August 26, 2010
A North Providence attorney and a businessman indicted by a federal grand jury on charges of conspiracy, attempted extortion and delivering a bribe entered not guilty pleas Wednesday in U.S. District Court. It is alleged that attorney Robert S. Ciresi, 77, of Hope, and businessman Edward Imondi, 73, of North Providence, acted as middlemen and received a portion of bribes they delivered to three North Providence town councilmen.
Former councilmen Joseph S. Burchfield, Raymond L. Douglas III, and John A. Zambarano, also named in the superseding indictment, pleaded not guilty Monday to conspiracy, extortion, and bribery charges. The indictment alleges the defendants extorted bribes from several businesses appearing before the town council. Zambarano also pleaded not guilty to making a false statement to the FBI.
In order for the government to indict an individual, a one-sided story is presented to the grand jury. Legally, the government does not have to provide any evidence of wrongdoing. The individual(s) that are facing an indictment usually have no indication, and further, are not allowed to present any evidence to a grand jury to rebut the government’s contentions.
Typically, when the FBI brings charges against an individual for making false statements, they attempt to manipulate the individual into discussing a matter or information that the FBI has already obtained in its’ investigation. Then, when the individual makes a statement contrary to what the FBI has already obtained, it can pursue charges of making a false statement. Usually, the individual does not know they are under investigation, and that any information they discuss with FBI agents is fair game to be used against them. It is important to remember that no matter what information the FBI may be seeking, legal representation is necessary to avoid falling into this trap.
The not guilty pleas, which were entered before U.S. District Court Magistrate Judge David L. Martin, were announced by U.S. Attorney Peter F. Neronha. The defendants remain free on $50,000 unsecured bond.
Potential maximum sentences include five years in federal prison, three years’ supervised release, and a $250,000 fine for conspiracy; 10 years in federal prison, three years’ supervised release, and a $250,000 fine for bribery; and 20 years in federal prison, five years’ supervised release, and a $250,000 fine for extortion.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
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McNabb Ferrari - Federal Crimes | Tagged: extortion, false statements, federal criminal defense, conspiracy, federal crimes, Douglas McNabb, Erich Ferrari, federal criminal defense attorneys, north providence, rhode island, peter f. neronha, bribery, robert s. ciresi, edward imondi, joseph s. burchfield, raymond l. douglas III, john a. zambarano, david l. martin, public corruption, corruption case in north providence, public officials | 
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Posted by McNabb Ferrari, P.C.
August 19, 2010
A 28-count federal indictment was unsealed today charging Lance Foucha, age 30, a resident of New Orleans, Louisiana, Alvin Mingo, age 38, a resident of Metarie, Louisiana, Chris Garner, age 30, a resident of New Orleans, Louisiana, Jeffrey Anderson, age 32, a resident of New Orleans, Louisiana, Anthony Lastie, age 32, a resident of New Orleans, Louisiana, Kentrell Paul, age 26, a resident of New Orleans, Louisiana, Carl Foucha, age 32, a resident of New Orleans, Louisiana, Donald Foucha, age 34, a resident of New Orleans, Louisiana, Theron Campbell, age 30, a resident of New Orleans, Louisiana, Rhonda Smith, age 49, a resident of Kenner, Louisiana, Robert Francis, age 23, a resident of Metairie, Louisiana, Mario Burton, age 24, a resident of Slidell, Louisiana, Larry Ramee, age 38, a resident of New Orleans, Louisiana, and Brian Turner, age 38, a resident of Slidell, Louisiana, with violations of federal drug and gun laws, announced U.S. Attorney Jim Letten. To date, 11 of the 14 individuals are in custody.
