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

August 26, 2014

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

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

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 The indictment subsequently was superseded to add an interstate transportation of converted property charge and a theft of government property charge.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

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

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

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

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

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

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

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

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

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

Federal Crimes – Appeal

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

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

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


Thirteen Individuals Indicted in an Alleged Health Care Fraud and Drug Distribution Scheme

March 20, 2013

The Federal Bureau of Investigation (FBI) on March 19, 2013 released the following:

“Five Doctors, Four Pharmacists, and Home Health Agency Owner Among Those Indicted in Follow-Up to the Babubhai Patel Case

Thirteen individuals have been charged in a large-scale health care fraud and drug distribution scheme, United States Attorney Barbara L. McQuade announced today.

McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso of the Drug Enforcement Administration, Special Agent in Charge Robert D. Foley, III of the Federal Bureau of Investigation, and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.

The superseding indictment, unsealed yesterday, adds 13 new defendants and new charges to a 2011 indictment, which charged Canton Pharmacist Babubhai ‘Bob” Patel with overseeing a massive health care fraud and drug distribution ring at more than 20 pharmacies that he owned and controlled in metro-Detroit.

The 13 new defendants named in the superseding indictment include five doctors, four pharmacists, and a home health agency owner:

  • pharmacist Mehul Patel, 34, of Canton
  • pharmacist Pradeep Pandya, 49, of Grand Blanc
  • pharmacist Vikas Sharma, 34, of Windsor
  • pharmacist Mukesh Khunt, 33, of Toronto
  • physicians Richard Utarnachitt, 71; of Clinton Township
  • physician Ruben Benito, 72, of Madison Heights
  • physician Javaid Bashir, 59, of Jackson
  • physician Carl Fowler, 60, of West Bloomfield
  • physician Rajat Daniel, 47, of West Bloomfield
  • home health agency owner Vinod Patel, 40, of Canton
  • business associate Atul Patel, 31, of Canton
  • marketer Anthony Macklin, a.k.a. “Jimbo,” of Detroit
  • marketer Michael Thoran, a.k.a. “Ace,” also of Detroit

The 21-count superseding indictment charges that Babubhai Patel was the owner and controller of approximately 26 Michigan pharmacies. The indictment alleges that Babubhai Patel would offer and provide kickbacks, bribes, and other illegal benefits to physicians to induce those physicians to write prescriptions for patients with Medicare, Medicaid, and private insurance. Patel would also direct that those prescriptions be presented to one of the Patel Pharmacies for billing. In exchange for their kickbacks and inducements, the physicians would write prescriptions for the patients and bill the relevant insurers for services supposedly provided to the patients without regard to the medical necessity of those prescriptions and services. The physicians would direct the patients to fill their prescriptions at one of the Patel Pharmacies, where Babubhai Patel and his pharmacists would bill insurers, including Medicare, Medicaid, and private insurers, for dispensing the medications, despite the fact that the medications were medically unnecessary and, in many cases, never provided. Patients were recruited into the scheme by patient recruiters or “marketers,” who would pay kickbacks and bribes to patients in exchange for the patients’ permitting the Patel Pharmacies and the physicians associated with Patel to bill their insurance for medications and services that were medically unnecessary and/or never provided.

The indictment further alleges a conspiracy to distribute controlled substances at the Patel pharmacies to facilitate the submission of false and fraudulent claims to Medicare, Medicaid, and private insurers. According to the indictment, Babubhai Patel and his associates paid physicians kickbacks for prescriptions for controlled substances for their patients and directed those patients to fill the prescriptions at a Patel Pharmacy. The controlled substances included the Schedule II drug oxycodone (Oxycontin), the Schedule III drug hydrocodone (Vicodin, Lortab), the Schedule IV drug alprazolam (Xanax), and the Schedule V drug cough syrup with codeine. According to the indictment, prescriptions for these drugs were written outside the course of legitimate medical practice. Babubhai Patel and his pharmacists would then dispense the controlled drugs to patients without medical necessity. The distribution of controlled substances in this manner was intended, in part, as a kickback to the patients for agreeing to enable their insurance cards to be billed for medications purportedly dispensed at the Patel Pharmacies. The indictment also alleges that Babubhai Patel and his pharmacists dispensed controlled substances outside the scope of legitimate medical practice to patient recruiters or “marketers,” as a kickback for their efforts in to recruit patients into the scheme.

