FBI: “Chicago Defense Attorney Indicted for Perjury and Conspiracy to Obstruct Justice”

August 25, 2014

The Federal Bureau of Investigation (FBI) on August 21, 2014 released the following:

“James L. Santelle the United States Attorney for the Eastern District of Wisconsin announced today the indictment in the Northern District of Illinois of Attorney Beau B. Brindley (age: 36) and Marina Collazo (age: 30) of Chicago in connection with a scheme to present perjured testimony in the 2009 trial of United States v. Alexander Vasquez, in federal district court in Chicago.

Although the crime is alleged to have occurred in Chicago, the United States Attorney’s Office there has recused itself in the matter and it has been transferred to the United States Attorney’s Office for the Eastern District of Wisconsin, in Milwaukee. However, all legal proceedings in this case will take place in Chicago.

The indictment is based upon allegations that Mr. Brindley, a Chicago criminal defense attorney, caused Ms. Collazo to commit perjury in the trial of Mr. Vasquez, a Brindley client. The indictment contains five counts:

  • Count One charges both defendants with a conspiracy to obstruct justice through the presentation of false testimony, in violation of 18 U.S.C. § 371. The maximum possible penalty for this offense is a fine of not more than $250,000, imprisonment for not more than five years, or both, plus a mandatory $100 special assessment and up to three years of supervised release to follow any term of incarceration.
  • Counts Two through Four charge both defendants with perjury, in violation of 18 U.S.C. § 1623(a). The maximum possible penalty for each of those counts is a fine of not more than $250,000, imprisonment for not more than five years, or both, plus a mandatory $100 special assessment and up to three years of supervised release to follow any term of incarceration.
  • Count Five charges Mr. Brindley with obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2). The maximum possible penalty for this offense is a fine of not more than $250,000, imprisonment for not more than 20 years, or both, plus a mandatory $100 special assessment and up to three years of supervised release to follow any term of incarceration.

This case is being investigated by the Federal Bureau of Investigation. The case will be prosecuted by Assistant United States Attorneys Michael J. Chmelar and Mel S. Johnson.

The public is cautioned that an indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.”

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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.


Former McKinsey CEO Gupta pleads not guilty to insider-trading charges

October 27, 2011
Rajat K. Gupta
Image from The Washington Post

The Washington Post on October 26, 2011 released the following:

“By David S. Hilzenrath, Published: October 26

From Kolkata, India, Rajat K. Gupta rose to the heights of international business, leading the global consulting firm McKinsey & Co. and serving on the boards of companies such as Goldman Sachs, Procter & Gamble and the parent of American Airlines.

But on Wednesday, Gupta turned himself in at the New York office of the FBI, where he was fingerprinted, photographed and subjected to a DNA swab before going to court to face criminal charges that he participated in an insider trading scheme.

Gupta, 62, became the most prominent figure charged in a federal crackdown on insider trading that recently led to an 11-year prison sentence for his alleged co-conspirator, hedge fund billionaire Raj Rajaratnam.

The indictment alleges that Gupta divulged boardroom secrets to Rajaratnam, who then traded on them.

Gupta pleaded not guilty and was released. He was given until Nov. 11 to surrender his passport and post a $10 million bond secured by his Connecticut home.

Gupta’s attorney, Gary P. Naftalis, issued a statement saying that the charges “are totally baseless.”

“The facts in this case demonstrate that Mr. Gupta is innocent of any of these charges and that he has always acted with honesty and integrity,” Naftalis said.

Gupta had been under a cloud for months. The government declared him an unindicted co-conspirator during its prosecution of Rajaratnam, and shortly before Rajaratnam’s trial began, the Securities and Exchange Commission charged him administratively, laying out the allegations against him.

After losing a procedural battle, the SEC withdrew the administrative case in August, but on Wednesday it filed a civil suit against Gupta that paralleled the criminal charges.

According to the government, the conspiracy played out in 2008 and 2009. Sometimes, Gupta passed secrets to Rajaratnam, founder of Galleon Management, so quickly that his tips “could be termed instant messaging,” Janice K. Fedarcyk, assistant director in charge of the FBI’s New York office, said in a statement.

For example, on Sept. 23, 2008, as Wall Street teetered on the brink of collapse, Gupta participated by phone in a meeting in which the Goldman Sachs board approved a $5 billion infusion from Warren Buffett’s Berkshire Hathaway. At about 3:54 p.m., approximately 16 seconds after Gupta disconnected his phone from the Goldman call, his assistant phoned Rajaratnam and patched in Gupta, the indictment said. Gupta then told Rajaratnam about the Berkshire investment, the government said.

With two minutes to spare before the market closed, Rajaratnam then caused some of Galleon’s funds to buy Goldman shares, the government said. Goldman announced the deal with Berkshire after the market closed, and the next day Galleon sold the Goldman shares at an illegal profit of about $840,000, the government charged.

Similarly, in October 2008, Gupta and other Goldman directors were told that the Wall Street firm had lost almost $2 per share that quarter in what would be the first quarterly loss in Goldman’s history, the government said. Approximately 23 seconds after disconnecting from that call, Gupta called Rajaratnam, the indictment said. By selling Goldman shares, Galleon funds avoided millions of dollars of losses, the government said.

Entrusted with confidential information, Gupta “became the illegal eyes and ears in the boardroom for his friend and business associate,” Preet Bharara, U.S. attorney for Manhattan, said in a statement.

