FBI: “Five Charged with Fraud in Wilkes-Barre City Employees Federal Credit Union Investigation”

August 25, 2014

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

“The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Grand Jury in Scranton returned indictments Tuesday charging five members of the Wilkes-Barre City Employees Federal Credit Union with conspiracy and bank fraud. The indictments were sealed pending the arrests and/or voluntary surrender of the defendants today.

According to United States Attorney Peter Smith, Tino Ninotti, age 35, Jason Anthony, age 34, Leo Glodzik, age 43, Amanda Magda, age 30, and Jeffrey Serafin, age 35, were charged in three separate indictments related to activities of the credit union. Glodzik is also charged with tampering with a witness. Magda was the assistant manager at the Credit Union; Jason Anthony is a Wilkes-Barre City Police Officer; Ninotti is a former Wilkes-Barre City Police officer; Glodzik is a contractor whose company had a towing contract with the City of Wilkes-Barre.

Four of the defendants appeared today before Magistrate Judge Karoline Mehalchick in federal court in Wilkes-Barre. Ninotti, Anthony and Glodzik were released from custody and ordered to report to pretrial services. Glodzik was ordered to surrender his passport. Serafin was released on his own recognizance. The hearing for Magda is expected to take place later today.

The indictments, unsealed today, allege that the defendants, during 2014, individually or by aiding and abetting one another, secured loans from the Credit Union by means of false and fraudulent pretenses, including the use of false collateral, the stolen identities of others who were not aware of loans in their names, and forgery. Magda and Anthony are charged in one indictment; Ninotti, Glodzik and Magda in a second indictment; and Serafin alone in the third indictment.

If convicted, the defendants face up to 30 years in prison and fines in the amount of $1,000,000.

According to the U.S. Attorney the charges are a significant step in an ongoing corruption investigation by the FBI. The case represents the pursuit of allegations against individuals; the FBI and the U.S. Attorney’s Office value the close working relationships they have with local police departments, including Wilkes-Barre’s, and with honest police officers. These relationships will continue.

The prosecution is the result of a joint investigation by the Federal Bureau of Investigation (FBI), and the Pennsylvania State Police (PSP) which plays an integral role in investigations of fraud and public corruption. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.

Luzerne County citizens, as well as employees and officials of local government are urged to come forward and provide relevant information about this case and others involving corruption in local government by contacting the Scranton FBI Office at 570-344-2404.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.”

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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.


Terrorism Federal Criminal Trial is Underway in Riverside Federal Court

August 19, 2014

Los Angeles Times on August 18, 2014 released the following:

Terrorism trial underway for men accused of trying to join Al Qaeda

By MATT HANSEN

The trial of two Inland Empire men accused of being involved in a terrorist plot resumes in Riverside federal court this week, as jurors weigh whether the defendants’ alleged plans to travel overseas and join Al Qaeda posed a true threat or were overstated by investigators.

Sohiel Omar Kabir, 36, of Pomona and Ralph Kenneth Deleon, 25, of Ontario face five counts of conspiracy, including plans to provide support to overseas terrorist groups, commit terrorist acts overseas and receive Al Qaeda training.

Prosecutors allege that Kabir, a naturalized American citizen who was born in Afghanistan, persuaded Deleon, a Filipino citizen and legal resident of the United States, and two other men to travel to Afghanistan to fight alongside the Taliban and later join Al Qaeda.

The other men, Miguel Alejandro Santana, 23, of Upland and Arifeen David Gojali, 23, of Riverside, are scheduled to testify against the remaining two defendants, prosecutors said.

Prosecutors said Deleon, Santana and Gojali were arrested in November 2012 as they prepared to leave California to rendezvous with Kabir, who had relocated to Afghanistan. Kabir was seized by American soldiers in Afghanistan and returned to the United States to face charges.

The men’s purported plot was documented by a confidential informant who became close with the men and recorded audio and video of them as they spoke openly of their plans to join terrorist organizations overseas, according to the prosecution’s trial memorandum, which lays out its plans for the case.

