Seven men and one woman have been charged with operating an illegal gambling business from several exclusive high roller villas at Caesars Palace from approximately June 6 to July 9, 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Wei Seng Phua, 50, Darren Wai Kit Phua, 22, Seng Chen Yong, 56, Wai Kin Yong, 22, all of Malaysia; Hui Tang, 44, of China; and Yan Zhang, 40, Yung Keung Fan, 46, and Herman Chun Sang Yeung, 36, all of Hong Kong, are charged in a criminal complaint and are scheduled to make initial court appearances before U.S. Magistrate Judge Carl W. Hoffman at 3:00 p.m. today. The defendants were arrested in Las Vegas on July 13, 2014, by law enforcement agents with the FBI and Nevada Gaming Control Board. Each defendant is charged with one count of unlawful transmission of wagering information and one count of operating an illegal gambling business. If convicted, they face up to two years in prison on the unlawful transmission count and up to five years in prison on the illegal gambling business count, as well as fines on each count of up to $250,000.
According to the criminal complaint, Wei Seng Phua, is known by law enforcement to be a high ranking member of the 14K Triad, an Asian organized crime group. On or about June 18, 2013, Phua was arrested in Macau, along with more than 20 other individuals, for operating an illegal sport book gambling business transacting illegal bets on the World Cup Soccer Tournament. Phua posted bail in Macau and was released. The complaint alleges that on June 23, 2014, Phua arrived in Las Vegas, Nev., to continue with his associates their illegal gambling business at a local casino. During early June 2014, three villas were reserved at a Caesars Palace at the request of Wei Seng Phua or one of his associates. Between June 6 and June 11, 2014, Phua and two of his associates, Seng Chen Yong and Hui Tang, checked into the villas. Phua and his associates allegedly requested that Caesars Palace install an unusually large amount of electronics equipment in the villas to support eight (8) Digital Subscriber Line (DSL) lines, and WiFi access. Caesars Palace installed and set up the equipment, but became concerned the equipment appeared to be a set-up for an illegal gambling operation. In one of the villas, computer screens were observed which looked similar to the ones in the casino’s sports book, including five stations and three monitors attached to each station. Each station’s computer tower was hooked up to a Century Link DSL line with voice over Internet protocol phones. Near the computer stations, there were three large screen televisions with service from Cox, Dish and Direct TV, each of which was tuned to World Cup soccer games. The Nevada Gaming Control Board, subsequently determined that the set-up was similar to a “wire room” where illegal wagers are made and monitored, and that the defendants were monitoring the World Cup and betting odds associated with World Cup soccer games in furtherance of operating a gambling business. Over the next month, law enforcement agents worked undercover and monitored the activity in the villas. On July 9, 2014, federal search warrants were executed at the three villas and law enforcement agents recovered gambling records, computer equipment, and other items. The defendants were arrested after it was determined that they were allegedly remotely controlling computers based overseas which allowed them to operate and manage their illegal gambling business from Las Vegas.
Tuesday, July 15, 2014
Sunday, July 13, 2014
Legalizing Soft Drugs to Fight #OrganizedCrime
Does caffeine lead to cocaine use? Obviously not. But if caffeine were outlawed, a black market would emerge. Drug gangs, which are highly skilled at operating outside of the law and have pre-existing distribution channels, would begin trafficking illegal caffeine pills. If people were forced to use black market distribution chains to obtain a mild stimulant, such as caffeine, they would almost certainly be more likely to opt for a stronger stimulant, such as cocaine.
Either people deal with drug dealers, or they don’t. If they do, the dealers are likely to try to upsell them on other products. Drug dealers are like any other salespeople: They want to obtain the highest profit margin possible. Cocaine sells at a much higher margin than caffeine pills would, even if caffeine were outlawed. Even if most people resisted the dealers’ insistence that cocaine would provide a better experience, some non-drug users would try it; some would even become addicted. Caffeine use would likely decline, while use of cocaine and other illicit drugs would increase.
The above hypothetical is analogous to the prohibition of marijuana. People often refer to marijuana as a gateway drug that leads to people using stronger drugs. Yet there is no intrinsic gateway effect from marijuana. But once you’re buying marijuana on the black market, it isn’t much of a step to purchase psychedelic mushrooms, cocaine or ecstasy. Once you have a dealer, he or she will try to sell you other drugs. Marijuana isn’t a gateway drug; but black market marijuana is.
Legalizing marijuana would seriously impact the bottom line of many criminal enterprises, as it accounts for around half of global drug gang profits. There’s no doubt these gangs would try to make up for this by pushing the drugs that remain illegal. However, legalized marijuana would disrupt the entire black market, since dealers would no longer be able to lure customers in by selling them weed, only to sell them something else later. They would have a much more difficult time engaging customers to begin with. And if dealing becomes unprofitable, gangs will have a hard time finding dealers to buy their wholesale products. While marijuana use would likely increase (though it actually decreased in Portugal after decriminalization), gang profits would decrease and the availability of other drug would go down as well.
One might argue from the above logic that all drugs should be legalized. That would be simplistic. Some drugs may pose such a threat to users and society that the trade-off of allowing gangs to profit off them from selling a small amount is preferable to legalizing them, even if that only means a marginal increase in usage. Drugs such as crystal meth fall into this category. A true harm-reduction approach to drugs would weigh both the costs of drug usage, and the cost of prohibition. Both can be substantial. We need a rational approach to making these calculations.
One way to go about this would be to create three categories of drugs. The first would be milder substances that are somewhat harmful, but are also widely used. Hard liquor, cigarettes and marijuana are substances that would occupy this category. The harm from the substances is less than the destruction resulting from prohibition. These drugs should be restricted to adult use and should carry specific excise taxes. The second category would include drugs that can be very harmful to users, but rarely fatal, and rarely cause significant externalities. The prime example is cocaine. The harm caused by cocaine rarely extends beyond users and their families. These drugs should be decriminalized, so that problem users can seek treatment without fear of legal repercussions.
The third category would include drugs that are extremely harmful to the users and society as a whole, such as crystal meth, and should remain illegal. While the sale of these drugs would continue to line the pockets of drug gangs, the harm from even a modest increase in people using them would be substantial. Gangs will always exist. But strangling their most benign revenue sources would reduce their ability to finance distribution of the worst drugs, as well as other evils, such as human trafficking.
Drug policy is often considered the domain of morality. It shouldn’t be. Issues of personal morality should not be legislated. But when public safety is at stake, it can make sense to crack down on certain drugs. A utilitarian, harm reduction approach to drug policy would be a vast improvement over the reckless, moralistic approach we have now.
Thanks to Steve Lafleur.
Either people deal with drug dealers, or they don’t. If they do, the dealers are likely to try to upsell them on other products. Drug dealers are like any other salespeople: They want to obtain the highest profit margin possible. Cocaine sells at a much higher margin than caffeine pills would, even if caffeine were outlawed. Even if most people resisted the dealers’ insistence that cocaine would provide a better experience, some non-drug users would try it; some would even become addicted. Caffeine use would likely decline, while use of cocaine and other illicit drugs would increase.
The above hypothetical is analogous to the prohibition of marijuana. People often refer to marijuana as a gateway drug that leads to people using stronger drugs. Yet there is no intrinsic gateway effect from marijuana. But once you’re buying marijuana on the black market, it isn’t much of a step to purchase psychedelic mushrooms, cocaine or ecstasy. Once you have a dealer, he or she will try to sell you other drugs. Marijuana isn’t a gateway drug; but black market marijuana is.
Legalizing marijuana would seriously impact the bottom line of many criminal enterprises, as it accounts for around half of global drug gang profits. There’s no doubt these gangs would try to make up for this by pushing the drugs that remain illegal. However, legalized marijuana would disrupt the entire black market, since dealers would no longer be able to lure customers in by selling them weed, only to sell them something else later. They would have a much more difficult time engaging customers to begin with. And if dealing becomes unprofitable, gangs will have a hard time finding dealers to buy their wholesale products. While marijuana use would likely increase (though it actually decreased in Portugal after decriminalization), gang profits would decrease and the availability of other drug would go down as well.
One might argue from the above logic that all drugs should be legalized. That would be simplistic. Some drugs may pose such a threat to users and society that the trade-off of allowing gangs to profit off them from selling a small amount is preferable to legalizing them, even if that only means a marginal increase in usage. Drugs such as crystal meth fall into this category. A true harm-reduction approach to drugs would weigh both the costs of drug usage, and the cost of prohibition. Both can be substantial. We need a rational approach to making these calculations.
One way to go about this would be to create three categories of drugs. The first would be milder substances that are somewhat harmful, but are also widely used. Hard liquor, cigarettes and marijuana are substances that would occupy this category. The harm from the substances is less than the destruction resulting from prohibition. These drugs should be restricted to adult use and should carry specific excise taxes. The second category would include drugs that can be very harmful to users, but rarely fatal, and rarely cause significant externalities. The prime example is cocaine. The harm caused by cocaine rarely extends beyond users and their families. These drugs should be decriminalized, so that problem users can seek treatment without fear of legal repercussions.
The third category would include drugs that are extremely harmful to the users and society as a whole, such as crystal meth, and should remain illegal. While the sale of these drugs would continue to line the pockets of drug gangs, the harm from even a modest increase in people using them would be substantial. Gangs will always exist. But strangling their most benign revenue sources would reduce their ability to finance distribution of the worst drugs, as well as other evils, such as human trafficking.
Drug policy is often considered the domain of morality. It shouldn’t be. Issues of personal morality should not be legislated. But when public safety is at stake, it can make sense to crack down on certain drugs. A utilitarian, harm reduction approach to drug policy would be a vast improvement over the reckless, moralistic approach we have now.
Thanks to Steve Lafleur.
Update on #GameOverZeus and #Cryptolocker Disruption
The Justice Department filed a status report with the United States District Court for the Western District of Pennsylvania updating the court on the progress in disrupting the GameOver Zeus botnet and the malicious software known as Cryptolocker. The disruption began in late May, when the Justice Department implemented a series of Court-authorized measures to neutralize GameOver Zeus and Cryptolocker—two of the most sophisticated and destructive forms of malicious software in existence.
In the status report, the Justice Department informed the court that the technical and legal measures undertaken to disrupt GameOver Zeus and Cryptolocker have proven successful, and that significant progress has been made in remediating computers infected with GameOver Zeus.
The Justice Department reported that all or nearly all of the active computers infected with GameOver Zeus have been liberated from the criminals’ control and are now communicating exclusively with the substitute server established pursuant to court order. The Justice Department also reported that traffic data from the substitute server shows that remediation efforts by Internet service providers and victims have reduced the number of computers infected with GameOver Zeus by 31 percent since the disruption commenced.
The Justice Department also reported that Cryptolocker has been neutralized by the disruption and cannot communicate with the infrastructure used to control the malicious software. As a result, Cryptolocker is effectively non-functional and unable to encrypt newly infected computers.
Computer users who believe they may be infected with GameOver Zeus are encouraged to visit the Department of Homeland Security’s dedicated GameOver Zeus webpage, which is located at www.us-cert.gov/gameoverzeus. Among other resources, the webpage includes links to tools from trusted vendors that can detect and remove the GameOver Zeus infection.
In the status report, the Justice Department informed the court that the technical and legal measures undertaken to disrupt GameOver Zeus and Cryptolocker have proven successful, and that significant progress has been made in remediating computers infected with GameOver Zeus.
The Justice Department reported that all or nearly all of the active computers infected with GameOver Zeus have been liberated from the criminals’ control and are now communicating exclusively with the substitute server established pursuant to court order. The Justice Department also reported that traffic data from the substitute server shows that remediation efforts by Internet service providers and victims have reduced the number of computers infected with GameOver Zeus by 31 percent since the disruption commenced.
The Justice Department also reported that Cryptolocker has been neutralized by the disruption and cannot communicate with the infrastructure used to control the malicious software. As a result, Cryptolocker is effectively non-functional and unable to encrypt newly infected computers.
Computer users who believe they may be infected with GameOver Zeus are encouraged to visit the Department of Homeland Security’s dedicated GameOver Zeus webpage, which is located at www.us-cert.gov/gameoverzeus. Among other resources, the webpage includes links to tools from trusted vendors that can detect and remove the GameOver Zeus infection.
Organized Crime Groups Exploit "Entrepreneur" Visa Progam
Ministers are tightening up the "entrepreneur" visa scheme after checks uncovered a new scam involving potentially thousands of bogus applications.
The Home Office disclosed the number of foreigners applying for the right to stay in this country under the entrepreneur scheme rocketed from 118 in 2009 to just under 10,000 last year.