Naftalis, the defense lawyer, said that there were legitimate reasons for Gupta’s communications with Rajaratnam and that the accusations “are based entirely on circumstantial evidence.”

Rajaratnam was convicted largely on the basis of government wiretaps, and verbatim excerpts of secretly recorded calls have figured prominently in other recent insider trading cases. The Gupta indictment does not explicitly cite recordings of Gupta passing inside information to Rajaratnam.

But in a July 2008 call captured by the government, Gupta talked to Rajaratnam about a Goldman board discussion and a rumor that Goldman might try to buy a commercial bank, according to a transcript.

“This was a big discussion at the board meeting,” Gupta allegedly said, adding that it was a “divided discussion in the board.”

Gupta’s fall from the top of the business world followed a dramatic rise.

In a 1994 interview with Business Today, the native of India said his father was a journalist and freedom fighter who had been jailed many times, and his mother taught at a Montessori school. He went from the Indian Institute of Technology in Delhi to Harvard Business School, where his classmates were surprised to learn he earned excellent grades.

“I never said much, you know,” he told the interviewer.

At age 45, he was running McKinsey, a post he held from 1994 to 2003.

He served on a board of advisers to the dean of Harvard Business School and on a similar panel at MIT’s Sloan School of Management. He chaired an advisory panel for the Bill and Melinda Gates Foundation, and he became a special adviser to the secretary general of the United Nations.

Gupta’s trial is scheduled to begin in April.”

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

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.


Florida Man Arrested in “Operation Hackerazzi” for Targeting Celebrities with Computer Intrusion, Wiretapping, and Identity Theft

October 12, 2011

The Federal Bureau of Investigation (FBI) on October 12, 2011 released the following:

“LOS ANGELES—A man accused of targeting the entertainment industry by hacking into the personal e-mail accounts of celebrities was arrested today after being charged with a range of cyber-related crimes, announced André Birotte Jr., the United States Attorney in Los Angeles; and Steven Martinez, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.

Christopher Chaney, 35, of Jacksonville, Florida, was arrested this morning by FBI agents without incident. A federal grand jury in Los Angeles returned a sealed indictment yesterday charging Chaney with violations under Title 18 of the U.S. Criminal Code, including: accessing protected computers without authorization; damaging protected computers without authorization; wiretapping; and aggravated identity theft.

According to the indictment, which was unsealed this morning, Chaney used several aliases while illegally obtaining personal information of numerous celebrities through a series of computer intrusions. The aliases used include: “trainreqsuckswhat,” “anonygrrl,” and “jaxjaguars911.”

Investigators believe that Chaney used publicly available sources to mine for data about his female and male victims, all of whom are associated with the entertainment industry. Once Chaney gained access and control of an e-mail account, he would obtain private information, such as e-mails and file attachments, according to the indictment. In addition, investigators believe that Chaney was led to new victims by accessing the address books of victims whose computers he already controlled.

Throughout the 11-month investigation, agents identified over 50 victims whose accounts were illegally accessed by Chaney. The 26-count indictment details specific instances in which Chaney violated 11 of the victims, some of whom are identified by initials only. The victims are identified in the indictment as: Simone Harouche, Mila Kunis, Christina Aguilera, Scarlett Johansson, Renee Olstead, B.P., J.A., L.B., L.S., D.F., and B.G.

The indictment specifically charges Chaney with illegally accessing the computers, e-mail accounts and account settings of several victims, beginning November 13, 2010, through February 10, 2011. The indictment further alleges that Chaney knowingly caused the transmission of programs, information codes and commands, resulting in damage to e-mail servers, causing losses of at least $5,000 per instance. Chaney also used the identities of some of the victims to illegally access and control computers, according to the indictment. In other instances, Chaney allegedly intercepted and endeavored to intercept wire communications; specifically, e-mails and attachments.

In most cases, Chaney accessed the administrative settings on the victims’ accounts so that all of their e-mails would automatically be forwarded to a separate e-mail account Chaney controlled. This form of wiretapping allowed Chaney to continually receive victims’ e-mails even after a password had been reset.

Investigators determined that Chaney distributed some of the files he obtained illegally, including photos of celebrities, and offered them to various celebrity blog sites. Some of the illegally obtained files, including private photographs, were ultimately posted online as a result of Chaney’s alleged activities.

“While the case against Mr. Chaney involves celebrities who were targeted because of their fame, this case reminds us that we are all potential victims of computer hackers,” said United States Attorney André Birotte Jr. “Everyone can take simple steps that will help protect a computer system. Taking these steps will go a long way in protecting yourself from the financial and emotional costs of having someone intrude on your private life and potentially steal your identity.”

“As we highlight cyber awareness during the month of October, it’s important to remember that, although these victims appear to have been targeted based on their celebrity, similar methods may be used to illegally access any one of our computers,” said Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Strict computer security should be practiced when using smart phones, laptops, desktops, iPads, or any other device that provides Internet access.”

Chaney will have an initial appearance in United States District Court in Jacksonville, Florida. It is anticipated that the government will request that Chaney be removed to Los Angeles, the district in which he was charged, to face prosecution.

If convicted on all counts, Chaney faces a statutory maximum penalty of 121 years in federal prison. This investigation was conducted by the FBI. The charges against Chaney will be prosecuted by the United States Attorney’s Office.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.”

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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Viktor Bout – Federal Criminal Indictment II

November 16, 2010

Federal Criminal Defense Lawyer Douglas C. McNabb discusses Viktor Bout’s second federal criminal indictment.

Mr. Bout’s Indictment:
1.09-cr-01002-WHP

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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