Prosecutors also allege that the men began exercise regimens, visited firing ranges and renewed their passports in preparation for traveling to Afghanistan. Deleon dropped out of college and sold his car to raise money for the trip, prosecutors say.

“Kabir told Deleon and Santana that he made contacts in Afghanistan and that upon their arrival the three men would join the ‘Students,’ referring to the Taliban, before joining the ‘professors,’ referring to Al-Qa’ida,” the trial memo states.

Defense attorneys argue that overzealous federal authorities misinterpreted the men’s sometimes immature actions as true threats, and said their clients never intended to actually join or assist terrorist groups.

“This was a very carefully planned out plot by the government from the investigation stage onwards,” said David Thomas, who represents Deleon. “It was a manufactured prosecution, is our argument. They had their target two years ago and executed.”

On Friday, the second day of testimony, witnesses included a firearms range manager and a Customs and Border Protection inspector who testified about the men’s actions before their arrest.

Nolan Avery, a manager at LAX Firing Range in Inglewood, testified that Deleon, Santana and a third man, whom defense attorneys identified in court as the confidential informant, visited the range in September 2012 and shot an AR-15 rifle and a Glock 17 pistol.

Avery said he remembered the men because they seemed unenthusiastic and had traveled from the Inland Empire to go to the range, passing other shooting ranges closer to home.

“Usually there is a sense of camaraderie in groups,” he said. “This was kind of weird because they separated right away.”

Later testimony placed Gojali picking up a passport in Los Angeles in November 2012, and Santana returning to the U.S. after a visit to Mexico with his grandmother in January 2012.

A Border Patrol agent testified that Santana crossed into the U.S. carrying anti-American propaganda, including literature from radical imam Anwar al-Awlaki and a copy of the jihadist magazine Inspire. Defense attorneys argued that Santana was also carrying unrelated books that explored conspiracy theories and the occult.

A recurring topic during testimony was the role of the government’s informant. After the prosecution showed video from a hidden camera reportedly taken by the informant of Deleon firing weapons at the range, defense attorneys challenged the evidence, saying that only the informant could verify the authenticity of the video. The defense has subpoenaed the informant to appear.

Although U.S. District Judge Virginia Phillips determined that the video evidence was admissible, the confidential informant remains a sticking point in the case.

The Los Angeles branch of CAIR, the Council on American-Islamic Relations, an advocacy organization, has called for the public to share any additional details they may know about the informant.

The organization alleges that the frequent federal use of informants in terrorism cases can lead to entrapment of suspects.

“We’ve seen other communities targeted by the FBI with informants sent into communities and mosques,” said Fatima Dadabhoy, senior civil rights lawyer for CAIR in Los Angeles. “I think what’s important about not just this case but this issue in general is to make sure that when we are doing terrorism cases, we’re not using improper tactics.”

The trial is set to resume Tuesday.”

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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.


“End Of The Silk Road: FBI Says It’s Busted The Web’s Biggest Anonymous Drug Black Market”

October 3, 2013
Ross William Ulbricht
“Ross William Ulbricht, alleged to be the “Dread Pirate Roberts” behind Silk Road’s drug black market.”

Forbes on October 2, 2013 released the following:

By: Andy Greenberg, Forbes Staff

“After two and a half years running the booming anonymous narcotics bazaar known as the Silk Road, the drug kingpin who called himself the Dread Pirate Roberts has allegedly been unmasked.

On Wednesday, the FBI announced that they arrested 29-year-old Ross William Ulbricht, the Silk Road’s accused administrator, in the Glen Park branch of the San Francisco Public Library at 3:15 Pacific time on Tuesday. Ulbricht has been charged with engaging in a money laundering and narcotics trafficking conspiracy as well as computer hacking. The Department of Justice has seized the website of the Silk Road’s as well as somewhere between $3.5 to 4 million in bitcoins, the cryptographic currency used to buy drugs on the Silk Road.

Earlier this summer, the Silk Road’s administrator calling himself by the Dread Pirate Roberts pseudonym gave his first extended interview to Forbes over the same Tor anonymity network that has hosted the Silk Road and its users since the site’s creation in early 2011.

