Feds: SC businessman illegally exported to Iran

May 23, 2012

Bloomberg Business Week on May 22, 2012 released the following:

THE ASSOCIATED PRESS

“By MEG KINNARD

The president of a North Charleston company has been arrested and charged with illegally exporting goods to Iran and lying to agents about his trade practices, according to federal prosecutors.

Markos Baghdasarian was arrested Saturday at Atlanta’s main airport before he could board a flight to the United Arab Emirates. That’s where, according to federal authorities, Baghdasarian had a business associate who helped get his South Carolina-made products into Iran.

Baghdasarian was president of Delfin Group USA, a Russian-owned producer and supplier of synthetic motor oils that solidified its U.S. presence in the North Charleston area in 2008 with a $55 million renovation to an old Shell Oil plant it had bought for $20 million. Company officials said he was placed on leave May 14 and referred comment on the case to its outside counsel, who did not immediately return a message Tuesday.

Prosecutors said Baghdasarian broke federal law that prohibits trade with Iran without special permission from the federal government. Federal law also requires exporters and shippers to file forms showing where the goods are going.

Some of the evidence that agents say they have amassed against Baghdasarian comes from emails to him from two unidentified business associates, who discussed how to safely get Baghdasarian’s products to Iran without detection. According to prosecutors, one of those unidentified businessmen was Baghdasarian’s agent in Iran and also represented a company in the United Arab Emirates used to ship Delfin products to Iran.

A second unidentified businessman operated another business in the UAE for similar purposes, said John Hardin, a U.S. Immigration and Customs Enforcement agent, in an affidavit.

In July 2010, one of the unidentified businessmen had conversations with another person on how to help Baghdasarian get around U.S. sanctions on Iran by using his UAE-based company. In those communications, according to Hardin, the unidentified businessman said the materials would come into Iran via Dubai but would be relabeled as “UAE product.”

“So u are safe Markos is safe,” the other associated replied, according to Hardin. Other communications discussed what product labels should look like, with one message including a fake address for a California company and a toll-free number that agents determined actually went to offices for Victoria’s Secret.

In August 2011, Delfin USA tried to send aviation engine lubricating oils worth $850,000 to an associate in the UAE, according to Hardin. Federal officials failed in their efforts to contact Baghdasarian’s company to get information about that shipment. Agents attached electronic trackers to another load of 11 containers bound for the UAE; one was traced all the way to Iran.

Earlier this month, Baghdasarian acknowledged to federal agents that one of the unidentified businessmen was a middle man for his company’s products but, according to agents, lied in saying that he didn’t know that the other associate was in Iran until just a few months earlier — after the U.S. Department of Commerce suspended his company’s trading privileges.

Baghdasarian faces up to 20 years in prison if he is convicted. He had an initial hearing in Georgia on Monday, and it wasn’t immediately clear when he would be extradited to South Carolina. A person who answered a number listed for Baghdasarian’s home said she did not know if he had an attorney.”

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Douglas McNabb – McNabb Associates, P.C.’s
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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.


US prosecutors: Ex-Mexican governor’s Texas properties bought with bribes from drug cartels

May 23, 2012

The Washington Post on May 22, 2012 released the following:

“By Associated Press

McALLEN, Texas — Federal prosecutors allege the former governor of a Mexican state bordering Texas accepted millions of dollars in bribes from drug cartels and invested the money in Texas real estate.

The allegations were levied in two property forfeiture cases filed Tuesday against Tomas Yarrington, who served as governor of Tamaulipas state from 1999 to 2004. No criminal charges have been filed.

Yarrington’s attorney says he’s reviewing the documents.

Yarrington was named earlier this year in the federal indictment of a man charged with money laundering in San Antonio. That indictment alleged leaders of the Gulf and Zetas cartels paid millions to Institutional Revolutionary Party members, including Yarrington.

In the forfeiture cases, U.S. authorities are trying to confiscate a condominium in South Padre Island and a 46-acre property in San Antonio.”

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

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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.


Prosecutors also have stake in Edwards’ trial verdict

May 22, 2012

Myrtle Beach Online on May 21, 2012 released the following:

“By Anne Blythe

GREENSBORO — John Edwards might be the one with the most to win or lose with the jury deliberating his fate, but the U.S. Department of Justice has a lot riding on his case, too.

