“Sentencing Commission in sweeping review of prison terms for drug dealers”

August 16, 2013

The Guardian on August 15, 2013 released the following:

By: Dan Roberts in Washington

“The US Sentencing Commission has voted unanimously to begin a sweeping review of federal sentences for drug dealers in a move that could herald long-awaited reductions in America’s prison population.

Just days after attorney general Eric Holder called for a new approach to the so-called “war on drugs”, the commission met in Washington to agree a new policy priority that potentially goes far further than the Department of Justice can in lowering sentences.

As anticipated, the independent government agency, which issues sentencing guidelines to federal judges, will now spend the next few weeks reviewing its “drug quantity table” – the grid that determines prison lengths for dozens of different categories of offence – before publishing new recommendations in January.

A reduction in sentencing guidelines could still be blocked by Congress, but Holder’s speech on Monday has coincided with a new mood of reform in Washington that reverses decades of political pressure to increase penalties for drug dealers. His comments were welcomed by Senate judiciary committee chair Patrick Leahy and leading Republicans such as senator Rand Paul.

Currently the guidelines in the commission’s drug quantity table can result in first-time offenders facing sentences of 19 to 24 years, with no parole, for possession of the maximum quantities of heroin, crack or methamphetamine. Even dealers caught with 100g of cocaine can face between 27 and 33 months, according to the table.

A number of specific offences are also subject to mandatory minimum sentences prescribed by Congress, although Holder instructed US prosecutors on Monday to begin circumventing such automatic terms by changing the way they bring charges.

The seven commissioners who voted on the sentencing panel, including five senior judges, are now thought likely to go much further than this by formulating across-the-board changes to the recommended sentences.

Speaking afterwards, Dabney Friedrich, a former associate counsel in the Bush White House who sits on the commission, told the Guardian she thought that pressure in Congress to control the cost of the US prison system would be a key factor in ensuring political support for such a move.

The Department of Justice also issued a supportive statement on Thursday, which welcomed the commission’s progress.

“As the attorney general expressed earlier this week, we think there is much to be done to improve federal sentencing and corrections,” said DOJ official Jonathan Wroblewski. “Moreover, we think the US Sentencing Commission has a very big role to play in shaping that reform.”

In a statement issued after its meeting, the commission noted that drug offenders account for nearly half of all federal inmates, and that “an adjustment to the drug quantity tables in the sentencing guidelines could have a significant impact on sentence lengths and prison populations.”

“With a growing crisis in federal prison populations and budgets, it is timely and important for us to examine mandatory minimum penalties and drug sentences, which contribute significantly to the federal prison population,” added Judge Patti Saris, chair of the commission.

“The Commission is looking forward to a serious and thoughtful reconsideration of some of the sentencing guidelines which most strongly impact the federal criminal justice system,” she said. “I am glad that members of Congress from both parties and the Attorney General are
engaged in similar efforts.”

The Commission also pledged to work with Congress to reduce the “severity and scope of mandatory minimum penalties and consider expanding the ‘safety valve’ statute which exempts certain low-level non-violent
offenders from mandatory minimum penalties”. It will pass its final amendments to Congress in May.

Political reaction to the recent sentencing developments has been broadly positive. Senator Leahy said was pleased at Holder’s call for a review of mandatory minimum sentences.

Although he believes long sentences are appropriate in some cases, but the veteran Democrat said it believes judges should be given more flexibility rather than relying on mandatory requirements.

Others have expressed concern however at the new mood sweeping Washington.

William Otis, a former federal prosecutor at Georgetown University, said stiffer sentences in recent decades had contributed to lower crime rates.

“Two generations ago, in the 1960s and 1970s, our country had the wholly discretionary sentencing system Holder admires. For our trouble, we got a national crime wave,” he wrote in a USA Today op-ed.

“We have every right to instruct judges that some offenses are just too awful to allow an overly sympathetic jurist to burst through a congressionally established floor.””

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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.