Specifically, the indictment alleges that beginning in approximately March 2009 until July 2010, the individuals participated in an alleged conspiracy to distribute fifty or more grams of crack cocaine and 500 or more grams powder cocaine. Donald Foucha is also variously charged with six counts of alleged distribution of crack and powder cocaine; and Carl Foucha and Jeffrey Anderson are each charged with one count of alleged distribution of crack cocaine. Lance Foucha is charged in two counts with alleged distribution of crack cocaine as well as five counts of allegedly using a telephone in the commission of a drug trafficking crime. Alvin Mingo is charged with six counts of allegedly using a telephone in the commission of a drug trafficking crime; and the remaining individuals are each charged with one count of allegedly using a telephone in the commission of a drug trafficking crime. Mingo is also charged with one count of alleged possession with the intent to distribute a quantity of cocaine, allegedly possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. Anderson is charged with one count of alleged possession with the intent to distribute a quantity of crack cocaine, allegedly possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
If these individuals are convicted, the judge should follow the new sentencing guidelines as applied to crack cocaine and powder cocaine offenses. President Obama recently signed into law the Fair Sentencing Act of 2010, which significantly reduces the crack cocaine and powder cocaine sentencing discrepancy. For the past few decades the ratio in place was 100:1; an individual in possession of 500 grams of powder cocaine would face a five-year mandatory minimum; crack offenders would have to be in possession of a mere 5 grams to face the same obligatory sentence. The new law reduces the 100:1 ratio to 18:1, which is still not the 1:1 ratio that many lawmakers and drug enforcement agents believe should be in place.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: federal criminal defense, Douglas McNabb, Erich Ferrari, federal criminal defense attorney, conspiracy to distribute crack cocaine, Lance Foucha, Alvin Mingo, Chris Garner, Jeffrey Anderson, Anthony Lastie, Kentrell Paul, Carl Foucha, Donald Foucha, Theron Campbell, Rhonda Smith, Robert Francis, Mario Burton, Larry Ramee, Brian Turner, federal drug and gun laws, conspiracy to distribute cocaine powder, drug trafficking crime, felon in possession of a firearm | Permalink
Posted by McNabb Ferrari, P.C.
August 18, 2010
Lul Noor Abdi, age 42, of Salt Lake City, is charged with making false statements to FBI special agents and task force officers in a two-count indictment unsealed Friday morning.
The indictment alleges Abdi made false and fictitious material statements and representations to the agents and officers. The indictment alleges she told them that she had taken her son to live in Uganda when, as the government contends, she had taken her son to live in Somalia.
The indictment also alleges Abdi told agents and officers that she was supporting her son by sending money to a named individual in Uganda on her son’s behalf when, the government argues, she was sending money to that named individual in Somalia.
The government may have manipulated Abdi into making these alleged false statements. The FBI agents probably arrived at Abdi’s home, did not tell her that she, or her son, were under investigation, and began asking questions. Once Abdi gave information that the agents regard as false, they had the legal right to indict her for making material false statements to the government. Now that the government has indicted her on these charges, they will use it as leverage when attempting to elicit additional information in regards to her son’s whereabouts.
It is a form of trickery against an individual, and the government uses this tactic whenever they are conducting an investigation. It is critical to remember that an individual, when confronted with questions from federal agents, should not answer their questions and seek legal representation immediately.
Abdi was arrested last Thursday. She entered not guilty pleas to the charges at a hearing Friday morning. The potential maximum penalty for each count in the indictment is five years in federal prison and a $250,000 fine.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: false statements, federal crimes, Douglas McNabb, Erich Ferrari, federal criminal defense attorney, lul noor abdi, salt lake city, utah, indictment, uganda, somalia, grand jury indictment | Permalink
Posted by McNabb Ferrari, P.C.
August 13, 2010
Six individuals, named in two indictments returned by a federal grand jury in Dallas last week, and unsealed this morning, have been arrested by federal and local law enforcement on drug distribution conspiracy charges, announced U.S. Attorney James T. Jacks of the Northern District of Texas.
