Sean E. Wagner, Former Owner of Two Florida Airline Fuel Supply Companies, Charged for Alleged Role in Scheme to Defraud Illinois-Based Ryan International Airlines

July 22, 2013

The U.S. Department of Justice’s Office of Public Affairs on July 22, 2013 released the following:

“A former owner and operator of two Florida-based airline fuel supply service companies made his initial appearance today in the U.S. District Court for the Southern District of Florida in West Palm Beach on charges of participating in a scheme to defraud Illinois-based Ryan International Airlines, the Department of Justice announced.

Sean E. Wagner was arrested on July 19, 2013, in Weston, Fla., on a one-count criminal complaint to commit wire fraud and honest services fraud relating to a scheme to defraud Ryan, a charter airline company based in Rockford, Ill. At today’s hearing, the department said that Wagner was arrested after there were indications that he was a flight risk.

The criminal complaint alleges that Wagner participated in a conspiracy to defraud Ryan by making kickback payments to Wayne Kepple, the former vice president of ground operations for Ryan in charge of contracting with providers of goods and services on behalf of the company. In exchange, Kepple awarded business to Wagner’s fuel supply service companies. According to the criminal complaint, from at least as early as December 2005 through at least August 2009, Wagner, his companies, and others made kickback payments totaling more than $200,000, in the form of checks, wire transfers, gift cards and cash, to Kepple while working at Ryan.

Ryan provided air passenger and cargo services for corporations, private individuals, and the U.S. government, including the U.S. Department of Defense, the U.S. Department of Homeland Security and the U.S. Marshals Service.

“The Antitrust Division will take enforcement action against those who subvert the competitive process by trading contracts for kickbacks, especially where the U.S. government is being victimized,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division will hold accountable those who seek to defraud the government and U.S. taxpayers.”

Wagner is charged with one count of conspiracy to commit wire fraud and honest services fraud, which carries a maximum sentence of 20 years in prison and a $250,000 criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.

As a result of this ongoing investigation, four individuals have pleaded guilty to date. Three of the individuals have been ordered to serve sentences ranging from 16 to 24 months in prison and to pay more than $220,000 in restitution. The fourth individual, Wayne Kepple, pleaded guilty and is awaiting sentencing.

This charge is the result of an investigation being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General, with assistance from the U.S. Attorney’s Office for the Southern District of Florida.”

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

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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 Agents Arrest Six People Across Alabama Charged with an Alleged State Inmate in Tax Refund Scheme

June 7, 2013

The Federal Bureau of Investigation (FBI) on June 6, 2013 released the following:

“BIRMINGHAM—Federal agents today arrested six people in four cities across Alabama who are charged in connection with a five-year federal tax fraud conspiracy directed from inside an Alabama state prison, announced U.S. Attorney Joyce White Vance, Internal Revenue Service-Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein, Jr.

The man charged as the leader of the conspiracy, Shermaine “Shade” German, 56, now incarcerated in Bibb County Correctional Facility in Brent, was an inmate at Donaldson Correctional Facility in Bessemer at the time of the conspiracy. He is charged with orchestrating the far-reaching tax fraud scheme from Donaldson, where he obtained the names, birth dates, and Social Security numbers of other people, often fellow inmates, including prisoners on death row and those serving sentences of life without parole. He used their information to create false income tax returns that contained fabricated amounts of tax withholdings, according to the indictment unsealed following the arrests.

German also created false power of attorney forms, which he mailed out of the prison along with the false income tax returns, according to the indictment. Various other members of the conspiracy notarized the power of attorney forms and used them to cash or deposit income tax refund checks received as part of the scheme, according to the indictment.

Six of seven people charged in the conspiracy with German were arrested today in Huntsville, Montgomery, Eufaula, and Mobile.

“Schemes such as this involve millions of dollars stolen from legitimate taxpayers and the U.S. Treasury,” Vance said. “Thanks to the diligent and cooperative efforts of law enforcement, we were able to shut down this long-term fraud.”

“Individuals who commit refund fraud and identity theft with this degree of trickery, dishonesty, and deceit deserve to be punished to the fullest extent of the law,” Hyman-Pillot said. “We, along with the United States Attorney’s Office, continue to do our part in protecting the sanctity and integrity of the tax system.”

