“By JAY REEVES
Associated Press

BIRMINGHAM, Ala. (AP) — A man from Uzbekistan (ooz-behk-ih-STAHN’) has pleaded guilty to terror-related charges in a plot to assassinate President Barack Obama.

Ulugbek Kodirov entered the plea Friday in federal court in Birmingham, Ala. Defense attorney Lance Bell says the 22-year-old man avoided a possible life sentence by pleading guilty. Instead, he now faces about 15 years in prison at sentencing.

Kodirov pleaded guilty to three counts: Threatening to kill the president, possessing an automatic weapon, and providing material support to terrorists.

Kodirov was indicted last July after prosecutors said he bought an automatic rifle from an undercover agent with plans to kill Obama.

Authorities say Kodirov was in the country illegally because he obtained a student visa but never enrolled in school.”

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“FBI Nabs Exec for Illegal Google Trades

By BARBARA LEONARD

MANHATTAN (CN) – A hedge fund manager was indicted Friday for earning $900,000 by allegedly using inside information to trade on Google and other companies.
Doug Whitman, 54, of Atherton, Calif., has been charged with two counts of conspiracy to commit securities fraud and two counts of securities fraud.
He allegedly made $900,000 in illegal profits as head portfolio manager for Whitman Capital by trading on Marvell Technology Group, Polycom and Google.
Karl Motey, an independent research consultant, shared confidential information about Marvell with Whitman between 2007 through about 2009, according to the indictment.
“In exchange for the Inside Information, Whitman paid Motey through a soft dollar payment arrangement between Whitman Capital and Motey’s consulting firm,” prosecutors said in a press release.
Roomy Khan, a hedge fund industry insider, gave Whitman inside information about Polycom Google between 2006 and 2007, according to the indictment.
Whitman could face 50 years in prison and at least $5 million in fines if convicted of all the charges against him.
Motey and Khan previously pleaded guilty to insider-trading charges and are awaiting sentencing. “

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

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“Organization’s Leaders and Many Members Belonged to Bloods Nationwide Gang; Two Members Charged With Firearms-Related Offenses

Preet Bharara, the United States Attorney for the Southern District of New York, Janice K. Fedarcyk, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Wilbert L. Plummer, the Acting Special Agent in Charge of the Drug Enforcement Administration (“DEA”), Joseph A. D’Amico, the Superintendent of the New York State Police, Ramon Bethencourt, the Chief of the Middletown Police Department, Frank Phillips, the Orange County District Attorney, and Carl E. DuBois, the Orange County Sheriff, today announced federal narcotics charges against 33 members of a drug trafficking ring operating in and around Middletown, New York. The ring was led by QUIANE WILLIAMS, CURTIS MACK, and STEPHONE HERRING, who were, along with many other defendants charged today, members of the Bloods, a nationwide gang. WILLIAMS and another defendant, JOSHUA MARTIN, are also charged with firearms-related offenses.

U.S. Attorney Preet Bharara said: “Drug dealing and gang violence shatter the quality of life in a neighborhood—residents are hesitant to leave their homes, children are afraid to play in the streets, and every corner has the potential for lethal violence. We refuse to stand by and let these purveyors of poison destroy our communities, and today’s charges are the latest manifestation of our commitment to rid our street of these dangerous influences. I commend the dedication and teamwork of our federal and state law enforcement partners in our ongoing effort to clean up the Southern District.”

FBI Assistant Director in Charge Janice K. Fedarcyk stated: “Today’s arrests are the result of the kind of teamwork that has proven essential in making real headway against gangs in the Hudson Valley. The 9 Trey Bloods and their drug trafficking have been a detriment to the quality of life in Middletown. The work of the FBI’s Hudson Valley Safe Streets Task Force and our partners will continue in earnest, with the goal being the safety and security of all of our communities.”

DEA Acting Special Agent in Charge Wilbert L. Plummer stated: “DEA works with our law enforcement counterparts to identify and arrest those distributing illegal drugs throughout our communities. Our goal is to keep our streets safe from drug abuse and the violence associated. The 9 Trey gang has been taken down and will no longer be distributing heroin and crack in the Middletown area. I would like to acknowledge the work of all the law enforcement entities that participated in this investigation.”

