FBI: “Former NBA Player and CEO of the George Group Convicted on all Counts in $2 Million Ponzi Scheme”

October 2, 2013

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

“TRENTON, NJ— C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, was convicted today on all counts on which he was indicted in connection with his role in orchestrating a $2 million investment fraud scheme, U.S. Attorney Paul J. Fishman announced.

The jury deliberated four hours before convicting George, 45, of Newark, of four counts of wire fraud after a three-week trial before U.S. District Judge Mary L. Cooper. George was immediately remanded into federal custody to await sentencing, which is scheduled for Jan. 16, 2014.

According to documents filed in this case and evidence presented at trial:

George, a former player for the New Jersey Nets and Milwaukee Bucks professional basketball teams, held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey. George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.

Based on George’s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm’s and his personal bank account. Instead of using investments to fund real estate development projects as promised, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s Sweet 16, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the IRS, and traffic tickets. The defendant gave money to family members and friends. He also spent $2,905 for a reality video about himself (a “sizzle reel” for “The Tate Show,” is available on YouTube). The George Group had virtually no income-generating operations.

Each of the wire fraud counts on which he was convicted is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors of the USPIS, under the direction of Postal Inspector in Charge Maria L. Kelokates; and criminal investigators with the U.S. Attorney’s Office, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov.”

Federal Wire Fraud Crimes – 18 U.S.C. § 1343

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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.


“Federal prosecutor to announce dozens of violent crime arrests Friday”

May 10, 2013

The Kansas City Star on May 10, 2013 released the following:

“BY MARK MORRIS
The Kansas City Star

A 10-month Kansas City undercover investigation culminated this week in the arrests of dozens of criminal suspects in one of the largest violent crime sweeps in western Missouri history, authorities said.

U.S. Attorney Tammy Dickinson is expected to announce today the indictment of 61 people, most already convicted felons, on a host of weapon and drug charges. State authorities are considering whether to prosecute in state court up to a dozen more cases generated by the federal operation, officials said.

The investigation, which involved up to 50 officers and agents each day, began in late June and focused exclusively on “violent individuals using firearms,” said Marino F. Vidoli, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Kansas City office.

“We know who the violent individuals are in this community,” Vidoli said in a recent interview. “We know their backgrounds and it helps us target our law enforcement resources.”

Federal grand juries recently returned the indictments under seal. About 150 Kansas City police officers, federal agents and deputy U.S. marshals began making the arrests Tuesday.

Dickinson said the arrests and prosecutions are closely linked to work of the Kansas City No Violence Alliance, known as KC NoVa, that is designed to reduce shootings and killings in the city.

The NoVa effort has begun to identify individuals and groups most likely to commit violent crimes. Authorities offer social services, such as substance abuse treatment or job training, and promise swift prosecution if they do not leave the criminal life.

“This is shock and awe,” Dickinson said. “We’re sending a signal to the NoVa network that we’re going to come get you if you turn your back on us.”

As of late Thursday, authorities had arrested 28 people. Nineteer others already were in state or federal custody. Agents and officers continued to search for 14 fugitives, officials said.

Investigators recovered 222 firearms during the investigation, Vidoli said, including handguns, sawed-off shotguns, long guns and assault rifles. Some had been stolen; others had been defaced by having serial numbers filed off, he said.

And, after investigators ran ballistics evidence from the guns through an ATF database, they linked some of the weapons to other violent crimes, including homicides, Dickinson said.

Law enforcement records obtained by The Kansas City Star during the investigation showed that agents and police set up an undercover base in a high-crime area where they purchased drugs and guns.

The undercover location was equipped for audio and video recording, according to the records.

Throughout the summer, fall and winter, suspects offered to sell the undercover officers firearms, some of which turned out to have been stolen, court records said. About two-thirds of the sellers already had been convicted of felony crimes, investigators learned.

About half still were on probation or parole.