“This case, as others our office and our law enforcement partners have investigated, shows that a person’s identity and identification numbers have become a valuable commodity to today’s criminal and should be guarded diligently by their owners,” Schwein said.

The 20-count May indictment filed in U.S. District Court charges that German and his co-defendants conspired from January 2008 through May 2013 to obtain payment of false claims for refunds from the Internal Revenue Service by filing fraudulent federal income tax returns in other people’s names.

Charged along with German in the conspiracy are: Ronald Webster, 55; Brenda Joyce McDonald, 55; and Yvette Berry Pinckney, 48, all of Montgomery; Marlo Yvette Miller, 46; and Irene King Douglas, 58, both of Huntsville; Cynthia Dianne Ware, 49, of Eufaula; and Barbara Ann Grimes, 62, of Mobile.

McDonald is the one defendant not yet in custody.

Further details of the scheme, as outlined in count one of the indictment, are as follows:

Douglas sent blank tax return forms to German in prison. Douglas also received and cashed or deposited proceeds from tax refund checks using power of attorney forms she had someone else notarize.

German used two addresses in Montgomery and one in Mobile as return addresses where tax refunds should be delivered. One of the addresses was a Montgomery P.O. Box owned by Webster; one was the Montgomery apartment address of McDonald on Bonaparte Boulevard; and the third was a Mobile P.O. Box from which Grimes collected refund checks and power of attorney forms.

Webster collected IRS refund checks mailed to his P.O. Box and provided the checks and power of attorney forms to other co-conspirators, including Miller and Ware in Huntsville and Pinckney in Montgomery. Pinckney notarized power of attorney forms and, along with other co-conspirators, used the forms to cash or deposit fraudulent refund checks. Proceeds from the scheme were deposited into Pinckney’s Regions Bank account. Pinckney communicated with German on a contraband telephone he had in prison.

Miller cashed or deposited the fraudulent refund checks she received from Webster into Regions Bank or Redstone Federal Credit Union.

McDonald collected fraudulent refund checks mailed to her Montgomery apartment and provided them to Webster.

Grimes received fraudulent refund checks and power of attorney forms at the Mobile P.O. Box, had the power of attorney forms notarized, and then used them to cash or deposit the checks.

Counts two through nine of the indictment charge German and Webster with making false claims to the IRS.

Counts 10 through 15 charge German with mail fraud for causing or aiding others in causing the U.S. Postal Service to deliver fraudulent refund checks to the Montgomery and Mobile addresses.

Count 16 charges German, Webster, McDonald, and Grimes with conspiracy to commit mail fraud against the U.S. Department of Treasury.

Counts 17 through 20 are aggravated identity fraud charges against German and Webster for using other people’s identifying information to create and file false tax returns.

The conspiracy to defraud the government and false claims charges both carry a maximum penalty of 10 years in prison and a $250,000 fine. Mail fraud and conspiracy to commit mail fraud both carry a maximum penalty of 20 years in prison and a $250,000 fine. Aggravated identity fraud carries a two-year minimum mandatory prison sentence that must be served consecutively to any other sentence imposed in the crime.

The IRS and FBI investigated the case. Assistant U.S. Attorney Russell E. Penfield is prosecuting the case.

The public is reminded that an indictment is only a charge. A defendant is presumed innocent, and it will be the government’s responsibility to prove guilt beyond a shadow of a doubt at trial.”

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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.


“US judge sides with FBI, orders Google to hand over user data”

June 3, 2013

The Washington Post released the following:

By Associated Press, Published: May 31 | Updated: Saturday, June 1

“SAN FRANCISCO — Google must comply with the FBI’s demand for data on certain customers as part of a national security investigation, according to a ruling by a federal judge who earlier this year determined such government requests are unconstitutional.

The decision involves “National Security Letters,” thousands of which are sent yearly by the FBI to banks, telecommunication companies and other businesses. The letters, an outgrowth of the USA Patriot Act passed after the Sept. 11 attacks, are supposed to be used exclusively for national security purposes and are sent without judicial review. Recipients are barred from disclosing anything about them.