“Attorney General, Manhattan U.S. Attorney, and FBI Assistant Director in Charge Announce Charges Against Two Derivatives Traders in Connection with Multi-Billion-Dollar Trading Loss at JPMorgan Chase & Company”

August 15, 2013

The New York Times on August 14, 2013 released the following:

Defendants Hid More Than Half-a-Billion Dollars in Losses Resulting from Derivatives Trading in JPMorgan’s Chief Investment Office; a Third Trader, Bruno Iksil, Entered a Non-Prosecution Cooperation Agreement

Eric Holder, the Attorney General; Preet Bharara, the United States Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced the unsealing of criminal complaints against Javier Martin-Artajo and Julien Grout for their alleged participation in a conspiracy to hide the true extent of losses in a credit derivatives trading portfolio maintained by the Chief Investment Office (CIO) of JPMorgan Chase & Company (JPMorgan). Martin-Artajo served as a managing director and head of Credit and Equity Trading for the CIO, and Grout was a vice president and derivatives trader in the CIO.

Attorney General Eric Holder said, “Our financial system has been hurt in recent years not just by risky bets gone bad but also, in some cases, by criminal wrongdoing. We will not stop pursuing those who violate the public trust and compromise the integrity of our markets. I applaud U.S. Attorney Bharara, his colleagues in the Southern District of New York, and all of our partners on the President’s Financial Fraud Enforcement Task Force for their longstanding commitment to combating all forms of financial fraud. And I pledge that we will continue to move both fairly and aggressively to bring the perpetrators of financial crimes to justice.”

Manhattan U.S. Attorney Preet Bharara said, “As alleged, the defendants, Javier Martin- Artajo and Julien Grout, deliberately and repeatedly lied about the fair value of billions of dollars in assets on JPMorgan’s books in order to cover up massive losses that mounted month after month at the beginning of 2012, which ultimately led JPMorgan to restate its losses by $660 million. The defendants’ alleged lies misled investors, regulators, and the public, and they constituted federal crimes. As has already been conceded, this was not a tempest in a teapot but rather a perfect storm of individual misconduct and inadequate internal controls. The difficulty inherent in precisely valuing certain kinds of financial positions does not give people a license to lie or mislead to cover up losses; it does not confer a license to create false books and records or to make false public filings. And that goes double for handsomely paid executives at a public company whose actions can roil markets and upend the economy.”

FBI Assistant Director in Charge George Venizelos said, “The complaints tell a story of a group of traders who got in over their heads, and to get out, doubled down on a series of risky positions. In the first quarter of 2012, boom turned to bust, as the defendants, concerned about losing control to other traders at the bank, fudged the numbers on their daily book and in some cases completely made them up. It brought a whole new meaning to ‘cooking the books.’”

In a separate action, the U.S. Securities and Exchange Commission (SEC) announced civil charges against Martin-Artajo and Grout.

According to the allegations in the criminal complaints unsealed today in Manhattan federal court:

JPMorgan’s CIO is a component of the bank’s Corporate/Private Equity line of business, which, according to the bank, exists to manage the bank’s excess deposits—approximately $350 billion in 2012. Since approximately 2007, the CIO’s investments have included a so-called Synthetic Credit Portfolio (SCP), which consists of indices and tranches of indices of credit default swaps (CDS). A credit default swap is essentially an insurance contract on an underlying credit risk, such as corporate bonds. CDS indices are collections of CDSes that are traded as one unit, while CDS tranches are portions of those indices, usually sliced up by riskiness.

Under U.S. Generally Accepted Accounting Principles (GAAP) and according to JPMorgan policy, CDS traders were required to value the securities in their portfolios on a daily basis. Those values, or “marks,” became part of the bank’s daily books and records. Because CDS indices and tranches are not traded over an exchange, traders are required to look to various data points in order to value their securities, such as actual transaction prices, price quotations from market makers, and values provided by independent services (such as Totem and MarkIT). JPMorgan’s accounting policy, which used the same methodology employed by the independent services, provided that the “starting point for the valuation of a derivatives portfolio is mid-market,” meaning the mid-point between the price at which market-makers were willing to buy or sell a security. Through about January 2012, CIO traders generally marked the securities in the SCP approximately to this mid-point, which they sometimes referred to as the “crude mid.”

