Jeffrey Wallace Edwards, and his Corporation, Frontier Holdings, Inc., Found Guilty by a Federal Jury in Federal District Court on Charges of Mail Fraud, Wire Fraud, and Money Laundering

August 31, 2011

The Federal Bureau of Investigation (FBI) on August 30, 2011 released the following:

“Bremen Man Convicted of Running an Investment Scam

Edwards Netted Over $7 Million by Promising a Special “High Yield” Return

ROME, GA—A jury in federal district court late this afternoon returned a guilty verdict against JEFFREY WALLACE EDWARDS, 46, of Bremen, Georgia, and his corporation, “Frontier Holdings, Inc.,” on charges of mail and wire fraud and money laundering.

United States Attorney Sally Quillian Yates said, “Financial and investment fraud claims victims from all parts of our community. In this case, the jury found that a man from a small town in west Georgia successfully persuaded investors from around the country that with his supposed contacts with a former Vice President and a Federal Reserve Chairman, he could make their money multiply into millions. He persuaded retired teachers and dental hygienists to give them the equity in their homes and retirement plans. Then he spent the victims’ hard-earned money on lavish vacation cruises, real estate, fur coats, tiki carvings, and luxury cars. With the jury’s verdict, EDWARDS is now facing a substantial term in federal prison.”

According to United States Attorney Yates, the charges and the evidence presented at trial: The jury found EDWARDS and Frontier Holdings guilty on two counts of mail fraud, 17 counts of wire fraud, and eleven counts of money laundering. EDWARDS and his corporation were originally indicted on May 6, 2009; a superseding indictment was returned on February 15, 2011. The evidence at trial showed that between February 2006 and February 2007, EDWARDS promised investors they would receive returns of between 41 and 1066 percent on the money they placed in the “high yield” investment programs that he had with the Federal Reserve Bank.

The evidence showed that EDWARDS also claimed to own a bank, to have access to lucrative but confidential investment opportunities, or to be a “special agent” of the Federal Reserve. Thirty-one victims mailed or electronically transferred over $7 million to EDWARDS. He spent the money quickly, and when the victims started demanding payment, he blamed “the banking industry” and “the powers that be” for delaying payment from his phantom investments.

The mail and wire fraud charges each carry a maximum sentence of 30 years in prison and a fine of up to $250,000 per count, and the money laundering charges each carry a maximum sentence of 10 years in prison and a fine of $250,000 per count. Sentencing will be December 1, 2011, at 10:00 a.m. before Senior United States District Judge Robert L. Vining. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

This case was investigated by Special Agents of the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, United States Marshals Service, and the Carrollton Police Department.

Assistant United States Attorneys William G. Traynor, Alana R. Black, and Michael J. Brown are prosecuting the case.”

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 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.

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Theodore J. Nelson, Jr. Pled Guilty in Federal Court to Concealing a Person From Arrest

August 23, 2011

The Federal Bureau of Investigation (FBI) on August 22, 2011 released the following:

“Letcher Man Pleads Guilty to Concealing Person from Arrest

U.S. Attorney Brendan V. Johnson announced that Theodore J. Nelson, Jr., a/k/a Ted Nelson, age 64, of Letcher, South Dakota, appeared before U.S. District Judge Lawrence L. Piersol on August 22, 2011, and pled guilty to one count of an indictment that charged him with concealing person from arrest. The maximum penalty upon conviction is five years in prison, a $250,000 fine, or both.

As part of his plea, Nelson admitted that he harbored and concealed Thomas R. Kelley. Kelley was convicted of 22 separate federal crimes, then failed to appear at his August 23, 2010, sentencing hearing. Kelley was ultimately found in Wood Lake, Minnesota, on December 22, 2010. Kelley was sentenced to 70 months in prison on July 26, 2011.

The investigation was conducted by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, United States Marshals Service, and the Criminal Investigation Division of the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Kevin Koliner.

