 29, and Jacobi Pickett, 21, were charged together in a 13-count indictment returned by a federal grand jury. They were each charged with one count of robbery conspiracy, eight counts of robbery, and two counts of brandishing a firearm during a violent crime, and Pickett alone was charged with being a felon in possession of a firearm.
Craig was also charged with Jarryl Williams, 42, in a separate four-count federal indictment involving the January 10 armed robbery, involving four suspects, of James and Williams Jewelers, located at 7020 West Cermak Road in Berwyn. Craig and Williams were each charged with one count of robbery conspiracy, attempted robbery, and brandishing a firearm. Williams, who was shot by a store security officer, was also charged with being a felon in possession of a firearm with a partially obliterated serial number.
Craig and Williams have each pleaded not guilty to the charges involving the Berwyn attempted robbery. Craig and Pickett are scheduled to be arraigned on May 1 in U.S. District Court. Craig and Williams were initially arrested previously on related state charges but were later transferred to federal custody, where they remain. Pickett has been in federal custody since he was arrested in March on a criminal complaint.
According to the Craig and Pickett indictment returned yesterday, both defendants allegedly participated in the following robberies:
According to court documents, the charges stem from an FBI investigation of a series of similar armed robberies and attempted robberies last fall and winter of retail stores and businesses in Chicago, as well as northern and western suburbs. Typically, one or more participants entered each business and brandished a black semi-automatic handgun while demanding money or jewelry and, in some instances Newport cigarettes. The participant or participants attempted to disguise their appearance but video surveillance provided a similar pattern of clothing and appearance.
The investigation is continuing.
Each count of robbery and robbery conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years in prison and a maximum of life. Williams and Picket also faces a maximum 10-year sentence on the felon in possession charges.
Two defendants, Tyree Craig, 29, and Jacobi Pickett, 21, were charged together in a 13-count indictment returned by a federal grand jury. They were each charged with one count of robbery conspiracy, eight counts of robbery, and two counts of brandishing a firearm during a violent crime, and Pickett alone was charged with being a felon in possession of a firearm.
Craig was also charged with Jarryl Williams, 42, in a separate four-count federal indictment involving the January 10 armed robbery, involving four suspects, of James and Williams Jewelers, located at 7020 West Cermak Road in Berwyn. Craig and Williams were each charged with one count of robbery conspiracy, attempted robbery, and brandishing a firearm. Williams, who was shot by a store security officer, was also charged with being a felon in possession of a firearm with a partially obliterated serial number.
Craig and Williams have each pleaded not guilty to the charges involving the Berwyn attempted robbery. Craig and Pickett are scheduled to be arraigned on May 1 in U.S. District Court. Craig and Williams were initially arrested previously on related state charges but were later transferred to federal custody, where they remain. Pickett has been in federal custody since he was arrested in March on a criminal complaint.
According to the Craig and Pickett indictment returned yesterday, both defendants allegedly participated in the following robberies:
- Dunkin Donuts, 3910 West Touhy Ave., Lincolnwood, on October 20, 2013
- Phillips 66 gas station, 1234 Sheridan Rd., North Chicago, on October 21, 2013
- Shell gas station, 9600 Crawford Ave., Skokie, on Oct. 21, 2013; Shell gas station, 3 East Algonquin Rd., Arlington Heights, on October 31, 2013
- Marathon gas station, 242 Waukegan Rd., Glenview, on October 31, 2013
- Shell gas station, 5055 Touhy Ave., Skokie, on Nov. 30, 2013; and Seven-Eleven, 500 Skokie Blvd., Wilmette, on November 30, 2013
- Craig alone was also charged with the December 13, 2013, robbery of Ted’s Jewelers, 5334 South Archer Ave., Chicago
- Pickett alone was charged with the February 19, 2014, robbery of EZ Pawn store, 4080 Southwest Hwy., Hometown, in which jewelry valued at approximately $73,000 was stolen
According to court documents, the charges stem from an FBI investigation of a series of similar armed robberies and attempted robberies last fall and winter of retail stores and businesses in Chicago, as well as northern and western suburbs. Typically, one or more participants entered each business and brandished a black semi-automatic handgun while demanding money or jewelry and, in some instances Newport cigarettes. The participant or participants attempted to disguise their appearance but video surveillance provided a similar pattern of clothing and appearance.