When the eight men and four women return to the federal courthouse in downtown Greensboro Tuesday morning, they will begin their third day of deliberations in a case that also has put the Justice Department’s small public-integrity section under scrutiny.

Edwards’ trial came almost four years after the unit’s federal prosecutors bungled a corruption case against Ted Stevens, the U.S. senator from Alaska accused of failing to properly report more than $250,000 in gifts.

Stevens was convicted, , but the verdict was appealed and later vacated after it was revealed prosecutors and FBI agents had conspired to conceal and withhold evidence from the defense.

An investigation was launched into the integrity and professional practices of prosecutors in the public-integrity division. A scathing report from that investigation was released earlier this year, showing that prosecutors had “repeatedly ignored the law” and the ethical standards of their profession.

The Public Integrity Section was set up to root out corruption through the prosecution of elected and appointed public officials at all levels of government.

The section has exclusive jurisdiction over allegations of criminal misconduct on the part of federal judges and also supervises the nationwide investigation and prosecution of election crimes.

New chief for federal unit

Since the Stevens case, the unit has a new chief, former New York-based federal prosecutor Jack Smith. The Justice Department also has ordered training to make sure prosecutors disclose key evidence to defense attorneys.

Attorneys who have attended Edwards’ trial have commented throughout that the prosecution as well as the defense has a lot at stake in the case.

Edwards, a former two-time Democratic presidential candidate and U.S. senator who branched into politics after achieving success as a trial lawyer, was indicted last June on six counts related to violations of campaign-finance laws. The violations allegedly occured during Edwards’ campaign for the 2008 nomination, when two wealthy Edwards’ supporters gave more then $900,000 used to help hide Edwards’ extramarital affair with Rielle Hunter and her pregnancy.

Each of the six counts Edwards faces carries a penalty of up to five years in prison and a $250,000 fine. However, Kieran Shanahan, a former federal prosecutor from Raleigh who sat through the trial, said Edwards – if convicted and unable to successfully appeal – would likely recieve a concurrent sentence and serve no more than five years.

Peter Henning, a law professor at Wayne State University in Detroit and co-author of “The Prosecution and Defense of Public Corruption,” said Monday that a not-guilty verdict would be “a black eye” for the justice department.

“It would call into question their decision even to pursue the case,” Henning added.

But he added that he had seen no surprises from the prosecution, and that ultimately the questions that arise from the trial might be those raised by rulings made outside the jury’s presence by Judge Catherine Eagles, who was appointed to the federal bench in 2010 by President Barack Obama.

Eagles prohibited a former Federal Election Commission chairman from offering his opinion to the jury on whether the money from billionaires Rachel “Bunny” Mellon and Fred Baron would typically be classified as a campaign contribution or gift. Scott Thomas, who had more than 30 years with the FEC, testified while the jury was out of the courtroom that he thought the money that went from Mellon and Baron to other people was used for personal expenses that did not need to be publicly reported or subject to campaign limits.

The jury, during its first two days of deliberations, has asked for many exhibits related to testimony about the $925,000 in checks issued by Mellon in 2007 and 2008.

Though only the 12 people on the jury know what is being discussed behind closed doors, the first two counts on the jury verdict sheet are related to the Mellon money.

Toward the end of the trial, the jurors sounded as if they were a collegial group, laughing and talking as they walked into and out of the jury box.

On Monday, the second day of deliberations, the jurors were quieter and somber-looking, barely looking at prosecutors or Edwards as they waited for the judge to answer questions or release them for lunch or the evening break.

As many await the verdict inside the federal courthouse in downtown Greensboro, national political organizations are seeking answers and raising questions outside the tense atmosphere.

Objections to judge’s instructions

On Monday, the Center for Competitive Politics, a conservative group that promotes the deregulation of U.S. elections, harshly criticized the final juror instructions issued last week in the trial, particularly sections about the definition of “influencing an election.”

“If Edwards goes to prison, we will have an Alice in Wonderland world where conduct that would not be punished by a civil fine can result in jail time,” Allison Hayward, vice president for policy of CCP, said in a prepared statement.

