Bank Employee Indicted for Alleged Embezzlement and Structuring of Nearly $250,000

May 10, 2013

The Federal Bureau of Investigation (FBI) on May 9, 2013 released the following:

Nine Others Indicted by Federal Grand Jury

CLARKSBURG, WV— United States Attorney William J. Ihlenfeld, II, announced that Deborah D. Radcliff, age 41, of Weston, West Virginia, was named in an eight-count Indictment charging her with one count of embezzlement by a bank employee and seven counts of structuring.

According to the indictment, while serving as the branch manager of the Weston branch bank of Huntington National Bank from July 1, 2011 to November 5, 2012, Radcliff embezzled and misapplied $247,249.88 from depositors’ accounts and engaged in acts of structuring to cause the bank to fail to file a currency transaction report for currency transactions of $10,000 or more. To execute the scheme, Radcliff utilized her position as branch manager to issue or direct to be issued cashier’s checks from funds withdrawn from depositors’ accounts issued in the name of the depositor. Radcliff would take possession of the cashier’s check, forge the name of the depositor, and cash the checks for her own personal benefit. The ages of the alleged victims ranged from 56 to 90 years, with all but one alleged victim 64 years or older.

The indictment also seeks the forfeiture of a money judgment of the $247,249.88. If convicted, Radcliff faces up to 30 years’ imprisonment and a $1,000,000 fine on the embezzlement count and up to 10 years’ imprisonment and a $500,000 fine on each of the structuring counts. This case will be prosecuted by Assistant United States Attorney John C. Parr and was investigated by the Federal Bureau of Investigation.

Other indictments returned by the grand jury include:

Duane McAtee, age 43, of Metz, West Virginia, was named in a one-count indictment charging him with contempt of court. The indictment alleges that on April 2, 2013, McAtee disobeyed a lawful process of a court by failing to appear as directed. If convicted, McAtee faces up to six months’ imprisonment. The case was investigated by the FBI and IRS-CI.

Jose Deleon Hernandez was named in a one-count indictment charging him with iIllegal reentry after removal.” If convicted, Hernandez faces up to two years’ imprisonment and a $250,000 fine. The case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).

These two cases will be prosecuted by Assistant United States Attorney Paul T. Camilletti.

Brian Farley, age 30, of Oceana, West Virginia, was named in a 14-count indictment charging him with six counts of obtaining drugs by fraud and eight counts of making a material false statement. If convicted, Farley faces up to four years’ imprisonment and a $250,000 fine on the fraud charges and up to five years’ imprisonment and a $250,000 fine on the false statement charges. This case will be prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and was investigated by the U.S. Deparmtent of Veterans’ Affairs/Office of Inspector General-Criminal Investigations Division.

Edward C. Crow, age 43, a former inmate at USP Hazelton, was indicted for multiple counts of possession of a prohibited object; assaulting, resisting, and impeding officers; and assault with a dangerous weapon with intent to do bodily harm. If convicted, Crow faces up to 40 years’ imprisonment. This case will be prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at USP Hazelton.

Shane O. Brantley, age 36, of Sutton, West Virginia, was named in a one-count indictment charging him with being a felon in possession of a firearm” on April 25, 2012, in Braxton County. If convicted, Brantley faces a maximum exposure of 10 years’ imprisonment and a fine of $250,000.

Ronald M. Starkey, age 27, of Morgantown, West Virginia, was named in a one-count indictment charging him with being a felon in possession of a firearm” on May 24, 2011, in Morgantown. If convicted, Starkey faces a maximum exposure of 10 years’ imprisonment and a fine of $250,000.

These two cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

Christopher Weaver, age 36, of Morgantown, was named in a three-count indictment charging him with one count of distribution of crack cocaine and two counts of distribution of cocaine hydrochloride. If convicted, Weaver faces up to 20 years’ imprisonment and a $1,000,000 fine on each count. This case was investigated by the West Virginia State Police-Bureau of Criminal Investigations.

Welford Lee Harris, age 27 and Casey Smith, age 20, of Morgantown, were named in an eight-count indictment charging them with conspiracy to possess with intent to distribute and to distribute oxycodone and multiple counts of distribution of oxycodone, and possession with intent to distribute cocaine hydrochloride. If convicted, Harris and Smith face up to 20 years’ imprisonment and a $1,000,000 fine on each count. This case was investigated by the Mon Valley Drug Task Force and the West Virginia State Police. The task force consists of officers from Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.

