Leo Joshua Kennedy Indicted by a San Jose Federal Grand Jury for Allegedly Committing Wire Fraud in a $17 Million Fraud Scheme

November 1, 2012

The Federal Bureau of Investigation (FBI) on October 31, 2012 released the following:

“Danville Man Charged in $17 Million Fraud Scheme

SAN JOSE, CA— A federal grand jury in San Jose indicted Leo Joshua Kennedy, of Danville, California, today with 10 counts of wire fraud, United States Attorney Melinda Haag announced.

According to the indictment, Kennedy, 60, is alleged to have stolen $17 million from various beneficiary trust accounts at Backhouse Fiduciary Services. While working as an accountant for Backhouse Fiduciary Services, a San Jose based administrator of beneficiary trust accounts, the defendant allegedly transferred funds from various trust accounts without the account-holders’ permission. Kennedy allegedly used those funds to pay for his personal investments and living expenses.

Kennedy is scheduled to make his initial appearance in federal court in San Jose on November 20, 2012, before Magistrate Judge Grewal.

The maximum statutory penalty for each count of wire fraud in violation of Title 18, United States Code, Section 1343 is 20 years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kamille Singh. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Kennedy must be presumed innocent unless and until proven guilty.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 is 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. 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.


Five People Indicted by a Federal Grand Jury on Federal Criminal Charges of Wire Fraud for Allegedly Embezzling Nearly $500,000 from Trident Seafoods

October 2, 2012

The Federal Bureau of Investigation (FBI) on October 1, 2012 released the following:

“ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that five individuals with ties to Kodiak, Alaska were indicted on charges of wire fraud for their role in embezzling almost $500,000 from Trident Seafoods.

Isairis Wolfe, 32, of Kodiak, Alaska; Anne Wilson (aka Anne Sorio), 31 of Kent, Washington; Jeremy Smith, 30 of Kodiak, Alaska, Valerie Olivares, 34 of Corpus Christi, Texas; and Jamie Fathke, 28 of Kodiak, Alaska, were indicted on wire fraud charges on September 18, 2012. Four of the defendants have been taken into federal custody. The initial appearance for two of the defendants from Kodiak, Wolfe and Smith, are scheduled for this afternoon in Anchorage.

According to the indictment, between approximately January 2008 and continuing until August 2010, Isairis Wolfe used her position as the book keeper for Trident Seafoods in Kodiak to write Trident checks to four of her personal associates: Wilson, Smith, Olivares, and Fathke. The allegations include that Wolfe, using her check writing authority at Trident, drafted approximately 52 checks on a Trident account and made them payable to her personal associates—Wilson, Smith, Olivares, and Fathke—as well as to Wilson’s minor son, L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. It is further alleged that Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.

Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both for each count, as well as restitution for the amount embezzled. Under the federal sentencing statutes, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Ms. Loeffler commends the Federal Bureau of Investigation for the investigation of this case and the Kodiak Police Department for its assistance in the investigation of this case.

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.”

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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 indictment charges 7 people in alleged $17 million multistate mortgage scams, Ponzi schemes

September 15, 2012

OregonLive.com on September 14, 2012 released the following:

“By The Associated Press

A federal indictment unsealed Friday charged seven people with running a multistate Ponzi scheme and related mortgage fraud scams that prosecutors said cost investors and lenders a combined $17 million.

The years-long investigation resulted in the arrest of 55-year-old Lawrence Leland Loomis. He and his father-in-law, John Hagener, 76, were charged with operating a fraudulent California-based investment fund that cost more than 100 investors more than $7 million.

Both men are from Granite Bay, a wealthy Sacramento suburb.

Hagener’s attorney, William Portanova, said his client would plead not guilty in federal court in Sacramento. It was not immediately clear if the others had retained attorneys.

Loomis and five other defendants are also charged in a 50-count indictment with costing lenders $10 million in losses through two mortgage fraud schemes.

Prosecutors said all three frauds were operated through Loomis Wealth Solutions, which was based in California and also worked with investors in Illinois, Washington and elsewhere from 2006 through 2008.

“We are bringing to justice some of those who are responsible for the mortgage crisis in this district and elsewhere,” U.S. Attorney Benjamin Wagner said in a statement announcing the indictments.

Portanova said the investigation was under way for at least four years before his client was charged.

“We’re looking forward to a resolution of this matter. It’s been a long investigation and we’re all ready to move forward,” Portanova said. “Large-scale, long-term white collar investigations are by their nature measured by calendars, not stopwatches.”