New York State Police Superintendent Joseph A. D’Amico stated: “The problems associated with the proliferation of illicit drugs in our communities is compounded by the levels of gun- and drug-related violence that are committed by gang members looking to control the narcotics trade. These criminals have no regard for the safety of the community. This case, investigated with our law enforcement partners over a period of several years, has resulted in the arrest of a large number of violent offenders within these gangs. This case will significantly impact the ability of organized gangs to profit from the sale of narcotics in the Orange County area, and will keep them out of our communities for the foreseeable future.”

Middletown Police Chief Ramon Bethencourt stated: “As a result of this investigation, numerous individuals have been arrested and charged with serious offenses which serve to diminish the quality of life for the Middletown community. Both Mayor Joseph DeStefano and I are hopeful and confident that this investigation will lead to a reduction in crime and make Middletown a better, safer place to live.”

Orange County District Attorney Frank Phillips stated: “This operation is another example of the successful partnership forged between federal, state, and local law enforcement as well as that between the Orange County DA and U.S. Attorney Preet Bharara. The gang members arrested today use violence to terrorize the community while engaged in the drug trade. New York State ‘drug law reform’ has essentially eliminated the ability of police and prosecutors to dismantle these criminal enterprises, and the federal commitment has helped tremendously to reduce the level of drug gang violence. We are fortunate to have a U.S. Attorney who is as committed to cleaning up the streets of Orange County as he is to cleaning up Wall Street.”

Orange County Sheriff Carl E. DuBois stated: “My office remains committed to partnering with the Hudson Valley Safe Streets Task Force, with an emphasis on the Sheriff’s Office Gang Intelligence Unit, which is one of the largest repositories of gang intelligence files in the region. Compiling and sharing this information with other law enforcement agencies, especially the FBI, is a critical component in past, present, and future enforcement efforts.”

The following allegations are based on the indictment that was unsealed today in White Plains federal court:

WILLIAMS, MACK, HERRING, and a number of their associates were members of a sub-group of the Bloods, known as “9 Trey.”

From January 2010 through February 2010, WILLIAMS, MACK, and HERRING coordinated the drug-trafficking activities of the ring, which was known as the “Middletown Organization.” They obtained heroin, crack cocaine, cocaine and marijuana from a variety of suppliers, including WILFREDO GONZALES, MICHAEL GILES, ANTHONY WEBB, KEVIN WILLIAMS, and RASUN KING. After obtaining the drugs, WILLIAMS, MACK, and HERRING supplied the drugs to 21 associates who were part of the Organization’s distribution network. Members of the distribution network also obtained narcotics from HENRY BRINSON, MAURICE COLON, and HECTOR BATISTA. Associates who were members of the distribution network include: JEREMY SCOTT ALLEN, CHRISTOPHER ANDERSON, VICTOR BURNS, LOREN DWYER, TAYSHAWN FIELDS, RAVEN FUENTES, MATTHEW GARCIA, VICTOR GONZALEZ, ZAKIYYAH HOULKER, BRUCE JACKSON, JEROME JACKSON, DUANE KIRBY, LUIS LIMA, JOSHUA MARTIN, DANIEL MISCHIYEV, KENNETH ORTIZ, JACQUELINE RICCI, JORGE SERRANO, JEFFREY SPANGENBURG, CLAUDIS WILSON, and MICHAEL WRIGHT.

Members of the Middletown Organization periodically moved the locations at which they stored and distributed drugs in order, among other reasons, to avoid detection by law enforcement. Members of the Middletown Organization engaged in a violent assault outside a diner in Middletown that resulted in the violent stabbing by MACK of RASUN KING, a defendant, multiple times. They also maintained firearms in order to protect the operation’s narcotics and drug proceeds. QUIANE WILLIAMS, who was previously convicted of a felony, is charged with possessing ammunition, specifically two boxes of Lawman 9 mm Luger ammunition. MARTIN, who was also previously convicted of a felony, is charged with possessing a firearm, specifically a .38 caliber Amadeo Rossi revolver.

