FBI: “Former Sandia Corporation Scientist Pleads Guilty to Taking Government Property to China”

August 26, 2014

The Federal Bureau of Investigation (FBI) on August 25, 2014 released the following:

“ALBUQUERQUE— Jianyu Huang, a scientist formerly employed by Sandia Corporation (Sandia) at Sandia National Laboratories (SNL), pleaded guilty this afternoon to making a false statement and unlawfully transporting converted government property in interstate and foreign commerce. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.

Huang, 46, a naturalized U.S. citizen from the People’s Republic of China who resides in Albuquerque, N.M., was arrested in June 2012, on a six-count indictment charging him with misusing U.S. government resources and equipment to conduct research for Chinese research institutions and with falsely stating that he did not intend to take U.S. government equipment with him on a trip to China. The indictment subsequently was superseded to add an interstate transportation of converted property charge and a theft of government property charge. Huang was employed by Sandia until his employment was terminated in late April 2012.

SNL is a government-owned research facility operated by Sandia Corporation for the U.S. Department of Energy (DOE) National Nuclear Security Administration (NNSA) that is responsible for ensuring the safety of the nation’s nuclear stockpile; enhancing the security of energy and other critical resources; reducing the proliferation of weapons of mass destruction; addressing threats to national security; and protecting the nation against terrorism. The Center for Integrated Nanotechnologies (CiNT) is a DOE user facility and science research center devoted to establishing scientific principles that govern the design, performance, and integration of materials on the atomic and molecular scale, located at SNL.

In light of the sensitivity of SNL’s work, all Sandia employees are required to report to the Sandia Office of Counterintelligence (SOC) any substantive relationship with foreign nationals, including associations that involve meeting and sharing work-related information. Sandia employees also are required to submit to interviews with SOC before international travel on official business, and are prohibited from bringing government-owned equipment on international travel without prior approval.

Huang was employed by Sandia at CiNT, where he worked in an unclassified open science facility without access to classified national security information. As a Sandia employee, Huang was prohibited from bringing government-owned equipment on international travel without prior approval.

Counts 1 through 5 of the second superseding indictment charged Huang with federal program fraud and alleged that between Jan. 2009 and Jan. 2012, Huang unlawfully and without authority used DOE equipment, materials and property to conduct research for businesses and universities in the People’s Republic of China. Count 6 charged Huang with making a false statement charge to a federal officer and alleged that, in June 2011, Huang falsely represented to a counterintelligence officer that he would not take any U.S. government electronic equipment with him on an upcoming trip to the People’s Republic of China. The statement was false because Huang knew that he intended to take a U.S. government computer and hard-drive to the People’s Republic of China on that trip, and did in fact take that equipment with him. Count 7 charged Huang with the interstate transportation of converted property charge and alleged that between June 30, 2011 and July 18, 2011, Huang unlawfully transported a DOE-owned laptop computer and computer-related media in interstate and foreign commerce. Count 8 charged Huang with an embezzlement charge and alleged that between April 25, 2012 and June 2, 2012, Huang embezzled electronic files and documents, including research proposals, belonging to DOE that came into his possession by virtue of his employment with SNL.

During his plea hearing this afternoon, Huang pled guilty to Counts 6 and 7 of the second superseding indictment. In his plea agreement, Huang admitted taking a trip to China in July 2011, for the purpose of attending and making a presentation at a research conference. Huang acknowledged that in seeking and obtaining Sandia’s permission to participate in the conference, he represented that he would not take any DOE-owned equipment with him. Huang also admitted deliberately lying to a counterintelligence office when he made the representation because he intended to take his DOE-owned laptop on the trip.

Huang admitted taking a DOE-owned laptop computer with him when he traveled to China on June 30 and July 1, 2011, even though he knew that he did not have permission to do so. In so doing, Huang unlawfully converted the laptop computer to his own use. According to Huang’s plea agreement, U.S. Customs and Border Protection agents seized the DOE-owned laptop from Huang’s baggage when he returned to the United States on July 18, 2011, after Huang admitted that he did not have permission to take the laptop computer out of the country.

Under the terms of the plea agreement, Huang will be sentenced to a year and a day in federal prison followed by a term of supervised release to be determined by the court. Huang’s sentencing hearing has yet to be scheduled.

The case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.”