These four cases will be prosecuted by Assistant United States Attorney Zelda E. Wesley.

All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.”

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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.


Former FBI Agent and Others Face Federal Criminal Charges Alleging Conspiracy, Honest Services Wire Fraud, Obstruction of Justice, and Obstructing an Agency Proceeding

October 22, 2012

Deseret News on October 22, 2012 released the following:

“Former FBI agent charged in military contract bribery case

By Dennis Romboy, Deseret News

SALT LAKE CITY — A former FBI agent faces federal charges for allegedly trying to derail a Utah-initiated investigation of a business partner with whom he was pursuing lucrative government security and energy contracts.

A federal grand jury in Salt Lake City returned an 11-count indictment against Robert G. Lustyik Jr., 50, of Sleepy Hollow, N.Y.; Michael L. Taylor, 51, of Harvard, Mass.; and Johannes W. Thaler, 49, of New Fairfield, Conn. Each is charged with one count of conspiracy, eight counts of honest services wire fraud, one count of obstructing justice and one count of obstructing an agency proceeding.

Lustyik used his position in an attempt to stave off a criminal investigation into Taylor, owner of Boston-based American International Security Corp., according to the indictment. Authorities say the former agent used Thaler, a childhood friend, as a go-between.

The indictment charges that Taylor, a former Green Beret, offered Lustyik $200,000 in cash, money purportedly for the medical expenses of Lustyik’s minor child, and a share in the proceeds of several anticipated contracts worth millions of dollars.

In hearing in U.S. District Court in Salt Lake City last month, a federal prosecutor quoted Taylor telling Lustyik in a message, “If they don’t put me in jail, I’ll make you filthy, stinkin’ rich.”

According to the indictment, Lustyik, a 20-year FBI veteran, was assigned to counterintelligence work in White Plains, N.Y., until September 2012. The indictment states that from at least June 2011, the three men had a business relationship pursuing contracts for security services, electric power and energy development in the Middle East and Africa.

In September 2011, Taylor learned of a Utah-based federal criminal investigation into whether Taylor, his business and others bribed an Army officer to obtain a $54 million military training contract in Afghanistan.

Taylor and Christopher Harris, of St. George, were charged in a 72-count indictment in August with bribing a public official, accepting of a bribe by public official, money laundering and wire fraud. Taylor remains in jail in Utah pending trail.

Court records say it was Harris’ banking habits in St. George that opened the case for federal investigators three years ago.

Harris, who worked for Taylor as a manager in Afghanistan, was paid about $17.4 million by American International, according to court records. He tried to hide the money by structuring his transactions at America First Credit Union in St. George so he wouldn’t be detected by the bank’s warning mechanisms, the indictment states.

Lustyik impeded the investigation by designating Taylor as an FBI confidential source and texting and calling the Utah investigators and prosecutors to dissuade them from charging Taylor, according to the indictment. He also interviewed witnesses and potential targets in the Utah investigation, authorities say.”

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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.


Members of Alleged Sports Betting Ring Charged with Racketeering

August 8, 2012

The Federal Bureau of Investigation (FBI) on August 8, 2012 released the following:

“PHILADELPHIA—A 23-count indictment was unsealed today charging 16 defendants in a conspiracy case involving the Mastronardo Bookmaking Organization, a multi-million-dollar sports betting operation with bettors throughout the U.S. At its peak, the alleged organization had more than 1,000 bettors and was generating millions of dollars a year. All but one defendant (Joanna Mastronardo) are charged with conspiracy to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. The indictment alleges that between January 1, 2005 and January 1, 2011, the organization utilized Internet websites and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the Internet and telephone sites. The defendants allegedly hid more than $1 million in and around their homes, including in specially-built compartments and in PVC pipes that were buried in a yard.

Charged are Joseph Vito Mastronardo, Jr. and John Mastronardo, the two alleged leaders; Joseph F. Mastronardo, Eric Woehlcke, Harry Murray, Joseph Vitelli, Anna Rose Vitelli, Patrick Tronoski, Edward Feighan, Kenneth Cohen, Schuyler Twaddle, Michael Loftus, Michael Squillante, David Rounick, Ronald Gendrachi; and Joanna Mastronardo, the wife of Joseph Mastronardo, Jr. All, with the exception of Twaddle, were arrested this morning.