The investigation is continuing.
Each count of robbery and robbery conspiracy carries a maximum penalty of 20 years in prison and a $250,000 fine, and each count of brandishing a firearm carries a consecutive, mandatory minimum of seven years in prison and a maximum of life. Williams and Picket also faces a maximum 10-year sentence on the felon in possession charges.
Buffy A. Bastien Indicted on Bank Embezzlement Charges
Buffy A. Bastien, 41, of Murphysboro, Illinois, was indicted on April 8, 2014, on bank embezzlement charges in an indictment returned by a federal grand jury sitting in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Bastien was charged in a one count indictment that charges that from about 2010 to on or about February 23, 2014, in Jackson County, Bastien, being an officer and employee of The Bank of Carbondale, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud The Bank of Carbondale, did willfully embezzle the sum of approximately $229,221.80 of the moneys or funds intrusted to the custody or care of The Bank of Carbondale.
Bastien faces a possible penalty of up to 30 years’ imprisonment, up to $1,000,000 fine, and supervised release of up to five years.
Bastien was charged in a one count indictment that charges that from about 2010 to on or about February 23, 2014, in Jackson County, Bastien, being an officer and employee of The Bank of Carbondale, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud The Bank of Carbondale, did willfully embezzle the sum of approximately $229,221.80 of the moneys or funds intrusted to the custody or care of The Bank of Carbondale.
Bastien faces a possible penalty of up to 30 years’ imprisonment, up to $1,000,000 fine, and supervised release of up to five years.
Sheriff’s Office Deputies, David Benjamin and Jeff Alan Poole, Charged with Conspiracy
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service-Criminal Investigations (IRS-CI); and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), announce the filing of charges against David Benjamin, 48, of Boca Raton, and Jeff Alan Poole, 47, of Weston, for conspiring to commit crimes in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler P.A. (RRA).
In a criminal information filed earlier, Benjamin was charged with conspiracy to commit extortion and to violate civil rights, in violation of Title 18, United States Code, Section 371. In a separate criminal information, Poole was charged with conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. The charges allege that, during the relevant time period, both defendants were employed by the Broward Sheriff’s Office. Benjamin was a lieutenant and served as executive officer to then Sheriff Al Lamberti. Poole was a detective assigned to the Strategic Investigations Division.
The charging documents allege that both defendants agreed to utilize their respective positions within BSO unlawfully to further the interests of RRA, its chairman and CEO Scott W. Rothstein, and other persons associated with Rothstein. Specifically, the charging documents allege that Benjamin received approximately $185,000 in money and other things of value from Rothstein and RRA in return for providing his assistance when needed, including arranging with Poole to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her, arranging to use force and threats of force against the boyfriend of an escort who was threatening to expose the illicit relationship that existed between the escort and one of the partners at RRA, and assisting Rothstein in loading cash and jewelry onto a private airplane that was used by Rothstein to flee to Morocco on October 27, 2009, as the Ponzi scheme being conducted through RRA was beginning to unravel.
U.S. Attorney Wifredo A. Ferrer stated, “David Benjamin and Jeff Poole used their official positions as law enforcement officers to commit civil rights abuses to further the interests of Scott Rothstein and others associated with Rothstein. When law enforcement officers betray the trust of the people, it strikes at the very core of our democracy. The informations filed today charging Benjamin and Poole should serve as a reminder that no one is above the law. When law enforcement officers violate the public’s trust, they will be held accountable. Benjamin and Poole are the 19th and 20th accomplices, respectively, to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”
“When David Benjamin and Jeff Alan Poole began to use their official positions to further the illegal schemes of Rothstein and his cronies, they crossed a very bright line,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Their criminal misconduct undermined the public’s trust in law enforcement. As such, the FBI will continue to work with our partners to remove those law enforcement officers who violate the law. The FBI, in particular, would like to thank BSO for their close partnership investigating this matter.”
