FBI: “Former Sandia Corporation Scientist Pleads Guilty to Taking Government Property to China”

August 26, 2014

The Federal Bureau of Investigation (FBI) on August 25, 2014 released the following:

“ALBUQUERQUE— Jianyu Huang, a scientist formerly employed by Sandia Corporation (Sandia) at Sandia National Laboratories (SNL), pleaded guilty this afternoon to making a false statement and unlawfully transporting converted government property in interstate and foreign commerce. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.

Huang, 46, a naturalized U.S. citizen from the People’s Republic of China who resides in Albuquerque, N.M., was arrested in June 2012, on a six-count indictment charging him with misusing U.S. government resources and equipment to conduct research for Chinese research institutions and with falsely stating that he did not intend to take U.S. government equipment with him on a trip to China. The indictment subsequently was superseded to add an interstate transportation of converted property charge and a theft of government property charge. Huang was employed by Sandia until his employment was terminated in late April 2012.

SNL is a government-owned research facility operated by Sandia Corporation for the U.S. Department of Energy (DOE) National Nuclear Security Administration (NNSA) that is responsible for ensuring the safety of the nation’s nuclear stockpile; enhancing the security of energy and other critical resources; reducing the proliferation of weapons of mass destruction; addressing threats to national security; and protecting the nation against terrorism. The Center for Integrated Nanotechnologies (CiNT) is a DOE user facility and science research center devoted to establishing scientific principles that govern the design, performance, and integration of materials on the atomic and molecular scale, located at SNL.

In light of the sensitivity of SNL’s work, all Sandia employees are required to report to the Sandia Office of Counterintelligence (SOC) any substantive relationship with foreign nationals, including associations that involve meeting and sharing work-related information. Sandia employees also are required to submit to interviews with SOC before international travel on official business, and are prohibited from bringing government-owned equipment on international travel without prior approval.

Huang was employed by Sandia at CiNT, where he worked in an unclassified open science facility without access to classified national security information. As a Sandia employee, Huang was prohibited from bringing government-owned equipment on international travel without prior approval.

Counts 1 through 5 of the second superseding indictment charged Huang with federal program fraud and alleged that between Jan. 2009 and Jan. 2012, Huang unlawfully and without authority used DOE equipment, materials and property to conduct research for businesses and universities in the People’s Republic of China. Count 6 charged Huang with making a false statement charge to a federal officer and alleged that, in June 2011, Huang falsely represented to a counterintelligence officer that he would not take any U.S. government electronic equipment with him on an upcoming trip to the People’s Republic of China. The statement was false because Huang knew that he intended to take a U.S. government computer and hard-drive to the People’s Republic of China on that trip, and did in fact take that equipment with him. Count 7 charged Huang with the interstate transportation of converted property charge and alleged that between June 30, 2011 and July 18, 2011, Huang unlawfully transported a DOE-owned laptop computer and computer-related media in interstate and foreign commerce. Count 8 charged Huang with an embezzlement charge and alleged that between April 25, 2012 and June 2, 2012, Huang embezzled electronic files and documents, including research proposals, belonging to DOE that came into his possession by virtue of his employment with SNL.

During his plea hearing this afternoon, Huang pled guilty to Counts 6 and 7 of the second superseding indictment. In his plea agreement, Huang admitted taking a trip to China in July 2011, for the purpose of attending and making a presentation at a research conference. Huang acknowledged that in seeking and obtaining Sandia’s permission to participate in the conference, he represented that he would not take any DOE-owned equipment with him. Huang also admitted deliberately lying to a counterintelligence office when he made the representation because he intended to take his DOE-owned laptop on the trip.

Huang admitted taking a DOE-owned laptop computer with him when he traveled to China on June 30 and July 1, 2011, even though he knew that he did not have permission to do so. In so doing, Huang unlawfully converted the laptop computer to his own use. According to Huang’s plea agreement, U.S. Customs and Border Protection agents seized the DOE-owned laptop from Huang’s baggage when he returned to the United States on July 18, 2011, after Huang admitted that he did not have permission to take the laptop computer out of the country.

Under the terms of the plea agreement, Huang will be sentenced to a year and a day in federal prison followed by a term of supervised release to be determined by the court. Huang’s sentencing hearing has yet to be scheduled.

