Federal Mail Fraud Crimes – 18 U.S.C. § 1341

April 25, 2012

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FEDERAL CRIMINAL STATUTE FOR MAIL FRAUD – 18 U.S.C. § 1341

Title 18 of the United States Code Section 1341 (18 U.S.C. § 1341) (2012) states the following:

“Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.”

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STATUTE OF LIMITATIONS FOR MAIL FRAUD (2012)

18 U.S.C. § 3282(a) states:

“(a) In General.— Except as otherwise expressly provided by law, no person shall be prosecuted, tried, or punished for any offense, not capital, unless the indictment is found or the information is instituted within five years next after such offense shall have been committed.”

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FEDERAL JURY INSTRUCTIONS (2012)

First Circuit Criminal Jury Instructions for Mail Fraud

Third Circuit Criminal Jury Instructions for Mail Fraud

Fifth Circuit Criminal Jury Instructions for Mail Fraud

Sixth Circuit Criminal Jury Instructions for Mail Fraud

Seventh Circuit Criminal Jury Instructions for Mail Fraud

Eighth Circuit Criminal Jury Instructions for Mail Fraud

Ninth Circuit Criminal Jury Instructions for Mail Fraud

Tenth Circuit Criminal Jury Instructions for Mail Fraud

Eleventh Circuit Criminal Jury Instructions for Mail Fraud

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MAIL FRAUD WHITE PAPER

Mail Fraud White Paper

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CURRENT? CHECK THESE OUT:

18 U.S.C. § 1341

18 U.S.C. § 3282

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SIMILAR STATUTES:

18 U.S.C. § 1343 (Wire Fraud)

18 U.S.C. § 1344 (Bank Fraud)

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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

Federal Crimes – Appeal

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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 Prosecutors Charge John Heary, an Ohio Chiropractor, in an Alleged $1M Medicare and Private Insurance Fraud Case

April 5, 2012

The Republic on April 4, 2012 released the following:

“Federal prosecutors charge Ohio chiropractor in $1M Medicare and private insurance fraud case

THE ASSOCIATED PRESS

CLEVELAND — A northeast Ohio chiropractor has been charged with defrauding Medicare and private insurers out of more than $1 million, including orders for unneeded medical equipment and free dinner offers if patients would assist the alleged scheme.

Federal prosecutors in Cleveland announced the indictment Tuesday against 37-year-old John Heary, who most recently lived in Lodi (LOH’-dy) and had a practice in Medina (meh-DY’-nuh).

He was charged with 55 counts including health care fraud and paying kickbacks.

He allegedly offered patients the dinners or waived co-payments if they would come to his office and clear the way for the alleged billing fraud.

Heary’s attorney, Joseph Morse, declined comment Wednesday.”

US v. John Heary – Federal Criminal Indictment

18 U.S.C. § 1341 – Mail Fraud

18 U.S.C. § 1347 – Health Care Fraud

42 U.S.C. § 1320A-7B – Illegal Kickbacks

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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

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

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


Superseding Indictment Charges Former Owners of Delaware Trucking Company with Alleged Failure to File Taxes and with Conducting a $1.8 Million Fraud

March 30, 2012

The Federal Bureau of Investigation (FBI) on March 29, 2012 released the following:

“WILMINGTON, DE—Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that a superseding indictment was handed down yesterday by the federal grand jury charging Donald L. Dutton, Sr. and Vicki R. Dutton, of Ellendale, Delaware, with one count of conspiracy to defraud the Internal Revenue Service (IRS) by failing to file individual and corporate tax returns (18 U.S.C. § 371) and four counts of willful failure to file tax returns (26 U.S.C. § 7203). The federal grand jury had previously charged the defendants on September 6, 2011 with one count of conspiracy to commit mail fraud (18 U.S.C. § 1349) and five counts of mail fraud (18 U.S.C. § 1341).