One indictment charges the following persons, all from Vernon, with conspiracy to distribute methamphetamine and cocaine: Armando Rodriguez, Jr., 43, Abraham Socorro Garcia, 22, Mario Escobar, Jr., 24, John Thomas Coston, 26, Beatrice Urista, 22.
All of the above individuals were arrested Tuesday and appeared Wednesday morning before U.S. Magistrate Judge Robert K. Roach in U.S. District Court in Wichita Falls, Texas. All will remain in federal custody pending detention hearings set for next Monday and Tuesday before Judge Roach. In addition to the conspiracy charge, all are charged with at least one substantive count of alleged distribution of cocaine and/or methamphetamine. This indictment also includes a forfeiture allegation which would require the defendants, if convicted, to forfeit real estate as well as all proceeds received as a result of the offenses.
The other indictment charges one defendant, Jimmie Clifford Richardson, 47, also of Vernon, with alleged conspiracy to distribute cocaine base (crack cocaine) as well as with four substantive counts of allegedly distributing crack cocaine. This indictment also includes a forfeiture allegation which will require Richardson, if convicted, to forfeit all proceeds received as a result of his offenses.
Richardson was also arrested Tuesday and appeared before Judge Roach Wednesday morning. He too will remain in custody pending his detention hearing next week.
This case will be forced to deal with new legislation that was signed into law earlier this month, which has narrowed the longstanding sentencing discrepancy between crack cocaine and cocaine powder. The former ratio of 100:1 has now been reduced to 18:1. Before the new law was enacted, an individual in possession of 5 grams of crack cocaine would receive the same sentence as an individual in possession of 500 grams of cocaine powder.
Although the government has attempted to correct the severely unfair discrepancy, the 18:1 ratio still treats crack cocaine offenses more harshly. It is interesting to note that there is no evidence as to why the government believes that crack cocaine should be regarded as more dangerous or deadly than cocaine powder.
In this case, the first indictment alleges that the individuals conspired to distribute methamphetamine and cocaine, however, the second indictment alleges that the individual conspired to distribute cocaine base (crack cocaine). Unfortunately, even though the new law has lowered the ratio to 18:1, if convicted, Richardson will most likely face a longer sentence. The new law is long overdue, but clearly, still imperfect.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: federal criminal defense, Douglas McNabb, Erich Ferrari, texas, federal criminal defense attorney, conspiracy to distribute methamphetamine, conspiracy to distribute cocaine, armando rodriguez, abraham socorro garcia, mario escobar, john thomas coston, beatrice urista, robert k. roach, wichita falls, jimmie clifford richardson, conspiracy to distribute cocaine base, conspiracy to distribute crack cocaine, james t. jacks, discrepancy between crack and cocaine powder, new law reform crack cocaine and cocaine powder | Permalink
Posted by McNabb Ferrari, P.C.
August 12, 2010
A federal grand jury in Tucson returned an 88-count indictment against Anthony Mark Boscarino, 44, of Phoenix, formerly of Tucson, on August 4, 2010. Boscarino is charged with 51 counts of wire fraud, 17 counts of money laundering, 8 counts of mail fraud, and several tax evasion and firearms charges.
The indictment alleges Boscarino used his sports handicapping Internet business, called Mike’s Lock Club, to solicit customers to invest in several fraudulent schemes.
One alleged scheme involved soliciting money from investors to give to a fictitious high limit slot machine player who made regular trips to Las Vegas to play with investor money. The indictment alleges investors wired the defendant more than $7,688,000 and that he diverted approximately $5,000,000 through various financial institutions for his own personal use.
The indictment also charges the defendant with making false statements to the Securities and Exchange Commission, which was investigating one of his schemes, and with evading paying taxes on more than $2.6 million in income in 2008 and 2009, and failing to pay $400,000 in back taxes he had agreed to pay after failing to file taxes from 1999 to 2006. He was also charged with being a convicted felon in possession of two shotguns and one pistol recovered from his Phoenix residence, and allegedly making false statements on a firearm purchase form about his lack of felony convictions when he bought two firearms from a Tucson gun dealer.
