Philadelphia Man Indicted on Alleged Fraud and Identity Theft Charges

May 4, 2012

The Federal Bureau of Investigation (FBI) on May 3, 2012 released the following:

“Darrel Jason Davis, 53, of Philadelphia, Pennsylvania, was charged today by indictment with conspiracy, bank fraud, access device fraud, and aggravated identity theft, announced United States Attorney Zane David Memeger.

If convicted, the defendant faces a maximum possible sentence of 141 years’ imprisonment and a $5,250,000 fine.

The case was investigated by the Federal Bureau of investigation and the United States Secret Service, with the assistance of the Willistown Township Police Department, the Warwick Township Police Department, the Amity Township Police Department, the Lower Makefield Township Police Department, the Newtown Police Department, Springfield Township Police Department, Montgomery Township Police Department, Middletown Township Police Department, and the Pennsylvania State Police. It is being prosecuted by Assistant United States Attorney K.T. Newton.

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

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

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

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

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

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


Ten Individuals Charged by a Federal Grand Jury for Alleged Conspiracy to Commit Health Care Fraud

January 19, 2012

The Feral Bureau of Investigation (FBI) on January 19, 2012 released the following:

“Ten Individuals Arrested for Health Care Fraud

SAN JUAN, PR—On January 12, 2012, a federal grand jury returned two indictments against 10 individuals for conspiracy to commit health care fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the collaboration of the United States Secret Service (USSS) and the Federal Bureau of Investigation (FBI).

Gilberto Gómez, president of Monte Mar Health Corporation (Monte Mar), PROMEDS Medical Inc. (PROMEDS) and Quality Care Medical Supply (Quality); Yolanda García-Rodríguez, aka “Yolanda Gómez,” wife of Gómez and president of PROMEDS, secretary/treasurer of Monte Mar and an authorized official of Quality; Lissette Acevedo, independent sales coordinator; Doctor Francisco Garrastegui; Luisa Nieves, independent sales coordinator; Glendaly Báez, billing director for Monte Mar, PROMEDS and Quality; Mario Rivera, independent sales coordinator; and Marcos Sarraga, independent sales coordinator, are charged in a 39-count indictment for conspiracy to commit health care fraud and a forfeiture allegation of $1,956,750.54. The government seeks to forfeit two bank accounts, one investment account, and a Gallery Plaza Condominium located in the Condado area in San Juan, Puerto Rico.

The indictment alleges that from on or about November, 2008, until on or about May, 2010, Monte Mar submitted at least 1,518 false and fraudulent claims to Medicare totaling approximately $2,993,127.35 for Durable Medical Equipment (DME) that was not medically necessary, causing Medicare to disburse approximately $1,440,597.65. In March 2010, the indictment further alleges that after Monte Mar had been placed in a pre-payment status by Medicare, defendants Gilberto Gómez and Yolanda García-Rodríguez purchased PROMEDS and submitted false claims to Medicare seeking reimbursement for DME, including power wheelchairs, power pressure reducing air mattresses and knee orthosis. PROMEDS submitted at least 359 fraudulent claims to Medicare totaling approximately $786,368.34, causing Medicare to disburse approximately $335,493.12. In October 2010, the indictment alleges that a third company, Quality, was purchased by Gómez and García-Rodríguez after PROMEDS had been placed in a pre-payment status by Medicare. From on or about October 2010, until May, 2011, Quality submitted at least 115 false claims to Medicare totaling approximately $298,321.26, causing Medicare to disburse approximately $180,659.77. The indictment alleges a total amount of $4,077,816.95 fraudulently billed by using Monte Mar, PROMEDS and Quality, where Medicare disbursed a total of approximately $1,956,750.54.

Doctor Francisco Garrastegui was a physician licensed to practice medicine in Puerto Rico but not a Medicare provider. Garrastegui signed and completed false progress notes, prescriptions, Certificate of Medical Necessity (CMNs) and Statements of Ordering Physician for Medicare beneficiaries that were billed by Monte Mar, PROMEDS and Quality. The doctor was paid kickbacks by the three health corporations for the preparation of these false documents. The other defendants’ participation during the conspiracy involved the creation and submission of the fraudulent claims to Medicare.

