“Obama to pick new FBI director in second term”

November 9, 2012

USA Today on November 9, 2012 released the following:

“Kevin Johnson, USA TODAY

Beyond the reshuffling of President Obama’s Cabinet, another key personnel decision is looming in the administration’s second term.

In the coming months, Obama will decide a successor to Robert Mueller, the longest-serving FBI director since J. Edgar Hoover.

Mueller, the only top national security official remaining in government since the 9/11 attacks, is set to leave office in 2013, after Congress took the unprecedented action of extending his 10-year term. Obama requested the extension last year to preserve some continuity in the national security structure, at a time when he was naming new executives to lead the Pentagon and CIA.

But Congress is not likely to provide another extension for one of the most fraught jobs in government.

“This is an unusual step by the president, and is somewhat of a risky precedent to set,” Iowa Sen. Chuck Grassley, the Judiciary Committee’s ranking Republican said in May 2011 at the time of the request, adding that he would seek to “ensure that this is not a more permanent extension.”

Until Mueller was granted an additional two years, which Grassley also ultimately voted for, the administration’s search team had considered a list candidates — many drawn from Democratic and Republican administrations.

Federal law enforcement analysts, including Tom Fuentes, a former FBI assistant director, said the names represent a vast array of experience for an agency whose reach continues to extend throughout the globe.

Fuentes, who once directed the bureau’s international operations, said terrorism, organized crime and the growing threats to cybersecurity have required the agency to expand its international presence.

“On any given day, you have more than 1,000 agents (of the bureau’s 14,000 agents) working outside the country,” Fuentes said.

“Any new director has got to have some understanding of the international nature of crime and the value of intelligence,” he said.

While endorsing Michael Mason, former chief of the FBI’s D.C. field office for the post last year, the FBI Agents Association referred to a similar need for leadership that spans the agency’s many areas of jurisdiction, “from Bloods street gangs to mortgage fraud to Russian sleeper cells.”

Don Borelli, a former assistant agent-in-charge of the FBI’s New York division, said the most critical need is “organization.”

“The biggest challenges facing the next director are organizational,” he said. “It’s how you direct a large organization, provide it the resources it needs to function. Obviously, you need someone who knows the nuances of politics and could be confirmed (by Congress).”

“No matter who gets the job, though there is going to skepticism, because agents by nature are skeptical,” Borelli said. “But what you need is someone who can take over like a CEO of a big corporation.””

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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.


Appeal in Insider Trading Case Centers on Wiretap

October 24, 2012

The New York Times on October 23, 2012 released the following:

“BY PETER LATTMAN

In March 2008, the Justice Department made an extraordinary request: It asked a judge for permission to record secretly the phone conversations of Raj Rajaratnam, a billionaire hedge fund manager.

The request, which was granted, was the first time the government had asked for a wiretap to investigate insider trading. Federal agents eavesdropped on Mr. Rajaratnam for nine months, leading to his indictment — along with charges against 22 others — and the biggest insider trading case in a generation.

On Thursday, lawyers for Mr. Rajaratnam, who is serving an 11-year prison term after being found guilty at trial, will ask a federal appeals court to reverse his conviction. They contend that the government improperly obtained a wiretap in violation of Mr. Rajaratnam’s constitutional privacy rights and federal laws governing electronic surveillance.

Such a ruling is considered a long shot, but a reversal would have broad implications. Not only would it upend Mr. Rajaratnam’s conviction but also affect the prosecution of Rajat K. Gupta, the former Goldman Sachs director who was convicted of leaking boardroom secrets to Mr. Rajaratnam. Mr. Gupta is scheduled to be sentenced on Wednesday.

A decision curbing the use of wiretaps would also affect the government’s ability to police Wall Street trading floors, as insider trading cases and other securities fraud crimes are notoriously difficult to build without direct evidence like incriminating telephone conversations.

“Wiretaps traditionally have been used in narcotics and organized crime cases,” said Harlan J. Protass, a criminal defense lawyer in New York who is not involved in the Rajaratnam case. “Their use today in insider trading investigations indicates that the government thinks there may be no bounds to the types of white-collar cases in which they can be used.”

More broadly, Mr. Rajaratnam’s appeal is being closely watched for its effect on the privacy protections of defendants regarding wiretap use. Three parties have filed “friend-of-the-court” briefs siding with Mr. Rajaratnam. Eight former federal judges warned that allowing the court’s ruling to stand “would pose a grave threat to the integrity of the warrant process.” A group of defense lawyers said that upholding the use of wiretaps in this case would “eviscerate the integrity of the criminal justice system.”