An indictment does not mean that the individual is guilty. In fact, because the indictment is granted by a grand jury that is only presented with the government’s story, there is a high likelihood that much of the allegations are not the truth. Unfortunately, the individual being indicted does not have an opportunity to present their case until trial, and has no power to prevent an indictment against themselves.
A conviction for mail fraud or wire fraud carries a maximum penalty of 20 years, and/or a fine of $250,000 or both; 10 years and/or a fine of $250,000 for money laundering; five years and/or a fine of $100,000 for failure to pay taxes and tax evasion; 10 years and/or a fine of $250,000 for possessing a firearm as a convicted felon; and five years and/or a fine of $250,000 for making false statements on a federal form required for the purchase of a firearm.
If convicted, the judge will most likely follow the U.S. Sentencing Guidelines, even though he is not required to do so. Even if Boscarino is acquitted of most of the charges against him, the judge is permitted to consider those as other bad acts, and apply them to his sentence, which is usually very detrimental to the individual.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: false statements, money laundering, wire fraud, mail fraud, federal crimes, anthony mark boscarino, mike's lock club, internet scheme to defraud, tax evasion, felon in possession of firearms, failure to pay taxes, possessing a firearm as a convicted felon, sports handicapping internet business, internet fraud | Permalink
Posted by McNabb Ferrari, P.C.
August 12, 2010
A federal grand jury in San Francisco indicted Samuel Cohen (a/k/a Mouli Cohen), previously of Belvedere, California, on 19 counts of wire fraud and 13 counts of money laundering, United States Attorney Joseph P. Russoniello announced.
The indictment alleges that in late 2002, Cohen advised Hari Dillon, the President of Vanguard Public Foundation (Vanguard), that Microsoft was going to acquire Cohen’s company, Ecast. Ecast was a company based in San Francisco and in the business of providing digital music, games, entertainment, and information to bars and nightclubs. Allegedly, in order to obtain money from investors and lenders, Cohen represented that upon completion of the acquisition, Cohen’s Ecast shares would be exchanged on a 1-for-1 basis for Microsoft shares of stock, which were valued at several times the value of Ecast shares. It is also alleged that Cohen represented that Microsoft’s acquisition of Ecast would be finalized within months of late 2002 and offered to sell his Ecast shares to Dillon and other investors associated with Vanguard at prices ranging from $2 to $3.50 per share. Cohen supposedly advised Dillon and other investors that Microsoft’s acquisition of Ecast required approval of governmental regulatory entities in the United States and the European Union (EU). Allegedly, Cohen told Dillon and other investors that they needed to pay Cohen millions of dollars in order to cover costs associated with the government approval of Microsoft’s acquisition of Ecast, and that if Cohen did not receive the money from the investors to cover the costs, they would lose their investments. According to the indictment, Cohen’s scheme began in 2002 and lasted through 2008.
It is important to remember that the allegations in the indictment present only a one-sided story from the government. In order for a grand jury to indict an individual, the government only needs to present it’s case and is not required to show any evidence. The grand jury is swayed by the government’s supposed facts, and is not allowed to hear from the individual.
Further, if Cohen was alleging to these investors that Microsoft was going to buy Ecast in late 2002, how could the fraud have lasted until 2008? Why didn’t the investors report this sooner if they in fact were concerned with being defrauded of their investments? It seems that the government has tacked on additional counts from subsequent years in order to secure a conviction.
Federal agents arrested Cohen on August 5. He made his initial appearance in federal court the following day, in Los Angeles. The grand jury returned the indictment against Cohen on July 15, 2010. The indictment was unsealed the day of Cohen’s arrest. According to court documents, Cohen defrauded more than 55 victims out of more than $30 million as a result of his scheme.
According to the U.S. Congress, the maximum statutory penalty for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years in prison, a fine of $250,000, and restitution. The maximum statutory penalty for each count of money laundering, in violation of Title 18, United States Code, Section 1957, is 10 years in prison and a fine of $250,000.