The health care fraud scheme charged in the second indictment involves Luz M. Vega, president of Preferred Medical Equipment (PME), Doctor Francisco Garrastegui, Lissette Acevedo, Luisa Nieves and María Elisa Pérez. According to the 60-count indictment, from on or about April 2010, until on or about March 2011, PME submitted false claims to Medicare, seeking reimbursement for Durable Medical Equipment including: power wheelchairs, power pressure reducing air mattresses, wheelchair accessories, lumbar-sacral orthosis, knee orthosis and hospital beds. The co-conspirators submitted at least 95 fraudulent claims totaling approximately $210,223.47, causing Medicare to disburse approximately $107,876.73. Defendants Garrastegui, Acevedo and Nieves also participated in the first conspiracy charged in the previously mentioned indictment. The government seeks to forfeit $107,876.73 and one bank account.

“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds which are destined for our elderly population, in order to enrich themselves.”

“HHS/OIG works diligently to investigate allegations of Medicare fraud. Today’s arrests involving durable medical equipment (DME) fraud demonstrate our resolve to bring these subjects to justice. Furthermore, as seen on the attached chart (DME data), our efforts, along with the U.S. Attorney’s Office and our law enforcement partners, have made a dramatic reduction on the total dollars billed and paid for DME in Puerto Rico.”

“The U.S. Secret Service is committed to investigate any financial fraud crimes to include identity theft along with our partner agencies to safeguard our financial system,” said Pedro Gómez, Special Agent in Charge. We will continue to investigate these types of crimes to the fullest extent of the law and bring to justice these criminals that engage in identity theft to facilitate other criminal activities.”

HHS-OIG, USSS, and the FBI conducted the investigations. The agencies that conducted the arrests were HHS-OIG, USSS, FBI, and the U.S. Marshal Service.

The cases are being prosecuted by Assistant U.S. Attorneys Julia Díaz-Rex, health care fraud coordinator, and Héctor Ramírez-Carbó, and Special Assistant U.S. Attorney Wallace A. Bustelo.

If found guilty, the defendants could face a possible sentence of 10 years in prison for the health care fraud offense with a consecutive term of imprisonment of two years for the aggravated identity theft offense and a fine of up to $250,000. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be 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

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To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

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


Kenneth C. Osbourne, Jr. and Sheldon Hylton Indicted by a Federal Grand Jury for Allegedly Committing Conspiracy to Commit Bank Fraud, Aggravated Identity Theft, Bank Fraud, and Aiding and Abetting

September 1, 2011

The Federal Bureau of Investigation (FBI) on August 31, 2011 released the following:

“Two Charged in Identity Theft Scheme

Kenneth C. Osbourne, Jr. and Sheldon Hylton were charged today by indictment, filed on August 25, 2011, with conspiracy to commit bank fraud and aggravated identity theft, bank fraud, aggravated identity theft, and aiding and abetting, announced United States Attorney David Memeger. Hylton is also charged with wire fraud and possession, with intent to use unlawfully, five or more false identification documents. He was arrested this morning.

The charges stem from the defendants’ participation in an identity theft scheme that resulted in the personal identity information of approximately 86 individuals being compromised. According to the indictment, defendant Osbourne used his position as a customer service representative at AmeriHealth Administrators, Inc. to access customers’ personal identity information, including names, dates of birth, Social Security numbers, and bank account numbers, and passed this information along to defendant Hylton. Hylton, in turn, obtained counterfeit checks that were printed using the victims’ names, addresses, and bank account numbers. The indictment alleges that, between October 2009 and January 2010, defendant Hylton and other co-conspirators deposited approximately 48 counterfeit checks totaling approximately $289,846.82 into TD Bank accounts, and subsequently withdrew approximately $189,300 cash from these accounts. According to the indictment, defendant Hylton also used the personal identity information of five victims to access online adult pornography websites. Hylton also was charged with possession of 15 counterfeit Pennsylvania driver’s licenses.

Information Regarding the Defendants

Nams Address Age
Kenneth C. Osbourne, Jr. Philadelphia, PA 35
Sheldon Hylton Philadelphia, PA 22

If convicted, defendant Osbourne faces a maximum possible sentence of 57 years’ imprisonment, including a mandatory term of imprisonment of two years, a $4 million fine, a five-year term of supervised release, and a $1,300 special assessment. Defendant Hylton faces a maximum possible sentence of 82 years’ imprisonment, including a mandatory term of imprisonment of two years, a $4.5 million fine, a five-year term of supervised release, and a $1,500 special assessment

The case was investigated by the Federal Bureau of Investigation and United States Secret Service and is being prosecuted by Assistant United States Attorney Karen M. Klotz.

