Leo Joshua Kennedy Indicted by a San Jose Federal Grand Jury for Allegedly Committing Wire Fraud in a $17 Million Fraud Scheme

November 1, 2012

The Federal Bureau of Investigation (FBI) on October 31, 2012 released the following:

“Danville Man Charged in $17 Million Fraud Scheme

SAN JOSE, CA— A federal grand jury in San Jose indicted Leo Joshua Kennedy, of Danville, California, today with 10 counts of wire fraud, United States Attorney Melinda Haag announced.

According to the indictment, Kennedy, 60, is alleged to have stolen $17 million from various beneficiary trust accounts at Backhouse Fiduciary Services. While working as an accountant for Backhouse Fiduciary Services, a San Jose based administrator of beneficiary trust accounts, the defendant allegedly transferred funds from various trust accounts without the account-holders’ permission. Kennedy allegedly used those funds to pay for his personal investments and living expenses.

Kennedy is scheduled to make his initial appearance in federal court in San Jose on November 20, 2012, before Magistrate Judge Grewal.

The maximum statutory penalty for each count of wire fraud in violation of Title 18, United States Code, Section 1343 is 20 years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kamille Singh. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Kennedy must be presumed innocent unless and until proven guilty.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov.”

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

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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.


Ricardo Blanco, Pedro Rameriz-Alvarez, Carlos Zuniga, Roberto Arguelles-Fernandez, and Karol Blanco Charged by a Federal Criminal Complaint for Conspiracy to Manufacture and Distribute Unauthorized Copies of Copyrighted Films

July 16, 2011

The U.S. Attorney’s Office Northern District of California on July 15, 2011 released the following:

“SAN JOSE RESIDENTS ARRESTED FOR MANUFACTURING AND SELLING COUNTERFEIT MOVIES

Defendants Sold Counterfeit Movies At Local Retail Store

SAN JOSE, Calif. – Ricardo Blanco, 27, Pedro Rameriz-Alvarez, 28, Carlos Zuniga, 18, and Roberto Arguelles-Fernandez, 51, all residents of San Jose, today were arrested by agents of the Federal Bureau of Investigation for conspiracy to manufacture and distribute unauthorized copies of copyrighted films. United States Attorney Melinda Haag announced.

According to the criminal complaint, Ricardo Blanco and Karol Blanco own Mia’s Fashion Store, at 3144 Alum Rock Avenue in San Jose, and used a residence located at 2064 South King Street in San Jose to manufacture counterfeit movies. Rameriz-Alvarez and Zuniga, who were hired by Ricardo Blanco, worked at the residence reproducing the counterfeit movies and packaging them. Arguelles-Fernandez operated Mia’s Fashion Store on a daily basis, and sold counterfeit digital video discs (DVDs)

The criminal complaint states that agents from the Federal Bureau of Investigation executed a search warrant yesterday at Mia’s Fashion Store, and the residence located at 2064 South King Street. The agents seized approximately 3,000 counterfeit DVDs at Mia’s Fashions, and a representative from the Motion Picture Association of America (MPAA) confirmed that the movies were counterfeit and reproduced without authorization. Agents also searched the residence located at 2064 South King Street in San Jose, where they seized approximately 1,000 counterfeit DVDs, 19 printers, 12 duplicators, numerous blank discs and covers, and $53,000 in cash. Some of the counterfeit movies included “Cars 2,” “Harry Potter and the Deathly Hallows,” “Soul Surfer,” and “X Men.”

Ricardo Blanco, Rameriz-Alvarez, and Zuniga were arrested at 2064 South King Street in San Jose. Arguelles-Fernandez was arrested at Mia’s Fashion Store. They made their initial appearance in federal court in San Jose today and are currently being held at Santa Clara County Jail. The next scheduled appearance for Blanco, Ramirez-Alvarez, and Arguelles-Fernandez is at 9:30 a.m. on July 18 for identification of counsel before Judge Howard R. Lloyd. Zuniga will also appear at 9:30 a.m. on July 18 for a detention hearing.

An arrest warrant has been issued for Karol Blanco, 32, of San Jose.

The maximum statutory penalty for conspiracy, in violation of 18 U.S.C. § 371, is five years imprisonment and a fine of $250,000. The maximum statutory penalty for criminal infringement of a copyright is five years imprisonment, and a fine of $250,000 plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Susan Knight is the Assistant U.S. Attorney who is prosecuting the case with the assistance of paralegal Lauri Gomez. The prosecution is the result of a four-month investigation by the Federal Bureau of Investigation.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Ricardo Blanco, Rameriz-Alvarez, Zuniga, Arguelles-Fernandez, and Karol Blanco must be presumed innocent unless and until proven guilty.

Further Information:

Case #: CR 11-70785″

To find additional federal criminal news, please read The Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

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

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