Former Raleigh Real Estate Entrepreneur James T. Webb Arrested on 50-Count Indictment Alleging Several Federal Crimes

September 15, 2012

The Federal Bureau of Investigation (FBI) on September 14, 2012 released the following:

“RALEIGH— The United States Attorney’s Office announced that the indictment of JAMES THOMAS WEBB, 51, was unsealed today in federal court. WEBB has been charged in a 50-count indictment which includes conspiracy to commit bank and wire fraud, in violation of Title 18, United States Code, Section 1349; 10 counts of bank fraud and aiding and abetting, in violation of Title 18, United States Code, Sections 1344 and 2; three counts of wire fraud and aiding and abetting, in violation of Title 18, United States Code, Sections 1343 and 2; and 36 counts of making false statements to influence banks on loans and aiding and abetting, in violation of Title 18, United States Code, Sections 1014 and 2. WEBB was arrested by federal agents on September 13, 2012 in Miami, Florida.

The Indictment charges that between 2002 and 2006, WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit. WEBB promised investors in multiple states quick, large, and safe financial gains by investing money with him. WEBB promised investors that he would use their money to purchase, renovate, and resell properties to first-time home buyers in various states, including North Carolina, Virginia, and Tennessee. WEBB caused investors to take out loans on properties that he and his companies had allegedly renovated.

The indictment further alleges that despite alleged philanthropic and humanitarian objectives, that WEBB carried out a fraud upon both the investors who gave cash to WEBB, and the banks and lenders who WEBB caused to disburse loan proceeds. According to the indictment, WEBB conspired with former attorney, Amy Robinson, to falsify closing statements associated with the loan transactions. It is alleged that the closing statements falsified various facts, including the amount of money paid to WEBB on the transactions. WEBB is also alleged to have conspired with a former appraiser, Larry Max McDaniel, and his associate, Jackie Gale Weaver, to falsify appraisal reports that were given to banks and lenders in connection with investor loans. The appraisal reports are alleged to have falsely stated that McDaniel had physically viewed the properties, when in fact he had not. The indictment also alleges that the properties sold to investors and financed by banks were not always completed or in the condition represented in the appraisal reports.

During the course of the alleged scheme, the indictment charges that WEBB lived lavishly, residing in a multi-million-dollar mansion, driving expensive vehicles, including a Bentley, traveling extensively, and otherwise paying himself handsomely. WEBB is alleged to have abruptly left North Carolina for Florida in 2004, where he continued to market his services under new company names.

According to the indictment, based upon WEBB’s statements and representations to investors, various individuals collectively invested millions of dollars with WEBB and his companies. Additionally, banks and lenders are alleged to have disbursed millions of dollars in loans, leaving investors holding millions in debt. The indictment alleges that WEBB left various neighborhoods in North Carolina and Virginia blighted with boarded up and dilapidated homes, many of which were ultimately demolished as uninhabitable.

Larry Max McDaniel, 69, pleaded guilty in federal court on June 11, 2012 to making false statements to federally insured financial institutions, and aiding and abetting. Jackie Gale Weaver pleaded guilty in federal court on September 21, 2011 to conspiracy to make false statements to federally insured financial institutions. Amy Robinson, 35, pleaded guilty in federal court on May 3, 2010 to conspiracy to commit mail, wire, and bank fraud.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

Investigation of this case is being conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General. Assistant United States Attorney William M. Gilmore is prosecuting the case.”

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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.



Jared Mitchell Rothenberger Indicted by a Federal Grand Jury Alleging Charges of Conspiracy to Commit Wire Fraud, Conspiracy to Commit Bank and Wire Fraud, Wire Fraud, Money Laundering, Monetary Transactions in Criminally Derived Property, and Bank Fraud

May 10, 2012

The Federal Bureau of Investigation (FBI) on May 9, 2012 released the following:

“Minneapolis Man Indicted for Mortgage Fraud in Connection with Burnsville Condo Project

MINNEAPOLIS— Earlier today in federal court in St. Paul, a 43-year-old Minneapolis man was indicted with allegedly defrauding mortgage lenders out of millions of dollars in connection with the sale of condominiums at Chateau Ridge in Burnsville. Jared Mitchell Rothenberger was specifically charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank and wire fraud, six counts of wire fraud, seven counts of money laundering, two counts of monetary transactions in criminally derived property, and one count of bank fraud. The indictment combines charges related to Chateau Ridge with those Rothenberger also faces in connection to the Cloud 9 Sky Flats development in Minnetonka. Rothenberger was originally charged in the Cloud 9 case on November 8, 2011.