In addition to his pharmacies, the indictment alleges that Babubhai Patel had an ownership interest in a home health agency managed by his brother, Vinod Patel. The indictment alleges that Vinod Patel, Babubhai Patel, and others bribed physicians and other referral sources for referrals to that home health agency and then billed the Medicare program for home health services that were medically unnecessary and never provided.

Of the 26 defendants originally charged in the indictment, six, including Babubhai Patel and four pharmacists, were convicted at a trial last summer. Fifteen additional defendants, including six pharmacists and two doctors, have pleaded guilty in the case. The five remaining defendants whose charges were renewed in the superseding indictment are set for trial on June 10, 2013. On February 1, 2013, Babubhai Patel was sentenced to 17 years’ imprisonment by U.S. District Judge Arthur J. Tarnow.

“Taxpayers fund Medicare and Medicaid to provide health care for needy citizens,” McQuade said. “We hope that doctors and pharmacists will take note that if they exploit these programs for personal profit, they will face serious consequences.”

Robert L. Corso, Special Agent in Charge of DEA’s Detroit Field Division stated, “Confronting the illegal diversion and abuse of controlled pharmaceuticals is a top priority of DEA and our law enforcement partners. Today’s indictments, particularly of the medical professionals are significant. It is alleged that these individuals abused their positions of trust and endangered the lives of countless people by illegally distributing opiate painkillers and depressants throughout southeast Michigan. This investigation makes it clear that the DEA and our partners in law enforcement will continue to investigate and bring to justice those individuals that are responsible for the illegal distribution of prescription medicines.”

FBI Special Agent Robert Foley stated, “Dishonest health care providers and pharmacists who exploit Medicare and Medicaid through fraudulent billing and other schemes will be held accountable for their crimes. The FBI remains committed to investigating this type of fraud and bringing those who abuse the system to justice.”

“Schemes involving the illegal diversion and/or distribution of controlled substances go hand and hand with the fraudulent billing of Medicare and other health care programs,” said Lamont Pugh, III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General—Chicago Regional Office. “The OIG and our law enforcement partners are acutely aware of the potential for those who commit health care fraud to utilize this blended approach when seeking to line their pockets with tax payer dollars. The indictments and arrests announced today illustrate our combined commitment and effort to protect the safety and well-being of the public and as well as the health care programs they rely upon.”

The investigation in this case was handled by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Wayne F. Pratt.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

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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.


Australian Citizen and Former Research Analyst Charged with Alleged Insider Trading

December 27, 2012

The Federal Bureau of Investigation (FBI) on December 26, 2012 released the following:

Australian Charged in Addition to Two Stockbrokers Already Arrested for Trading on Inside Information Relating to IBM’s Acquisition of SPSS in 2009

NEW YORK— Trent Martin, a citizen of Australia and a former research analyst at an international financial services firm, was charged today for his alleged involvement in an insider trading scheme with Thomas C. Conradt and David J. Weishaus, two stockbrokers who were arrested for the same offenses on November 29, 2012, announced U.S. Attorney for the Southern District of New York Preet Bharara and Assistant Director in Charge of the New York Field Office of the FBI George Venizelos. Martin, Conradt, Weishaus, and their co-conspirators allegedly traded on the basis of material, non-public information concerning IBM’s acquisition of a software company, SPSS Inc., in 2009, earning in the aggregate more than $1 million in profits. The case against Martin, Conradt, and Weishaus is assigned to U.S. District Judge Andrew L. Carter, Jr.

Martin was arrested on December 22, 2012 in Hong Kong following a request from the United States. Following their earlier arrests in the United States, Conradt and Weishaus pleaded not guilty on December 7, 2012 and are scheduled to appear next before Judge Carter on January 18, 2013 at 10:00 a.m.

