“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

————————————————————–

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.


Ex-Enron Executive Jeffrey Adam Shankman Indicted by a Federal Grand Jury Alleging Bankruptcy Charges and Concealment of Assets

October 1, 2013

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

“HOUSTON— A federal grand jury has returned a 24-count indictment against Jeffrey Adam Shankman with bankruptcy fraud and concealment of assets, announced United States Attorney Kenneth Magidson.

The indictment was returned today. Shankman is expected to turn himself in to federal authorities and make an initial appearance before a U.S. magistrate judge in the near future.

According to the indictment, Shankman engaged in a scheme to conceal assets to defraud creditors and the trustee who was appointed to collect and dispose of all Shankman’s assets in his bankruptcy estate.

A debtor is required to complete several documents to carry out the bankruptcy process, which consist of a petition which contains summary information about the debtor’s financial condition, various bankruptcy schedules, and a statement of financial affairs. That statement contains, among other things, detailed information about the debtor’s assets, liabilities, recent payments to creditors, past and current income, and anticipated future income. The documents are required to be signed and certified under penalty of perjury that the information contained in them is true and correct. A debtor is required to disclose all creditors to the bankruptcy court so that the court can provide notice to the creditors of the filing of the bankruptcy petition. One purpose of this requirement is to allow the creditors the opportunity to participate in the bankruptcy proceeding and protect their interests.

Shankman, 46, filed for Chapter 7 bankruptcy in October 2008. The indictment alleges he concealed, transferred, and sold various pieces of fine art, decorative art, and jewelry and other assets without the knowledge, consent, and approval of the trustee or the bankruptcy court. The approximate value of the assets was $952,125, according to allegations.

Shankman was head of the Global Markets Division of Enron in 2001 before its collapse and served on the Art Committee of Enron.

In order for the bankruptcy system to work for all parties, it is imperative for the debtor to be truthful and forthright in all aspects of the bankruptcy process. The bankruptcy system is based on an honor system; the debtor agrees to provide all the necessary information requested by the trustee and to assist the trustee in collecting all assets of debtors and comply with the court’s orders to obtain the relief desired under the chapter the case was filed.

If convicted, he faces up to five years in federal prison and a possible $250,000 fine of on each count.

The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Quincy L. Ollison.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.”

————————————————————–

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 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.


“Prosecutors Expect More Arrests in Art-Fraud Scheme”

August 19, 2013

The New York Times on August 19, 2013 released the following:

By WILLIAM K. RASHBAUM

“Federal prosecutors handling the case against an obscure art dealer charged in one of the most audacious art frauds in recent memory told a judge on Monday that they expected more arrests in the continuing investigation. They also said they expected the case against the art dealer to be resolved soon.

The disclosures came at the arraignment of the dealer, Glafira Rosales, in United States District Court in Manhattan.

Ms. Rosales was arrested on money laundering and tax charges in connection with the scheme in May. She was arraigned Monday before Judge Katherine P. Failla on new charges contained in a superseding indictment that was handed up last week by a grand jury. She pleaded not guilty during the five-minute proceeding.

During the arraignment, Judge Failla asked one of the prosecutors, Jason P. Hernandez, an assistant United States attorney, if more arrests were expected.

“Yes,” he said.

Mr. Hernandez also said that the case against Ms. Rosales, which was the result of a lengthy F.B.I. investigation, was to be resolved in the coming weeks. He did not elaborate.

A lawyer for Ms. Rosales, Steven R. Kartagener, declined to comment on the new charges.

The charges issued last week revealed for the first time that all of the 63 phony art works at the heart of what prosecutors have described as a sweeping fraud scheme stretching over more than a decade were created by a single painter. The indictment identified him only as a painter who lives in Queens and said he had produced the canvases — purported to be by the hands of Modernist masters like Willem de Koonig, Jackson Pollock, Mark Rothko, Robert Motherwell and others — in his house and garage.

