Cautati de FBI

DOUGLAS KELLEY and LUCAS G. MARIN arrested by the FBI for bank robbery

2012-01-21T01:31:00.001-08:00

Criminal charges were filed today against two Kane County men in connection with the January 18^th armed robbery of the Elgin State Bank, located at 1590 North McLean Boulevard in the northwest suburb. The charges were announced today by Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI); Jeffrey Swoboda, Chief of the Elgin, Illinois Police Department (EPD) and Gary J. Schira, Chief of the Batavia, Illinois Police Department (BPD).

DOUGLAS KELLEY, age 27, and LUCAS G. MARIN, age 29, both of Batavia, were charged in a criminal complaint filed earlier today in U.S. District Court in Chicago with one count of Bank Robbery, which is a felony offense. KELLEY was arrested by EPD officers, without incident, following the stop of a suspected get-away vehicle shortly after the robbery. MARIN was arrested early Thursday morning by officers from the BPD, without incident, following a routine traffic stop.

According to the complaint, KELLEY and MARIN entered the Elgin State Bank Wednesday afternoon just before 5:00 PM. Both men were armed with handguns, which were later determined to be pellet guns, and had their faces concealed. They verbally announced a robbery, demanding money from several teller drawers. After receiving approximately $2,800.00 in cash, the two men fled the bank on foot. Included in the money given to the robbers was a security dye pack, which activated when the robbers exited the bank.

An alert citizen, who was seated in a vehicle outside, saw the two robbers running from the bank and followed them as they entered a waiting vehicle. The citizen then contacted the Elgin Police Department, providing them with a description of the robbers and their get-away car. This description ultimately led to the identification and arrest of the robbers.

Subsequent investigation by the FBI and the Elgin and Batavia Police Departments developed additional evidence linking both men to the robbery and the filing of the charges announced today.

In announcing this arrest, Mr. Grant commended the officers of both the Elgin and Batavia Police Departments for their efforts in helping to solve this robbery. Mr. Grant also recognized the invaluable assistance provided by the witness to the robbery, whose selfless efforts directly led to the apprehension of two potentially dangerous robbers. Said Mr. Grant “The public’s cooperation has been a cornerstone of law enforcement in the United States for over 200 years. It is gratifying to see that spirit is alive and well”.

KELLEY and MARIN appeared before Magistrate Judge Morton Denlow in Chicago, earlier this afternoon, at which time they were formally charged. Both men were ordered held without bond pending their next scheduled court appearance. If convicted of the charge filed against them, KELLEY and MARIN face a possible sentence of up to twenty (20) years incarceration.

Additional information about this and other recent Chicago area bank robberies, including downloadable photographs, is available at the Bandit Tracker web site, www.bandittrackerchicago.com .

The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

Female wanted by the FBI in Chicago bank robbery

2012-01-06T18:09:00.000-08:00

The Chicago FBI’s Violent Crimes Task Force is asking for the public’s help in identifying the individual depicted in the attached wanted flyer. She is believed responsible for the robbery of one Chicago bank and the attempted robbery of a second on Thursday, January 5^th.

The banks targeted and a physical description of the robber is contained on the flyer.

The Chicago FBI’s Violent Crimes Task Force is comprised of FBI special agents, detectives from the Chicago Police Department and investigators from the Cook County Sheriff’s Office.

Additional information about this and other unsolved Chicago area bank robberies is available online at the Bandit Tracker Chicago web site, www.bandittrackerchicago.com.

“Tire Iron Bandit” wanted by the FBI

2012-01-05T07:30:00.000-08:00

Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) is asking for the public’s help in identifying the individual depicted on the attached wanted flyer, dubbed the “Tire Iron Bandit”, who is wanted in connection with the armed robbery of a Willow Springs bank on two separate occasions.

The most recent theft took place on January 3^rd of 2011, when the First Merit Bank branch, located at 8480 S. Archer Avenue in the southwest suburb, was robbed of undisclosed amount of money. This individual is also believed to have robbed the same bank on July 16, 2010.

During the most recent theft, the robber entered the bank late in the afternoon just as two employees were preparing to close for the day. The robber quickly approached the teller counter, holding a tire iron in his left hand, and demanding money from the tellers on duty. The robber then placed a small duffel bag on the counter and held it open for the tellers, who placed cash from their drawer inside. The robber then fled the bank, but his method and direction of escape was not seen.

During the previous robbery in 2010, the robber entered the bank and approached the teller counter. While holding a tire iron in his hand, he orally announced a robbery, ordering a bank employee to place money from her drawer into a black gym bag that the robber brought with him. He repeatedly threatened bank employees with harm, if his demands were not met. After receiving an undisclosed amount of cash, the robber fled the bank on foot and was last seen running through an adjacent alley.

