Attorney Among Four Defendants Indicted in Alleged $16.2 Million Mortgage Fraud Scheme Involving at Least 35 Residential Loans

June 5, 2012

The Federal Bureau of Investigation (FBI) on June 4, 2012 released the following:

“CHICAGO— Four defendants—an attorney, a loan originator, a mortgage broker, and a loan processor—were indicted for allegedly participating in a scheme to fraudulently obtain at least 35 mortgage loans totaling more than $16.2 million from various lenders, federal law enforcement officials announced today. The indictment alleges that the mortgages were obtained to finance the purchase of properties throughout Chicago and in suburban Country Club Hills by buyers who were fraudulently qualified for loans, while the defendants allegedly profited from fees they were paid and undisclosed payments they obtained.

All four defendants were charged with various counts of mail fraud and bank fraud in a nine-count indictment that was returned by a federal grand jury last Thursday. The indictment also seeks forfeiture of $16,218,050. The charges were announced today by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Thomas P. Brady, Inspector in Charge of the U.S. Postal Inspection Service in Chicago.

Hakeem Rashid—39, of Miami and formerly of the Chicago area, a licensed loan originator who was employed by two mortgage brokerage companies, including 1st Regent Mortgage Funding Inc.—was charged with four counts of mail fraud and five counts of bank fraud. Kareem Broughton, 39, of Chicago, a mortgage broker and the owner of 1st Regent, was charged with two counts of mail fraud and three counts of bank fraud. Marguerite Elise Dixon-Roper, also known as “Elise Dixon,” 46, of Darien, an attorney, was charged with one count of mail fraud and two counts of bank fraud; and Jada Elaine Lucas, aka “Sophia Youssef,” 52, of Chicago, a loan processor at 1st Regent and another brokerage, was charged with three counts of mail fraud and one count of bank fraud.

An arrest warrant was issued for Rashid. The other three defendants are scheduled to be arraigned at 9:30 a.m. Thursday before Magistrate Judge Geraldine Soat Brown in U.S. District Court.

Between 2005 and May 2008, all four defendants and others allegedly schemed to obtain the fraudulent mortgages by making false representations in loan applications, supporting documents, and HUD-1 settlement statements concerning the buyers’ income, employment, financial condition, source of down payments, and intention to occupy the property.

As part of the scheme, Rashid, Broughton, and Dixon-Roper allegedly recruited buyers to purchase properties and facilitated the buyers’ purchase of properties, knowing that they would be fraudulently qualified for mortgage loans. Rashid and Broughton allegedly paid buyers for purchasing properties, while concealing the payments from lenders. In addition, the defendants also allegedly either purchased properties, which were mostly scattered throughout the city, and/or refinanced existing mortgages in their own names, knowing that they were fraudulently qualified for the loans.

According to the indictment, Broughton received payment through 1st Regent in the form of brokerage fees on loans for buyers whom he knew were qualified based on false information submitted to lenders; Rashid received payment through 1st Regent and another company for originating mortgage loans for buyers whom he knew were not qualified; Dixon-Roper received payment for representing buyers and sellers at real estate closings, knowing that the buyers were not legitimately qualified borrowers; and Youssef received payment for processing loans through 1st Regent, knowing that she submitted false information to qualify buyers for the loans.

In addition, Rashid, Broughton, and Dixon-Roper allegedly obtained undisclosed payments through entities they controlled, including The Broughton Group, R&B Management, Hamaya Banco, and Dixon-Roper’s law firm. Rashid and Dixon also allegedly submitted false statements to lenders indicating that escrow money was being held by Dixon-Roper or her law firm. Instead, knowing that no escrow money was being held, Dixon directed the payment of money purportedly held in escrow to herself and Rashid, while concealing the true nature of the payments from lenders, the charges allege.

The government is being represented by Assistant U.S. Attorneys Stephanie Zimdahl and Erika Csicsila.

Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, and each count of mail fraud carries a maximum of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The charges are part of a continuing effort to investigate and prosecute mortgage fraud in northern Illinois and nationwide under the umbrella of the interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.

Since 2008, close to 200 defendants have been charged in federal court in Chicago and Rockford with engaging in various mortgage fraud schemes involving more than 1,000 properties and more than $280 million in potential losses, signifying the high priority that federal law enforcement officials give mortgage fraud in an effort to deter others from engaging in crimes relating to residential and commercial real estate.