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

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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Michael Holm Sentenced by Chief United States District Judge Alvin W. Thompson in Hartford For Possessing Child Pornography

August 29, 2011

The Federal Bureau of Investigation (FBI) on August 26, 2011 released the following:

“Branford Resident Sentenced to Federal Prison Term for Possessing Child Pornography

David B. Fein, United States Attorney for the District of Connecticut, announced that MICHAEL HOLM, 32, of Oak Street, Branford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to three months of imprisonment, followed by three months of home confinement and five years of supervised release, for possessing child pornography.

According to court documents and statements made in court, on May 29, 2008, agents assigned to the Connecticut Computer Crimes Task Force conducted a court-authorized search at HOLM’s residence and seized a computer. Subsequent forensic analysis of the computer revealed between 150 and 300 images of child pornography.

On December 9, 2010, HOLM pleaded guilty to one count of possession of child pornography.

Following his release from prison, HOLM will be required to register as a sex offender. As special conditions of his five-year-term of supervised release, the United States Probation Office is authorized to monitor HOLM’s computer use and conduct random searches of his residence, automobile and workplace. Also, HOLM must not have any unsupervised contact with children who are under the age of 18, other than his own children, without the express permission of the U.S. Probation Office and his mental health treatment provider.

This case was investigated by the United States Secret Service and the Connecticut Computer Crimes Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Ray Miller and Special Assistant United States Attorney Neeraj Patel.

The Connecticut Computer Crimes Task Force, which is housed at the main FBI office in New Haven, investigates crimes occurring over the Internet, including on-line crimes against children, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.

This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, and the District of Connecticut’s “Operation Constant Vigilance,” which are aimed at protecting children from sexual abuse and exploitation.”

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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Jeffery Wayne O’Neil and His Son Nathaniel O’Neil Indicted by a Houston Federal Grand Jury with Mail Fraud and Wire Fraud

August 26, 2011

The U.S. Attorney’s Office Southern District of Texas on August 25, 2011 released the following:

“Houston Man and Son Indicted For Fraud

HOUSTON – Jeffery Wayne O’Neil, 63, of Houston, has been arrested following the return of an indictment charging him and his son, Nathaniel Chilo aka Nathaniel O’Neil, 21, with mail and wire fraud, United States Attorney José Angel Moreno announced today.

Jeffrey O’Neil was arrested last night by United States Secret Service agents without incident. He made his initial appearance before U.S. Magistrate Judge Mary Milloy and was released on a $50,000 bond. A warrant remains outstanding for the arrest of Nathaniel O’Neil. Anyone who has information regarding his whereabouts is asked to contact the United States Secret Service at 713-868-2299.

The 10-count indictment, returned under seal on Aug. 11, 2011, was unsealed today following the arrest of Jeffrey O’Neil. The father and son, both of Houston, are charged with six counts of mail fraud and four counts of wire fraud. Jeffery O’Neil operated various debt relief businesses in the Houston area under different names, including but not limited to J. O’Neil/Associates Inc., World Outlook, World Outlook Management and Universal Restoration, none of which were licensed by the Texas Office of Consumer Credit Commissioner, according to the indictment.

The indictment alleges a scheme allegedly perpetrated by the O’Neils between June 2005 and September 2010 which consisted essentially of a plan to obtain money from individuals throughout the United States by representing that in exchange for paying money for entering into various programs they offered, they could provide debt relief in the form of credit card debt, tax liens, mortgage foreclosure, judgments. The O’Neils allegedly used agents in various parts of the United States to solicit, communicate with and receive payments from individuals seeking debt relief and the O’Neils communicated with agents and individuals seeking debt relief by and through e-mails. The defendants allegedly falsely represented and caused others to falsely represent that debt relief would be obtained through the Federal Trade Commission, the Senate Banking Committee, the Office of the Comptroller of the Currency (OCC), through injunctive action, and through a program called the “Debt Reconciliation Program” or “Debt Relief Program,” referred to as “DRP.” According to the indictment, Jeffery O’Neil falsely represented and caused others to falsely represent that he worked with the Financial Crisis Inquiry Commission.