To safeguard privacy protections, federal law permits the government’s use of wiretaps only under narrowly prescribed conditions. Among the conditions are that a judge, before authorizing a wiretap, must find that conventional investigative techniques have been tried and failed. Mr. Rajaratnam’s lawyers said the government misled the judge who authorized the wiretap, Gerard E. Lynch, in this regard.

They say that the government omitted that the Securities and Exchange Commission had already been building its case against Mr. Rajaratnam for more than a year using typical investigative means like interviewing witnesses and reviewing trading records. Had the judge known about the S.E.C.’s investigation, he would not have allowed the government to use a wiretap, Mr. Rajaratnam’s lawyers argue.

Before Mr. Rajaratnam’s trial, the presiding judge, Richard J. Holwell, held a four-day hearing on the legality of the wiretaps. Judge Holwell criticized the government, calling its decision to leave out information about its more conventional investigation a “glaring omission” that demonstrated “a reckless disregard for the truth.”

Nevertheless, Judge Holwell refused to suppress the wiretaps, in part, he said, because they were necessary to uncover Mr. Rajartanam’s insider trading scheme. “It appears that the S.E.C., and by inference the criminal authorities, had hit a wall of sorts,” Judge Holwell wrote.

On appeal, Mr. Rajaratnam lawyers argued that the government’s lack of candor should not be tolerated. They described the government’s wiretap application as full of “misleading assertions” and “outright falsity” that made it impossible for Judge Lynch to do his job.

“The government’s self-chosen reckless disregard of the truth and of the critical role of independent judicial review breached that trust and desolated the warrant’s basis,” wrote Mr. Rajaratnam’s lawyers at the law firm Akin Gump Strauss Hauer & Feld.

In their brief to the appeals court, federal prosecutors dispute that they acted with a “reckless disregard for the truth.” Instead, they argue that omitting details of the S.E.C.’s investigation was at most “an innocent mistake rising to the level of negligence.” In addition, they said that the S.E.C.’s inquiry failed to yield sufficient evidence for a criminal case, necessitating the use of a wiretap.

Once Judge Lynch signed off on the wiretap application, the government’s investigation into Mr. Rajaratnam accelerated. The wiretapping of Mr. Rajaratnam’s phone, along with the subsequent recording of his supposed accomplices, yielded about 2,400 conversations. In many of them, Mr. Rajaratnam could be heard exchanging confidential information about technology stocks like Google and Advanced Micro Devices.

Three years ago this month, federal authorities arrested Mr. Rajaratnam and charged him with orchestrating a seven-year insider trading conspiracy. The sprawling case has produced 23 arrests of traders and tipsters, many of them caught swapping secrets with Mr. Rajaratnam about publicly traded companies.

Among the thousands of calls were four that implicated Mr. Gupta, a former head of the consulting firm McKinsey & Company who served as a director at Goldman Sachs and Procter & Gamble. On one call in July 2008, the only wiretapped conversation between the two men, Mr. Gupta freely shared Goldman’s confidential board discussions with Mr. Rajaratnam. On another, Mr. Rajaratnam told a colleague at his hedge fund, the Galleon Group, “I heard yesterday from somebody who’s on the board of Goldman Sachs that they are going to lose $2 per share.”

Those conversations set off an investigation of Mr. Gupta. He was arrested in October 2011 and charged with leaking boardroom secrets about Goldman and P.& G. to Mr. Rajaratnam. A jury convicted him in May after a monthlong trial.

On Wednesday at Federal District Court in Manhattan, Judge Jed S. Rakoff will sentence Mr. Gupta. Federal prosecutors are seeking a prison term of up to 10 years. Mr. Gupta’s lawyers have asked Judge Rakoff for a nonprison sentence of probation and community service. One proposal by the defense would have Mr. Gupta living in Rwanda and working on global health issues.

Regardless of his sentence, Mr. Gupta plans to appeal. And because prosecutors used wiretap evidence in his trial, Mr. Gupta would benefit from a reversal of Mr. Rajaratnam’s conviction.

Yet a reversal would not affect the convictions of the defendants in the conspiracy who have pleaded guilty. As part of their pleas, those defendants waived their rights to an appeal.”

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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.


Mexican Cartel Hides Millions in Horse Races, U.S. Alleges

June 12, 2012

The New York Times on June 12, 2012 released the following:

“By GINGER THOMPSON

Newcomers rarely make it into the winner’s circle at the All American Futurity, considered the Kentucky Derby of quarter horse racing.