A presentence investigation was ordered, and a sentencing date was set for November 7, 2011. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.”

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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Andrew Zayac Found Guilty of Federal Murder by a Federal Jury in Bridgeport

July 25, 2011

The U.S. Attorney’s Office District of Connecticut on July 22, 2011 released the following:

“David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in Bridgeport has found ANDREW ZAYAC, 31, of Scarsdale, New York, guilty of federal murder and other offenses in connection with the February 8, 2009, kidnap and murder of Edward Rivera, 37, of the Bronx, New York. The trial began on July 14 and the jury returned the verdicts this afternoon.

“I want to commend the excellent work by members of the Drug Enforcement Administration, the Danbury Police Department and the United States Marshals Service who investigated this matter and have helped to provide justice for the victim’s family and loved ones,” stated U.S. Attorney Fein.

According to the evidence presented during the trial, in early 2009, ZAYAC negotiated the purchase of 68 pounds of marijuana from Edward Rivera. ZAYAC and Rivera arranged to meet on February 8, 2009, to complete the transaction. On that date, ZAYAC kidnapped Rivera from the Bronx for the purpose of robbing him of the marijuana. During the course of the kidnapping and robbery, Rivera was shot twice and died as a result of the gunshot wounds. ZAYAC and his associate, Heriberto Gonzalez, 31, also of the Bronx, then dumped Rivera’s body in Danbury, Connecticut, drove back to the Bronx and burned ZAYAC’s car.

On February 28, 2009, law enforcement officers executed a search warrant at ZAYAC’s residence and seized approximately 61 pounds of marijuana. ZAYAC was arrested at that time.

Today the jury found ZAYAC guilty of one count of kidnapping resulting in death, one count of murder during the commission of a robbery, one count of interference with commerce through the use of violence, one count of possession with intent to distribute marijuana, one count of conspiracy to use or possess a firearm in furtherance of crimes of violence and a narcotics trafficking offense, three counts of destruction/concealment of evidence, and one count of conspiracy to destroy/conceal evidence. The jury found ZAYAC not guilty of one count of premeditated murder.

United States District Judge Janet C. Hall has scheduled sentencing for October 7, 2011, at which time ZAYAC faces a mandatory term of imprisonment of life on the murder charges.

On June 21, 2011, after a separate trial, a jury found Gonzalez guilty of one count of possession with intent to distribute marijuana, three counts of destruction/concealment of evidence, and one count of conspiracy to destroy/conceal evidence. He awaits sentencing.

ZAYAC has been detained since his arrest. Gonzalez was arrested on June 17, 2009, and is also detained.

This matter has been investigated by the Drug Enforcement Administration, the Danbury Police Department and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorneys Michael J. Gustafson and Brian P. Leaming.”

To find additional federal criminal news, please read The 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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Two Indicted for Defrauding International Union of Operating Engineers and Joint Apprenticeship Training Committee

July 13, 2011

The U.S. Attorney’s Office Southern District of Texas on July 11, 2011 released the following:

“HOUSTON – A Houston grand jury has indicted Ronald and Anita Witt for conspiracy and embezzlement of funds from Local 450 of the International Union of Operating Engineers and Local 450’s apprenticeship school, United States Attorney José Angel Moreno announced today along with Roger Hilburn, regional director, Employee Benefits Security Administration, and Daniel B. Cherry, district director, Office of Labor Management Standards.

Local 450 represents more than 1000 members employed in the crane rigging and hoisting industry in Southern and Eastern Texas. Ronald Witt, 64, was Local 450’s business manager. Ronald Witt’s wife, Anita, 56, was Local 450’s treasurer and the coordinator of Local 450’s training facility – the Joint Apprenticeship Training Council (JATC).

The indictment alleges that between May 2007 and April 2009, Ronald and Anita Witt used Local 450 and JATC funds for unauthorized charges, including luxury trips for themselves and their friends, recreational travel trailers, purchases at hardware stores, personal meal expenses, rebuilding their Galveston home and depositing unearned union checks into their bank accounts. Each defendant is also charged with one count of conspiracy, nine counts of embezzlement from a union and five counts of embezzlement from an employee welfare benefit plan.