Forbes estimated at the time that the Silk Road was earning between $30 and $45 million in annual revenue. In fact, the number may have been far larger: The criminal complaint against Ulbricht states that the Silk Road turned over $1.2 billion in revenue since its creation, and generated $80 million commissions for its operator or operators.

“This is supposed to be some invisible black market bazaar. We made it visible,” says an FBI spokesperson, who asked not to be named. “When you interviewed [Ulbricht], he said he would never be arrested. But no one is beyond the reach of the FBI. We will find you.”

The FBI hasn’t yet revealed how it managed to track down Ulbricht in spite of his seemingly careful use of encryption and anonymity tools to protect his identity and those of his customers and vendors who visited Silk Road as often as 60,000 times per day. The FBI spokesperson declined to offer details about the investigation, but told me that “basically he made a simple mistake and we were able to identify him.”

One clue mentioned in the criminal complaint against Ulbricht was a package seized from the mail by U.S. Customs and Border Patrol as it crossed the Canadian border, containing nine seemingly counterfeit identification documents, each of which used a different name but featured Ulbricht’s photograph. The address on the package was on 15th street in San Francisco, where police found Ulbricht and matched his face to the one on the fake IDs.

The complaint also mentions security mistakes, including an IP address for a VPN server used by Ulbricht listed in the code on the Silk Road, mentions of time in the Dread Pirate Roberts’ posts on the site that identified his time zone, and postings on the Bitcoin Talk forum under the handle “altoid,” which was tied to Ulbricht’s Gmail address.

In his conversation with me, which took place on July 4th, the Silk Road administrator calling himself the Dread Pirate Roberts espoused Libertarian ideals and claimed that the use of Bitcoin in combination with Tor had stymied law enforcement and “won the State’s War on Drugs.”

He also said he intended to bring his marketplace into mainstream awareness, and had recently launched the first non-Tor website for the Silk Road known as SilkRoadlink, which remains online. “Up until now I’ve done my best to keep Silk Road as low profile as possible … letting people discover [it] through word of mouth,” Roberts says. “At the same time, Silk Road has been around two and a half years. We’ve withstood a lot, and it’s not like our enemies are unaware any longer.”

One remaining mystery in Ulbricht’s criminal complaint is whether he was in fact the only–or the original–Dread Pirate Roberts. In his July interview with me, Roberts said that he had in fact inherited the Dread Pirate title from the site’s creator, who may have also used the same pseudonym.

As of around noon Wednesday, the Silk Road’s forum for users also remained online, and the site’s loyal users were grieving over the Silk Road takedown and mourning the arrest of Ulbricht, whose apparent persona as the Dread Pirate Roberts was a widely respected figure in the online drug community.

“jesus christ this is TERRIBLE!!” wrote one user named danceandsing. Others suggested that users migrate to other, smaller but similar anonymous black markets such as Black Market Reloaded–another popular alternative to the Silk Road known as Atlantis went offline last week, with its administrators saying only that they shut down the business for “security reasons.”

Another user blamed the Dread Pirate Roberts’ carelessness, including his decision to raise his profile by giving an interview to Forbes. “Sorry, but when he gave the fucking Forbes interview I imagined this would be coming,” wrote a user calling himself Dontek. “Should have kept all this shit on the down low rather than publicly bragging about it.”

Ulbricht’s LinkedIn profile describes his background as a graduate researcher in materials science at Pennsylvania State University, as well as an undergrad degree in physics from the University of Texas at Dallas.

According to Ulbricht’s grandmother, Martha Ulbricht, who was reached by phone, the younger Ulbricht received a full scholarship to UT Dallas. “Ross has always been an upstanding person as far as we know and a rather outstanding person,” she said.

Ulbricht’s half-brother Travis Ulbricht, also reached by phone in Sacramento, described him as an “exceptionally bright, smart kid” who had no criminal history to his knowledge.

Asked what he did for a living before moving to San Francisco, Ulbricht’s grandmother said, “Something on the computer…a little technical for me. He was good with computers.””