Yet in September 2010, a beaming band of men waving Mexican flags and miniature piñatas swept into Ruidoso, N.M., to claim the million-dollar prize with a long-shot colt named Mr. Piloto.

Leading the revelry at the track was Mr. Piloto’s owner, José Treviño Morales, 45, a self-described brick mason who had grown up poor in Mexico. Across the border, Ramiro Villarreal, an affable associate who had helped acquire the winning colt, celebrated at a bar with friends.

As for the man who made the whole day possible, Miguel Ángel Treviño Morales, he was living on the run, one of the most wanted drug traffickers in the world.

Mr. Treviño, a younger brother of José Treviño, is second in command of Mexico’s Zetas drug trafficking organization. Thin with a furrowed brow, he has become the organization’s lead enforcer — infamous for dismembering his victims while they are still alive.

The race was one of many victories for the Treviño brothers, who managed to establish a prominent horse breeding operation, Tremor Enterprises, in the United States that allowed them to launder millions of dollars in drug money, according to current and former federal law enforcement officials. The operation amounted to a foothold in the United States for one of Mexico’s most dangerous criminal networks, the officials said.

Using Miguel Ángel Treviño’s cash, José Treviño’s legal residency and Mr. Villarreal’s eye for a good horse, Tremor bought a sprawling ranch in Oklahoma and an estimated 300 stallions and mares. The Treviño brothers might have kept their operation quiet, given the criminal connection, but their passion for horses and winning apparently proved too tempting. In the short span of three years, Tremor won three of the industry’s biggest races, with prizes totaling some $2.5 million.

The business was “so far out there it’s hard to believe,” said Morris Panner, a former prosecutor who handled drug cases. “Maybe they were using some kind of perverse logic that told them they could hide in plain sight, precisely because people wouldn’t believe it or question it.”

The Justice Department moved against Tremor on Tuesday morning, dispatching several helicopters and hundreds of law enforcement agents to the company’s stables in Ruidoso and its ranch in Oklahoma. Jose Treviño and several associates were taken into custody and were charged later in the day, authorities said.

Miguel Angel Trevino and another brother, Omar, were also charged. The two remain at large in Mexico. Omar Trevino is also a high-ranking member of the Zetas and an F.B.I. affidavit filed in United States district court describes him as participating in the money laundering.

The affidavit said the Zetas funneled about $1 million a month into buying quarter horses in the United States. The authorities were tipped off to Tremor’s activities in January 2010, when the Zetas paid more than $1 million in a single day for two broodmares, the affidavit said.

The New York Times became aware of Tremor’s activities in December 2011 while reporting on the Zetas. The Times learned of the government’s investigation last month and agreed to hold this story until Tuesday morning’s arrests.

The brothers’ activities on either side of the border made for a stark contrast. One week in May began with the authorities pointing fingers at Miguel Ángel Treviño for dumping the bodies of 49 people — without heads, hands or feet — in garbage bags along a busy highway in northern Mexico. The week concluded with José Treviño fielding four Tremor horses in a prestigious race at Los Alamitos Race Course, near Los Angeles.

By then, Mr. Villarreal’s story had come to a fatal, fiery end. Not long after the 2010 victory at Ruidoso, he was detained by the Drug Enforcement Administration and reluctantly agreed to work as an informant. Five months later, his charred remains were found in a burnt-out car on the highway outside Nuevo Laredo.

The buzz around Tremor’s winnings and acquisitions began three years ago, when José Treviño bought an estimated $3 million in quarter horses, including one named Number One Cartel.

Since then he has worked with breeders, trainers and brokers considered pillars of the business. Tremor Enterprises did not always put its name on the horses it owned or the races they ran, presumably to avoid the attention of tax collectors and law enforcement authorities, according to federal agents.

But people inside the financially struggling industry do not need written records to tell them who is doing business with whom. And some of those insiders acknowledged that the subject of José Treviño’s identity, and where he got his money, was treated like so many taboos: people did not ask many questions, either because they did not care, or did not want to know.

“Everyone knows who José Treviño is,” one trainer said. “But all they cared about was whether his checks would clear.”

A Drug Organization Ascends

Made up of rogue members of the Mexican military and police, the Zetas were a protection force for the powerful Gulf Cartel before they set out on their own in 2010. Their ascendancy ignited a spate of massacres and assassinations of elected officials, police chiefs, journalists and others, which turned organized crime from a law enforcement problem to the No. 1 national security threat for Mexico’s fragile democracy.

Miguel Ángel Treviño, known as Zeta-40, or just 40, was never in the military. But he became useful to the Zetas for his experience moving contraband across the border.

