“1 bank robbery suspect killed, 2 others arrested, FBI says”

May 11, 2013

Chicago Tribune on May 11, 2013 released the following:

“FBI agents shot one bank robbery suspect dead and arrested two others at a bank in the small town of Richmond on Friday, investigators said.

Federal investigators had been tailing the three men on I-90 and to the bank because they were suspected of previous bank robberies and were thought to be planning another, a source close to the investigation said.

FBI spokeswoman Joan Hyde said the men “had been the subject of an investigation,” but declined to elaborate.

The shooting occurred at about 11:30 a.m. in the parking lot of Associated Bank at 10910 N. Main St. in Richmond, on Route 12 just west of the Chain O’ Lakes near Wisconsin. Hyde did not know what precipitated the shooting, but said the suspects never entered the bank.

Photos from the scene showed the car had driven off the pavement of the parking lot and appeared to hit a pole and slightly smashed its front end. No bystanders or investigators were injured, Hyde said.

The scene remained blocked off Friday evening, and Route 12 was closed in the area. An FBI evidence response team was on the scene and investigators questioned witnesses.

Though the investigation was out of the FBI’s Chicago office, the two suspects were taken to Winnebago County Jail in Rockford, where the agency has a satellite office, Hyde said

Associated Bank released the following statement: “Our customers and colleagues at our Richmond branch are safe and secure. We are fully cooperating with local law enforcement to help resolve the situation.”

A woman who works in the business next door said workers were terrified by the shooting.

Geri Rubel, an accountant at a firm in an adjoining part of the bank building, said she heard two bursts of rapid, automatic gunfire outside, one short and one long. She and her co-workers looked out the front window of her office and saw men with guns running through the parking lot toward the bank.

“That scared the (expletive) out of us,” she said. “We locked the door, went to a corner of the room and cried because we didn’t know what was going on. I thought of my kids, and called the high school (to alert them).”

They peeked out the window occasionally, until she said a police officer came to tell them that investigators had been staking out the bank, believing a robbery was planned. The FBI would not comment on whether a robbery had been thwarted.

Rubel said the dead man was in the parking lot, and another man was taken away in handcuffs in a black SUV. The men she saw with the guns turned out to be law enforcement agents.

“This kind of thing doesn’t happen ever here,” Rubel said. “I hear about it in the city (of Chicago). This is a small town. It’s not something you expect to see here.”

The police response was so quick that it seemed obvious they expected the robbery, she said. “To have all of them within 30 seconds, I’m thinking they must have known something,” Rubel said.

McHenry County Undersheriff Andrew Zinke said his office was called to help the FBI and Richmond and Spring Grove police. “They had been involved in an incident out in front of the bank where a shooting had taken place,” he said.

“There is no threat or danger to the Richmond community at this point,” Zinke said.”

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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 Criminal Defense 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 Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

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


ICE Leads A Federal Investigation and Arrests 9 in an Alleged Drug Trafficking Ring

May 2, 2013

The U.S. Immigration and Customs Enforcement (ICE) on May 1, 2013 released the following:

“9 defendants indicted in far-reaching cocaine and meth distribution scheme

LOS ANGELES — A federal investigation into a drug-trafficking organization led by two brothers who oversaw the distribution of cocaine to Italy and across the United States as well as methamphetamine being trafficked across the U.S. – has led to the indictment of nine defendants, three of whom were arrested Wednesday.

Operation “Family Guy” targeted the Urena family drug-trafficking organization through the use of undercover operatives and wiretaps that led to the interception of telephone calls, text messages, and communications sent through BlackBerry Messenger. The probe was conducted by the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Task Force, including the Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and IRS – Criminal Investigation. The Los Angeles Sheriff’s Department and Whittier Police Department also assisted with the case.

The investigation, which culminated with the issuance of a seven-count grand jury indictment April 24, resulted in the seizure of approximately 40 kilograms of cocaine being smuggled into Italy from the Dominican Republic and Mexico. That cocaine was being transported by female drug couriers allegedly recruited by the two Urena brothers, with assistance from their uncle Francisco Javier Vargas-Oseguera and others. The investigation also uncovered a conspiracy to distribute significant quantities of methamphetamine and cocaine throughout the United States using vehicles with hidden compartments.

The indictment also alleges members of the narcotics-trafficking operation laundered drug proceeds from the Dominican Republic through the use of Western Union wire transfers sent to Fontana and Rancho Cucamonga.