People briefed on the matter said he was Pei-Shen Qian, a struggling 73-year-old Chinese artist who came to the United States in 1981.

While he was paid a few thousand dollars for the canvases, they were later sold as works by Modernist masters for more than $80 million.

The indictment and other court papers said the painter who created the fake canvases was discovered selling his own art on the streets of Lower Manhattan in the early 1990s by Ms. Rosales’s boyfriend and business partner, an art dealer named Jose Carlos Bergantiños Diaz, who recruited him to make paintings in the style of celebrated Abstract Expressionists. The indictment does not name Mr. Bergantiños Diaz, but his identity is confirmed by other court records.

It is unclear whether Ms. Rosales has begun cooperating with the federal authorities since her arrest in May. But while the prosecutors handling her case initially argued then that she posed “a substantial flight risk” and that no bail conditions could assure her return to court, convincing a judge to detain her without bail, last week, after the new indictment was handed up, the prosecutors did not oppose her release on a $2.5 million bond.

Julie Bolcer, a spokeswoman for the office of Preet Bharara, the United States attorney in Manhattan, and an F.B.I. spokesman, James M. Margolin, declined to comment. Mr. Kartagener has refused to characterize his discussions with the prosecutors on the case, Mr. Hernandez and Daniel W. Levy.”

————————————————————–

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 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.””

————————————————————–

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

————————————————————–

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 Mortgage Broker Indicted for Defrauding First Coweta Bank”

July 19, 2013

The Federal Bureau of Investigation (FBI) on July 18, 2013 released the following:

“GAINESVILLE, GA— Amy B. Williams, 48, of Buford, Georgia, has been indicted by a federal grand jury on charges arising out of a scheme to defraud First Coweta Bank.

“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 78 banks failing—including First Coweta Bank, the bank this defendant is charged with defrauding.”

According to United States Attorney Yates, the indictment, and other information presented in court: Williams was the sole owner of United International Mortgage (UIM) Corporation in Buford, Georgia, and was in the business of arranging construction loans for residential builders.

In April 2007, UIM closed three construction loans for one of its customers, Mainstreet Builders Inc. The loans were intended to finance the cost of constructing three new houses in Suwanee, Georgia. The loans, which totaled more than $1.7 million, were funded by First Coweta Bank.

Williams directed an unindicted co-conspirator to forge signatures on loan documents and caused those documents to be faxed to First Coweta Bank. The bank then wire transferred the loan proceeds to an account controlled by Williams. Williams was required to hold the money in trust for the builder and to disburse the money to the builder on a draw basis, as work on the three houses progressed. Instead, she used more than $1.1 million of this money to pay off her personal debt at another bank and wire transferred $60,000 into her personal checking account. After converting First Coweta Bank’s money to her own use, Williams attempted to cover up her crime by e-mailing false documents and misleading photos to the bank.

Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The actions of Ms. Williams, as alleged in the indictment, directly led to the failure of the First Coweta Bank and, as such, clearly demonstrates the serious nature and impact of those actions. The FBI will continue to coordinate its bank fraud investigations with its various law enforcement partners in an effort to effectively identify, investigate, and present for prosecution those individuals who do so much harm to the banking industry.”

Jason T. Moran, Special Agent in Charge, Federal Deposit Insurance Corporation-Office of Inspector General Southeast Region, said, “The Federal Deposit Insurance Corporation is committed to its partnerships with others in the law enforcement community as we address mortgage fraud and bank fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable.”

Williams was arraigned today before United States Magistrate Judge J. Clay Fuller in Gainesville, Georgia.

The indictment charges one count of conspiracy and six counts of bank fraud. Each count carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by special agents of the FBI and the FDIC Office of Inspector General.

Assistant United States Attorney Russell Phillips is prosecuting the case.”

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

————————————————————–

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.