The Sentencing Guidelines present a framework which a court is not obligated to follow, but most of the time the court will. Further, even if Cohen is acquitted of most of the counts of wire fraud and money laundering, the judge will still be allowed to consider those bad acts at the time of sentencing, which unfortunately will result in a higher sentence.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: federal criminal defense, money laundering, wire fraud, federal crimes, Douglas McNabb, Erich Ferrari, federal criminal defense attorney, samuel cohen, mouli cohen, hari dillon, vanguard, ecast, microsoft, sentencing guidelines | Permalink
Posted by McNabb Ferrari, P.C.
August 5, 2010
United States Attorney R. Booth Goodwin II announced on Tuesday the filing of charges against two women for their alleged roles in a $2.4 million credit union fraud scheme. A federal grand jury sitting in Beckley, West Virginia returned an indictment against Rebecca Poe, 35, of Falls Mills, Virginia, charging her with fraud against the N&W Poca Division Federal Credit Union located in Bluefield, West Virginia.
Of course, an indictment is granted after the government is allowed, by law, to present a one-sided story to the grand jury. Moreover, the government is not required to present any evidence to prove the allegations to the grand jury.
The indictment alleges Poe, a former employee of the credit union, was taking money from the credit union from 2003 to August 2008 through various schemes. The indictment alleges that Poe created fictitious deposits into her account and the accounts of family members. The deposits were fictitious in that no funds were received by the credit union to support the deposits. Allegedly, Poe then used these funds for personal expenses after making the fictitious deposits. Similarly, the indictment alleges that Poe recorded fictitious payments on her loan accounts and those of family members without the credit union receiving funds. The indictment further alleges that Poe created manual, official checks made payable to family members and to third parties on the credit union’s account to pay for her personal expenses.
If Poe was engaging in these alleged schemes, how did it carry on for so long without being discovered? Five years is a long time frame, and it is interesting that no one at the credit union uncovered this alleged behavior prior to the credit union’s insolvency.
Supposedly, the offense resulted in the loss of $2.4 million dollars to the credit union contributing to its failure. On October 3, 2008, the National Credit Union Administration Board placed the N&W Poca Division Federal Credit Union into involuntary liquidation due to its insolvency.
Again, it seems that the credit union needed someone to blame for it’s insolvency. If Poe was truly engaged in the alleged $2.4 million dollar scheme, someone should have noticed long before the Credit Union closed it’s doors.
The indictment also alleges that Poe was aided and abetted by a former co-worker, Pamela Mullins. Mullins, 46, of Bluefield, West Virginia, is named as an aider and abettor in the indictment, but not as a defendant. However, an information was filed today against Mullins, charging her with defrauding N&W Poca Credit Union. The information alleges that Mullins engaged in similar conduct as Poe.
Why would the government not charge the Poe and Mullins as defendants in the same indictment? Perhaps they simply do not have enough evidence, and this was a way to get around a grand jury indictment against Mullins.
If convicted, each defendant faces a maximum prison term of 30 years, a fine of $4.8 million and an order of restitution.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: federal crimes, Douglas McNabb, Erich Ferrari, federal criminal defense attorney, scheme to defraud, west virginia, credit union fraud scheme, rebecca poe, beckley, n&w poca division federal credit union, bluefield, pamela mullins | Permalink
Posted by McNabb Ferrari, P.C.
August 3, 2010
United States Attorney Karen L. Loeffler announced July 30, 2010, that a grand jury returned two separate indictments charging alleged drug conspiracy and related crimes. The indictments were the result of a two-year investigation initiated by the DEA and the Alaska State Troopers Mat-Su Narcotics Unit; the investigation was joined by numerous agencies, including the FBI, APD, IRS, ICE, ATF, and the Anchorage Airport Police.