Those named in the indictment unsealed Wednesday are:

  • Milton Urena, 29, of the Dominican Republic, who is currently being sought by authorities;
  • Rafael Urena, 27, of Rancho Cucamonga, Milton Urena’s brother, who was arrested Wednesday;
  • Daniel Alejandro Agredano Vazquez, 22, of the Dominican Republic, who allegedly oversaw the distribution of cocaine from the Dominican Republic to Italy and conspired to launder drug proceeds. He is currently being sought by authorities;
  • Francisco Javier Vargas-Oseguera, 51, an uncle of the Urena brothers, previously of Seattle and recently of Fontana. He is currently in federal custody in Seattle after being charged in federal court there for allegedly possessing eight pounds of methamphetamine in a case unrelated to Operation Family Guy;
  • Leonel Urena-Partida, 49, of Guadalajara, Mexico, another uncle of the Urena brothers, who allegedly conspired to transport cocaine to Italy. He is being sought by authorities;
  • Carmen Garcia, 35, of San Bernardino, allegedly supplied methamphetamine and assisted with the recruitment of drug couriers, who was arrested Wednesday;
  • Eliseo Carrillo Duarte, 45, of Montebello, who is currently in federal custody in Indianapolis after being arrested there in March on unrelated drug-trafficking charges stemming from the seizure of approximately 10 pounds of methamphetamine;
  • Jenna Michelle Martin (also known as Jenna Michelle Smith), 25, of Upland, an alleged drug courier who was arrested Wednesday; and
  • Beth Rene Ford (also known as Beth Rene Florance), 26, formerly of Ontario and now living in the Denver area, a second alleged drug courier, who is expected to self-surrender soon to authorities.

The defendants arrested Wednesday morning are expected to be arraigned Wednesday afternoon in U.S. District Court in downtown Los Angeles.

The indictment specifically charges eight defendants (not Duarte) with conspiracy to distribute cocaine to Italy, which carries a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment. Six of the defendants (not Agredano Vasquez, Martin or Ford) are charged in another conspiracy involving the domestic distribution of cocaine and methamphetamine, a charge that also carries a mandatory minimum sentence of 10 years in federal prison.

Various defendants are also named in a charge that alleges the distribution of approximately one pound of methamphetamine, three counts of use of a communication facility in committing a felony drug offense, and conspiracy to launder money.”

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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 Criminal Defense 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 Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

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


Feds charge Cherryville cops with allegedly aiding ‘crooks’

October 19, 2012
FBI
“Ray Gora / Lincoln Times-News
FBI agents seize computers and other materials from the Cherryville Police Department on Wednesday.”

Lincoln Times-News on October 19, 2012 released the following:

“JENNA-LEY HARRISON

Staff Writer

An undercover federal investigation is shaking up the Cherryville Police Department this week, amid claims that some police officers were operating on the wrong side of the law.

Four law enforcement officers and two other men who are accused of conspiring earlier this year to safeguard stolen property and proceeds from their sale, are set to make their second appearance in a Charlotte courtroom today, following an FBI raid on Wednesday.

The officers have also been accused of securing monetary bribes for their legal authority in the operation, the U.S. Attorney’s Office in the state’s Western District said.

According to federal authorities, the men made a serious blunder – their partners in the conspiracy, whom they believed to be criminals, were actually undercover FBI agents.

As a result of the arrests, the city of Cherryville has also suspended its police chief and captain.

Federal officials are not saying who else might be a target of the ongoing investigation.

Two federal indictments were unsealed earlier Wednesday in the case.

One indictment from Tuesday charged Cherryville Police officer Frankie Dellinger, 40, Gaston County Sheriff’s reserve officer Wesley Clayton Golden, 39, and Cherryville resident Mark Ray Hoyle, 39.

Each man faces one count each of conspiracy to extort under color of official right, money laundering conspiracy, conspiracy to transport and/or receive stolen property, four counts each of transportation of stolen property, money laundering and aiding and abetting and three counts of possession of a firearm in relation to a crime of violence, according to a press release.

Federal authorities also charged Dellinger with with an extra count of extortion.

The three men are accused of protecting the men they believed were co-conspirators by allowing them to safely transport tractor trailers filled with stolen property through the area, the U.S. Attorney’s Office said. Hoyle, Dellinger and Golden also protected the transportation of more than $400,000, proceeds from the merchandises’ sale, the release said.

Goods included televisions and generators worth nearly $160,000.

A second indictment from Aug. 21 charged Cherryville patrol officers Casey Justin Crawford, 32, and David Paul Mauney III, 23, along with Cherryville resident John Ashley Hendricks, 47, with one count each of conspiracy to transport and/or receive stolen property and conspiracy to extort under color of official right.