The indictment was announced by U.S. Attorney Zane David Memeger, FBI Special Agent in Charge George C. Venizelos of the Philadelphia Field Office, Special Agent in Charge Eric Hylton of the Internal Revenue Service Criminal Investigation, and Montgomery County District Attorney Risa Ferman.

The indictment alleges that the defendants ran the organization using telephone, Skype, e-mail, text messaging, and in-person communication. They allegedly met bettors in-person, often in public buildings and parking lots, to collect or deliver payments that ranged from $1,000 to more than $100,000. The organization also allegedly used a gas station on Norristown Road in Blue Bell, Pennsylvania, as a mailing address and drop-off site to collect gambling payments.

According to the indictment, members of the Mastronardo Bookmaking Organization laundered the gambling proceeds using check cashing agencies, private bank accounts, and international bank accounts and provided instructions so that a losing bettor could pay a gambling debt through a charitable donation.

According to the indictment, leader Joseph V. Mastronardo, Jr. supervised the agents, sub-agents, websites (www.betroma.com and http://www.betrose.com), office employees; laundered some of the betting proceeds; collected debts; and instructed others to collect debts. Mastronardo’s brother, John, also a leader in the organization, supervised agents and sub-agents, laundered proceeds, and collected debts. John’s son, Joseph F. Mastronardo, worked as an office employee, collected debts, and performed other financial duties. Eric Woehlcke was initially a bookmaker and office employee, then worked as an office manager, and eventually became a leader supervising agents and sub-agents and laundering proceeds. Harry Murray was a bookmaker who resided in Florida and laundered proceeds in and outside the U.S. Joseph and Anna Rose Vitelli owned J&A Check Cashing where, in 2006, they allowed the organization to occupy an office for the illegal gambling business and which was also used to aid in the laundering of proceeds. Tronoski, Feighan, Cohen, Twaddle, Loftus, Squillante, Rounick, and Gendrachi were all bookmakers.

The indictment alleges that in March 2010, Joseph V. Mastronardo, Jr., in a conversation with bookmaker Harry Murray, commented, “Well, times like this I’m happy I’m a bookmaker,” to which Murray responded, “Me too.”

“Technology allowed the defendants to allegedly expand their gambling and money laundering operation far beyond the borders of Pennsylvania,” said Memeger. “Unfortunately for the defendants, however, we have the necessary statutory tools to investigate and prosecute those who openly flout our illegal gambling and financial reporting laws.”

“Illegal gambling and money laundering are the financial engines that help drive criminal enterprises like the one alleged today,” said Special Agent in Charge Venizelos. “The type of gambling activity charged here is illegal. These types of extensive and long-term joint investigative efforts, worked with our partners like the IRS and Montgomery County Detectives, are intended to dismantle criminal organizations that profit from illegal activities.”

“This alleged racketeering operation was anchored in Montgomery County but had tentacles spreading across the U.S. and beyond,” said D.A. Ferman. “Despite our attempt to shut it down in 2006-2007 with a Montgomery County prosecution, my office discovered that the defendants, as is alleged in the indictment, were back in business. We partnered with our federal counterparts to examine the full scope of the alleged illegal gambling operation. Today’s indictment reflects the work of many law enforcement agents across multiple agencies. These defendants tried to ‘game’ the system. Today, they crapped out.”

“The indictments announced today are the result of a significant and complex investigation,” said Special Agent in Charge Eric Hylton. “With both law enforcement and financial expertise, our agents are uniquely qualified to assist with these types of cases by following the trail of money. Our office will continue to work aggressively to identify and target illegal financial gains.”

Joanna Mastronardo is charged with one count of structuring in which it is alleged that she participated in making approximately 72 deposits in amounts less than $10,000, totaling more than $500,000 in a 12-month period.

Joseph V. Mastronardo, Jr. is charged in all 23 counts of the indictment. The remaining 14 defendants are each charged with the RICO conspiracy and with prohibition of illegal gambling. The indictment also seeks forfeiture of more than $6.3 million as alleged proceeds of the illegal enterprise.

