Credit Union Manager Victoria Rozanski Charged with Allegedly Embezzling More Than $100,000

May 2, 2013

The Federal Bureau of Investigation (FBI) on May 1, 2013 released the following:

“PITTSBURGH— A Lawrence County woman has been indicted by a federal grand jury in Pittsburgh on a charge of embezzlement from a credit union, United States Attorney David J. Hickton announced today.

The one-count indictment, returned on April 30, named Victoria Rozanski, 59, of 807 Jefferson Ave. in Ellwood City, Pennsylvania, as the sole defendant.

According to the indictment, from in or around January 2003 until in or around May 2009, Rozanski, who was the manager of the Holy Redeemer Parish Federal Credit Union in Ellwood City, embezzled in excess of $100,000 from the credit union.

The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A 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:

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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.


Federal Grand Jury Indicted former Agriculture Commissioner Richie Farmer Alleging Misappropriating State Funds and Solicitation

April 22, 2013

timesunion.com on April 22, 2013 released the following:

Farmer indicted on felony fraud charges

ROGER ALFORD, Associated Press, By ROGER ALFORD and BRETT BARROUQUERE, Associated Press

LEXINGTON, Ky. (AP) — A federal grand jury has indicted former Agriculture Commissioner Richie Farmer on four felony counts of misappropriating state funds and one of solicitation.

The indictment unsealed Monday in Lexington charges Farmer with using his state position to obtain thousands of dollars’ worth of gifts, hotel rooms, clothing and computers. It also charges him with hiring friends who did little or no work for the state.

“Throughout his tenure, Farmer wrongfully used public funds and KDA resources to obtain goods and services for himself and his family,” the 13-page indictment said.

Farmer, a former high school and college basketball icon, was agriculture commissioner from 2004 to 2012.

If convicted on all counts, he faces a maximum of 10 years in prison and a $250,000 fine.

“There’s no surprise in there,” said J. Guthrie True, Farmer’s attorney.

True was planning a news conference for later Monday, he said.

Arraignment is scheduled for April 30.

Along with the criminal charges, federal prosecutors want Farmer to give up $450,000 in either cash or assets as proceeds of the alleged illegal activity.

The indictment said Farmer, as head of the Southern Association of State Departments of Agriculture, used funds for an association conference in 2008 to purchase 25 Remington rifles, 25 rifle cases, 52 embossed Case knives and 50 personalized cigar boxes. Some of the gifts were given to attendees. Prosecutors say Farmer took the excess gifts for himself.

The grand jury also accused Farmer of using Agriculture Department funds to benefit his family and friends, including naming at least three people as “special assistants” who did little or no work for the department. Farmer directed the “special assistants” to perform personal tasks for him on work hours, including building a basketball court at his home, installing flooring in his attic, and organizing his personal effects, according to the indictment.

Farmer approved the salaries and overtime of the assistants who performed the work, the grand jury said.

Farmer is also accused of having Agriculture Department employees drive him on personal errands, babysit his children, mow his lawn and transport his dog.

In a separate action, Farmer also faces 42 ethics charges accusing him of misusing state funds and state employees during his time in office.

Farmer was a shooting guard for the University of Kentucky’s Wildcats basketball team from 1988 to 1992. The team was known as “The Unforgettables.””

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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.


“Federal prosecutors charge IRS workers with theft of government benefits”

April 18, 2013

Fox News on April 18, 2013 released the following:

Associated Press

“MEMPHIS, Tenn. – Twenty-four current and former Internal Revenue Service employees have been charged with stealing government benefits, federal prosecutors said Wednesday.

The IRS employees were indicted on charges that they illegally received more than $250,000 in benefits including unemployment insurance payments, food stamps, welfare, and housing vouchers, the U.S. attorney’s office in Memphis said in a news release.

Prosecutors say 13 of the IRS employees face federal charges of lying about being unemployed while applying for or recertifying their government benefits. They each face up to five years in prison if convicted of making false statements to receive the benefits.

Eleven others face state charges of theft of property over $1,000, a felony that can carry a sentence of probation up to 12 years in prison if they are convicted.

“While these IRS employees were supposed to be serving the public, they were instead brazenly stealing from law-abiding American taxpayers,” U.S. Attorney Edward Stanton said in a statement

Those charged range in ages from 28 to 64. They include residents of Memphis, Jackson, Tenn., and Southaven, Miss.

“The taxes that we pay are supposed to support our nation and assist individuals in need, not free-loaders who are gaming the system,” said Amy Weirich, the district attorney for Shelby County.

Prosecutors scheduled, then canceled, a news conference to announce the indictments. U.S. attorney’s office spokesman Rodney King said the cancellation was due to “unforeseen events,” without elaborating.

King would not say whether the cancellation was related to the investigation into two letters sent to President Barack Obama and a Mississippi senator that indicated they contained poisonous ricin.

The FBI says the letters were postmarked Memphis.”

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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.