Crawford additionally faces one count of program fraud bribery.

Since May, Crawford, Mauney and Hendricks similarly worked with undercover agents they thought were criminals in protecting the transport of more than $300,000 in stolen merchandise along with more than $300,000 in proceeds from the items’ sale, the release said.

Hoyle’s role in the conspiracy included “representing himself as a law enforcement officer,” the U.S. Attorney’s Office said. On the other hand, Hendricks, Crawford and Mauney used counter-surveillance to ensure other officers wouldn’t discover the illegal operation, the release said.

FBI officials launched the investigation following allegations last year that Dellinger had been involved in illegal activity, an indictment said.

The phony criminals requested assistance from law enforcement officers who would be willing to provide protection for stolen items in exchange for cash bribes.

Dellinger accepted the offer and soon “recruited” Hoyle and Golden, according to the indictment.

The three men received $17,000 in the scheme in exchange for keeping the stolen goods away from thieves and the detection of other law enforcement agencies and even agreed to use violence, if necessary, to carry out such duties, the U.S. Attorney’s Office said.

All six men appeared in a Charlotte courtroom today on the charges.

They each face up to 20 years in prison and hundreds of thousands of dollars in fines, if convicted, the release said.

Interim City Manager and Cherryville Fire Chief Jeff Cash released a separate statement late Wednesday announcing that Police Chief Woody Burgess and Capt. Mike Allred, a Lincoln County resident, have been suspended with pay pending the outcome of the investigation, though neither has been charged to this point.

“As interim city manager, I will be naming myself interim police chief with the day-to-day operational activities to be supervised by Sgt. Cam Jenks,” Cash wrote.

Cash said safety of the citizens would not be compromised by the investigation into the police department and other law enforcement agencies were assisting as needed.

Individuals with emergencies can call 911 or police dispatch at (704) 435-1717.

The Gaston County District Attorney’s Office was quoted by other area news media saying they may drop pending criminal cases relying on any of charged officers’ testimonies, though the Times-News was unable to independently confirm this. Just how many cases that would include is also unclear.

Five of the six suspects remain without bond behind Mecklenburg County bars. The location of John Hendricks is currently unknown. He was not listed as a current Mecklenburg County inmate and does not even have a record in the county, an employee with CharMeck Citizen Services told the Times-News Thursday afternoon.

The State Bureau of Investigation has also been looking into the city of Cherryville since last year for misuse of town funds.”

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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 Criminal Defense 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 Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

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


Jesse Jackson Jr. camp silent on federal investigation

October 16, 2012

Chicago Sun-Times on October 15, 2012 released the following:

“BY NATASHA KORECKI

Federal subpoenas have already been sent out. Witnesses with ties to U.S. Rep. Jesse Jackson Jr. have been interviewed. Recently, Jackson’s attorneys met with federal prosecutors in an attempt to dissuade them from taking further steps against the congressman.

By all accounts, the criminal investigation into Jackson’s finances is in an advanced stage of development.

Since the story was first reported last week by the Chicago Sun-Times, however, neither Jackson, his attorneys, his publicly elected wife, his staff or his famous father have publicly commented.

That is with the exception of a Jackson congressional spokesman, Frank Watkins, who told the Sun-Times Friday he was not in regular contact with the congressman and did not even have a phone number for him.

On Monday, the online blog Gawker reported that Jackson was spotted at a DuPont Circle bar in Washington, D.C., last week, drinking with two women.

Jackson’s family had previously said that Jackson was at his Washington, D.C., home but remained under a doctor’s care. He has been on leave from Congress since June. Sources with knowledge of the investigation say that the federal probe into Jackson involves whether he improperly used his campaign fund. The sources said that Jackson’s attorneys raised his recent illness in their discussions with authorities.

“I really can’t communicate with you right now, I’m on a plane,” the Rev. Jesse Jackson said before hanging up on Monday. He later could not be reached.

Jackson Jr. remains on the Nov. 6 ballot. His adversaries have called on Jackson to campaign or drop out of the race. He faces Republican Brian Woodworth and independent Marcus Lewis. Anthony W. Williams intends to run as a write-in candidate.

Jackson has been on leave since June 10 and his aides eventually said the congressman suffered from bipolar depression.”

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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

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense 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 Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

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


Vallejo-Based Rappers Arrested as Part of Major Investigation of Alleged Drug Trafficking Throughout the United States

April 25, 2012

The Federal Bureau of Investigation (FBI) on April 24, 2012 released the following:

“SACRAMENTO, CA—A number of arrests have occurred in a major federal investigation into drug trafficking throughout the country, United States Attorney Benjamin B. Wagner announced.