* * *

Beginning this morning, federal and local law enforcement officers have been making arrests and conducting searches in connection with the Indictment and investigation, primarily in Middletown, New York. Twenty-six of the defendants have been arrested, and seven remain at large. In affecting today’s arrests, law enforcement authorities seized two firearms—a .22 caliber Junior Colt semi-automatic handgun and a .22 caliber H&R revolver, over 100 rounds of ammunition—including .22 caliber rounds, 9 mm rounds, shotgun rounds, and a magazine as well as $6,840 in cash.

The arrested defendants are expected to be arraigned this afternoon in White Plains federal court before a magistrate judge. All of the defendants are charged with conspiring to distribute one kilogram and more of heroin, 280 grams and more of crack cocaine, and cocaine and marijuana. If convicted, all of the defendants face a maximum sentence of life and mandatory minimum sentence of 10 years in prison. On the firearms charges, QUIANE WILLIAMS and JOSHUA MARTIN each face a maximum sentence of 10 years in prison.

Mr. Bharara praised the investigative work of the Hudson Valley Safe Streets Task Force—which consists of members from the FBI, DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives; Immigration Customs Enforcement, United States Marshals Service; New York State Department of Corrections and Community Supervision; Bureau of Prisons, New York State Police Troop F; New York State Police CNET; City of Newburgh Police Department; City of Middletown Police Department; City of Poughkeepsie Police Department; Orange County Sheriff’s Office; Dutchess County Sheriff’s Office; Beacon Police Department; Village of Monticello Police Department; Port Jervis Police Department; Town of Wallkill Police Department; and Orange, Dutchess, and Sullivan County District Attorney’s Offices. Mr. Bharara added that the investigation is continuing.

This case is being handled by the White Plains Division of the U.S. Attorney’s Office. Assistant U.S. Attorneys Marcia Cohen and Rebecca Mermelstein are in charge of the prosecution.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“By Chad Bray

A suspected Russian arms dealer convicted last year of conspiring to sell surface-to-air missiles and other weapons after getting caught in a sting operation in Thailand wants to be held under less restrictive conditions while he’s awaiting sentencing.

Viktor Bout, a former Soviet air force officer who inspired the character played by Nicolas Cage in the movie “Lord of War,” no longer wants to be held in the special housing unit, or SHU, at the Metropolitan Correctional Center in lower Manhattan. He has been held there since he was extradited from Thailand in 2010 after two years of legal wrangling.

His lawyer, Albert Dayan, said in a letter to the court that Mr. Bout, 45 years old, is essentially held in solitary confinement with no human contact, no fresh air and no access to the prison commissary to supplement his diet. Mr. Dayan said the prison diet is inadequate for Mr. Bout’s needs as a vegetarian.

Mr. Bout was arrested by Thai authorities and U.S. narcotics agents in a sting in March 2008. A Thai court initially freed Mr. Bout in August 2009, but the U.S. appealed the ruling and he remained in custody. After diplomatic pressure, an appeals court in the Southeast Asian nation ruled to extradite the suspect to face his charges in the U.S., overturning an earlier ruling.

Mr. Dayan asked that Mr. Bout be moved to the prison’s general population, noting that Monzer al-Kassar, an alleged Syrian arms trafficker, was allowed to be in general population while at the MCC.

Kassar, 66, was sentenced to 30 years in prison in 2009 after he was convicted of conspiring to sell weapons and murder U.S. citizens following a similar sting operation by the U.S. Drug Enforcement Administration.

“[Bout] doesn’t know when the sun rise or sets,” Mr. Dayan said in the letter, which was read during a court hearing on Wednesday.

U.S. District Judge Shira Scheindlin seemed to agree with Mr. Dayan’s arguments.

“It seems harsh. It seems brutal,” she said. “It seems unnecessary. It seems like something should be done about it.”

Still, the judge upheld the November verdict finding him guilty of four conspiracy charges that he sold weapons to South American terrorists with the understanding that they would be used to shoot down U.S. helicopter pilots, the Associated Press reported. The judge said the reasons submitted by the defense were the same ones offered before the trial and the verdict, AP said.