It was unclear when ministers were alerted to the rapid rise in numbers, but a Home Office spokesman confirmed two thirds of the applicants – more than 3,000 people – were granted a visa.
The Government believes organised crime gangs have been involved in the scam.
It is understood gangs would charge applicants to temporarily lend the £50,000 required to demonstrate they had the capital to invest in business schemes.
The surge in entrepreneur visa applications coincided with ministers' decision to close another visa route – for "post study work" by students who had completed their courses – in 2012.
Applicants denied access to those visas are now believed by the Government to have fraudulently switched to the entrepreneur route.
Immigration officials uncovered the scam after comparing their files with tax records which showed many of the so-called "entrepreneurs" had been working full-time for employers after obtaining their visas, sometimes in low-skilled jobs.
Under the terms of an entrepreneur visa, the holder is only allowed to work for their own business and not take employed work elsewhere.
James Brokenshire, the immigration minister, said: “This government is building an immigration system that is fair to British citizens and legitimate migrants and tough on those who abuse the system and flout the law.
“Our reforms have cut net non-EU migration to levels not seen since the 1990s and slashed overall net migration by a third since its peak under the last government. “And we will not hesitate to take firm action to protect our immigration system further – particularly when there is evidence of criminals targeting what they think are weaknesses in the rules.”
Applicants will now have produce more evidence of their business activities to secure an entrepreneur visa and other restrictions will be placed on switching to the visa from other immigration routes, the spokesman said.
Wide-ranging allegations about student visa fraud were made in a BBC Panorama documentary broadcast in February.
Thanks to David Barrett.
The Home Office disclosed the number of foreigners applying for the right to stay in this country under the entrepreneur scheme rocketed from 118 in 2009 to just under 10,000 last year.
It was unclear when ministers were alerted to the rapid rise in numbers, but a Home Office spokesman confirmed two thirds of the applicants – more than 3,000 people – were granted a visa.
The Government believes organised crime gangs have been involved in the scam.
It is understood gangs would charge applicants to temporarily lend the £50,000 required to demonstrate they had the capital to invest in business schemes.
The surge in entrepreneur visa applications coincided with ministers' decision to close another visa route – for "post study work" by students who had completed their courses – in 2012.
Applicants denied access to those visas are now believed by the Government to have fraudulently switched to the entrepreneur route.
Immigration officials uncovered the scam after comparing their files with tax records which showed many of the so-called "entrepreneurs" had been working full-time for employers after obtaining their visas, sometimes in low-skilled jobs.
Under the terms of an entrepreneur visa, the holder is only allowed to work for their own business and not take employed work elsewhere.
James Brokenshire, the immigration minister, said: “This government is building an immigration system that is fair to British citizens and legitimate migrants and tough on those who abuse the system and flout the law.
“Our reforms have cut net non-EU migration to levels not seen since the 1990s and slashed overall net migration by a third since its peak under the last government. “And we will not hesitate to take firm action to protect our immigration system further – particularly when there is evidence of criminals targeting what they think are weaknesses in the rules.”
Applicants will now have produce more evidence of their business activities to secure an entrepreneur visa and other restrictions will be placed on switching to the visa from other immigration routes, the spokesman said.
Wide-ranging allegations about student visa fraud were made in a BBC Panorama documentary broadcast in February.
Thanks to David Barrett.
Friday, July 11, 2014
Quacy L. Francis Sentenced to 22 Years in Prison for Cocaine Distribution
A Shreveport man was sentenced to 264 months in prison and eight years of supervised release for his role in a Shreveport cocaine distribution conspiracy.
Quacy L. Francis, 38, of Shreveport was sentenced by U.S. District Judge Donald E. Walter for one count of conspiracy to possess with intent to distribute cocaine base. According to evidence presented at the guilty pleas in January 2014, Francis and others conspired to possess with intent to distribute cocaine base in the Shreveport area from November 2012 to May 2013. The FBI conducted three controlled purchases of cocaine, both crack and powder, from Francis. Francis purchased cocaine from Michael T. Johnson, 40, of Shreveport, and others to be distributed in the Shreveport area. Lemarcus Miller, 32, and Demarkus Miller, 32, both from Shreveport, were also part of the conspiracy.
Demarkus Miller and Lemarcus Miller were each sentenced to 60 months in prison and four years of supervised release on March 27, 2014 and May 16, 2014 respectively. Johnson was sentenced to 120 months in prison and eight years of supervised release on April 28, 2014.
Quacy L. Francis, 38, of Shreveport was sentenced by U.S. District Judge Donald E. Walter for one count of conspiracy to possess with intent to distribute cocaine base. According to evidence presented at the guilty pleas in January 2014, Francis and others conspired to possess with intent to distribute cocaine base in the Shreveport area from November 2012 to May 2013. The FBI conducted three controlled purchases of cocaine, both crack and powder, from Francis. Francis purchased cocaine from Michael T. Johnson, 40, of Shreveport, and others to be distributed in the Shreveport area. Lemarcus Miller, 32, and Demarkus Miller, 32, both from Shreveport, were also part of the conspiracy.
Demarkus Miller and Lemarcus Miller were each sentenced to 60 months in prison and four years of supervised release on March 27, 2014 and May 16, 2014 respectively. Johnson was sentenced to 120 months in prison and eight years of supervised release on April 28, 2014.
Thursday, July 10, 2014
Kai Bird, author of The Good Spy: The Life and Death of Robert Ames, Appears Tonight on Crime Beat Radio
Kai Bird, author of The Good Spy: The Life and Death of Robert Ames, Appears Tonight on Crime Beat Radio.
April 18, 1983, a bomb exploded outside the American Embassy in Beirut, killing 63 people. The attack was a geopolitical turning point. It marked the beginning of Hezbollah as a political force, but even more important, it eliminated America’s most influential and effective intelligence officer in the Middle East – CIA operative Robert Ames. What set Ames apart from his peers was his extraordinary ability to form deep, meaningful connections with key Arab intelligence figures. Some operatives relied on threats and subterfuge, but Ames worked by building friendships and emphasizing shared values – never more notably than with Yasir Arafat’s charismatic intelligence chief and heir apparent Ali Hassan Salameh (aka “The Red Prince”). Ames’ deepening relationship with Salameh held the potential for a lasting peace. Within a few years, though, both men were killed by assassins, and America’s relations with the Arab world began heading down a path that culminated in 9/11, the War on Terror, and the current fog of mistrust
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.
April 18, 1983, a bomb exploded outside the American Embassy in Beirut, killing 63 people. The attack was a geopolitical turning point. It marked the beginning of Hezbollah as a political force, but even more important, it eliminated America’s most influential and effective intelligence officer in the Middle East – CIA operative Robert Ames. What set Ames apart from his peers was his extraordinary ability to form deep, meaningful connections with key Arab intelligence figures. Some operatives relied on threats and subterfuge, but Ames worked by building friendships and emphasizing shared values – never more notably than with Yasir Arafat’s charismatic intelligence chief and heir apparent Ali Hassan Salameh (aka “The Red Prince”). Ames’ deepening relationship with Salameh held the potential for a lasting peace. Within a few years, though, both men were killed by assassins, and America’s relations with the Arab world began heading down a path that culminated in 9/11, the War on Terror, and the current fog of mistrust
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Wednesday, July 09, 2014
Two Aryan Brotherhood Gang Members Plead Guilty to Federal Racketeering Charges
Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Steven Worthey, of San Antonio, 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. James Lawrence Burns, aka “Chance,” of Dallas, Texas, pleaded guilty to the same charge on July 3, 2014.
According to court documents, Worthey, Burns 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. Worthey, Burns 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, Worthey and Burns 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.
Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.
Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 32 defendants have pleaded guilty.
Former New Orleans Mayor C. Ray Nagin Sentenced for Conspiracy, Bribery, Honest Services Wire Fraud, Money Laundering, and Tax Violations
The former mayor of New Orleans, C. Ray Nagin, 58, a resident of Frisco, Texas, was sentenced to serve 120 months in prison and ordered to pay $84,264 in restitution by United States District Judge Helen G. Berrigan of the Eastern District of Louisiana for conspiracy, bribery, honest services wire fraud, money laundering and tax violations, announced the U.S. Attorney’s Office for the Eastern District of Louisiana. A preliminary order of forfeiture was signed by Judge Berrigan on May 27, 2014 in the amount of $501,200.56.
Nagin served as the Mayor of New Orleans from 2002 to 2010. A federal grand jury sitting in the Eastern District of Louisiana indicted Nagin on Jan. 18, 2013. Nagin stood trial from Jan. 27, 2014, to Feb. 12, 2014 when the jury found Nagin guilty on 20 of 21 counts in the indictment.
“Given the nature and extent of former Mayor Nagin’s criminal conduct and betrayal of public trust over the course of several years, hopefully this result will bring at least some level of resolution to the city and its residents,” said Special Agent in Charge Michael J. Anderson of the New Orleans Field Division of the Federal Bureau of Investigation (FBI).
“In February, a jury of New Orleans citizens sent Mr. Nagin the message, loud and clear, that public officials will be held accountable for public corruption and criminal activity,” said Chief Richard Weber, IRS-Criminal Investigation. “Today’s sentence confirms that message—public servants are elected to serve the public, not benefit from the position. No one is above the law, and IRS-Criminal Investigation will continue to investigate all financial crimes which undermine the public’s confidence in its elected officials.”
“NOLAOIG discovered financial discrepancies when it conducted an evaluation of the City’s Crime Camera System in 2009,” said Inspector General Ed Quatreveaux for the City of New Orleans. “The joint FBI-NOLAOIG investigation into those discrepancies eventually led to the convictions of Greg Meffert, Mark St. Pierre and the former mayor. NOLAOIG will continue its work to root out fraud and abuse in city operations to protect the city from those who would defraud it.”
“Ray Nagin’s sentencing brings to a close a sordid chapter in New Orleans’ history in which the man charged with leading a city out of crisis instead chose to enrich himself, his family and friends,” said Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “This case epitomizes the vital role the public plays in exposing corruption as information supplied by citizens through the Metropolitan Crime Commission aided the FBI and U.S. Attorney’s Office in bringing this case to a just conclusion.”
“Our elected officials are entrusted to place the interests of the citizens above their own,” said United States Attorney Kenneth Allen Polite Jr. “When they violate that trust and break the law, the U.S. Attorney’s Office will pursue them zealously and bring them to justice.”
Nagin served as the Mayor of New Orleans from 2002 to 2010. A federal grand jury sitting in the Eastern District of Louisiana indicted Nagin on Jan. 18, 2013. Nagin stood trial from Jan. 27, 2014, to Feb. 12, 2014 when the jury found Nagin guilty on 20 of 21 counts in the indictment.
“Given the nature and extent of former Mayor Nagin’s criminal conduct and betrayal of public trust over the course of several years, hopefully this result will bring at least some level of resolution to the city and its residents,” said Special Agent in Charge Michael J. Anderson of the New Orleans Field Division of the Federal Bureau of Investigation (FBI).
“In February, a jury of New Orleans citizens sent Mr. Nagin the message, loud and clear, that public officials will be held accountable for public corruption and criminal activity,” said Chief Richard Weber, IRS-Criminal Investigation. “Today’s sentence confirms that message—public servants are elected to serve the public, not benefit from the position. No one is above the law, and IRS-Criminal Investigation will continue to investigate all financial crimes which undermine the public’s confidence in its elected officials.”
“NOLAOIG discovered financial discrepancies when it conducted an evaluation of the City’s Crime Camera System in 2009,” said Inspector General Ed Quatreveaux for the City of New Orleans. “The joint FBI-NOLAOIG investigation into those discrepancies eventually led to the convictions of Greg Meffert, Mark St. Pierre and the former mayor. NOLAOIG will continue its work to root out fraud and abuse in city operations to protect the city from those who would defraud it.”
“Ray Nagin’s sentencing brings to a close a sordid chapter in New Orleans’ history in which the man charged with leading a city out of crisis instead chose to enrich himself, his family and friends,” said Rafael C. Goyeneche III, President of the Metropolitan Crime Commission. “This case epitomizes the vital role the public plays in exposing corruption as information supplied by citizens through the Metropolitan Crime Commission aided the FBI and U.S. Attorney’s Office in bringing this case to a just conclusion.”
“Our elected officials are entrusted to place the interests of the citizens above their own,” said United States Attorney Kenneth Allen Polite Jr. “When they violate that trust and break the law, the U.S. Attorney’s Office will pursue them zealously and bring them to justice.”
Tuesday, July 08, 2014
Former Sheriff Mark Wayne Shumate Receives Federal Sentence for Aiding and Abetting a Convicted Felon
The former sheriff of East Carroll Parish was sentenced to three years of probation for hunting with a convicted felon who was sentenced prior to 2014 and barred from possessing a firearm, U.S. Attorney Stephanie A. Finley announced today.