The Financial Fraud Enforcement Task Force 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, to 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. For more information on the task force, visit: http://www.stopfraud.gov.”

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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.


Martin S. Kimber Indicted by a Federal Grand Jury Alleging Chemical Weapons Offenses

May 17, 2012

The Federal Bureau of Investigation (FBI) on May 17, 2012 released the following:

“Man Indicted for Chemical Weapons Offenses

Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today the indictment of Martin S. Kimber, 59, of Ruby, New York. Kimber is charged in three counts with violations of the chemical weapon statute (counts one and two), which prohibits individuals from possessing, stockpiling, or using a toxic chemical as a weapon; and with a violation of the consumer product tampering statute (count three).

The indictment alleges that in December 10, 2010 and December 23, 2010, Kimber received medical care at the Albany Medical Center and that on January 24, 2011, he wrote to complain about having to pay for his treatment. It further alleges that on February 22, 2011, the Albany Medical Center Associate Medical Director wrote back to explain why the bills were appropriate and discussed the outcome associated with the defendant having provided inaccurate information about his injury and his decision not to complete the care proscribed by his treating physician.

The indictment alleges that on March 2, 2012, Kimber spread mercury, a known toxic substance, throughout various areas of the Albany Medical Center cafeteria, including in and around food served to customers, and on and around heating elements use in food preparation. It further describes three previous instances, March 28, 2011, April 11, 2011, June 23, 2011, where mercury was spread around the hospital on days when New York State toll records establish the defendant traveled from his home in Ruby, New York and exited at the get-off for the Albany Medical Center. The indictment alleges that on March 2, 2012, Kimber’s activities were captured on hospital video surveillance cameras in the Albany Medical Center cafeteria— where mercury was subsequently found —including on food consumed by at least one patron. Canisters of mercury were subsequently found by law enforcement officers in Kimber’s home and car. The person who ate the contaminated food was subsequently treated in the hospital’s emergency room. An emergency chemical response team at the Albany Medical Center responded promptly to the mercury contamination on each occasion and removed it from the premises.

The defendant was arrested on April 25, 2012 and is in jail, being held in pretrial detention. On March 2, 2012, following a detention hearing, United States Magistrate Judge Andrew T. Baxter determined that Kimber poses a serious danger to the community and that no combination of release conditions could be established to permit him to be released without continuing to pose a danger to the community.

A complaint filed in support of an arrest warrant was unsealed on April 26, 2012. It alleged that a search warrant was executed at Kimber’s house and automobile. Besides the seizure of two canisters of mercury, the complaint further alleged that approximately 21 guns were removed from Kimber’s residence. Literature reflecting sympathy for domestic terrorism (The Turner Diaries) was observed during the search, which states on the cover page, “This book contains racist propagnda” and “The FBI said it was the blueprint for the Oklahoma City bombing. Searching officers further observed a Nazi swastika on a wall of Kimber’s home.

The two chemical weapons counts each contain a maximum possible term of life in jail and a fine of $250,000 or twice the gross loss to any victim. The consumer product tampering charge contains a maximum possible penalty of 10 years in jail and a fine of $250,000 or twice the gross loss to any victim.

Mercury is a known hazardous substance that has been very well-studied. Among other things, mercury is a human neurotoxin that kills nerve cells, can result in brain and lung damage, respiratory failure, ataxia, speech impairment, constriction of the visual field, hearing loss, and somatosensory change. Mercury is readily absorbed through unbroken skin, by intestinal absorption after ingestion, and by inhalation of vapors. It accumulates in the body and can cause damage to internal organs including kidneys.

The allegations in the Indictment and criminal complaint are mere accusations and all persons are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated by special agents of the Environmental Protection Agency, Food and Drug Administration-Office of Criminal Investigations, and Federal Bureau of Investigation. Assistance has been provided by the Towns of Albany and Ulster Police Departments. The case is being prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-448-0672.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

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


Federal Prosecutors, Defense Attorney Agree to Extend Deadline for Federal Indictment of Arlington Strip Club Owner

May 10, 2012

Star-Telgram on May 9, 2012 released the following:

“Prosecutors, defense attorney agree to extend deadline for indictment of Arlington strip club owner

BY PATRICK M. WALKER

FORT WORTH — Federal prosecutors and the attorney for the owner of an Arlington strip club who is accused of targeting Arlington Mayor Robert Cluck in a murder-for-hire plot have agreed to push back the deadline for an indictment.