Additionally, the indictment alleges the scheme further involved the sending of emails to include an altered speech by Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System, which falsely include statements about a debt reconciliation proposal sponsored by World Outlook Management as well as a fraudulent calendar for the Judiciary Committee of U.S. House of Representatives. Also, the O’Neils allegedly created Fair Credit Investigation Company, an entity bearing the initials “FCIC,” the same as the Financial Crisis Inquiry Commission which was falsely represented as a debt relief program. The O’Neils allegedly caused individuals throughout the United States to send checks payable to the FCIC to an address in Houston, to obtain credit card debt relief. When, in actuality, according to the indictment, the majority of the funds were used for the O’Neils’ personal benefit.

The indictment also contains a notice of forfeiture seeking forfeiture of $617,000, the alleged proceeds from the illegal activity alleged in the indictment.

Each count of mail fraud and wire fraud carries a maximum penalty of 20 years imprisonment and a fine up to $250,000.

The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.

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 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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Lakecia Motley Sentenced to 63 Months in Federal Prison for Tax Fraud Conspiracy

August 23, 2011

The U.S. Attorney’s Office Middle District of Alabama on August 22, 2011 released the following:

“MONTGOMERY WOMAN SENTENCED IN TAX FRAUD CONSPIRACY  
  
Montgomery, Alabama – Lakecia Motley, 32, of Montgomery, was sentenced to 63 months in federal prison for tax fraud announced, George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Motley was also ordered to pay $676,465.49 in restitution to the United States.

On August 12, 2011, Motley pleaded guilty to conspiracy to file false and fraudulent federal income tax returns, in violation of Title 18, United States Code, Section 286. At the plea and sentencing hearings, the United States proved that between 2005 and 2007, Motley and her co-conspirators filed numerous fraudulent tax returns using stolen identity information. The United States lost a total $676,465.49 from the false tax returns.

The case was investigated by Internal Revenue Service, Criminal Investigation, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Jared Morris.”

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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Brian Gene Montgomery Indicted by a Minneapolis Federal Grand Jury for Receipt of Child Pornography, Distributing Child Pornography, and Possession of Child Pornography

August 19, 2011

The Federal Bureau of Investigation (FBI) on August 19, 2011 released the following:

“Oakdale Man Indicted for Receiving, Distributing, Possessing Child Pornography

MINNEAPOLIS— An indictment unsealed early this morning charges a 50-year-old Oakdale man with receiving, distributing, and possessing child pornography. The indictment, filed on August 17, 2011, charges Brian Gene Montgomery with three counts of receipt of child pornography, one count of distributing child pornography, and one count of possession of child pornography. The indictment was unsealed following Montgomery’s initial appearance late yesterday afternoon in federal court.

The indictment alleges that Montgomery received images of minors engaging in sexually explicit conduct on November 17, 2010, and received a video containing similar material on November 18, 2010. In addition, the indictment alleges that on February 23, 2011, Montgomery distributed an image containing similar conduct, and that on May 4, 2011, he possessed thousands of such images.

If convicted, Montgomery faces a potential maximum penalty of 20 years in prison on each receipt count and the distribution charge, as well as ten years on the possession charge. All sentences will be determined by a federal district court judge.

This case is the result of an investigation by the Minnesota Cyber Crimes Task Force, which is sponsored by the Federal Bureau of Investigation and the United States Secret Service. It is being prosecuted by Assistant U.S. Attorneys Laura M. Provinzino and Kimberly A. Svendsen.

Presently, the Justice Department is funding a study concerning the correlation between involvement in child pornography and the hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.

The U.S. Department of Justice is committed to combating the sexual exploitation of children, particularly via the Internet. In fiscal year 2010, 2,235 defendants pleaded guilty to federal child pornography charges, 2,222 of whom were sentenced to prison. In fiscal year 2009, 2,083 defendants were sentenced to prison on child pornography charges. For more information about these efforts, please visit the Department’s Project Safe Childhood website, at http://www.projectsafechildhood.gov.”