The organization’s spokeswoman pointed to a U.S. Supreme Court case decided in 1976, the landmark Buckley v. Valeo case, which states that under “due process” a person of ordinary intelligence must understand that his actions could be considered illegal.

“There is no legislative history to guide us in determining the scope of the critical phrase ‘for the purpose of … influencing,’ ” Hayward further stated.

“The Supreme Court said the phrase ‘for the purpose of influencing’ is so vague and broad that it cannot be constitutionally applied to define campaign spending.””

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

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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.


As Gupta Insider Trading Trial Begins, Prosecution to Call First Witness

May 22, 2012

WNYC News on May 22, 2012 released the following:

By WNYC Newsroom

“Federal prosecutors are expected to call their first witness in the case against former Goldman Sachs board member Rajat Gupta on Tuesday.

The witness list in the case reads like a who’s who in business, including Warren Buffet and Lloyd Blankfein. But the prosecution is expected to call Gupta’s former secretary, Caryn Eisenberg to the stand first. Other possible witnesses for the prosecution on Tuesday include an FBI agent and a former co-worker of Gupta’s from the consulting firm McKinsey.

Prosecution and defense teams have made their opening arguments in the trial of the prominent NY businessman on Monday.

Government lawyer said they have Gupta’s phone records that show he illegally passed corporate secrets to his friend, Raj Rajaratnam, who ran a hedge fund. Assistant U.S. Attorney Reed Brodsky told jurors in opening statements that Gupta “threw away his duties, threw away his responsibilities and broke the law.”

Brodsky recounted how former billionaire Rajaratnam earned close to $1 million after Gupta told him in a phone call that Goldman had received an offer from Warren Buffett’s Berkshire Hathaway to invest $5 billion in the banking giant in 2008.

“That was trading on secrets coming from someone who actually knew what was happening in the confines of the board room,” Brodsky said. “That’s called insider trading and that’s a serious crime.”

Gupta’s lawyer said the prosecution’s evidence is like a cropped photograph. It doesn’t tell the whole story, it’s circumstantial. He questioned why a rich and successful businessman take this risk.

Defense attorney Gary P. Naftalis told jurors that Gupta “never defrauded anybody. He never cheated anybody.” Naftalis argued the call harms rather than helps the government’s case because no unusual trading occurred around that time, and the men were discussing information already reported by analysts and journalists.

The 63-year-old Gupta was a former Goldman Sachs board member, and also a former board member at Procter & Gamble Co.

Gupta has pleaded not guilty to conspiracy and securities fraud charges that carry a potential for more than 100 years in prison.”

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

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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.


Roger Clemens trial: Prosecutors seek to authenticate physical evidence used against pitcher

May 22, 2012

The Washington Post on May 21, 2012 released the following:

“By Ann E. Marimow and Del Quentin Wilber

Federal prosecutors delved into the nitty gritty of the distribution, design and freshness of Miller Lite beer cans Monday as they sought to authenticate the physical evidence being used against star pitcher Roger Clemens in his perjury trial in the District’s federal courthouse.

A crushed beer can has played something of a leading role in the trial: Clemens’s former strength coach and chief accuser, Brian McNamee, used one to store needles, cotton balls and gauze he said he used to inject the baseball legend.

McNamee, who testified for a sixth and final day Monday, has said he recovered the can from Clemens’s recycling bin after injecting him with performance-enhancing drugs at his Manhattan apartment in 2001.

Displaying a chart that showed the evolution of the blue-and-gold Miller Lite can since the 1970s, government lawyers used the testimony of a beer company manager to try to back up McNamee’s assertion by putting a date on the can.

MillerCoors manager Anthony Manuele testified about the “freshness code” on the can in question and determined that it was filled in July 2001 at a North Carolina brewery and would have hit retail shelves in August.

On cross-examination, Clemens’s lawyer Rusty Hardin tried to raise doubt about McNamee’s story and pointed out that the company’s distribution map meant that the strength coach could have purchased the can in his home town of Breezy Point, N.Y.