Others allegedly violated lesser known weapons charges, such as being illegal drug users or illegal aliens in possession of firearms.

One defendant purportedly possessed a .380-caliber pistol while facing a Jackson County burglary charge.

The investigation’s most serious charges have been laid against six men arrested as part of an ATF operation aimed at stopping deadly home invasions.

According to ATF records obtained by The Star during the investigation, the suspects agreed to participate in a robbery of a drug stash house and met several times with undercover agents to plan the heist.

An undercover ATF agent said recently that no stash house actually existed.

All six suspects face drug and robbery conspiracy charges and a firearms count, and could receive maximum life sentences if convicted.

The extensive planning behind the investigation extended to preparations for this week’s arrests and prosecutions. Just after taking office in January, Dickinson warned that prosecutors in units other than the Violent Crimes Strike Force should count on helping out with an expected influx of gun cases.

Judges, pretrial officers and even detention centers were warned about a surge of new defendants.

Court records show that at least three separate grand juries, meeting in April and early May, began churning out secret indictments, which remained under seal until this week.

Starting Tuesday morning, those arrested were herded through magistrate courtrooms in the federal courthouse for first appearances before judges. Prosecutors asked that about 95 percent of the new defendants be jailed without bond pending trial, Dickinson said.

“That has taken a huge amount of coordination with the courts, with the marshals and with federal probation and parole,” Dickinson said. “We were pleased with the cooperation and were welcomed with open arms.”

Following the news conference today, Dickinson and Vidoli plan to join Kansas City Police Chief Darryl Forte and Jackson County Prosecutor Jean Peters Baker for individual meetings with targets of the NoVa initiative who did not appear at an April meeting to hear an offer of social services.

Organizers had invited 120 people to the meeting, but only about three dozen appeared.

“We’re going out to speak to individuals and let them know they’re on our radar screens,” Dickinson said. “This (investigation) helps drive home the point.””

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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 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.


Seventeen Members of an Alleged North Carolina Racketeering Enterprise Indicted on Investment Fraud, Mortgage Fraud, and Related Charges

October 25, 2012

The Federal Bureau of Investigation (FBI) on October 24, 2012 released the following:

“Fourteen Others to Plead Guilty on Related Charges; Total of 81 Defendants Have Been Charged to Date in Operation Wax House

CHARLOTTE, NC— A federal indictment charging 17 defendants in Charlotte and elsewhere with racketeering, investment fraud, mortgage fraud, bank bribery, and money laundering was unsealed today in U.S. District Court, announced the U.S. Attorney’s Office for the Western District of North Carolina. Fourteen additional defendants have agreed to plead guilty in connection with the latest round of criminal charges resulting from Operation Wax House, a mortgage fraud investigation that began in the Western District of North Carolina in 2007.

Chris Briese, Special Agent in Charge of the FBI, Charlotte Division; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI); and Elaine Marshall, North Carolina Secretary of State join the U.S. Attorney’s Office in making today’s announcement.

The federal racketeering indictment was returned by a federal grand jury sitting in Charlotte on July 26, 2012, but remained sealed until today. The indictment alleges that the 17 defendants and others were part of a criminal organization (the Enterprise) that operated principally in the cities of Charlotte and Waxhaw, North Carolina, and stole more than $75 million from investors and mortgage lenders. The indictment was unsealed following the arrests this week of 11 members of the Enterprise, including three of its leaders, James Tyson, Jr.; his mother, Carrie Tyson; and Victoria Hunt. James Tyson, Jr. was arrested on Sunday, October 21, 2012, at Washington Dulles International Airport upon arrival in the United States from a flight originating in Dakar, Senegal, which is Tyson’s last known residence.

The racketeering charges contained in the indictment are the result of Operation Wax House, an ongoing investigation into securities and mortgage fraud targeting communities in the Mecklenburg and Union Counties of North Carolina’s Western District. The investigation was conducted jointly by the FBI and IRS-CI, along with the North Carolina Secretary of State, Securities Division.