In March, U.S. District Court Judge Susan Illston sided with the Electronic Frontier Foundation in a lawsuit brought on behalf of an unidentified telecommunications company, ruling the letters violate free speech rights. She said the government failed to show the letters and the blanket non-disclosure policy “serve the compelling need of national security” and the gag order creates “too large a danger that speech is being unnecessarily restricted.”

She put that ruling on hold while the government appeals to the 9th U.S. Circuit Court of Appeals.

In the latest case, Illston sided with the FBI after Google contested the constitutionality and necessity of the letters but again put her ruling on hold until the 9th Circuit rules. After receiving sworn statements from two top-ranking FBI officials, Illston said she was satisfied that 17 of the 19 letters were issued properly. She wanted more information on two other letters.

It was unclear from the judge’s ruling what type of information the government sought to obtain with the letters. It was also unclear who the government was targeting.

Kurt Opsah, an attorney with the Electronic Frontier Foundation, said he was “disappointed that the same judge who declared these letters unconstitutional is now requiring compliance with them.”

Illston’s May 20 order omits any mention of Google or that the proceedings were closed to the public. But the judge said “the petitioner” was involved in a similar case filed on April 22 in New York federal court.

Public records obtained Friday by The Associated Press show that on that same day, the federal government filed a “petition to enforce National Security Letter” against Google after the company declined to cooperate with government demands.

Neither Google nor the FBI would comment.

The letters issued by the FBI can be used to collect unlimited kinds of private information, such as financial and phone records. The FBI sent 16,511 letters requests for information regarding 7,201 people in 2011, the latest data available.

Critics contend the government is overly zealous in using the letters, unnecessarily infringing on privacy rights of American citizens. In 2007, the Justice Department’s inspector general found widespread violations by the FBI, including sending demands without proper authorization. The FBI has since tightened oversight of the system.”

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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.


“Walmart Pleads Guilty to Federal Environmental Crimes, Admits Civil Violations, and Will Pay More Than $81 Million”

May 29, 2013

The Federal Bureau of Investigation (FBI) on May 28, 2013 released the following press release:

“Retailer Admits Violating Criminal and Civil Laws Designed to Protect Water Quality and to Ensure Proper Handling of Hazardous Wastes and Pesticides

WASHINGTON—Walmart Stores Inc. pleaded guilty today in cases filed by federal prosecutors in Los Angeles and San Francisco to six counts of violating the Clean Water Act by illegally handling and disposing of hazardous materials at its retail stores across the United States. The Bentonville, Arkansas-based company also pleaded guilty today in Kansas City, Missouri, to violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) by failing to properly handle pesticides that had been returned by customers at its stores across the country.

As a result of the three criminal cases brought by the Justice Department, as well as a related civil case filed by the U.S. Environmental Protection Agency (EPA), Walmart will pay approximately $81.6 million for its unlawful conduct. Coupled with previous actions brought by the states of California and Missouri for the same conduct, Walmart will pay a combined total of more than $110 million to resolve cases alleging violations of federal and state environmental laws.

According to documents filed in U.S. District Court in San Francisco, from a date unknown until January 2006, Walmart did not have a program in place and failed to train its employees on proper hazardous waste management and disposal practices at the store level. As a result, hazardous wastes were either discarded improperly at the store level—including being put into municipal trash bins or, if a liquid, poured into the local sewer system—or they were improperly transported without proper safety documentation to one of six product return centers located throughout the United States.

“By improperly handling hazardous waste, pesticides, and other materials in violation of federal laws, Walmart put the public and the environment at risk and gained an unfair economic advantage over other companies,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today, Walmart acknowledged responsibility for violations of federal laws and will pay significant fines and penalties, which will, in part, fund important environmental projects in the communities impacted by the violations and help prevent future harm to the environment.”

“Federal laws that address the proper handling, storage, and disposal of hazardous wastes exist to safeguard our environment and protect the public from harm,” said André Birotte, Jr., the U.S. Attorney for the Central District of California. “Retailers like Walmart that generate hazardous waste have a duty to legally and safely dispose of that hazardous waste, and dumping it down the sink was neither legal nor safe. The case against Walmart is designed to ensure compliance with our nation’s environmental laws now and in the future.”