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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 CEO and Former CFO of ArthroCare Corp. Charged with Allegedly Orchestrating a $400 Million Securities Fraud Scheme

July 17, 2013

The U.S. Department of Justice’s Office of Public Affairs on July 17, 2013 released the following:

“The former chief executive officer and former chief financial officer of ArthroCare Corp., a publicly traded medical device company based in Austin, Texas, were charged for their alleged leading roles in a $400 million scheme to defraud the company’s shareholders and members of the investing public by falsely inflating ArthroCare’s earnings by tens of millions of dollars, announced Acting Assistant Attorney Mythili Raman of the Department of Justice’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas.

A 17-count indictment was unsealed today in the U.S. District Court for the Western District of Texas against Michael Baker, the former chief executive officer and director of ArthroCare, and Michael Gluk, the former chief financial officer of ArthroCare. Both defendants surrendered to authorities this morning.

The indictment, which was returned on July 16, 2013, charges Baker and Gluk with one count of conspiracy to commit wire and securities fraud, 11 counts of wire fraud, and two counts of securities fraud; it charges Baker alone with three counts of false statements. The indictment also seeks forfeiture of assets held by Baker and Gluk.

“Truthful corporate earnings reports are critical to the soundness of our financial system,” said Acting Assistant Attorney General Raman. “Today’s indictment alleges that those at the top of ArthroCare deceived investors and regulators by manipulating the company’s reports to inflate its stock, ultimately causing hundreds of millions in losses in shareholder value. The Criminal Division will continue to aggressively pursue corporate executives who undermine our financial markets for personal gain.”

According to the indictment, from at least December 2005 through December 2008, Baker, Gluk and other senior executives and employees of ArthroCare allegedly falsely inflated ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors. According to court documents, Baker, Gluk and other ArthroCare employees determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker, Gluk and others then allegedly caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.

The indictment alleges that ArthroCare’s distributors agreed to accept shipment of millions of dollars of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars.

Baker, Gluk and others allegedly used DiscoCare, a privately owned Delaware corporation, as one of the distributors to cover shortfalls in ArthroCare’s revenue. According to the indictment, at Baker and Gluk’s direction, ArthroCare shipped product to DiscoCare that far exceeded DiscoCare’s needs.

In addition, Baker, Gluk and others allegedly lied to investors and analysts about ArthroCare’s relationships with its distributors, including its largest distributor, DiscoCare. According to the indictment, Baker and Gluk caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare’s relationship with DiscoCare.

The indictment further alleges that when Baker was deposed by the U.S. Securities and Exchange Commission about the DiscoCare relationship in November 2009, he lied again on multiple occasions.

According to court documents, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.

If convicted, Baker and Gluk would face a maximum prison sentence of 25 years for the conspiracy charge, 20 years for each count of wire fraud, and 25 years for each securities fraud count. Baker faces five years for each count of false statements.

An indictment is merely a charge, and the defendants are presumed innocent until proven guilty.

This case was investigated by the FBI’s Austin office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.”

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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.


Tuffek Mohammed Ali Saleh Charged in a Federal Criminal Complaint with Allegedly Making False Statements

June 28, 2013

The U.S. Immigration and Customs Enforcement (ICE) on June 28, 2013 released the following:

“Rochester man charged with making false statements

ROCHESTER, N.Y. – A Yemeni citizen was arrested Thursday by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents on three counts of making false statements about his immigration status.

Tuffek Mohammed Ali Saleh, 41, was arrested in Rochester and charged by criminal complaint with making a false statement on an immigration document, making a false statement to an immigration official and making a false claim of United States citizenship. The charges carry a maximum penalty of 10 years in prison and a fine of up to $250,000.

According to the complaint, in April 2012 the defendant applied for U.S. citizenship under the name Yehya Muthana Ali. During the processing of Saleh’s application, it was determined that the defendant had previously applied to enter the United States using a different identity. The complaint further alleges that during a subsequent interview with immigration officials, Saleh failed to disclose that he in fact previously went by other names.

In April 2013, Saleh walked into a New York State Lottery Claims Center in Rochester and presented a torn scratch off ticket claiming to have won $3,000,000. As a result, the defendant filled out a Claim Form Worksheet and indicated that he was a U.S. citizen. According to the New York State Lottery, citizenship is material to the awarding of any lottery winnings because citizens and non-citizens are taxed at different rates.