The following allegations are based on the superseding indictment unsealed today in Manhattan federal court:

The inside information concerning IBM’s acquisition of SPSS allegedly originated from a corporate lawyer (Attorney-1) who was part of the legal team that represented IBM in the transaction in 2009. On May 31, 2009, Attorney-1 shared inside information concerning the transaction—including the names of the parties and the fact that IBM was going to acquire SPSS for a significant premium over SPSS’s market price—with his close friend, Trent Martin. The information was shared in confidence. Based on their longstanding history of sharing confidences, among other things, Attorney-1 expected that Martin would not share the information or use it to trade.

In June 2009, however, Martin bought SPSS common stock based on the inside information he was given by Attorney-1 and, in turn, shared the tip with his roommate, Conradt, who worked as a stockbroker at a securities trading firm (Securities Trading Firm-1). Conradt then bought SPSS common stock and tipped Weishaus, his co-worker at Securities Trading Firm-1. On June 24, 2009, Weishaus started buying call option contracts in SPSS. In addition, Conradt and Weishaus tipped their co-workers at Securities Trading Firm-1 (CC-1 and CC-2), who also bought SPSS call option contracts in June and July 2009 based on the inside information.

In instant messages exchanged in July 2009, Conradt and Weishaus discussed their insider trading scheme and the fact that their information came from Martin. For example, on July 1, 2009, Weishaus wrote to Conradt, “somebody is buying spss . . . we should get [CC-1] to buy a f***load [of SPSS shares] . . . .” Conradt responded, “jesus don’t tell anyone else . . . we gotta keep this in the family.” Weishaus answered, “dude, no way. i dont want to go to jail f*** that . . . martha stewart spent 5 months in the slammer . . . and they tried to f*** the mavericks owner.” Later that same day, Weishaus wrote to Conradt, “jesus, we need spss to run up i need that lexus.”

On July 10, 2009, Weishaus wrote to Conradt, “we need some turn around on spss.” Conradt responded, referring to Trent Martin by name: “[Y]eah i called trent, gonna get more details tonight he was at work, couldn’t talk[.]”

In another instant message exchange, on July 23, 2009, Conradt asked Weishaus to buy SPSS call options for Conradt, but Weishaus declined. In response, Conradt wrote, “wtf, i’m setting this deal up for everyone . . . makin everyone rich.” Weishaus responded, “[Another individual] is gonna put in 50k sept options.” Conradt then wrote, again referring to Trent Martin by name, “holy f*** . . . god trent told me not to tell anyone . . . big mistake.” Weishaus responded, “eh, we’ll get rich.”

That same day, Martin told Attorney-1 that he had purchased SPSS common stock and call options on the basis of the inside information that Attorney-1 had disclosed to Martin at their brunch on or about May 31, 2009.

When IBM announced its acquisition of SPSS on July 28, 2009, the share price of SPSS common stock rose by 41 percent in one day, from the prior day’s closing price of $35.09 per share to a closing price of $49.45 per share. Thereafter, Martin, Conradt, Weishaus, CC-1 and CC-2 sold their SPSS positions, yielding profits of $7,900, $2,538, $129,290, $629,954 and $254,360, respectively, for a total profit in excess of $1 million.

In the fall of 2010, after the SEC had begun investigating insider trading in SPSS, Martin told Attorney-1 that he had profited approximately $8,000 from the inside information concerning IBM’s acquisition of SPSS and had disclosed it to his roommate, Conradt, before the transaction was publicly announced. Martin also told Attorney-1 that Martin believed Conradt had taken a large position in SPSS before the announcement and had, in turn, shared the inside information with others. Martin further stated to Attorney-1 that he was returning to Australia in light of the U.S. Securities and Exchange Commission investigation, and that he knew that insider trading can result in jail sentences, referring to the criminal prosecution of Martha Stewart.

* * *

Martin, 33, has been charged with one count of conspiracy to commit securities fraud and one count of securities fraud. Count one, the conspiracy charge, carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Count two, the securities fraud charge, carries a maximum potential penalty of 20 years in prison and a maximum fine of $5 million.