IRS-CI SAC José A. Gonzalez stated, “Law enforcement officers and individuals in positions of our citizens’ trust are held to an even higher standard than the general public. It’s a sad day when a lieutenant and a detective of the Broward County Sheriff’s Office who are sworn to uphold the law, allegedly misuse their positions by engaging in criminal acts. IRS-CI, together with its law enforcement partners, will continue to ensure that no one operates above the law and are held accountable for their actions.”
BSO Sheriff Scott Israel stated, “Every time a law enforcement officer is implicated in a crime, it’s a blow to our profession. This indictment tarnishes the image of honest, hard-working law enforcement officers everywhere. My immediate action after taking office was to suspend Deputy Poole and Lieutenant Benjamin based on an ongoing federal investigation. I applaud the diligence and professionalism displayed by our federal partners, and we will continue working closely with them to ensure justice is served.”
In a criminal information filed earlier, Benjamin was charged with conspiracy to commit extortion and to violate civil rights, in violation of Title 18, United States Code, Section 371. In a separate criminal information, Poole was charged with conspiracy to violate civil rights, in violation of Title 18, United States Code, Section 241. The charges allege that, during the relevant time period, both defendants were employed by the Broward Sheriff’s Office. Benjamin was a lieutenant and served as executive officer to then Sheriff Al Lamberti. Poole was a detective assigned to the Strategic Investigations Division.
The charging documents allege that both defendants agreed to utilize their respective positions within BSO unlawfully to further the interests of RRA, its chairman and CEO Scott W. Rothstein, and other persons associated with Rothstein. Specifically, the charging documents allege that Benjamin received approximately $185,000 in money and other things of value from Rothstein and RRA in return for providing his assistance when needed, including arranging with Poole to arrest the ex-wife of an attorney who was engaged in a child custody dispute with her, arranging to use force and threats of force against the boyfriend of an escort who was threatening to expose the illicit relationship that existed between the escort and one of the partners at RRA, and assisting Rothstein in loading cash and jewelry onto a private airplane that was used by Rothstein to flee to Morocco on October 27, 2009, as the Ponzi scheme being conducted through RRA was beginning to unravel.
U.S. Attorney Wifredo A. Ferrer stated, “David Benjamin and Jeff Poole used their official positions as law enforcement officers to commit civil rights abuses to further the interests of Scott Rothstein and others associated with Rothstein. When law enforcement officers betray the trust of the people, it strikes at the very core of our democracy. The informations filed today charging Benjamin and Poole should serve as a reminder that no one is above the law. When law enforcement officers violate the public’s trust, they will be held accountable. Benjamin and Poole are the 19th and 20th accomplices, respectively, to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”
“When David Benjamin and Jeff Alan Poole began to use their official positions to further the illegal schemes of Rothstein and his cronies, they crossed a very bright line,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Their criminal misconduct undermined the public’s trust in law enforcement. As such, the FBI will continue to work with our partners to remove those law enforcement officers who violate the law. The FBI, in particular, would like to thank BSO for their close partnership investigating this matter.”
IRS-CI SAC José A. Gonzalez stated, “Law enforcement officers and individuals in positions of our citizens’ trust are held to an even higher standard than the general public. It’s a sad day when a lieutenant and a detective of the Broward County Sheriff’s Office who are sworn to uphold the law, allegedly misuse their positions by engaging in criminal acts. IRS-CI, together with its law enforcement partners, will continue to ensure that no one operates above the law and are held accountable for their actions.”
BSO Sheriff Scott Israel stated, “Every time a law enforcement officer is implicated in a crime, it’s a blow to our profession. This indictment tarnishes the image of honest, hard-working law enforcement officers everywhere. My immediate action after taking office was to suspend Deputy Poole and Lieutenant Benjamin based on an ongoing federal investigation. I applaud the diligence and professionalism displayed by our federal partners, and we will continue working closely with them to ensure justice is served.”