A grand jury is only presented with a biased story by the government against those being indicted. In other words, the individuals have no idea that there has been an ongoing investigation against them, and have no opportunity to present any evidence to the grand jury to rebut the government.
The first indictment charges Daniel Isaac Meza, a/k/a Wilber Daniel Meza, age 35, Edwin Giovanni Enriquez, a/k/a “Cat”, age 32, Billy Walter Fuller, age 40, Brandy Leanne Barnes, age 26, Michael George Raab, age 44, Debbie Beisinaiz, age 41, and Cori Jean Hillar, age 38, with conspiring to distribute more than five kilograms of cocaine, more than 50 grams of actual methamphetamine, more than one kilogram of heroin, and a quantity of oxycodone. Individual members of the conspiracy were also indicted with either alleged distribution, attempted distribution, or possession with intent to distribute cocaine, methamphetamine, and heroin on 24 alleged occasions. Additionally, Meza and Raab were each charged with multiple counts of international money laundering relating to drug trafficking. The indictment alleges that the two sent drug proceeds to Mexico, Colombia, and El Salvador on 21 occasions.
Most of the defendants were arraigned this week in federal court on the charges. Barnes was arrested in Washington state yesterday. Raab remains at large, and investigators are seeking information on his whereabouts. Assistant United States Attorney Craig M. Warner, who presented the case to the grand jury, indicated that the law provides for a maximum sentence of life imprisonment, with a mandatory minimum ten years imprisonment, for the conspiracy charged in the first indictment, as well as a $4,000,000 fine and up to five years supervised release following service of a prison sentence. With regard to the separate indictment for conspiracy to distribute within the jail, the law provides for a maximum penalty of 20 years in prison, a $1 million fine, and three years supervised release.
The government investigated these individuals for over two years in order to build up the charges against them. In other words, the government intentionally planned to gather an unnecessary amount of evidence to maximize what they could indict these individuals with, which will ultimately affect their sentence length if found guilty.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: federal criminal defense, drug trafficking, federal criminal defense attorney, danial isaac meza, wilber daniel meza, edwin giovanni enriquez, billy walter fuller, brandy leanne barnes, michael george raab, debbie beisinaiz, cori jean hillar, mexico, columbia, el salvador, international money laundering | Permalink
Posted by McNabb Ferrari, P.C.
August 3, 2010
Kelly Kaufmann Layre, Tina Meyrick, Paul Kling, and Brian Daly were charged last week with bribery relating to an alleged corrupt scheme to sell and obtain traffic accident reports, police incident reports, and fire reports depriving the City of Philadelphia of hundreds of thousands of dollars in fees, announced United States Attorney Zane David Memeger.
The information alleges that Layre, a former employee of the City of Philadelphia Records Department, located in City Hall, solicited bribes on a weekly basis in the form of cash payments from Meyrick, Kling, and Daly for many years, from about 2006 through February 2010, in exchange for providing them each with various reports. Layre allegedly received approximately $185,776 for her personal use and supposedly deprived the City of Philadelphia of over $600,000 in fees. As part of this scheme, Layre sold over 20,000 reports, which are normally sold to the public for a $20 or $25 fee, to Meyrick, Kling, and Daly at a significantly reduced rate. It is further alleged that Meyrick, Kling, and Daly knew that Layre was accepting the cash for her personal use and not providing the funds to the City of Philadelphia.
It would be helpful if we knew how this alleged scheme came into light. If Layre was engaging in this behavior since 2006, why didn’t her supervisor catch on and report it? The government probably received this information from someone else that was trying to work out a plea arrangement and gave the government names and alleged schemes to get a better deal.
It’s also interesting to note that it doesn’t appear that the four individuals were indicted with conspiracy, which means that the government doesn’t have enough evidence to prove that the four individuals were aware that they were engaging in the alleged corruption scheme collectively.
