Federal Prosecutors, Defense Attorney Agree to Extend Deadline for Federal Indictment of Arlington Strip Club Owner

May 10, 2012

Star-Telgram on May 9, 2012 released the following:

“Prosecutors, defense attorney agree to extend deadline for indictment of Arlington strip club owner

BY PATRICK M. WALKER

FORT WORTH — Federal prosecutors and the attorney for the owner of an Arlington strip club who is accused of targeting Arlington Mayor Robert Cluck in a murder-for-hire plot have agreed to push back the deadline for an indictment.

Assistant U.S. Attorney Chris Wolfe and J. Warren St. John, who represents Flashdancer Cabaret owner Ryan Walker Grant, agreed to extend the deadline by 71 days to July 19, according to court filings. The filings say the two sides are conducting discovery as well as negotiations that could lead to a plea bargain.

Under the Speedy Trial Act, federal indictments must be filed within 30 days of the arrest. Federal agents detained Grant on April 9, meaning Wednesday would have been the deadline.

St. John declined to comment through his office. Wolfe did not immediately respond to a request for comment.

Mark Daniel, a Fort Worth attorney not related to the case, said the deadline extension isn’t surprising, given that a public official was involved and federal agents moved quickly to make an arrest.

“Due to the complexity and the seriousness of the case, it’s not entirely unexpected,” he said, emphasizing that he doesn’t know the details behind the move.

Hit-man accusation

Grant is accused of trying to hire hit men from Mexico through an intermediary to kill Cluck and Dallas attorney Tom Brandt, who represents Arlington in cases involving sexually oriented businesses.

The intermediary was an informant for the Drug Enforcement Administration.

FBI Special Agent Matthew Wilkins testified at a detention hearing April 20 that several days after Grant contacted the informant and expressed interest in having Cluck and Brandt killed, he gave a final green light April 9 to proceed with the slaying of Cluck.

“Let’s do the mayor. Let’s hit him tomorrow,” Wilkins testified that Grant told the informant.

After receiving Grant’s instructions, the informant left Grant’s home in Kennedale, and Grant never contacted him again, Wilkins said. FBI agents arrested Grant a few hours later.

U.S. Magistrate Judge Jeffrey Cureton ruled that Grant poses a flight risk and a threat to the community and ordered him held without bail.

When agents arrested Grant, they seized 22 guns, two bulletproof vests and nearly $150,000 in cash, Wilkins testified.

Club closed a year

Flashdancer, at Randol Mill Road and Texas 360 in north Arlington, has closed for a year under a settlement with the Texas attorney general’s office and the city in a nuisance lawsuit. In labeling the club a nuisance, city and state authorities cited the prevalence of drugs, prostitution and assaults.

Police Chief Theron Bowman has revoked the club’s sexually oriented business license on the grounds that Flashdancer filed a misleading application with the city and allowed rampant sexual contact between employees and customers. Grant wanted Cluck and Brandt killed because he felt they stood in the way of the reopening, according to an arrest warrant affidavit.”

————————————————————–

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 display weaponry seized after militiamen arrests

May 10, 2012

Anchorage Daily News on May 9, 2012 released the following:

“Jurors get a look at arsenal seized from homes, trailer.
By RICHARD MAUER

The weapons and conspiracy trial of three Fairbanks militia members continued into its third day Wednesday with the introduction of seized guns, ammunition and documents, some brought into the federal courthouse, others as pictures projected on a big screen.

Federal prosecutors are taking the early days of the trial to set the groundwork for the weeks ahead. They’re systematically — and somewhat tediously — working with witnesses from the FBI and Alaska State Troopers to show the jury what their search warrants uncovered in the homes and a trailer belonging to the three defendants, Schaeffer Cox, Coleman Barney and Lonnie Vernon.

On Wednesday morning, FBI Agent Jolene Goeden showed photographs of thousands of rounds of ammunition seized in March 2011 from a large white trailer owned by Barney that was found parked at a Fairbanks ice park after the three men were arrested.

FBI agents had thought the trailer would be at the home of one of the suspects. When it wasn’t there when the men were arrested March 10, 2011, it set off a frantic search that included the use of aircraft. Officials knew from an informant that the trailer was filled with weapons and were concerned on two fronts — that other militia members, upset with the arrests of their leadership, might stage an attack using the ordnance, or that it could pose an explosion hazard to innocent bystanders if something inside ignited accidently.

Barney eventually told a U.S. Marshal where it was.

In addition to the ammo, the trailer also held a sniper rifle, a tripod-mounted semi automatic rifle, an M-16 assault rifle and grenade launchers, as well as supplies and equipment for Barney’s contracting business, Mammoth Electric.