Former East Carroll Parish Sheriff Mark Wayne Shumate, 52, of Lake Providence, La., was sentenced by U.S. District Judge Robert G. James for one count aiding and abetting a felon in the possession of a firearm. According to evidence presented at the guilty plea, on April 1, 2014, Shumate and the convicted felon went hunting on January 8, 2014. Shumate had full knowledge that the person accompanying him was barred from possessing and firing a firearm.
Former East Carroll Parish Sheriff Mark Wayne Shumate, 52, of Lake Providence, La., was sentenced by U.S. District Judge Robert G. James for one count aiding and abetting a felon in the possession of a firearm. According to evidence presented at the guilty plea, on April 1, 2014, Shumate and the convicted felon went hunting on January 8, 2014. Shumate had full knowledge that the person accompanying him was barred from possessing and firing a firearm.
Monday, July 07, 2014
Nicodemo S. Scarfo and Salvatore Pelullo Convicted of Racketeering and Other Crimes
A member and an associate of the Lucchese organized crime family and two Texas brothers were convicted of racketeering and other charges after a six-month trial, U.S. Attorney Paul J. Fishman for the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice. Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.
“Today, four people stand convicted for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. Attorney Fishman said. “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”
“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” Assistant Attorney General Caldwell said. “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”
The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court. The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden. It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.
Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.
According to documents filed in this case and the evidence at trial:
Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family. In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr. As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.
In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.
Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements. The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.
In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive. This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG. At the time of his death, he was a member of FPFG’s “compliance team.” Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.” Scarfo replied: “Oh boy. Yeah, Sal, you wanna know something though? That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing. You know what I mean? That is so like Enron-ish. You know what I mean? Kenneth Lay, he bailed out and took a heart attack.”
Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife. As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.
The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine; the RICO conspiracy, wire fraud conspiracy, wire fraud, conspiracy to obstruct justice counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit money laundering and felon in possession of a weapon counts each carry a maximum potential penalty of 10 years in prison and a $250,000 fine; the securities fraud conspiracy, conspiracy to make false statements in a loan application and conspiracy to transfer firearms to a prohibited person counts each carry a maximum potential penalty of five years in prison and a $250,000 fine.
Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014; and for both Maxwell brothers, Oct. 23, 2014.
Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice. Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.
“Today, four people stand convicted for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. Attorney Fishman said. “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”
“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” Assistant Attorney General Caldwell said. “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”
The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court. The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden. It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.
Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.
According to documents filed in this case and the evidence at trial:
Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family. In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr. As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.
In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.
Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements. The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.
In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive. This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG. At the time of his death, he was a member of FPFG’s “compliance team.” Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.” Scarfo replied: “Oh boy. Yeah, Sal, you wanna know something though? That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing. You know what I mean? That is so like Enron-ish. You know what I mean? Kenneth Lay, he bailed out and took a heart attack.”
Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife. As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.
The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine; the RICO conspiracy, wire fraud conspiracy, wire fraud, conspiracy to obstruct justice counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit money laundering and felon in possession of a weapon counts each carry a maximum potential penalty of 10 years in prison and a $250,000 fine; the securities fraud conspiracy, conspiracy to make false statements in a loan application and conspiracy to transfer firearms to a prohibited person counts each carry a maximum potential penalty of five years in prison and a $250,000 fine.
Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014; and for both Maxwell brothers, Oct. 23, 2014.
Sunday, July 06, 2014
Busted: A Tale of Corruption and Betrayal in the City of Brotherly Love
In the vein of Erin Brockovich, The Departed, and T. J. English's Savage City comes Busted: A Tale of Corruption and Betrayal in the City of Brotherly Love, the shocking true story of the biggest police corruption scandal in Philadelphia history, a tale of drugs, power, and abuse involving a rogue narcotics squad, a confidential informant, and two veteran journalists whose reporting drove a full-scale FBI probe, rocked the City of Brotherly Love, and earned a Pulitzer Prize .
In 2003,
Benny Martinez became a Confidential Informant for a member of the Philadelphia Police Department's narcotics squad, helping arrest nearly 200 drug and gun dealers over seven years. But that success masked a dark and dangerous reality: the cops were as corrupt as the criminals they targeted.
In addition to fabricating busts, the squad systematically looted mom-and-pop stores, terrorizing hardworking immigrant owners. One squad member also sexually assaulted three women during raids. Frightened for his life, Martinez turned to Philadelphia Daily News reporters Wendy Ruderman and Barbara Laker.
Busted chronicles how these two journalists—both middle-class working mothers—formed an unlikely bond with a convicted street dealer to uncover the secrets of ruthless kingpins and dirty cops. Professionals in an industry shrinking from severe financial cutbacks, Ruderman and Laker had few resources—besides their own grit and tenacity—to break a dangerous, complex story that would expose the rotten underbelly of a modern American city and earn them a Pulitzer Prize. A page-turning thriller based on superb reportage, illustrated with eight pages of photos, Busted is modern true crime at its finest.
In 2003,
Benny Martinez became a Confidential Informant for a member of the Philadelphia Police Department's narcotics squad, helping arrest nearly 200 drug and gun dealers over seven years. But that success masked a dark and dangerous reality: the cops were as corrupt as the criminals they targeted.In addition to fabricating busts, the squad systematically looted mom-and-pop stores, terrorizing hardworking immigrant owners. One squad member also sexually assaulted three women during raids. Frightened for his life, Martinez turned to Philadelphia Daily News reporters Wendy Ruderman and Barbara Laker.
Busted chronicles how these two journalists—both middle-class working mothers—formed an unlikely bond with a convicted street dealer to uncover the secrets of ruthless kingpins and dirty cops. Professionals in an industry shrinking from severe financial cutbacks, Ruderman and Laker had few resources—besides their own grit and tenacity—to break a dangerous, complex story that would expose the rotten underbelly of a modern American city and earn them a Pulitzer Prize. A page-turning thriller based on superb reportage, illustrated with eight pages of photos, Busted is modern true crime at its finest.
Saturday, July 05, 2014
Details of Russell Adler Sentencing in Connection with Rothstein Campaign Finance Fraud Case
Russell S. Adler, 52, of Ft. Lauderdale, was sentenced by United States District Judge James I. Cohn to 30 months’ imprisonment, to be followed by two years’ supervised release in connection with his conviction for one count of conspiracy to violate the Federal Election Campaign Act and to defraud the United States, in violation of Title 18, United States Code, Section 371. The defendant was a shareholder of the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
During his April 4, 2014 guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, RRA Chairman and CEO Scott W. Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.
During his April 4, 2014 guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, RRA Chairman and CEO Scott W. Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Adler, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA.
Thursday, July 03, 2014
Marcus Valdespino, author of #WhiteBoyConfessions, Appears Tonight on Crime Beat Radio
Marcus Valdespino, author of The White Boy Confessions: The Explosive Story of Marcus Valdespino and San Antonio's Hood, appears tonight on Crime Beat Radio
The White Boy Confessions
is the powerful autobiography of Marcus Valdespino and deals with gang life and violence in San Antonio and such controversial subjects as race relations, poverty, and interracial crime. The first 29 years of Valdespino's was compelling and tragic. He witnessed his father's drug dealing to high profile people and Marcus, unfortunately followed in his footsteps. Valdespino's story shows the worst of humanity and is chilling in its depiction of sex and violence and heartfelt, poignant and sad in its betrayal of the rite of passage of a young person growing up in this world.
The White Boys Confessions is also extremely powerful in its social and political commentary. There are several layers of the story contained within it that are both frightening and humorous.
All of Valdespino's story - the bad and the ugly - is in The White Boy Confessions. It is a story of not just survival but also redemption.
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.
The White Boy Confessions
is the powerful autobiography of Marcus Valdespino and deals with gang life and violence in San Antonio and such controversial subjects as race relations, poverty, and interracial crime. The first 29 years of Valdespino's was compelling and tragic. He witnessed his father's drug dealing to high profile people and Marcus, unfortunately followed in his footsteps. Valdespino's story shows the worst of humanity and is chilling in its depiction of sex and violence and heartfelt, poignant and sad in its betrayal of the rite of passage of a young person growing up in this world.The White Boys Confessions is also extremely powerful in its social and political commentary. There are several layers of the story contained within it that are both frightening and humorous.
All of Valdespino's story - the bad and the ugly - is in The White Boy Confessions. It is a story of not just survival but also redemption.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Wednesday, July 02, 2014
Attorney General Holder Delivers Remarks at the Chicago Youth Violence Prevention Roundtable
Thank you all for being here – and for welcoming me back to Chicago today. I’d particularly like to thank Mayor [Rahm] Emanuel for convening this important discussion. I want to recognize Jadine [Chou], of the Chicago Public Schools, who is serving as our moderator. And I’d like to acknowledge the work of our outstanding U.S. Attorney, Zach Fardon, in helping to lead federal law enforcement efforts – and maintain strong partnerships with city and state officials – across this great city and throughout the area.
Most of all, I want to thank each of you for taking the time to be here; for lending your voices, and your unique perspectives, to this conversation; and for your ongoing commitment to frank dialogue, close collaboration, and cutting-edge innovation in pursuit of the progress we seek.
As law enforcement leaders, educators, administrators, and community advocates – but, most of all, as concerned parents – you’ve already stepped forward to offer your leadership, your support, and your skills and expertise in our efforts to combat and prevent youth violence.
Today, I want you to know that my Justice Department colleagues and I are grateful for your extraordinary work. And we’re determined to stand with you in taking it to a new level.
Chicago has made tremendous progress in bringing the homicide rate down – largely due to the efforts of many in this room. Yet, I'm sure we can all agree, there is still work to be done.
Statistics show that more than 60 percent of America’s children are exposed to crime, violence, or abuse – as victims or as witnesses – at some point in their lives. This is a staggering reality with devastating implications – and direct consequences.
For me – and I know for all of you – fighting back has always been much more than a professional obligation. As our nation’s Attorney General – and as the father of three wonderful kids – it is also a personal priority.
That’s why the work you’re doing – to rally local stakeholders to make our schools and our city streets safer – is so critical. And it’s why the Obama Administration – led, in part, by this Justice Department – has stepped to the forefront of these efforts, making an unprecedented commitment to help Chicago and other cities stem the tide of violence and protect our youngest citizens.
At the heart of this commitment is our National Forum on Youth Violence Prevention. Thanks to your tireless work – under the leadership of Mayor Emanuel, the Chicago Police
Department, and the Chicago Public Schools – this city has implemented a comprehensive, broad-based strategy to keep our young people safe, to keep them in the classroom, and to keep them on the path to success. With the strong support of the Justice Department, you’re applying innovative, data-driven strategies for contending with local challenges. And as your new report illustrates, these efforts are showing tremendous promise.
As we speak, you’re taking action to disrupt the “school-to-prison pipeline” by reducing out-of-school suspensions and expulsions. You’ve made significant gains in reducing arrests triggered by student misconduct and student-involved shootings. You’re ensuring that kids have safe passage to and from school. You’re supporting mentorship, tutoring, and community engagement efforts. And as a result, as the City announced today, the Chicago Public Schools just marked the safest year on record. Graduation rates are improving. And all of this is only the beginning.
In the days ahead, the Justice Department will continue seeking ways to strengthen and institutionalize our support for Chicago’s locally-driven, multi-pronged anti-violence strategy. Under the 12 current grants administered by our Office of Juvenile Justice and Delinquency Prevention alone, the City of Chicago and Cook County have access to more than $6.6 million to further these efforts.
Moving forward, we’ll keep building on this work – through the support of our Office of Justice Programs; through initiatives like Project Safe Neighborhoods and Defending Childhood; through national efforts such as President Obama’s My Brother’s Keeper initiative; and through our continued work to institutionalize the cooperative solutions you’re pioneering – not just here in Chicago, but throughout the country.
These federal resources will be essential in helping to achieve the public safety goals we share. But I also recognize – as you do – that the challenges we face can only be addressed cooperatively, by entire communities standing together – through the kind of collective action and comprehensive effort that the Mayor, Superintendent [Garry] McCarthy, and other leaders around this table are making possible.
Programs like Chicago’s own CureViolence and the Group Violence Reduction Strategy now being used by the Chicago Police Department have helped to show us what’s possible when the full community becomes involved.
Our nation’s Department of Justice is firmly committed to supporting you in this work. And we’ll continue to rely on the engagement, the expertise, and the resources that you provide.
I want to thank you, once again, for all that you do to drive our efforts forward. I am proud to count you as colleagues and partners. And I look forward to all that we must – and will – accomplish together in the months and years to come.