The case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

Federal Crimes – Appeal

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

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

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


Two Chicago-Area Defendants Charged with Alleged Commodities Fraud in Separate Federal Criminal Cases

October 26, 2012

The Federal Bureau of Investigation (FBI) on October 25, 2012 released the following:

“CHICAGO—Two defendants were charged with commodities fraud in unrelated cases, federal law enforcement officials announced today. In one case, an investment firm officer was charged with defrauding customers of approximately $2.5 million. In the other case, a former clerk for a lean hogs futures trader was arrested today and charged with manipulating trades to generate a profit of more than $225,000 for herself.

Joshua T. J. Russo, 30, of Chicago, a former vice president of alternative investments for Olympus Futures Inc. (previously Peak Trading Group), was charged with a single count of commodities fraud in a criminal information filed today. In a separate case, Nicole M. Graziano, 32, of Roselle, a former trading clerk, was charged with four counts of commodities fraud in an indictment returned yesterday by a federal grand jury.

Graziano was arrested this morning and later released on a $10,000 unsecured bond after pleading not guilty before U.S. District Judge James Zagel. Russo was not arrested and will be arraigned at later date in federal court.

The charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and William C. Monroe, Acting Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.

Each count of commodities fraud carries a maximum penalty of 10 years in prison and a $1 million fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The government is being represented in both cases by Assistant U.S. Attorney Christopher McFadden.

The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which 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.

An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The details of each case follow.

United States. V. Russo, 12 CR 836

Between March 2007 and April 2011, Russo fraudulently obtained approximately $2.5 million from at least six investors and caused losses of more than $1.3 million, including approximately $208,000 in commissions for himself that he spent on gambling, vacations, clothing, theater tickets, meals, and entertainment, the charges allege. Russo obtained the funds by misrepresenting to investors that their funds would be used to purchase various investments, including shares of the Peak Performance Fund, which he knew had never accepted individual investors, and no money was ever invested with the fund. Russo allegedly made false statements about his prior performance investing in commodity futures, the level of risk, the existence and trading performance of the Peak Performance Fund, and the uses of the funds he obtained from investors. He concealed the fraud by creating and distributing false e-mails, spreadsheets, statements, and audit reports, the charges allege.

Instead of investing the funds as he purported, Russo misappropriated the money to make speculative trades—and regularly lost money—in various commodity futures, including energy sources, precious metals, agriculture products, foreign currencies, and stock indices. After providing one investor with false information about positive returns, Russo successfully encouraged that investor to refer friends and relatives to open accounts through him, resulting in additional victims.

The Commodity Futures Trading Commission and the National Futures Association assisted in the investigation.

United States. V. Graziano, 12 CR 834

Between September 2009 and August 2010, Graziano, who was a clerk for a floor trader at the Chicago Mercantile Exchange, now CME Group, secretly inserted trade cards for her own personal orders into the decks of trade cards submitted by public customers that she provided to floor traders to execute during the opening and closing brackets of trading in lean hogs futures contracts, the charges allege. She then fraudulently allocated lower purchase prices to her buy orders, and higher prices to her sell orders, to the detriment of public customers, according to the indictment. Graziano allegedly submitted at least 104 fraudulent trade cards to the appropriate clearing firms, resulting in illegal profits to her of $13,390 during the opening bracket and $213,680 during the closing bracket.

The CME Group assisted in the 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

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

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

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


Federal Prosecutors Recommend in Federal Court in Chicago that William Cellini Deserves a Federal Sentence of up to 8-years

July 13, 2012

Chicago Tribune on July 12, 2012 released the following:

“8-year sentence recommended for fundraiser, lobbyist Cellini

By Annie Sweeney, Chicago Tribune reporter

Longtime state power broker William Cellini deserves to go to prison for up to eight years for attempting to extort a campaign contribution from a Hollywood producer, federal prosecutors argued for his upcoming sentencing.

But prosecutors went on to say they understood if U.S. District Judge James Zagel imposes a lower sentence given Cellini’s age — 77 — and health problems.

“The government agrees that the combination of Cellini’s health and age makes this one of the relatively rare situations where it may well be appropriate to impose a sentence below” the 61/2 to eight years in prison called for under federal guidelines, prosecutors wrote in a sentencing memorandum filed with the court.

Cellini was admitted twice last month to a hospital in Springfield after first suffering a heart attack and then after his doctors discovered a blood clot, according to his lawyers.

