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.


Mohammad Nawaz Khan, Iquila Begum Khan, Mohammad Shahbaz Khan, Gurdev Kaur Johl, and Kewal Singh Arrested by the FBI in an Alleged $5 Million Fraud Scheme

May 2, 2012

The Federal Bureau of Investigation (FBI) on May 1, 2012 released the following:

“Five Arrested in Sutter and Yuba Counties for $5 Million Fraud Scheme

SACRAMENTO, CA— United States Attorney Benjamin B. Wagner announced that five individuals have been arrested in Sutter and Yuba Counties for their participation in a long-running unemployment and disability fraud scheme.

Mohammad Nawaz Khan, 56, and Iqila Begum Khan, 31, both of Live Oak; and Mohammad Shahbaz Khan, 56, Gurdev Kaur Johl, 67, and Kewal Singh, 74, all of Yuba City, were arrested today. They are scheduled to appear before U.S. Magistrate Judge Kendall J. Newman at 2:00 p.m. today. Also charged in the complaint, but not arrested is Mohammad Adnan Khan, 32, of Live Oak.

According to the criminal complaint, the defendants began forming a series of companies with the Employment Development Department in 1989. The most recent company was formed in 2011. All of these companies purported to be farm labor contractors that provided labor to harvest various agricultural crops in Sutter and Yuba Counties.

However, undercover operations by a number of confidential sources showed that these businesses were in fact selling wages to hundreds of individuals in Northern California. The defendants would charge an individual approximately $250 for $1,000 in wages. The purchaser, who never performed any work for the defendants’ companies, would then claim to be laid off and file for unemployment benefits, disability benefits, or both.

When interviewed by EDD, the individuals who claimed to have worked for these companies would oftentimes not know the location where they worked, or the name of their supervisor. Sometimes they would report earnings that greatly exceeded the agricultural norms for the area. Many of the employees reported by these companies were between 50 and 70 years old and claimed that their duties consisted of picking peaches and harvesting walnuts, physically demanding work.

According to the criminal complaint, in order to further the fraud, the defendants used the name “Mohammed Khan,” used each other’s business addresses, repeatedly hired and laid off each other, and continually changed the names of the businesses.

The investigation is ongoing in order to determine the full extent of the fraud. A preliminary analysis of EDD claim records has found more than 2,000 potentially fraudulent unemployment and disability claims and more than $5 million lost.

This case is the product of an extensive investigation by the Federal Bureau of Investigation, the United States Department of Labor, Office of Inspector General, and the Investigation Division of the California Employment Development Department. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

If convicted, the defendants face a maximum statutory penalty of 20 years in prison. The actual sentence, however, will be determined after conviction at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables The charges are only allegations. Each of the defendants listed is presumed innocent, unless and until proven guilty.”

US v. Khan et al – Federal Criminal Complaint

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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.


Two New York Men Charged with Allegedly Selling Fraudulent Oxycodone Prescriptions

February 21, 2012

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

“NEWARK, NJ—Two New York men made their initial court appearances today after being arrested by federal agents last night for allegedly operating an oxycodone distribution network using counterfeit medical prescriptions, U.S. Attorney Paul J. Fishman announced.

Jack E. Polo, (a/k/a “Spank”), 42, of Queens, N.Y., and Roland M. Sartori, 32, of Bellerose, N.Y., are each charged by complaint with one count of conspiring to distribute oxycodone. They were arrested last night at Sartori’s home by agents of the FBI. Both men made their initial appearances before U.S. Magistrate Judge Mark Falk in Newark federal court and were released on $50,000 unsecured bond, with their travel restricted to New York and New Jersey.

According to the criminal complaints:

Since at least November 2010, the defendants had access to blank prescription paper that was sent to a New York State medical facility. Using specialized printing equipment, they created oxycodone prescriptions in the names of fictitious patients. The defendants printed several different telephone numbers on the phony prescriptions and used a network of co-conspirators, posing as employees of various doctors’ offices, to answer calls to those numbers in case any pharmacies attempted to verify the prescriptions.

The conspiracy charge carries a maximum potential penalty of 20 years in prison and up to a $1 million fine.