Manuele’s testimony showed the lengths prosecutors have gone to try to authenticate evidence against Clemens, who is charged with perjury, making false statements and obstruction of Congress for denying to a House panel in 2008 that he had ever used performance-enhancing drugs. Congress was following up on a 2007 report by former senator George Mitchell that named dozens of ballplayers, including Clemens.

Government lawyers have already called a U.S. Postal Service employee to try to establish the likely date of a shipping receipt from steroid supplier Kirk Radomski to McNamee at Clemens’s Houston home.

The trial, now in its sixth week, again featured testimony from McNamee, who said Monday that he had supplied several big league ballplayers with performance-enhancing drugs and shared that information with law enforcement officials.

McNamee’s testimony regarding other ballplayers and performance-enhancing drugs was intended to suggest that he was not out to get Clemens when he began confiding in federal agents in 2007.

Defense attorneys for Clemens had opposed allowing McNamee to testify about the other players because of concerns about “guilt by association.” But U.S. District Judge Reggie Walton ruled that the government could introduce the information as a way to bolster McNamee’s credibility.

Last week, McNamee endured aggressive questioning by Hardin, Clemens’s lead attorney. He was forced to acknowledge that his story about injecting the baseball legend had evolved over time and that he had lied to federal agents and, separately, to police in a Florida criminal investigation.

But McNamee has largely remained unapologetic about his changing story. McNamee said Monday that he was loyal to Clemens and had no incentive to damage his employer’s reputation. The strength coach agreed to cooperate with federal agents, he said, to try to avoid getting in trouble for distributing the banned substances.

He told authorities about his involvement with several players, including pitchers Mike Stanton and Andy Pettitte and infielder Chuck Knoblauch. Earlier in the trial, Pettitte gave conflicting testimony about his memory of a conversation with Clemens about human growth hormone.

Before leaving the stand, McNamee said he regretted helping Clemens with performance-enhancing drugs. McNamee said he had become unemployable, ruined his marriage and his relationship with his children.

“I shouldn’t have gotten involved. I should have just educated and left it at that. I shouldn’t have enabled,” he said.

Prosecutors and defense attorneys also questioned a neighbor of Jose Canseco, Clemens’s former teammate. Alexander Lowrey was 11 years old at the time he attended a 1998 pool party at Canseco’s home, where he had his picture taken with Clemens.

McNamee alleges that Clemens and Canseco talked about performance-enhancing drugs at the party, but defense lawyers suggested that Clemens was playing golf during the time that McNamee attended.

Lowrey was questioned in an attempt to establish whether Clemens and McNamee could have been at the party together. Under cross-examination, Lowrey conceded to Hardin that he was uncertain of the date of the party or the exact times that he was there, raising questions about the timing of the conversation McNamee claimed to have observed.”

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

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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.


Key witness in Clemens trial to take stand again

May 21, 2012

Reuters on May 21, 2012 released the following:

“By Lily Kuo

(Reuters) – Government prosecutors on Monday will try to salvage the credibility of their key witness in the perjury trial of former Major League Baseball star Roger Clemens when his ex-trainer who said he supplied the pitching ace with drugs takes the stand.

Brian McNamee, the most important witness for federal prosecutors who have charged Clemens with lying to the U.S. Congress about using the performance-enhancing drugs, will be wrapping up more than 20 hours of testimony in U.S. District Court.

In questioning last week, lawyers for the pitching great attacked McNamee’s trustworthiness and hammered him over inconsistencies in his story.

Also on Monday, Judge Reggie Walton was expected to rule on a government motion to allow previously prohibited evidence showing that McNamee supplied drugs to other players – a move that could extend the trial. It is already expected to take until June 8.

McNamee says he injected Clemens with anabolic steroids and human growth hormone from 1998 to 2001, citing as evidence needles, gauze, a broken steroid ampoule and human growth hormone stuffed into a Miller Lite beer can that McNamee said Clemens had given to him in 2002.

Clemens, 49, is being tried for a second time on federal charges of lying in 2008 to the U.S. House of Representatives’ Committee on Oversight and Government Reform, which was investigating drug use in baseball. His first trial ended in a mistrial last year.