- Attorney General Eric Holder on Wednesday, July 2, 2014
7 Colombian Nationals Charged in Connection with the Murder of a DEA Agent, James Terry Watson, Extradited to the U.S.
Seven Colombian nationals were extradited to the United States to face charges relating to the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“DEA Special Agent James ‘Terry’ Watson was a brave and talented special agent who represented everything good about federal law enforcement and our DEA family,” said DEA Administrator Leonhart. “We will never forget Terry’s sacrifice on behalf of the American people during his 13 years of service, nor will DEA ever forget the outstanding work of the Colombian National Police and our other law enforcement partners. Their efforts quickly led to the arrest and extradition of those accused of committing this heinous act.”
“With the extradition of these suspects, we are one step closer to ensuring that justice is served for the kidnapping and murder of an American hero,” said Attorney General Holder. “Special Agent Watson gave his life in the service of his country. We owe him, and his family, a debt of gratitude we can never fully repay. The Justice Department will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable.”
All of the defendants were indicted by a grand jury in the Eastern District of Virginia on July 18, 2013. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; Julio Estiven Gracia Ramirez, 31; and Andrés Alvaro Oviedo-Garcia, 22, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault. Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 31, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
The defendants arrived in the United States on July 1, 2014, and made their initial appearance in federal court in Alexandria, Virginia, today before United States Magistrate Judge Thomas Rawles Jones Jr. A detention hearing is scheduled for July 9, 2014, before United States Magistrate Judge Ivan D. Davis.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogotá, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
On July 1, 2014, the Government of Colombia extradited the defendants to the United States.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS) made the announcement.
“DEA Special Agent James ‘Terry’ Watson was a brave and talented special agent who represented everything good about federal law enforcement and our DEA family,” said DEA Administrator Leonhart. “We will never forget Terry’s sacrifice on behalf of the American people during his 13 years of service, nor will DEA ever forget the outstanding work of the Colombian National Police and our other law enforcement partners. Their efforts quickly led to the arrest and extradition of those accused of committing this heinous act.”
“With the extradition of these suspects, we are one step closer to ensuring that justice is served for the kidnapping and murder of an American hero,” said Attorney General Holder. “Special Agent Watson gave his life in the service of his country. We owe him, and his family, a debt of gratitude we can never fully repay. The Justice Department will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable.”
All of the defendants were indicted by a grand jury in the Eastern District of Virginia on July 18, 2013. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; Julio Estiven Gracia Ramirez, 31; and Andrés Alvaro Oviedo-Garcia, 22, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault. Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 31, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
The defendants arrived in the United States on July 1, 2014, and made their initial appearance in federal court in Alexandria, Virginia, today before United States Magistrate Judge Thomas Rawles Jones Jr. A detention hearing is scheduled for July 9, 2014, before United States Magistrate Judge Ivan D. Davis.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogotá, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
On July 1, 2014, the Government of Colombia extradited the defendants to the United States.
Tuesday, July 01, 2014
Latin Kings’ Leader of Little Village, Juan Amaya, Region Sentenced to 35 Years in Prison for RICO Conspiracy and Related Gang Crimes
A high-ranking leader of the Latin Kings street gang was sentenced to 35 years in federal prison after being convicted of racketeering conspiracy and related charges involving narcotics trafficking and violence that plagued the Little Village neighborhood on the city’s west side. The defendant, JUAN AMAYA, 38, was convicted by a jury in March of this year after a trial in U.S. District Court.
In 2008, Amaya was the leader, or “Regional Inca,” of the Almighty Latin King Nation’s 26th Street Region, encompassing Little Village, the gang’s most important stronghold. Amaya was “in charge of over 1,000 soldiers ― many of whom were simply boys sent off to kill or be killed” under rules and policies he oversaw, the government argued in seeking a sentence of 40 years’ imprisonment.
Amaya was held responsible for participating in a conspiracy to commit murder, according to findings by U.S. District Judge Rebecca Pallmeyer, who imposed the sentence in Federal Court. Amaya must serve at least 85 percent of the sentence.
Last week, Nedal Issa, who was the Inca of the Latin Kings’ Cicero Section of the 26th Street Region and who pleaded guilty, cooperated, and testified as a government witness, was sentenced to nearly 17 years in prison by U.S. District Judge Charles Norgle. Amaya’s sentencing marks the last significant event in cases since 2008 that resulted in federal convictions of, and lengthy sentences for, Augustin Zambrano, the Latin Kings’ leader or “Corona;” Vicente Garcia, the gang’s “Supreme Regional Inca;” Fernando King, who preceded Garcia as second-incommand; and more than two dozen other top-ranking leaders.
“These sentences hold these defendants accountable for the barbaric enterprise known as the Latin Kings and for their roles in murder, attempted murder, shootings, beatings, drug trafficking, and other crimes,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “I want to thank our local, state and federal law enforcement partners for their brave and outstanding work resulting in a major impact on this gang enterprise,” Mr. Fardon added.
The evidence at Amaya’s trial showed that by 2008, just a couple of years after he was released on parole from a 24-year sentence for a 1992 murder conviction, Amaya was promoted to Regional Inca of the Little Village Region, reporting only to Garcia and Zambrano and effectively running the gang at their behest. During his tenure, Amaya discussed 25 shootings committed by his underlings while expressing pride at the consistency of violence. All told, hundreds of shootings resulting from Latin Kings conduct occurred in Little Village during the period of Amaya’s prominence, according to the government.
Amaya was indicted separately in 2012 following the 2008 and 2009 indictments of more than 30 top leaders of the Latin Kings. All have been convicted and sentenced except for a few defendants who remain fugitives. From its origin and base in the west side Little Village neighborhood, the Latin Kings spread throughout Chicago and Illinois and established branches in other states, where local leaders acted with some autonomy but adhered to the rules and hierarchy of the Chicago gang, according to trial evidence and court records.
The sentence 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 Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago, and the Cook County Sheriff’s Police also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
In late 2006, ATF agents led an investigation that resulted in federal drug trafficking and firearms charges against 38 Latin Kings members and associates. In 2008, the FBI led an investigation that resulted in state and federal charges against 40 Latin Kings members and associates, including Zambrano and numerous co-defendants. In total, nearly 100 Latin Kings members and associates have faced state or federal charges since 2006. The convictions resulted from a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police Department and other state and local partners, to dismantle the hierarchy of the Latin Kings and other highly-organized, often violent Chicago street gangs.
Zambrano was the highest-ranking Latin King to be convicted and sentenced since Gustavo “Gino” Colon, who also holds the title of “Corona,” was sentenced to life in prison in 2000.
In 2008, Amaya was the leader, or “Regional Inca,” of the Almighty Latin King Nation’s 26th Street Region, encompassing Little Village, the gang’s most important stronghold. Amaya was “in charge of over 1,000 soldiers ― many of whom were simply boys sent off to kill or be killed” under rules and policies he oversaw, the government argued in seeking a sentence of 40 years’ imprisonment.
Amaya was held responsible for participating in a conspiracy to commit murder, according to findings by U.S. District Judge Rebecca Pallmeyer, who imposed the sentence in Federal Court. Amaya must serve at least 85 percent of the sentence.
Last week, Nedal Issa, who was the Inca of the Latin Kings’ Cicero Section of the 26th Street Region and who pleaded guilty, cooperated, and testified as a government witness, was sentenced to nearly 17 years in prison by U.S. District Judge Charles Norgle. Amaya’s sentencing marks the last significant event in cases since 2008 that resulted in federal convictions of, and lengthy sentences for, Augustin Zambrano, the Latin Kings’ leader or “Corona;” Vicente Garcia, the gang’s “Supreme Regional Inca;” Fernando King, who preceded Garcia as second-incommand; and more than two dozen other top-ranking leaders.
“These sentences hold these defendants accountable for the barbaric enterprise known as the Latin Kings and for their roles in murder, attempted murder, shootings, beatings, drug trafficking, and other crimes,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “I want to thank our local, state and federal law enforcement partners for their brave and outstanding work resulting in a major impact on this gang enterprise,” Mr. Fardon added.
The evidence at Amaya’s trial showed that by 2008, just a couple of years after he was released on parole from a 24-year sentence for a 1992 murder conviction, Amaya was promoted to Regional Inca of the Little Village Region, reporting only to Garcia and Zambrano and effectively running the gang at their behest. During his tenure, Amaya discussed 25 shootings committed by his underlings while expressing pride at the consistency of violence. All told, hundreds of shootings resulting from Latin Kings conduct occurred in Little Village during the period of Amaya’s prominence, according to the government.
Amaya was indicted separately in 2012 following the 2008 and 2009 indictments of more than 30 top leaders of the Latin Kings. All have been convicted and sentenced except for a few defendants who remain fugitives. From its origin and base in the west side Little Village neighborhood, the Latin Kings spread throughout Chicago and Illinois and established branches in other states, where local leaders acted with some autonomy but adhered to the rules and hierarchy of the Chicago gang, according to trial evidence and court records.
The sentence 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 Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago, and the Cook County Sheriff’s Police also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
In late 2006, ATF agents led an investigation that resulted in federal drug trafficking and firearms charges against 38 Latin Kings members and associates. In 2008, the FBI led an investigation that resulted in state and federal charges against 40 Latin Kings members and associates, including Zambrano and numerous co-defendants. In total, nearly 100 Latin Kings members and associates have faced state or federal charges since 2006. The convictions resulted from a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police Department and other state and local partners, to dismantle the hierarchy of the Latin Kings and other highly-organized, often violent Chicago street gangs.
Zambrano was the highest-ranking Latin King to be convicted and sentenced since Gustavo “Gino” Colon, who also holds the title of “Corona,” was sentenced to life in prison in 2000.
Unrepentant Mob Boss with Big Connections and an Ear for Music Backs The Four Seasons #JerseyBoys
Back in the day, musicals were the end-all, be-all of cinematic success. Nowadays, they seem more like nostalgic sentiments of what once was. Jersey Boys is not a musical in the traditional sense, but it is a combination of that old-school emotion and a strangely modern sense of real life, with a profound respect for the music it celebrates — and gangsters, infidelity, a hell of a soundtrack and a lot of other things that are involved in quality entertainment.
Frankie Valli (John Lloyd Young)
is a young man with a gift. The gift of song. He possesses a voice that is unlike anything anyone has ever heard. While making ends meet working in a barber shop, he gets in good with Gyp DeCarlo (Christopher Walken), an unrepentant mob boss with big connections and an ear for music. With Gyp backing them, Frankie is recruited by his best friend, Tommy (Vincent Piazza), to sing in a band he has formed. Their rise to stardom is slow, but eventually they make it to the big time. Unfortunately, ties to bookies, flings with floozies and dealings with stone-cold gangsters spin the group on a reckless trip
down a rocky road.
Based on the acclaimed Broadway smash hit, Jersey Boys is a very well-done adaptation from stage to screen. Fans of Chicago will surely agree. With four Tony awards under its belt (including the 2006 best musical and best actor John Lloyd Young), the source material practically demanded the proverbial star treatment. And it got it. Director Clint Eastwood delivers hits as reliably as the Four Seasons, and this one does not disappoint. The film is a combination of That Thing You Do and Goodfellas, with a better soundtrack. Christopher Walken is especially good in an unusually subdued performance. The tendency for the main characters (except for Frankie Valli) to break the fourth wall and address the audience is strange at first, but it becomes not so much endearing as wanted, as the characters act as guides through a crazy ride.
The Four Seasons were rock stars before that term, even existed, and this film shows it, in the spotlights that adorn every shot of them on stage and in the shadowy actions that happen off stage. Watching Jersey Boys gives you a true sense of what it must have been like to come from nothing, get everything, and feel the desperate heartache as it falls from your grasp. Much like the music that Frankie Valli and the Four Seasons performed, Jersey Boys seems like bubble gum, but is really a jawbreaker. The music is timeless, the directing is wonderful and the performances are brilliant. Don’t be surprised when this gem resurfaces in theaters again right before Oscar time.
Thanks to Ian Murphy.
Frankie Valli (John Lloyd Young)
is a young man with a gift. The gift of song. He possesses a voice that is unlike anything anyone has ever heard. While making ends meet working in a barber shop, he gets in good with Gyp DeCarlo (Christopher Walken), an unrepentant mob boss with big connections and an ear for music. With Gyp backing them, Frankie is recruited by his best friend, Tommy (Vincent Piazza), to sing in a band he has formed. Their rise to stardom is slow, but eventually they make it to the big time. Unfortunately, ties to bookies, flings with floozies and dealings with stone-cold gangsters spin the group on a reckless tripdown a rocky road.