The most recent indictment alleges that from August 24, 2006 through July 15, 2007, Rothenberger and others conspired to defraud mortgage lenders out of money by finding straw buyers to apply for mortgage loans to purchase units at Chateau Ridge. He and others then allegedly made misrepresentations to the lenders regarding the straw buyers’ financial situation, among other things. In some instances, he also reportedly provided straw buyers with funds for down payments, although his actions were never disclosed to the lenders. Furthermore, Rothenberger allegedly participated in the distribution of mortgage loan proceeds outside of actual property closings, again without informing the lenders. Some of the funds—or kickbacks—distributed in that manner amounted to hidden purchase-price discounts and were allegedly provided to the straw buyers. Kickbacks were also purportedly made to Rothenberger and others involved in the scheme in the form of “facilitator” fees or other bogus charges.

Rothenberger is accused of similar criminal activity in connection with the Cloud 9 Sky Flats condominium development in Minnetonka. That case involves more than 40 Cloud 9 units. In excess of $4.2 million was reportedly transferred to accounts for the purpose of paying kickbacks and otherwise sharing in the proceeds of the fraud scheme.

If convicted, Rothenberger faces a potential maximum penalty of 30 years for conspiracy to commit bank and wire fraud, 30 years for bank fraud, 20 years for each count of money laundering and wire fraud, 10 years for each count of monetary transaction involving criminally derived property, and five years for conspiracy to commit wire fraud. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Christian S. Wilson and Robert M. Lewis.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.”

US v. Jared Mitchell Rothenberger – Federal Criminal Indictment

18 U.S.C. § 1343

18 U.S.C. § 1344

18 U.S.C. § 1349

18 U.S.C. § 1956

18 U.S.C. § 1957

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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.


Former Loan Officer Sergio Martinez Indicted by a Federal Grand Jury with Bank Fraud, False Statement to Influence a Financial Institution, Wire Fraud, and Conspiracy to Commit Wire Fraud in an Alleged Mortgage Fraud Scheme

May 8, 2012

The Federal Bureau of Investigation (FBI) on May 7, 2012 released the following:

“Former Loan Officer and Resident of Tucson Indicted for Mortgage Fraud Scheme

TUCSON— Last week, a five-count indictment was unsealed. The indictment, which was returned by a federal grand jury on March 29, 2012, charges former loan officer Sergio Martinez, 35, of Tucson, with bank fraud, false statement to influence a financial institution, wire fraud, and conspiracy to commit wire fraud. Martinez was arrested on the indictment last month in Buffalo, New York.

The indictment alleges that Martinez participated in a scheme to defraud a financial institution in order to obtain financing. Although Martinez was not the listed loan applicant, he allegedly caused to be submitted a loan application that contained material false statements including: (1) a false representation that the loan applicant was self-employed; (2) a falsely inflated income; and (3) a false representation that no part of the down payment was borrowed. The indictment further alleges that another document submitted to the lender falsely represented that the borrower would provide $359,982.38 in cash to close the deal when, in fact, the borrower and Martinez received a separate loan that was used to provide most of that cash. These documents were allegedly provided to obtain $1.4 million in loans to purchase a $1.75 million home. After the financing was used to purchase the property, the home went into foreclosure due to lack of payments. The foreclosure resulted in a significant loss to the lender.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

A conviction for bank fraud, false statement to influence a financial institution, wire fraud, and conspiracy to commit wire fraud each carries a maximum penalty of 30 years in prison, a $1,000,000 fine, or both. In determining the actual sentence, Judge Collins will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. Judge Collins, however, is not bound by those guidelines in determining a sentence.

The investigation preceding the indictment was conducted by the Internal Revenue Servic-Criminal Investigation Division and the Federal Bureau of Investigation. The prosecution is being handled by the U.S. Attorney’s Office, District of Arizona, Tucson.”