Law enforcement authorities said the Zetas have been able to rapidly expand their reach beyond Mexico’s borders with the United States and Guatemala. And while other Mexican drug organizations prefer to keep themselves and their money close to home, the Zetas have established outposts as far as South America and West Africa.

“The Zetas are particularly adroit at spreading their tentacles across borders,” said Michael S. Vigil, a former senior official with the Drug Enforcement Administration. He added that the gang’s extensive intelligence and operational capabilities allow it to take control of new territory so quickly that it is difficult for law enforcement to keep up.

Their primary stronghold is Nuevo Laredo, one of North America’s busiest border-crossings and Mr. Trevino’s hometown.

He had grown up there in a large family with six brothers, including José, and six sisters, American authorities said. Like most local residents, the Treviño family treated the border as a kind of imaginary line.

Law enforcement authorities knowledgeable about the family said the siblings learned the tricks of moving easily between the United States and Mexico, using temporary visas and border-crossing cards to start families, buy properties and do business in both countries.

Court records lay out the nature of the brothers’ turn to crime, which dates back at least two decades. In 1995, an older brother, Juan Francisco Treviño, was sentenced on charges of conspiring to smuggle hundreds of pounds of marijuana into the United States.

On the witness stand, Juan Francisco described himself as a struggling entrepreneur who had tried to make a go of a small construction company, Treviño Masonry, but later went into trucking.

Prosecutors argued that those businesses were fronts for the Treviños’ smuggling activities, citing a raft of lapsed business licenses, false identification documents and suspicious wire transfers.

The defendant was sentenced to 22 years in prison, and remains incarcerated. José and Miguel Ángel Treviño were implicated in the case, but were never prosecuted for lack of evidence, said authorities involved in the investigation.

It is unclear whether the two brothers parted ways at that point or continued collaborating. Miguel Ángel Treviño’s rise through the ranks of the Zetas is well known. Jere Miles, an expert on the Zetas at the Department of Homeland Security, said that among the Mexican underworld, Mr. Treviño had gained the notoriety of a cult figure, one who has escaped unscathed from several gun battles against the law, makes deals with no one and seems unafraid to die. Dismembered bodies, dumped by the dozens, have become his calling card.

He also manages the organization’s money, according to George Grayson, a professor at the College of William and Mary who has written a book about the Zetas.

The trail of public information on José Treviño goes cold until 2009, when he began buying expensive racehorses.

“From all appearances, he looked like anyone else interested in quarter horses,” said one person in the industry who knows José Treviño. “But he had a massive amount of money, with no good explanation where it came from. And he had a family name that made a lot of people wonder.”

New Player at the Track

As much as Tremor was a money-laundering operation, the Treviño brothers’ quarter horse venture allowed them to mix business with pleasure. Horses have long been considered a status symbol in Latin America and drug traffickers have been among the region’s most avid collectors.

Law enforcement officials said quarter horse racing was one of Miguel Ángel Treviño’s favorite pastimes, and even while living on the run, he has managed to keep control of several ranches and racetracks in Mexico and Guatemala where he holds match races, known as parejeras.

But Mexican horse racing — like so much else in that country — has been battered by the violence of the drug war. Many Mexican breeders have moved their operations to the United States, where they could buy horses with better bloodlines and compete for bigger prizes, without fearing for their lives.

“Much of the growth in American quarter horse racing is due to those guys,” said one industry expert, referring to the influx of breeders and buyers from Mexico. “They have spent a lot of money. And it’s made a big, big difference.”

The races, centered in the Southwest, pit scrappier, less expensive horses than high-end thoroughbreds in contests that can be over in less than 20 seconds.

To get in on the action at American tracks, Miguel Ángel Treviño needed someone he could trust to pick a winner. For that, he turned to Mr. Villarreal.

Mr. Villarreal was an unlikely horseman, the socially awkward son of a bookkeeper and teacher known for his build and bottomless appetite as “El Gordo,” or “Fatso.” He began attending auctions as a child, and developed an uncanny ability to spot horses that may not have come from the best lineage, but whose stride or attitude suggested an exceptional capacity for speed.

Mr. Villarreal’s parents said he started buying horses as a teenager, mostly borrowing from relatives and friends. Still, he never seemed to have enough to purchase the kinds of horses that could compete for major prizes. Nor did the strikingly effeminate man ever develop the social skills needed to fit into the macho world of breeders and trainers.

In some ways, said one friend, he stopped trying. For awhile, he named his horses after runway models — like Campbell, as in Naomi, and Elle, as in Macpherson — because he was captivated by women’s fashion.