Based on the acclaimed Broadway smash hit, Jersey Boys is a very well-done adaptation from stage to screen. Fans of Chicago will surely agree. With four Tony awards under its belt (including the 2006 best musical and best actor John Lloyd Young), the source material practically demanded the proverbial star treatment. And it got it. Director Clint Eastwood delivers hits as reliably as the Four Seasons, and this one does not disappoint. The film is a combination of That Thing You Do and Goodfellas, with a better soundtrack. Christopher Walken is especially good in an unusually subdued performance. The tendency for the main characters (except for Frankie Valli) to break the fourth wall and address the audience is strange at first, but it becomes not so much endearing as wanted, as the characters act as guides through a crazy ride.
The Four Seasons were rock stars before that term, even existed, and this film shows it, in the spotlights that adorn every shot of them on stage and in the shadowy actions that happen off stage. Watching Jersey Boys gives you a true sense of what it must have been like to come from nothing, get everything, and feel the desperate heartache as it falls from your grasp. Much like the music that Frankie Valli and the Four Seasons performed, Jersey Boys seems like bubble gum, but is really a jawbreaker. The music is timeless, the directing is wonderful and the performances are brilliant. Don’t be surprised when this gem resurfaces in theaters again right before Oscar time.
Thanks to Ian Murphy.
Monday, June 30, 2014
Scott Zeringue Convicted of Insider Trading on Acquisition of Shaw by Chicago Bridge and Iron
A former executive of the Shaw Group has pled guilty to engaging in insider trading. The conviction is the result of an ongoing federal investigation into the use of pre-merger confidential information regarding the 2012 acquisition of Shaw by Chicago Bridge and Iron Company (CB&I).
SCOTT DAVID ZERINGUE, age 48, of Baton Rouge, Louisiana, pled guilty before Chief Judge Brian A. Jackson to one count of conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371. ZERINGUE also agreed to forfeit proceeds derived from the offense.
In the Spring of 2012, Shaw began considering a potential merger. At the time, ZERINGUE was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012. As a result of the announcement, Shaw’s stock price rose substantially.
At today’s proceeding, ZERINGUE admitted that, prior to the public announcement, he received confidential inside information regarding the impending merger which he passed on to a family member with the understanding that the family member would trade in Shaw stock based on such information. Thereafter, ZERINGUE and the family member both used the inside information obtained by ZERINGUE to purchase Shaw stock and stock options. As a result of the insider trading, ZERINGUE and the family member made over $750,000 in profits.
ZERINGUE faces a sentence of up to five years’ imprisonment, a fine of up to $250,000, and up to three years of supervised release following imprisonment.
U.S. Attorney Green stated: “Insider trading undermines the level playing field that is essential to the integrity and fair functioning of the stock market. We will continue to aggressively investigate and prosecute individuals who exploit confidential company information for personal gain at shareholder expense.”
This matter is being investigated by the United States Secret Service, the Federal Bureau of Investigation (FBI), and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney J. Christopher Dippel, Jr., and Senior Litigation Counsel M. Patricia Jones.
The investigation is continuing. Anyone with information concerning pre-merger insider trading of Shaw stock is urged to contact Special Agent Moe Hattier of the FBI at 225-291-5159 or Special Agent Kevin Bodden of the U.S. Secret Service at 225-925-5436.
SCOTT DAVID ZERINGUE, age 48, of Baton Rouge, Louisiana, pled guilty before Chief Judge Brian A. Jackson to one count of conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371. ZERINGUE also agreed to forfeit proceeds derived from the offense.
In the Spring of 2012, Shaw began considering a potential merger. At the time, ZERINGUE was the Vice President of Construction Operations for Shaw’s Plant Services Division. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012. As a result of the announcement, Shaw’s stock price rose substantially.
At today’s proceeding, ZERINGUE admitted that, prior to the public announcement, he received confidential inside information regarding the impending merger which he passed on to a family member with the understanding that the family member would trade in Shaw stock based on such information. Thereafter, ZERINGUE and the family member both used the inside information obtained by ZERINGUE to purchase Shaw stock and stock options. As a result of the insider trading, ZERINGUE and the family member made over $750,000 in profits.
ZERINGUE faces a sentence of up to five years’ imprisonment, a fine of up to $250,000, and up to three years of supervised release following imprisonment.
U.S. Attorney Green stated: “Insider trading undermines the level playing field that is essential to the integrity and fair functioning of the stock market. We will continue to aggressively investigate and prosecute individuals who exploit confidential company information for personal gain at shareholder expense.”
This matter is being investigated by the United States Secret Service, the Federal Bureau of Investigation (FBI), and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney J. Christopher Dippel, Jr., and Senior Litigation Counsel M. Patricia Jones.
The investigation is continuing. Anyone with information concerning pre-merger insider trading of Shaw stock is urged to contact Special Agent Moe Hattier of the FBI at 225-291-5159 or Special Agent Kevin Bodden of the U.S. Secret Service at 225-925-5436.
Friday, June 27, 2014
Patricia S Miller Charged with Stealing Over $2.5 Million in Client Funds
A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was indicted in U.S. District Court in Boston on charges that she orchestrated a multi-million dollar investment fraud scheme.
Patricia S. Miller, 67, was charged with five counts of wire fraud.
The indictment alleges that Miller used her position as a trusted financial adviser, as well as her association with the Massachusetts broker dealer, to obtain money from clients for purported investments never made on the behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 20 clients for these purported investment clubs. Instead of investing the money as promised, however, she misappropriated client funds for her own use.
If convicted, Miller faces a maximum sentence under the statute for each count of wire fraud of 20 years in prison, three years of supervised release, and a $250,000 fine.
Patricia S. Miller, 67, was charged with five counts of wire fraud.
The indictment alleges that Miller used her position as a trusted financial adviser, as well as her association with the Massachusetts broker dealer, to obtain money from clients for purported investments never made on the behalf of clients. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Miller was able to obtain over $2.5 million from more than 20 clients for these purported investment clubs. Instead of investing the money as promised, however, she misappropriated client funds for her own use.
If convicted, Miller faces a maximum sentence under the statute for each count of wire fraud of 20 years in prison, three years of supervised release, and a $250,000 fine.
Thursday, June 26, 2014
Jose Morfi, Leader of Colombian Drug Trafficking Organization, Sentenced to 27 Years in Prison
U.S. District Judge Susan C. Bucklew sentenced Jose Samir Renteria-Cuero (51, Cali, Colombia), a/k/a “Jose Morfi,” to 27 years in federal prison for conspiring with others to distribute five kilograms or more of cocaine onboard a vessel subject to the jurisdiction of the United States. Renteria-Cuero pleaded guilty on February 6, 2014.
According to court documents, Renteria-Cuero was involved in maritime cocaine smuggling operations from the 1980s until at least 2009. He started out as a mechanic, servicing go-fast vessels (GFVs) and participating in GFV smuggling operations. Eventually, he acquired and built GFVs and self-propelled semi-submersible (SPSS) vessels and recruited mariners to participate in maritime cocaine smuggling operations. Renteria-Cuero worked with others to transport and store cocaine in Colombia, construct and repair GFVs and SPSS vessels, and dispatch those stateless vessels from Colombia. Renteria-Cuero acted as a “general contractor,” accepting contracts to build SPSS vessels from cocaine owners in Colombia. Renteria-Cuero provided maritime cocaine transportation services aboard stateless vessels that were used to smuggle the drugs from Colombia to Mexico, via the Pacific Ocean, in international waters, knowing and intending that the cocaine would ultimately be imported unlawfully into the United States. Many of these ventures involved at least 1,000 kilograms of cocaine.
Renteria-Cuero was arrested in Cali, Colombia in March 2012, and subsequently extradited to the United States, first arriving at a place in the Middle District of Florida.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
According to court documents, Renteria-Cuero was involved in maritime cocaine smuggling operations from the 1980s until at least 2009. He started out as a mechanic, servicing go-fast vessels (GFVs) and participating in GFV smuggling operations. Eventually, he acquired and built GFVs and self-propelled semi-submersible (SPSS) vessels and recruited mariners to participate in maritime cocaine smuggling operations. Renteria-Cuero worked with others to transport and store cocaine in Colombia, construct and repair GFVs and SPSS vessels, and dispatch those stateless vessels from Colombia. Renteria-Cuero acted as a “general contractor,” accepting contracts to build SPSS vessels from cocaine owners in Colombia. Renteria-Cuero provided maritime cocaine transportation services aboard stateless vessels that were used to smuggle the drugs from Colombia to Mexico, via the Pacific Ocean, in international waters, knowing and intending that the cocaine would ultimately be imported unlawfully into the United States. Many of these ventures involved at least 1,000 kilograms of cocaine.
Renteria-Cuero was arrested in Cali, Colombia in March 2012, and subsequently extradited to the United States, first arriving at a place in the Middle District of Florida.
This case was investigated by the Panama Express South Strike Force, a standing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Mel Ayton, Author of #HuntingthePresident Appears on Crime Beat Radio Tonight
Mel Ayton, author of Hunting the President: Threats, Plots and Assassination Attempts--From FDR to Obama, appears on Crime Beat Radio tonight.
In American history, four U.S. Presidents have been murdered at the hands of an assassin. In each case the assassinations changed the course of American history.
But most historians have overlooked or downplayed the many threats modern presidents have faced, and survived. Author Mel Ayton sets the record straight in his new book Hunting the Presidents: Threats, Plots and Assassination Attempts—From FDR to Obama, telling the sensational story of largely forgotten—or never-before revealed—malicious attempts to slay America’s leaders.
Supported by court records, newspaper archives, government reports, FBI files, and transcripts of interviews from presidential libraries, Hunting the Presidents reveals:
The relationships presidents held with their protectors and the effect it had on the Secret Service’s mission
Hunting the Presidents opens the vault of stories about how many of our recent Presidents have come within a hair’s breadth of assassination, leaving America’s fate in the balance. Most of these stories have remained buried—until now. Includes glossy photo signature of historic pictures and documents.
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.
In American history, four U.S. Presidents have been murdered at the hands of an assassin. In each case the assassinations changed the course of American history.
But most historians have overlooked or downplayed the many threats modern presidents have faced, and survived. Author Mel Ayton sets the record straight in his new book Hunting the Presidents: Threats, Plots and Assassination Attempts—From FDR to Obama, telling the sensational story of largely forgotten—or never-before revealed—malicious attempts to slay America’s leaders.Supported by court records, newspaper archives, government reports, FBI files, and transcripts of interviews from presidential libraries, Hunting the Presidents reveals:
- How an armed, would-be assassin stalked President Roosevelt and spent ten days waiting across the street from the White House for his chance to shoot him
- How the Secret Service foiled a plot by a Cuban immigrant who told coworkers he was going to shoot LBJ from a window overlooking the president’s motorcade route
- How a deranged man broke into Reagan’s California home and attempted to strangle the former president before he was subdued by Secret Service agents.
- In early 1992 a mentally deranged man stalking Bush turned up at the wrong presidential venue for his planned assassination attempt
The relationships presidents held with their protectors and the effect it had on the Secret Service’s mission
Hunting the Presidents opens the vault of stories about how many of our recent Presidents have come within a hair’s breadth of assassination, leaving America’s fate in the balance. Most of these stories have remained buried—until now. Includes glossy photo signature of historic pictures and documents.
Crime Beat is a weekly hour-long radio program that airs every Thursday at 8 p.m. EST. Crime Beat presents fascinating topics that bring listeners closer to the dynamic underbelly of the world of crime. Guests have included ex-mobsters, undercover law enforcement agents, sports officials, informants, prisoners, drug dealers and investigative journalists, who have provided insights and fresh information about the world’s most fascinating subject: crime.
Wednesday, June 25, 2014
Details on #OperationCrossCountry Recovery of 168 Juveniles in Nationwide Operation Targeting Commercial Child Sex Trafficking
During the past week, the FBI; its local, state, and federal law enforcement partners; and the National Center for Missing and Exploited Children (NCMEC) conducted Operation Cross Country VIII, a week-long enforcement action to address commercial child sex trafficking throughout the United States. This operation included enforcement actions in 106 cities across 54 FBI field divisions nationwide and resulted in 168 recoveries of children who were being victimized through prostitution. Additionally, 281 pimps were arrested on state and federal charges.
“Targeting and harming America’s children through commercial sex trafficking is a heinous crime, with serious consequences,” said FBI Director James B. Comey. “Every child deserves to be safe and sound. Through targeted measures like Operation Cross Country, we can end the cycle of victimization.”
“Child sex traffickers create a living nightmare for their adolescent victims,” said Leslie R. Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice. “They use fear and force and treat children as commodities of sex to be sold again and again. This operation puts traffickers behind bars and rescues kids from their nightmare so they can start reclaiming their childhood.”