The judge set a hearing for Friday to discuss the issue of his confinement further. Prosecutors on Wednesday said they need time to consult with the U.S. Bureau of Prisons before responding.

Mr. Dayan said that he wants to resolve the issue before Mr. Bout is sentenced, otherwise the special designation may follow him to the prison where he ultimately serves his time.

Mr. Bout faces up to life in prison on the charges. Sentencing is set for March 12.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Appeal

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

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“Associated Press

NEW YORK — A New York City teacher’s aide already accused of possessing child pornography was jailed Tuesday after prosecutors brought new allegations that he videotaped himself spanking one naked child and fondling another in a public elementary school classroom.

FBI agents arrested Taleek Brooks, 40, at his Brooklyn apartment on Monday night after an investigation uncovered the videos on a computer seized last month from the home, authorities said.

A criminal complaint mentioned only two alleged victims — both believed by the federal authorities to be current or former students at the Weeksville School in Brooklyn, where Brooks had worked since 1995. The FBI held out the possibility there could be more student victims and was encouraging parents to come forward if they have information. Agents were expected to be at the school on Wednesday to pursue leads.

“As chancellor, and as a father, I am horrified and disgusted at the charges we learned of today from the FBI,” Schools Chancellor Dennis Walcott said in a statement after the meeting with the staff and PTA president. “Our paramount concern is for the safety of our students, and we are cooperating fully with the federal authorities as they continue their investigation.”

The city Department of Education first hired Brooks for a summer job in 1991, when he was fingerprinted and passed a background check. He was given a full-time job as a teacher’s aide with the school system in 1993.

Brooks also had worked with children at an after-school program affiliated with Weeksville. Program director Christa McCarthy-Miller said Tuesday that the defendant had passed routine background checks, and that she wasn’t aware of any previous complaints against him.

As a “group leader” for about 14 children, Brooks’job was to encourage them to make “positive life choices,” McCarthy-Miller said.

“We’re obviously very saddened by this,” she said.

Though different in the nature of the accusations and the number of alleged victims, the case called to mind the unfolding scandal at a Los Angeles elementary school in which a teacher is suspected of blindfolding and molesting children in his classroom.

According to a criminal complaint filed Tuesday, an examination of a home computer and two external hard drives seized from Brooks uncovered a stash of self-produced child porn.

The videos included two taken in a school classroom, one of Brooks touching a child’s genitals and another of him spanking a naked child, the complaint says. Investigators believe they were shot sometime between January 2008 and January 2011.

A letter sent to parents alerted to them to the accusations against Brooks, saying that “these incidents may have occurred on school grounds.” It advised families to call an FBI tip line if they had information about the case.

A previous complaint had accused Brooks of sending pornographic photos and videos of children to an undercover agent he met online. The complaint says one of the images was of a man having sex with a boy who appeared to be about 10.

Following the exchange, FBI agents searched Brooks’home on Jan. 13. The complaint alleges that during the search, Brooks “admitted that he had been downloading and sharing child pornography for approximately seven years.” He also “indicated that he had collected and saved over 1,000 digital files on his computer containing child pornography,” the complaint adds.

If convicted of producing child porn, Brooks faces a minimum 15 years in prison.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“Defendant Charged with Investor Fraud Who Fled to Middle East is Arrested

AHMED ALABADI, a 44-year-old citizen of Iraq and former resident of Dearborn, was arrested at Detroit Metropolitan Wayne County Airport on the evening of Friday February 3, 2012, announced United States Attorney Barbara McQuade. Alabadi was arrested on an indictment for bank fraud, attempted bank fraud, and money laundering. McQuade was joined in the announcement by Special Agent Andrew G. Arena, Federal Bureau of Investigation and Brian Moskowitz, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Homeland Security Investigations in Detroit.

The indictment alleges that Alabadi solicited investments from individuals, many of Iraqi descent, by promising that the funds would be used in various rebuilding projects in Iraq. Alabadi promised large returns for the investments. In reality, however, Alabadi did not use the investors’ money for such projects. Instead, he operated a Ponzi scheme by using money from subsequent investors to pay earlier investors. Alabadi fled to the Middle East as investors began discovering the fraud.