According to court documents, agents arrested a total of 25 individuals in Vallejo, Stockton, Fairfield, Oakland, Los Angeles, New York, and Oklahoma City. Some of those arrested are Vallejo-based rappers and associates of an entertainment label known as Thizz Entertainment.

Vallejo Police Chief Robert Nichelini stated, “This is another example of partnership that exists between the Drug Enforcement Administration and the Vallejo Police Department to improve the safety of our community and reduce the level of violence associated with drug dealing. We appreciate the efforts of the U.S. Attorney for the Eastern District of California in coordinating the investigation and prosecuting the persons involved in such a complex and dangerous criminal enterprise.”

During the investigation, agents seized approximately 45,000 MDMA pills, approximately four pounds of crack cocaine, a half-pound of heroin, and $200,000 in suspected drug proceeds. Agents also forfeited 230 acres of property valued at approximately $1 million as part of the investigation. As part of last Thursday’s takedown, agents executed three federal search warrants and seized approximately five pounds of marijuana, a loaded firearm, a 2010 Audi A6 with an estimated value of $60,000, and an Audi S5 with an estimated value of $50,000. Agents seized $67,238 in Vallejo and $6,831 in Sacramento for a total of $74,069 during the service of the federal search warrants.

According to the criminal complaints, the DEA-led investigation uncovered a network of drug distributors working in the Crest neighborhood of Vallejo, along with individuals transporting large quantities of drugs outside of California to realize a larger profit. A number of the subjects of the investigation performed as rappers under the entertainment label known as Thizz Entertainment. The origins of Thizz Entertainment can be traced back to the notorious Vallejo-based robbery crews known as the Romper Room Gang. The primary activities of the Romper Room Gang included armed bank robberies, drug trafficking, and murder. The Romper Room Gang was active throughout the late 1980s and 1990s. However, as a result of Vallejo police investigations with the assistance from federal law enforcement, many Romper Room Gang members were convicted of federal crimes and incarcerated for several years in the state and federal prison systems.

Some of the individuals charged in the criminal complaint are alleged to be former members of the Romper Room Gang. According to the complaint, Thizz Entertainment started in 1999 as a record label promoting and producing rap artists from the San Francisco Bay Area, primarily from the Crest neighborhood of their hometown of Vallejo. The name Thizz Entertainment originates from the term “thizz,” which is slang for the drug MDMA (also known as ecstasy). In many songs by artists on the Thizz Entertainment label, the lyrics glorify and promote the use and distribution of MDMA pills.

The complaint alleges that the targets of this investigation engaged in large-scale drug trafficking while also releasing rap albums under the Thizz Entertainment label. During the conspiracy, agents uncovered trafficking of MDMA, cocaine, cocaine base, heroin, Oxycodone, and marijuana, in violation of federal law. The complaint details drug shipments sent from the Vallejo area to Oklahoma City; Jamaica; Queens, New York; Atlanta; and Milwaukee, Wisconsin.

The following individuals were charged with multiple counts of drug trafficking in the two federal criminal complaints:

Michael Lott, performs under the name “Miami the Most”

*Major Norton, performs under the name “Dubee”

*Lawrence Kennedy Nelson

Gaylord Franklin, performs under the name “Geezy”

Clifford Bullock

*Narco McFarland, Sr.

Latroy Cunningham

*Eric Robinson

Dante Barbarin

*Eileen Knight

Beshiba Cook

Bruce Thurmon, performs under the name “Little Bruce”

Damian Peterson

Mikel Brown

**Nicholas Ramirez

*Ung Duong

*Phat Nguyen

*Marcus Davis

**Tiffany Brown

Andre Cawthorne

*Michael Smiley

*Anthony Young

*Anthony Payton

*Arrested and detained in custody except where noted released.

**Arrested and released.

A preliminary hearing has been set for May 4, 2012.

This case is the product of an extensive investigation by the DEA Sacramento District Office, the Vallejo Police Department, the El Dorado County Sheriff’s Department, and the Sacramento FBI Safe Streets Task Force. Assistant United States Attorney Jason Hitt is prosecuting the case.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. 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.

When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed, unlike state court prisoners who are released early on parole, there is no early release on parole in the federal system.