According to the superseding indictment, the defendants conspired to defraud the IRS by failing to report approximately $1.8 million in taxable income that they earned between 2005 and 2008 as the owners and operators of trucking companies in Georgetown, Delaware called Little D. Trucking Co. Inc. and D. Dutton Trucking Co. Inc. In particular, the defendants’ allegedly filed no individual tax returns (Form 1040s) and no corporate tax returns (Form 1120s) on behalf of Little D. Trucking Co. Inc. with the federal government during this timeframe.

To conceal the income generated by the trucking companies, the defendants allegedly directed office staff to prepare false spreadsheets that inflated their business deductions. For example, the superseding indictment lists personal expenses such as jewelry, clothing, and child support, which the defendants categorized as business expenses on these spreadsheets. The defendants allegedly presented these spreadsheets to their accountant for tax preparation purposes.

The superseding indictment further charges that, between 2005 and 2009, the defendants failed to report to the Internal Revenue Service wages paid to the 15-22 truck drivers and office staff employed by their trucking companies.

The superseding indictment added the tax-related charges to prior allegations of mail fraud conspiracy and mail fraud, which involved a $1.3 million scheme to defraud Allens Family Foods (Allens). Allens was a poultry processing company based in Seaford and Harbeson, Delaware that declared bankruptcy this past June due to financial woes largely unrelated to the alleged scheme. Dutton Trucking hauled loads for Allens as an outside vendor. The superseding indictment alleges that the defendants billed Allens for trucking loads that were not actually hauled by Dutton Trucking. The Duttons allegedly paid a former Allens dispatch clerk a substantial cash kickback for her assistance in the fraud.

If convicted of the pending charges, the defendants face up to 20 years in prison on each count of mail fraud and mail fraud conspiracy and up to five years in prison for the conspiracy to defraud the IRS, in addition to possible fines and restitution. The four counts of willful failure to file tax returns are misdemeanors, each punishable by up to one year in prison.

United States Attorney Oberly stated, “To function, our federal and state governments rely upon citizens’ truly reporting their income to the Internal Revenue Service. Our office will vigorously prosecute those who seek to thwart their civic duties by failing to file returns or pay their just share.”

“The license to run a business is not a license to avoid paying taxes,” said Acting SAC Akeia Conner, IRS-Criminal Investigation, Philadelphia Field Office. “Mr. and Mrs. Dutton’s alleged misconduct, hiding income and having their business pay their purely personal expenses, cheated all Americans, since we all have to pay our fair share for the government services and protections that we enjoy.”

The case is the result of an investigation conducted by the Seaford, Delaware Police Department; the Federal Bureau of Investigation; and Internal Revenue Service-Criminal Investigation. The prosecution is being handled by Assistant United States Attorneys Ilana Eisenstein and Jamie McCall, District of Delaware. For further information, please contact AUSA Eisenstein at 302-573-6082 or AUSA McCall at 302-573-6079.

The charges in the indictment are only allegations, and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.”

US v Donald Lee Dutton, Sr. and Vicki R Dutton – Federal Criminal Indictment

US v Donald Lee Dutton, Sr. and Vicki R Dutton – Federal Criminal Superseding Indictment

18 U.S.C. § 371

18 U.S.C. § 1341

18 U.S.C. § 1349

26 U.S.C. § 7203

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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

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

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


Three Women Plead Guilty in Fraudulent “Money Cleansing” Scheme

September 7, 2011

The Federal Bureau of Investigation (FBI) on September 6, 2011 released the following:

“Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John V. Gilles, Special Agent in Charge, Federal Bureau of Investigation, announced that defendants Bridgette Evans, 32, of Broward County, Pollie Evans, 36, and Olivia Evans, 22, both formerly of Texas, pled guilty on Friday, September 2, 2011, to wire and mail fraud charges in connection with their participation in a “money cleansing” scheme, in violation of Title 18, United States Code, Sections 1343 and 1341.

Sentencing was scheduled for November 14, 2011 before U.S. District Judge William P. Dimitrouleas. At sentencing, the defendants face a maximum statutory term of imprisonment of 20 years on each count.