On Friday, pressed by Clemens’ lawyer Rusty Hardin, McNamee revealed that not all of the waste – evidence he had turned over to federal authorities – was connected to Clemens and included items used by other players.

Hardin noted that during a six-week period in 2002, the year Clemens allegedly gave McNamee the can, McNamee pleaded guilty to two charges of driving under the influence in New York. Hardin asked McNamee if the charges showed he had a drinking problem, to which McNamee said, “I disagree.”

McNamee, Clemens’ personal trainer while he pitched for the Toronto Blue Jays and later with the New York Yankees, has admitted lying to federal investigators and to an independent commission headed by former U.S. Senator George Mitchell that investigated drug use in Major League Baseball.

But McNamee has remained steadfast in alleging that Clemens used drugs to enhance his performance.

Clemens was known as “The Rocket” during a career that ran from 1984 to 2007. He won the Cy Young Award as best pitcher seven times and is among the biggest names implicated in drug use in baseball.”

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

Federal Crimes – Be Careful

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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.


Federal appeals panel to hear CIA leak case

May 18, 2012

The Boston Globe on May 18, 2012 released the following:

“By Zinie Chen Sampson
Associated Press

RICHMOND, Va.—A federal appeals panel will hear the case of an ex-CIA officer charged with leaking classified information about Iran’s nuclear program to a New York Times reporter.

Federal prosecutors will ask the panel Friday to reverse a pretrial ruling limiting the scope of reporter James Risen’s testimony in the prosecution of Jeffrey Sterling. They argue that the First Amendment doesn’t shield journalists from disclosing their sources during criminal prosecutions brought in good faith.

The judge ruled that Risen must testify at Sterling’s trial, but narrowed his testimony to four issues.

Prosecutors say Sterling was a key source in Risen’s 2006 book, “State of War.” They’re also challenging the court’s decision to strike two government witnesses and allow disclosure of the identities of covert CIA operatives to Sterling’s lawyers.”

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

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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.


Roger Clemens trial: Prosecutors seek to present evidence of McNamee injecting players with drugs

May 18, 2012

The Washington Post on May 18, 2012 released the following:

“By Del Quentin Wilber

Federal prosecutors asked a judge Friday morning to allow them to present evidence that their star witness injected other players with performance-enhancing drugs as they continued to press their perjury case against baseball legend Roger Clemens.

In court papers, prosecutors wrote that they felt it was necessary to seek the introduction of such evidence — which they believe will bolster their witness’s credibility — because defense lawyers have argued that Brian McNamee has “falsely accused” Clemens of having taken steroids and human growth hormone.

U.S. District Judge Reggie B. Walton had ruled that prosecutors could not introduce such evidence because it would be prejudicial to Clemens. But he said last year that he would reconsider his decision, depending on how defense lawyers attacked Clemens’s former strength coach.

Prosecutors wrote that they wanted to introduce such evidence because it would buttress McNamee’s contention that he injected Clemens with performance-enhancing drugs. He has said he injected Andy Pettitte, Mike Stanton and Chuck Knoblauch with such substances, and the players have all confirmed his story.

McNamee first made his allegations to federal agents, then to former senator George Mitchell, who issued a 2007 report on the rampant use of steroids in Major League Baseball. He later reiterated those allegations to Congressional investigators and lawmakers. Clemens is charged with lying to Congress in 2008 when he vehemently denied McNamee’s claims.

The government needs to “rebut defendant’s suggestions that McNamee lied to Special Agent Novitzky, Senator Mitchell, Congress, and this jury to avoid being charged with a crime and to gain fame and fortune as a result of the allegations against defendant, the government should be permitted to show that McNamee provided information about the use of HGH by Major League Baseball players Andy Pettitte, Chuck Knoblauch, and Mike Stanton, who all subsequently admitted to Congress (Pettitte and Knoblauch) or to the grand jury (Stanton, Pettitte, and Knoblauch) that the information that McNamee provided about them was accurate,” wrote prosecutors with the District’s U.S. Attorney’s Office, which is handling the case.