The charges are only allegations. Each of the defendants listed is 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

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense 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 C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Review finds judge showed no bias

April 13, 2012

The Augusta Chronicle on April 12, 2012 released the following:

“By Greg Bluestein
Associated Press

ATLANTA — Prosecutors say they have found no evidence that mental impairment or racial bias affected any cases handled by a disgraced judge who was sent to prison for buying drugs with a stripper, ending the U.S. Attorney office’s review of the ex-jurist’s legal decisions.

U.S. Attorney Sally Quillian Yates said her office reached that conclusion after examining the cases of 29 defendants who asked for the review after former U.S. District Judge Jack Camp was arrested in October 2010. Camp, who resigned from the bench, was sentenced to 30 days in prison in March 2011 after pleading guilty to drug-related charges.

Yates called for the review after witnesses interviewed as part of the federal investigation into Camp suggested he had a racial bias, and Camp admitted in court filings that a 2000 bicycling accident caused brain damage and led him to use drugs.

“I hope that this demonstrates to citizens we serve that we are committed to justice, not to convictions,” Yates said this week. “When you have a situation that strikes at the heart of our justice system, we have to do everything we can to assure that the public has confidence in the system.”

Camp, who has been out of prison for about a year, said in a statement to The Associated Press that he felt vindicated by the review.

“Today, the U.S. Attorney has publicly confirmed what I never doubted throughout this ordeal,” he said. “I am pleased the report vindicates that my decisions were fair, impartial, and true to the law. Just as drug tests by the government had already shown no controlled substances, the report further confirms the fact that my work as a judge was never affected by drugs.”

Camp was 67 when he was arrested in a suburban Atlanta parking lot on Oct. 1 after he handed the stripper $160 to buy drugs from an undercover officer, according to court documents. The stripper was secretly cooperating with authorities.

The married judge, who has two grown children, pleaded guilty soon after his arrest to buying drugs for the stripper, possessing illegal drugs and giving the woman his $825 government-issued laptop. The former judge apologized at the March 2011 sentencing, saying he wanted to pay the debt he owed to society and rebuild his reputation.

Yates recused her office from the criminal case against Camp, but knew her office would need to deal with appeals filed by defendants who believed they were unfairly treated by the judge.

Yates said she decided her office would not object to any requests by any defendant sentenced by Camp between March 2010 and September 2010 — when Camp was believed to have been using drugs — for a new sentencing hearing with a different judge.

Of the 12 defendants who did so, six received the same sentence Camp had imposed, and five others’ sentences were reduced. Two of those were reduced when the new judge accepted a request from prosecutors that Camp had rejected to reduce the sentence because the defendants cooperated with authorities. One case is still pending.

It’s not unusual for a sentence to be reduced when the details of the case are heard by another judge.

In one case, U.S. District Judge Owen Forrester reduced Harold Wardlaw’s sentence for bank fraud from 145 months to 120 months. Wardlaw’s attorneys argued that his original sentence was “distorted” and failed to account for charitable giving in his past.

Another case involved former professional wrestler “Hardbody” Harrison Norris, who was initially sentenced to life in prison after he was convicted of leading a sex trafficking ring. His sentence was reduced to 35 years behind bars in December 2010 by another judge, after he argued the sentence was “grossly disproportionate” to those convicted of other crimes.

As more details of the Camp investigation surfaced, Yates had to consider expanding her office’s review.

Court filings in the case outlined Camp’s decades-long battle with depression and he blamed brain damage he suffered after the 2000 accident for his eventual dalliance with the stripper. Yates also said the investigation uncovered evidence of a possible bias: One witness told investigators Camp said it was difficult sentencing black men because they reminded him of someone he didn’t like, and another witness said Camp once used a racial slur to describe the same man.

Because of those two factors, Yates decided her office would consider reviews for the hundreds of cases that Camp heard during his 22-year career on the bench.

“We recognize that feelings of racial bias don’t arise overnight,” she said. “We felt it was important to tell any defendant who went before Camp that we would hear their case regardless of when it happened.”

Twenty-nine defendants made the request, and Yates assigned a team of 25 attorneys to review the cases. They spent hundreds of hours reading the trial transcripts, vetting motions and reviewing court filings. Each filled out a nine-page form with details about the case, detailing any potential problems with Camp’s decisions and issues regarding the “fairness or integrity of the judicial process.”

The attorneys went to great lengths to document anything out of the ordinary involving each case, even noting when Camp, who was known as a temperamental jurist, became cranky, lost his train of thought or forgot the name of an attorney trying the case.

“We wanted to go beyond that to see if something had gone amiss here — was there anything that would reflect a racial bias or that he was impaired?” Yates said. “Did anything look out of whack to us, even if it was legally defensible?”