According to court documents and statements made in court, the defendants falsely represented to their victims that they had the power to detect the presence of evil spirits and get rid of these evil spirits and resulting illnesses through a religious cleansing. In this way, the defendants fraudulently induced the victims to send them thousands of dollars and expensive jewelry for the purported cleansings, promising to return the monies to them after the cleansings. In fact, however, the defendants did not return any of the victims’ monies.

U.S. Attorney Ferrer commended the investigative efforts of the FBI for their hard work in this matter. Mr. Ferrer also thanked the Royal Anguilla Police Force for their assistance. The case is being prosecuted by Assistant U.S. Attorney Jennifer Keene.”

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 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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Roxanne Janel Jones and Taj A. Isaiah Indicted by a Kansas City Federal Grand Jury for Conspiracy and Wire Fraud. Jones is also Charged with Mail Fraud and Aggravated Identity Theft.

August 12, 2011

The U.S. Attorney’s Office District of Kansas on August 11, 2011 released the following:

“Indictment: Adoption Fraud
Targeted Would-Be Parents For Cash, Gifts

KANSAS CITY, KAN. – A Kansas City woman and a man who allegedly posed as her boyfriend have been indicted on charges of running an adoption scam in which she pretended to be pregnant with twins and willing to let them be adopted in return for money and gifts, U.S. Attorney Barry Grissom said today.

The indictment alleges the defendants defrauded 14 couples who spent money hiring attorneys and adoption agencies, purchasing airline tickets, booking hotel rooms and making gifts they believed would pave the way for them to adopt.

Roxanne Janel Jones, 34, Kansas City, Mo., and Taj A. Isaiah, 28, Kansas City, Mo., are charged with one count of conspiracy and four counts of wire fraud. In addition, Jones is charged with three counts of mail fraud and one count of aggravated identity theft.

Jones initially was charged in a criminal complaint filed April 13, 2011, in U.S. District Court in Kansas City.

The indictment alleges Isaiah was an acquaintance of Jones who helped her with the scam by pretending at various times to be her husband, her boyfriend or her landlord. The indictment alleges the defendants defrauded couples from California, Georgia, Massachusetts, Minnesota, New York and Tennessee, as well as Bonner Springs, Kan., Olathe, Kan., Shawnee, Kan., Leavenworth, Kan., and Florence, Kan.

In one case, the indictment alleges, Jones contacted American Adoptions, an adoption agency in Overland Park, Kan., claiming to be pregnant with twin boys and willing to give them up for adoption. Jones told the company’s adoption specialist she needed help with rent and groceries. As a result, a couple in Minnesota wired $16,265 to an escrow account in Kansas City and the adoption agency began drawing from the account to make payments to Jones.

In another case, the indictment alleges, a California couple flew to Kansas City where they took Jones and Isaiah to dinner and bought Jones massages, a haircut, groceries and meals. When Jones sent them texts to say the twins had been born and could be picked up at the nursery at KU Medical Center, the hospital told the couple there was no record of Jones giving birth. When Jones tried to renew the talk of adoption, she told the couple at various times she had been diagnosed with a brain tumor and she had been injured in a car accident.

Upon conviction, the crimes carry the following penalties:
Conspiracy: A maximum penalty of 20 years in federal prison and a fine up to $1 million.
Wire fraud: A maximum penalty of 20 years in federal prison and a fine up to $1 million on each count.
Mail fraud: A maximum penalty of 20 years in federal prison and a fine up to $1 million on each count.
Aggravated identity theft: A mandatory two years consecutive to other sentences and a fine up to $250,000.

The Overland Park Police Department and the U.S. Secret Service investigated. U.S. Attorney Barry Grissom and Assistant U.S. Attorney Chris Oakley are prosecuting.

OTHER INDICTMENTS

A grand jury meeting in Kansas City, Kan., also returned the following indictments:

Craig Williams, 21, is charged with one count of possession with intent to distribute crack cocaine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred April 28, 2011, in Kansas City, Kan.