“As one of the largest retailers in the United States, Walmart is responsible not only for the stock on its shelves but also for the significant amount of hazardous materials that result from damaged products returned by customers,” said Melinda Haag, U.S. Attorney for the Northern District of California. “The crimes in these cases stem from Walmart’s failure to comply with the regulations designed to ensure the proper handling, storage, and disposal of those hazardous materials and waste. With its guilty plea today, Walmart is in a position to be an industry leader by ensuring that not only Walmart but all retail stores properly handle their waste.”

“This tough financial penalty holds Walmart accountable for its reckless and illegal business practices that threatened both the public and the environment,” said Tammy Dickinson, U.S. Attorney for the Western District of Missouri. “Truckloads of hazardous products, including more than two million pounds of pesticides, were improperly handled under Walmart’s contract. Today’s criminal fine should send a message to companies of all sizes that they will be held accountable to follow federal environmental laws. Additionally, Walmart’s community service payment will fund important environmental projects in Missouri to help prevent such abuses in the future.”

“The FBI holds all companies, regardless of size, to the same standards,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “We will continue to work closely with our law enforcement partners to ensure there is a level playing field for all businesses and that everyone follows the rules.”

“Today, Walmart is taking responsibility for violating laws that protect people from hazardous wastes and chemicals,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Walmart is committing to safe handling of hazardous wastes at all of its facilities nationwide, an action that will benefit communities across the country.”

Walmart owns more than 4,000 stores nationwide that sell thousands of products which are flammable, corrosive, reactive, toxic, or otherwise hazardous under federal law. The products that contain hazardous materials include pesticides, solvents, detergents, paints, aerosols, and cleaners. Once discarded, these products are considered hazardous waste under federal law.

Walmart pleaded guilty this morning in San Francisco to six misdemeanor counts of negligently violating the Clean Water Act. The six criminal charges were filed by the U.S. Attorney’s Office in Los Angeles and San Francisco (each office filed three charges), and the two cases were consolidated in the Northern District of California, where the guilty pleas were formally entered before U.S. Magistrate Judge Joseph C. Spero. As part of a plea agreement filed in California, Walmart was sentenced to pay a $40 million criminal fine and an additional $20 million that will fund various community service projects, including opening a $6 million Retail Compliance Assistance Center that will help retail stores across the nation learn how to properly handle hazardous waste.

In the third criminal case resolved today, Walmart pleaded guilty in the Western District of Missouri to violating FIFRA. According to a plea agreement filed in Kansas City, beginning in 2006, Walmart began sending certain damaged household products, including regulated solid and liquid pesticides, from its six return centers to Greenleaf LLC, a recycling facility located in Neosho, Missouri, where the products were processed for reuse and resale. Because Walmart employees failed to provide adequate oversight of the pesticides sent to Greenleaf, regulated pesticides were mixed together and offered for sale to customers without the required registration, ingredients, or use information, which constitutes a violation of FIFRA. Between July 2006 and February 2008, Walmart trucked more than two million pounds of regulated pesticides and additional household products from its various return centers to Greenleaf. In November 2008, Greenleaf was also convicted of a FIFRA violation and paid a criminal penalty of $200,000 in 2009.

Pursuant to the plea agreement filed in Missouri and accepted today by U.S. District Judge John T. Maughmer, Walmart agreed to pay a criminal fine of $11 million and to pay another $3 million to the Missouri Department of Natural Resources, which will go to that agency’s Hazardous Waste Program and will be used to fund further inspections and education on pesticide regulations for regulators, the regulated community, and the public. In addition, Walmart has already spent more than $3.4 million to properly remove and dispose of all hazardous material from Greenleaf’s facility.

In conjunction with today’s guilty pleas in the three criminal cases, Walmart has agreed to pay a $7.628 million civil penalty that will resolve civil violations of FIFRA and Resource Conservation and Recovery Act (RCRA). In addition to the civil penalties, Walmart is required to implement a comprehensive, nationwide environmental compliance agreement to manage hazardous waste generated at its stores. The agreement includes requirements to ensure adequate environmental personnel and training at all levels of the company, proper identification and management of hazardous wastes, and the development and implementation of Environmental Management Systems at its stores and return centers. Compliance with this agreement is a condition of probation imposed in the criminal cases.