U.S. Attorney Fishman credited special agents with the FBI under the direction of Special Agent in Charge Michael B. Ward, and the New York Police Department, for the investigation leading to today’s arrests.

The case is being prosecuted by Assistant U.S. Attorney Shana W. Chen of the Organized Crime/Gangs Unit in Newark.

The charges and allegations contained in the Complaint are merely accusations 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

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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.


New York State Assemblyman William F. Boyland, Jr. Charged with Alleged Bribery and Attempted Hobbs Act Extortion

November 30, 2011
William F. Boyd, Jr

William Boyland, Jr.
(photo by Gregory P. Mango)

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

Recordings Capture Boyland Soliciting More Than $250,000 in Bribes, Accepting Thousands in Bribes Solicited and Accepted Following Earlier Bribery Arrest

Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Janice K. Fedarcyk, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation, today announced the unsealing of a complaint charging New York State Assemblyman William F. Boyland, Jr. with soliciting more than $250,000 in bribes and accepting thousands of dollars of bribe money in exchange for performing official acts for the bribe payers.[1] Boyland was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Joan M. Azrack, at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The criminal complaint alleges the following:

Between August 2010 and June 2011, Boyland solicited and accepted a stream of bribes from a carnival promoter (“CW”) and two undercover FBI agents (“UC1” and “UC2”), whom Boyland believed to be out-of-state businessmen and real estate developers. In exchange, Boyland agreed to take official action to secure business opportunities for CW, UC1 and UC2.

Carnival Scheme: Boyland Takes Over $7,000 in Bribes

Starting in August 2010, Boyland, UC1 and CW met and discussed ways in which Boyland could assist CW and UC1 with CW’s carnival business.2 All the meetings were recorded. In explaining how he could help them secure carnival locations in his district, Boyland stated that he had the New York City Department of Housing Preservation and Development (“HPD”) “locked up,” and stated that “we got HPD . . . we’re there.” Boyland and UC1 also discussed ways to “compensate” Boyland for his assistance, including by funneling payments to Boyland through a non-profit organization controlled by Boyland or through payments disguised as fees to a consulting firm.

UC1 ultimately made payments to Boyland. The first was a $3,800 payment in the form of money orders to Boyland’s campaign account in October 2010. The second payment occurred in February 2011, in the form of a $3,000 check (where the payee line was left blank) and $600 cash. In that case, UC1 specifically told Boyland that he did not want the $3,000 check to be applied against the New York State campaign contribution limit of $3,800. Boyland replied, “Got it, got it, got it. Makes sense.” Despite this, the $3,000 check was ultimately made payable to and deposited into Boyland’s campaign account.

In return for these payments, Boyland told CW and UC1 that Boyland and his staff had engaged in discussions with governmental agencies to assist CW in obtaining leases and permits for his carnival business. In addition, at Boyland’s direction, Boyland’s staff provided UC1 with letters of support from Boyland, on his official State Assembly letterhead, on behalf of CW and the carnivals CW purported to be promoting.

Real Estate Scheme: Boyland Takes $7,000 Cash Bribe

After Boyland was charged with bribery in a separate case in the Southern District of New York on March 10, 2011,3 Boyland and a member of his staff contacted UC1 seeking a direct, personal payment of $7,000. In a recorded telephone call, Boyland told UC1 that he needed the money to “solidify some attorneys.” Boyland stated that he was willing to travel to Philadelphia for the money and that he wanted the payment in cash.

On or about March 25, 2011, UC1 met Boyland at his district office in Brooklyn. During that meeting, which was recorded by UC1, Boyland and UC1 discussed real estate development projects in Boyland’s district that Boyland had previously discussed with UC1 and UC2. UC1 made clear that the money he was going to give Boyland was coming from both him and UC2, and in response, Boyland stated, “We’ll do business.” UC1 then told Boyland that he and UC2 wanted state grant monies to help finance the proposed development projects. Boyland assured UC1 that the money was there and stated that his support was a “no brainer” because the projects are “right here at home.”

At the end of meeting, UC1 gave Boyland the $7,000 in cash, and stated: “Knowing that if you think you want to bring someone else onboard or knowing that you’ll be there politically for us is all that we’re looking for.” In response, Boyland made a “thumbs up” sign and affirmed that “the political thing will be fine in terms of just where we need to go because I’m thinking environmental and I’m thinking the two houses of the state and city. You know, the relationships are there.”