The SCP was extremely profitable for JPMorgan—it produced approximately $2 billion in gross revenues since its inception—but in the first quarter of 2012, the SCP began to sustain consistent and considerable losses. From at least March 2012, Martin-Artajo and Grout conspired to artificially manipulate the SCP marks to disguise those losses. They did so, among other reasons, to avoid losing control of the SCP to other traders at JPMorgan.

Although Martin-Artajo pressured his traders, including Grout, to “defend the positions” in early 2012 by executing trades at favorable prices, the SCP lost approximately $130 million in January and approximately $88 million in February. In March 2012, when the market moved even more aggressively against the CIO’s positions, Martin-Artajo specifically instructed Grout and the head SCP trader, Bruno Iksil (who has entered a non-prosecution agreement), not to report losses in the SCP unless they were tied to some identifiable market event, such as a bankruptcy filing by a company whose bonds were in the CDS index. Martin-Artajo explained that “New York”—meaning, among others, JPMorgan’s Chief Investment Officer—did not want to see losses attributable to market volatility.

By mid-March 2012, Grout was explicitly and admittedly “not marking at mids.” He maintained a spreadsheet that kept track of the difference between the price that Grout recorded in JPMorgan’s books and records on the one hand, and the “crude mids” on the other. By March 15, 2012, according to Grout’s spreadsheet, the difference had grown to approximately $292 million. In a recorded online chat the same day, Grout explained that he was trying to keep the marks for most of the SCP’s positions “relatively realistic,” with the marks for one particular security “put aside.” That is, Grout mispriced that one particular security, of which the SCP held billions of dollars’ worth, by the full $292 million. The following day, Iksil told Martin-Artajo that the difference had grown to $300 million, and “I reckon we get to 400 [million] difference very soon.” In a separate conversation, Iksil remarked to Grout that “I don’t know where he [Martin-Artajo] wants to stop, but it’s getting idiotic.”

In the days that followed, Grout at times ignored Iksil’s instructions on how to mark the positions and instead followed Martin-Artajo’s mandate to continue to hide the losses. By March 20, 2012, Iksil insisted that Grout show a significant loss: $40 million for the day. In a recorded call, Martin-Artajo excoriated Iksil, finally emphasizing, “I didn’t want to show the P&L [the profit and loss].” Throughout the remainder of March 2012, while Iksil continued to try to insist that Martin-Artajo acknowledge the reality of the losses, Grout, at Martin-Artajo’s instructions, continued to hide them. As of March 30, 2012—the last day of the first quarter of 2012—Grout continued to fraudulently understate the SCP’s losses. These incorrect figures in the SCP were not only integrated into JPMorgan’s books and records, but also—as Martin-Artajo and Grout were well aware—into the bank’s quarterly financial filing for the first quarter of 2012 with the SEC.

During the course of the mis-marking scheme carried out by Martin-Artajo and Grout, the CIO’s Valuation Control Group (VCG) was supposed to serve as an independent check on the valuations assigned by traders to the securities that the traders were marking at month-end. The VCG, however, was effectively only staffed by one person and did not perform any independent review of the valuations. Instead, the VCG tolerated valuations outside the bid-offer spread as presented by Martin-Artajo and other CIO traders.

In August 2012, after Martin-Artajo and Grout were stripped of their responsibilities over the SCP and their scheme was discovered, JPMorgan restated its first quarter 2012 earnings and recognized an additional loss of $660 million in net revenue attributable to the mismarking of the SCP. JPMorgan announced that it was restating its earnings because it had lost confidence in the “integrity” of the marks submitted by Grout, at Martin-Artajo’s direction.

* * *

Martin-Artajo, 49, a Spanish citizen, and Grout, 35, a French citizen, are charged in one count of conspiracy; one count of falsifying the books and records of JPMorgan; one count of wire fraud; and one count of causing false statements to be made in JPMorgan’s filings with the SEC. They each face a maximum sentence of five years in prison on the conspiracy count and 20 years in prison on each of the three remaining counts in the complaints and a fine of the greater of $5,000,000 or twice the gross gain or gross loss as to certain of the offenses.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud.

Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.

Mr. Bharara praised the work of the FBI. He also thanked the SEC and the Department of Justice’s Office of International Affairs.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Eugene Ingoglia and Matthew L. Schwartz are in charge of the prosecutions.

The charges contained in the complaints 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

Federal Mail Fraud Crimes

————————————————————–

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.


“FBI opens criminal probe of tax agency, audit cites disarray”

May 15, 2013

Reuters on May 14, 2013 released the following:

By David Ingram and Matt Spetalnick

“(Reuters) – U.S. Attorney General Eric Holder said on Tuesday he had ordered the FBI to open a criminal probe in a growing scandal over the Internal Revenue Service’s targeting of conservative political groups for extra tax scrutiny.

Holder’s announcement came about four hours before an inspector general’s report on the IRS portrayed the tax agency as plagued by disarray and “insufficient oversight” during its struggles to review the cases of hundreds of advocacy groups that claimed they should be tax exempt.

The audit, which drew some backlash from IRS officials, also underscored what the agency had acknowledged last Friday: that the IRS had used “inappropriate criteria” for evaluating tax-exempt groups, in part by singling out scores of conservative Tea Party and “Patriot” organizations for increased scrutiny.

The report by the Treasury Inspector General for Tax Administration sharply criticized the way the IRS had screened the conservative groups, citing poor management and processing delays. The report suggested that such practices could damage public confidence in the agency.

The criteria used to target the conservative groups “gives the appearance that the IRS is not impartial in conducting its mission,” the report said. However, the report stopped short of saying the IRS actions had been politically motivated.

For President Barack Obama – who late on Tuesday said the report showed that the IRS had failed to apply the law fairly in dealing with conservative groups – the revelations have added to a sense of a White House under siege.

Republicans continue to bash the Obama administration’s handling of the attack last year on the U.S. mission in Benghazi, Libya, that killed a U.S. ambassador and three other Americans. And on Monday, Obama’s Justice Department came under bipartisan fire for seizing phone records of journalists from the Associated Press as part of a wide-ranging criminal probe into intelligence leaks.

In Washington on Tuesday, the IRS case appeared to have the most potency, as lawmakers and administration officials alike described the symbolic and legal importance of having a non-partisan tax agency that Americans can trust.

For the IRS and the U.S. government, the stakes are particularly high in the scandal because the tax agency is playing an increasingly significant role not only in vetting the tax status of non-profit groups that dabble in politics, but also in enforcing parts of Obama’s ongoing overhaul of the nation’s healthcare system.

Some of the IRS’s conservative critics, including Republican Senator Ted Cruz, have said the current scandal is a sign that the agency shouldn’t be trusted to enforce a vast array of tax regulations related to healthcare.

The IRS’s embattled acting commissioner, Steven Miller, met privately with lawmakers on Capitol Hill, apparently seeking to calm the political uproar, even as some Republicans called for his resignation.

The IRS said on Monday that Miller, then the IRS deputy commissioner, was first informed in early May 2012 that some groups seeking tax-exempt status had been “improperly identified by name” and subjected to extra scrutiny.

Lawmakers say that neither Miller nor his predecessor, Douglas Shulman, ever made them aware of the targeting.

Senator Orrin Hatch, the top Republican on the tax-writing Finance Committee, said that Miller – who spent more than two decades working his way up through the IRS bureaucracy and was named acting chief six months ago – should step down.

“He basically misled me,” Hatch told reporters. “I really think it is time for him to leave.”

‘HEADS NEED TO ROLL’

Hatch was part of a growing Republican chorus on Capitol Hill calling for the resignations of Miller and Lois Lerner, head of the IRS tax-exempt organizations office. Lerner apologized on behalf of the agency when she revealed the targeting of conservative groups last week.

Conservative groups, particularly those that have sprung up in recent years to promote limited government and lower taxes, have long complained about mistreatment by the IRS.