Mr. Villarreal got his big break in 2006, when he cobbled together $10,500 to buy a colt at an auction at Los Alamitos, records show. He took the horse to Mexico, named it “El Sicario” — which means “The Assassin” — and entered it in the parejera circuit, where it began to beat younger, better-rated competitors.

“That horse got 40’s attention,” said one of Mr. Villarreal’s friends. “He told Ramiro, ‘I want you to buy horses for me.’ ”

He did not hesitate, the friend said. “This was his chance to live his dream.”

Mr. Villarreal’s father, who is also named Ramiro, saw it slightly differently.

“If someone like that asks you to do something,” the elder Mr. Villarreal said, “Are you going to tell him no?”

Soon, the younger Mr. Villarreal’s name began appearing on the lists of the top buyers at auctions in California, Texas, New Mexico and Oklahoma. His first champion was Tempting Dash, which won more than $600,000 in 2009, set a track record during the Texas Classic Futurity and gave Tremor its first victory in a million-dollar race.

No matter how successful, Mr. Villarreal always showed deference to his boss, calling him “Papi.” When Miguel Ángel Treviño wanted to see Tempting Dash for himself, Mr. Villarreal drove the horse, along with dozens of others, to Mexico.

Getting back was more complicated. To avoid inspections, quarantines and other procedures required for bringing livestock into the United States, Mr. Villarreal had trainers sneak the horses back across the border, herding them just after dawn through the Rio Grande.

“My son used to tell me that his biggest blessing was also his curse,” said Mr. Villarreal’s father. “He would tell me, ‘My problem is that I am good at what I do, so a lot of people ask me to help them. Some of those people are good. Some of those people are bad.”

‘A Great Moment’

As much as Miguel Ángel Treviño relied on Mr. Villarreal, he needed his brother, José, to be the face of his fledgling American horse business.

José Treviño, the clean-cut father of three, with a small tattooed Tremor logo on his hand, almost always attended races with his family at his side. He often credited his success to a combination of divine intervention and dumb luck.

“After a win, he always says that he’s been blessed with an ability to pick the right horses and run them in the right races,” said one person who met him. “He’s always humble. He’s the kind of guy who knows what he doesn’t know, who seems eager to learn, and who isn’t shy about asking for advice.”

At the start, José Treviño seemed reticent in the spotlight, avoiding reporters by pretending he did not speak good English. But the more races he won, the more comfortable he seemed with cameras and microphones. People who knew him said he never sought out the media, but never refused to talk when they called.

And they called often.

“That was awesome, that was awesome,” José Treviño said, beaming before reporters in November 2009, after Tempting Dash won the Texas Classic Futurity. “We were expecting him to run big, but we weren’t expecting something like this, to break the track record like this.”

The following year, when the colt named Mr. Piloto won the All American Futurity in Ruidoso, N.M., racing writers called it the “biggest upset in All-American history,” and marveled at how Mr. Treviño, with a “green-as-grass” horse, could beat competitors with better qualifying times and world-class jockeys.

Then last year, a sorrel filly named Separate Fire swept the Ed Burke Futurity at Los Alamitos, Calif., delivering José Treviño his third race where the top prizes were worth $1 million — a record.

“We’re down-to-the-ground people,” he humbly told Track Magazine after the race last July. “This is a great moment, one we are going to enjoy for a long time. But I think you have to take it as it comes and don’t let it change your life.”

Still, his life did change. Tremor’s winning streak allowed him to hire the most respected jockeys, trainers and sales associates in the business. Last year, said people who know him, José Treviño moved his family from a modest suburban house in Mesquite, Tex., where he said he worked in the construction industry, to a large ranch outside Lexington, Okla.

The 70-acre ranch, Zule Farms, is named after his wife, Zulema, a former secretary who told people that she kept the books for Tremor. A person familiar with the ranch said that Mr. Treviño had converted a manure-filled cattle barn on the property into a breeding facility, with state-of-the-art labs and special stalls where mares are implanted with embryos.

Across the quarter horse industry, people started to whisper about where he was getting his money.

“There’s no way all the money he’s putting into that ranch came from being a brick mason. It’s just not logical,” said a person familiar with Zule Farms.

Nor were José Treviño’s operations always transparent. Records show that on at least a couple occasions, he had other people sign for the company’s major purchases. One deal was signed by a teenager who looked like he was not yet old enough to drive. The other was handled by the scion of a prominent quarter horse family, Tyler Graham, who stunned a packed auction house in Oklahoma by agreeing to pay a record $875,000 for a broodmare named Dashin Follies.