Approximately one week after Boyland took the $7,000 cash bribe, he showed UC1 and UC2 different properties in his district. In a recorded conversation, Boyland assured UC1 and UC2 that certain zoning changes requested by UC1 and UC2 in connection with developing the sites were “not a problem.” He emphasized that all the properties he was showing UC1 and UC2 were in his district, which “we have control over.” Boyland later reiterated this point: “Everything we’ve seen I’m in control of. You know, I’m the politician. I’m the guy who can make that move over on this end, so we know the folks that can pull the sort of triggers we’re looking for.”

Hospital Buy-Back Scheme: Boyland Solicits $250,000 Bribe

On or about April 29, 2011, during a recorded conversation in a hotel suite in Atlantic City, New Jersey, Boyland solicited a $250,000 bribe from UC1 and UC2. Boyland proposed a scheme which called for UC1 and UC2 to purchase a former hospital in Boyland’s district for $8 million, obtain state grant money to renovate the hospital, and resell it to a non-profit organization that Boyland claimed to control for $15 million. In exchange for the $250,000, Boyland promised that he would, among other things, arrange for the sale and take official action and use his influence to secure state grant money to allow UC1 and UC2 to renovate the hospital so that it could be sold to Boyland’s organization for a profit.

During this meeting, Boyland promised that he would facilitate any needed state grants and also promised that he would arrange for one of UC2’s purported investors to be awarded any demolition contracts related to the project. Boyland stated that “zoning won’t be an issue,” because he had “tons of friends” and knew “everybody on the Board” of the New York City Board of Standards and Appeals, which handles zoning issues.

Boyland further explained his desire to conceal his involvement in the bribery scheme. He stated, “I got a middle guy by the way . . . I gotta stay clean . . . I got a bag man . . .” Boyland also explained to UC1 and UC2 that he did not want to talk on the telephone about these activities and that he preferred in-person meetings: “I stopped talking on the phone awhile ago . . . I’m just saying there is no real conversation that you can have that, you know, especially with what we’re talking about. You can’t do that.”

About one month later, Boyland, a member of his staff, and an individual whom Boyland described as a “developer” took UC2 on a site tour of the hospital.

On or about June 7, 2011, Boyland met with UC1 and UC2 in a hotel room in Manhattan. The meeting was recorded. Boyland reiterated that he wanted to be paid $250,000. UC2 offered to pay Boyland $5,000 for each introduction to another person who would accept bribes in connection with the development project. Boyland rejected the suggestion, stating that the people whom Boyland planned to introduce to UC1 and UC2 were worth more than $5,000: “I’m not talking about $5,000 folks. I’m talking about . . . people that can actually get these projects done and that’s where we started off with. We started off, we didn’t start off with, we can go with somebody who knows someone. We not talking about those folks . . . . We talking about the man.”

“As detailed in the criminal complaint, the extent of the charged corruption is staggering,” stated United States Attorney Lynch.” The defendant had a strong political legacy, the trust of his community, and the privilege of serving it. Not content with these many benefits, the defendant is alleged to have auctioned the power of his seat in the Assembly to the highest bidder, for his own personal gain and to the potential detriment of the voters who elected him to office. Fortunately for his constituents and the people of New York, in this instance the “bidders” were working for the FBI. The message of this case is clear – we will utilize all available resources to protect the public’s right to government free of corruption.” Ms. Lynch stated that the government’s investigation is continuing.

FBI Assistant Director in Charge Fedarcyk stated, “The charges announced today are all the more astonishing in light of the fact that Boyland allegedly committed much of the criminal conduct after he had already been charged in another bribery case. Boyland was unaware that it was two undercover FBI agents with whom he was arranging quid pro quo deals, and to whom he insisted on speaking in person to avoid the recording of incriminating phone calls. Recording phone calls is not the only method the FBI has available to fight public corruption.”

If convicted, Boyland faces a maximum sentence of 30 years in prison.

The government’s case is being prosecuted by Assistant United States Attorneys Roger Burlingame, Carolyn Pokorny and Lan Nguyen.