“These investigations are an example of our efforts to safeguard union democracy and ensure union financial integrity so that workers can have a more effective voice in the governance of their unions and a collective voice in the workplace,” said Cherry. “We hope this will encourage union members and others with knowledge of illegal practices to come forward and expose corrupt leadership to help us meet our goals.”

The 15-count indictment was returned under seal by a Houston grand jury on June 29, 2011, and unsealed July 8, 2011, following the arrest of Ronald and Anita Witt by deputies with the United States Marshals Service. They made an initial appearance on Friday before U.S. Magistrate Judge John Froeschner and were ordered released upon posting $50,000 bond each. They are next scheduled to appear in federal court in Galveston on Wednesday, July 13, 2011, before Judge Froeschner for arraignment.

Each count in the indictment carries a possible sentence of up to five years imprisonment, up to a $250,000 fine, three years supervised release and full restitution.

The year-long investigation leading to these charges was prompted by a referral from the International Union of Operating Engineers, which took over Local 450 in April 2009. The investigation was conducted by Office of Labor Management Standards and the Employee Benefits Security Administration. Assistant U.S. Attorney F. Andino Reynal is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.”

To find additional federal criminal news, please read The 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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Ernest Edward Wampler Convicted by a Federal Jury of Two Counts of Traveling Interstate and Failing to Register as a Sex Offender

July 8, 2011

The U.S. Attorney’s Office Western District of Texas on July 7, 2011 released the following:

“FEDERAL JURY IN MIDLAND CONVICTS MAN FOR FAILING TO REGISTER AS A SEX OFFENDER

United States Attorney John E. Murphy announced that this morning in Midland, a federal jury convicted 50-year-old Ernest Edward Wampler of two counts of traveling interstate and failing to register as sex offender.

Testimony and evidence at trial established that Wampler was convicted of sexual assault of a child in Midland County in 2001. When Wampler was released from prison in 2007, state officials explained to him his responsibilities to register as a sex offender and Wampler signed paperwork acknowledging that he understood those responsibilities. Furthermore, exhibits admitted at trial established that Wampler did register as a sex offender in Midland on two occasions in 2007, first upon his release from prison, and then when he changed his address.

Thereafter, however, Wampler moved out of state and claimed North Carolina residence to obtain a state identification card in Jacksonville, North Carolina in March 2009, but failed to register as a sex offender in that state. In March 2011, Wampler returned to Midland and worked for approximately a month without registering as a sex offender. Federal law requires that sex offender registration be accomplished within three days following any change in an offender’s address or employment.

United States Marshals arrested Wampler in Magnolia, Texas, in April 2011. When he was arrested, Wampler was in possession of identification cards, under an assumed name, from two carnival amusement companies that had employed him.

Wampler faces up to ten years in federal prison and a lifetime of supervised release per count. He is scheduled to be sentenced on September 29, 2011.

Assistant United States Attorney John S. Klassen prosecuted the matter on behalf of the Government. The case was investigated by agents with the United States Marshals Service, the Midland Police Department and the North Carolina Department of Justice.”

To find additional federal criminal news, please read The 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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Ephram Pascall Pleads Guilty in Manhattan Federal Court to Embezzlement

July 7, 2011

The U.S. Attorney’s Office Southern District of New York on July 6, 2011 released the following:

“FORMER HOTEL PAINTERS’ UNION PRESIDENT PLEADS GUILTY IN MANHATTAN FEDERAL COURT TO EMBEZZLEMENT

PREET BHARARA, the United States Attorney for the Southern District of New York, and RALPH E. GERCHAK, the New York District Director of the U.S. Department of Labor’s Office of Labor-Management Standards (“DOL-OLMS”), announced the guilty plea of EPHRAM PASCALL, the former President/Business Manager of the International Union of Painters and Allied Trades, Local 1422 (the “Union”). PASCALL pled guilty today before U.S. District Judge NAOMI REICE BUCHWALD to one count of embezzling funds from the Union.