Tuesday, April 22, 2014
Brandon James Sentenced to 81 Months in IRS Fraudulent Refund Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Daniel C. Alexander, Chief, Boca Raton Police Department, announce that Brandon James, of Miami, was sentenced by U.S. District Judge Daniel T.K. Hurley to 81 months in prison, followed by two years of supervised release. James was also ordered to pay restitution in the amount of $382,444 and a special assessment of $300.
According to court documents and statements made in court, James was involved in cashing out fraudulent federal income tax refunds that had been placed electronically onto debit cards. James and his co-conspirators, Laron Larkin and Eric Fussell, attempted to defraud the IRS of more than $862,000 in fraudulent income tax refunds based on at least 121 stolen identities. The IRS paid approximately $382,484 on these refund requests.
James pled guilty earlier to conspiracy to steal government monies, in violation of Title 18, United States Code, Section 371 (count one), theft of government funds, in violation of Title 18, United States Code, Section 641 (count four), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A (count nine).
Co-defendant Larkin was sentenced on October 7, 2013, to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents and statements made in court, James was involved in cashing out fraudulent federal income tax refunds that had been placed electronically onto debit cards. James and his co-conspirators, Laron Larkin and Eric Fussell, attempted to defraud the IRS of more than $862,000 in fraudulent income tax refunds based on at least 121 stolen identities. The IRS paid approximately $382,484 on these refund requests.
James pled guilty earlier to conspiracy to steal government monies, in violation of Title 18, United States Code, Section 371 (count one), theft of government funds, in violation of Title 18, United States Code, Section 641 (count four), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A (count nine).
Co-defendant Larkin was sentenced on October 7, 2013, to 36 months and one day in prison, to be followed by three years of supervised release. Larkin pled guilty to one count of conspiracy to steal monies of the United States, in violation of Title 18, United States Code, Section 641, the conspiracy being a violation of Title 18, United States Code, Section 371; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
#Chiraq - Gangs Have Turned Chicago into a War Zone, #MurderCapitalUSA, 45 Shot on Easter Weekend, 37 More the Weekend Before
President Obama may have gotten our troops out of Iraq, but the gunfire in his hometown of Chicago is still earning it a searing nickname coined by young people who live there.
Chiraq.
On Easter weekend, 45 people were shot in the city, six of them children. Five youngsters under the age of 15—four girls and a boy—were shot in a playground where they had gone after Easter services at a nearby church.
Witnesses agree that a car pulled up and one of the occupants asked the youngsters if they were in a gang. There is some dispute about whether the youngsters even got a chance to say no before the people in the car started shooting.
The most seriously wounded, 11-year-old Tymisha Washington, was listed in critical condition with multiple gunshot wounds. She is expected to survive.
“Prayers Going Up Blessings Coming Down,” read a posting on her aunt’s Facebook page.
A Facebook argument had apparently sparked a completely unrelated shooting at the start of the weekend. Best friends Jordan Means, 16, and Anthony Bankhead, 18, got into the online spat with a man in his 30s. The man is said to have followed his final post by appearing in the flesh and shooting the two teens to death.
Two other men were fatally shot later in the weekend as they sat in a car that was also occupied by two kids, ages 3 and 7. The children were physically unharmed but no doubt will join those who are as mentally scarred by living in Chicago as were some combat veterans who returned from the war in Iraq. And this bloody Easter weekend was preceded by a weekend in which 37 people were shot, four of them fatally.
FBI Director James Comey happened to be in Chicago the following Monday, and he ascribed much of the violence to the gang culture so deeply ingrained in the city. But Comey had little to say about what Chicago Police Superintendent Garry McCarthy recognizes as the core problem.
“Until we do something about guns, don’t expect things to change overnight,” McCarthy said at a press conference that same day.
McCarthy noted that Chicago cops have seized 1,500 illegal guns so far this year, but the people caught with the weapons are all too often back on the street all too soon. “It’s like running on a hamster wheel,” McCarthy said of the effort to grapple with the problem. “We’re drinking from a fire hose, seizing these guns, and people are back out on the street. They’re not learning that carrying a firearm is going to have a serious impact on their lives.”