Assistant U.S. Attorney Chris Wolfe and J. Warren St. John, who represents Flashdancer Cabaret owner Ryan Walker Grant, agreed to extend the deadline by 71 days to July 19, according to court filings. The filings say the two sides are conducting discovery as well as negotiations that could lead to a plea bargain.

Under the Speedy Trial Act, federal indictments must be filed within 30 days of the arrest. Federal agents detained Grant on April 9, meaning Wednesday would have been the deadline.

St. John declined to comment through his office. Wolfe did not immediately respond to a request for comment.

Mark Daniel, a Fort Worth attorney not related to the case, said the deadline extension isn’t surprising, given that a public official was involved and federal agents moved quickly to make an arrest.

“Due to the complexity and the seriousness of the case, it’s not entirely unexpected,” he said, emphasizing that he doesn’t know the details behind the move.

Hit-man accusation

Grant is accused of trying to hire hit men from Mexico through an intermediary to kill Cluck and Dallas attorney Tom Brandt, who represents Arlington in cases involving sexually oriented businesses.

The intermediary was an informant for the Drug Enforcement Administration.

FBI Special Agent Matthew Wilkins testified at a detention hearing April 20 that several days after Grant contacted the informant and expressed interest in having Cluck and Brandt killed, he gave a final green light April 9 to proceed with the slaying of Cluck.

“Let’s do the mayor. Let’s hit him tomorrow,” Wilkins testified that Grant told the informant.

After receiving Grant’s instructions, the informant left Grant’s home in Kennedale, and Grant never contacted him again, Wilkins said. FBI agents arrested Grant a few hours later.

U.S. Magistrate Judge Jeffrey Cureton ruled that Grant poses a flight risk and a threat to the community and ordered him held without bail.

When agents arrested Grant, they seized 22 guns, two bulletproof vests and nearly $150,000 in cash, Wilkins testified.

Club closed a year

Flashdancer, at Randol Mill Road and Texas 360 in north Arlington, has closed for a year under a settlement with the Texas attorney general’s office and the city in a nuisance lawsuit. In labeling the club a nuisance, city and state authorities cited the prevalence of drugs, prostitution and assaults.

Police Chief Theron Bowman has revoked the club’s sexually oriented business license on the grounds that Flashdancer filed a misleading application with the city and allowed rampant sexual contact between employees and customers. Grant wanted Cluck and Brandt killed because he felt they stood in the way of the reopening, according to an arrest warrant affidavit.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

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


San Bernardino Fugitive Wanted for Quadruple Homicide Returned to U.S. Today After Summer Capture in Mexico

December 31, 2011

The Federal Bureau of Investigation (FBI) on December 29, 2011 released the following:

“A fugitive wanted for a quadruple homicide in 2000 in the city of San Bernardino was returned to the U.S. today following his June capture in Tijuana by Mexican law enforcement officials working with the FBI’s Inland Regional Apprehension Team, announced Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office.

On June 21, 2011, Froyland Chiprez, 36, was taken into custody in Tijuana, Mexico, pursuant to a provisional arrest warrant. Chiprez remained in the custody of Mexican officials in Mexico City during extradition proceedings.

Agents assigned to the FBI’s Legal Attaché in Mexico escorted Chiprez to Los Angeles International Airport, where he was turned over to the custody of Riverside-based FBI agents and task force officers with IRAT.

Chiprez was wanted by the San Bernardino Police Department in connection with a quadruple gang-related homicide reported on 7/09/2000 in the city of San Bernardino. After an investigation by the San Bernardino Police Department, four subjects were identified and charged with murder. Three were subsequently arrested and convicted on various charges related to the crime. At the time of the murder, Chiprez was on parole in California for a 1994 conviction for involuntary manslaughter. A parolee at large warrant was issued by the California Department of Corrections and Rehabilitation on 7/17/2000. Based on that warrant, the San Bernardino Police Department requested assistance from IRAT and a federal warrant was then obtained on 9/5/2000 charging UFAC. Although a warrant for Chiprez was already in place at the time of the murder, Chiprez was charged in connection with the murder on 9/27/2001.