An indictment is only a charge and is not evidence of guilt. It will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant United States Attorney Louis P. Gabel.

If any individual believes that he or she was a victim of Alabadi’s fraud they should contact Special Agent Philip Reed of the FBI at (313) 965-2323.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“CHICAGO—A Chicago man, who personally provided hundreds of dollars to an alleged terrorist leader with whom he had met in his native Pakistan, pleaded guilty today to attempting to provide additional funds to the same individual after learning he was working with al Qaeda. The defendant, Raja Lahrasib Khan, a Chicago taxi driver and native of Pakistan who became a naturalized U.S. citizen in 1988, pleaded guilty to one count of attempting to provide material support to a foreign terrorist organization, resolving charges that have been pending since he was arrested in March 2010.

Khan, 58, of Chicago’s north side, never posed any imminent domestic danger, law enforcement officials said at the time of his arrest. He remains in federal custody while awaiting sentencing, which U.S. District Judge James Zagel scheduled for 2 p.m. on May 30, 2011.

Khan faces a maximum sentence of 15 years in prison. His plea agreement calls for an agreed sentence of between five and eight years in prison, and it requires Khan to cooperate with the government in any matter in which he is called upon to assist through the termination of his sentence and any period of supervised release.

The guilty plea was announced by Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent in Charge of the Chicago Office of the FBI.

Khan, who was born and resided in the Azad Kashmir region of Pakistan before immigrating to the United States in the late 1970s, admitted that he met with Ilyas Kashmiri, a leader of the Kashmir independence movement, in Pakistan in the early to mid-2000s and again in 2008. At the time of the second meeting, Khan knew or had reason to believe that Kashmiri was working with al Qaeda, in addition to leading attacks against the Indian government in the Kashmir region. During their 2008 meeting, Kashmiri told Khan that Osama bin Laden was alive, healthy, and giving orders, and Khan gave Kashmiri approximately 20,000 Pakistani rupees (approximately $200 to $250), which he intended Kashmiri to use to support attacks against India.

On Nov. 23, 2009, Khan sent approximately 77,917 rupees (approximately $930) from Chicago to an individual in Pakistan, via Western Union, and then directed the individual by phone to give Kashmiri approximately 25,000 rupees (approximately $300). Although Khan intended the funds to be used by Kashmiri to support attacks against India, he was also aware that Kashmiri was working with al Qaeda.

In February and March 2010, Khan participated in several meetings with an undercover law enforcement agent who posed as someone interested in sending money to Kashmiri to purchase weapons and ammunition, but only if Kashmiri was working with al Qaeda, as well as sending individuals into Pakistan to receive military-style training so they could conduct attacks against U.S. forces and interests. On March 17, 2010, the undercover agent provided Khan with $1,000, which Khan agreed to provide to Kashmiri. Khan then gave the funds to his son, who was traveling from the United States to the United Kingdom (U.K.), intending to later retrieve the money from his son in the U.K. and subsequently provide it to Kashmiri in Pakistan.

On March 23, 2010, Khan’s son arrived at an airport in the U.K. and a search by U.K. law enforcement officials yielded seven of the ten $100 bills that the undercover agent had provided to Khan. After learning of his son’s detention, Khan attempted to end his involvement in the scheme to provide funds to Kashmiri by requesting an urgent meeting with another individual who was also present at Khan’s earlier meetings with the undercover agent. During their meeting, Khan demanded to return the undercover agent’s funds by providing $800 to this other individual.

The investigation was conducted by the Chicago FBI Joint Terrorism Task Force, with particular assistance from the Chicago Police Department, the Illinois State Police and the Department of Homeland Security’s U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement.

The government is being represented by Assistant U.S. Attorneys Christopher Veatch and Heather McShain and trial attorney Joseph Kaster, of the Counterterrorism Section of the Justice Department’s National Security Division.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“Raphael Satter, Associated Press

Trading jokes and swapping leads, investigators from the FBI and Scotland Yard spent the conference call strategizing about how to bring down the hacking collective known as Anonymous, responsible for a string of embarrassing attacks across the Internet.

Unfortunately for the cyber sleuths, the hackers were in on the call too — and now so is the rest of the world.