If convicted of all charges, Layre, Meyrick, Kling, and Daly each face a maximum possible sentence of 10 years’ imprisonment, three years of supervised release, a $250,000 fine, a $100 special assessment, and full restitution.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: federal criminal defense, Douglas McNabb, Erich Ferrari, federal criminal defense attorney, bribery, kelly kaufmann layre, tina meyrick, paul king, brian daly, corruption scheme, zane david memeger, scheme to defraud | Permalink
Posted by McNabb Ferrari, P.C.
July 29, 2010
Yesterday a federal grand jury sitting in New Haven, Connecticut, returned an 11-count indictment charging Steven J. Kottage, 44, and Genaro R. Hathaway, 46, both of Weston, and Mary Ellen Durso, 53, of Milford, with conspiracy and other offenses stemming from the individuals’ alleged involvement in mortgage fraud.
Keep in mind that when a grand jury returns an indictment, they have only heard the government’s version of the events. The grand jury has seen no evidence, has not heard from the individuals being investigated, and is not held to the reasonable doubt standard.
The indictment alleges that Kottage and Hathaway, who are married, conspired to commit wire fraud relating to a home on Fire Island, New York. Hathaway, a former attorney in Connecticut and New York, and Kottage purchased and financed the property in the name of Kottage’s mother by filing supposed false loan applications to Wells Fargo Home Mortgage. In each instance, Hathaway served as the closing attorney on behalf of Kottage’s mother and Wells Fargo. The indictment further alleges that Hathaway subsequently purchased the property from Kottage’s mother’s estate in his own name and, in so doing, made a materially false loan application to H&R Block Home Mortgage to obtain a separate mortgage. Allegedly, rather than using the sale proceeds due and owing to Kottage’s mother’s estate to pay off the outstanding loans issued by Wells Fargo, Kottage and Hathaway used those proceeds to pay off an obligation arising from a separate real estate transaction in which Hathaway served as the closing attorney for the seller. The indictment alleges losses exceeding $500,000.
The indictment further alleges that Kottage, Hathaway, and Durso conspired to commit bank fraud by filing a materially false loan application to Washington Mutual to refinance a condominium in Hillsboro Beach, Florida. Supposedly, Durso served as the straw owner for the condo in order to obtain the fraudulent loan proceeds for the benefit of Kottage and Hathaway.
The indictment also charges Hathaway with tax evasion in 2005 and Durso with filing false tax returns from 2004 to 2008.
The indictment charges Kottage and Hathaway with two counts and Durso with one count of conspiracy, a charge that carries a maximum term of imprisonment of 30 years on each count. The indictment further charges Kottage and Hathaway with two counts of wire fraud, a charge that carries a maximum term of imprisonment of 30 years on each count. Kottage, Hathaway and Durso are each charged with one count of bank fraud, which carries a maximum term of imprisonment of 30 years. The one count of tax evasion against Hathaway carries a maximum term of imprisonment of five years, and the five counts of filing false tax returns against Durso carry a maximum term of imprisonment of three years, on each count.
What is interesting about this indictment is the fact that the government has attempted to throw in every charge they can think of against these individuals. It seems that once the government decided to indict the accused with the fraudulent scheme, they wanted to add as much into the indictment as possible, for example, the tax evasion and false tax return charges. The government wants to imprison these individuals for unrelated events, and unfortunately, if this case goes to trial and the accused are found guilty, the additional offenses will have a detrimental effect on the individuals’ ultimate sentence.
Douglas McNabb, Erich Ferrari and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, International Extradition and OFAC litigation.
The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbferrari.com or a member of the firm at any location near you.
Leave a Comment » | McNabb Ferrari - Federal Crimes | Tagged: federal criminal defense, conspiracy, wire fraud, bank fraud, Douglas McNabb, Erich Ferrari, federal criminal defense attorney, Steven J. Kottage, Genaro R. Hathaway, Mary Ellen Durso, mortgage fraud scheme, materially false loan application | Permalink
Posted by McNabb Ferrari, P.C.