“Pettitte’s, Knoblauch’s, and Stanton’s admissions of their illegal behavior to Congress and the grand jury are the functional equivalent of guilty pleas. In the face of the attacks on McNamee’s credibility, that evidence makes it less probable that McNamee was or is simply lying out of self-interest against defendant and thus is relevant. This evidence specifically rebuts the notion that McNamee was biased out of self-interest in defendant’s case because McNamee’s association with these other players at the time he saved defendant’s medical waste, as well as the fact that he had and shared the information about other players at the time he was dealing with law enforcement, at the time of his publicity relating to what he told law enforcement.”

McNamee, a former Major League strength coach who worked with and for Clemens, started testifying on Monday and told jurors that he injected the seven-time Cy Young Award winner with steroids or growth hormone in 1998, 2000 and 2001. Clemens’s lead attorney, Rusty Hardin, began cross-examining him on Tuesday afternoon and has been hammering the former strength coach about inconsistencies in his story and lies he has told over the years.

That cross-examination continues Friday. Federal prosecutors have said they are going to call 14 more witnesses — though they have refused to disclose whom they intend to next put on the witness stand — in a trial that has already drawn sharp criticism from Walton for its sluggish pace. Walton has repeatedly warned lawyers for both sides that jurors are growing restless. He has already excused two jurors for sleeping.”

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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

————————————————————–

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.


Father and son plead guilty in multimillion-dollar federal bribery scheme

May 18, 2012

The Washington Post on May 18, 2012 released the following:

“By Clarence Williams

A former program manager for the Army Corps of Engineers and his son pleaded guilty Thursday to federal charges in a scheme that paid out more than $30 million worth of bribes and kickbacks as payments for steering multimillion dollar government contracts, federal prosecutors said.

Kerry F. Khan, 54, of Alexandria, pleaded before Judge Emmet G. Sullivan in the U.S. District Court in the District to charges of bribery and conspiracy to commit money laundering, officials said in a statement.

“Today, the ringleader of the largest bribery and bid-steering scheme in the history of federal contracting accepted responsibility for his crimes,” U.S. Attorney for the District Ronald Machen said in the statement. “For his shocking abuse of his position of power, Kerry Khan faces more than two decades in prison.”

Kahn’s son, Lee A. Kahn, 31, of Fairfax also pleaded guilty to a charge of conspiracy to commit money laundering. The elder Khan worked for the Army Corps of Engineers from 1994 until he was arrested by federal authorities in October 2011. His position gave him authority to place orders for products and services through federal contracts, and he also certified that work orders were completed, officials said.

The father and son were among four men arrested in October on charges of conspiring to commit bribery and wire fraud. Authorities accused the men of inflating invoices during a four-year period and then collecting tens of millions of dollars for themselves and co-conspirators.

Prosecutors said Kerry Khan signed a statement of offense that said that in or around 2006, he and colleagues agreed to work together to obtain government contracts for corrupt contractors who would reward them with bribes. Authorities said their investigation continues, but they have found eight people to have have been part of this scheme.

Among others, Kerry Khan and Michael A. Alexander, also an Army Corps of Engineers program manager, worked with Harold F. Babb, a contractor, on their plot to use a company called EyakTek as a vehicle for channeling contracts awarded by the Army Corps of Engineers. EyakTek then hired subcontractors that submitted fraudulently inflated estimates or prices for equipment and services, authorities said.

The subcontractors kicked back a significant portion of the excess funds to Kerry Khan and Alexander as bribes for keeping the money flowing their way, officials said.

Prosecutors said Khan and his son admitted to establishing multiple corporations and shell companies to hide the money and purchase real estate, including several houses and condos. Lee Khan managed the portfolio of properties and automobiles purchased using the bribe money, by leasing the homes to tenants or selling vehicles, officials said.

A sentencing date has not been set for either man. Kerry Khan faces a maximum 15-year sentence for the bribery charge and up to 20 years in prison for the conspiracy charge. Babb and Alexander pleaded guilty to federal charges earlier this year.

The men will remain held through the sentencing, officials said.”

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Douglas McNabb – McNabb Associates, P.C.’s
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Federal Crimes – Be Careful

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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.


Federal bank fraud cases up in north Alabama

May 14, 2012

Blog.al.com on May 13, 2012 released the following:

By Kent Faulk

“BIRMINGHAM, Alabama — Eight men and women have stood before federal judges in Birmingham the past few weeks on bank fraud charges.