No injuries were reported during either robbery, both of which are being investigated jointly by the FBI and the Willow Springs Police Department.

Anyone recognizing this individual or having any information about either of these robberies is asked to call the Chicago FBI at (312) 421-6700.

Additional information about this and other unsolved Chicago area bank robberies, including downloadable photographs, is available on-line at the Bandit Tracker Chicago web site, www.bandittrackerchicago.com.

DANE R. PHENEGHAR was charged with one count of bank robbery

2011-12-28T17:05:00.000-08:00

A 22-year old Glen Ellyn man has been charged with the December 20^th robbery of the Elgin State Bank, located at 1001 South Randall Road.

DANE R. PHENEGHAR was charged in a criminal complaint filed last week in US District Court in Chicago with one count of bank robbery, which is a felony offense. The complaint alleges that PHENEGAR made off with over $4000 after he handed a teller a note, announcing a robbery and demanding cash from her drawer. The note claimed that he was armed with a handgun but no weapon was displayed and no injuries were reported.

Subsequent investigation by the FBI and Elgin Police Department identified PHENEGAR as the robber. He was arrested by St. Charles Police, without incident, on unrelated charges on December 22^nd. Although he is only charged with the Elgin robbery, PHENEGAR is also a suspect in the December 5^th robberies at the Fifth Third Bank branch in Wheaton and First State Bank branch in Geneva and the December 9^th robbery of the TCF Bank branch in Glendale Heights.

PHENEGAR appeared before US Magistrate Judge Sidney I. Schenkier in Chicago on December 22^nd, at which time he was formally charged. PHENEGAR was ordered held without bond, pending his next scheduled court appearance.

FIFTEEN CHARGED IN GUN RUNNING PROBE

2011-12-15T12:54:00.000-08:00

Fifteen Chicago men were charged in grand jury indictments or criminal complaints filed earlier this week in either U.S. District Court or Cook County Circuit Court in Chicago with violating state or federal firearms laws.

The charges were announced today by Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) together with Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Garry F. McCarthy, Superintendent of the Chicago Police Department (CPD) and Anita Alvarez, Cook County State’s Attorney.

Thirteen of the defendants were arrested yesterday at various locations in and around Chicago, without incident, by members of the Chicago FBI’s Joint Task Force on Gangs and officers from the CPD. Two other defendants MARCUS JEFFERSON and TERRILL SMITH, avoided capture and are now the subjects of a nationwide manhunt.

Six of those arrested were charged in separate federal grand jury indictments with Felon in Possession of a Firearm and/or Distribution of a Controlled Substance. Those charged federally are identified as MARCUS JEFFERSON, age 31; MAURICE MARTIN, age 41; CARLOS MENDEZ, age 33; KEITH MURRAY, 45; TERRILL SMITH, age 23; and BRUCE WEATHERSPOON, age 30; all residents of Chicago. An additional defendant, RAMON FAVELA, age 38, also of Chicago, was arrested and subsequently charged in a criminal complaint with Possession and Distribution of a Controlled Substance.

Eight others were charged in criminal complaints filed in state court with Unlawful Sale of a Firearm or Unlawful Use of a Weapon by a Felon. The state defendants are identified as AARON BASSETT, age 22; COREY BRAMLETT, age 19; TRIMELL COLLINS, age 27; GREGORY FREEMAN, age 23; DAVID HILL, age 22; CORNELIUS LEE, age 28; JAMES TOOMER, age 27; and CARLOS WILLIAMS, age 39, all residents of Chicago. According to the grand jury indictments and criminal complaints, all of those charged were involved in the illegal possession or sale of firearms, including handguns, shotguns and assault rifles on Chicago’s west and south sides, since April of 2010. These weapons are alleged to have been purchased outside of Illinois, transported to Chicago where the defendants took possession of them, then eventually sold to undercover operatives for amounts ranging from $ 250.00 to $1600.00.

The investigation leading to the filing of the charges announced today is part of an ongoing and coordinated effort by the FBI and CPD’s Organized Crime Bureau and Gang Investigations Division to identify those responsible for illegally supplying firearms to Chicago’s criminal element, which are often used in street violence. During the course of this investigation, which incorporated sophisticated physical and electronic surveillance techniques and controlled undercover purchases, 48 firearms were recovered.

In announcing these arrests, Mr. Grant recognized the continued partnership with law enforcement at every level in combating violent street gangs. Said Mr. Grant, “The charges announced today reaffirm the FBI’s role in helping to stem the tide of violence in the City of Chicago and surrounding suburbs brought about by street gangs vying for control of lucrative drug trafficking locations.”

Additionally, the FBI is grateful for the assistance and support provided by the Cook County State’s Attorney’s Office, the Illinois State Police Forensic Laboratory, the Cook County Sheriff’s Intelligence Unit and the Illinois Department of Corrections.