If convicted, he faces a penalty of not less than 5 years and not more than 40 years in federal prison and a fine up to $5 million on the possession with intent to distribute charge, and a penalty of not less than 5 years and not more than life and a fine up to $250,000 on the firearms charge. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

Jeffrey Whitmore, 37, Kansas City, Kan., is charged with one count of possession with intent to distribute marijuana, one count of possession with intent to distribute crack cocaine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred July 20, 2011, in Kansas City, Kan.

Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute marijuana: A maximum penalty of five years in federal prison and a fine up to $250,000.

Possession with intent to distribute crack cocaine: A maximum penalty of 20 years and a fine up to $1 million.

Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and not more than life and a fine up to $250,000.

Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.

The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

John B. Holmes, 34, is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute marijuana within 1,000 feet of Olathe North High School, one count of unlawful possession of a firearm after a felony conviction, and one count of maintaining a residence for the purpose of drug trafficking. The crimes are alleged to have occurred March 17, 2011, in Johnson County, Kan.

Upon conviction the crimes carry the following penalties:
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years and not more than life and a fine up to $250,000.

Possession with intent to distribute within 1,000 feet of a school: Not less than one year and not more than 10 years and a fine up to $50,000.

Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.

Maintaining a residence in furtherance of drug trafficking: Not less than one year and not more than 40 years and a fine up to $1 million.

The Olathe Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.

Jimmy A. Barnes, 41, Iola, Kan., and Stacy Lynn Burdine, 42, Iola, Kan., are charged with two counts of distributing methamphetamine and one count of possession with intent to distribute methamphetamine. In addition, Barnes is charged with one count of unlawful possession of a firearm in furtherance of a drug trafficking crime, one count of unlawful possession of a sawed off shotgun, and one count of unlawful possession of a firearm while a user of controlled substances. The crimes are alleged to have occurred in January and February 2011 in Allen County, Kan.

Upon conviction, the crimes carry the following penalties:
Distributing methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.
Possession with intent to distribute methamphetamine: A maximum penalty of 20 years and a fine up to $1 million.

Unlawful possession of a firearm in furtherance of drug trafficking: Not less than 10 years and not more than life and a fine up to $4 million.

Unlawful possession of a sawed off shotgun: A maximum penalty of 10 year and a fine up to $250,000.
Unlawful possession of a firearm by a user of controlled substances: A maximum penalty of 10 year and a fine up to $250,000.

The Kansas Bureau of Investigation investigated. Special Assistant U.S. Attorney Aaron Smith is prosecuting.

Leon Smith, 54, is charged with one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in June and November 2010 in Leavenworth, Kan.

If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. The FBI investigated. Assistant U.S. Attorney Scott Rask is prosecuting.

Raul Zapata-Martinez, 35, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found July 20, 2011, in Wyandotte County, Kan.

If convicted, he faces a maximum penalty of 20 years without parole and a fine up to $250,000. Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.

Manuel Amparan-Mendoza, a citizen of Mexico, is charged with three counts of possession and use of false documents and three counts of aggravated identity theft. The crimes are alleged to have occurred at various times in 2008, 2010 and 2011 in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of 10 years without parole and a fine up to $250,000 on each false document charge and a mandatory two years consecutive to any other sentence on each aggravated identity theft count. The Wichita Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Laura Velasquez-Galvan, 26, a citizen of Mexico, is charged with one count of possession of false documents, three counts of aggravated identity theft, one count of making a false statement on an I-9 Employment Eligibility Verification form, and one count of misusing a Social Security card. The crimes are alleged to have occurred in 2007 in Saline County, Kan.

Upon conviction, the crimes carry the following penalties:
Possession of false documents: A maximum penalty of 10 years in federal prison without parole and a fine up to $250,000.

Aggravated identity theft: A mandatory two years in prison to run consecutively to any other sentence on each count and a fine up to $250,000.

False statement on an I-9 form: A maximum penalty of five years without parole and a fine up to $250,000.
Misusing a Social Security number: A maximum penalty of five years without parole and a fine up to $250,000.

The Salina Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Michael E. Best, 46, Scammon, Kan., is charged with one count of distributing Hydrocodone within 1,000 feet of a public school and one count of possessing Hydrocodone within 1,000 feet of a public school. The crimes are alleged to have occurred in June and July 2011 in Cherokee County, Kan.