Federal Criminal Case 1: New York Federal Criminal Complaint
Northern District of California, Case No.: 3:13-mj-71218-JCS-1 (Proceedings on Out-of-District Criminal Charges Pursuant to Rules 5(c)(2) and (3)) and lists the following case on the docket sheet: Southern District of New York, Case No.: 13-mj-2328

21 U.S.C. 846 – Drug Conspiracy
18 U.S.C. 1030(a)(2) – Computer Hacking Conspiracy
18 U.S.C. 1956(a)(1)(A)(i) and (B)(i) – Money Laundering Conspiracy

Ross William Ulbricht New York Criminal Complaint

Federal Criminal Case 2: Maryland Federal Indictment
District of Maryland, Case No.: 1:13-cr-00222-CCB-1

21 U.S.C. 846 – Conspiracy to Distribute a Controlled Substance
18 U.S.C. 1512(a)(1)(C) – Attempted Witness Murder; 18 U.S.C. 2 – Aiding and Abetting
18 U.S.C. 1958(a) – Use of Interstate Commerce Facilities in Commission of a Murder-for-hire; 18 U.S.C. 2 – Aiding and Abetting

Ross William Ulbricht Maryland Superseding Indictment

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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.


Suspended West Virigina Judge Michael Thornsbury Due in Federal Court for a Plea Hearing on a Federal Conspiracy Charge

October 2, 2013

San Francisco Chronicle on October 2, 2013 released the following:

“CHARLESTON, W.Va. (AP) — A suspended Mingo County judge is due in court for a plea hearing on a federal conspiracy charge.

Prosecutors say Circuit Judge Michael Thornsbury is expected to plead guilty Wednesday in U.S. District Court in Charleston.

Thornsbury is accused of participating in a scheme to protect the reputation of Mingo County Sheriff Eugene Crum from revelations he’d bought drugs from a campaign sign-maker.

Prosecutors allege Thornsbury and others offered a lighter sentence if the man fired his lawyer and hired one they preferred.

Crum died in April in an unrelated shooting.

In exchange for a guilty plea, prosecutors say they would dismiss charges against Thornsbury in a separate federal case. Prosecutors say Thornsbury repeatedly tried to frame his secretary’s husband for false crimes to eliminate him as a romantic rival.”

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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 Owner of Los Angeles Medical Clinic Management Company Mikran “Mike” Meguerian Indicted by a Federal Grand Jury Alleging a $13 Million Medicare Fraud Scheme

October 1, 2013

The Federal Bureau of Investigation on September 30, 2013 released the following:

“WASHINGTON—The former owner of a Los Angeles medical clinic management company has been indicted for his role in a $13 million scheme to defraud Medicare.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte, Jr. of the Central District of California, and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.

Mikran “Mike” Meguerian, 36, of Glendale, California, was indicted in the Central District of California on one count of conspiracy to commit health care fraud and five counts of health care fraud, each of which carries a maximum penalty of 10 years in prison upon conviction. Meguerian was arrested on September 26, 2013, and the indictment was unsealed following his initial appearance in federal court on September 27, 2013.

According to court documents, Meguerian owned Med Serve Management, a medical clinic management company located in Van Nuys, California. From approximately 2006 through February 2009, he allegedly engaged in a conspiracy to commit health care fraud, in part through the operation of Med Serve. According to court documents, Meguerian oversaw several medical clinics that generated prescriptions and other medical documents for medically unnecessary power wheelchairs and other durable medical equipment (DME). Meguerian and his co-conspirators then sold the prescriptions to DME supply companies, knowing that the prescriptions were fraudulent. Court documents allege that, based on these fraudulent prescriptions, the DME supply companies then submitted false and fraudulent claims to Medicare.

Court documents allege that fraudulent prescriptions from Meguerian’s clinics were instrumental in generating approximately $13.6 million in fraudulent claims to Medicare, and Medicare paid approximately $7.6 on those claims.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorneys Fred Medick and Blanca Quintero of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.”

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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.