On Tuesday, Miller met with Senator Max Baucus, the Democratic chairman of the Finance Committee who has promised that his panel will conduct its own investigation of the IRS case. Miller later declined to answer reporters’ questions.

Senate Republican leader Mitch McConnell urged Obama to make all of those who knew about IRS misconduct available for questioning, and said there should be “no more stonewalling.”

“Heads need to roll today,” said Republican Representative Vern Buchanan, a member of the tax-writing House Ways and Means Committee, which oversees the IRS and is scheduled to hold a hearing on the scandal on Friday.

It’s unclear precisely what charges a criminal probe of the IRS could yield.

Analysts said that a federal criminal prosecution of IRS employees for allegedly violating a taxpayer’s speech rights – by delaying or rejecting a conservative group’s legitimate claim to tax-exempt status, for example – could be unprecedented and that the offense would need to be egregious.

Holder said on Monday that the FBI “is coordinating with the Justice Department to see if any laws were broken.”

He said that the actions disclosed so far “were, I think as everyone can agree, if not criminal, they were certainly outrageous and unacceptable. But we are examining the facts to see if there were criminal violations.”

Despite efforts by some conservative commentators to cast the IRS troubles as something akin to the Watergate scandal of the 1970s – or to former President Richard Nixon’s use of the IRS to target his political enemies – there was no sign of White House involvement.

Obama spokesman Jay Carney said the results of independent investigations must be known “before we can jump to conclusions about what happened, whether there was a deliberate targeting of groups inappropriately and, if that’s the case, what action should be taken.”

THREE YEARS OF TARGETING

The targeting of conservative groups began in 2010, shortly after the emergence of the conservative Tea Party movement. The movement helped Republicans gain control of the U.S. House in the 2010 elections.

Hundreds of Tea Party-inspired groups have formed in recent years, and the IRS has struggled to handle campaign finance issues dealing with such politically active organizations seeking tax-exempt status. Such groups generally can be tax-exempt as long as they do not directly support particular political candidates.

Higher-level IRS officials took part in discussions as far back as August 2011 about targeting by lower-level tax agents of Tea Party and other conservative groups, according to documents reviewed by Reuters on Monday.

The documents show the offices of the IRS’s chief counsel and deputy commissioner for services and enforcement communicated about the targeting with lower-level officials on August 4, 2011, and March 8, 2012, respectively.

The communications occurred weeks and months before Shulman, then the commissioner of the IRS, told congressional panels in late March 2012 that no groups were being targeted for extra scrutiny by the tax agency.

The IRS has been dragged reluctantly into partisan politics at a time when it is also under increasing pressure to make rulings on campaign finance issues and matters related to implementation of Obama’s 2010 healthcare overhaul.

The agency must impose an excise tax on large employers if they fail to meet certain minimum healthcare coverage requirements for employees. In addition, the IRS must provide tax credits to low- and middle-income taxpayers who seek healthcare coverage on one of the new state-based insurance exchanges.

Timothy Jost, a specialist on the healthcare overhaul who teaches law at Washington and Lee University, said the controversy has no real bearing on implementation of Obama’s healthcare laws, aside from politics.

“I just don’t see a connection, other than that I’m sure there will be efforts to make one,” Jost said.

(Additional reporting by Patrick Temple-West, Thomas Ferraro, Richard Cown, Kim Dixon, Kevin Drawbaugh, Susan Heavey and Laura MacInnis; Writing by Matt Spetalnick; Editing by David Lindsey and Eric Beech)”

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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

————————————————————–

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.


Bout Defense Prepares Extradition Request and Appeals

May 24, 2012

RIA Novosti on May 24, 2012 released the following:

“The defense team for imprisoned Russian businessman, Viktor Bout, has started work on an appeal to Russian Ministry of Justice requesting his extradition from the U.S. as well as appeals to the U.S. Supreme Court and the International Court of Justice in the Hague, Bout’s lawyer Albert Dayan said.