The New York State Police provided substantial support during HSI’s investigation of Saleh.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.”

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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.


Bank Employee Indicted for Alleged Embezzlement and Structuring of Nearly $250,000

May 10, 2013

The Federal Bureau of Investigation (FBI) on May 9, 2013 released the following:

Nine Others Indicted by Federal Grand Jury

CLARKSBURG, WV— United States Attorney William J. Ihlenfeld, II, announced that Deborah D. Radcliff, age 41, of Weston, West Virginia, was named in an eight-count Indictment charging her with one count of embezzlement by a bank employee and seven counts of structuring.

According to the indictment, while serving as the branch manager of the Weston branch bank of Huntington National Bank from July 1, 2011 to November 5, 2012, Radcliff embezzled and misapplied $247,249.88 from depositors’ accounts and engaged in acts of structuring to cause the bank to fail to file a currency transaction report for currency transactions of $10,000 or more. To execute the scheme, Radcliff utilized her position as branch manager to issue or direct to be issued cashier’s checks from funds withdrawn from depositors’ accounts issued in the name of the depositor. Radcliff would take possession of the cashier’s check, forge the name of the depositor, and cash the checks for her own personal benefit. The ages of the alleged victims ranged from 56 to 90 years, with all but one alleged victim 64 years or older.

The indictment also seeks the forfeiture of a money judgment of the $247,249.88. If convicted, Radcliff faces up to 30 years’ imprisonment and a $1,000,000 fine on the embezzlement count and up to 10 years’ imprisonment and a $500,000 fine on each of the structuring counts. This case will be prosecuted by Assistant United States Attorney John C. Parr and was investigated by the Federal Bureau of Investigation.

Other indictments returned by the grand jury include:

Duane McAtee, age 43, of Metz, West Virginia, was named in a one-count indictment charging him with contempt of court. The indictment alleges that on April 2, 2013, McAtee disobeyed a lawful process of a court by failing to appear as directed. If convicted, McAtee faces up to six months’ imprisonment. The case was investigated by the FBI and IRS-CI.

Jose Deleon Hernandez was named in a one-count indictment charging him with iIllegal reentry after removal.” If convicted, Hernandez faces up to two years’ imprisonment and a $250,000 fine. The case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).

These two cases will be prosecuted by Assistant United States Attorney Paul T. Camilletti.

Brian Farley, age 30, of Oceana, West Virginia, was named in a 14-count indictment charging him with six counts of obtaining drugs by fraud and eight counts of making a material false statement. If convicted, Farley faces up to four years’ imprisonment and a $250,000 fine on the fraud charges and up to five years’ imprisonment and a $250,000 fine on the false statement charges. This case will be prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and was investigated by the U.S. Deparmtent of Veterans’ Affairs/Office of Inspector General-Criminal Investigations Division.

Edward C. Crow, age 43, a former inmate at USP Hazelton, was indicted for multiple counts of possession of a prohibited object; assaulting, resisting, and impeding officers; and assault with a dangerous weapon with intent to do bodily harm. If convicted, Crow faces up to 40 years’ imprisonment. This case will be prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at USP Hazelton.

Shane O. Brantley, age 36, of Sutton, West Virginia, was named in a one-count indictment charging him with being a felon in possession of a firearm” on April 25, 2012, in Braxton County. If convicted, Brantley faces a maximum exposure of 10 years’ imprisonment and a fine of $250,000.

Ronald M. Starkey, age 27, of Morgantown, West Virginia, was named in a one-count indictment charging him with being a felon in possession of a firearm” on May 24, 2011, in Morgantown. If convicted, Starkey faces a maximum exposure of 10 years’ imprisonment and a fine of $250,000.

These two cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

Christopher Weaver, age 36, of Morgantown, was named in a three-count indictment charging him with one count of distribution of crack cocaine and two counts of distribution of cocaine hydrochloride. If convicted, Weaver faces up to 20 years’ imprisonment and a $1,000,000 fine on each count. This case was investigated by the West Virginia State Police-Bureau of Criminal Investigations.

