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 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.

Three Convicted on All Counts of Harboring Aliens and Importing Minor Girls for Prostitution

June 17, 2011

U.S. Attorney’s Office Southern District of Texas on June 16, 2011 released the following press release:

“McALLEN, Texas – A McAllen federal jury has convicted Juan Antonio Garcia-Garay, 31, Juan Ignacio Chavarria-Ontiveros, 26, and Antonio Martinez Jr., 38, on all counts charged against them arising from a conspiracy to harbor illegal aliens imported for purposes of prostitution, United States Attorney José Angel Moreno announced today. The Jury returned its verdicts late Wednesday afternoon after two hours of deliberation and three days of trial.

Garcia-Garay, of Rio Grande City, Texas, was found guilty of importing aliens for prostitution, conspiracy to harbor and harboring aliens, while Chavarria-Ontiveros, of Mexico, and Martinez, of Rio Grande City, were both convicted of conspiracy to harbor and harboring illegal aliens.

During trial, the jury heard testimony of a Rio Grande City officer that on March 16, 2011, during a traffic stop the officer encountered the driver, Garcia-Garay, and Chavirra-Ontiveros and a 13-year-old juvenile female as passengers. The officer learned that the juvenile was in the country illegally and contacted Border Patrol (BP). While asking routine questions of the unaccompanied minor, BP agents learned about the child being used for prostitution purposes. Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI) agents were contacted and their investigation identified the 13-year-old and two other females, ages 15 and 18, who were undocumented aliens who had been harbored at two apartments and a house in Rio Grande City. These juveniles testified that they had been prostitutes in Mexico and Garcia-Garay had asked them to come and work in the United States. They testified he coordinated their travel and that while they were at the apartments and house, they had sex with the defendants and other men. The girls were promised money upon their return to Mexico. Chavarria, who was armed, acted as a guard at the apartments always looking out the window and Martinez rented the apartments and lived in the home where the juveniles were harbored.

A fourth defendant, Jorge Eutacio Martinez-Mendoza, 46, previously pleaded guilty to the conspiracy to harbor charges and is awaiting sentencing.

All defendants have been in custody since their arrest where they will remain pending sentencing.

The case was investigated by ICE-HSI and is being prosecuted by Assistant United States Attorneys Kimberly Leo and Kristen Rees.”

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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