The Defendant:

WILLIAM F. BOYLAND, JR.
Age: 41

1 The charges contained in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

2 As detailed more fully in the complaint, to obtain the permissions and/or permits necessary to operate carnivals in New York City, carnival businesses must obtain the support of local community boards and elected officials.

3 Boyland was acquitted of those charges on November 10, 2011.”

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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.


Federal Trial Juror Charged for Allegedly Soliciting Bribe

October 10, 2011

The Federal Bureau of Investigation (FBI) on October 7, 2011 released the following:

“Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John V. Gillies, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Italo Campagna, 55, a juror in an ongoing federal criminal trial, has been charged for soliciting a bribe in exchange for convincing fellow jurors to vote not guilty in a pending criminal case.

According to the complaint filed in federal court today, Campagna was a sworn trial juror in the federal criminal case of United States v. Arturo Marrero, pending in the United States District Court for the Southern District of Florida, Case No. 10-60244-CR-COOKE. Campagna allegedly approached the father of the defendant outside the U.S. Courthouse in Miami, Florida and stated that he had information about the case. Campagna gave the father a piece of paper with a telephone number on it, but did not identify himself by name or explain that he was a juror.

The complaint further alleges that later that afternoon, the defendant’s brother called Campagna and arranged to meet with him in Miami Beach to discuss the case. At that meeting, Campagna revealed to the brother that he was a juror in the case and that some of his fellow jurors were inclined to convict. Campagna offered to persuade other jurors to vote not guilty in exchange for a payment of between $50,000 and $100,000. The brother expressed skepticism at Campagna’s claims, and added that money was tight, that he would think about Campagna’s offer, and that he would get back to him the next day.

On October 5, 2011, the brother began to cooperate with the FBI and made a recorded telephone call to Campagna to follow up on his discussions of the day before. The brother asked whether Campagna was still willing to help influence the outcome of the case, and Campagna answered yes. The brother then proposed a meeting at the same time and place to discuss money and other details. Campagna agreed. The brother stated that he had been able to get some money together but wanted to negotiate a final price.

Later that day, the brother participated in a recorded meeting with Campagna near the same Miami Beach location. Campagna reiterated that he could influence the jury and prevent a guilty verdict. The brother and Campagna then began to negotiate over price, and eventually settled on $20,000, which is the amount the brother said that he had brought with him. Campagna followed the brother to his vehicle to obtain the cash payment. The brother then handed Campagna what appeared to be a bundle of cash in a brown paper bag. At that point, Campagna was arrested.

U.S. Attorney Wifredo A. Ferrer stated, “The credibility and public confidence in our criminal justice system hinge on the integrity of individuals serving as jurors. If that integrity is compromised, then so are our efforts to bring criminals to justice. This case should serve as a stern reminder of the consequences that follow a breach of a juror’s sworn duty to follow the law. We will prosecute these cases swiftly and vigorously.”

“Mr. Campagna put himself on the defendant’s seat by soliciting a bribe as a juror to fix the outcome of a trial,” said FBI Special Agent in Charge John Gillies. “He not only blatantly violated his oath, his actions put the integrity of our justice system in jeopardy.”

This case was investigated by the FBI-led Miami Area Corruption Task Force, which includes the City of Miami Police Department and the Hialeah Police Department and will be prosecuted by Assistant U.S. Attorney Brian K. Frazier of the Public Integrity, National Security, and Civil Rights Section of the United States Attorney’s Office.

A criminal complaint is only an accusation, and a 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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Colorado Couple Charged with Allegedly Operating $17 Million Ponzi Scheme

October 3, 2011

The Federal Bureau of Investigation (FBI) on September 30, 2011 released the following:

“TOPEKA, KS— A Colorado couple is charged in a federal criminal complaint unsealed today with operating a $17 million Ponzi scheme that lulled investors in 13 states with claims of big potential returns on investments in diamonds and trading international notes, U.S. Attorney Barry Grissom said today. The couple has been arrested in Atlanta and will be returned to face the charges in U.S. District Court in Denver.

Prosecutors from U.S. Attorney Barry Grissom’s office have been appointed as special counsel in the case.