According to allegations contained in the unsealed indictment:

The Enterprise, which operated from about 2005 through the present, engaged in an extensive pattern of racketeering activities, consisting of investment fraud, mortgage fraud, bank fraud, money laundering, and distribution of illegal drugs. Members of the Enterprise also bribed bank officials and committed perjury before the grand jury. The co-conspirators targeted professional athletes and doctors as well as their personal and professional acquaintances and convinced them to invest in a series of sham corporations controlled by the Enterprise. The co-conspirators stole over $27 million from more than 50 investor victims, including money that the investor victims were induced to obtain as loans from financial institutions. Rather than investing victims’ money as promised, the Enterprise diverted victims’ money to finance its mortgage fraud operations and to support its members’ lifestyles. For example, members of the Enterprise used the stolen money to purchase luxury vehicles, take lavish vacations, organize extravagant dinners and parties, and invest in other sham businesses or investments. In addition, the conspirators made Ponzi-style payments to other victims.

The Enterprise’s mortgage fraud operations involved acquiring luxury homes in neighborhoods in Charlotte and Waxhaw. One member of the Enterprise would agree with a builder to purchase a property at the “true price.” The Enterprise would then arrange for a buyer to purchase the property at an inflated price. In most circumstances, the buyer would agree to purchase the property in his or her own name and sign whatever documents were necessary, in exchange for a hidden kickback. The builder would sell the property at the inflated price, the lender would make a mortgage loan on the basis of that inflated price, and the difference between the inflated price and the true price would be extracted at closing by the Enterprise.

The 17 defendants charged in today’s indictment and the 14 defendants who have agreed to plead guilty bring the total number of defendants charged to date in connection with Operation Wax Houseto to 81. Charged in the indictment are:

  • Ramin Amini, 44, of Tehran, Iran, is charged with racketeering conspiracy, mortgage fraud, and money laundering conspiracy. Role: Leader and promoter in the scheme. Status: Fugitive.
  • Vonetta Tyson Barnes, 38, of Wahiawa, Hawaii, is charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors, and money laundering conspiracy. Role: Promoter. Status: Released following arrest and initial appearance.
  • Travis Bumpers, 36, of Charlotte, is charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, bank bribery, and money laundering conspiracy. Role: Promoter. Status: Fugitive.
  • Glynn Hubbard, 35, of Charlotte, is charged with racketeering conspiracy, mortgage fraud, and money laundering conspiracy. Role: Promoter. Status: In federal custody, pending release on conditions, following arrest and initial appearance.
  • Victoria Hunt, 36, of Charlotte, is charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, and money laundering. Role: Leader and promoter. Status: Currently in federal custody pending detention hearing.
  • Toby Hunter, 37, of Fort Mill, South Carolina, is charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors, and money laundering. Role: Promoter. Status: Released following arrest and initial appearance.
  • Steven Jones, 44, of Waxhaw, is charged with securities fraud, wire fraud to defraud investors, and money laundering conspiracy. Role: Promoter. Status: Currently in federal custody pending detention hearing.
  • John McDowell, 40, of Dunn, North Carolina, is charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, and money laundering. Role: Promoter. Status: Arrest warrant issued.
  • Kurosh Mehr, 52, of Charlotte, is charged with racketeering conspiracy, mortgage fraud, and money laundering. Role: Promoter and buyer. Status: Currently in federal custody pending detention hearing.
  • Ann Tyson Mitchell, 61, of Charlotte, is charged with racketeering conspiracy, mortgage fraud, and money laundering. Role: Facilitator. Status: Released following arrest and initial appearance.
  • John Wayne Perry, Jr., 31, of Charlotte, is charged with racketeering conspiracy, and money laundering conspiracy. Role: Promoter. Status: Released following arrest and initial appearance.
  • Donte Thorogood, 34, of Durham, North Carolina, is charged with racketeering conspiracy, mortgage fraud, and money laundering. Role: Promoter. Status: To appear for an initial appearance pursuant to a summons.
  • Carrie Tyson, 58, of Winterville, North Carolina, is charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, and money laundering. Role: Leader and promoter. Status: Released following arrest and initial appearance.
  • James Tyson, Jr., 32, of Dakar, Senegal, is charged with racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, bank bribery, and money laundering. Role: Leader and promoter. Status: Currently in federal custody pending detention hearing.
  • James Tyson, Sr., 61, of Charlotte, is charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors, and money laundering. Role: Promoter. Status: Currently in federal custody pending detention hearing.
  • Nathan Shane Wolf, 41, of Charlotte, is charged with racketeering conspiracy, mortgage fraud and money laundering. Role: Real estate agent. Status: To appear for an initial appearance pursuant to a summons.
  • Purnell Wood, 41, of Palmyra, New Jersey, is charged with racketeering conspiracy, mortgage fraud, and money laundering. Role: Promoter. Status: Arrest warrant issued.