Welford Lee Harris, age 27 and Casey Smith, age 20, of Morgantown, were named in an eight-count indictment charging them with conspiracy to possess with intent to distribute and to distribute oxycodone and multiple counts of distribution of oxycodone, and possession with intent to distribute cocaine hydrochloride. If convicted, Harris and Smith face up to 20 years’ imprisonment and a $1,000,000 fine on each count. This case was investigated by the Mon Valley Drug Task Force and the West Virginia State Police. The task force consists of officers from Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.

These four cases will be prosecuted by Assistant United States Attorney Zelda E. Wesley.

All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless 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

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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 Vincent Gray aide should avoid prison time, prosecutors say

September 11, 2012

The Washington Post on September 10, 2012 released the following:

“By Del Quentin Wilber

A former aide to Mayor Vincent Gray’s 2010 mayoral campaign should be sentenced to probation, not prison time, because he “took full responsiblity for his crimes and provided substantial assistance to the government,” federal prosecutors wrote in court papers filed Monday.

Howard Brooks, 64, pleaded guilty in May to making a false statement to an FBI agent about his activities in the mayoral campaign, admitting that he was instructed to make illegal payments to a fringe candidate assailing then-Mayor Adrian Fenty (D).

Gray, then the D.C. Council chairman, beat Fenty in the 2010 Democratic primary and cruised to a general election victory.

Another campaign aide, Thomas W. Gore, 56, has pleaded guilty to obstruction of justice and three misdemeanor charges of making of a campaign contribution in the name of another in the scame scheme.

Gore and Brooks have admitted to carrying out a scheme that illegaly diverted campaign funds to fringe candidate Sulaimon Brown so he could continue attacking Fenty.

No sentencing date has been set for Gore.

It is not clear what “substantial cooperation” Brooks provided federal authorities. Prosecutors disclosed details of that help under seal, and a spokesman for the U.S. Attorney’s Office declined comment on the case.”

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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

————————————————————–

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.


Houston-Area Men Charged in an Alleged $68 Million Bank Fraud

June 18, 2012

The Federal Bureau of Investigation (FBI) on June 15, 2012 released the following:

“MONTGOMERY, AL— George L. Beck, Jr., United States Attorney for the Middle District of Alabama, and Lanny Breuer, Assistant Attorney General, Criminal Division, U.S. Department of Justice, announced today:

  • The indictment on June 6, 2012 of three Houston, Texas-area men: Paul Hulse, Sr., age 64, of Kingwood, Texas; Steven P. Mock, age 68, of Houston, Texas; and Frank J. Teers, age 49, of Montgomery, Texas, on federal conspiracy, wire fraud, and bank fraud charges.
  • The guilty plea on June 5, 2012 of Paul Hulse, Jr., age 42, of Kingwood, Texas, to an information charging conspiracy to make a false statement to a bank.

According to court filings, Paul Hulse, Sr. (Hulse) was a director of H&H Worldwide Financial Service Inc.; Paul Hulse, Jr. (Hulse, Jr.) was H&H’s president; Steven P. Mock was an attorney in the Houston area; and Frank J. Teers was a stockbroker employed by Tri-Star Financial Services in Houston. Beginning in 2003, Hulse began soliciting various persons and businesses for loans based on the false representation that he controlled a large portfolio of bonds—the amount ranged from tens to hundreds of millions of dollars—that could be used as collateral for the loans. Mock and Teers made false statements to the prospective lenders that supported Hulse’s claim that he owned a substantial bond portfolio. In fact, Hulse did not have a bond portfolio. None of the solicited institutions, which included Western National Bank of Midland, Texas, MetLife, UBS Securities, and Jefferies and Co. agreed to make a loan to Hulse or H&H.

According to the indictment, in February 2005, Hulse began soliciting loans from the Federal Land Bank of South Alabama (the bank) in Montgomery, Alabama. During the course of the discussions:

Hulse falsely represented that he had a large bond portfolio that could serve as collateral for the loans to H&H and submitted documents that concealed Hulse’s plan to use approximately half the loan proceeds to purchase the bonds that were going to serve as collateral for the loans.

Mock falsely claimed that he was Hulse’s “senior trust officer” and that the “trust agreements” permitted the use of $15 million of trust bonds in connection with the proposed loan.

Teers falsely represented that he managed a significant bond portfolio for Hulse, provided documents to Hulse that Hulse used to support his claim of ownership, signed documents that represented that bonds were on account at Tri-Star and failed to disclose to the bank and to Tri-Star that he had been interviewed by IRS criminal investigators about Hulse’s fraudulent activities.