US v Sergio Martinez – Federal Criminal Indictment

18 U.S.C. § 1014

18 U.S.C. § 1343

18 U.S.C. § 1344

18 U.S.C. § 1349

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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.


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.


Eric Elegado, Charmagne Elegado, Theodore Cohen, Minh Nguyen, Regidor Pacal, Alexander V. Garcia, Roman Macabulos, Ramin Lotfi, and Roderick Huerto Indicted for Allegedly Committing the Following Federal Crimes: Conspiracy, Wire Fraud, Money Laundering, and Criminal Forfeiture

February 23, 2012

The Federal Bureau of Investigation (FBI) on February 21, 2012 released the following:

“Local Real Estate Agent and Eight Other Industry Professionals Charged in Massive Mortgage Fraud Scheme That Caused at Least $15 Million in Losses

United States Attorney Laura E. Duffy announced the unsealing of an indictment today charging a local real estate agent, Eric Elegado, and eight other mortgage industry professionals—Charmagne Elegado, Theodore Cohen, Minh Nguyen, Regidor Pacal, Alexander V. Garcia, Roman Macabulos, Ramin Lotfi, and Roderick Huerto, with multiple counts of conspiracy, wire fraud, money laundering, and criminal forfeiture. According to court proceedings, these defendants engaged in a multi-million-dollar mortgage fraud scheme that targeted vulnerable, low-income immigrants in San Diego. All of the defendants were arraigned today in federal court before U.S. Magistrate Judge William McCurine, Jr.

According to the indictment, Eric Elegado owned and operated real estate and mortgage brokerage businesses in San Diego and employed Theodore Cohen, Minh Nguyen, Regidor Pacal, Alexander V. Garcia, Roman Macabulos, Ramin Lotfi, and Roderick Huerto. These defendants conspired together and with others to obtain mortgage loans for unqualified buyers by falsifying and assisting others in falsifying the employment and salary information on the loan documents. According to the indictment, Eric Elegado directed the mortgage loans to be processed through his wife, Charmagne Elegado, who was working at the subprime mortgage lender. In order to further the fraudulent scheme, the defendants allegedly created and caused others to create false financial records for the purpose of verifying income listed on the false loan applications, such as W-2s, bank statements, rental income statements, ownership records, and bank deposit documents. According to court proceedings, the defendants caused these fraudulent loan documents to be submitted to mortgage lenders in order to induce the lenders to loan more than $50 million in mortgage loans. As a result of their scheme to defraud, defendants and others caused the mortgage companies, lending institutions, and financial institutions to lose more than $15 million.

This case is being investigated by special agents with the Federal Bureau of Investigation. During today’s court proceedings, the government moved to detain Minh Nguyen without bail. A detention hearing is set for February 24, 2012, at 9:30 a.m., before Magistrate Judge William V. Gallo. A personal appearance bond in the amount of $75,000, secured by the signatures of two financially responsible adults, was set for defendant Charmagne Elegado. A bond in the amount of $100,000, secured by real property, was set for defendant Eric Elegado. A personal appearance bond in the amount of $50,000, secured by the signatures of two financially responsible adults, was set for defendants Alexander V. Garcia and Ramin Lotfi. A personal appearance bond in the amount of $35,000, secured by the signatures of two financially responsible adults, was set for defendants Roman Macabulos and Regidor Pacal. A bond in the amount of $50,000, secured by a corporate surety, was set for defendant Theodore Cohen.

The defendants are next scheduled to be in court before United States District Judge Anthony J. Battaglia for a motion hearing on March 28, 2012, at 2:00 p.m.

Criminal Case No. 12CR0404-AJB

DEFENDANTS

Charmagne Elegado Age: 47 Escondido, CA
Eric Elegado Age: 47 Escondido, CA
Theodore Cohen Age: 54 San Diego, CA
Minh Nguyen Age: 28 San Marcos, CA
Regidor Pacal Age: 51 San Diego, CA
Alexander V. Garcia Age: 38 San Diego, CA
Roman Macabulos Age: 38 San Diego, CA
Ramin Lotfi Age: 36 San Diego, CA
Roderick Huerto Age: 34 San Diego, CA

SUMMARY OF CHARGES
Count 1: Title 18, United States Code, Section 1349—Conspiracy to Commit Mail and Wire Fraud
Maximum penalties: 20 years’ imprisonment, $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss (whichever is greatest), $100 special assessment, three years of supervised release.