Today, the U.S. Attorney’s Office also filed criminal bills of information and plea agreements against 14 other defendants who acted as mortgage brokers, real estate agents, straw buyers, and a home builder in the scheme. They acknowledge taking part in the mortgage fraud conspiracy and have agreed to plead guilty. They are:

  • Crystal Goodson-Hudson, 44, of Kannapolis, North Carolina, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Mortgage broker. Status: To appear for initial appearance upon a summons.
  • Shannon Lee (Somer Bey), 47, of Charlotte, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Real estate agent. Status: To appear for initial appearance upon a summons.
  • Robert Mahaney, 52, of Ridgeway, South Carolina, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Mortgage broker. Status: To appear for initial appearance upon a summons.
  • George Moore, 44, of Charlotte, is charged with mortgage fraud conspiracy. Role: Buyer. Status: To appear for initial appearance upon a summons.
  • Kevin Smith, 46, of Oxford, North Carolina, is charged with mortgage fraud conspiracy. Role: Buyer. Status: To appear for initial appearance upon a summons.
  • Holly Pasut, 56, of Charlotte, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Real estate agent. Status: To appear for initial appearance upon a summons.
  • Danielle Vaughn, 34, of Greenbelt, Maryland, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Mortgage broker. Status: To appear for initial appearance upon a summons.
  • Mary Vaughn, 58, of Charlotte, is charged with mortgage fraud conspiracy. Role: Buyer. Status: To appear for initial appearance upon a summons.
  • Jamaine Wallace, 41, of Conyers, Georgia, is charged with mortgage fraud conspiracy. Role: Buyer. Status: To appear for initial appearance upon a summons.
  • Phillip Wellington, 46, of Charlotte, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Promoter. Status: To appear for initial appearance upon a summons.
  • William Wellington, 30, of Amityville, New York, is charged with mortgage fraud conspiracy. Role: Buyer. Status: To appear for initial appearance upon a summons.
  • Marcia Williams, 36, of York, South Carolina, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Mortgage broker. Status: To appear for initial appearance upon a summons.
  • Sean Williams, 41, of Orangeburg, South Carolina, is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Mortgage broker. Status: To appear for initial appearance upon a summons.
  • Mark, Wittig, 41, of Matthews, North Carolina, is charged with mortgage fraud conspiracy. Role: Builder. Status: To appear for initial appearance upon a summons.

The conspiracy to participate in the racketeering activities charge carries a maximum term of 20 years in prison and a $250,000 fine or twice the gross profits or other proceeds. The securities fraud charge carries a maximum term of 20 years in prison and a $250,000 fine. The bank fraud charge carries a maximum term of 30 years in prison and a $1 million fine. The wire fraud charge carries a maximum term of 20 years in prison and a $250,000 fine. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a $500,000 fine or twice the amount of criminally derived proceeds. The bank bribery conspiracy charge carries a maximum term of five years in prison and a $250,000 fine.