According to the indictment, the bank made two loans to H&H totaling $68.5 million in August and December 2005. H&H used more than half the money to buy the bonds that were to serve as collateral for the loan. A significant amount of the loan proceeds were used for the personal benefits of Mock, Hulse, and members of the Hulse family. Teers made more than $600,000 in commissions from the buying and sale of bonds on behalf of H&H. By spring 2007, the relationship between H&H and the bank had deteriorated. In an effort to convince the bank to allow the principal of the bonds to be used to make the quarterly loan payment, on June 28, 2007, Mock, Hulse, and Hulse, Jr. sent a letter to the bank that (a) falsely claimed that H&H was on the “doorstep” of obtaining a loan from Wells Fargo that would allow the bank to be paid in full and (b) described how the loan proceeds had been used without disclosing the fact that more than half the loan proceeds had been used to buy the bond collateral.

Each count of the 10-count indictment carries a statutory maximum sentence of 30 years’ imprisonment. The conspiracy charge to which Hulse, Jr. pled guilty carries a statutory maximum sentence of five years’ imprisonment.

Hulse and Mock were arraigned yesterday before United States Magistrate Judge Terry F. Moorer. Teers had his arraignment before Judge Moorer on June 13, 2012. Each defendant pled not guilty, and each was released on a $25,000 unsecured bond. Trial is set for February 11, 2013 before United States District Judge Myron H. Thompson.

Hulse, Jr. pled guilty before Chief United States Magistrate Judge Susan R. Walker, who released him on a $25,000 unsecured bond. Hulse, Jr. is scheduled to be sentenced on September 19, 2012 before Chief United States District Judge William Keith Watkins.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Andrew O. Schiff and Fraud Section Trial Attorney Ryan S. Faulconer.”

Federal Bank Fraud Crimes – 18 U.S.C. 1344

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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

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

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


Clemens trial about lying, not baseball: prosecutors

June 12, 2012

Chicago Tribune on June 12, 2012 released the following:

“Lily Kuo
Reuters

WASHINGTON (Reuters) – Federal prosecutors in the perjury trial of former pitching ace Roger Clemens urged jurors on Tuesday to use common sense and not to fall for the “entangled web of lies” he weaved to protect his reputation.

Clemens, 49, is on trial for the second time on federal charges of lying in 2008 to the House of Representatives’ Committee on Oversight and Government Reform, which was investigating drug use in Major League Baseball.

Prosecutors made closing arguments as jurors prepared to begin deliberations after nearly two months of testimony.

“What is this case about?” Assistant U.S. Attorney Gilberto Guerrero asked. “This case is not about Roger Clemens’ greatness. It is about (him) lying…to protect his legacy.”

Clemens, who won 354 regular-season games and is a record seven-time winner of the yearly Cy Young Award as best pitcher, is among the biggest names implicated in drug use in baseball.

The defense has worked to portray Clemens as a hard worker whose stunning late-career success was the product of dedication and smart pitching, not performance-enhancing drugs.

Defense lawyers will make closing statements and the jury will begin deliberating later Tuesday or Wednesday morning on what they have heard from 46 witnesses in the nine-week trial.

Guerrero outlined the government’s charges against Clemens, including obstruction of Congress, making a false statement and perjury, and appealed to jurors to use their common sense.

He argued against attacks on the testimony of Brian McNamee, the prosecution’s key witness and Clemens’ former trainer, who said he injected Clemens with anabolic steroids and human growth hormone between 1998 and 2001.

Clemens’ lawyers have worked to paint McNamee as a liar who obtained immunity in exchange for his testimony.

“We’re not asking you to like Brian McNamee. … Brian McNamee did a lot of things that weren’t nice … but Roger Clemens is the one who chose Brian McNamee to inject him with steroids and HGH,” Guerrero told the jury.

He also highlighted inconsistencies in defense witnesses from Clemens’s wife, Debbie, who testified that she had received an injection of human growth hormone from McNamee in 2000.

New York Yankees’ pitcher Andy Pettitte testified earlier in the trial that Clemens, a former teammate, told Pettitte in 1999 or 2000 that he had taken human growth hormone but, years later, said he had been referring to his wife’s use of the drug.