The criminal cases announced today are a result of investigations conducted by the FBI and the EPA, which received substantial assistance from the California Department of Substance and Toxics Control, and the Missouri Department of Natural Resources.

In Missouri, the case was prosecuted by Deputy U.S. Attorney Gene Porter and ENRD Senior Trial Attorney Jennifer Whitfield of the Environmental Crimes Section of the Environment and Natural Resources Division. In California, the cases were prosecuted in Los Angeles by Assistant U.S. Attorney Joseph O. Johns and in San Francisco by Assistant U.S. Attorney Stacey Geis.”

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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.


“Oregon Man Indicted for Alleged Role in $50 Million Securities Fraud Scheme”

May 16, 2013

The U.S. Department of Justice Office of Public Affairs on May 16, 2013 released the following:

“An Oregon man has been charged with allegedly orchestrating a $50 million securities fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California.

Bradley Holcom, 55, of Canby, Ore., was arrested Tuesday following his indictment in U.S. District Court for the Southern District of California. The indictment, which was filed on May 9, 2013, and unsealed late yesterday, charges Holcom with eight counts of mail fraud, four counts of wire fraud and one count of securities fraud.

According to the indictment, Holcom made false statements to investors in connection with the sale of approximately $50 million worth of promissory notes that he sold to more than 150 investors located throughout the United States from at least 2004 through 2010. The indictment alleges that Holcom solicited investors to provide funds for the development of raw land for commercial and residential purposes through an investment program he operated called the Trust Deed Investment Program. Holcom allegedly falsely told investors who purchased notes through the Trust Deed Investment Program that they would receive a lien on a specific piece of property he was developing and that the lien would be in first position, which would allow investors to directly foreclose on the underlying development property if Holcom was unable to repay the principal due under the notes.

Despite his statements to investors, Holcom allegedly never provided investors with a lien on the property he was purportedly developing and instead conveyed to investors a lesser interest that did not allow investors to directly foreclose on the property to protect their investment. In addition, the indictment alleges that while Holcom promised investors that their purported lien would be in first position, Holcom solicited investments for properties that he knew were already encumbered by first position liens.

According to the indictment, Holcom also allegedly sold properties that were supposedly serving as the security for investors without informing investors that the property they had financed for development was gone.

The indictment alleges that by approximately 2008, Holcom’s financial condition had seriously deteriorated, but he continued to solicit investors for new funds by making misrepresentations about his true financial condition and the manner in which he was using investor money.

The maximum penalty for each wire fraud and mail fraud count is 20 years in prison. The count of securities fraud carries a maximum penalty of 25 years in prison.

The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

This case was brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.StopFraud.gov .

This case was investigated by the FBI’s Phoenix Division – Yuma Resident Agency. The case is being prosecuted by Trial Attorney Henry P. Van Dyck and Deputy Chief Daniel Braun of the Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Stephen Clark of the U.S. Attorney’s Office for the Southern District of California. The department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.”

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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.


Leon Benzer Indicted by a Federal Grand Jury of Tax Evasion By Alleging He Was Evading Federal Income and Employment Taxes

May 15, 2013

The Federal Bureau of Investigation (FBI) on May 14, 2013 released the following:

“Former Construction Company Owner Indicted in Nevada for Income Tax Evasion

WASHINGTON—A federal grand jury in Nevada today returned an indictment against a former construction company owner for evading federal income and employment taxes, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber, FBI Acting Special Agent in Charge William C. Woerner of the Las Vegas Field Office, and Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department.

Leon Benzer, 46, of Las Vegas, was charged in U.S. District Court in the District of Nevada with two counts of tax evasion.

In January 2013, Benzer was indicted in a related case on charges of wire fraud and conspiracy to commit wire and mail fraud. According to court documents, from approximately August 2003 through February 2009, Benzer orchestrated a scheme to direct construction defect litigation and repairs at condominium complexes to a conspiring law firm and Benzer’s construction company, Silver Lining Construction (SLC). As a result of this scheme, the indictment alleges that SLC was awarded a contract worth over $7 million for work at the Vistana Homeowner’s Association (Vistana HOA) in Las Vegas. The case is pending.