Anonymous published the roughly 15-minute-long recording of the call on the Internet on Friday, gloating in a Twitter message that “the FBI might be curious how we’re able to continuously read their internal comms for some time now.’’

The humiliating coup exposed a vulnerability that might have had more serious consequences had someone else been listening in on the line.

“A law enforcement agency using unencrypted, unsecure communications is a major fumble,’’ said Marcus Carey, who spent years securing communications for the U.S. National Security Agency before joining security-risk assessment firm Rapid7.

“What if this event was talking about some terrorist plot to blow up something and ‘they’ were listening in? It could’ve been much worse if it was related to an al-Qaida plot or something … So this is a lesson learned.’’

The leak was one of a slew of Anonymous hacks that hit websites across the United States Friday, including in Boston, where the police site was defaced, and in Salt Lake City, where officials said that personal information of confidential informants and tipsters had been compromised.

Anonymous also claimed credit for defacing the Greek Justice Ministry’s website and stealing a mountain of data from the Virginia-based law firm that defended a U.S. Marine recently convicted for his role in the bloody 2005 raid in Iraq that became known as the Haditha massacre.

The hackers’ successful attempt to spy on the very people charged with tracking them down remained the most dramatic coup of the day, with sensitive police conversations broadcast across the world.

The FBI said the communication “was intended for law enforcement officers only and was illegally obtained,’’ but added that no FBI systems were breached. It said that “a criminal investigation is under way to identify and hold accountable those responsible.’’

A law enforcement official, speaking on condition of anonymity because the matter is under investigation, told The Associated Press that authorities were looking at the possibility the message was intercepted from the private email account of one of the dozens of invited participants — who hailed from the U.K., Ireland, Germany, France, the Netherlands and Sweden.

Anonymous published just such an email Friday, complete with the date, time and password needed to access the call.

Graham Cluley, an expert with data security company Sophos, said that anyone with that information could have “rung in and silently listened to the call just like Anonymous did.’’

In Paris, a French police official who was briefed on the interception said it could prompt international law enforcement bodies to be more circumspect about sharing information in conference calls. He spoke on condition of anonymity because he wasn’t authorized to speak on the record.

Scotland Yard said there was no immediate evidence their operations were compromised.

Amid jokes about a teenage hacking suspect (who one officer describes as “a bit of an idiot’’) and lighthearted banter about McDonald’s, the investigators on the call discussed whether to delay the arrest of two hacking suspects to give the FBI more time to pursue its side of the investigation.

Updates were given on the status of inquiries stretching from Los Angeles and Baltimore to England and Ireland, with one member of Scotland Yard’s central e-crime unit telling the FBI that British police had identified a 15-year-old with possible connections to a recent breach at U.S. videogame company Valve Corp.

“Yeah that’s fantastic,’’ an FBI official said in response. “We actually do have a pending investigation looking into that compromise.’’

An email to the FBI official leading the call was not immediately returned Friday, while the e-crime investigator referred questions to Scotland Yard’s press office. The press office confirmed it had someone on the call but said it would have no further comment.

Most sensitive appears to be discussion of what legal strategy to pursue in the cases of Ryan Cleary and Jake Davis, two British suspects linked to Anonymous. The U.K. police official on the call said prosecutors were secretly going to court to delay procedures in order to give the FBI more time pursue a related case.

When the FBI official thanked his U.K. counterpart for the favor, the Briton said cheerily: “We’re here to help!’’

Karen Todner, a lawyer for Cleary, said the recording could be “incredibly sensitive’’ and warned that such data breaches had the potential to derail the police investigation.

“If they haven’t secured their email it could potentially prejudice the investigation,’’ she told the AP.

Anonymous, an amorphous collection of Internet enthusiasts, pranksters and activists, has increasingly focused its attention on law enforcement agencies in general and the FBI in particular.

The hackers’ targets have included the Church of Scientology, the music industry and financial companies such as Visa and MasterCard. It has recently expanded to include government, police and military targets.