Former Owner of Los Angeles Equipment Supply Company Valery Bogomolny Indicted by a Federal Grand Jury Alleging a $4 Million Medicare Fraud Scheme

October 1, 2013

The Federal Bureau of Investigation on September 30, 2013 released the following:

“WASHINGTON—A former owner of a Los Angeles medical equipment supply company has been indicted for allegedly engaging in a $4 million Medicare fraud scheme.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte, Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.

Valery Bogomolny, 41, of Los Angeles, California, was indicted in the Central District of California on six counts of health care fraud, each of which carries a maximum penalty of 10 years in prison upon conviction. Bogomolny was taken into custody on September 27, 2013, and the indictment was unsealed following his initial appearance in federal court that afternoon.

According to court documents, Bogomolny was the owner and president of Royal Medical Supply, a durable medical equipment (DME) supply company located in Los Angeles. From approximately January 2006 through October 2009, he allegedly engaged in a scheme to commit health care fraud through the operation of Royal by providing medically unnecessary power wheelchairs and other DME to Medicare beneficiaries and submitting false and fraudulent claims to Medicare. Court documents allege that Bogomolny knew the prescriptions and medical documents were fraudulent and that some of the beneficiaries did not receive the DME, yet he certified to Medicare with the submission of each claim that the DME was received and was medically necessary.

Bogomolny, through Royal, allegedly submitted approximately $4 million in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid Royal approximately $2.7 million on those claims.

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

The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorney Fred Medick of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.”

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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.


“High-profile cases drained federal court system, judge says”

September 20, 2013

The Boston Globe on September 20, 2013 released the following:

“By Milton J. Valencia

A series of high-profile cases have begun to financially tax the federal court system in Massachusetts as the system is absorbing budget cuts and is expecting still more hardships, the chief judge of the US District Court in Boston said in a letter released Thursday.

US District Court Chief Judge Patti B. Saris said in a letter to US Senator Elizabeth Warren and addressing the state’s congressional delegation that budget cuts have started to stretch court security and staff, and services such as drug and mental health treatment and legal representation.

“Any further budget cuts will hurt public safety, the administration of justice, and the independence of the judiciary,” Saris wrote.

She added, “The financial difficulties have hit this district at a time when we have experienced some of our most difficult, high-profile criminal cases.”

Those cases include the trials of Tarek Mehanna, who was convicted two years ago in a closely watched terrorism proceeding, and James “Whitey” Bulger.

The notorious gangster’s court-appointed lawyers recently submitted a $2.6 million bill for their work since his arrest in June 2011, and that does not include their work on his two-month trial this past summer.

In addition, Saris noted, the district is set to begin the high-profile legal proceedings for Dzhokhar Tsarnaev, the suspected Boston Marathon bomber, and is also handling proceedings related to the state drug lab scandal, in which defendants are seeking to have their cases reheard based on possibly tainted evidence.

Further taxing the court are civil liability cases related to the meningitis outbreak involving the New England Compounding Pharmacy.

“These high-profile cases have taxed court staff and security resources,” the judge said. The financial woes have been attributed in large part to the so-called sequester of federal funds, or the $85 billion in across-the-board cuts that went into effect on March 1.

Asked about the letter, Warren also criticized the budget cuts. “The sequester is stupid, and it’s hurting families here in Massachusetts and across the country,” she said. “We’ve seen how across-the-board federal spending cuts are hitting powerfully important programs like Head Start and Meals on Wheels and slashing critical investments in infrastructure and research. It’s time to get rid of this senseless and irresponsible policy.”

In her letter, Saris argued that funding for federal public defenders and probation officials has been hit hardest.

Lawyers and staff in the Federal Public Defender Office, which represents indigent defendants, had to take 14 furlough days in 2013.

The lawyers had to suspend work on Fridays throughout the summer, and withdrew participation in the drug court program. Positions have also gone unfilled.

Miriam Conrad, the head public defender in Boston, said, “We’re going to keep doing what we can and maintain quality representation, but it’s going to be a challenge to maintain our caseload.”

Meanwhile, the Probation Office has had to cut drug addiction and mental health treatment for defendants on supervised release, threatening to increase their recidivism.”

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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.