Guerrero pointed to physical evidence prosecutors have presented, medical waste which they say contain Clemens DNA and traces of steroids. Defense attorneys have argued that blood and pus on two cotton balls and a small number of cells on a needle, could have been fabricated.

“That’s totally illogical. There’s no way in the world someone could fabricate that,” Guerrero said, echoing the testimony of a government forensic scientist.

McNamee testified that he kept needles, cotton balls, a broken steroid ampoule and other medical waste from injections for Clemens. He turned the evidence in to authorities in 2008.

Clemens won his final Cy Young Award in 2004, the summer he turned 42, in his first season with the Houston Astros.”

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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

————————————————————–

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.


Debbie Clemens to back up husband on HGH shot

June 8, 2012

Associated Press on June 8, 2012 released the following:

“By FREDERIC J. FROMMER
Associated Press

WASHINGTON (AP) — “My heart’s pounding,” Debbie Clemens said just before she walked into a federal courtroom to take the stand in her husband’s perjury trial.

Lawyers on both sides of the Roger Clemens case are ready for key testimony from her about her husband’s alleged use of human growth hormone as the defense nears the end of its case.

Debbie Clemens, who spent only 15 minutes on the stand Thursday fielding background questions before court recessed for the day, was to get to the crux of her testimony Friday. She was expected to say that she received a shot of HGH from Clemens’ then-strength coach, Brian McNamee, about 12 years ago, and that her husband wasn’t present.

McNamee, the government’s key witness, testified last month that not only was the star baseball pitcher there, he had summoned McNamee to the couple’s master bathroom in Houston to give Debbie Clemens the drug.

McNamee said she looked at her husband and said, “I can’t believe you’re going to let him do this to me,” and Clemens responded, “He injects me. Why can’t he inject you?”

Clemens is charged with lying to Congress when he denied using performance-enhancing drugs. Among the false statement he’s alleged to have made are that he never used HGH and that McNamee injected his wife without Clemens’ prior knowledge or approval.

Wearing a cream-colored suit, Debbie Clemens told U.S. District Judge Reggie Walton that she was being represented by her husband’s lawyer, Rusty Hardin. Walton gave her a few minutes to talk to Hardin about her right not to incriminate herself, after which she came back and said she was ready to testify.

Hardin earlier had told Walton that the HGH injection happened so long ago that the statute of limitations would bar charges against her now.

Debbie Clemens testified briefly Thursday about the couple’s time in Boston, where her husband pitched for the Red Sox from 1984 to 1996. She recalled that son Koby, born in 1986, was dubbed “most valuable baby” because his father was MVP that year.

For the benefit of the jury, Walton asked her what MVP meant.

“Most valuable baby,” she said, prompting laughter in the courtroom – including a rare laugh from her husband across the room. She quickly corrected her answer to most valuable player.

She also said that while she liked Boston, “the media could be very miserable. It was hard living a hero and a villain every other day, what they were creating.”

After the court recessed, Roger Clemens came up behind his wife in the hallway and put his arm around her.

Earlier Thursday, McNamee’s wife, Eileen, testified, but there was no embrace waiting for her, as the couple is going through a contentious divorce. She said she was furious with both her husband and Clemens when the former pitcher’s lawyers allowed details of the McNamees’ oldest son’s diabetes to be revealed during a 2008 nationally televised news conference.

The news conference was part of a media blitz during which Clemens denied the doping allegations McNamee made about the pitcher in the then-just-released Mitchell Report on drugs in baseball. Hardin and Clemens played a taped phone call in which McNamee told Clemens, “My son is dying.”

That wasn’t true, Eileen McNamee said, although she had left her husband a message around that time about blood test results that weren’t what they were supposed to be.

“Brian didn’t bother to call me back. He called Roger and told him his son was dying,” she testified.

Then her 10-year-old son heard the news conference, and “now my son thinks he’s dying.”

Prosecutor Courtney Saleski said Clemens could have kept the information about her son out of the news conference, but instead, “he played it for the world.”

“Yes, he did,” Eileen McNamee said. She acknowledged that she called her husband and told him to go after Clemens.

The next day, around 3 a.m., Brian McNamee retrieved the evidence that he said had been kept in and around a beer can inside a FedEx box for more than six years, the remnants of an alleged steroids injection of Clemens in 2001, which is the key physical evidence against Clemens.