Four Jefferson County Men Indicted on Federal Criminal Charges Alleging Federal Mail Fraud Crimes

March 29, 2013

The Federal Bureau of Investigation (FBI) on March 27, 2013 released the following:

“BEAUMONT, TX— Four Port Arthur, Texas men have been indicted and arrested in connection with a mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

An indictment was returned by a federal grand jury on March 6, 2013, charging Christopher Thomas, 41; Lawrence Thomas, 42; Haleem Collins, 35; and Quarmi Garlington, 25, with conspiracy to commit mail fraud.

The indictment, which was unsealed today, alleges that from November 6, 2006 to March 8, 2012, the defendants conspired with each other to defraud numerous auto insurance companies by submitting fraudulent insurance claims for personal injury and economic loss through the U.S. Postal Service. According to the indictment, the defendants repeatedly staged automobile collisions in Port Arthur after having purchased policies on the vehicles involved. Once the defendants either actually crashed the vehicles or staged a collision, they would contact police and assume the roles of drivers and passengers for emergency personnel. The indictment also alleges that the defendants would use aggressive driving tactics to induce automobile accidents with other unsuspecting drivers. Following these collisions, the defendants would falsely claim to be injured and submit, by means of the mail, fraudulent accident claims.

The defendants were taken into custody and made initial appearances this week before U.S. Magistrate Judge Zack Hawthorn.

If convicted of the conspiracy charge, the defendants each face up to 20 years in federal prison.

This case is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Port Arthur Police Department; and the National Insurance Crime Bureau and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.

A grand jury indictment is not evidence of guilt, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt 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

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 FBI Agent and Others Face Federal Criminal Charges Alleging Conspiracy, Honest Services Wire Fraud, Obstruction of Justice, and Obstructing an Agency Proceeding

October 22, 2012

Deseret News on October 22, 2012 released the following:

“Former FBI agent charged in military contract bribery case

By Dennis Romboy, Deseret News

SALT LAKE CITY — A former FBI agent faces federal charges for allegedly trying to derail a Utah-initiated investigation of a business partner with whom he was pursuing lucrative government security and energy contracts.

A federal grand jury in Salt Lake City returned an 11-count indictment against Robert G. Lustyik Jr., 50, of Sleepy Hollow, N.Y.; Michael L. Taylor, 51, of Harvard, Mass.; and Johannes W. Thaler, 49, of New Fairfield, Conn. Each is charged with one count of conspiracy, eight counts of honest services wire fraud, one count of obstructing justice and one count of obstructing an agency proceeding.

Lustyik used his position in an attempt to stave off a criminal investigation into Taylor, owner of Boston-based American International Security Corp., according to the indictment. Authorities say the former agent used Thaler, a childhood friend, as a go-between.

The indictment charges that Taylor, a former Green Beret, offered Lustyik $200,000 in cash, money purportedly for the medical expenses of Lustyik’s minor child, and a share in the proceeds of several anticipated contracts worth millions of dollars.

In hearing in U.S. District Court in Salt Lake City last month, a federal prosecutor quoted Taylor telling Lustyik in a message, “If they don’t put me in jail, I’ll make you filthy, stinkin’ rich.”

According to the indictment, Lustyik, a 20-year FBI veteran, was assigned to counterintelligence work in White Plains, N.Y., until September 2012. The indictment states that from at least June 2011, the three men had a business relationship pursuing contracts for security services, electric power and energy development in the Middle East and Africa.

In September 2011, Taylor learned of a Utah-based federal criminal investigation into whether Taylor, his business and others bribed an Army officer to obtain a $54 million military training contract in Afghanistan.

Taylor and Christopher Harris, of St. George, were charged in a 72-count indictment in August with bribing a public official, accepting of a bribe by public official, money laundering and wire fraud. Taylor remains in jail in Utah pending trail.

Court records say it was Harris’ banking habits in St. George that opened the case for federal investigators three years ago.

Harris, who worked for Taylor as a manager in Afghanistan, was paid about $17.4 million by American International, according to court records. He tried to hide the money by structuring his transactions at America First Credit Union in St. George so he wouldn’t be detected by the bank’s warning mechanisms, the indictment states.

Lustyik impeded the investigation by designating Taylor as an FBI confidential source and texting and calling the Utah investigators and prosecutors to dissuade them from charging Taylor, according to the indictment. He also interviewed witnesses and potential targets in the Utah investigation, authorities say.”

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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.


Father and son plead guilty in multimillion-dollar federal bribery scheme

May 18, 2012

The Washington Post on May 18, 2012 released the following:

“By Clarence Williams

A former program manager for the Army Corps of Engineers and his son pleaded guilty Thursday to federal charges in a scheme that paid out more than $30 million worth of bribes and kickbacks as payments for steering multimillion dollar government contracts, federal prosecutors said.

Kerry F. Khan, 54, of Alexandria, pleaded before Judge Emmet G. Sullivan in the U.S. District Court in the District to charges of bribery and conspiracy to commit money laundering, officials said in a statement.

“Today, the ringleader of the largest bribery and bid-steering scheme in the history of federal contracting accepted responsibility for his crimes,” U.S. Attorney for the District Ronald Machen said in the statement. “For his shocking abuse of his position of power, Kerry Khan faces more than two decades in prison.”