Operation Cross Country is part of the Innocence Lost National Initiative that was established in 2003 by the FBI’s Criminal Investigative Division, in partnership with the Department of Justice and NCMEC, to address the growing problem of child prostitution.
“Operation Cross Country reveals that children are being targeted and sold for sex in America every day,” said John Ryan, president and CEO of NCMEC. “We’re proud to partner with the FBI and provide support to both law enforcement and victim specialists in the field as they help survivors take that first step toward freedom.”
To date, the FBI and its task force partners have recovered nearly 3,600 children from the streets. The investigations and subsequent 1,450 convictions have resulted in lengthy sentences, including 14 life terms and the seizure of more than $3.1 million in assets.
Task force operations usually begin as local enforcement actions that target truck stops, casinos, street “tracks,” and websites that advertise dating or escort services, based on intelligence gathered by officers working in their respective jurisdictions. Initial arrests are often violations of local and state laws relating to prostitution or solicitation. Information gleaned from those arrested frequently uncovers organized efforts to prostitute women and children across many states. FBI agents further develop this evidence in partnership with U.S. Attorney’s Offices and the U.S. Department of Justice’s Child Exploitation and Obscenity Section so that prosecutors can help bring federal charges in those cities where child prostitution occurs.
The Innocence Lost National Initiative partners with NCMEC to provide training for state and federal law enforcement agencies, prosecutors, and social service providers from across the country.
“Targeting and harming America’s children through commercial sex trafficking is a heinous crime, with serious consequences,” said FBI Director James B. Comey. “Every child deserves to be safe and sound. Through targeted measures like Operation Cross Country, we can end the cycle of victimization.”
“Child sex traffickers create a living nightmare for their adolescent victims,” said Leslie R. Caldwell, Assistant Attorney General for the Criminal Division of the Department of Justice. “They use fear and force and treat children as commodities of sex to be sold again and again. This operation puts traffickers behind bars and rescues kids from their nightmare so they can start reclaiming their childhood.”
Operation Cross Country is part of the Innocence Lost National Initiative that was established in 2003 by the FBI’s Criminal Investigative Division, in partnership with the Department of Justice and NCMEC, to address the growing problem of child prostitution.
“Operation Cross Country reveals that children are being targeted and sold for sex in America every day,” said John Ryan, president and CEO of NCMEC. “We’re proud to partner with the FBI and provide support to both law enforcement and victim specialists in the field as they help survivors take that first step toward freedom.”
To date, the FBI and its task force partners have recovered nearly 3,600 children from the streets. The investigations and subsequent 1,450 convictions have resulted in lengthy sentences, including 14 life terms and the seizure of more than $3.1 million in assets.
Task force operations usually begin as local enforcement actions that target truck stops, casinos, street “tracks,” and websites that advertise dating or escort services, based on intelligence gathered by officers working in their respective jurisdictions. Initial arrests are often violations of local and state laws relating to prostitution or solicitation. Information gleaned from those arrested frequently uncovers organized efforts to prostitute women and children across many states. FBI agents further develop this evidence in partnership with U.S. Attorney’s Offices and the U.S. Department of Justice’s Child Exploitation and Obscenity Section so that prosecutors can help bring federal charges in those cities where child prostitution occurs.
The Innocence Lost National Initiative partners with NCMEC to provide training for state and federal law enforcement agencies, prosecutors, and social service providers from across the country.
Tuesday, June 24, 2014
Is the Polish Government Under Attack from Organized Crime Groups?
The United States remains "a very important ally" to Poland and that will not change despite the leak of disparaging remarks by the country's top diplomat, the president said Monday.
President Bronislaw Komorowski spoke a day after the magazine Wprost released a transcript in which Foreign Minister Radek Sikorski said Poland's alliance with the U.S. is worthless and even harmful for the eastern European country because it created a false sense of security. "The United States is our very important ally and partner," Komorowski told reporters in Warsaw.
Transcripts of bugged restaurant conversations between top officials are rocking Prime Minister Donald Tusk's center-right government and critics have urged that it resign.
Earlier Monday, Tusk said he will not dismiss officials whose compromising conversations were caught on tape in what he called a "criminal" action by "ill-intentioned people."
Sikorski asserted Monday that organized crime was behind the secret recordings. "The government was attacked by an organized crime group," Sikorski said in Luxembourg. "We don't yet know who stands behind it."
He offered no proof for his statement.
The magazine says the recordings came from a "businessman" who did not do the taping and were made in the private VIP rooms of Warsaw restaurants.
In the transcript released by Wprost, Sikorski used vulgar terms while telling the former finance minister, Jacek Rostowski, the Polish-U.S. alliance is not helping Poland. "The Polish-American alliance isn't worth anything. It is even harmful because it gives Poland a false sense of security," Sikorski said. "(We are) suckers, total suckers."
In Washington, State Department spokeswoman Marie Harf wouldn't comment directly on the tapes, but said "the United States and Poland have an incredibly strong relationship ... based on shared values."
"It's a key part of our alliances in that part of the world. And the crisis in Ukraine, I think, has made that even more the case, where we're confronting a shared threat together," Harf said.
Earlier, Wprost released a conversation between Central Bank head Marek Belka and Interior Minister Bartlomiej Sienkiewicz where they discussed how the bank could help the governing party win re-election in 2015, a seeming violation of the bank's independence.
Thanks to Vanessa Gera.
President Bronislaw Komorowski spoke a day after the magazine Wprost released a transcript in which Foreign Minister Radek Sikorski said Poland's alliance with the U.S. is worthless and even harmful for the eastern European country because it created a false sense of security. "The United States is our very important ally and partner," Komorowski told reporters in Warsaw.
Transcripts of bugged restaurant conversations between top officials are rocking Prime Minister Donald Tusk's center-right government and critics have urged that it resign.
Earlier Monday, Tusk said he will not dismiss officials whose compromising conversations were caught on tape in what he called a "criminal" action by "ill-intentioned people."
Sikorski asserted Monday that organized crime was behind the secret recordings. "The government was attacked by an organized crime group," Sikorski said in Luxembourg. "We don't yet know who stands behind it."
He offered no proof for his statement.
The magazine says the recordings came from a "businessman" who did not do the taping and were made in the private VIP rooms of Warsaw restaurants.
In the transcript released by Wprost, Sikorski used vulgar terms while telling the former finance minister, Jacek Rostowski, the Polish-U.S. alliance is not helping Poland. "The Polish-American alliance isn't worth anything. It is even harmful because it gives Poland a false sense of security," Sikorski said. "(We are) suckers, total suckers."
In Washington, State Department spokeswoman Marie Harf wouldn't comment directly on the tapes, but said "the United States and Poland have an incredibly strong relationship ... based on shared values."
"It's a key part of our alliances in that part of the world. And the crisis in Ukraine, I think, has made that even more the case, where we're confronting a shared threat together," Harf said.
Earlier, Wprost released a conversation between Central Bank head Marek Belka and Interior Minister Bartlomiej Sienkiewicz where they discussed how the bank could help the governing party win re-election in 2015, a seeming violation of the bank's independence.
Thanks to Vanessa Gera.
David Malcom Strickland, Alleged Stone Cold Killer, Captured Fugitive Facing Capital Murder & Sexual Assault Charges
David Malcom Strickland, 27, was arrested by members of the United States Marshals Service Lone Star Fugitive Task Force (LSFTF) in Helotes, TX. Arrest warrants were issued for Strickland pursuant to an investigation by the Portland Police Department (PPD) and Texas Rangers (TR) on charges involving Capital Murder, Aggravated Assault with a Weapon, and Aggravated Sexual Assault.
The LSFTF was contacted by the TR for assistance in locating and apprehending Strickland. Through joint investigative efforts, task force officers and rangers determined that Strickland was hiding out at an apartment in the 12000 block of Bandera Road in Helotes. Task force officers and rangers conducted a brief surveillance and approached the apartment. Task force officers and rangers entered the apartment, identified themselves, and made contact with Strickland. Strickland was then taken into custody without incident.
On June 23, 2012, Strickland was allegedly involved in sexually assaulting and shooting two women in the head. The heinous assault took place at a park located in Portland, TX. Both women were left for dead in a grassy area of the park, but were later found by a couple passing by. One of the victims had succumbed to the gunshot wound, but the other victim survived. After an extensive investigation conducted by the PPD and TR, today, warrants were issued for Strickland’s arrest.
Strickland is currently being held in custody at the Helotes Police Department awaiting extradition to the San Patricio County Jail to face pending charges.
Robert R. Almonte, United States Marshal for the Western District of Texas, states, “I am thrilled that the collaborative efforts of the Lone Star Fugitive Task Force, Texas Rangers, and Portland Police Department resulted in Strickland’s arrest. He’s a stone cold killer who thought he got away with murder, but will finally pay for his crime. My sympathies and condolences go to the victims and their families who had to endure this wicked act of violence.”
The LSFTF was contacted by the TR for assistance in locating and apprehending Strickland. Through joint investigative efforts, task force officers and rangers determined that Strickland was hiding out at an apartment in the 12000 block of Bandera Road in Helotes. Task force officers and rangers conducted a brief surveillance and approached the apartment. Task force officers and rangers entered the apartment, identified themselves, and made contact with Strickland. Strickland was then taken into custody without incident.
On June 23, 2012, Strickland was allegedly involved in sexually assaulting and shooting two women in the head. The heinous assault took place at a park located in Portland, TX. Both women were left for dead in a grassy area of the park, but were later found by a couple passing by. One of the victims had succumbed to the gunshot wound, but the other victim survived. After an extensive investigation conducted by the PPD and TR, today, warrants were issued for Strickland’s arrest.
Strickland is currently being held in custody at the Helotes Police Department awaiting extradition to the San Patricio County Jail to face pending charges.
Robert R. Almonte, United States Marshal for the Western District of Texas, states, “I am thrilled that the collaborative efforts of the Lone Star Fugitive Task Force, Texas Rangers, and Portland Police Department resulted in Strickland’s arrest. He’s a stone cold killer who thought he got away with murder, but will finally pay for his crime. My sympathies and condolences go to the victims and their families who had to endure this wicked act of violence.”
Monday, June 23, 2014
Jewelry Store Owner, Vijay Verma, Admits Role in International, $200 Million Credit Card Fraud Scheme
A New Jersey jewelry store owner who used his business to further one of the largest credit card fraud schemes ever charged by the Justice Department, became the 18th conspirator to admit his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Vijay Verma, 46, of Iselin, N.J., pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of access device fraud. According to documents filed in this case and statements made in court:
Verma was indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Verma admitted he allowed others who came to his Jersey City, N.J., store to swipe cards he knew did not legitimately belong to them. Verma would then split the proceeds of the phony transactions with these other conspirators. The count to which Verma pleaded guilty carries a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 25, 2014.
Vijay Verma, 46, of Iselin, N.J., pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of access device fraud. According to documents filed in this case and statements made in court:
Verma was indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Verma admitted he allowed others who came to his Jersey City, N.J., store to swipe cards he knew did not legitimately belong to them. Verma would then split the proceeds of the phony transactions with these other conspirators. The count to which Verma pleaded guilty carries a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 25, 2014.
DCFS Auditor, Kaneasha L. Gordon, Pleads Guilty to Theft from a Federal Program
KANEASHA L. GOSTON, age 38, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge James J. Brady to theft from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A). She faces up to 10 years’ imprisonment, a fine up to $250,000, forfeiture of the proceeds from the offense, restitution, and up to three years of supervised release following a term of imprisonment. A sentencing date has not yet been set.
GOSTON was employed with DCFS’s Bureau of Auditing and Compliance Services which was responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded; and ensuring compliances with management policies, as well as federal and state laws and regulations. During the period she was employed with this department, DCFS received over a billion dollars annually in federal funds.
GOSTON admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts which were submitted were signed both by GOSTON and by DCFS Audit Director, Delrice Augustus, who also recently pled guilty as part of this scheme. When the requested amount of reimbursement would be received, GOSTON and Augustus would split the fraudulent payments. Augustus has been charged and pled guilty for his role in this and related fraudulent conduct.
U.S. Attorney Green stated: “Public corruption will continue to be a priority for this office, particularly when such corruption involves officials responsible for the proper handling of millions in federal funds. In waging this fight, we are encouraged by the active cooperation and assistance provided by the DCFS leadership in this investigation. The vast majority of public servants at DCFS are honest and hardworking individuals who despise corruption. All public servants should be vigilant against corruption and report wrongdoing immediately.”