Goeden also showed another copy of the 17 “Acts of War” that was found in the trailer. Unlike the one found in Cox’s house and entered as evidence Tuesday, this one had checkmarks next to the acts that presumably had already taken place, including firearms restrictions, confiscation of “any property,” federalization of law enforcement and the surrendering of power to a corporation or foreign government.

Only three acts remained unchecked: “mandatory medical anything,” elimination of gold, cash or barter, and the use of chips or marks to track, control or monitor.

Cox, the 28-year-old leader of the Alaska Peacemaker Militia and an ideological force in the Alaska “sovereign citizen” movement, once rescinded a guilty plea to a 2010 reckless endangerment charge by filing a notice to the recorder’s office in Fairbanks. A copy of the notice and other filings in his case were among the documents seized in the search of the home of co-defendant Barney, 37, a major in the militia.

The jury saw a copy of the seized set of documents — the standard court order dated March 10, 2010, accepting his plea deal, providing for no jail time and two years probation, and the surreal documents Cox used to abrogate the plea, including the paperwork for his now-famous “trial” in a Denny’s restaurant before a jury of his pals in which he was acquitted. Among the papers was the document filed in the recorder’s office — a repository mainly for land transactions — in which Cox captioned his case, “State of Alaska, a fiction, plaintiff, v Schaeffer Cox, a natural Man, victim and witness, waiving no rights, EVER.”

Interspersed with written ramblings were displays of the arsenals the men had amassed: Kalashnikov- and M-16-style assault rifles, numerous pistols and long rifles, hundreds of ammo clips, launchers for firing pepper-spray and tear-gas type canisters along with dozens of those rounds, powder and explosives. Troopers and FBI seized numerous body armor vests, handcuffs, a lock-pick kit, police duty belts and a “go bag” with 10 hand-held radios, batteries, pistols, an assault rifle, loaded magazines and a roll of duct tape.

Alaska State Trooper Joshua Rallo said he counted 20,000 rounds of ammunition in a storage pantry on the first floor of Barney’s home in North Pole adjacent to his office.

At each break in the proceedings, one of the prosecutors and an FBI agent would wheel out the evidence already presented to the jury and return with a cart filled with more stuff, some of it quite heavy. And there are still days to go in this phase of the trial.

The defense attorneys have not been saying much, but on one occasion, Barney’s attorney, Tim Dooley, asked Rallo whether everything he seized “was legal for a citizen to own?”

“Provided they’re not a felon, I guess,” Rallo replied.

There’s been almost no evidence about how the defendants amassed their armaments, or managed to pay for them. Prosecutors introduced a credit card receipt from Cox for $583 to Far North Tactical, a Fairbanks arms and police-supply merchant, and the phone number for the shop showed up on other seized paperwork.

They also introduced a mail-order box for a 37mm grenade launcher from a company called American Ammo from Ohio, and the stern instructions that came with it, warning that using the product for anything other than as a low-powered “wildlife control banger” could get the user in serious trouble with the federal government.”

————————————————————–

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.


Missile Defense Engineer Charged With Accepting Bribes

May 30, 2010

A Scottsboro man, Steven Earl Bryant, has been charged with accepting bribes while working as an engineer with the U.S. Army Space and Missile Defense Command in Huntsville. Furthermore, he was charged with evading payment of taxes on the income derived from the bribes. The two-count information charged Bryant with being a public official accepting bribes relating to Space and Missile Defense Command contracts with private companies for the provision of material for missile defense research.

According to the information, Bryant was a public official for 8 years while he worked as an engineer with the missile defense command. In that capacity, he served as a Technical Representative for Contracting Officers on Space and Missile Defense Command contracts. These contracts were for material used in missile defense research and were supplied by private businesses. Bryant monitored contracts between the missile defense command and companies owned by Maurice Subilia, Dennis Darling and Paul Hurlburt, all of whom have since plead guilty on other charges.

Subilia and Hurlburt pleaded guilty in 2009 to conspiracy charges in connection to procurement fraud in contracts with the missile defense command in Huntsville. In addition, Subilia pleaded guilty to money laundering and bribery charges, admitting that between 2000 to 2007 he paid more than $1.2 million in bribes to two missile defense command employees, Michael Cantrell and Douglas Ennis. Cantrell was the director and Ennis the deputy director for the Joint Center for Technology Integration at the missile defense command. Both men pleaded guilty in 2008 to various charges related to the procurement fraud scheme.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

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

Bookmark and Share


Former ATF Agent Charged With Drug Conspiracy, Money Laundering in Oklahoma

April 11, 2010

Brandon Jay McFadden of Lubbock, Texas, has been indicted in the Northern District of Oklahoma for conspiracy to distribute methamphetamine, cocaine, and marijuana; possessing methamphetamine with intent to distribute; possessing a firearm during a drug trafficking offense; and money laundering.