“Gun violence is one of the toughest problems we face in the fight against crime,” said Superintendent McCarthy. “Chicago Police will continue collaborative efforts with our law enforcement partners in order to stop the influx of illegal firearms onto our City’s streets, and to keep these deadly weapons out of the hands of criminals responsible for drug and gang related violence in our communities,” he added.

“Today’s arrests are crucial in our ongoing efforts to target and cut off the flow of illegal weapons onto our streets which is driving the violence plaguing so many of our communities,” said Cook County State’s Attorney Anita Alvarez. She added “The Cook County State’s Attorney’s Office stands united with our partners in sharing all of our resources to continue to target and aggressively prosecute this type of gun trafficking.”

Those charged federally appeared in U.S. District Court in Chicago late yesterday and today, at which time they were formally charged. Two of the defendants were ordered held without bond, pending their next court appearance, which is scheduled for Monday, December 19th. The remaining defendants were released on house arrest and electronic monitoring. If convicted of the charges filed against them, all seven federal defendants face a possible sentence ranging from ten years to life in prison.

Those charged in state court appeared at the Cook County Criminal Courthouse earlier today, at which time they were formally charged. All eight defendants were ordered held on bonds ranging from $50,000 to $ 250,000 and all face sentences ranging from three to seven years in prison.

The Chicago FBI’s Joint Task Force on Gangs is comprised of FBI special agents and officers from the Chicago Police Department.

The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

CHARLENE M. TROOP arrested for bank robbery

2011-12-05T13:37:00.001-08:00

CHARLENE M. TROOP, age 23, 1414 S. Kenilworth, Berwyn, IL, was arrested on Friday, December 2, 2011, by officers of the Berwyn Police Department in connection with the December 2^nd, robbery of the Chase Bank, located at 6969 Ogden Avenue, Berwyn, IL.

According to the complaint filed in U.S. District Court today, a lone female robber walked into the Chase Bank on December 2^nd, handed the teller a note announcing a robbery, claimed she had a weapon and threatened harm if her demands for cash were not met. She handed the teller an envelope and instructed the teller to put the cash inside. The teller placed the cash, along with a dye pack into the envelope. The robber then exited the bank. According to a witness, the robber was observed in the bank parking lot carrying a white bag, which soon thereafter exploded from the dye pack. After grabbing the money and placing it in her coat, she entered a Dodge Caravan and drove away.

Subsequent investigation by the Berwyn Police Department and the FBI’s Violent Crimes Task Force led to the identification and arrest of TROOP. She was charged today with one count of bank robbery. TROOP is being held without bond pending her next scheduled court appearance on December 8, 2011, at 11:00 AM.

Although being charged with just the December 2nd, Berwyn bank robbery, it is believed TROOP is suspect in the November 18th robbery of the Citizens Community Bank, 7025 West Roosevelt Avenue, Berwyn; and the November 22nd robbery of the Metropolitan Bank, 8744 Ogden Avenue, Lyons, Illinois.

Former Lake Shore Asset Management Director Sentenced to 20 Years for Defrauding 900 Investors in $294 Million Scheme

2011-11-29T18:34:00.001-08:00

CHICAGO—The former managing director of a hedge fund that was forced into receivership by U.S. government regulators was sentenced today to 20 years in federal prison for fraudulently soliciting and obtaining approximately $294 million from some 900 investors worldwide. The defendant, Philip J. Baker, who controlled Lake Shore Asset Management Ltd., and the Lake Shore Group of Companies, which purportedly traded clients’ funds in several commodity futures pools, had pleaded guilty to wire fraud in August.

Baker, 46, a Canadian citizen who lived in London and later Hamburg, Germany, remained in federal custody following his extradition in December 2009 from Hamburg, where he was arrested in July 2009. He was indicted in February 2009.

U.S. District Judge John Darrah imposed the maximum 20-year sentence, which the government recommended under the terms of Baker’s plea agreement. In addition, Judge Darrah imposed an order, which Baker had agreed to, requiring him to pay restitution totaling more than $154.8 million, representing the outstanding losses to investors.

The sentence was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

According to the plea agreement, between 2002 and September 2007, as a result of Baker’s fraudulent solicitations, Lake Shore obtained approximately $294 million from approximately 900 investors. Baker admitted that he misappropriated at least $30 million for his own use and for the use of another Lake Shore director. He also admitted Lake Shore incurred several million dollars in net trading losses during the same time period that he misrepresented that Lake Shore’s trading was profitable.