Louisiana Inspector General Stephen Street commented: “Those who abuse positions of trust in order to steal from the taxpayers should know that the risk of criminal prosecution is high. This guilty plea is the latest example of that.”
GOSTON was employed with DCFS’s Bureau of Auditing and Compliance Services which was responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded; and ensuring compliances with management policies, as well as federal and state laws and regulations. During the period she was employed with this department, DCFS received over a billion dollars annually in federal funds.
GOSTON admitted to submitting fraudulent reimbursement receipts to receive money for official state travel that did not occur. The fake receipts which were submitted were signed both by GOSTON and by DCFS Audit Director, Delrice Augustus, who also recently pled guilty as part of this scheme. When the requested amount of reimbursement would be received, GOSTON and Augustus would split the fraudulent payments. Augustus has been charged and pled guilty for his role in this and related fraudulent conduct.
U.S. Attorney Green stated: “Public corruption will continue to be a priority for this office, particularly when such corruption involves officials responsible for the proper handling of millions in federal funds. In waging this fight, we are encouraged by the active cooperation and assistance provided by the DCFS leadership in this investigation. The vast majority of public servants at DCFS are honest and hardworking individuals who despise corruption. All public servants should be vigilant against corruption and report wrongdoing immediately.”
Louisiana Inspector General Stephen Street commented: “Those who abuse positions of trust in order to steal from the taxpayers should know that the risk of criminal prosecution is high. This guilty plea is the latest example of that.”
Joint Statement from the Office of the Director of National Intelligence and the Department of Justice on the Declassification of Renewal of Collection Under Section 501 of the Foreign Intelligence Surveillance Act
Earlier this year in a speech at the Department of Justice, President Obama announced a transition that would end the Section 215 bulk telephony metadata program as it previously existed, and that the government would establish a mechanism that preserves the capabilities we need without the government holding this bulk data. As a first step in that transition, the President directed the Attorney General to work with the Foreign Intelligence Surveillance Court (FISC) to ensure that, absent a true emergency, the telephony metadata can only be queried after a judicial finding that there is a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization. The President also directed that the query results must be limited to metadata within two hops of the selection term instead of three. These two changes were put into effect in February 2014. In addition to directing those immediate changes to the program, the President also directed the Intelligence Community and the Attorney General to develop options for a new approach to match the capabilities and fill gaps that the Section 215 program was designed to address without the government holding this metadata. After carefully considering the available options, the President announced in March that the best path forward is that the government should not collect or hold this data in bulk, and that it remain at the telephone companies with a legal mechanism in place which would allow the government to obtain data pursuant to individual orders from the FISC approving the use of specific numbers for such queries. The President also noted that legislation would be required to implement this option and called on Congress to enact this important change to the Foreign Intelligence Surveillance Act (FISA).
Consistent with the President’s March proposal, in May, the House of Representatives passed H.R. 3361, the USA FREEDOM Act, which would, if enacted, create a new mechanism for the government to obtain this telephony metadata pursuant to individual orders from the FISC, rather than in bulk. The bill also prohibits bulk collection through the use of Section 215, FISA pen registers and trap and trace devices, and National Security Letters. Overall, the bill’s significant reforms would provide the public greater confidence in our programs and the checks and balances in the system, while ensuring our intelligence and law enforcement professionals have the authorities they need to protect the Nation. The Administration strongly supports the USA FREEDOM Act. We urge the Senate to swiftly consider it, and remain ready to work with Congress to clarify that the bill prohibits bulk collection as noted above, as necessary.
Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the Section 215 telephony metadata program, the government has sought a 90-day reauthorization of the existing program, as modified by the changes the President announced earlier this year. Consistent with prior declassification decisions, in light of the significant and continuing public interest in the telephony metadata collection program, the Director of National Intelligence, James Clapper, has declassified the fact that the government’s application to renew the program was approved yesterday by the FISC . The order issued yesterday expires on Sept. 12, 2014. The Administration is undertaking a declassification review of this most recent court order and an accompanying memorandum opinion for publication.
Consistent with the President’s March proposal, in May, the House of Representatives passed H.R. 3361, the USA FREEDOM Act, which would, if enacted, create a new mechanism for the government to obtain this telephony metadata pursuant to individual orders from the FISC, rather than in bulk. The bill also prohibits bulk collection through the use of Section 215, FISA pen registers and trap and trace devices, and National Security Letters. Overall, the bill’s significant reforms would provide the public greater confidence in our programs and the checks and balances in the system, while ensuring our intelligence and law enforcement professionals have the authorities they need to protect the Nation. The Administration strongly supports the USA FREEDOM Act. We urge the Senate to swiftly consider it, and remain ready to work with Congress to clarify that the bill prohibits bulk collection as noted above, as necessary.
Given that legislation has not yet been enacted, and given the importance of maintaining the capabilities of the Section 215 telephony metadata program, the government has sought a 90-day reauthorization of the existing program, as modified by the changes the President announced earlier this year. Consistent with prior declassification decisions, in light of the significant and continuing public interest in the telephony metadata collection program, the Director of National Intelligence, James Clapper, has declassified the fact that the government’s application to renew the program was approved yesterday by the FISC . The order issued yesterday expires on Sept. 12, 2014. The Administration is undertaking a declassification review of this most recent court order and an accompanying memorandum opinion for publication.
Sunday, June 22, 2014
Pope Francis, @Pontifex, Excommunicates #Mobsters with Calabrian Mafia from Catholic Church
Pope Francis concluded his one-day trip to the southern Italian region of Calabria with strong words against the Calabrian mafia, calling it “adoration of evil and contempt for the common good.”
“Those who in their lives have taken this evil road, this road of evil, such as the mobsters, they are not in communion with God, they are excommunicated,” he said to applause.
The Pope
made these statements on Saturday during the feast-day Mass he presided for Corpus Domini on the plains of the small town of Sibari, a once-important city in the Hellenistic period of Calabrian history.
Organizers planned for 200,000 faithful to attend. They gathered under the hot sun, with temperatures flirting around the 30-degree mark. Sitting in the first rows of the assembly were those with illness and disability, rather than local dignitaries—a decision the local bishop chose to underline ahead of the Pope’s trip.
The Pope’s visit to the region, marked by violence and corruption and renowned for mafia activity, was highly anticipated by the locals, who in recent months were rocked by the murder of Fr. Lazzaro Longobardi, as well as the death of a three-year-old boy, the innocent victim of a mafia homicide.
In his homily, the Pope spoke about the evils that can occur when adoration of God is replaced by adoration of money. “Your land, which so beautiful, knows the signs of the consequences of this sin," he told those assembled. "This evil must be fought, must be expelled.” He called on the local Church to expend itself even more “so that good can prevail”.
“Our children ask this of us,” he added.
He said faith can help in responding to these demands. He called the faithful of the Church in Calabria to be brothers and to show each other practical solidarity, noting signs of hope in local families and in the Church. He also urged young people not to allow themselves to be robbed of hope.
He told the faithful his trip was intended to express his support for the local Church, to confirm the people in faith and charity, and to encourage them in their journey with Jesus Christ.
“Today,” he continued, “we ask the Lord to enlighten us and to convert us, so that we truly adore only him and we renounce evil in all its forms.”
He concluded, saying that in adoring Christ and following him, parishes will grow in faith and charity and they will be places where people walk alongside each other and support, help and love each other, even in difficult moments
Thanks to Vatican Radio.
“Those who in their lives have taken this evil road, this road of evil, such as the mobsters, they are not in communion with God, they are excommunicated,” he said to applause.
The Pope
made these statements on Saturday during the feast-day Mass he presided for Corpus Domini on the plains of the small town of Sibari, a once-important city in the Hellenistic period of Calabrian history.Organizers planned for 200,000 faithful to attend. They gathered under the hot sun, with temperatures flirting around the 30-degree mark. Sitting in the first rows of the assembly were those with illness and disability, rather than local dignitaries—a decision the local bishop chose to underline ahead of the Pope’s trip.
The Pope’s visit to the region, marked by violence and corruption and renowned for mafia activity, was highly anticipated by the locals, who in recent months were rocked by the murder of Fr. Lazzaro Longobardi, as well as the death of a three-year-old boy, the innocent victim of a mafia homicide.
In his homily, the Pope spoke about the evils that can occur when adoration of God is replaced by adoration of money. “Your land, which so beautiful, knows the signs of the consequences of this sin," he told those assembled. "This evil must be fought, must be expelled.” He called on the local Church to expend itself even more “so that good can prevail”.
“Our children ask this of us,” he added.
He said faith can help in responding to these demands. He called the faithful of the Church in Calabria to be brothers and to show each other practical solidarity, noting signs of hope in local families and in the Church. He also urged young people not to allow themselves to be robbed of hope.
He told the faithful his trip was intended to express his support for the local Church, to confirm the people in faith and charity, and to encourage them in their journey with Jesus Christ.
“Today,” he continued, “we ask the Lord to enlighten us and to convert us, so that we truly adore only him and we renounce evil in all its forms.”
He concluded, saying that in adoring Christ and following him, parishes will grow in faith and charity and they will be places where people walk alongside each other and support, help and love each other, even in difficult moments
Thanks to Vatican Radio.
Saturday, June 21, 2014
Friday, June 20, 2014
"The White Boy Confessions" Chronicles Gang Life, Violence, Poverty and Race Relations in San Antonio, Texas
The White Boy Confessions: The Explosive Story of Marcus Valdespino and San Antonio's Hood, the powerful autobiography of San Antonio native Marcus Valdespino. White Boy Confessions deals with gang life and violence in San Antonio and such controversial subjects as race relations, poverty, and interracial crime. The first twenty-nine years of Valdespino’s life were compelling and tragic. Valdespino witnessed his father’s drug dealing to high profile people and he, unfortunately, followed in his footsteps. Valdespino’s story shows the worst of humanity and is chilling in its depiction of sex and violence and heartfelt, poignant and sad in its betrayal of the rite of passage of a young person growing up in this world.
The White Boys Confessions is also extremely powerful in its social and political commentary. There are several layers of the story contained within it that are both frightening and humorous. As white boy operated primarily in an African American environment, Valdespino had to prove his worth beyond a reasonable doubt. Yet, he went from a know nothing white kid of the streets in 1989 to second in command to a drug dealer in charge of a crack cocaine empire. The FEDS were after him and his crew from 1998 to 2000. There were many shoot outs, home invasions, beat downs, violent rapes, police raids, graphic explicit sex, human trafficking and even a murder.
Today, all of Valdespino’s friends are in the penitentiary, dead or their whereabouts are unknown. Yet, by some miracle he went unscathed and experienced no penitentiary time.. All of Valdespino’s story—the bad and the ugly-- is in The White Boy Confessions, a story of not just survival but also redemption.
Valdespino’s story shows the worst of humanity and is chilling in its depiction of sex and violence and heartfelt, poignant and sad in its betrayal of the rite of passage of a young person growing up in this world.
The White Boys Confessions is also extremely powerful in its social and political commentary. There are several layers of the story contained within it that are both frightening and humorous. As white boy operated primarily in an African American environment, Valdespino had to prove his worth beyond a reasonable doubt. Yet, he went from a know nothing white kid of the streets in 1989 to second in command to a drug dealer in charge of a crack cocaine empire. The FEDS were after him and his crew from 1998 to 2000. There were many shoot outs, home invasions, beat downs, violent rapes, police raids, graphic explicit sex, human trafficking and even a murder.
Today, all of Valdespino’s friends are in the penitentiary, dead or their whereabouts are unknown. Yet, by some miracle he went unscathed and experienced no penitentiary time.. All of Valdespino’s story—the bad and the ugly-- is in The White Boy Confessions, a story of not just survival but also redemption.
Thursday, June 19, 2014
Jewelry Store Owner Pleads Guilty in International $200 Million Credit Card Fraud Conspiracy
A New Jersey jewelry store owner who used his business to further one of the largest credit card fraud schemes ever charged by the Justice Department admitted his role in the scheme, the 17th conspirator to do so, New Jersey U.S. Attorney Paul J. Fishman announced.
Vinod Dadlani, 51, of Lyndhurst, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Dadlani was indicted in October 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Dadlani’s jewelry store, among many other locations, where Dadlani would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and then run up large charges.
The scope of the criminal fraud enterprise required Dadlani’s conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses for the false identities.
During his guilty plea proceeding, Dadlani admitted he worked with other conspirators, who came to his Jersey City, New Jersey store and allowed them to swipe cards he knew did not legitimately belong to them. Dadlani would then split the proceeds of the phony transactions with the conspirators.
The count to which Dadlani pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine or twice the gain or loss caused by the offense.
Dadlani is scheduled for sentencing by Judge Thompson on September 24, 2014.