U.S. Attorney Bharara praised the investigative work of the FBI and thanked authorities in Hong Kong who are providing assistance with this case. He also thanked the SEC and the U.S. Department of Justice’s Office of International Affairs. Mr. Bharara noted that the investigation is continuing.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John T. Zach and David B. Massey are in charge of the prosecution.

The charges contained in the indictments are merely accusations, and the defendants are 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.


“Thirty-Four Alleged Aryan Brotherhood of Texas Gang Members Indicted on Federal Racketeering Charges”

November 9, 2012

The Federal Bureau of Investigation (FBI) on November 9, 2012 released the following:

“WASHINGTON— Thirty-four alleged members of the Aryan Brotherhood of Texas (ABT) gang, including four of its most senior leaders, have been indicted by a federal grand jury in Houston for allegedly conspiring to participate in a racketeering enterprise, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent in Charge Melvin D. King of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Houston Division; and FBI Special Agent in Charge Stephen L. Morris of the Houston Field Office.

The 17-count superseding indictment was returned by a federal grand jury on October 22, 2012, and unsealed today in U.S. District Court in the Southern District of Texas. Fourteen individuals were taken into custody today, and 15 defendants charged in the superseding indictment are already in custody. Five defendants remain at large.

“Today’s takedown represents a devastating blow to the leadership of ABT,” said Assistant Attorney General Breuer. “Four ABT generals, 13 additional alleged ABT leaders, and numerous other gang members and associates are named in the indictment. As charged, ABT uses extreme violence and threats of violence to maintain internal discipline and retaliate against those believed to be cooperating with law enforcement. Through violence and intimidation, ABT allegedly exerts control over prison populations and neighborhoods and instills fear in those who come in contact with its members. As today’s operations show, the Criminal Division, working closely with its federal, state, and local law enforcement partners, is determined to continue disrupting and dismantling ABT and other violent, criminal gangs.”

“This indictment is the culmination of a joint federal, state, and local law enforcement effort targeting a large-scale prison gang involved in violent organized crime,” said U.S. Attorney Magidson. “Only when we work in partnership utilizing all our resources can we attack a criminal organization and dismantle it entirely.”

“ATF is serious about fighting violent crime. We remain steadfast in our commitment to focus on those violent criminals who illegally use firearms to prey on their victims,” said ATF Special Agent in Charge King. “Through a collective effort with our law enforcement partners, this operation was a success today.”

“This multi-year investigation and indictment clearly targets the worst-of-the-worst among the ABT,” said FBI Special Agent in Charge Morris. “This effort not only exemplifies the level of effort the FBI and our law enforcement partners will expend to prevent prison gang racism and criminal activity from poisoning our communities. It sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these criminal enterprises regardless of where they lay their heads.”

As charged, the defendants range from senior leaders to soldiers of the ABT, a “whites only,” prison-based gang with members operating inside and outside of state and federal prisons throughout Texas and elsewhere in the United States since at least the early 1980s.

According to court documents, the ABT has a detailed and uniform organizational structure, with territory divided into five regions, each run by a “general.” The superseding indictment charges four generals: Terry Ross Blake, 55, aka “Big Terry”; Larry Max Bryan, 51, aka “Slick”; William David Maynard, 42, aka “Baby Huey”; and Charles Lee Roberts, 68, aka “Jive,” with conspiracy to participate in the racketeering activities of the ABT, among other charges.

In total, the superseding indictment charges 34 alleged members of the ABT with conspiracy to participate in the racketeering activities of the ABT. Alleged members of the ABT are also charged with involvement in three murders, multiple attempted murders, kidnappings, assaults, and conspiracy to distribute methamphetamine and cocaine.

According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to court documents, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT is alleged to have has expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects, and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery, and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for membership, a person must be sponsored by another ABT member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

Ten defendants have been charged with offenses that are eligible for the death penalty. The remaining 24 defendants face a maximum penalty of life in prison.