Richard Dalton, 65, and Marie Dalton, 60, both of Golden, Colo., are charged with one count of conspiracy to commit mail fraud, wire fraud and interstate transportation of stolen funds. The complaint alleges the couple operated a company called Universal Consulting Resources LLC that defrauded investors with claims of guaranteed investment returns of 48 to 120 percent. In fact, the company operated as a Ponzi scheme in which investor moneys were commingled and used to pay out profits to early investors to create the false appearance to new investors that the investments were performing as promised.

The indictment alleges the Daltons used investor funds to pay $936,000 for their home in Golden, Colo., as well as to purchase a $35,000 Toyota Highlander and to make a $5,000 deposit for their daughter’s wedding.

The indictment alleges that when the Daltons learned they were under investigation by the Securities Exchange Commission they discontinued making payments to investors and falsely represented to investors that they could expect payments soon. They also misled investors with false claims that the company’s European trader was switching banks, that the company was liquidating a cache of diamonds to pay investors back, that a plane carrying diamonds had been forced to land in Amsterdam because three engines had gone out and that the company had discovered it was holding 18,000 fake diamonds.

“This investigation is not over as we are committed to following the money trail,” said Sean P. Sowards, IRS Criminal Investigation Special Agent in Charge. “We will continue to pursue the evidence wherever it leads.”

If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI, IRS-Criminal Investigations, and the Securities Exchange Commission investigated. Assistant U.S. Attorney Richard Hathaway and Assistant U.S. Attorney Christine Kenney are serving as Special Attorneys to prosecute the case.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.”

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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Yong Wang Indicted by a Manhattan Federal Grand Jury for Child Pornography

August 23, 2011

The Federal Bureau of Investigation (FBI) on August 22, 2011 released the following:

“Manhattan U.S. Attorney Charges Queens-Based Operator of 18 Chinese Language Child Pornography Websites

PREET BHARARA, the United States Attorney for the Southern District of New York, and JANICE K. FEDARCYK, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of an indictment charging YONG WANG for operating at least 18 Chinese language websites containing child pornography out of his home in Flushing, New York. WANG, who has allegedly operated the websites since at least 2007, made hundreds of thousands of dollars by selling website “memberships” to individuals who paid to view, access, post, and download graphic images of child pornography. All of the websites were in Chinese and advertised to Chinese-speaking individuals in China, the United States, and elsewhere. WANG, 26, was arrested by the FBI at his residence in Queens on June 23, 2011.

Manhattan U.S. Attorney PREET BHARARA stated: “Yong Wang allegedly exploited the global reach of the Internet to develop an international customer base for child pornography. Purveyors of child pornography victimize the most innocent and vulnerable among us, potentially scarring them for life. As today’s Indictment demonstrates, we are committed to shutting down child pornography websites and working with our law enforcement partners across the globe to prosecute and punish those responsible.”

FBI Assistant Director in Charge JANICE K. FEDARCYK stated: “The charges against Mr. Wang stem from a nine-month undercover FBI operation, dedicated to protecting the most innocent members of our society–-children. The crimes alleged include operating 18 websites where ‘members’ could pay for child pornography. Mr. Wang not only profited from these websites, but he also created a system for its members to post innocent images, perpetuating the abuse of children.”

According to the indictment returned today in Manhattan federal court and a complaint filed on June 20, 2011:

On the child pornography websites, which WANG maintained and operated out of his apartment, members could access numerous links to an extensive child pornography collection that included images and videos of children exposing their genitals, engaging in sexually explicit conduct with adults, and in sadistic or masochistic depictions. To access the websites, individuals had to purchase a “VIP membership” or accumulate a certain number of points. WANG charged customers $25 for a quarterly membership or $100 for a lifetime membership.

Undercover FBI agents registered for a VIP membership with WANG and gained access to one of the websites, which was titled (in Chinese) “Empire of the Young and Innocent Fragrances.” On the website, users were directed to different forums with links that were titled with descriptive names, such as “Young Young Empire,” “Young Girl Beauty Photos Military Region,” “Young Boy Movie Zone,” and “Exclusive Quality Young Girl Photos Set.” After WANG’s arrest, the FBI identified 17 additional websites maintained and operated by WANG containing child pornography, all in Chinese. In conjunction with his arrest, the FBI also seized two servers in Texas through which the websites and the related online payment processes operated. The websites have been dismantled.