If convicted, he faces a penalty of not less than one year and not more than 20 years without parole and a fine up to $1 million on each count. The Cherokee County Sheriff’s Department and the Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Larry L. Lyons, 57, Wichita, Kan., is charged with one count of fraudulently receiving Social Security Disability Insurance benefits. The crime is alleged to have occurred Dec. 20, 2010, in Sedgwick County, Kan.

If convicted, he faces a maximum penalty of five years without parole and a fine up to $250,000. The Social Security Administration – Office of Inspector General and the Kansas Department of Revenue investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.”

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 extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List 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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Gregory Viola Arrested on a Federal Criminal Complaint Charging Him with Mail Fraud

August 12, 2011

The U.S. Attorney’s Office District of Connecticut on August 11, 2011 released the following:

“ORANGE RESIDENT CHARGED WITH DEFRAUDING INVESTORS

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that GREGORY VIOLA, 59, of Orange, was arrested today on a criminal complaint charging him with mail fraud. The charge stems from an alleged scheme to defraud investors of at least hundreds of thousands of dollars via a Ponzi scheme.

According to court documents and statements made in court, VIOLA operated an investment business in Orange. It is alleged that since as early as 2007, VIOLA engaged in a scheme to defraud multiple investors by not investing funds as he had represented. As part of the scheme, it is alleged that VIOLA promised his investors that their funds would be invested, and that they would receive a specified rate of return on the investments as well as the potential for the investment to appreciate. Rather than invest funds provided by investors, it is alleged that VIOLA engaged in a Ponzi scheme in which he used new investor funds to make payments to earlier investors. It is also alleged that VIOLA mailed investors fraudulent statements that falsely represented the amount of funds that the investors had on account.

The criminal complaint specifically alleges that VIOLA provided one investor with a purported E-Trade account statement representing that the investor had in excess of $300,000 on account with VIOLA. Subsequent investigation by law enforcement has revealed that this statement is false, and E-Trade has no record of an account in the investor’s name.

VIOLA voluntarily surrendered himself this afternoon and appeared before United States Magistrate Judge William I. Garfinkel in Bridgeport. He was released on a $100,000 bond, which is secured by two properties.

U.S. Attorney Fein and FBI Special Agent in Charge Mertz noted that the investigation into this alleged scheme is ongoing, and asked individuals who believe they may be a victim of this scheme, or anyone with information related to this scheme, to contact FBI Special Agent Wendy Bowersox at (203) 777-6311.

If convicted, of mail fraud, VIOLA faces a maximum term of imprisonment of 20 years.

U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. The defendant is entitled to have this matter presented to a grand jury and, in the event an indictment is returned, he is entitled to a trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Stamford Police Department. The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter.

In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.”

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 extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List 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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Rodney Riddle Indicted by a Cincinnati Federal Grand Jury for Mail Fraud (18 U.S.C. 1341), Wire Fraud (18 U.S.C. 1343) and Bank Fraud (18 U.S.C. 1344)

August 11, 2011

Cincinnati.com on August 11, 2011 released the following:

“Written by Dan Horn

Real estate agent indicted for mortgage fraud

Officials: Scheme may have cost many their homes

A real estate agent was [arraigned] Thursday with orchestrating a multimillion-dollar mortgage fraud scheme that authorities believe triggered dozens of foreclosures throughout Greater Cincinnati.

Rodney Riddle, 44, is accused in a federal indictment of mail fraud, wire fraud and bank fraud. The Sycamore Township man, who faces up to 30 years in prison if he is convicted, pleaded not guilty Thursday in U.S. District Court in Cincinnati.

The scheme described by prosecutors is similar to the type of mortgage scams that exploded in Greater Cincinnati and across the country in the years before the real estate market collapsed.

Federal prosecutors say Riddle persuaded dozens of people, including friends and fellow members of Zion Temple church in Avondale, to buy houses at inflated prices so he could collect lucrative fees.