An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated by a multi-agency task force consisting of the ATF; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; the Montgomery County, Texas Sheriff’s Department; Houston Police Department-Gang Division; Texas Department of Criminal Justice-Office of Inspector General; Harris County, Texas Sheriff’s Office; Tarrant County, Texas Sheriff’s Office; Atascosa County, Texas Sheriff’s Office; Orange County, Texas Sheriff’s Office; Waller County, Texas Sheriff’s Office; Fort Worth, Texas Police Department; San Antonio Police Department; Baytown, Texas Police Department; Carrollton, Texas Police Department; Alvin, Texas Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; Harris County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.

The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas.”

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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.


Unsealed Federal Criminal Indictment Alleges that 13 Alleged Members of the Hankton Organization Committed Violent Crimes in Aid of Racketeering and Other Serious Federal Crimes

October 20, 2012

The Federal Bureau of Investigation on October 19, 2012 released the following:

“NEW ORLEANS, LA— Walter Porter, 37, a/k/a “Urkel” a/k/a “Moonie”; Nakia Hankton, 34; Shirley Hankton, 58, ; Telly Hankton, 36, a/k/a “Third” a/k/a “Wild”; Thomas Hankton, 36, a/k/a “Squirt”; Troy Hankton, 28; George Jackson, 38, a/k/a “Black”; Derrick Smothers, 34, a/k/a “Dump”; Andre Hankton, 35; Kevin Jackson, 39; Netthany Schexnayder, 33; Sana Johnson, 37; and Terrell Smothers, 36, all of New Orleans, Louisiana, were charged in a 22-count superseding indictment by a federal [g]rand jury on Thursday October 18, 2012, announced Jim Letten, United States Attorney for the Eastern District of Louisiana; Michael Anderson, FBI Special Agent in Charge for the New Orleans Division; and Phil Durham, ATF Special Agent in Charge; along with Jimmy Fox III, DEA Special Agent in Charge; Genny May, United States Marshal, Eastern District of Louisiana; Leon Cannizzaro, Orleans Parish District Attorney; and Ronal Serpas, NOPD Superintendent.

The superseding indictment was unsealed today as most of the defendants were taken into custody by federal agents or were already in custody on related matters. Presently there are no defendants who are considered to be fugitives.

According to the superseding indictment, members of this organization and their associates ran a violent drug ring in and around the city of New Orleans dating back to 1996. During the course of this organization’s existence, its members and associates murdered rival drug dealers, intimidated witnesses, attempted to obstruct the state criminal justice system by having associates provide false alibi testimony in state court, and murdered a witness’ family member in an effort to obstruct justice.

Specifically, Andre Hankton, Telly Hankton, Kevin Jackson, Walter Porter, and Thomas Hankton are all charged in specific murders and could potentially face the death penalty for the murders of Darnell Stewart, Jesse Reed, Hasan Williams, and Curtis Matthews (counts five, six, eight, nine, 10, 11, 15, and 16). No decision concerning this issue has been made at this time. As in all possible capital cases, this case must be reviewed according to a strict protocol to determine whether the Department of Justice will seek the death penalty.

Speaking to today’s unsealed indictment, U.S. Attorney Letten stated:

“Today, as the result of the outstanding work of the men and women of federal enforcement and our partners in the New Orleans Police Department and the District Attorney’s Office, yet another powerful blow has been made against an organization whose members are alleged to have committed murder and violence against our community. My deepest gratitude goes to the dedicated members of our own office, together with special agents of the FBI and ATF, along with DEA and the Marshals Service.”

“Our very special thanks go out to Orleans Parish District Attorney Leon Cannizzaro, NOPD Superintendent Ronal Serpas, and their tremendous team for their commitment, hardwork, professionalism, and partnership. Without NOPD’s investigative work, and the District Attorney’s indispensable charging groundwork, partnership, and seamless cooperation, the full extent of this indictment would not have been achieved.”

Mike Anderson, Special Agent in Charge of the FBI’s New Orleans Field Office, added:

“This investigation is a clear reflection of the FBI’s enhanced commitment to address localized violent street gangs, in partnership with our federal, state, and local law enforcement counterparts. Accordingly, such criminal activity will remain a top investigative priority.”

Phil Durham, Special Agent in Charge of ATF, stated:

“ATF’s primary goal is to work along side our other law enforcement partners to reduce the number of homicides and other violent crimes committed with firearms. This joint effort clearly illustrate our commitment of the federal, state, and local law enforcement agencies to making our communities safer.”