“I asked him where he was going, and he said he was heading to his lawyers, and he was out the door,” she recalled.

Brian McNamee had testified that he decided to turn over the evidence to federal authorities against Clemens “because of what he did to my son.””

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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

————————————————————–

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.


2nd campaign aide to DC mayor faces federal charges

May 24, 2012

CBS News on May 24, 2012 released the following:

“WASHINGTON — A second former aide to District of Columbia Mayor Vincent Gray was charged Wednesday with a federal offense arising from Gray’s 2010 campaign and intends to plead guilty, a day after another aide’s guilty plea revealed the use of underhanded tactics to get Gray elected.

Howard Brooks, a 64-year-old campaign consultant to Gray, faces a single count of making a false statement to the FBI. He was charged in a criminal information, a document that typically means a defendant has reached a plea deal. A plea hearing was scheduled for Thursday afternoon in U.S. District Court.

According to the document, Brooks told FBI agents in April 2011 that he never gave any cash, money orders or other payments to the campaign of minor mayoral candidate Sulaimon Brown, when in fact Brooks did make such payments.

At some point after the agents interviewed him, Brooks began cooperating with the FBI.

The charges have rattled the first-term mayor, who has been the subject of a federal probe since Brown went public last March with allegations that he was paid by the Gray campaign and promised a job in the Gray administration in exchange for making disparaging comments about then-mayor Adrian Fenty on the campaign trail. Gray has denied knowledge of the payments.

Gray declined to comment Wednesday on the charges, citing the ongoing investigation.

“We’ll let the investigation play out as well as it should, and then we’ll see where we are,” Gray said before chastising reporters for not paying attention to “the good things that are going on in this city.”

Gray won the 2010 Democratic primary by 10 percentage points after tapping into widespread dissatisfaction with Fenty, perceived by many as aloof. Gray, 69, billed himself as the more ethical candidate, criticizing Fenty for steering lucrative government contracts to his fraternity brothers. But Gray’s administration has been mired in scandal since shortly after he took office.

Thomas Gore, the acting treasurer for Gray’s campaign who pleaded guilty Tuesday, said in court that he was captured on a wiretap talking to Brooks about shredding evidence of payments to Brown. Brooks was not mentioned by name in court because he had not yet been charged.

Gore acknowledged at his plea hearing that he and Brooks conspired to convert undocumented cash contributions into money orders that were given to Brown, and that Brown was paid to stay in the race and disparage Fenty. The money orders contained the names of relatives and associates of Brooks, including his son Peyton Brooks. Gore admitted giving Brown $660 in money orders, although Brown contends the Gray campaign gave him more.

Peyton Brooks’ attorney, Troy W. Poole, confirmed Wednesday that his client has been granted immunity from prosecution in the ongoing federal probe. Poole added that Howard Brooks’ guilty plea had nothing to do with his client receiving immunity.

The charge against Brooks is a felony that carries a maximum penalty of five years in prison, although Brooks would likely receive a much lighter sentence under federal guidelines. His cooperation also could lead to a reduced sentence.

Brooks’ attorney, Glenn Ivey, did not return a message seeking comment.

Brooks and the mayor are not close — Gray said in late 2011 that he had not spoken to Brooks all year — and Brooks is not well-known in district politics. He is, however, a close personal friend of Lorraine Green, Gray’s campaign chairwoman and closest adviser during his 2010 bid. Brown has said he also received money from Green before she delegated that task to Brooks.

Brooks was rewarded handsomely for his work on the Gray campaign, receiving $44,000 in consulting fees. He was also paid $34,500 by the Gray transition.

Council Chairman Kwame Brown is also the subject of a federal probe for actions during his 2008 campaign, and former councilmember Harry Thomas Jr. is heading to prison after pleading guilty in January to embezzling from the city.

Several Gray campaign staffers have said Sulaimon Brown’s harsh rhetoric against Fenty at campaign forums amounted to a sideshow that did nothing to help Gray, although Brown has claimed his efforts were crucial. The Gray administration appointed Brown to a $110,000-a-year position in January 2011 and fired him less than a month later.

In a statement emailed to reporters Wednesday morning before the charges against Brooks were filed, Brown called on Gray to resign for violating the public trust. He also praised U.S. Attorney Ronald Machen for his efforts.