An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In addition, the guilty plea of any other person is not relevant to the guilt of any indicted person.

Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI, the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, and the Securities Division of the North Carolina Secretary of State. The prosecution for the government is being handled by Assistant United States Attorneys Kurt W. Meyers and Maria K. Vento and Special Assistant United States Attorney Kevin M. Harrington.

The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit http://www.stopfraud.gov.

The names and case numbers of all the defendants charged to date in Operation Wax House are listed below, organized by their alleged role in the scheme.

Attorneys and Paralegals
Crawford/Mallard, Michelle 3:11cr374
Gates, Christine 3:09cr100
Norwood, Kelli, 3:09cr162
Rainer, Demetrius 3:08cr239/241
Smith, Troy, 3:08cr264

Bank Insiders
Brown, Jamilia, 3:10cr124
Eason, Danyelle, 3:10cr116
Henson, Vic. F., 3:10cr124
Jackson, Mitzi, 3:11cr374
Ramey, Bonnie Sue, 3:10cr124

Builders and Sellers
Fink, James, 3:11cr374
Jackson, Jennifer, 3:09cr241
Smith, Kelvis, 3:12cr238
Viegas, Jeffrey, 3:12cr298
Wittig, Mark, 3:12cr335
Wood, Gary, 3:09cr208

Facilitators and Financiers
Hickey, Denis, 3:09cr103
McClain, Landrick, 3:10cr124
Mitchell, Ann Tyson, 3:12cr239
Panayoton, Sherrill, 3:11cr176
Taylor, Alicia Renee, 3:10cr124
Wilson, Willard, 3:09cr161

Buyers
Banks, Arketa, 3:12cr297
Hillian, Kirk, 3:12cr83
Mathis, Charles, 3:10cr1
Mobley, Sarena, 3:10cr124
Moore, George, 3:12cr337
Richards, Dan, 3:10cr119
Smith, Kevin, 3:12cr341
Tyler, Glenna, 3:11cr200
Vaughn, Mary, 3:12cr329
Wallace, Jamaine, 3:12cr330
Wellington, William, 3:12cr333

Notary Public
Willis, Anthony, 3:09cr218

Appraiser
Darden, Clinton 3:10cr108

Mortgage Brokers
Bradley, Bonnette, 3:12cr299
Clarke, Linda, 3:10cr120
Flood, Ericka, 3:10cr124
Goodson-Hudson, Crystal, 3:12cr339
Mahaney, Robert, 3:12cr34-0
Scagliarini, Coley, 3:11cr374
Staton, Walter, 3:10cr113
Vaughn, Danielle, 3:12cr329
Williams, Marcia, 3:12cr334
Williams, Sean, 3:12cr336

Woods, Joseph, 3:09cr178

Real Estate Agents
Belin, Chris, 3:11cr374
Clark, Christina, 3:09cr44
Lee, Shannon, 3:12cr338
Pasut, Holly Hardy, 3:12cr331
Wolf, Nathan Shane, 3:12cr239
Wood, Gary, 3:09cr208

Promoters
Amini, Ramin, 3:12cr239
Barnes, Vonetta Tyson, 3:12cr239
Bumpers, Travis, 3:12cr239
Carr, Stephen, 3:10cr124
Clarke, Reuben, 3:10cr120
Coleman, Gregory, 3:10cr118
Hitchcock, Jimmy, 3:11cr374
Hubbard, Glynn, 3:12cr239
Hunt, Victoria, 3:12cr239
Hunter, Toby, 3:12cr239
Jones, Steven, 3:12cr239
Jones, Tyree, 3:10cr230
Marshall, Michael, 3:07cr283
McDowell, John, 3:12cr239
McPhaul, Elizabeth, 3:10cr114
Mehr, Kurosh, 3:12cr239
Mitchell, Ann Tyson, 3:12cr239
Perry, John Wayne, Jr., 3:12cr239
Perry, Kim, 3:10cr25
Phillips, Rick, 3:10cr115
Sharreff-El, Drew, 3:10cr124
Sherald, Kiki, 3:10cr117
Simmons, Aaron, 3:09cr240
Snead, Todd, 3:10cr124
Staton, Lisa, 3:10cr113
Thorogood, Donte, 3:12cr239
Tyson, Carrie, 3:12cr239
Tyson, James, Jr. 3:12cr239
Tyson, James, Sr., 3:12cr239
Wellington, Phillip, 3:12cr332
Wood, Purnell, 3:12cr239″