Kahn’s son, Lee A. Kahn, 31, of Fairfax also pleaded guilty to a charge of conspiracy to commit money laundering. The elder Khan worked for the Army Corps of Engineers from 1994 until he was arrested by federal authorities in October 2011. His position gave him authority to place orders for products and services through federal contracts, and he also certified that work orders were completed, officials said.

The father and son were among four men arrested in October on charges of conspiring to commit bribery and wire fraud. Authorities accused the men of inflating invoices during a four-year period and then collecting tens of millions of dollars for themselves and co-conspirators.

Prosecutors said Kerry Khan signed a statement of offense that said that in or around 2006, he and colleagues agreed to work together to obtain government contracts for corrupt contractors who would reward them with bribes. Authorities said their investigation continues, but they have found eight people to have have been part of this scheme.

Among others, Kerry Khan and Michael A. Alexander, also an Army Corps of Engineers program manager, worked with Harold F. Babb, a contractor, on their plot to use a company called EyakTek as a vehicle for channeling contracts awarded by the Army Corps of Engineers. EyakTek then hired subcontractors that submitted fraudulently inflated estimates or prices for equipment and services, authorities said.

The subcontractors kicked back a significant portion of the excess funds to Kerry Khan and Alexander as bribes for keeping the money flowing their way, officials said.

Prosecutors said Khan and his son admitted to establishing multiple corporations and shell companies to hide the money and purchase real estate, including several houses and condos. Lee Khan managed the portfolio of properties and automobiles purchased using the bribe money, by leasing the homes to tenants or selling vehicles, officials said.

A sentencing date has not been set for either man. Kerry Khan faces a maximum 15-year sentence for the bribery charge and up to 20 years in prison for the conspiracy charge. Babb and Alexander pleaded guilty to federal charges earlier this year.

The men will remain held through the sentencing, officials said.”

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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 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.


Two Physicians Indicted in an Alleged Conspiracy to Defraud the IRS by Concealing Their Income and Filing False Tax Returns

March 29, 2012

The Federal Bureau of Investigation (FBI) on March 28, 2012 released the following:

“GREENBELT, MD—A federal grand jury has indicted cardiologist Abdul H. Fadul, age 75, and Ali Al-Attar, age 49, a doctor of internal medicine, of Alexandria and McLean, Virginia, respectively, today on charges of conspiracy to defraud the United States by attempting to hide their true income and aiding in the preparation of false tax returns.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Eric C. Hylton of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.

“This case should serve as a warning to anyone who is tempted to cheat on their taxes,” said U.S. Attorney Rod J. Rosenstein. “The IRS can and will pursue evidence of tax fraud and bring federal criminal charges.”

According to the indictment, Fadul and Al-Attar held joint ownership interests in nine medical practices located in Maryland and Virginia, with each medical practice having its own bank account. For tax years 2004 and 2005, Fadul and Al-Attar engaged an accounting firm in Maryland to prepare income tax returns for themselves and the joint medical practices. The defendants advised the accounting firm that it was standard practice for each of the joint medical practices to deposit the business receipts it generated, including payments from patients and insurance companies, into its own bank account. On March 26, 2004, Fadul and Al-Attar opened a joint bank account in their own names, into which they began depositing business receipts without telling their accountants.

The five-count indictment alleges that from March 26, 2004 through July 12, 2006, Fadul and Al-Attar conspired to defraud the U.S. by concealing their total income. Specifically, Fadul and Al-Attar deposited a total of over $500,000 in checks from patients and insurance companies for medical services rendered into the joint account in their names, rather than into the bank account of the medical practice that had generated the payment. The defendants then allegedly spent the money on personal items including real estate and other personal investments.

The indictment further alleges that Fadul opened a joint account with his wife and a separate account in his name only, which he then used to deposit payments from patients and insurance companies for services rendered by Fadul at medical practices he owned, including Cardio Vascular Center LLL, which Fadul owned with his wife. Fadul used the funds in both the joint account he owned with his wife and his personal account for his own enjoyment, including a $155,000 payment to the Fisher Island Club in Florida.

Fadul and Al-Attar concealed these personal accounts from the accounting firm, causing the accounting firm to prepare 2004 and 2005 income taxes for the doctors and their wives that fraudulently omitted the income the doctors had deposited into their personal accounts. Fadul and Al-Attar are both charged in the conspiracy and with aiding in the preparation of false tax returns for tax year 2005. Fadul is also charged with aiding in the preparation of false tax returns for tax years 2006 and 2007.

Fadul and Al-Attar face a maximum of five years in prison for the conspiracy. Al-Attar faces a maximum of three years in prison for aiding in the preparation of a false tax return and Fadul faces a maximum of three years in prison on each of three counts of aiding in the filing of false tax returns. No court appearance has been scheduled.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI, and HHS Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Daren Firestone and Assistant United States Attorney David I. Salem, who are prosecuting the case.”

US v Abdul H. Gadul and Ali Al-Attar – Federal Criminal Indictment

18 U.S.C. § 371

26 U.S.C. § 7206

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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

————————————————————–

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

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

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