At the time of the sale, Mr. Graham said he was buying the horse on behalf of a client he would only identify as “a Mexico resident.” Shortly afterward, records show, he turned the horse over to Tremor. Mr. Graham has not been accused of any wrongdoing.

An industry expert who attended the auction said the sale prompted more rumors. But he said sketchy deals are not uncommon in an industry where payments are made in cash and records are notoriously — even deliberately — unreliable.

“If someone walks into an auction with hundreds of thousands of dollars, and refuses to give his name, no one is going turn him away,” the industry expert said. “What they’ll tell him is, ‘We’ll register the horse in any name you want.’ ”

A Mysterious Death

As José Treviño’s prominence grew in the quarter horse community, so did Miguel Ángel Treviño’s place in the drug trade. By the end of 2010, he had helped lead a brutal expansion so deep into Mexico that the Zetas became not only a priority for Mexico’s security forces, but also an enemy that inspired other drug organizations to join forces and fight.

Miguel Ángel Treviño’s control over drug warehouses and hit squads across the border also compelled United States authorities to offer a $5 million reward for information leading to his arrest.

At the same time, Mr. Villarreal was falling out of favor with Tremor. He was in debt because the Treviño brothers barely paid him enough to cover travel costs, friends said. Mr. Villarreal began padding his expenses, prompting Miguel Ángel Treviño to suspect him of skimming money from Tremor, the friends said.

In September 2010, Mr. Villarreal was traveling to a horse auction in Oklahoma when he was detained by D.E.A. agents during a layover at a Houston airport. A spokesman for the agency refused to comment on its relationship with Mr. Villarreal.

But several law enforcement officials familiar with the case said agents held him for up to six hours, questioning him about his ties to Miguel Ángel Treviño. Before releasing him, the agents confiscated Mr. Villarreal’s cellphone and computer, and ordered him to meet with them a few days later.

When Mr. Villarreal returned, the agents said he could either work for them as an informant or face being prosecuted himself, according to the officials. The D.E.A. wanted Mr. Villarreal to help track Miguel Ángel Treviño’s whereabouts and then lure him into the United States.

Mr. Villarreal pleaded that he was too nervous to pull off the ruse, adding that Miguel Ángel Treviño would never trust him enough to follow him across the border.

But the D.E.A. insisted and a beleaguered Mr. Villarreal relented, the officials said.

At least once, Mr. Villarreal tipped off his handlers when Miguel Ángel Treviño went to a racetrack in Nuevo Laredo.

“Mexican authorities took pictures of 40, but they didn’t try to arrest him,” said one of Mr. Villarreal’s friends. “They told Ramiro that they were afraid too many people might get killed. Ramiro told them if they waited any longer, he was going to get killed.”

Sometime around the end of that year, Miguel Ángel Treviño summoned Mr. Villarreal to a meeting. Mr. Villarreal’s friends recounted the following incident as he had described it to them.

A pickup point was arranged in Laredo, where Mr. Villarreal was blindfolded and then driven into the Mexican desert by gang members.

Minutes dragged as Mr. Villarreal waited for Miguel Ángel Treviño to arrive. He saw two vats filled with a liquid he presumed to be acid, one of the trafficker’s preferred methods for disposing of bodies.

“Where’s Papi?” he asked the men.

“Don’t worry,” they answered. “He’s coming.”

Miguel Ángel Treviño arrived about an hour later in a car with more lieutenants and an unknown man, who was also wearing a blindfold.

The trafficker hugged Mr. Villarreal and asked, “You’re not screwing me, are you, Gordo?”

“No, of course not, Papi,” Mr. Villarreal answered.

Saying he would be back “in a minute,” Miguel Ángel Treviño walked over to the unknown man, took off his blindfold, shot him in the head and ordered his men to dump the body in one of the vats of acid.

Mr. Villarreal passed out. He told his friends he did not know how long he was unconscious, but when he awoke Miguel Ángel Treviño was slapping him in the face and laughing.

“What’s wrong, Gordo?” he joked. “You can’t handle seeing me kill someone? Next time, I’m going to have you do it.”

“No Papi,” Mr. Villarreal said. “I don’t want there to be a next time.”

The drug trafficker got back into his car and drove away. Mr. Villarreal was taken back to Laredo and immediately got in touch with the D.E.A., imploring the agents to release him from their agreement.

“When I met him he was a complete mess; profusely sweating, gangrene in one leg, and barely able to walk,” said a former law enforcement official. “He was in between a rock and a hard place: either stay in the United States and risk going to prison, or go back to Mexico and risk getting killed.”