Bank Employee, Edna Edith Sepulveda, Indicted by a Federal Grand Jury for Allegedly Committing Federal Bank Fraud Crimes

July 17, 2013

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

“Bank Employee Charged with Bank Fraud

MCALLEN, TX— Edna Edith Sepulveda, 39, of McAllen, has surrendered to federal authorities following the return of an indictment alleging she perpetrated more than $200,000 in bank fraud, United States Attorney Kenneth Magidson announced today.

The indictment was returned July 9, 2013, and she made her initial appearance today, at which time she was permitted release upon posting bond.

According to the indictment, Sepulveda was a former employee of Inter National Bank of McAllen. Beginning in January 10, 2006, she allegedly devised a scheme to take money from Inter National Bank by fraudulent means. She then placed the funds into the accounts of her parents allegedly intended for her own personal use, according to the allegations. The total amount of loss to Inter National Bank is $232,351.19.

If convicted, Sepulveda faces up to 30 years in federal prison, as well as a $1 million fine.

This case is being investigated by the FBI with the cooperation of Inter National Bank. Assistant United States Attorney Jason C. Honeycutt is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.”

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

————————————————————–

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 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 Texas Department of Criminal Justice (TDCJ) Parole Officers Charged with Allegedly Accepting Payoffs

July 1, 2013

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

“HOUSTON—Four parole officers from two Texas Department of Criminal Justice (TDCJ) offices in Houston have been indicted for accepting payoffs from parolees, United States Attorney Kenneth Magidson announced today, along with FBI Special Agent in Charge Stephen L. Morris; Brad Livingston, TDCJ Executive Director; and Bruce Toney, Inspector General of TDCJ-Office of Inspector General (OIG).

“Public officials suspected of corruption can undermine our trust and confidence in government and can tarnish virtually every aspect of American society,” said Morris. “Despite the fact that the vast majority of our country’s public officials are honest hard-working Americans who have dedicated their lives to serve the American people, there are unfortunately a small number who allegedly make decisions for the wrong reasons. The FBI will continue to pursue public corruption as a top priority and encourages anyone with information about potential wrongdoing by a public official to please contact the FBI.”

April L. Carson, 35, of Missouri City, and Crystal M. Washington, aka Crystal Bureau, 52, of Houston, were employed at the TDCJ office located at 2410 Hamilton Street in Houston; while Darlene J. Muhammad, 42, and Ernie Rogers, 56, both of Houston, worked at the Houston TDCJ Parole Office at 8345 Telephone Road.

The four were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge George Hanks at 2:00 p.m. this afternoon.

“These arrests are the result of an effective partnership with TDCJ-OIG and other law enforcement entities,” said Livingston. “We fully support their efforts to investigate, arrest, and ultimately prosecute employees that are suspected of breaking the law.”

The indictment, unsealed today, indicates all the defendants are responsible for the supervision of inmates within the state of Texas. Included in this responsibility is the supervision of parolees who travel between states and the supervision of their activities to ensure they do not engage in criminal conduct.

Each parole officer named in the indictment allegedly chose to accept money from a parolee in order to allow the parolee to continue his/her illegal narcotics trafficking and distribution activity. Specifically, the indictment alleges each officer accepted payoffs from parolees in the amount of $1,000 to $3,000 on at least one occasion in order to allow them to continue their criminal behavior.

“The alleged actions of these employees can erode the public’s confidence and damage the integrity of parole officers across the state that perform their duties faithfully every day,” said Toney. “We are committed to rooting out suspected corruption within the criminal justice system.”

If convicted, each faces up to 20 years’ imprisonment and a possible $250,000 fine.

Anyone suspecting criminal activity or abuse within the TDCJ can make a report by calling the toll-free TDCJ waste/fraud abuse hotline at 1-866-372-8329.

The operation was a combined public corruption task force effort conducted by the FBI, Texas Rangers, Houston Police Department and Office of Inspector General for the Texas Department of Criminal Justice. The case is being prosecuted by Southern District of Texas with the assistance of the Harris County District Attorney’s Office.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.”

————————————————————–

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 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.