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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Arthur David Morgart Indicted by a Houston Federal Grand Jury with Access Device Fraud, Fraud Related to Identification Documents and Aggravated Identity Theft

August 15, 2011

The U.S. Attorney’s Office Southern District of Texas on August 12, 2011 released the following:

“Possession of Counterfeit IDs and Credit Cards Leads to Identity Theft Charges

HOUSTON – A federal grand jury in Houston has returned a seven-count indictment charging Arthur David Morgart with access device fraud related to counterfeit and unauthorized credit card numbers, fraud related to identification documents and aggravated identity theft, United States Attorney Angel José Moreno announced today along with United States Secret Service Special Agent in Charge Cynthia L. Marble.

The indictment was returned by a Houston federal grand jury on Thursday, Aug. 11, 2011. Morgart, 31, is accused of possessing more than 15 counterfeit and unauthorized access devices – namely debit and credit card numbers and cards – on April 2, 2011, the date of his arrest by officers from the Houston Police Department. Morgart is also accused of four counts of aggravated identity theft arising from his alleged possession without lawful authority of a Texas driver’s license and credit cards in the names of other persons between March 27, 2011, and April 2, 2011, as well as two additional counts of fraud related to identification documents involving his alleged possession of an altered Social Security card and an altered Texas driver’s license without lawful authority.

Morgart is presently in state custody in the Huntsville area on unrelated charges. The United States will seek a court order to transfer Morgart into federal custody to answer these new charges.

If convicted of the one charge of access device fraud, Morgart faces up to 10 years in federal prison without parole as well as a $250,000 fine. If convicted of any of the two fraud related to identification documents charges the punishment is up to 15 years in prison and a $250,000 fine. A conviction for any of the four aggravated identity theft charges carries a mandatory minimum sentence of two years in prison which must be served consecutive to any sentence imposed on other offenses charged resulting in conviction.

The United States Secret Service conducted the investigation that led to today’s federal charges. Assistant United States Attorney Julie Redlinger 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 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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Pedro Rosales of Houston Indicted by a Houston Federal Grand Jury for Possessing and Distributing Child Pornography

August 6, 2011

The U.S. Attorney’s Office Southern District of Texas on August 5, 2011 released the following:

“32-Year Old Houston Man Indicted for Distributing and Possessing Child Pornography Ordered Held Without Bond

HOUSTON – A 32-year-old Houston resident has been ordered to remain in federal custody without bond pending trial on charges of possessing and distributing child pornography, United States Attorney José Angel Moreno announced today.

Following a detention hearing this morning, U.S. Magistrate Judge Stephen W. Smith ordered Pedro Rosales, 32, to remain in federal custody pending trial. Indicted on July 26, 2011, by a Houston grand jury, Rosales was transferred on Aug. 2, 2011, from state custody where he has been held since a January 2011 arrest of similar state charges.

The federal charges against Rosales are the result of an investigation conducted by the United States Secret Service (USSS) and members of the Houston Metro Internet Crimes Against Children Task Force (Houston Metro ICAC). During today’s hearing, the court heard testimony regarding that investigation. According to that testimony, Rosales was making child pornography available to others through the use of Peer to Peer software over the Internet. A special agent downloaded an image of child pornography from the extensive list Rosales had allegedly made available on line to those using similar Peer to Peer software by Rosales. The images, which included children under the age of 12 being sexually violated by adults, or positioned in poses which exposed their genitalia in a lewd/lascivious manner or being subjected to bondage, were available from a “shared” folder on his computer.

As part of the investigation, agents obtained records identifying the computer, its location and the subscriber information identifying Rosales. In early January 2011, investigating agents executed a warrant at Rosales’ Houston area home and seized a computer which upon forensic examination was found to contain more than 600 digital images and approximately 36 videos of child pornography. The court also heard testimony that Rosales allegedly attempted to persuade a juvenile family member to claim responsibility for the child pornography believing that if the juvenile claimed the images/videos, the family member would not be prosecuted because of age.

If convicted of distributing child pornography, Rosales faces a minimum sentence of five years and a maximum of 20 years imprisonment without parole to be followed by a term of supervised release for any term of years up to life during which the court can impose a number of special conditions designed to protect children. Statutorily, the penalty for a possession of child pornography conviction carries a maximum prison term of 10 years. Additionally, if convicted, Rosales will be required to register as a sex offender. Trial is presently set before United States District Court Judge Vanessa D. Gilmore on Oct. 11, 2011.

This case brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov.

Assistant United States Attorney Sherri L. Zack is prosecuting the case.”