U.S. Attorney Letten reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.

No further information is available at this time.

This indictment is the culmination of a long federal grand jury investigation that was conducted with the assistance of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the United States Marshals Service; the New Orleans Police Department; the New Orleans District Attorney’s Office; and the United States Attorney’s Office for the Eastern District of Louisiana.”

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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.


Physician Pleads Guilty to Conspiracy to Commit Health Care Fraud Violation

October 10, 2012

The Federal Bureau of Investigation on October 10, 2012 released the following:

“NEW ORLEANS— Dr. Jack Voight, age 81, of Metairie, Louisiana pleaded guilty yesterday before U.S. District Court Judge Lance M. Africk to conspiracy to commit health care fraud, announced U.S. Attorney Jim Letten.

According to the second superseding indictment, Voight participated in a criminal organization for the purpose of fraudulently billing Medicare and Medicaid. Patients went to the medical clinics for medical tests that were not performed and not medically necessary. Patients were moved between the various clinics to repeatedly perform the same unnecessary tests. According to the superseding bill of information and indictment, the doctors, including Voight, gave the patients prescriptions for drugs, usually narcotics, for their cooperation.

Thereafter, bills for the false and unnecessary services were submitted to Medicaid and Medicare by a third party medical claims processing and billing company that worked with other New Orleans-area clinics that have already entered guilty pleas.

Count 32 of the superseding indictment carries a possible maximum sentence of 10 years’ imprisonment. Sentencing for Voight has been set for January 10, 2012.

Artem Gasparyan, Anahit Petrosyan, Vadim Mysak, Daria Litvinova, Ernestine Girod, Anna Aivazova, Aram Khlgatian, Jo Ann Girod; and the medical clinics, Health Plus Consulting Inc., Saturn Medical Group, New Millennium Medical Group, Inc.; and the biller, Solo Lucky Claims Processing Inc., have already pleaded guilty and most are awaiting sentence.

The investigation was conducted by special agents of the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorneys Patrice Harris Sullivan, G. Dall Kammer, and Jordan Ginsberg.”

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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.


Former U.S. Consulate Guard Pleads Guilty to Attempting to Communicate National Defense Information to China

August 31, 2012

The Federal Bureau of Investigation (FBI) on August 30, 2012 released the following:

“WASHINGTON— Bryan Underwood, a former civilian guard at a U.S. Consulate compound under construction in China, pleaded guilty today in the District of Columbia in connection with his efforts to sell for personal financial gain classified photographs, information, and access related to the U.S. Consulate to China’s Ministry of State Security (MSS).

At a hearing today before U.S. District Judge Ellen S. Huvelle, Underwood pleaded guilty to one count of attempting to communicate national defense information to a foreign government with intent or reason to believe that the documents, photographs, or information in question were to be used to the injury of the United States or to the advantage of a foreign nation.

The guilty plea was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen, Jr., U.S. Attorney for the District of Columbia; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Eric J. Boswell, Assistant Secretary of State for Diplomatic Security.

Underwood, 32, a former resident of Indiana, was first charged in an indictment on August 31, 2011, with two counts of making false statements and was arrested on September 1, 2011. On September 21, 2011, he failed to appear at a scheduled status hearing in federal court in the District of Columbia. The FBI later located Underwood in a hotel in Los Angeles and arrested him there on September 24, 2011. On September 28, 2011, Underwood was charged in a superseding indictment with one count of attempting to communicate national defense information to a foreign government, two counts of making false statements, and one count of failing to appear in court pursuant to his conditions of release. Sentencing for Underwood has been scheduled for November 19, 2012. He faces a maximum potential sentence of life in prison.

“Bryan Underwood was charged with protecting a new U.S. Consulate compound against foreign espionage, but, facing financial hardship, he attempted to betray his country for personal gain,” said Assistant Attorney General Monaco. “This prosecution demonstrates that we remain vigilant in protecting America’s secrets and in bringing to justice those who attempt to compromise them.”