Among them:

• A Mountain Brook man sentenced to four years in prison for embezzling nearly $1.2 million from his former employer by writing checks to himself on the company’s bank account.
• A former Union State Bank branch employee in Trussville sentenced to a month in prison for theft of about $25,000 from the teller drawer and bank vault in 2007 and 2008.
• A former Regions Bank telebanking representative who pleaded guilty to taking $190,000 from a customer’s account during a two-year period, and directing money from the account to pay her bills after she had left her job.

The number of cases being prosecuted for bank fraud by the U.S. Attorneys Office for the Northern District of Alabama has steadily increased in recent years. In 2011 federal prosecutors charged bank fraud in 22 cases, up from 16 cases in 2010, 15 cases in 2009 and 11 cases in 2008. So far, eight cases have been charged this year through May 4.

Some cases include more than one defendant and other charges are also included in some cases.

“I guess it’s a sign of the times,” said James Kendrick, a Birmingham attorney who has represented clients charged with bank fraud.

Rod Pittman, director of corporate security for BBVA Compass, stated in a written response to questions from The Birmingham News that recently they have “seen a significant increase in fraud attempts, the majority of which can be attributed to the economy and technology.”

“In this economy many people are unemployed and more likely to be in a desperate financial situation. This sometimes results in attempted fraud,” Pittman wrote.

Some of those charged with bank fraud in the past year have been bank employees working alone or with help from outside the bank.

Bank employees may be thinking they will pay it back, Kendrick said. “Before you know it, you’ve got more than you can pay,” he said.

Bank fraud isn’t always an inside job.

“The crime of bank fraud is broader than a bank employee stealing money from the bank,” said Peggy Sanford, spokeswoman for the U.S. Attorneys Office in Birmingham.

“The statute allows that if someone makes misrepresentations to a bank in order to get other people’s money held in that bank, then bank fraud has occurred.”

Some attorneys and bank security officials attribute the increase in people being charged by federal prosecutors to a more aggressive stance by the Justice Department on financial fraud.

In many cases the dollar amount is the difference between whether federal prosecutors or state prosecutors will handle a case, said Larry Meredith, director of corporate security for Birmingham-based Cadence Bank.

The U.S. Attorneys Office has been active when it comes to presentations to the banks on various issues, including the importance of the timely sharing of information on possible criminal activity, said Bill Burch, director of corporate security for Regions Bank. “The communication between prosecutors, federal law enforcement offices (and banks) has been enhanced dramatically,” he said.

Sanford said the push by U.S. Attorney Joyce White Vance’s office in north Alabama is consistent with the U.S. Justice Department’s efforts to make financial fraud a top priority and President Barack Obama’s creation of the Financial Fraud Enforcement Task Force.

Banks don’t generally share how much they lose to fraud schemes, but as an industry it’s in the billions of dollars each year, according to some estimates.

But it’s a lot more than the old fashioned way of illegally taking money from a bank.

“The losses are greater than if you had just walked in an robbed the bank with a note,” Meredith said.

While the money lost in a bank robbery may only be a few thousand dollars, the losses from both internal and external fraud is often tens of thousands of dollars and taken over a period of months and years.

The punishment for bank fraud varies. The range of sentences was one month to four years for those charged and sentenced so far in the 2011 cases on just the bank fraud charges. A few had longer sentences because they also had other charges besides bank fraud.

One person also was acquitted and couple had their bank fraud charge dismissed as part of plea deals at sentencing.

Wellington Monroe Phillips II was sentenced to four years in prison for bank fraud for embezzling nearly $1.2 million from a Birmingham-based natural gas supplier.

Twice a month Phillips issued himself an unauthorized check from the corporate bank account held at First Commercial Bank. He would forge the name of the company’s owner on each check and submit them for payment.

Bank corporate security officers say banks have increased security as new fraud schemes surface to tap into bank accounts.

Dan Bailey, chief executive of the Alabama Bankers Association, said that bank customers should take it upon themselves to help secure their accounts, including checking their accounts daily. “Catch it before it goes too far,” he 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

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.


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