Cellini is scheduled to be sentenced July 23 in federal court in Chicago.

In the 29-page court filing, prosecutors argued that any break given to Cellini “should be relatively modest” and rejected calls by the defense for probation.

“Cellini’s medical condition, however, is not a basis to excuse him from a meaningful sentence of incarceration,” the prosecution filing said.

A federal jury convicted Cellini in November of conspiracy to commit extortion and aiding and abetting in the solicitation of a bribe for trying to extort a contribution for then-Gov. Rod Blagojevich’s campaign from a Hollywood producer who wanted to keep his lucrative business with the state.

In their filing, prosecutors recounted how for decades Cellini, a powerful Republican lobbyist and fundraiser, allegedly used his clout to exercise “considerable influence over governmental functions despite the fact that he held no official title.”

“Cellini goes too far … by suggesting that his age and health justify a sentence of probation,” the government wrote. “In contrast, a meaningful sentence of incarceration would send a strong message of deterrence to those who are tempted to corrupt governmental functions. Such a sentence would demonstrate that, no matter how much money you accumulate, or how many friends and supporters you enjoy, there is no protection from prison when you are caught corrupting public institutions.”

Cellini’s attorneys could not be reached for comment.”

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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 – 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.


Three Defendants Indicted in Alleged $750,000 Mortgage Fraud Scheme Involving Three Residences in Chicago

May 11, 2012

The Federal Bureau of Investigation (FBI) on May 10, 2012 released the following:

“CHICAGO— A Chicago area real estate investor, the president of a Colorado real estate financing company, and a licensed appraiser were indicted for allegedly participating in a scheme to fraudulently attempt to obtain mortgage loans totaling more than $750,000 by selling three residential properties in Chicago to nominee buyers, federal law enforcement officials announced today. The charges result from Operation Madhouse, an undercover investigation in which a cooperating individual posed as someone who could assist in structuring fraudulent loan transactions through a bank contact who would approve bogus loan applications on behalf of nominee buyers.

Defendant Paul Demos, 66, of Chicago, the licensed appraiser, was arrested this morning and was released on his own recognizance after pleading not guilty at his arraignment before U.S. District Judge Amy St. Eve in Federal Court. Co-defendants Michael Fort, 42, of Hazel Crest, an investor who owned multiple properties in Chicago; and Jeffrey Olson, 43, of Lakewood, Colorado, who was president of 1st Funding Source LLC, which engaged in real estate financing, were not arrested and will be arraigned at a later date.

Fort was charged with three counts of bank fraud, and Demos and Olson were each charged with two counts of bank fraud in an indictment returned by a federal grand jury on Tuesday and unsealed today following Demos’ arrest. The arrest and charges were announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of investigation; Barry McLaughlin, Special Agent in Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago; and Alvin Patton, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.

According to the indictment, the fraud scheme involved a “double-closing” on a residence located at 5517 South Paulina St. and the sale of residences located at 6845 South Morgan St. and 1241 North Monitor Ave., all in Chicago, between June and September 2010. The defendants and others allegedly fraudulently attempted to obtain loans by preparing and submitting to an unnamed bank applications in the names of nominee buyers that contained false information about the borrower’s employment, income, assets, down payment, intention to occupy the residence, and the value of the property.

Regarding the Paulina “double-closing,” the defendants and the undercover cooperating individual allegedly agreed that Fort would “short sell” the residence to a nominee intermediate party, who would immediately resell the property to a nominee buyer, with the second sale financed by a fraudulently-obtained $295,850 loan. Fort allegedly hid information from the short sale lender, including that Fort had arranged for an immediate resale to a nominee buyer at a price significantly higher than the short sale price and based on an inflated appraisal and that he would profit from the resale.

The Morgan Street property was to be sold to a nominee buyer financed by a fraudulently-obtained $300,600 loanand the Monitor Avenue sale by Fort to a nominee buyer financed by a fraudulently-obtained $203,700 loan, the indictment alleges. As part of the scheme, Fort would pay a fee to the nominee buyers of the Paulina and Monitor properties, it adds. In exchange, the nominee buyers would obtain the loans and sign the documents at closings but would not occupy the residences or make payments on the loans. Fort allegedly intended to keep the proceeds of the fraudulently-obtained mortgages.