“Bryan Underwood was determined to make millions by selling secret photos of restricted areas inside a U.S. Consulate in China,” said U.S. Attorney Machen. “His greed drove him to exploit his access to America’s secrets to line his own pockets. The lengthy prison sentence facing Underwood should chasten anyone who is tempted to put our nation at risk for personal gain.”

“Bryan Underwood sought to benefit from his access to sensitive information, but his attempted betrayal was detected before our nation’s secrets fell into the wrong hands,” said FBI Assistant Director in Charge McJunkin. “Together with our partners, the FBI will continue to work to expose, investigate, and prevent acts of espionage that threaten our national security.”

“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI, and the U.S. Attorney’s Office resulted in the capture and conviction of Bryan Underwood before he could harm the security of our country,” said Assistant Secretary of State Boswell. “The Diplomatic Security Service is firmly committed to thoroughly investigating all potential intelligence threats to our nation.”

According to court documents, from November 2009 to August 2011, Underwood worked as a cleared American guard (CAG) at the construction site of a new U.S. Consulate compound in Guangzhou, China. CAGs are American civilian security guards with top secret clearances who serve to prevent foreign governments from improperly obtaining sensitive or classified information from the U.S. Consulate. Underwood received briefings on how to handle and protect classified information as well as briefings and instructions on security protocols for the U.S. Consulate, including the prohibition on photography in certain areas of the consulate.

Plan to Sell Information and Access for $3 Million to $5 Million

In February 2011, Underwood was asked by U.S. law enforcement to assist in a project at the consulate, and he agreed. In March 2011, Underwood lost a substantial amount of money in the stock market. According to court documents, Underwood then devised a plan to use his assistance to U.S. law enforcement as a “cover” for making contact with the Chinese government. According to his subsequent statements to U.S. law enforcement, Underwood intended to sell his information about and access to the U.S. Consulate to the Chinese MSS for $3 million to $5 million. If any U.S. personnel caught him, he planned to falsely claim he was assisting U.S. law enforcement.

As part of his plan, Underwood wrote a letter to the Chinese MSS expressing his “interest in initiating a business arrangement with your offices” and stating, “I know I have information and skills that would be beneficial to your offices [sic] goals. And I know your office can assist me in my financial endeavors.” According to court documents, Underwood attempted to deliver this letter to the offices of the Chinese MSS in Guangzhou but was turned away by a guard who declined to accept the letter. Underwood then left the letter in the open in his apartment hoping that the Chinese MSS would find it, as he believed the MSS routinely conducted searches of apartments occupied by Americans.

In May 2011, Underwood secreted a camera into the U.S. Consulate compound and took photographs of a restricted building and its contents. Many of these photographs depict areas or information classified at the secret level. Underwood also created a schematic that listed all security upgrades to the U.S. Consulate and drew a diagram of the surveillance camera locations at the consulate. In addition, according to his subsequent statements to U.S. law enforcement, Underwood “mentally” constructed a plan in which the MSS could gain undetected access to a building at the U.S. Consulate to install listening devices or other technical penetrations.

According to court documents, the photographs Underwood took were reviewed by an expert at the State Department’s Bureau of Diplomatic Security who had original classification authority for facilities, security, and countermeasures at the U.S. Consulate. The expert determined that many of the photographs contained images classified at the secret level and that disclosure of such material could cause serious damage to the United States.

In early August 2011, Underwood was interviewed several times by FBI and Diplomatic Security agents, during which he admitted making efforts to contact the Chinese MSS, but falsely claimed that he took these actions to assist U.S. law enforcement. On August 19, 2011, Underwood was again interviewed by law enforcement agents, and he admitted that he planned to sell photos, information, and access to the U.S. Consulate in Guangzhou to the Chinese MSS for his personal financial gain.

The U.S. government has found no evidence that Underwood succeeded in passing classified information concerning the U.S. Consulate in Guangzhou to anyone at the Chinese MSS.

This investigation was conducted jointly by the FBI’s Washington Field Office and the State Department’s Bureau of Diplomatic Security. The prosecution is being handled by the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Brandon L. Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

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To find additional federal criminal news, please read Federal 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.