In the end, Mr. Villarreal, 38, continued informing for the D.E.A. and in March, Miguel Ángel Treviño summoned him to another meeting.

On March 10, 2011, Mr. Villarreal’s car was found incinerated outside Nuevo Laredo. There was so little left of him that authorities took DNA samples from the ashes to identify his remains.

One federal law enforcement official said some agents believed his death was an accident, but acknowledged that no investigation was conducted.

Mr. Villarreal’s father said he had little hope of ever finding the truth. Asked who he thought was behind Mr. Villarreal’s death, the round, balding man looked over at his wife, tears streaming down her cheeks, and echoed a refrain heard from so many Mexican crime victims. “If we ask questions, we could be the next ones to die, so for us, this is a closed chapter.”

Whispers of a “mob hit” spread across the quarter horse industry. In March, law enforcement agents even raided Tremor’s stables at Los Alamitos racetrack. But none of it seemed to slow down Tremor’s business.

Last weekend, at Los Alamitos, a Tremor colt named Mr. Ease Cartel ran the second-fastest qualifying time for a million-dollar race scheduled for June 24. When Jose Trevino’s daughter was married recently, guests included well-known figures in the industry and Track magazine covered the “big event” on its Web site.

“If he had been some thug, or the stereotypical person you’d expect to be in a drug cartel, then maybe people wouldn’t have accepted him and done business with him,” a former trainer said of José Treviño. “But he’s a really nice guy, so none of us wanted to believe he could have anything to do with the killing going on in Mexico.””

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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.


How Globalization Affects Transnational Crime

June 11, 2012

KYC360 released the following:

Council on Foreign Relations (CFR)

As world leaders increasingly debate drug legalization, CFR’s Stewart Patrick and Phil Williams of the University of Pittsburgh discuss the explosion of transnational crime in a globalized world:

 “Transnational criminals have been one of the biggest beneficiaries of globalization,” Williams says. Globalization facilitates international trade but also increases the difficulty of regulating global trade, he says; traffickers and smugglers have exploited this. Williams adds that globalization has increased inequality around the globe, and that “its disruptive effect has actually caused people to have to go into organized crime and operate in illicit markets as coping mechanisms.””

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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.


45 Indicted in Major DEA-Led Investigations of Alleged Drug Trafficking Operations at San Juan International Airport

June 6, 2012

U.S. Drug Enforcement Administration (DEA) on June 6, 2012 released the following:

“–Multi-Ton Quantities of Cocaine Shipped Aboard American Airlines Commercial Aircraft Destined for Continental United States–

June 6 (San Juan, PR) – On May 31, a federal grand jury indicted 25 individuals as a result of an investigation lead by the Drug Enforcement Administration, the Puerto Rico Police Department (PRPD), and the Puerto Rico Department of Justice, announced today United States Attorney Rosa Emilia Rodríguez-Vélez.

The defendants are charged in a 16 count indictment with violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to possess with intent to distribute cocaine.

The defendants were members and associates of a criminal organization whose members and associates engaged in narcotics distribution and criminal acts principally out of the Luis Muñoz Marin International Airport in Carolina, Puerto Rico. The leader of the organization is Maribel Rodríguez-Fragoso, aka “La Flaca.”

The indictment alleges that in or around 2010 until May 2012, members of the enterprise and their associates carried kilograms of cocaine in backpack/bags, or hidden on their person, or driving official work vehicles into the Airport through the employees secured entrance. Once in the secured area, they would transfer the kilograms of cocaine to couriers inside of a designated restroom, who would then board flights departing to the continental United States.

It is further alleged that members of the enterprise transported large sums of drug proceeds in the form of U.S. currency from the continental United States to Puerto Rico. Some of the drug proceeds were used to purchase items, such as vehicles, which were regularly used to further the enterprise.

DEA Deputy Administrator Thomas M. Harrigan today said, “Americans have a right to expect the highest integrity from those they entrust with their safety, and DEA is committed to protecting that trust. Today’s arrests at one of the nation’s busiest airports reflect our relentless commitment to working with our partners to aggressively fight drug trafficking, not only at our nation’s points of entry, but at source, transit, and arrival zones throughout the world.”

The case is being prosecuted by Assistant United States Attorneys Brian Kidd, Sean Torriente and Justin Martin from the Organized Crime and Racketeering Section. This unit operates under the Narcotics Unit, and it is supervised by the Chief of the Narcotics Unit, AUSA Timothy Henwood. This unit is yet another component of our new initiative against violent crime and illegal firearms.