McCarthy invoked the memory of Hadiya Pendleton, the 15-year-old who was killed by a stray round in 2013, just days after performing at Obama’s second inauguration. McCarthy noted that her suspected killer had been at liberty despite having been convicted of illegal gun possession just two months before.
“If he’s not out on the street, Hadiya Pendleton is out there being an honor student and continuing on with her life,” McCarthy said.
McCarthy emphasized that the Chicago Police Department is pursuing a wide range of strategies to stem the violence, much of which is gang-related. And the murder rate is actually down this year. But even the smartest policing by the most dedicated cops can only do so much in the absence of effective gun laws.
“If you don’t go to jail for gun possession, you continue to carry guns,” McCarthy said. “You continue to carry guns, and people get shot.”
Other people who have gotten shot in Chicago in recent days include 17-year-old Ronald Hayes, who was expected to be the first in his family to graduate from high school and who had promised to take his mother to the prom because she never had the opportunity to attend one. He was gunned down in February as he shoveled snow outside a neighbor’s home.
There was also 17-year-old Gakirah Barnes. Her Twitter moniker was @tyquannassassin, apparently in honor of a 13-year-old relative named Tyquann Tyler who was killed by a stray bullet in 2012. Barnes reportedly was allied with the rapper Lil Jay and the late rapper Lil JoJo, who was killed in 2012 by a not at all stray round after releasing video dissing Chief Keef, the rapper. Keef’s 30-year-old cousin Mario “BigGlo” Hess was shot to death on April 9. Barnes tweeted a reference to a Notorious B.I.G. lyric the next day.
“u Nobody until Somebody kill u u dats jst real Shyt.”
A friend quickly responded.
“More bodies BITCH This Chiraq.”
The following afternoon, Barnes was herself shot to death, hit as many as nine times. She was to be buried near her father, who reportedly was shot death on an Easter 16 years and thousands of murders ago.
Her death was followed by the April 15 shooting of Lil Jojo’s 16-year-old cousin Keno Blass. Keef’s cousin was buried on Friday, with the star rapper serving as a pallbearer. But if a rap war of sorts is behind some of the recent killings and gang rivalries are behind many more and a Facebook spat led to two of the murders, the common denominator in all the shootings is guns.
The war that now demands the president’s attention is the one in Chiraq.
Thanks to Michael Daly.
Chiraq.
On Easter weekend, 45 people were shot in the city, six of them children. Five youngsters under the age of 15—four girls and a boy—were shot in a playground where they had gone after Easter services at a nearby church.
Witnesses agree that a car pulled up and one of the occupants asked the youngsters if they were in a gang. There is some dispute about whether the youngsters even got a chance to say no before the people in the car started shooting.
The most seriously wounded, 11-year-old Tymisha Washington, was listed in critical condition with multiple gunshot wounds. She is expected to survive.
“Prayers Going Up Blessings Coming Down,” read a posting on her aunt’s Facebook page.
A Facebook argument had apparently sparked a completely unrelated shooting at the start of the weekend. Best friends Jordan Means, 16, and Anthony Bankhead, 18, got into the online spat with a man in his 30s. The man is said to have followed his final post by appearing in the flesh and shooting the two teens to death.
Two other men were fatally shot later in the weekend as they sat in a car that was also occupied by two kids, ages 3 and 7. The children were physically unharmed but no doubt will join those who are as mentally scarred by living in Chicago as were some combat veterans who returned from the war in Iraq. And this bloody Easter weekend was preceded by a weekend in which 37 people were shot, four of them fatally.
FBI Director James Comey happened to be in Chicago the following Monday, and he ascribed much of the violence to the gang culture so deeply ingrained in the city. But Comey had little to say about what Chicago Police Superintendent Garry McCarthy recognizes as the core problem.
“Until we do something about guns, don’t expect things to change overnight,” McCarthy said at a press conference that same day.
McCarthy noted that Chicago cops have seized 1,500 illegal guns so far this year, but the people caught with the weapons are all too often back on the street all too soon. “It’s like running on a hamster wheel,” McCarthy said of the effort to grapple with the problem. “We’re drinking from a fire hose, seizing these guns, and people are back out on the street. They’re not learning that carrying a firearm is going to have a serious impact on their lives.”
