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:

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Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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

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

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


Fourth Defendant, Bassam Yacoub Salman, Charged in an Alleged Insider Trading Scheme Involving Former Citigroup Investment Banker

September 20, 2011

The Federal Bureau of Investigation (FBI) on September 19, 2011 released the following:

“SAN FRANCISCO—A federal grand jury in San Francisco charged Bassam Yacoub Salman, 52, of Orland Park, Ill., with conspiracy and securities fraud relating to an insider trading scheme in which he made profits in excess of $1.1 million, United States Attorney Melinda Haag announced.

The indictment, which was unsealed today, stems from the insider trading scheme first charged in 2009 against Maher Fayez Kara, of San Carlos, Calif., a former investment banker at Citigroup Global Markets Inc. in New York; Maher Kara’s brother, Mounir Fayez Kara, also known as Michael F. Kara, of Walnut Creek, Calif.; and Emile Youssef Jilwan, of Pleasanton, Calif.

According to the indictment, Maher Kara misappropriated material, non-public information about confidential corporate acquisitions, financings and other transactions in New York, in violation of his fiduciary duty and duty of trust and confidence to Citigroup and its clients. He then tipped his brother, Mounir Kara, about the confidential transactions. Mounir Kara then tipped Salman, who is charged with trading on the material, non-public information in the securities four publicly traded biotechnology companies from 2005 through 2007.

Citigroup was one of the victims of the charged criminal conduct and has cooperated in the investigation conducted by the United States Attorney’s Office and the Federal Bureau of Investigation.

Salman was arrested by the FBI on Sept. 9, 2011, in Illinois and ordered to appear before Magistrate Judge Jacqueline Scott Corley in San Francisco today. After his court appearance, he was released on a $250,000 unsecured bond and ordered to surrender his passports. The defendant’s next court appearance is scheduled for Oct. 5, 2011.

The maximum statutory penalty for each count of securities fraud in violation of 15 U.S.C. § 78ff is 20 years and a fine of $5 million, plus restitution if appropriate. 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 United States Attorney Adam A. Reeves is prosecuting the case with the assistance of Christine Tian and Rayneisha Booth. The prosecution is the result of a long-term investigation by the FBI. The United States Attorney’s Office wishes to recognize the assistance of the Division of Enforcement of the SEC’s San Francisco Regional Office.

Please note, an indictment contains only allegations against an individual and, as with the defendants, Bassam Salman must be presumed innocent unless and until proven guilty.

Further Information:

Case Numbers CR 11-0625 CRB and CR 09-0417 EMC”

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

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

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

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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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