“I was not looking for vindication for the truth need not be vindicated,” Brown wrote. “I was seeking justice.””

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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.


Roger Clemens trial: Prosecutors seek to authenticate physical evidence used against pitcher

May 22, 2012

The Washington Post on May 21, 2012 released the following:

“By Ann E. Marimow and Del Quentin Wilber

Federal prosecutors delved into the nitty gritty of the distribution, design and freshness of Miller Lite beer cans Monday as they sought to authenticate the physical evidence being used against star pitcher Roger Clemens in his perjury trial in the District’s federal courthouse.

A crushed beer can has played something of a leading role in the trial: Clemens’s former strength coach and chief accuser, Brian McNamee, used one to store needles, cotton balls and gauze he said he used to inject the baseball legend.

McNamee, who testified for a sixth and final day Monday, has said he recovered the can from Clemens’s recycling bin after injecting him with performance-enhancing drugs at his Manhattan apartment in 2001.

Displaying a chart that showed the evolution of the blue-and-gold Miller Lite can since the 1970s, government lawyers used the testimony of a beer company manager to try to back up McNamee’s assertion by putting a date on the can.

MillerCoors manager Anthony Manuele testified about the “freshness code” on the can in question and determined that it was filled in July 2001 at a North Carolina brewery and would have hit retail shelves in August.

On cross-examination, Clemens’s lawyer Rusty Hardin tried to raise doubt about McNamee’s story and pointed out that the company’s distribution map meant that the strength coach could have purchased the can in his home town of Breezy Point, N.Y.

Manuele’s testimony showed the lengths prosecutors have gone to try to authenticate evidence against Clemens, who is charged with perjury, making false statements and obstruction of Congress for denying to a House panel in 2008 that he had ever used performance-enhancing drugs. Congress was following up on a 2007 report by former senator George Mitchell that named dozens of ballplayers, including Clemens.

Government lawyers have already called a U.S. Postal Service employee to try to establish the likely date of a shipping receipt from steroid supplier Kirk Radomski to McNamee at Clemens’s Houston home.

The trial, now in its sixth week, again featured testimony from McNamee, who said Monday that he had supplied several big league ballplayers with performance-enhancing drugs and shared that information with law enforcement officials.

McNamee’s testimony regarding other ballplayers and performance-enhancing drugs was intended to suggest that he was not out to get Clemens when he began confiding in federal agents in 2007.

Defense attorneys for Clemens had opposed allowing McNamee to testify about the other players because of concerns about “guilt by association.” But U.S. District Judge Reggie Walton ruled that the government could introduce the information as a way to bolster McNamee’s credibility.

Last week, McNamee endured aggressive questioning by Hardin, Clemens’s lead attorney. He was forced to acknowledge that his story about injecting the baseball legend had evolved over time and that he had lied to federal agents and, separately, to police in a Florida criminal investigation.

But McNamee has largely remained unapologetic about his changing story. McNamee said Monday that he was loyal to Clemens and had no incentive to damage his employer’s reputation. The strength coach agreed to cooperate with federal agents, he said, to try to avoid getting in trouble for distributing the banned substances.

He told authorities about his involvement with several players, including pitchers Mike Stanton and Andy Pettitte and infielder Chuck Knoblauch. Earlier in the trial, Pettitte gave conflicting testimony about his memory of a conversation with Clemens about human growth hormone.

Before leaving the stand, McNamee said he regretted helping Clemens with performance-enhancing drugs. McNamee said he had become unemployable, ruined his marriage and his relationship with his children.

“I shouldn’t have gotten involved. I should have just educated and left it at that. I shouldn’t have enabled,” he said.

Prosecutors and defense attorneys also questioned a neighbor of Jose Canseco, Clemens’s former teammate. Alexander Lowrey was 11 years old at the time he attended a 1998 pool party at Canseco’s home, where he had his picture taken with Clemens.

McNamee alleges that Clemens and Canseco talked about performance-enhancing drugs at the party, but defense lawyers suggested that Clemens was playing golf during the time that McNamee attended.

Lowrey was questioned in an attempt to establish whether Clemens and McNamee could have been at the party together. Under cross-examination, Lowrey conceded to Hardin that he was uncertain of the date of the party or the exact times that he was there, raising questions about the timing of the conversation McNamee claimed to have observed.”

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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

————————————————————–

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.