Prosecutors found that of the 23 black defendants who requested the review, 10 received sentences at the lower end of the guideline range, eight were near the middle to high end and three more defendants were actually sentenced below what the range suggested. One other defendant was given life in prison because the law required it based on his prior convictions. The last case, involving a 1993 bank robbery conviction, fell within the guideline range but records didn’t indicate where.

Of the six remaining cases, five involved white defendants and one involved a Hispanic defendant. The review found that Camp sentenced two of those defendants to stiffer sentences than the guidelines suggested, one was sentenced near the middle of the guideline range, one was sentenced below the range and one is still pending. The records from the final case, which took place in 1996, haven’t arrived at the office yet.

Yates said the review brings an end to her office’s vetting of the case.

“This closes this chapter. It’s been a very difficult and troubling chapter for everyone,” she said. “But it’s something for us to be mindful of to make sure that the public be treated fairly.”

Meanwhile, other cases involving Camp are still pending.

The 11th U.S. Circuit Court of Appeals is considering an appeal by Rolando Martinez. He wants the court to review his drug trafficking conviction on grounds that prosecutors shouldn’t have allowed his case to be tried before Camp because they knew he was using illegal drugs. Camp declared a mistrial in Martinez’s case a day before his arrest because of a hung jury, and the defendant was later convicted in a trial before another judge.

And several civil cases are pending, too, including a lawsuit filed by attorneys from a now-shuttered strip club. They contend Camp should have recused himself from the club’s case because his personal experience put him too close to the debate.

But it won’t be easy to persuade the judges to overturn Camp’s decisions. At the March hearing involving the strip club’s challenge, a veteran judge suggested Camp’s out-of-court activities don’t necessarily merit a do-over.

“We have an unusual circumstance and we are very concerned,” said Circuit Judge J.L. Edmondson. “But we haven’t just canceled out what Judge Camp has done for months and months nor do we see a reason to do so.”

Camp, for his part, said he’s moving on from the “dark chapter” in his life.

“I deeply appreciate the encouragement offered by friends both near and far as I have come to terms with my mistakes, learned to manage my condition, and begun to forge a meaningful path toward the future,” he said in the statement.”

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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 C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Federal Jury Acquits All Six in a High-Profile Alabama Federal Corruption Case

March 8, 2012

AJC.com on March 7, 2012 released the following:

“Jury acquits all 6 in Ala. casino corruption case

By PHILLIP RAWLS
The Associated Press

MONTGOMERY, Ala. — A jury acquitted a casino owner, three current or former state lawmakers and two other defendants on all counts Wednesday in a high-profile federal case that alleged the legislators were being bribed to legalize gambling in the state.

The jury returned its verdict after seven days of deliberations. One-by-one, each defendant stepped up to a podium in front of the judge to hear the verdicts. They nodded in agreement with the jury’s decision, squeezed their attorneys’ hand or bounced nervously as the clerk said not guilty. Family members in the gallery sobbed in relief, and when court recessed, there were hugs all around.

“We feel like this case was built on innuendos, lies and half-truths,” said Tom Coker, a casino lobbyist who was among those acquitted.

The federal investigation of vote buying began with three Republican legislators telling the FBI they were offered campaign contributions if they would support legislation designed to let electronic bingo games operate in Alabama.

Federal prosecutors said behind the scenes, two casino operators and their lobbyists were offering millions in campaign contributions, benefit concerts by country music entertainers, free polling and other incentives for votes.

The trial was the second for the defendants. The first ended in August with no convictions, two defendants acquitted, and the jury unable to resolve all charges against the remaining defendants.

“This is truly a day to celebrate, and ladies and gentlemen, the celebration starts now,” said VictoryLand casino owner Milton McGregor.

State Sen. Harri Anne Smith said she would walk into the Senate on Thursday and get to vote again.

“I got my life back today and I want to thank God for that jury,” Smith said.

Also acquitted were former Sens. Larry Means and Jim Preuitt, and Country Crossing casino spokesman Jay Walker.

McGregor, the casino owner, was accused of offering large campaign contributions to legislators for their votes for gambling legislation. Smith and the former senators were accused of agreeing to accept bribes in return for their votes.

The jury found McGregor and the others innocent on charges that included conspiracy and bribery.

The case was the latest in a series of government corruption investigations in Alabama, including the conviction of former Gov. Don Siegelman and former HealthSouth CEO Richard Scrushy on bribery charges in 2006 and a probe of Alabama’s two-year college system that brought down three legislators and the system’s former chancellor in 2008.