Counts 2-7: Title 18, United States Code, Section 1343—Wire Fraud
Maximum penalties per count: 20 years’ imprisonment, $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss (whichever is greatest), $100 special assessment, three years of supervised release.

Count 8: Title 18, United States Code, Section 1956(h)—Conspiracy to Commit Money Laundering
Maximum penalties: 10 years’ imprisonment, $250,000 fine, $100 special assessment, three years of supervised release.

Counts 9-12: Title 18, United States Code, Section 1957—Money Laundering
Maximum penalties per count: 10 years’ imprisonment, $250,000 fine, $100 special assessment, three years of supervised release.

INVESTIGATING AGENCY
Federal Bureau of Investigation

An indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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

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

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


David Foley Pleads Guilty to Conspiracy to Commit Mail and Wire Fraud, Conspiracy to Commit Bank Fraud

January 9, 2012

The Federal Bureau of Investigation (FBI) on January 9, 2012 released the following:

“Former Chief Technology Officer of San Jose Video Arcade Gaming Software Company Pleads Guilty to Conspiracy to Commit Mail and Wire Fraud, Conspiracy to Commit Bank Fraud

Manufactured and Sold Counterfeit Global VR Game Packs, Submitted False Information in Mortgage Applications To Secure More Than $3 Million in Loans From Countrywide Home Loans

SAN JOSE, CA—The former chief technology officer of Santa Clara, Calif., video game developer Global VR, and the former owner of NexTune Corporation, d/b/a UltraCade Technologies, pleaded guilty Friday to conspiracy to commit mail and wire fraud, and conspiracy to commit bank fraud, U.S. Attorney Melinda Haag announced. The charges were contained in separate indictments but consolidated for the guilty pleas.

David Foley, 46, of Los Gatos, Calif., admitted that, as charged in the first indictment, he manufactured thumb drives, known as “game packs,” containing video gaming software that could be loaded onto arcade video game machines made for the home market. Foley illegally produced the products from his home while working as the chief technology officer of Global VR, which had previously acquired all rights to produce and sell games under the UltraCade name. After producing the game packs, Foley sold the products to a co-defendant located in Milford, Conn., and agreed to sell the game packs to the public using packaging and advertisements that falsely represented the goods to have been genuinely manufactured by UltraCade. Foley thereafter received payment for the illegally manufactured game packs by mail and wire.

Foley further admitted that, as charged in the second indictment, he defrauded Countrywide Home Loans (now owned and operated by Bank of America) of mortgage and home equity line of credit loans in the amounts of $2,624,475 and $374,925. He did this by falsely claiming that he was still employed at Global VR. Foley had been fired from his job by the time the loan applications were submitted. Foley admitted that he instructed a co-defendant to contact Countrywide Home Loans to falsely confirm his continued employment, after his employment had been terminated and prior to receiving the funds.

United States District Court Judge Edward J. Davila allowed Foley’s continued release on a $100,000 bond and ordered him to return to court on April 30, 2011, at 9 a.m. for sentencing.

The maximum statutory penalty for conspiracy to commit mail fraud in violation of 18 U.S.C. § 1349 is 20 years in prison and a fine of $250,000 or twice the gross gain or loss, a mandatory special assessment and restitution. The maximum statutory penalty for conspiracy to commit bank fraud in violation of 18 U.S.C. §1349 is 30 years in prison, a mandatory special assessment, and a fine of $1 million 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.

Assistant U.S. Attorney Richard C. Cheng of the Computer Hacking and Intellectual Property (CHIP) Unit is prosecuting the case with the assistance of legal assistant Tracey Andersen. The prosecution is the result of a lengthy investigation by the Federal Bureau of Investigation.

Further Information:

Case #s: CR-09 00670-EJD and CR-11 00554-EJD”

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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 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.