In 2010, the IRAT developed information as to the whereabouts of Chiprez in the Mexico. The San Bernardino District Attorney’s Office worked with IRAT to seek a provisional arrest warrant (PAW) for Chiprez, a Mexican citizen. The Mexican government issued the PAW on 7/11/2010.

It is anticipated that the United States government will dismiss the federal warrant charging Chiprez with unlawful flight to avoid confinement and Chiprez will remain in custody in San Bernardino County while he awaits prosecution for the state murder charges by the San Bernardino County District Attorney’s Office.

The FBI’s Inland Regional Apprehension Team includes members from the FBI, the Riverside Police Department, the San Bernardino Police Department and the Riverside County Sheriff’s Department.

The successful arrest and return of Chiprez was based on cooperation among IRAT members, the FBI’s Legal Attaché assigned to the United States Embassy in Mexico City, San Diego FBI Border Liaison officers; San Bernardino Police Department Homicide; and the Mexican federal police, Policia Federal Ministerial (PFM), formerly known as Agencia Federal de Investigaciones (AFI).

The return of Chiprez was funded by the United States government’s “Project Welcome Home,” which provides funding to assist in the transportation of FBI fugitives to the United States, where the repatriation by the host country occurs through deportation or extradition.

The FBI continues to work with local law enforcement to apprehend violent criminals charged with state crimes who then flee the jurisdiction interstate or internationally.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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To find additional federal criminal news, please read Federal 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 Gellad Indicted by a Federal Grand Jury on Sex Tourism Charges

September 7, 2011

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

“Canadian Man Indicted in Delaware on International Sex Tourism Charges

Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that a federal grand jury has returned an indictment charging David Gellad, age 43, of Rosemere, Quebec, Canada, with traveling to the United States to engage in sexual conduct with a 14-year-old female whom he met online. The three-count indictment charges Gellad with one count of enticement of a minor and two counts of travel with intent to engage in illicit sexual conduct, in violation of Title 18, U.S.C., Sections 2422 and 2423.

According to the indictment and other court documents, on two occasions between March and June 2011, Gellad flew from Montreal to Philadelphia International Airport and then traveled by car to pick the victim up near her Southeastern Pennsylvania residence. In March 2011, Gellad allegedly traveled from Montreal to Southeastern Pennsylvania, where he engaged in sexual conduct with the minor. In June 2011, Gellad allegedly traveled from Montreal to Pennsylvania and then drove the minor victim to a Marriott hotel in Newark, Delaware, where they engaged in sexual conduct. Since October 2010, Gellad had been carrying on an online relationship with the teenager through her iPod Touch, using instant messaging and photo sharing applications.

Law enforcement agents became aware of the alleged relationship shortly after the June encounter between Gellad and the teenager, by which point Gellad had returned to Canada. A federal criminal complaint and arrest warrant were filed under seal in early June 2011. On July 23, 2011, Gellad was arrested at the Highgate Springs Port of Entry, in Swanton, Vermont, as he attempted to re-enter the United States. He has been detained in federal custody since his arrest.

Gellad faces a mandatory minimum sentence of 10 years, to life, in prison on the child enticement charge. He faces a maximum sentence of 30 years in prison on the travel charges. He also faces a mandatory minimum sentence of five years, to life, of supervised release following any prison term. If convicted, he also will be required to register as a sex offender in any jurisdiction in which he lives, works or attends school.

This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, the Pennsylvania State Police, Federal Bureau of Investigation, Baltimore Field Office, and the University of Delaware Police Department.

Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.”

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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FBI Obtains Arrest Warrant for Former Washington Wizards Guard Javaris Crittenton For Unlawful Flight to Avoid Prosecution

August 29, 2011

The Los Angeles Times on August 29, 2011 released the following:

“The FBI’s Atlanta office on Monday obtained an arrest warrant for former Washington Wizards guard Javaris Crittenton, who is wanted in connection with an Aug. 19 shooting that left an Atlanta woman dead.

Atlanta police had obtained a murder warrant for Crittenton following the shooting of Julian Jones, but have been unable to track down the former Georgia Tech basketball star. The FBI warrant is for unlawful flight to avoid prosecution.