Dozens of suspected members and supporters have been arrested across the world.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“By Terry Frieden, CNN Justice Producer

(CNN) — Justice Department prosecutors said Friday that they are closing a criminal investigation of champion cyclist Lance Armstrong without filing charges that he used performance-enhancing drugs.

A statement from the U.S. attorney in Los Angeles said the seven-time Tour de France winner will not be charged, but did not explain the reasons for the decision.

Armstrong has consistently denied doping. He was accused of using performance-enhancing drugs by other riders, but never failed a drug test.

Late Friday, he released a statement in which he said he was “gratified” to learn that prosecutors are closing their investigation.

“It is the right decision and I commend them for reaching it. I look forward to continuing my life as a father, a competitor and an advocate in the fight against cancer without this distraction,” Armstrong said.

Prosecutors called witnesses to a federal grand jury in Los Angeles as they investigated the case, but they apparently determined that they lacked evidence to bring a charge.

In May 2011, Armstrong once again denied claims from a former teammate that he used drugs during his cycling career.

Armstrong has been dogged by allegations of drugs abuse in recent years with compatriot Floyd Landis — who was found guilty of doping in the 2006 Tour de France resulting in him being stripped of the title — making a series of claims last year.

Armstrong came out fighting once again in May, in the face of fresh allegations made on the CBS News “60 Minutes” show by another American Tyler Hamilton.

On his Twitter page, Armstrong said at the time: “I have had a 20-year career, 500 drug controls worldwide, in and out of competition, and never a failed test. I rest my case.”

In the CBS interview, Hamilton — who retired in 2009 after twice testing positive himself — says he first saw Armstrong use blood boosting substance EPO in 1999, the year of his first Tour de France victory.

“I saw it in his refrigerator,” Hamilton told the American news program. “I saw him inject it more than one time like we all did, like I did many, many times.”

Hamilton added: “Armstrong took what we all took — the majority of the peloton took. There was EPO, testosterone, blood transfusions.”

Meanwhile, Armstrong’s lawyer Mark Fabiani blasted the “60 Minutes” report, releasing a statement saying: “Hamilton is actively seeking to make money by writing a book.

“He has completely changed the story he has always told before so that he could get himself on “60 Minutes” and increase his chances with publishers.”

Fabiani continued: “Greed and a hunger for publicity cannot change the facts: Lance Armstrong is the most tested athlete in the history of sports: He has passed nearly 500 tests over 20 years of competition.”"

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“By CLIFFORD KRAUSS

HOUSTON — As R. Allen Stanford’s chief financial officer, James A. Davis knew a lot about his boss’s offshore banking operations. As he took the witness stand on Thursday against his former boss, Mr. Davis said he repeatedly warned him over the years that his Ponzi scheme would collapse, and to make his point graphically he would cup his hands as if they were in handcuffs while making his plea.

“I told him what we are doing would have consequences, and not good consequences,” he recalled as Mr. Stanford took notes and shook his head in denial. “Mr. Stanford would just laugh, and he would say, ‘I will just blame it all on you.’ ”

And that is just about what is happening as the Texas financier once thought to be worth over $2 billion stands trial on multiple charges of fraud, money laundering and conspiracy, with Mr. Davis already indicted and serving as the lead prosecution witness.

It was just the beginning of what court officers and lawyers involved in the case believe will be four or five days of an emotional locking of horns between the two men most responsible for running an offshore bank on the island of Antigua that prosecutors say fleeced nearly 30,000 investors of $7 billion in investments.

In his first day on the stand, Mr. Davis described how Mr. Stanford had fraudulently made up insurance coverage to lure investors and had taken a blood oath with senior Antiguan bank regulators who would overlook his misdeeds and profit from them. He also testified how Mr. Stanford had lavished loans and campaign contributions on Antiguan political leaders, and how the cash reserves of the Stanford offshore bank disappeared over the years in money-losing businesses and loans to Mr. Stanford until nothing was left by 2009.

Throughout his testimony, Mr. Davis described a relationship with Mr. Stanford in which he was emotionally bullied to lie and cheat investors, and to keep his secrets from everyone, including his wife.

“Yes, I did lie,” Mr. Davis said, fighting back tears. “I wanted to please Mr. Stanford. I was proud. I was a coward. Later on I was greedy, regrettably.”