FBI: “Former Studio Assistant to Jasper Johns Charged in Manhattan Federal Court in $6.5 Million Scheme to Sell Stolen Johns Works”

August 16, 2013

The Federal Bureau of Investigation (FBI) on August 15, 2013 released the following:

“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), today announced the unsealing of an Indictment charging James Meyer, a former assistant to artist Jasper Johns, with selling 22 works that he stole from Johns’ studio in Sharon, Connecticut. Meyer was arrested yesterday morning at his home in Salisbury, Connecticut, and appeared in federal court in Hartford that afternoon.

Manhattan U.S. Attorney Preet Bharara said, “As alleged, James Meyer is the latest in a long line of thieves who sought to make millions through a fraud on the art world. Meyer, a former assistant to artist Jasper Johns, allegedly stole and resold a number of pieces he was charged with maintaining. His arrest underscores our commitment to exposing deception in this lucrative industry and holding fraudsters to account.”

FBI Assistant Director in Charge George Venizelos said, “As alleged, James Meyer exploited his position of trust to steal repeatedly from his long-time employer. That his employer is a renowned American artist only made the crime more lucrative. To convert the artworks to cash, Meyer allegedly engaged in a serial scheme to deceive the buyers of the art and the gallery through which they bought it.”

According to the allegations in the Indictment unsealed yesterday in Manhattan federal court:

Meyer was a studio assistant for Johns for over 25 years and was responsible for, among other things, maintaining a studio file drawer containing pieces of art that were not yet completed by Johns and not authorized by Johns to be placed in the art market.

Between September 2006 and February 2012, Meyer removed 22 individual pieces of art from the studio file drawer he was responsible for maintaining, and from elsewhere in Johns’ studio, and transported those pieces from the studio in Sharon to an art gallery located in Manhattan for the purpose of selling those works without the knowledge or permission of Johns. Meyer represented both to the owner of the gallery (the “gallery owner”) and to potential purchasers that these pieces had been given to him as gifts by Johns when, in fact, that was not true.

As part of his scheme to defraud, Meyer provided sworn, notarized certifications both to the gallery owner and to buyers stating that each piece was an authentic Johns work, that the art had been given to him directly by Johns, that he was the rightful owner of the piece, and that he had the right to sell that particular work. In addition, Meyer conditioned the sale of each of these works on the signed agreement by the purchaser that the art would be kept private for at least eight years, during which time the piece would not be loaned, exhibited, or re-sold.

Meyer also created fictitious inventory numbers for these pieces to give the impression that they were finished works that were authorized by Johns to be sold in the art market. Additionally, and to facilitate certain sales, Meyer created fake pages that he thereafter inserted into a ledger book of registered pieces of art maintained at Johns’ studio, and which he subsequently photographed, to give additional assurances to prospective buyers about the provenance, or history of ownership, of a particular piece.

During the course of his almost six-year scheme, the gallery owner sold 22 works of art on Meyer’s behalf for a total of approximately $6.5 million, of which $3.4 million was remitted directly to Meyer in sales proceeds.

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Meyer, 51, of Salisbury, Connecticut, is charged with one count of interstate transportation of stolen property, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. U.S. District Judge Alvin K. Hellerstein is assigned to the case.

Mr. Bharara praised the FBI for its outstanding work in the investigation.

This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Christopher D. Frey is in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendant is 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

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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.


“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.


“‘Real Housewives of New Jersey’ stars due back in court to enter plea on federal fraud charges”

August 14, 2013

Fox News on August 14, 2013 released the following:

Associated Press

“Two stars of “The Real Housewives of New Jersey” are due back in court.

Teresa and Guiseppe “Joe” Giudice are scheduled to enter a plea before a federal judge Wednesday afternoon. Lawyers say both are expected to plead not guilty to federal fraud charges.

They were charged last month in a 39-count indictment with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud.

The couple are accused of exaggerating their income when applying for loans, then hiding their improving fortunes in a bankruptcy filing.

They are also accused of submitting fraudulent mortgage and loan applications and fabricating tax returns and W2 forms.

Prosecutors allege Joe Giudice also failed to file federal tax returns from 2004 to 2008.”

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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.