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna.

An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.”

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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 15 Men from Albuquerque and Edgewood with Alleged Drug Trafficking and Financial Crimes

January 29, 2012

The Federal Bureau of Investigation (FBI) on January 27, 2012 released the following:

“ALBUQUERQUE—A 29—count federal indictment charging 15 men from Albuquerque and Edgewood, N.M., with drug trafficking, money laundering, and currency structuring charges was unsealed late yesterday afternoon, announced U.S. Attorney Kenneth J. Gonzales; Joseph M. Arabit, Special Agent in Charge of the El Paso Field Division of the Drug Enforcement Administration (DEA); Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the Federal Bureau of Investigation (FBI); and Dawn Mertz, Special Agent in Charge of the Phoenix Division of the Internal Revenue Service, Criminal Investigation (IRS).

The indictment is the result of a multi-agency investigation into a major drug trafficking and money laundering organization operating out of the Albuquerque metropolitan area that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.

Yesterday, a team of federal, state, and local law enforcement officers arrested nine of the 15 defendants named in the indictment, and executed 10 search warrants at residences in Albuquerque and a ranch in Edgewood. Those arrested include Steve Chavez, 32, a fireman with the Albuquerque Fire Department. Two other defendants, Jesus Ramos Castillo, 29, and Gabriel Guerra-Gonzalez, 27, both Mexican nationals, are in state custody on pending local charges; they will be transferred to federal custody to face the charges in the indictment. The defendants arrested yesterday are scheduled to make their initial appearances in federal court in Albuquerque this morning.

Four defendants, Homero Varela, 29, Manuel Villa-Mayorquin, 23, and Procoro Noberto-Alvarez, 28, Mexican nationals, and Ramon Gonzalez, Jr., 25, of Edgewood, have yet to be arrested and are considered fugitives.

The indictment alleges that, between May 2011 and January 2012, all 15 defendants participated in a conspiracy to distribute controlled substances, including cocaine, methamphetamine and marijuana. Each defendant also is charged with using communication devices to facilitate drug trafficking crimes (sometimes referred to as “phone counts”), and Homero Varela is charged with distributing methamphetamine on three separate occasions over a three month period. The maximum penalties for a conviction on the conspiracy charge and each of the three methamphetamine distribution charges is a minimum 10 years’ to a maximum of life imprisonment and a $10 million fine, and the maximum penalty for a conviction on each of the phone counts is four years of imprisonment and a $250,000 fine.

The indictment also charges Homero Varela, Roy Madrid, 21, of Albuquerque, and Manuel Villa-Mayorquin with conspiracy to launder money. Homero Varela is further charged with an additional count of money laundering involving drug proceeds. A conviction on the money laundering conspiracy carries a maximum penalty of 20 years of imprisonment, and a conviction on the substantive money laundering charge carries a maximum penalty of ten years of imprisonment and a $250,000 fine.

Ramon Gonzalez, Jr., is charged with seven counts of structuring financial transactions to avoid certain reporting requirements for an aggregate of $166,300 through 24 transactions between April 2009 and August 2011. Steve Chavez is charged with structuring an aggregate of $348,500 in 37 transactions between July 1, 2011 and August 25, 2011. The maximum penalty for a conviction on each of these counts is five years of imprisonment and a $250,000 fine.

The indictment also seeks forfeiture of property constituting, or derived from proceeds obtained directly, or indirectly, from the defendants’ illegal drug trafficking and financial crimes, including three Albuquerque residences owned, occupied or in the possession of Homero Varela, Ramon Gonzalez, Sr., and Steve Chavez, respectively, and a ranch in Edgewood owned by Ramon Gonzalez, Sr. It also seeks forfeiture of funds in numerous bank accounts in the names of Homero Varela, Ramon Gonzales, Sr., Ramon Gonzalez, Jr., Andres Gonzalez and Steve Chavez, as well as a money judgment of at least $15,000,000, the amount of money allegedly derived or involved in the offenses alleged in the indictment.

During yesterday’s law enforcement operation, officers seized a half kilogram of cocaine, more than 10 pounds of high grade marijuana, approximately $25,000 in cash, 20 vehicles, seven handguns, nine rifles, and two shotguns.