The three Republican legislators who cooperated with the FBI recorded calls and meetings and the FBI tapped phones during a yearlong probe that coincided with Republican Gov. Bob Riley creating a task force to shut down electronic bingo. Riley said the machines, featuring flashing lights and sound effects, were illegal slot machines and not simply an electronic version of paper bingo.

Riley’s task force seized machines and won court battles while casino operators failed in 2009 and in 2010 to pass protective legislation.

Ronnie Gilley, the developer of Country Crossing casino, and two of his lobbyists, Jennifer Pouncy and Jarrod Massey, pleaded guilty to conspiracy. Former state Rep. Terry Spicer of Elba also pleaded guilty to accepting bribes from Massey and Gilley. All four helped the prosecution and are scheduled for sentencing in April.

Prosecutors said Gilley provided Smith with $200,000 in campaign money, plus a fundraising concert by John Anderson and Lorrie Morgan. They accused Gilley and McGregor of promising Means $100,000 for his vote. They accused Gilley, McGregor and Walker of promising Preuitt $2 million in contributions, a fundraising concert by country music starts and other campaign support.

Defense attorneys argued the case was based on lies told by the guilty in hopes of getting lighter punishment.

All three indicted senators voted for the gambling legislation when it passed the Senate on March 30, 2010. The FBI announced its investigation two days later, and the bill died in the House without coming to a vote.

McGregor’s casino, 15 miles east of Montgomery, was once the state’s largest with 6,000 machines, but it has been closed since the crackdown in 2010. Other casinos, including one in Dothan operated by Gilley’s former partners, are operating.

One thing that was never in dispute in the trial was the profitability of electronic bingo. McGregor’s attorneys acknowledged his casino in Shorter made $40 million in 2009 when it was operating all year and lost $4 million in 2010 when it was closed most of the year.”

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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.


Brother’s complaints led to FBI raid

October 28, 2011

The Charleston Gazette on October 26, 2011 released the following:

“By Eric Eyre

CHARLESTON, W.Va. — Complaints about alleged fraud at a Milton apartment complex helped spark a federal investigation into a Charleston developer and his real estate management company, a Putnam County man said Wednesday.

Johnny C. Sargent said Charleston-based Encore Management, which runs Hickory Way apartments in Milton, was receiving federal funds to lower his sister’s monthly rental payments, but withheld the money and didn’t discount her rent.

Sargent said he and his sister, Diana Kirk of Milton, notified the U.S. Department of Agriculture and Sens. Jay Rockefeller and Joe Manchin about the alleged fraud.

He said an employee in Manchin’s office called him Tuesday — the day federal agents raided Encore Management’s office — to thank Sargent for bringing the issue to the senator’s attention.

“They told me the information I provided was very helpful,” Sargent said.

This week, federal agents descended on Encore Management’s headquarters on Quarrier Street, a block from the state Capitol. The U.S. Attorney’s Office and FBI are investigating the company.

“The whole thing in a nutshell, the [management company] defrauded my sister, and I know this can’t be an isolated incident,” Sargent said Wednesday.

Encore Management President Douglas E. Pauley could not be reached for comment Wednesday. No one answered the phone at the company’s Charleston office, and the voice mail messaging system wasn’t working. Earlier this week, Pauley’s lawyer declined to comment on the federal probe.

FBI agents returned to Encore Management’s office Wednesday, seizing hundreds of boxes of additional records that were loaded into U-Haul rental trucks.

Melvin Smith, a spokesman for the U.S. Attorney’s Office, said the FBI has executed a search warrant, but the information in the document remains under seal.

Sargent, who lives in Hurricane, said Encore Management received federal assistance to lower his sister’s rent for eight months, but didn’t pass along the savings.

“They did this without my sister’s knowledge,” he said.

Sargent said the USDA typically covers 70 percent of the monthly rental payment, while the tenant pays the remaining 30 percent under the assistance program.

But Sargent’s sister had to pay the rent’s full amount — $450 a month, he said.

Sargent contacted a USDA representative, who determined Kirk should have been receiving discounted rent because Encore Management was receiving rental assistance in her name.

Sargent eventually hired a lawyer and filed a lawsuit. Encore settled the case and reimbursed Kirk for the money it had withheld, he said. Encore also fired the 40-unit apartment complex’s on-site manager, Sargent said.

He said the federal government must take steps to prevent future abuses by companies that manage apartment complexes for low- and middle-income residents.

“The easy fix is to have the federal government notify tenants in a letter that they are getting assistance paid on their behalf,” Sargent said. “If you leave it up to the landlords, they could go forever without notifying the tenants. There’s potentially billions of dollars being wasted across the U.S.”