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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.


Federal Authorities Arrest Maverick County Commissioner Rodolfo Heredia and Two Others in Alleged Connection with a Money Laundering and Bulk Cash Smuggling Scheme

October 19, 2012

The Federal Bureau of Investigation (FBI) on October 18, 2012 released the following:

“Scheme involved the sale of vehicle to a known associate of the Los Zetas Drug Trafficking Organization In Eagle Pass this morning, federal agents arrested Maverick County Commissioner Rodolfo Bainet Heredia and two accomplices charged in connection with a money laundering and bulk cash smuggling scheme announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.

A four–count federal grand jury indictment, returned yesterday and unsealed today, charges Heredia, age 54; 62-year-old Jose Luis Aguilar of Eagle Pass; and 28-year-old David Gelacio of Eagle Pass with one count each of conspiracy to commit money laundering; aiding and abetting money laundering; conspiracy to commit bulk cash smuggling; and aiding and abetting bulk cash smuggling.

According to the indictment, on January 4, 2011, Heredia had Aguilar travel to a ranch in Mexico owned by a known associate of the Los Zetas Drug Trafficking Organization for the purpose of selling Heredia’s Ford F-250 King Ranch truck for $13,000. Following the sale, at Heredia’s bidding, Aguilar and Gelacio, carrying $7,000 cash and $6,000 cash, respectively, crossed the money from Mexico into the United States via the Eagle Pass Port of Entry. They are alleged to have divided and concealed the money in order to avoid a reporting requirement at the Port of Entry.

Upon conviction, each faces up to 20 years in federal prison for each money laundering-related charge and up to five years in federal prison for each bulk cash smuggling-related charge. All three remain in federal custody pending a detention hearing at 1:30 p.m. on Tuesday in Del Rio before U.S. Magistrate Judge Collis White.

This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, and the Texas Department of Public Safety. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the government. An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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.


Three Coachella Valley Residents Arrested for Alleged Detroit-Area Ponzi Scheme After Successful Joint Operations with Cathedral City and Palm Springs Police

September 15, 2012

The Federal Bureau of Investigation (FBI) on September 14, 2012 released the following:

“Three individuals wanted on federal fraud charges alleging they victimized hundreds while operating an alleged $25 million investment scheme were arrested in the Coachella Valley, announced Timothy Delaney, Special Agent in Charge of the FBI’s Los Angeles Field Office.

Mr. Delaney made the announcement on behalf of the FBI’s Detroit Field Office, the Cathedral City Police Department, and the Palms Springs Police Department.

An indictment filed in March 2012 in the Eastern District of Michigan charged five defendants with conspiracy to commit wire fraud for their alleged roles in an investment scheme where hundreds of victims were allegedly defrauded of millions of dollars. Three of the defendants are Coachella Valley residents. Agents with the FBI’s Palm Springs Resident Agency, part of the FBI’s Los Angeles Division, assisted the FBI’s Detroit Field Office in locating the three Coachella Valley-based defendants following the indictment. Agents in Palm Springs requested assistance from the Cathedral City (California) and Palm Springs (California) Police Departments in locating and apprehending the fugitives.

