Bruno trial ready for February

May 30, 2012

TimesUnion.com on May 30, 2012 released the following:

“Jury selection for second trial of ex-Senate majority leader set to begin Feb. 4 in Albany

By Brendan J. Lyons

ALBANY — The second criminal trial of former state Senate Majority Leader Joseph L. Bruno is scheduled to begin in February.

A federal judge on Tuesday met with federal prosecutors and Bruno’s defense attorneys for the first time since Bruno was indicted May 3 on two felony mail fraud charges. The attorneys discussed the scheduling of pre-trial motions, and the judge set a Feb. 4 trial date.

Bruno is charged with depriving the state of his honest services by allegedly using his political leverage to benefit a business associate and friend, Jared E. Abbruzzese of Loudonville.

Bruno’s dealings with Abbruzzese led to a conviction on two counts of honest services fraud at Bruno’s first trial, which ended in December 2009. The law used to convict Bruno was later retooled by a U.S. Supreme Court ruling that declared honest services convictions must include allegations of a bribe or kickback, and Bruno’s conviction was vacated last fall.

A mid-level appeals court in Manhattan rejected Bruno’s arguments that he not face a second trial. The panel ruled there was enough evidence to support a new indictment, and the court ruled federal prosecutors could seek new charges on a theory that Bruno had received kickbacks.

Bruno, 83, did not attend Tuesday’s meeting in the chambers of U.S. District Senior Judge Gary L. Sharpe, according to court minutes.

In May 2010, Sharpe sentenced Bruno to two years in prison for his conviction on two of the eight counts of honest services fraud contained in the earlier indictment. The sentence was vacated after Bruno’s 2009 conviction was overturned.

The new indictment alleges Bruno received $440,000 in payments from Abbruzzese that were “disguised as ‘consulting’ payments and $80,000 in payments for a virtually worthless horse.”

The investigation of Bruno, called Operation Green Pastures, began in late 2005 when FBI agents started examining his use of private jet aircraft supplied by Abbruzzese, his horse-breeding partner. Abbruzzese flew Bruno to Kentucky horse country, New York City and exclusive Florida golf resorts — including trips that were largely bankrolled by Abbruzzese.”

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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.


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

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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 District Court Judge Told a Federal Jury That They Must Keep Deliberating in the R. Allen Stanford Federal Criminal Trial

March 6, 2012

The New York Times on March 5, 2012 released the following:

“Jurors Told to Keep Talking in Financier’s Fraud Trial

By BLOOMBERG NEWS

The judge in the fraud trial of the financier R. Allen Stanford ordered the jury on Monday to return to deliberations after it said it could not reach a unanimous verdict in its fourth day of reviewing the evidence.

The eight men and four women on the jury told Judge David Hittner of Federal District Court for the Southern District of Texas in Houston that they had been unable to reach a verdict on each of the 14 counts, the judge said, reading a note they had written to lawyers for both sides.

Judge Hittner instructed jurors to continue deliberations, saying that the trial had taken a lot of time and money and that it was unlikely that the lawyers could put on a better trial or that another jury could be more conscientious.

”It is your duty to agree upon a verdict if you can do so, without surrendering your conscientious opinion,” Judge Hittner said.

Mr. Stanford, 61, is accused of leading a $7 billion international fraud scheme involving the sale of certificates of deposit issued by his bank, which was based in Antigua.

He faces up to 20 years in prison if found guilty of the most severe charges, mail fraud and wire fraud. Mr. Stanford says he is not guilty.

The jury left for the day after it was told to resume deliberations.

Jury selection began Jan. 23. The panel heard five weeks of evidence.

The government presented testimony from investors who had bought the reportedly fraudulent C.D.’s and from the executives who had helped sell them.

The witnesses included government officials and the former chief financial officer of the Stanford Financial Group, James M. Davis, who pleaded guilty to fraud-related charges in 2009 and testified for five days against Mr. Stanford.

The defense presented former Stanford employees who said they had seen no evidence of fraud at the company. Mr. Stanford did not testify during the trial.”

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

Federal Crimes – Federal Indictment

Federal Mail Fraud Crimes

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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.