Pauley and Encore Management own about 50 low-income apartment complexes across the state.

Pauley’s numerous companies have received tens of millions of dollars through the West Virginia Housing Development Fund and the USDA’s rural rental housing program.

Pauley primarily develops apartment complexes using the national Low-Income Housing Tax Credit Program. The program helps developers defray the cost of building affordable housing for people who earn too much to qualify for subsidized housing but don’t earn enough to pay market-value rents.

Pauley has developed more tax-credit financed apartment complexes than any other program recipient in the state, according to the Housing Development Fund.

If Encore Management defrauded just a few residents at each complex every year, the money would add up to hundreds of thousands of dollars, Sargent said.

“It’s enough money to pay for an entirely new apartment complex,” he said. “I’m really fired up about this. I’m still ticked off.”"

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

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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 looks into San Antonio Independent School District (SAISD) Funds

October 17, 2011

My San Antonio on October 15, 2011 released the following:

Money allegedly was steered away from district.
By Lindsay Kastner

A federal investigation is under way into the San Antonio Independent School District, where this week two top employees resigned amid allegations they steered about $800,000 in federal money to businesses owned by family and friends.

Eduardo Elizondo and Tony Mayhan together allegedly guided more than $300,000 to companies owned by their wives, and Mayhan also apparently steered other maintenance and cleaning jobs to other individuals.

“The FBI confirms that we are conducting an inquiry into the allegations of misappropriations of grant moneys,” special agent Erik Vasys said Friday.

He declined to say whether the federal probe is related to Elizondo and Mayhan, but did say the department is working in conjunction with the Texas Education Agency.

On Monday the district announced the results of its internal investigation into Elizondo and Mayhan. The pair, who worked in the department of federal programs, spent at least three years funneling federal money to their wives’ companies and others using what SAISD Superintendent Robert Durón described as a “well calculated” scheme.

SAISD attorney Pablo Escamilla said Friday that multiple laws might have been broken.

“The possibility of a conflict of interest, the violation of bidding laws — both state and federal — those are the two obvious ones,” he said.

SAISD spokeswoman Leslie Price said district officials were unaware of an FBI investigation.

“We haven’t been informed of that, but we have been working closely with TEA,” she said.

The district requested an audit by TEA and help to establish which vendor payments were legitimate and in which instances, if any, the district might have to return federal funds.

“We’ve been working and communicating with the TEA, and they’ve been determining the next steps,” Price said.

SAISD sent the agency a copy of its preliminary audit, TEA spokeswoman Debbie Graves Ratcliffe said.

“We’re not actually doing an audit at this point,” she said. “The district has their internal auditor looking into it at this point. … And we’ll wait until we get their final report before we decide what to do.””

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.


Before news of FBI raid, investors bet against Boca firm, raising insider trading suspicions

September 29, 2011

The Palm Beach Post on September 29, 2011 released the following:

“By JEFF OSTROWSKI
Palm Beach Post Staff Writer

BOCA RATON — In the hours before investors learned that Imperial Holdings was the target of a federal investigation, investors made a large number of bets that the company’s stock would plunge.

Volume for puts to sell shares – a bet that the stock price would fall – totaled 1,948 on Tuesday. That was 85 times the daily average since the options were listed on exchanges in February, Bloomberg News reports today.

Call volume was 35 times the normal activity. The most active options were October $5 puts, which accounted for more than half of all volume. Those contracts, which had never traded before that day, changed hands in blocks as large as 80, Bloomberg reported.

The options trading began at 11:25 a.m. Tuesday, Bloomberg said. The New York Stock Exchange halted trading of Imperial Holding (NYSE: IFT) at 1:42 p.m.

Investors learned that FBI agents had raided the company’s Boca headquarters at 2:26 p.m., when The Palm Beach Post reported the raid.

The spike in options activity raised eyebrows.

“This feels like a trade with prior knowledge of a news event, or extraordinarily good timing,” Ophir Gottlieb, managing director of client services at San Francisco-based Livevol Inc., told Bloomberg.

Imperial is a specialty finance firm that finances insurance premiums, buys life insurance policies from policyholders and buys structured settlements from plaintiffs in lawsuits.

Chief Executive Antony Mitchell, 45, and Chief Operating Officer Jonathan Neuman, 38, are among the Imperial Holdings employees “under investigation in the District of New Hampshire” in connection with the company’s life-finance business, the company said in a statement.

Imperial Holdings shares fell 65 percent Wednesday and have jumped 23 percent today.”

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.

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