Demos allegedly provided the bank with false appraisals that inflated the value of the Paulina and Morgan properties. Olson allegedly provided the down payment funds for the nominee buyer of the Morgan property, and agreed to provide the down payment and short sale funds for the Paulina property. In September 2010, Fort and others appeared at the closings for the sale of Paulina and Morgan properties, allegedly intending to receive approximately $596,450 in fraudulently-obtained loan proceeds. Together with the Monitor property, the defendants allegedly intended to fraudulently obtain mortgages totaling more than $750,000.

The government is being represented by Assistant U.S. Attorneys Tyler Murray and Christopher Stetler.

Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. If convicted, the court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

The charges are part of a continuing effort to investigate and prosecute mortgage fraud in northern Illinois and nationwide under the umbrella of the interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.

Since 2008, approximately 200 defendants have been charged in Federal Court in Chicago and Rockford with engaging in various mortgage fraud schemes involving more than 1,000 properties and more than $280 million in potential losses, signifying the high priority that federal law enforcement officials give mortgage fraud in an effort to deter others from engaging in crimes relating to residential and commercial real estate.

The 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.”

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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 prosecutors build case against alleged leaders of Yonkers’ Cliff Street Gangsters

April 11, 2012

lohud.com on April 10, 2012 released the following:

“Written by
ERIK SHILLING

Nine reputed members of the Cliff Street Gangsters have admitted to conspiring to sell drugs and to violently keeping rivals at bay in the Nodine Hill section of Yonkers, as prosecutors continue to build their case against a chief enforcer of the group.

An indictment detailing some of the men’s activity was unsealed last August during a sweep of dozens of city gangsters. Since then guilty pleas for many of the reputed Cliff Street Gangsters members have trickled in. Prosecutors have now turned their focus to the gang’s leaders like 21-year-old Preston “Peanut” Hardy, who, as top gang enforcer, is accused of committing multiple shootings against rival gangs, authorities said. Few, if any, of the men connected to the Cliff Street Gangsters graduated from high school, but now seven — the youngest of whom is 18 — face up to life in prison when they are sentenced in U.S. District Court in White Plains later this year.

The latest guilty plea was Monday, when 26-year-old Gene “J-Biz” Thomas, pleaded guilty to two counts of drug charges. He faces up to 40 years in prison when he is sentenced July 9.

At their plea hearings, some of the men spoke plainly of gang life.

“During the conspiracy, there was a time that I carried guns to protect the money I made,” Miguel “Corleone” Marquez, 26, said in January.

Another reputed gangster, Brandon “Big Boy” Williams, implied in his plea hearing that guns were a necessary part of the trade.

“At times, they would be threatening me so I one time had a gun and displayed it to one of these guys,” Williams said March 26, referring to rival gang members. Neither Williams nor Marquez completed high school. Both pleaded guilty pleaded guilty to drug and firearms charges, including conspiring to distribute 50 kilograms or more of marijuana. They face up to life in prison at sentencing.

Prosecutors have said that Cliff Street Gangsters, known commonly as the CSG, operated for at least six years selling crack, marijuana, and other drugs and threatening rivals who encroached on their turf with guns that were stashed in secret locations known only to the gang’s members.

Other stashes, for the drugs themselves — like crack, which was packed in bags known as “twists” —were in members’ mouths, underwear and other locations, prosecutors said, including nearby mailboxes.

Competition for buyers of the twists led to numerous violent clashes with nearby gangs, including two based in the Schlobohm Housing Project, the Strip Boys and the Grimy M————, or GMF, according to prosecutors. A fourth gang, the Nodine Hill-based Elm Street Wolves, was CSG’s ally in many of the clashes, which went on for years and included a number of beatings and shootings.

“We went after the biggest folks we could find,” U.S. Attorney Preet Bharara said last August, before another law enforcement official estimated that around 20 gangs operated in Yonkers.

Reputed Cliff Street Gangster Joshua Jenkins, who pleaded guilty March 29 to conspiracy and firearms charges, said that CSG moved more than 220 pounds of marijuana between 2005 and 2011. Among other things, Jenkins was accused of driving other gun-toting gang members around in his mother’s car.

“When I was doing all this, I knew that I was wrong,” Jenkins told Judge Cathy Seibel at his plea hearing, according to court records.

Some of the reputed gangsters who pleaded guilty included a few who admitted to having drug abuse problems themselves.