Manhattan U.S. Attorney PREET BHARARA said: “Ephram Pascall, a corrupt union boss, treated the union’s coffers like his personal piggy bank. Today’s guilty plea underscores this Office’s ongoing commitment to working with DOL-OLMS to root out corruption in our nation’s unions.”

DOL-OLMS New York District Director RALPH E. GERCHAK said: “This arrest is part of the ongoing effort of the United States Department of Labor, Office of Labor-Management Standards to accomplish its mission of protecting union assets by removing unscrupulous, corrupt union officials and thereby strengthening the American labor movement.”

According to the Information, the Complaint, and statements made today in Manhattan federal court:

While PASCALL served as President/Business Manager of the Union, from February 2007 through April 2009, he wrote approximately 92 checks, totaling approximately $34,199, to himself from the Union’s checking account. Almost all of the checks were cashed at a check cashing store.

PASCALL listed in the Union’s records that the purpose of 66 of the checks was payment to various Union members who purportedly attended training with him, and thus had foregone their normal wages for that day. In truth and in fact, however, union members neither attended nor received any reimbursement for such training. The other 26 checks were for alleged union expenses, such as dinners, union member funeral expenses, office supplies, and meeting expenses. None of those expenses actually were incurred by the Union.

PASCALL, 48, of Brooklyn, New York, faces a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gain or loss from the offense. He will be sentenced by Judge BUCHWALD on October 12, 2011, at 4:45 p.m.

Mr. BHARARA praised the investigative work of the DOL­OLMS and thanked the United States Marshal’s Service for its assistance with PASCALL’s arrest.

This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney CARRIE H. COHEN is in charge of the prosecution.”

To find additional federal criminal news, please read The 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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Lisa Marie Rasho Pleads Guilty To Violating Sex Offender Registration Act

July 6, 2011

The U.S. Attorney’s Office District of Idaho on July 6, 2011 released the following:

“Lisa Marie Rasho, 32, formerly of Boise, Idaho, pleaded guilty in federal court yesterday to violating the Sex Offender Notification and Registration Act (SORNA), U.S. Attorney Wendy J. Olson announced.

According to the plea agreement, Rasho was required to register by reason of her 2009 conviction in Ada County for the crime of sexual abuse of a minor child under the age of sixteen years. Rasho admitted that she left Idaho and traveled to Michigan in November 2010 and knowingly failed to register and update a registration as required by SORNA. Rasho was arrested in Michigan.

Sentencing is set for September 26, 2011, before United States District Judge Edward J. Lodge.

The case was investigated by the United States Marshals Service.”

To find additional federal criminal news, please read The 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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Brian Stacy Arrested for Threatening Federal Judge

June 17, 2011

U.S. Marshals Service on June 16, 2011 released the following press release:

“Albuquerque, NM – Brian Stacy, a resident of Los Alamos, NM was arrested Wednesday June 15, on charges that he allegedly threatened U.S. District Judge John E. Conway. Stacy allegedly sent a series of threatening e-mails to Judge Conway and was arrested in a joint operation involving the Federal Bureau of Investigation, the United States Marshals Service and the United States Attorney’s Office.

Stacy has prior arrests for possession of an unregistered firearm and numerous probation violations one of which was for threatening a Federal Probation Officer. Marshals Service investigators and Federal Bureau of Investigation Special Agents investigated the alleged threats and Stacy was arrested and brought before Federal Magistrate Judge Torgerson in Albuquerque on Thursday for his Arraignment.