Perhaps no man except Mr. Stanford himself knew more about the operations of Mr. Stanford’s empire — which included real estate, restaurants, two airlines and even a cricket team and stadium — than Mr. Davis. Soon after the enterprises collapsed three years ago, Mr. Davis was indicted and pleaded guilty to several counts of fraud and conspiracy to obstruct a Securities and Exchange Commission investigation. He faces up to 30 years in jail.

The lawyers for Mr. Stanford, in their opening argument to the jury and in cross-examinations of witnesses over the last two weeks, have tried to build a case that Mr. Davis, not Mr. Stanford, would have been at the center of any shady financial dealings, which centered on sales of supposedly safe, high-interest certificates of deposit. But the money, according to the prosecution, went to risky investments, loans to Mr. Stanford and bribes from a Swiss bank to Antiguan officials.

Mr. Davis described Mr. Stanford as a cagey, manipulative dictator who was quick to compliment but even quicker to lash out in anger. Mr. Davis described how he rearranged the offices of some employees when Mr. Stanford was away from the office for several weeks and did not return messages.

When Mr. Stanford returned from his travels, he entered Mr. Davis’s office and screamed, “ ‘I thought I was C.E.O. around here’ and then slammed the door,” Mr. Davis testified. “He didn’t speak to me for three months.”

Another time, Mr. Davis recalled, Mr. Stanford asked him to take a drive in his new Mercedes-Benz on the Katy Freeway outside Houston. Mr. Stanford floored the accelerator until the car reached 170 miles an hour. “He scared me to death,” Mr. Davis said. “He instilled intimidation and fear.”

Mr. Stanford’s lawyers have argued that while Mr. Stanford was the chief strategist and marketing guru, Mr. Davis invested the money and handled the paperwork. He not only worked apart for years from Mr. Stanford, from an office in Memphis, but he also hired many investment executives, including his own trusted family members.

In his introductory arguments, Robert A. Scardino, one of Mr. Stanford’s lawyers, called Mr. Davis a “liar and a crook and yet these prosecutors are going to ask you to believe him.”

Mr. Davis differed with that characterization. “Everyone reported to Mr. Stanford,” he testified.

“In a charismatic way, he managed by flattery, fear, intimidation. He said it was better to be feared as a manager than be loved,” Mr. Davis testified.

Mr. Stanford has pleaded not guilty to all 14 counts of fraud, money laundering and conspiracy. His lawyers say he will testify, but because Mr. Stanford has said that his memory was shattered by the blows he sustained two years ago in a prison fight, it is unclear what he will say about Mr. Davis.

Mr. Davis began working for Mr. Stanford in 1988 and, he testified, from the start there were secrets. Mr. Davis said he was told not to speak to Mr. Stanford’s father, James, who was a junior partner in the bank, without first talking to him. Mr. Stanford also explained that the bank, the Guardian International Bank, had been founded offshore rather than in the United States, saying, according to Mr. Davis, that “he did not feel he could go through that rigorous regulatory vetting.”

For years, Mr. Davis testified, he was suspicious of fraud, but he was not certain until 1991, when Mr. Stanford ordered him to fly to London merely to fax to a prospective investor a fake confirmation from a shell insurance company Mr. Stanford had concocted. When Mr. Davis went to the office, it was nothing but a desk, a chair and a fax machine in an office cubicle. Mr. Davis flew back to Houston as soon as he sent the fax, he said.

When Mr. Davis questioned Mr. Stanford about the scheme, Mr. Davis said, his boss “said this was really a marketing device” and that paying “premiums would be a waste of money.”

When asked repeatedly by the prosecution why he had continued to work for Mr. Stanford after the episode, Mr. Davis replied, “I was a coward. I was embarrassed and he signed my paycheck.”

Mr. Davis said he had been paid handsomely and estimated that he made $14 million over the years in salary, with additional bonuses and loans of $850,000 in 2008 and 2009.

Tieless, and dressed in a gray suit and white shirt, Mr. Stanford took notes through much of Mr. Davis’s testimony. He frequently shook his head in disbelief and even laughed softly.”

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Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.