Authorities say Jones was walking with a group that included, according to police, the man Crittenton believed had robbed him of jewelry in April. Crittenton allegedly took shots in the man’s direction, but instead struck 22-year-old Julian Jones, a mother of four, in the leg with a bullet he fired from inside his black SUV.

“It appears Mr. Crittenton observed who he thought was the perpetrator walking down the street,” Major Keith Meadows told the Atlanta Journal Constitution. “It so happens Miss Jones was walking down the street at the same time.”

Jones died later in surgery, meaning Crittenton will likely face homicide charges.

Crittenton was a starting point guard at Georgia Tech during his only season and the first-round draft pick of the Los Angeles Lakers in 2007. He played for Memphis, Washington and Charlotte during a short run in the NBA.

In 2010, NBA Commissioner David Stern suspended Crittenton and Gilbert Arenas for the remainder of the season after the two drew guns on each other during an argument regarding a gambling debt. Arenas’ career picked back up with the Orlando Magic, but Crittenton has failed to latch on with a team.”

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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Jeffery Wayne O’Neil and His Son Nathaniel O’Neil Indicted by a Houston Federal Grand Jury with Mail Fraud and Wire Fraud

August 26, 2011

The U.S. Attorney’s Office Southern District of Texas on August 25, 2011 released the following:

“Houston Man and Son Indicted For Fraud

HOUSTON – Jeffery Wayne O’Neil, 63, of Houston, has been arrested following the return of an indictment charging him and his son, Nathaniel Chilo aka Nathaniel O’Neil, 21, with mail and wire fraud, United States Attorney José Angel Moreno announced today.

Jeffrey O’Neil was arrested last night by United States Secret Service agents without incident. He made his initial appearance before U.S. Magistrate Judge Mary Milloy and was released on a $50,000 bond. A warrant remains outstanding for the arrest of Nathaniel O’Neil. Anyone who has information regarding his whereabouts is asked to contact the United States Secret Service at 713-868-2299.

The 10-count indictment, returned under seal on Aug. 11, 2011, was unsealed today following the arrest of Jeffrey O’Neil. The father and son, both of Houston, are charged with six counts of mail fraud and four counts of wire fraud. Jeffery O’Neil operated various debt relief businesses in the Houston area under different names, including but not limited to J. O’Neil/Associates Inc., World Outlook, World Outlook Management and Universal Restoration, none of which were licensed by the Texas Office of Consumer Credit Commissioner, according to the indictment.

The indictment alleges a scheme allegedly perpetrated by the O’Neils between June 2005 and September 2010 which consisted essentially of a plan to obtain money from individuals throughout the United States by representing that in exchange for paying money for entering into various programs they offered, they could provide debt relief in the form of credit card debt, tax liens, mortgage foreclosure, judgments. The O’Neils allegedly used agents in various parts of the United States to solicit, communicate with and receive payments from individuals seeking debt relief and the O’Neils communicated with agents and individuals seeking debt relief by and through e-mails. The defendants allegedly falsely represented and caused others to falsely represent that debt relief would be obtained through the Federal Trade Commission, the Senate Banking Committee, the Office of the Comptroller of the Currency (OCC), through injunctive action, and through a program called the “Debt Reconciliation Program” or “Debt Relief Program,” referred to as “DRP.” According to the indictment, Jeffery O’Neil falsely represented and caused others to falsely represent that he worked with the Financial Crisis Inquiry Commission.

Additionally, the indictment alleges the scheme further involved the sending of emails to include an altered speech by Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System, which falsely include statements about a debt reconciliation proposal sponsored by World Outlook Management as well as a fraudulent calendar for the Judiciary Committee of U.S. House of Representatives. Also, the O’Neils allegedly created Fair Credit Investigation Company, an entity bearing the initials “FCIC,” the same as the Financial Crisis Inquiry Commission which was falsely represented as a debt relief program. The O’Neils allegedly caused individuals throughout the United States to send checks payable to the FCIC to an address in Houston, to obtain credit card debt relief. When, in actuality, according to the indictment, the majority of the funds were used for the O’Neils’ personal benefit.

The indictment also contains a notice of forfeiture seeking forfeiture of $617,000, the alleged proceeds from the illegal activity alleged in the indictment.

Each count of mail fraud and wire fraud carries a maximum penalty of 20 years imprisonment and a fine up to $250,000.

The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.”

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 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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