The indictment alleges that from July 2002 through September 2009, McFadden was employed as a special agent with the ATF and stationed in Tulsa, Oklahoma. In his role as a special agent, McFadden regularly investigated potential firearms and drug trafficking offenses. According to the indictment beginning in 2007, and continuing through October 2008, McFadden conspired with other individuals to distribute marijuana, powder cocaine, and methamphetamine. As part of that conspiracy, McFadden is accused of planting drug evidence on suspects; stealing drugs and money from suspects; and testifying falsely in court. The money laundering count pertains to charges that McFadden used proceeds of the drug trafficking to purchase a Chevrolet Silverado.

The drug conspiracy charges carry a potential sentence of not less than 10 years’ imprisonment and up to life. The possession of methamphetamine with intent to distribute carries a potential sentence of not more than 20 years’ imprisonment. Under federal law, a conviction for carrying and possessing a firearm during and in relation to a drug trafficking offense carries a mandatory consecutive sentence of five years’ imprisonment. Finally, the offense of money laundering is punishable by up to 20 years’ imprisonment.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

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

Bookmark and Share


Another New York City Man Indicted For Bid Rigging Conspiracy

April 7, 2010

In a story similar to the last one posted on this blog, a New York City federal grand jury has returned an indictment against Mario Perciavalle, a former Mount Sinai Medical Center purchasing official for participating in bid-rigging and fraud conspiracies.

The indictment returned charges Mr. Perciavalle, with participating in a conspiracy to rig bids on contracts related to maintenance and insulation services at Mount Sinai. According to the indictment, Perciavalle and his co-conspirators attempted to create the appearance that Mount Sinai awarded contracts based on competition. However the accused are alleged to have submitted intentionally high, non-competitive bids to Mount Sinai in regards to these contracts.

The indictment further alleges that Perciavalle and a co-conspirator engaged in mail fraud, when Perciavalle awarded work at Mount Sinai to the co-conspirator’s business while requesting and accepting cash kickbacks from the co-conspirator. Perciavalle is charged with mail fraud as a result of payments mailed by Mount Sinai to Percivalle’s co-conspirator. Mail fraud refers to any scheme which attempts to unlawfully obtain money or valuables in which the postal system is used at any point in the commission of the criminal offense.

The bid rigging violation that Perciavalle is charged with can result in a penalty of no more than 10 years in prison and a $1 million fine. The fraud conspiracy charge carries a maximum penalty of no more than 20 years imprisonment and a $1 million fine.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

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

Bookmark and Share


New York Men Indicted on Bank Fraud Charges

March 11, 2010

Robert Egan, the President of Mount Vernon Money Center (“MVMC”), and Bernard McGarry, MVMC’s Chief Operating Officer, have been indicted on charges of defrauding banks, other financial institutions, retailers, hospitals, and universities. The amount of funds allegedly entrusted to MVMC was approximately $50 million.

The Indictment alleges that MVMC engaged in various cash management businesses including replenishing cash in over 5,300 Automated Teller Machines (“ATMs”) owned by banks and other financial institutions. In addition, MVMC provided armored car services to financial institutions and retailers. Furthermore, MVMC provided payroll services to employers, including to hospitals and universities, which allowed those employees to cash their paychecks on their employers’ premises. MVMC also owned and operated several cash vaults, where MVMC and its affiliated businesses allegedly stored and processed cash collected from and distributed to its clients.

The government is accusing Egan and McGarry of soliciting and collecting hundreds of millions of dollars from MVMC’s clients while falsely representatings that the clients’ funds would not be commingled or used for purposes other than those specified in the contracts between MVMC and its clients.

The government alleges that the defendants engaged in “playing the float.” In other words, MVMC is accused of  misappropriating the clients’ funds for their own use, either to cover operating expenses of one or more of the MVMC operating entities, to repay prior client obligations, or for their own personal enrichment.

Furthermore, MVMC is accused of commingling different banks’ and other clients’ money in its vaults and bank accounts. Allegedly MVMC’s personnel were directed at Egan and McGarry to take whatever cash that arrived in the vault, regardless of its source, in order to fill the ATMs as part of MVMC’s ATM replenishment business.

According to the government, in February 2010 MVMC had been entrusted with approximately $70 to $75 million by its clients, but had only held approximately $20 to $25 million in cash in its vaults and bank accounts.

Egan  and McGarry have been charged with one count of conspiracy to commit bank fraud and wire fraud and six counts of bank fraud. The Federal Bank Fraud statute is condified at 18 U.S.C. 1344 and it makes it a crime to defraud a financial institution or to obtain money, funds, assets, credit, securities, or other properties from a financial institution by making false representations, pretenses, or promises to that institution.

If convicted, they face a maximum penalty of 30 years in prison and a maximum fine of one million dollars or twice the gain or loss resulting from the crime for each of the counts.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

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

Bookmark and Share