Ronald Lee Brito, 61, and Bonnie Brito, 66, both of Rancho Mirage, California, were taken into custody on August 10, 2010, by officers with the Cathedral City Police Department after a safely executed vehicle-stop in Cathedral City.

Thomas Winston Moore, 68, of Palm Springs, California, was arrested at his residence on September 8 by officers with the Palm Springs Police Department.

The 64-count indictment alleges defendants participated in the Ponzi scheme between 2005 and 2012 and outlines an investment scheme where victims were promised lucrative returns on their investments in, among other things, valuable minerals extracted from a gold mine in Arizona. The indictment alleges the defendants used various corporate names, including Infinity Trading, LLC; GetMoni.com; and PJM

Kingman Mine to lure approximately 500 investors. The government has stated that the scheme brought in investments totaling more than $25 million.

Ronald and Bonnie Brito had an initial appearance in California and in the Eastern District of Michigan once they were returned to Detroit. Ronald Brito was remanded to federal custody and Bonnie Brito was released on bond.

Thomas Moore had an initial appearance in U.S. District Court in Riverside on Monday, September 10, and was remanded to federal custody pending removal to Detroit.

This investigation is being conducted by the FBI’s Detroit Field Office and will be prosecuted by the United States Attorney’s Office in the Eastern District of Michigan.

The fugitive investigation involving defendants Ronald Brito, Bonnie Brito, and Thomas Winston Moore was conducted by officers with the Cathedral City Police Department; Palm Springs Police Department; and agents with the FBI in Palm Springs and Detroit. The United States Attorney’s Office in Los Angeles (Central District of California) provided considerable assistance during the California portion of this investigation.”

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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.


U.S. prosecutors to seek death penalty in Rhode Island shooting

June 19, 2012

Chicago Tribune on June 18, 2012 released the following:

“June 18, 2012 | Zach Howard | Reuters

(Reuters) – The U.S. federal government will seek the death penalty against a man accused of robbing and killing a gas station manager in Rhode Island if the suspect is convicted of murder at trial, federal prosecutors said on Monday.

The move follows a rare face-off between the state and federal authorities over capital punishment, which was ended in Rhode Island in 1984. The state’s governor has resisted handing the suspect, Jason Pleau, over to federal custody.

Pleau, 34, is accused in the 2010 shooting death of David Main in the small city of Woonsocket, Rhode Island, according to the FBI, as Main attempted to make a bank deposit from the gas station he managed.

Pleau was indicted that same year by a federal grand jury for murder, while he was already serving an 18-year sentence in state prison for parole violations. The federal government asked for custody of Pleau under a federal law that governs the transfer of prisoners between states and the U.S. government.

Rhode Island Governor Lincoln Chafee, a political independent, initially resisted, asserting the state’s policy of opposing the death penalty. But a federal appeals court in Boston last month ordered him to hand Pleau over to federal authorities.

Prosecutors filed Monday’s notice of intent to seek the death sentence at U.S. District Court in Providence, specifically on a count charging Pleau with possessing, carrying and discharging a firearm during a crime that caused Main’s death.

Responding to the decision to seek the death penalty, Robert Mann, an attorney for Pleau, told Reuters: “Obviously, we are very disappointed.”

Prosecutors, in the filing, said Pleau had a history of other acts of serious violence, had demonstrated a low rehabilitative potential, and displayed a lack of remorse.

Richard Dieter, executive director of the Death Penalty Information Center, said it was “unusual” for the federal government to pursue a death penalty case in a state opposed to it, especially since the crime does not involve terrorism or another matter of national concern.

“It’s surprising as the state has said it could handle the case and the defendant said he’d plead guilty and get life without parole – it could have been done differently,” said Dieter.

The Boston-based U.S. Court of Appeals for the 1st Circuit ruled in May that keeping Pleau in state custody shielded him from capital punishment, and would undermine the federal government’s ability to prosecute federal crimes.