A second indictment unsealed today charges 20 individuals for aiding and abetting each other, and conspiracy to possess with intent to distribute in excess of 9000 kilograms of cocaine, aboard American Airlines commercial aircrafts. At times pertinent to this indictment, convict Wilfredo Rodríguez-Rosado, aka “Mogoyo” recruited and organized a group of individuals to package, transport and deliver suitcases loaded with kilograms of cocaine to the American Airlines cargo area at the Luis Muñoz Marin International Airport. Moreover, he recruited and organized a group of American Airlines employees to ensure that those suitcases were smuggled into American Airlines aircrafts destined to Miami and Orlando, Florida and Newark, NJ.

The case was investigated by the DEA, the PRPD, and the FBI, with the collaboration of the San Juan Municipal Police, and prosecuted by Assistant United States Attorneys Olga Castellón, Mariana Bauzá and Maritza González.

“The defendants in this investigation not only utilized their positions and security access to smuggle large quantities of illegal narcotics, but they also compromised the safety and security at one of the Caribbean’s most vital airports,” said Acting Special Agent in Charge of the Caribbean Division, Pedro Janer. “DEA will continue to dismantle these organizations that think they can blatantly use legitimate entities to carry out their smuggling operations.”

“The United States Attorney’s Office, along with our state and federal law enforcement counterparts, will continue investigating and prosecuting drug trafficking organizations which use our island as a trans-shipment point for drugs to the U.S. mainland. The use of commercial aircraft to smuggle narcotics in and out of Puerto Rico, also creates a serious threat to our national security,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.

The defendants in both cases are facing a minimum term of imprisonment of 10 years up to life. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

The DEA Caribbean Division would also like to extend its gratitude to the DEA Divisions in New York, Miami, Newark and Dallas for their incredible support and assistance.”

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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: Alleged mobsters among 14 charged in illegal online gambling ring in NJ

May 23, 2012

The Republic on May 22, 2012 released the following:

THE ASSOCIATED PRESS

“NEWARK, N.J. — Federal prosecutors say 14 people have been charged in an illegal online gambling operation run out of northern New Jersey.

U.S. Attorney Paul Fishman says 13 people, including alleged members of the Genovese organized crime family and its LaScala Crew, face charges of racketeering conspiracy. The other defendant’s charged with transmission of wagering information. []

Fishman says the gambling website was maintained in Costa Rica, but bettors paid or received money in New Jersey.

The Lascala Crew is also accused of cargo theft and receipt and sale of stolen goods. They also allegedly profit from illegal gambling at social clubs it operates in north Jersey and elsewhere.

The defendants were due to make their initial court appearances Tuesday afternoon. Two of them remain at large.”

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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.


Man Said to Be Acting Head of New England Mob Is Held

April 26, 2012

The New York Times on April 25, 2012 released the following:

“By JESS BIDGOOD

BOSTON — The man federal authorities say was the acting head of the New England mob was arrested here Wednesday morning, and in a federal court appearance in Providence, R.I., later in the day pleaded not guilty to multiple counts including racketeering and conspiracy.

In a colorful indictment returned Tuesday and unsealed Wednesday, federal prosecutors allege that the man, Anthony DiNunzio, 53, became the acting boss of New England’s Cosa Nostra crime family in late 2009 and oversaw the organization’s extortion of Rhode Island strip clubs and other such businesses, demanding payments of $2,000 to $6,000 per month.

“Our indictment alleges that Mr. DiNunzio was an unscrupulous and intimidating leader of the New England L.C.N.,” said James Trusty, the head of the Justice Department’s organized crime unit, during a news conference.

It was the first time that the authorities had publicly identified Mr. DiNunzio as the leader of La Cosa Nostra. They say he spoke unambiguously of his role. According to the indictment, Mr. DiNunzio was recorded bragging that he would remain the boss if he went to jail and telling a member of New York’s Gambino crime family that he would be willing to bury uncooperative insubordinates alive.

“You and I get to watch you die in the ground,” Mr. DiNunzio is alleged to have said.

Mr. DiNunzio was detained in a social club in Boston’s North End neighborhood on Wednesday morning. He is the ninth person alleged to be a member of the New England Mafia to be charged in Rhode Island during an effort by law enforcement here to dismantle the mob. Six of them, including Luigi Manocchio, who is said to be the former boss of the New England Mafia, have entered into plea agreements.

Also named in the indictment were Albino Folcarelli and Theodore Cardillo

Mr. DiNunzio, whose brother, Carmen DiNunzio, is a former mob boss, has a formal detention hearing scheduled for May 3. Prosecutors requested that he remain in custody until then.”

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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.