The primary role and mission of the United States Marshals Service is to provide for the security of, and to obey, execute, and enforce all orders of, the United States courts. (28 U.S.C. , 566(a)). In particular, the USMS is authorized to provide personal protection to federal judges, court officer, witnesses, and other threatened persons in the interests of justice where criminal intimidation impedes on the functioning of the judicial process or any other official proceeding. (28 U.S.C. , 566(e)(1)(A)). US Marshal Conrad Candelaria said, “First, I want to thank our federal partners FBI and US Attorney’s Office. The United States Marshals Service considers any threat to our judiciary no matter how minor or large as a serious matter. We will investigate and request that they be prosecuted under the full extent of the law.””

Attached is Brian Stacy – Criminal Complaint with Affidavit.

To find additional federal criminal news, please read The 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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“Operation Big Winner” Leads to a Federal Indictment of 20 Individuals with Various Federal Drug Related Charges

June 15, 2011

United States Attorney’s Office Eastern District of Arkansas on June 14, 2011 released the following press release:

“Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA) announced today a sweep of arrests in Central Arkansas stemming from eighteen count indictment involving federal drug offenses. The federal indictment is the result of an investigation, “Operation Big Winner,” which charged 20 defendants with various federal drug related charges. As of today, seventeen defendants are in custody.

The DEA Little Rock District Office High Intensity Drug Trafficking Area (HIDTA) Group #62, which is composed of Special Agents from DEA and Task Force Officers from the Pulaski County Sheriffs Department, North Little Rock Police Departments, Benton Police Department, and Jefferson County Sheriffs Department opened an OCDETF Operation sponsored by DEA. As part of the OCDETF investigation, officers were deputized under the OCDETF Operation from the following agencies: Arkansas State Police, Pulaski County Sheriffs Department, Sherwood Police Department, and the Central Arkansas Drug Task Force.

This investigation targeted a large scale drug trafficking organization distributing multi-pound quantities of methamphetamine ice in the central Arkansas area. The methamphetamine ice was smuggled from Mexico to Central Arkansas for distribution.

Today’s “Operation Big Winner” was conducted by the DEA, United States Marshals Service, Homeland Security Investigations, Arkansas State Police, Pulaski County Sheriffs Department, Sherwood Police Department, North Little Rock Police Department, Jefferson County Sheriffs Department, Central Arkansas Drug Task Force, Benton Police Department, White County Sheriffs Department, Lonoke County Sheriffs Department, and the Arkansas National Guard.

On Friday, June 10, 2011, three federal search warrants were executed by the above agencies in White County and Lonoke County. A total of seven defendants were arrested and taken into custody. These defendants appeared before United States Magistrate Judge Jerome K. Kearney for plea and arraignment Friday.

Today additional federal arrest warrants were executed by the above agencies. A total of ten defendants were arrested. Those taken into custody will appear before United States Magistrate Judge Jerome K. Kearney for their initial appearance this afternoon.

Five defendants remain at large at this time and law enforcement is actively pursuing these defendants.

This case is the result of the investigative work of federal, state and local law enforcement members in the HIDTA program,” stated Thyer. “HIDTA provides federal resources to help reduce drug trafficking and its harmful consequences. With such a broad law enforcement reach, we are able to take drugs and those who seek to peddle them off our streets and out of our communities.”

ASAC Bryant stated, “Through the combine team effort of local, state, and federal law enforcement, this drug trafficking organization was dismantled. Methamphetamine continues to be the number one drug threat to the citizens in Arkansas. This organization was distributing multi-pounds of methamphetamine ice per week in Central Arkansas. This team effort of law enforcement led to the seizure of seven pounds of methamphetamine ice, which did not reach the citizens in our communities. Law enforcement agencies also seized the following items as a result of this investigation: thirteen weapons, seven vehicles, six motorcycles, two boats and one tractor.”

The investigation is being prosecuted by Assistant United States Attorney Anne Gardner of the Eastern District of Arkansas United States Attorneys Office.

An indictment contains only allegations. The defendants are presumed innocent unless and proven guilty.”

To find additional federal criminal news, please read The 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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