In announcing yesterday’s arrests, U.S. Attorney Gonzales said, “The charges in this indictment are some of the most significant drug and money laundering charges ever filed in the District of New Mexico. The investigation that led to this indictment exemplifies the law enforcement cooperation that we are fortunate to experience here in New Mexico. Federal, state and local officers worked long and hard and side-by-side in a coordinated effort to arrest numerous individuals charged in the indictment. We owe a debt of gratitude to everyone involved in the investigation. Their efforts have made our streets and communities much safer.”

“The Varela organization has been responsible for distributing multi-kilogram quantities of cocaine, marijuana, and methamphetamine in central and north central New Mexico,” said DEA Special Agent in Charge Arabit. “DEA and our federal, state, county, and municipal law enforcement partners have worked hand-in-hand to disrupt this organization from its roots, culminating in the indictment of 15 of its members of which 11 are in custody and the seizure of their drugs and assets, including 20 vehicles, 18 weapons, cash, and real property. Through these enforcement actions, we are making our communities safer.”

“These significant investigations and arrests would not have been possible without the joint efforts of the Organized Crime Drug Enforcement Task Force, led by the DEA, the FBI’s Safe Streets Task Forces in Albuquerque and Las Cruces, the U.S. Attorney’s Office and numerous other local, state and federal law enforcement agencies throughout the region, said FBI Special Agent in Charge Lee. “We all share the same goal: stop criminal enterprises that profit from the illegal trade of dangerous drugs and take away any financial benefit they receive from their crimes. The Albuquerque FBI will continue to collaborate with our law enforcement and community partners to rid our rural and urban areas of drug traffickers and other criminals and help make New Mexico and our nation a safer place to live.”

IRS Special Agent in Charge Mertz stated, “This indictment once again reflects the successful merging of law enforcement personnel, who work together through the task force, providing their specific skills, with the common purpose of ferreting out potential nefarious narcotics and related financial crimes. IRS Criminal Investigation will continue to work alongside our law enforcement partners to investigate those individuals who ignore the laws of our country for financial gain.”

The case is being prosecuted by Assistant U.S. Attorneys Reeve Swainston and Samuel L. Hurtado, and was investigated by DEA, FBI, and IRS with support from the New Mexico State Police, the Albuquerque Police Department, the El Paso County Sheriff’s Office, and the Corrales Police Department. Homeland Security Investigations, the U.S. Marshal’s Service, the U.S. Border Patrol, the Bernalillo County Sheriff’s Office, the Air Branch of U.S. Customs and Border Protection, the New Mexico Department of Public Safety Motor Transportation Police Division, and the Region II HIDTA Task Force participated in yesterday’s law enforcement operation.

Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty 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

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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.


John A. Ortiz Sentenced to 18 Months in Federal Prison for Structuring More Than $943,000 in Cash Transactions

August 26, 2011

The Federal Bureau of Investigation (FBI) on August 25, 2011 released the following:

“David B. Fein, United States Attorney for the District of Connecticut, announced that JOHN A. ORTIZ, 54, of Stratford, was sentenced today by United States District Judge Janet C. Hall in Bridgeport to 18 months of imprisonment, followed by two years of supervised release, for illegally structuring more than $943,000 in cash transactions. Judge Hall also ordered ORTIZ to forfeit approximately $388,540 to the government, and to pay a fine in the amount of $75,000.

Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.

According to court documents and statements made in court, ORTIZ maintained a money market savings account at a credit union, and also had a personal line of credit at a bank. Between May 2006 and October 2009, ORTIZ made more than 70 large cash deposits into his savings account and more than 30 large cash payments to his personal line of credit account. The vast majority of the cash transactions were in the amount of $9000, and none exceeded $10,000. In total, ORTIZ structured approximately $943,000 in cash deposits and line of credit payments.

ORTIZ used the deposited funds to purchase, or to obtain credit in order to purchase, properties in Connecticut and Florida. ORTIZ also used more than $270,000 of the structured funds to settle a business dispute with his former partner.

ORTIZ owns and operates towing and auto repair businesses in Bridgeport and Stratford.

On May 25, 2011, ORTIZ waived his right to indictment and pleaded guilty to one count of structuring cash transactions.

This matter was investigated by the Internal Revenue Service—Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Senior Litigation Counsel Richard J. Schechter.”

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 extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List 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.

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