Loomis and Hagener were charged with bilking investors through a program called Naras Funds in 2007 and 2008. The indictment said Loomis encouraged investors to tap their home equity and retirement accounts to buy shares in the funds and to help purchase residential real estate.

He called the investments “simply the best financial plan ever created,” according to prosecutors.

He and his father-in-law allegedly promised 12 percent annual returns and said the funds were guaranteed, but the indictment claims the men used investors’ money to pay themselves, their companies’ operating expenses, and to prop up the scheme by paying later investors with money from earlier victims.

Loomis and Hagener had court appearances Friday, while the others were to appear later.

Loomis and a real estate appraiser, Darren Fehst, 44, of Halifax, Nova Scotia, are also charged in connection with a mortgage fraud scheme in which Loomis is accused of paying Fehst thousands of dollars to overstate appraisals so properties could be sold for inflated prices.

Loomis and four others also are charged with buying about 200 properties in Arizona, California, Florida and elsewhere while falsifying the sales prices and costing lenders about $10 million.

The others are Michael Llamas, 27, of Tracy; Peter Woodard, 54, of Ventura; Joseph A. Gekko, 43, of Yorba Linda; and Dawn C. Powers, 42, of Lincoln.

All are charged with mail and wire fraud. Each fraud charge carries a maximum possible sentence of 20 years in federal prison.”

Federal Mail Fraud Crimes – 18 U.S.C. § 1341

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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.


Dimitry Vishnevetsky Indicted by a Federal Grand Jury for Mail Fraud, Wire Fraud, and Bank Fraud in an Alleged Fraud Scheme

May 2, 2012

The Federal Bureau of Investigation (FBI) on May 2, 2012 released the following:

“Chicago Investment Advisor Indicted for Allegedly Causing Clients to Lose $1.5 Million in Fraud Scheme

CHICAGO— A Chicago investment advisor allegedly engaged in an investment fraud scheme that swindled clients, causing them to lose approximately $1.5 million, federal law enforcement officials announced today. The defendant, Dimitry Vishnevetsky, was charged with eight counts of mail or wire fraud and one count of bank fraud in a nine-count indictment returned yesterday by a federal grand jury. Vishnevetsky allegedly raised approximately $1.7 million from investors and misappropriated at least $1.5 million for his own purposes, including to pay for such business and personal expenses as mortgage and car payments, travel and vacations, restaurant bills, athletic club dues, and to make trades for his own benefit, while using additional investor funds to make Ponzi-type payments to clients.

Vishnevetsky, 33, of Chicago, will be arraigned at a later date in U.S. District Court. The charges were announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. Also yesterday, the Commodity Futures Trading Commission filed a civil enforcement lawsuit against Vishnevetsky and his companies in federal court in Chicago.

According to the indictment, Vishnevetsky offered and sold investments, including commodities and promissory notes, primarily through Hodges Trading, LLC, and Oxford Capital, LLC, which purported to be in the business of providing brokerage/management services to investors and of managing commodities funds, including the Oxford Global Macro Fund, the Oxford Global Arbitrage Fund, and the Quantum Global Fund, which existed in name only. He also offered and sold promissory notes, described as London Interbank Offered Rate (LIBOR) adjusted notes, through Hodges Trading, which also existed in name only.

The indictment alleges that between September 2006 and March 2012, Vishnevetsky schemed to defraud investors and potential investors by making false representations about the profitability of his prior and current trading, the use of the invested funds, the risks involved, the expected and actual returns on investments and trading, and false representations about Hodges Trading, Oxford Capital and the commodities funds. For example, Vishnevetsky created and provided some investors fraudulent trading results showing profits as high as 36 percent per year, the indictment alleges. “In fact, to the extent that Vishnevetsky engaged in trading, the trading consistently resulted in net losses, not profits,” the indictment states.

The bank fraud count alleges that between 2007 and 2010, Vishnevetsky made false statements to Merrill Lynch Bank & Trust concerning his income and assets to cause the bank to issue, and later modify, two loans totaling approximately $519,500 to purchase a condominium in Chicago. Vishnevetsky subsequently stopped making payments on the loans, the charges allege.

The government is being represented by Assistant U.S. Attorney Jacqueline Stern.

Each count of mail or wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, while bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

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 defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.”

US v. Dimitry Vishnevetsky – Federal Criminal Indictment

Federal Mail Fraud Crimes – 18 U.S.C. § 1341

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

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

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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

————————————————————–

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.