They say the scheme ran from 2001 to 2006 during the height of the real estate boom and did not begin to unravel until the crash in 2008, when many of the homeowners fell into foreclosure.

“That’s when these schemes fall apart,” said Fred Alverson, spokesman for U.S. Attorney Carter Stewart.

Although prosecutors say the scheme resembles other mortgage frauds, they say this one differs in at least one respect: Many of the 59 properties involved are located close together, often on the same streets.

“Certainly, that would have a greater impact on a neighborhood,” Alverson said.

Prosecutors would not disclose the addresses because they have not yet been entered into evidence. Records list Riddle as an owner or co-owner of just two Hamilton County properties.

According to the indictment, Riddle and others filled out loan applications with false statements and lied about income and the amount of assets held by the prospective home buyers.

Prosecutors say Riddle also claimed that his home repair business, Quality Home Maintenance, had done extensive work on many of the houses. They say he then used bogus invoices for work he never did to justify a higher home sale price.

Riddle used money from the sale of the homes to buy more homes and made most of his money collecting fees as the real estate agent, prosecutors say. The case was investigated by the FBI and postal inspectors.

Both Riddle and his lawyer declined comment.

Alverson said most of the buyers got into trouble when their adjustable rate mortgages shot up after the housing market crashed. Many had put little or no money down and could not afford the higher payments.

Prosecutors say almost all of the properties have been foreclosed, for a total loss of at least $2.6 million on the original $7 million in loans.

The indictment indicates others assisted Riddle, but it identifies them only as “close business associates.”

“Obviously, when you have a scheme like this, it’s not a one-person operation,” Alverson said.

But he said no charges are expected against anyone else. He would not comment when asked whether anyone got a deal with prosecutors in exchange for their cooperation.

Judge Karen Litkovitz accepted Riddle’s not guilty plea Thursday and allowed him to remain free pending his trial.”

Attached is Rodney T. Riddle 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 extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List 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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Tamara Lanz Moon Indicted by a Federal Grand Jury in Six Counts of Mail Fraud Alleging She Stole From Her Clients at Citigroup

June 30, 2011

U.S. Attorney’s Office Northern District of California on June 29, 2011 released the following press release:

Former Citigroup Employee Allegedly Stole A Total Of More Than $800,000 From More Than 20 Clients

SAN FRANCISCO – Today agents from the Federal Bureau of Investigation arrested Tamara Lanz Moon based on charges that she stole hundreds of thousands of dollars from her clients at Citigroup, United States Attorney MELINDA HAAG announced. On June 23, 2011, a federal grand jury in San Francisco indicted Moon on six counts of mail fraud, and that Indictment was unsealed this morning after Mooon’s arrest.

According to the Indictment, Moon, 43, formerly of Redwood City and now of Fremont, worked for Citigroup from 1996 until 2008. During that time, she was registered as a General Securities Representative, and she held both a Series 7 and a Series 63 license from the Financial Industry Regulatory Authority. At Citigroup, Moon’s duties included executing trades for brokers and handling much of the paperwork related to certain clients who had investment accounts with Citigroup.

According to the Indictment, Moon operated a scheme through which she stole a total of more than $800,000 from more than 20 of Citigroup’s clients. Moon allegedly falsified account records, forged client signatures, created fake “letters of authorization” to divert client funds, and made unauthorized trades in client accounts. According to the Indictment, Moon used the proceeds of her scheme to remodel her home, to pay mortgages on properties she owned, to pay her credit card bills, to pay down her personal home equity line of credit, and to invest in real estate.

After she was arrested this morning, Moon appeared in Court and was arraigned on the Indictment. She was released on bail and ordered to appear before United States District Court Judge William H. Alsup on July 5, 2011, at 2:00 p.m.

The maximum statutory penalty for each count of mail fraud, in violation of Title 18, United States Code, Section 1341, is 20 years in prison, a fine of $250,000, three years of supervised release, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Doug Sprague and Robin Harris are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Financial Industry Regulatory Authority.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Ms. Moon must be presumed innocent unless and until proven guilty.