Under a convention between Russia and the U.S. dating from the 1980’s the Russian Ministry of Justice may request the handing over of Russians sentenced in the U.S. Eric Holder, the current U.S. Attorney General, has said that the U.S. may consider an application for Bout, who has been sentenced to 25 years in jail, to serve his prison term in Russia if they receive the request.

“The appeal to the Justice Ministry is already at work, it will take months to prepare the necessary documents. We simultaneously work on three lengthy legal documents; on the appeal and the claim to International Court of Justice in the Hague,” Dayan said.

Dayan added that the defense team had been extended to manage the volume of work required.

“Victor Bout’s appeal is not a personal letter from a Russian, not just a private request. We are working on a document that will prepare a legal base for the governments of Russia and the United States on his extradition. We are studying precedents, materials, bilateral and international agreements, and conventions. We are preparing arguments for the negotiations between Russia and the United States,” Dayan said.

Dayan also noted that Bout is keeping his spirits up and believes he will return to Russia.

“Viktor Bout continues to believe that the country would stand for him. He works hard and hopes to return home”, the lawyer said.

Bout, a former Soviet Air Force officer who was dubbed the “Merchant of Death” in the United States, has been sentenced to 25 years in a U.S. jail for conspiring to kill U.S. citizens and sell arms to Colombian militants. He maintains his innocence.

On May 11, the U.S. penitentiary authority said Bout would be sent from his Brooklyn jail to a super maximum security prison in Colorado, where convicted terrorists and other dangerous criminals are serving their sentences, often in solitary confinement.”

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

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.


Bout could serve sentence in Russia – US Attorney General

May 16, 2012

RT.com on May 16, 2012 released the following (edited on May 17, 2012):

“The US may consider an application to transfer Viktor Bout, sentenced to 25 years in jail, to serve his prison term in Russia if it sends one, US Attorney General Eric Holder told Russian reporters.

The­ US Attorney General gave an exclusive interview to a number of Russian media outlets. A full interview will be published in the Rossiyskaya Gazeta daily on Thursday.

Russia’s Foreign Ministry stated recently that the country will do everything possible to get Bout back.

Earlier this week, the US Bureau of Prisons announced that it was reconsidering its plan to send the Russian businessman to the high-security Supermax prison in Florence, Colorado. Bout’s attorney Albert Dayan said that he was informed about this decision on Tuesday. On the same day, prosecutors notified the judge in a letter that the Bureau of Prisons was re-evaluating where to transfer Viktor Bout from a federal lockup in Brooklyn.

Viktor Bout, a former Soviet military officer, was found guilty of conspiracy to kill US nationals, including military officers and employees, conspiring to use anti-aircraft missiles and selling millions of dollars’ worth of weapons to the Colombian rebel group FARC. He is now serving his 25-year prison term in the US.

Russia has repeatedly condemned Bout’s trial on the grounds that the charges were not connected to any crime, but rather were over alleged criminal intent.The Russian Foreign Ministry has issued a statement that blasted the US trial as politically motivated, adding that it has blacklisted the US officials involved in the case.”

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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.


Holder expected to explain rationale for targeting U.S. citizens abroad

March 5, 2012

The Washington Post on March 4, 2012 released the following:

“By Sari Horwitz and Peter Finn

Attorney General Eric H. Holder Jr. on Monday plans to provide the most detailed account to date of the Obama administration’s legal rationale for killing U.S. citizens abroad, as it did in last year’s airstrike against an alleged al-Qaeda operative in Yemen, officials said.

The rationale Holder plans to offer resembles, in its broad strokes, those previously offered by lower-ranking officials. But his speech Monday will mark a new and higher-profile phase of the administration’s campaign to justify lethal action in those rare instances in which U.S. citizens, such as New Mexico-born Anwar al-Awlaki, join terrorist causes devoted to harming their homeland.

Civil libertarians and other critics have been demanding a more thorough and public accounting of the administration’s logic since the killing of Awlaki in September. Administration officials have relied on a classified opinion, written by the Justice Department’s Office of Legal Counsel, that provides a legal framework for the unusual action, but they have refused repeated requests to release it despite intense internal debate on the subject.