WANG is a permanent resident of the United States who was born in China. He is charged with one count of advertising in connection with the sexual exploitation of children (count one), one count of distributing child pornography (count two), and one count of reproducing child pornography for distribution (count three). On count one, he faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison. On counts two and three, he faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison on each count.

Mr. BHARARA praised the FBI in New York for its outstanding work in investigating this case. He also thanked the Chinese Ministry of Public Security for their extensive cooperation and assistance.

The case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney ROSEMARY NIDIRY is in charge of the prosecution.

The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed 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 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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Leeanna Brooke Morgan, Social Security Administration Employee, Arrested on a Federal Criminal Complaint

July 21, 2011

The U.S. Attorneys Office Eastern District of Arkansas on July 20, 2011 released the following:

“WEST MEMPHIS SOCIAL SECURITY ADMINISTRATION EMPLOYEE ARRESTED ON FEDERAL COMPLAINT

Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Leeanna Brooke Morgan, age 30, of West Memphis, was arrested today on a Complaint charging her with knowingly transferring, without lawful authority, a means of identification of another person with the intent to commit or to aid and abet or in connection with any unlawful activity that constitutes a violation of federal law, or that constitutes a felony under any applicable state or local law and such transfer was in or affecting interstate commerce.

Morgan works as a service representative at the West Memphis Office of the Social Security Administration. The complaint alleges that Morgan accessed the Social Security database to obtain personal identifying information which she passed on to another person.

Morgan appeared before the Honorable J. Thomas Ray this afternoon for an initial appearance. She was released on her own recognizance. The case will be presented to the next grand jury for indictment.

“Government employees with access to personal identification information have a duty to the citizens of this Country to protect that information,” stated Thyer. “Identity theft is a serious crime. Along with our law enforcement partners, we will thoroughly investigate and prosecute those who engage in misuse of personal identifying information.”

A complaint contains only allegations. The defendant is presumed innocent unless and until proven guilty.

This investigation was conducted by the Social Security Administration – Office of the Inspector General and the U.S. Secret Service. Assistant U.S. Attorney Jana Harris is prosecuting the case for the United States.”

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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Former Citigroup VP Charged with Bank Fraud for Allegedly Embezzling More Than $19 Million

June 27, 2011

U.S. Attorney’s Office Eastern District of New York on June 27, 2011 released the following press release:

“Gary Foster, a former vice president in Citigroup, Inc.’s treasury finance department has been arrested on bank fraud charges arising from his embezzlement of more than $19 million. Foster was apprehended at John F. Kennedy International Airport Sunday morning when he arrived on a flight from Bangkok.[1]

The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.

The charges and arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Janice K. Fedarcyk, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.

According to the complaint, Foster transferred money from various Citigroup accounts to Citigroup’s cash account and then to his personal account at a different bank. Between July 2010 and December 2010, he allegedly caused approximately $900,000 to be moved from Citigroup’s interest expense account and approximately $14.4 million from Citigroup’s debt adjustment account to the bank’s cash account, and then caused the money to be wired out of Citigroup’s cash account to his personal account at another bank in eight separate wire transfers. The complaint further charges that Foster caused a fraudulent contract or deal number to be placed in the reference line of the wire transfer instructions to create the appearance that the transfers were in support of an existing contract.

“The defendant allegedly used his knowledge of bank operations to commit the ultimate inside job. We are committed to ensuring the integrity of the banking system and to prosecuting those who would undermine it for their personal gain,” stated United States Attorney Lynch. Ms. Lynch expressed her appreciation to Citigroup, which brought this matter to the attention of the FBI and the U.S. Attorney’s Office.

“The egregious behavior of those who would exploit our banking system for personal and criminal gain will not be tolerated. We remain committed to investigating and apprehending those who cheat the system,” said FBI Assistant Director-in-Charge Fedarcyk.

If convicted, the defendant faces a maximum sentence of 30 years’ imprisonment on the bank fraud charges.

The government’s case is being prosecuted by Assistant United States Attorneys Michael L. Yaeger and Karen Hennigan.

The Defendant:

GARY FOSTER
Age: 35

[1] The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.”

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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