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 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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Edwin Jacquet, Peter Romeo, Edwin J. Mansour, Jr., and Denise Hudson Indicted by a Manhattan Federal Grand Jury for Conspiracy to Commit Bank Fraud and Conspiracy to Cause Damage to a Protected Computer

July 26, 2011

The U.S. Attorney’s Office Southern District of New York on July 25, 2011 released the following:

“MANHATTAN U.S. ATTORNEY CHARGES FOUR WITH OPERATING FRAUDULENT SCHEME TO REPAIR POOR CREDIT HISTORY

Scheme Fraudulently Enabled Thousands With Poor Credit To Improve Credit Scores To Obtain Millions Of Dollars In Loans

PREET BHARARA, the United States Attorney for the Southern District of New York, and BRIAN G. PARR, the Special Agent-in-Charge of the United States Secret Service (“USSS”) New York Field Office, announced today the unsealing of an Indictment charging EDWIN JACQUET, PETER ROMEO, EDWIN J. MANSOUR, JR., and DENISE HUDSON in connection with a fraudulent credit repair scheme. As part of the scheme, the defendants falsely reported to credit bureaus inflated credit histories for thousands of individuals, enabling those individuals to get millions of dollars in loans from financial institutions and other lenders.

Manhattan U.S. Attorney PREET BHARARA said: “Banks and other lenders rely on information from credit bureaus in making determinations about the credit-worthiness of consumers. These defendants allegedly subverted the entire reporting process to make a profit, and helped dupe a host of lenders who unwittingly extended millions of dollars in credit to people who were not worthy of the privilege.”

USSS Special Agent-in-Charge BRIAN G. PARR stated: “Schemes such as these adversely impact our nation’s banks and credit agencies, and harm hard-working Americans by eroding the public’s confidence in credit markets. Through the strategic support of our law enforcement partners, the Secret Service continues to effectively focus its investigative efforts on combating these types of financial crimes.”

According to the Indictment unsealed today in Manhattan federal court:

Consumer Reporting Agencies, commonly known as “credit bureaus,” are businesses that provide reports to third parties about the credit-worthiness of consumers. Credit bureaus gather information from many sources, including “furnishers,” which include entities that provide consumers with credit, such as credit card companies, automobile lenders, and department stores. In September and October 2007, Highway Furniture, Inc. (“Highway Furniture”), a Brooklyn-based business, became a furnisher. In July 2008, New York Funding Group Inc. (“New York Funding”), a Hempstead, Long Island-based business, became a furnisher.

From 2007 through 2009, through Highway Furniture and, later, New York Funding, JACQUET, MANSOUR, ROMEO, and HUDSON engaged in a scheme to falsely and fraudulently improve the credit histories and credit scores of thousands of individuals who purportedly were customers of the two entities (the “Purported Customers”). In truth and in fact, however, the individuals had never been customers of Highway Furniture and New York Funding.

As part of the scheme, in exchange for thousands of dollars in fees, the defendants provided credit bureaus with fictitious information showing that Highway Furniture and New York Funding had extended credit to the Purported Customers and that the loans had been or were being repaid. The defendants also falsely and fraudulently improved the credit histories and credit scores of some of the Purported Customers by deleting accurate, but negative, credit information maintained by the credit bureaus. As a result of their fraudulently improved credit histories and credit scores, the Purported Customers obtained millions of dollars of loans from banks and other lenders.

ROMEO, MANSOUR, and HUDSON were arrested this morning and will be arraigned later today in Manhattan federal court. JACQUET remains at large. Each defendant is charged with one count of conspiracy to commit bank fraud (Count One) and one count of conspiracy to cause damage to a protected computer (Count Two). On Count One, the defendants each face a maximum sentence of 30 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. On Count Two, the defendants each face a maximum sentence of 10 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.

JACQUET, 38, and ROMEO, 35, reside in Brooklyn, New York. MANSOUR, 43, resides in Staten Island, New York. HUDSON, 47, resides in Roosevelt, New York.

Mr. BHARARA praised the outstanding efforts of the United States Secret Service in the investigation, which he noted is ongoing. He also thanked Experian Information Solutions, Inc., and TransUnion LLC for their assistance in the investigation.

This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney DANIEL W. LEVY is in charge of the prosecution.

The charges and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until 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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