Holder plans to argue that the killing of an American terrorist abroad is legal under the 2001 congressional authorization of the use of military force, according to an official briefed on the speech, who spoke on the condition of anonymity to discuss its details ahead of its formal release. This official also said Holder plans to say that the U.S. right to self-defense is not limited to traditional battlefields as the government pursues terrorists who present an imminent threat.

Awlaki, 40, was a skilled propagandist and the chief of external operations for al-Qaeda’s affiliate in Yemen, which has attempted a number of terrorist attacks on the United States, according to administration officials. He had been placed on “kill lists” compiled by the CIA and and the military’s Joint Special Operations Command. Awlaki died when a joint CIA-JSOC drone operation fired missiles at him.

He was the first U.S. citizen deliberately targeted by the U.S. government.

Major address on security

The Awlaki operation was carried out after the administration requested and received the Justice Department opinion saying that targeting and killing U.S. citizens overseas was legal under domestic and international law, according to administration officials. The classified memo also included intelligence material about his operational role within al-Qaeda’s affiliate in Yemen.

Senior Obama administration officials, including John O. Brennan, the president’s counterterrorism adviser, and Harold Koh, the State Department legal adviser, have given speeches that offered a broad rationale for U.S. drone attacks on individuals in al-Qaeda and associated forces.

On Feb. 22, in a speech at Yale Law School, Pentagon General Counsel Jeh Johnson said the targeted killing of those suspected of engaging in terrorist activities against the United States, including U.S. citizens, is justified and legal. He did not mention Awlaki by name or the secret CIA drone program.”

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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 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.


Attorney General Holder Announces New Federal Bureau of Prisons Director

December 21, 2011

The U.S. Department of Justice on December 21, 2011 released the following:

“Attorney General Eric Holder today announced the appointment of Charles E. Samuels Jr. as the director of the Federal Bureau of Prisons (BOP).

“I am pleased that Charles will continue to build upon 23 years of distinguished service at the department,” said Attorney General Holder. “I am confident that Charles will provide the kind of effective and innovative leadership that will increase efficiency, further expand prisoner development and reentry programs, and allow for transparency and accountability at the Federal Bureau of Prisons – while remaining true to the BOP’s core mission of protecting public safety.”

“I am very honored to be appointed by Attorney General Holder to serve as the director for the Federal Bureau of Prisons and will continue to work with the great staff at every level of the BOP to meet our mission to protect society and provide meaningful life skills and reentry programs for our inmate population,” said Samuels. “I also look forward to working with the leadership and others in the Department of Justice, throughout the federal government and in states and local communities to further the department’s goals and objectives.”

In his current position as assistant director of the Correctional Programs Division for the BOP, which he has held since January 2011, Samuels oversees all inmate management and program functions, including intelligence and counterterrorism initiatives; security and emergency planning; inmate transportation; case management; mental health and religious services; private prisons; and community corrections. Samuels is also responsible for inmate skills development and reentry initiatives, and shares the attorney general’s commitment to reduce recidivism by preparing incarcerated people to return to their communities and become productive members of society.

Samuels began his career with the BOP as a correctional officer in 1988. He was promoted to a number of positions within the BOP including correctional programs administrator and executive assistant for the Northeast Regional Office. Samuels has served as associate warden at the Federal Correctional Institutions at Otisville, N.Y. and Beckley, W.Va.; ombudsman in the BOP’s Central Office; warden at the Federal Correctional Institutions at Manchester, Ky. and Fort Dix, N.J.; and senior deputy assistant director of the Correctional Programs Division.

Samuels is a native of Birmingham, Ala. He received his Bachelor of Science in Social and Behavioral Sciences from the University of Alabama in Birmingham. Samuels is a graduate of the Harvard University Executive Education Program.

The mission of the Federal Bureau of Prisons is to protect society by confining offenders in the controlled environments of prisons and community-based facilities that are safe, humane, cost-efficient and appropriately secure, while providing work and other self-improvement opportunities to assist offenders in becoming law-abiding citizens.”

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