Vinod Dadlani, 51, of Lyndhurst, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Dadlani was indicted in October 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts—causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Dadlani’s jewelry store, among many other locations, where Dadlani would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and then run up large charges.
The scope of the criminal fraud enterprise required Dadlani’s conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments, and post office boxes, which they used as the mailing addresses for the false identities.
During his guilty plea proceeding, Dadlani admitted he worked with other conspirators, who came to his Jersey City, New Jersey store and allowed them to swipe cards he knew did not legitimately belong to them. Dadlani would then split the proceeds of the phony transactions with the conspirators.
The count to which Dadlani pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine or twice the gain or loss caused by the offense.
Dadlani is scheduled for sentencing by Judge Thompson on September 24, 2014.
Friday, June 13, 2014
New Book Investigates One of America's Most Controversial Spy Cases #SpyofDavid
Strategic Media Books is pleased to announce the publication of a timely book that profiles one of the biggest spy cases in U.S. history. Winston Churchill’s description of Stalinist Russia in 1939 – he called it “a riddle, wrapped in a mystery, inside an enigma” – easily could have been said about the case of Jonathan Jay Pollard, the U.S. Naval Intelligence analyst who, in March of 1987, received a mystifying life sentence for passing classified secrets to Israel, an American ally . Now, twenty-seven years later, the debate over America’s most controversial spy has apparently once again been rekindled.
A sequel
to author Elliot Goldenberg’s previous book, The Hunting Horse, Spy of David: The Strange Case of Jonathan Pollard and the Two Decade Battle to Win his Freedomchronicles the obstacles faced by Goldenberg and his partner in a motion picture project as they navigate the perilous waters of Hollywood and Washington in an attempt to not only separate fact from fiction about the Pollard spy case but, hopefully, make a feature film based on The Hunting Horse.
Always provocative, Spy of David intertwines the story of America’s most debated case of espionage with the dangers of international Islamic terrorism (including Middle Eastern ties to the Oklahoma City bombing), and the selling of a major motion picture. Simply put, Spy of David is an attempt to shed a bright light over a dark stain on both the American judicial system and our intelligence community, while, at the same time, solve a decades-old puzzle – knowing that, for way too long, the truth surrounding this most gut-wrenching of spy cases has remained hidden, blurred, and obscured.
A sequel
to author Elliot Goldenberg’s previous book, The Hunting Horse, Spy of David: The Strange Case of Jonathan Pollard and the Two Decade Battle to Win his Freedomchronicles the obstacles faced by Goldenberg and his partner in a motion picture project as they navigate the perilous waters of Hollywood and Washington in an attempt to not only separate fact from fiction about the Pollard spy case but, hopefully, make a feature film based on The Hunting Horse.Always provocative, Spy of David intertwines the story of America’s most debated case of espionage with the dangers of international Islamic terrorism (including Middle Eastern ties to the Oklahoma City bombing), and the selling of a major motion picture. Simply put, Spy of David is an attempt to shed a bright light over a dark stain on both the American judicial system and our intelligence community, while, at the same time, solve a decades-old puzzle – knowing that, for way too long, the truth surrounding this most gut-wrenching of spy cases has remained hidden, blurred, and obscured.
Thursday, June 12, 2014
Protect Your Computer from Malware
- Make sure you have updated antivirus software on your computer.
- Enable automated patches for your operating system and web browser.
- Have strong passwords, and don’t use the same passwords for everything.
- Use a pop-up blocker.
- Only download software—especially free software—from sites you know and trust (malware can also come in downloadable games, file-sharing programs, and customized toolbars).
- Don’t open e-mail attachments in unsolicited e-mails, even if they come from people in your contact list, and never click on a URL contained in an e-mail, even if you think it looks safe. Instead, close out the e-mail and go to the organization’s website directly.
- Enable automated patches for your operating system and web browser.
- Have strong passwords, and don’t use the same passwords for everything.
- Use a pop-up blocker.
- Only download software—especially free software—from sites you know and trust (malware can also come in downloadable games, file-sharing programs, and customized toolbars).
- Don’t open e-mail attachments in unsolicited e-mails, even if they come from people in your contact list, and never click on a URL contained in an e-mail, even if you think it looks safe. Instead, close out the e-mail and go to the organization’s website directly.
Monday, June 09, 2014
Investment Adviser, Patricia S. Miller, Charged with Stealing Client Funds in Massive Ponzi Scheme
A Pennsylvania woman affiliated with a Massachusetts-based broker dealer was arrested on charges that she orchestrated a massive Ponzi scheme.
Patricia S. Miller, 67, was charged in a complaint with wire fraud and arrested in Pennsylvania today.
The complaint alleges that Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that Miller never made on their behalf. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Instead of investing money as promised, Miller misappropriated client funds for her own personal use.
If convicted, Miller faces a maximum sentence under the statute of 20 years in prison, three years of supervised release, and a $250,000 fine.
Patricia S. Miller, 67, was charged in a complaint with wire fraud and arrested in Pennsylvania today.
The complaint alleges that Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that Miller never made on their behalf. Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.” Miller represented, among other things, that funds put into her investment clubs would be placed in fixed-income notes and other investments. Instead of investing money as promised, Miller misappropriated client funds for her own personal use.
If convicted, Miller faces a maximum sentence under the statute of 20 years in prison, three years of supervised release, and a $250,000 fine.
Violence is Entrenched in Chicago #MurderCityUSA
When a 14-year-old Chicago girl was arrested on charges that she shot and killed another 14-year-old Chicago girl, much of the attention centered on how the shooting stemmed from an argument over a boy that was playing out on Facebook. But to hear police, prosecutors and the victim's friends tell it, the slaying of Endia Martin was also a tragedy that could have been stopped by many people along the way — from a trusted uncle charged with bringing the teen a gun and watching as she opened fire, to an aunt who authorities say did not step in, to the victim herself, who did not heed classmates' warnings that she risked facing a gun on that April afternoon.
The war of words ended with Martin joining the longest list of homicides in any city in the nation — offering a glimpse at life and death in some pockets of Chicago, where a reflex to grab a gun has become entrenched enough that even the victim understood the other teen might be armed.
"They are making her look like a monster when she was just a love-starved child who turned to the wrong person," said Jerry Thomas, 48, a neighbor of the accused girl and acquaintance of the uncle, 25-year-old Donnell Flora, who is charged with first-degree murder. "This thing took both children's lives."
The girl charged with first-degree murder, accused of shooting Martin in the back on April 28, appeared in juvenile court Friday for a brief hearing. She was flanked by her mother and grandmother off to one side, and the mother of the victim and other relatives standing a few feet away on the other side. The Associated Press is not releasing the girl's name because she is a minor.
Martin, who wanted to be a nurse like her mother, became the latest symbol of the violence that has put Chicago at the center of a national debate about gun crime. In 2012, the city recorded more than 500 homicides — nearly 100 more than New York. The numbers have since dropped, though Chicago still leads the nation.
Endia Martin's death highlights another part of the same Chicago story: Not of a gang dispute, but one of neighborhoods where police say firearms are so easy to find, so accepted, that a good student and respectful child allegedly contacted an uncle — himself, police say, a known gang member who has been in a wheelchair since he was shot in 2010 — and asked him to bring her a gun.
"How could he do that?' Kent Kennedy, Endia's stepfather, asked after the hearing. Kennedy, who called Endia and the suspect friends who'd graduated from eighth grade together, said he can't believe all the things that weren't done. "Just to get there on the bus, the uncle had to (travel) an hour, hour and a half on public transportation on, how could he not grab his niece and say, you should leave from this area?"
The minister who eulogized Endia at her funeral suggested that if the allegations about Flora are true, he was a man passing on a way of life he could no longer have himself. "If you're shot and paralyzed, what do you do?" asked Pastor Larry Martin, who is not related to Endia. "You can't be the villain in the neighborhood in a wheelchair, but you can help empower someone else."
Police Superintendent Garry McCarthy pointed to Flora's earlier refusal to cooperate with investigators after he was shot as a "'classic example of the cycle of violence ... that exemplifies what we are up against." McCarthy noted the prevalence of guns, and lenient sentences for gun crimes, as one of the main problems behind the city's violence.
The teen charged in the slaying was, according to Thomas, a nice girl who always had a book in her hand and said hello on her way to school. Both she and her uncle are represented by Cook County's public defender's office, which declined to comment.
Authorities also contended the suspect's aunt could have intervened. During a court hearing, a police officer testified that 32-year-old Vandetta Redwood encouraged the suspect and other teens to "kick their ass."
Footage from a cellphone camera appears to confirm Redwood was at the fight, said her attorney. But he argued there was no evidence she played a role in the shooting and a judge agreed, dismissing mob action and obstruction charges against her. Redwood declined comment.
At Endia's high school, there's talk among students of a different outcome had she listened to classmates who heard someone might bring a gun. "But she didn't expect anyone to actually use it," said one of the classmates who tried to talk Endia out of going to the scene of the fight. The classmate, who has known both girls since elementary school, spoke on condition of anonymity due to concern about retaliation. "Sometimes they bring guns to a fight — it happens."
Thanks to Don Babwin.
The war of words ended with Martin joining the longest list of homicides in any city in the nation — offering a glimpse at life and death in some pockets of Chicago, where a reflex to grab a gun has become entrenched enough that even the victim understood the other teen might be armed.
"They are making her look like a monster when she was just a love-starved child who turned to the wrong person," said Jerry Thomas, 48, a neighbor of the accused girl and acquaintance of the uncle, 25-year-old Donnell Flora, who is charged with first-degree murder. "This thing took both children's lives."
The girl charged with first-degree murder, accused of shooting Martin in the back on April 28, appeared in juvenile court Friday for a brief hearing. She was flanked by her mother and grandmother off to one side, and the mother of the victim and other relatives standing a few feet away on the other side. The Associated Press is not releasing the girl's name because she is a minor.
Martin, who wanted to be a nurse like her mother, became the latest symbol of the violence that has put Chicago at the center of a national debate about gun crime. In 2012, the city recorded more than 500 homicides — nearly 100 more than New York. The numbers have since dropped, though Chicago still leads the nation.
Endia Martin's death highlights another part of the same Chicago story: Not of a gang dispute, but one of neighborhoods where police say firearms are so easy to find, so accepted, that a good student and respectful child allegedly contacted an uncle — himself, police say, a known gang member who has been in a wheelchair since he was shot in 2010 — and asked him to bring her a gun.
"How could he do that?' Kent Kennedy, Endia's stepfather, asked after the hearing. Kennedy, who called Endia and the suspect friends who'd graduated from eighth grade together, said he can't believe all the things that weren't done. "Just to get there on the bus, the uncle had to (travel) an hour, hour and a half on public transportation on, how could he not grab his niece and say, you should leave from this area?"
The minister who eulogized Endia at her funeral suggested that if the allegations about Flora are true, he was a man passing on a way of life he could no longer have himself. "If you're shot and paralyzed, what do you do?" asked Pastor Larry Martin, who is not related to Endia. "You can't be the villain in the neighborhood in a wheelchair, but you can help empower someone else."
Police Superintendent Garry McCarthy pointed to Flora's earlier refusal to cooperate with investigators after he was shot as a "'classic example of the cycle of violence ... that exemplifies what we are up against." McCarthy noted the prevalence of guns, and lenient sentences for gun crimes, as one of the main problems behind the city's violence.
The teen charged in the slaying was, according to Thomas, a nice girl who always had a book in her hand and said hello on her way to school. Both she and her uncle are represented by Cook County's public defender's office, which declined to comment.
Authorities also contended the suspect's aunt could have intervened. During a court hearing, a police officer testified that 32-year-old Vandetta Redwood encouraged the suspect and other teens to "kick their ass."
Footage from a cellphone camera appears to confirm Redwood was at the fight, said her attorney. But he argued there was no evidence she played a role in the shooting and a judge agreed, dismissing mob action and obstruction charges against her. Redwood declined comment.
At Endia's high school, there's talk among students of a different outcome had she listened to classmates who heard someone might bring a gun. "But she didn't expect anyone to actually use it," said one of the classmates who tried to talk Endia out of going to the scene of the fight. The classmate, who has known both girls since elementary school, spoke on condition of anonymity due to concern about retaliation. "Sometimes they bring guns to a fight — it happens."
Thanks to Don Babwin.
Friday, June 06, 2014
Craig Marshall, Former Trader for ConvergEx Global Markets, Charged with Conspiracy
A former trader for ConvergEx Global Markets Limited (CGM Limited) — a former securities broker-dealer registered in Bermuda — has been charged in the District of New Jersey with conspiracy to commit wire fraud.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.
Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey. On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.
The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.
Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014.
On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey. On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”
Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.
The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.
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