According to the indictment returned today, in August 2006, Benzer filed five years’ worth of personal tax forms and business tax returns without any payments accompanying those returns. As of April 2007, Benzer had allegedly failed to pay his personal tax liability of approximately $459,000 and SLC’s employment tax liability of approximately $687,000 and unemployment tax liability of approximately $18,000. In May 2007, the IRS issued a notice of intent to file a levy; Benzer subsequently appealed this process and indicated that he wanted to enter into an “offer-in-compromise” with the IRS to pay a portion of what was owed in full satisfaction of all his tax liabilities. According to the indictment, during this offer-in-compromise process, the IRS requested detailed financial information from Benzer.

Between March 2005 and January 2008, the indictment alleges that Benzer and SLC received over $7 million from the Vistana HOA contract, including a wire transfer of over $1 million on September 21, 2007, to a personal U.S. Bank account that Benzer opened in August 2007. The indictment alleges that when Benzer filed certain IRS forms related to the offer-in-compromise process on September 25, 2007, he failed to disclose this personal U.S. Bank account or the assets contained in it.

The maximum prison sentence for each count of tax evasion is five years in prison and a maximum fine of $100,000.

The charges and allegations against the indicted defendant are merely accusations, and the defendant is considered innocent unless and until proven guilty.

The case is being prosecuted by Senior Deputy Chief Kathleen McGovern, Deputy Chief Charles La Bella, and Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section. The case is being investigated by IRS-CI, the FBI, and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section.

Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions; and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov.”

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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

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

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


U.S. District Court Judge Richard G. Stearns will rule “in two to three days” on James “Whitey” Bulger’s trial continuance request

November 1, 2012

Boston Herald on November 1, 2012 released the following:

“Judge makes no decision on Bulger trial delay

By Laurel J. Sweet

The federal judge who’ll preside over the murder trial of accused gangland serial killer James “Whitey” Bulger will announce “in two to three days” whether he’ll grant the defense team’s latest bid to postpone the March spectacle to November 2013.

U.S. District Court Judge Richard G. Stearns took the request under advisement this afternoon following a 15-minute hearing that marked his first appearance in the case since Bulger’s lead public defender J.W. Carney Jr. twice demanded he recuse himself because of his prior service as a federal prosecutor. Stearns has twice refused to step aside.

Carney has also threatened to put Stearns on the witness stand next to the very bench he’ll issue orders from. Carney told Stearns today he has no plans at this time to try and get the case dismissed based on Bulger’s claim that the late U.S. Attorney Jeremiah O’Sullivan gifted him a license to kill and immunity from prosecution for more than a quarter century.

Despite an overflow courtroom no doubt hoping for a shouting match between the two men, they kept their conversation civil.

“I’m very impressed with the attendance,” Stearns quipped.

Carney renewed his contention that he and co-counsel Hank Brennan are overwhelmed by more than 364,000 documents they need to read, take notes from and review with Bulger, 83, in addition to Department of Justice reports they still need to comb through, books about Bulger’s reign of terror they need to read and witnesses they need to interview — all to adequately defend a mobster Carney said “has been demonized for decades.”

The former South Boston crimelord, who was captured in Santa Monica, Calif., in June 2011 after 16 years on the lam as the FBI’s Most Wanted domestic terrorist, is charged with the murders of 19 men and women — two of them former girlfriends of his partner in crime Stephen “The Rifleman” Flemmi.

“We have been working days, nights, weekends and I say sincerely we cannot possibly digest this discovery in time to be prepared for trial,” Carney said. “It is unprecedented in my experience trying hundreds of cases.

“A fair trial before a fair judge does not begin with empanelment of a jury,” he said, “it begins with the defense counsel being allowed to be prepared to try the case.”

Assistant U.S. Attorney Brian Kelly patiently assured Stearns that Carney “can handle it.”

“The government is always in favor of a fair trial,” he said. “What we’re not in favor of is delaying trials unnecessarily. This is a cross-examination case for him. This is basically murder and mayhem by our witnesses and his client. He (Carney) wants to litigate things, not resolve them.””

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Douglas McNabb – McNabb Associates, P.C.’s
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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.