“I smoked weed, and I popped pills, and I drink,” said Michael “Mike-Mike” Glover, 21, adding that he spent time in treatment in 2008. Glover faces up a minimum 15 years in prison after pleading guilty to drug and firearms charges March 29.

He admitted then that he conspired to deal drugs from 2005 until his arrest in June 2011.

“Until I got caught,” he said.

A spokesman for U.S. Attorney Preet Bharara declined to comment on trial strategy or whether the cases against three men who haven’t pleaded guilty — James “Tone” Glover, Audai “Buck” Howard, and Preston Hardy — were in negotiations with prosecutors.

But David Gordon, the lawyer for Hardy, said that he expected the case to go to trial. No dates have been set, but jury selection in the case could start later this month.

All the defendants remained in prison without bail Tuesday.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

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

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

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


Hollenbeck attorney up for sentencing Wednesday

April 4, 2012

Winston-Salem Journal on April 4, 2012 released the following:

“By: WESLEY YOUNG

Federal prosecutors are recommending a 90-year sentence for Atlanta securities lawyer Gregory Bartko, who was convicted in 2010 of securities fraud in a case that involved the testimony of convicted Kernersville investment counselor Scott Hollenbeck.

Bartko’s attorneys are arguing in federal court that Bartko instead should have a “reasonable” sentence that would free him immediately. They say Bartko would still be barred from law and the securities industry, and that court-ordered restitution would, “for all intents and purposes, impoverish him.”

Bartko has been in jail since his conviction, awaiting sentencing. Sentencing is scheduled for 9 a.m. today in Courtroom 1 on the seventh floor of the Terry Sanford Federal Building at 310 New Bern Ave. in Raleigh.

Bartko is best known here for his role in representing a court-appointed receiver in a successful effort to obtain the return of millions of dollars raised by Hollenbeck from mom-and-pop investors and placed with a Montana coal mine. Bartko negotiated the return of $20 million from the mine operators, though he and another lawyer received criticism for taking $4 million in legal fees from that amount.

Bartko’s conviction relates to two investment plans that involved Hollenbeck raising money in a fraudulent way. Prosecutors say Bartko involved the Hollenbeck investors in losses of $3.4 million and knew about Hollenbeck’s fraudulent sales methods.

They also fault Bartko’s role in the coal mine recovery, saying that Bartko was actually defrauding the coal mine investors because he never repaid the part of the money that went toward a Bartko investment, not the coal mine.

Bartko’s lawyers say Bartko did not know that any of the money in either of his two investment funds had been raised illegally.

The defense attorneys say giving Bartko a 90-year sentence would be out of proportion to the crime, pointing out statistics that show that Bartko’s sentence would be longer than those handed out to convicted murderers, kidnappers and other criminals.

Hollenbeck, sentenced in 2008 to 14 years in prison, received a reduced sentence for testifying against Bartko and John Colvin, another Hollenbeck associate convicted in 2010 of fraud. Hollenbeck is slated for release in October 2015.”

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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 – Appeal

————————————————————–

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

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

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


Barry Bonds avoids jail, gets 2 years’ probation, home confinement

December 16, 2011

Los Angeles Times on December 16, 2011 released the following:

By: Maura Dolan in San Francisco

“Barry Bonds, baseball’s home run king, was sentenced Friday to two years’ probation with home confinement, plus a $4,000 fine, for giving evasive testimony to a federal grand jury eight years ago during an investigation of doping in sports.

Bonds, 47, was charged with several counts of perjury and obstruction of justice for lying during the grand jury’s probe of the Burlingame, Calif.-based Bay Area Laboratory Co-Operative, or BALCO, which sold banned substances to athletes.

A trial jury last April deadlocked on the perjury charges, returning only one conviction for felony obstruction. Jurors said Bonds obstructed justice by being intentionally evasive in his testimony.

Federal sentencing guidelines recommend 15 to 21 months in prison for obstruction, but probation officials told Judge Susan Illston that Bonds’ offense warranted much less: two years’ probation, a $4,000 fine, 250 hours of community service and “location monitoring” or home confinement.

Probation officials cited Bonds’ history of charitable and civic works — works that Bonds’ attorneys said he kept private even though they would have enhanced his reputation.

Prosecutors countered that the former San Francisco Giants star deserved 15 months in prison for his “pervasive efforts to testify falsely, to mislead the grand jury, to dodge questions, and to simply refuse to answer questions in the grand jury.””

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

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

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