A conference on the case’s status was scheduled for Friday at U.S. District Court.

(Additional reporting by Joseph O’Leary; Editing by Barbara Goldberg and Cynthia Johnston; Desking by G Crosse, Andrew Hay)”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

————————————————————–

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

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

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


Judge approves release on bail for Texas horse trainer in alleged Zetas plot

June 19, 2012

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

“By Associated Press, Published: June 18

AUSTIN, Texas — A federal judge ruled Monday that a Texas horse trainer charged with conspiring to launder money for Mexico’s powerful Zetas drug cartel should be released on bail, rejecting the prosecution’s argument that the threat of cartel reprisals against him was so severe it could harm the surrounding community.

Eusevio Maldonado-Huitron remained in custody because federal prosecutors said they will appeal the decision. Hours later, however, federal prosecutors filed a motion to withdraw their appeal, clearing the way for Maldonado-Huitron’s release soon.

Maldonado-Huitron ran a horse farm in Bastrop County southeast of Austin and is among 15 people charged with helping the Zetas launder millions of dollars through quarter horse operations in Oklahoma, Texas, New Mexico and California.

After listening to a string of witnesses in a bail hearing that stretched over two days, U.S. Magistrate Judge Andrew Austin said he was setting conditions for Maldonado-Huitron’s release, but he didn’t immediately make them public.

Prosecutors conceded that they had no evidence Maldonado-Huitron was violent but said there was a risk he could flee to Mexico and disappear given his family ties in that country. However, the greater danger in releasing him from federal custody, they argued, was the threat posed by the Zetas targeting him and his family — and by extension, the community at large.

Assistant U.S. Attorney Michelle Fernald said she was limited on what she could say in open court prior to trial. But she argued that Maldonado-Huitron should remain in custody given the “nature and seriousness of the danger to any member of the community,” due to both “the nature of this organization and the seriousness of the potential retaliation, not just to him but to his family members and anyone else.”

That argument was based on testimony Friday from FBI agent Haskell Wilkins, who said the defendant was a serious flight risk due to the possibility he could be targeted by the Zetas.

But Maldonado-Huitron’s attorney, assistant federal Public Defender Jose Gonzalez-Falla, countered Monday that “we haven’t heard anything to indicate” his client’s guilt. He said prosecutors’ arguments of “’trust us, it’s in the indictment’” is not enough.

Gonzalez-Falla said Maldonado-Huitron is an illiterate horse trainer who poses no threat to the Zetas. An associate of Maldonado-Huitron’s from El Paso testified Monday that the trainer was actually dismissed weeks before his arrest because his horses were underperforming, which the defense attorney said meant his client was now even less important in the eyes of the cartel.

“Why on earth would they hit my client?” he asked. “What has he done? He’s a horse trainer.”

Also testifying Monday was Maldonado-Huitron’s brother, Jesus, who when asked if he knew what the Zetas were answered through an interpreter, “just what you hear on TV.”

“From what they say, they killed a lot of people in Mexico and then they toss the bodies out,” the elder Maldonado-Huitron testified.

Gonzalez-Falla said his client had a right to get paid for his services no matter who hired him, adding that the government’s arguments were based only on “a bunch of rumors about receiving some money.” He said prosecutors feared the ferociousness of any possible reprisals, “just because they’re the Zetas and they’re bad and they kill people and take their heads off.”

“What does that have to do with my client?” he asked.

Austin sided with the defense, saying Maldonado-Huitron’s family might be targeted, but that the threat was no less acute if the defendant was in prison. He said the only risk to the lager community he could see might be “someone’s horse might get beat in a race if Mr. Huitron trains the horse.”

Austin also said he appreciated the flight risk but couldn’t imagine the defendant fleeing to Mexico given how powerful the Zetas are there.

Maldonado-Huitron is “frankly, a lot better off in the United States than in Mexico, which is the only place I can see he’d flee to,” the judge 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 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.