Further Information:

Case #: CR 11-0404 WHA”

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

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List 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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Palm Beach Owner of Three Precious Metals Firms Charged in an Alleged $25 Million Precious Metals Investment Scheme

June 29, 2011

U.S. Attorney’s Office Southern District of Florida on June 28, 2011 released the following press release:

“Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Henry Gutierrez, Postal Inspector in Charge, United States Postal Inspection Service, and J. Thomas Cardwell, Commissioner, State of Florida’s Office of Financial Regulation, announced that Jamie Campany, 47, of Palm Beach County, has been charged in a Criminal Information with multiple counts of mail and wire fraud. The Information charges Campany with five counts of mail fraud and four counts of wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343, respectively. Campany is scheduled to make his initial appearance in court before U.S. Magistrate Judge Lurana S. Snow tomorrow at 11:00 AM in federal court in Fort Lauderdale.

According to the Information, Campany was the owner of three investment firms specializing in purported gold, silver, platinum, and palladium bullion purchases on behalf of individual clients. Among his companies were Global Bullion Exchange, LLC (“Global”), in Lake Worth, Florida, and various affiliated licensee businesses throughout Palm Beach, Broward and Miami-Dade counties and other locations outside of Florida. In addition to Global, Campany owned and operated two predecessor firms, Barclay Trading Group, Inc. (“Barclay”) and The Bullion Group, Inc., both with offices in West Palm Beach.

As alleged in the Information, Campany’s three businesses conducted a sophisticated telemarketing operation to solicit investors to purchase precious metal bullion using purported “leverage” financing. These same investors were led to believe that they would need only to provide a fraction of the total cost of the purchased metals, with the remainder of the purchase price to be covered by margin-type financing, which would purportedly be extended to the investor by a purported “clearing firm.”

As further detailed in the Information, from about September 2006 to April 2007 when Barclay was succeeded by Global, the purported “clearing firm” with which Barclay had initially associated began delaying and ultimately ignoring requests by Barclay’s customers to sell their precious metals investments. As a result, the unsatisfied clients began to complain and threatened Barclay with litigation. In addition, the clearing firm’s failure to sell the clients’ holdings left Barclay insolvent.

As further alleged in the Information, in an attempt to prevent further complaints, litigation, and possible governmental enforcement action, Barclay began to satisfy its clients’ requests for liquidation of their investments by making payments to these clients using funds it had received from newer investors. After Global succeeded Barclay, Global continued this same Ponzi strategy. Global thereafter used Diversified Investment Group, Inc. (“Diversified”), a shell company controlled by defendant Campany, as its purported “clearing firm.” In fact, however, the Information alleges that no bullion was purchased, even though clients paid substantial commissions and fees totaling approximately 18% of the total purported value of the metal allegedly purchased.

According to the Information, Campany also misrepresented to the investors that their holdings had been financed through so-called “margin” credit. Thus, the investors were charged substantial interest on these non-existent “loans” and were subjected to periodic false “margin calls” during market declines. A margin call required investors to supply additional funds upon demand to increase their account equity levels. Moreover, investors who could not comply with such “margin calls” were informed that their investment positions had been forcibly liquidated and taken by Diversified as a secured creditor.

In a recent litigation filed in Miami-Dade Circuit Court by a court-appointed assignee, it is estimated that more than 1,400 investors were defrauded by Campany’s scheme out of more than $25 million.

Campany faces a maximum sentence of twenty years imprisonment and a maximum $250,000.00 fine for each of the Information’s nine counts.

Mr. Ferrer commended the investigative efforts of the FBI, U.S. Postal Inspection Service and Florida’s Office of Financial Regulation. In addition, Mr. Ferrer thanked the Commodity Futures Trading Commission and National Futures Association for their assistance in this case. The case is being prosecuted by Assistant U.S. Attorney Peter B. Outerbridge.

An Information is only an accusation, and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.”

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

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List 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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Federal Mail Fraud Crimes

January 6, 2011

Douglas McNabb, federal criminal defense attorney, discusses in layman’s terms federal mail fraud crimes.

18 U.S.C. § 1341 (As of January 1, 2011)
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

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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