McCarthy invoked the memory of Hadiya Pendleton, the 15-year-old who was killed by a stray round in 2013, just days after performing at Obama’s second inauguration. McCarthy noted that her suspected killer had been at liberty despite having been convicted of illegal gun possession just two months before.
“If he’s not out on the street, Hadiya Pendleton is out there being an honor student and continuing on with her life,” McCarthy said.
McCarthy emphasized that the Chicago Police Department is pursuing a wide range of strategies to stem the violence, much of which is gang-related. And the murder rate is actually down this year. But even the smartest policing by the most dedicated cops can only do so much in the absence of effective gun laws.
“If you don’t go to jail for gun possession, you continue to carry guns,” McCarthy said. “You continue to carry guns, and people get shot.”
Other people who have gotten shot in Chicago in recent days include 17-year-old Ronald Hayes, who was expected to be the first in his family to graduate from high school and who had promised to take his mother to the prom because she never had the opportunity to attend one. He was gunned down in February as he shoveled snow outside a neighbor’s home.
There was also 17-year-old Gakirah Barnes. Her Twitter moniker was @tyquannassassin, apparently in honor of a 13-year-old relative named Tyquann Tyler who was killed by a stray bullet in 2012. Barnes reportedly was allied with the rapper Lil Jay and the late rapper Lil JoJo, who was killed in 2012 by a not at all stray round after releasing video dissing Chief Keef, the rapper. Keef’s 30-year-old cousin Mario “BigGlo” Hess was shot to death on April 9. Barnes tweeted a reference to a Notorious B.I.G. lyric the next day.
“u Nobody until Somebody kill u u dats jst real Shyt.”
A friend quickly responded.
“More bodies BITCH This Chiraq.”
The following afternoon, Barnes was herself shot to death, hit as many as nine times. She was to be buried near her father, who reportedly was shot death on an Easter 16 years and thousands of murders ago.
Her death was followed by the April 15 shooting of Lil Jojo’s 16-year-old cousin Keno Blass. Keef’s cousin was buried on Friday, with the star rapper serving as a pallbearer. But if a rap war of sorts is behind some of the recent killings and gang rivalries are behind many more and a Facebook spat led to two of the murders, the common denominator in all the shootings is guns.
The war that now demands the president’s attention is the one in Chiraq.
Thanks to Michael Daly.
Monday, April 21, 2014
Tokyo Vice: An American Reporter on the Police Beat in Japan
Tokyo Vice: An American Reporter on the Police Beat in Japan (Vintage Crime/Black Lizard)
is 
a riveting true-life tale of newspaper noir and Japanese organized crime from an American investigative journalist.
Jake Adelstein is the only American journalist ever to have been admitted to the insular Tokyo Metropolitan Police Press Club, where for twelve years he covered the dark side of Japan: extortion, murder, human trafficking, fiscal corruption, and of course, the yakuza. But when his final scoop exposed a scandal that reverberated all the way from the neon soaked streets of Tokyo to the polished Halls of the FBI and resulted in a death threat for him and his family, Adelstein decided to step down. Then, he fought back. In Tokyo Vice he delivers an unprecedented look at Japanese culture and searing memoir about his rise from cub reporter to seasoned journalist with a price on his head.
is a riveting true-life tale of newspaper noir and Japanese organized crime from an American investigative journalist.
Jake Adelstein is the only American journalist ever to have been admitted to the insular Tokyo Metropolitan Police Press Club, where for twelve years he covered the dark side of Japan: extortion, murder, human trafficking, fiscal corruption, and of course, the yakuza. But when his final scoop exposed a scandal that reverberated all the way from the neon soaked streets of Tokyo to the polished Halls of the FBI and resulted in a death threat for him and his family, Adelstein decided to step down. Then, he fought back. In Tokyo Vice he delivers an unprecedented look at Japanese culture and searing memoir about his rise from cub reporter to seasoned journalist with a price on his head.
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