Baker held himself out as a co-founder and managing director of Lake Shore, and the managing director of the “Lake Shore Group of Companies.” The Lake Shore companies advertised that they operated several commodity pools—investments that combined the funds of many investors for the purpose of trading commodity futures. Baker’s solicitations to invest in the Lake Shore commodity pools withheld material information and made the following false representations:

that the commodity pools generated positive returns between January 2002 and September 2007, including 22.48 percent in 2003, 29.81 percent in 2004, and 18.95 percent in 2005, when Lake Shore actually experienced millions of dollars in trading losses during those years;
that no management fee would be charged, except by one of the commodity pools, that no operational expenses would be passed on to the investors, and that participants would pay only a “profit incentive fee” if the pools generated profits, when in fact Baker charged investors more than $30 million in broker fees, and converted millions of dollars in investor funds to his own use even though the pools were not profitable; and
that Baker co-founded Lake Shore in 1993, and that Lake Shore was regulated by U.S. authorities, when in fact Baker was not officially associated with any regulated Lake Shore entity until January 2007. The actual principals of a regulated entity that used the name “Lake Shore Inc.” repeatedly told its regulator, the National Futures Association (NFA), that it was dormant and conducted no business between 2002 and 2007, thus avoiding audit and oversight.

On June 13, 2007, NFA regulators reviewed a website associated with Lake Shore and saw a press release stating, “In its 13-year history, Lake Shore’s flagship ‘Program I’ has generated a 28.27% compound annual return.” The next day, NFA staff went to Lake Shore Ltd.’s office on North Michigan Avenue in Chicago to conduct an audit to verify the profit claim on the website and because Lake Shore Ltd. had been registered with the NFA only since January 2007. Lake Shore did not provide the NFA with certain records it was required by law to keep and produce to regulators.

Later that month, the Commodity Futures Trading Commission (CFTC), filed a civil lawsuit against Lake Shore Ltd. in Federal Court in Chicago, and obtained a court order freezing its assets and requiring the company to produce books and records verifying its profit claims and identifying investors. In that civil case, U.S. District Judge Blanche M. Manning issued several orders directing Lake Shore Ltd., other Lake Shore entities, and Baker himself to produce books and records. Judge Manning also appointed a receiver to gather all available assets for distribution to the defrauded investors. The receiver recovered and returned to investors approximately $120 million to date. Baker never produced the documents to the CFTC or receiver, but instead took steps to hide the records in violation of the court orders.

The CFTC and the receiver provided valuable assistance in the case. The government was represented by Assistant U.S. Attorney Clifford Histed.

The Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.

WANTED FOR BANK ROBBERY

2011-11-10T12:51:00.000-08:00

Coldwater, Michigan - The FBI along with state and local authorities are currently investigating multiple armed bank robberies in Branch, Calhoun and Hillsdale counties in Michigan.
Anyone with information about these robberies is asked to contact
the Federal Bureau of Investigation, Kalamazoo Resident Agency at 269-349-9607. A reward of $10,000 is offered from Southern Michigan Bank & Trust for information leading to the arrest and successful prosecution of this suspect.
CALL 269-349-9607
$10,000 REWARD
The suspect is an approximately 6’0” tall white male. Suspect has been known to wear Halloween masks or hunting overalls with a ski mask. He carries a small black automatic pistol. The suspect has been seen driving an older, white, four-door sedan (possibly with gray along the lower portion).

SIX MEN CHARGED WITH FRAUD INVOLVING SPORTS MEMORABILIA

2011-10-25T17:09:00.000-07:00

Rockford — Six men have been charged in similar but separate fraud schemes involving the
sports memorabilia business and the purchase and sale of equipment and uniforms used by
professional and collegiate athletes. Today, in U.S. District Court, four defendants were charged
in criminal informations and two defendants were charged in indictments.
According to court documents, each case involved the sale, consignment, or auction of
jerseys, in which each defendant falsely and fraudulently represented to buyers that the jerseys were
“game used,” when they were not. Jerseys worn by professional and collegiate athletes during a
game are usually known as “game used” or “game worn,” and are commonly bought and sold by
collectors and others. The value of game used jerseys varies based on the popularity of the player
that used the jersey and how long it had been since the player had actively played the sport. The
value of a jersey was greater if it was game used.
The fraud charges also involved the use of game used jerseys by sports trading card
companies. As stated in the charges, to increase the value and price of packages of sports trading
cards, manufacturers frequently purchase game used jerseys, cut the jerseys into small pieces, and
insert the pieces into card packages. When game used jerseys were purchased for this purpose, the
manufacturers often required that the seller provide a “certificate of authenticity” that the jerseys
were authentic game used jerseys.
As charged, the defendants obtained hundreds of jerseys from a variety of sources, including
retail sellers, then frequently changed the jerseys’ appearance by roughening, scuffing, washing, or
dirtying the jerseys so that they appeared to have actual “wear and tear.” The same jerseys were
then re-sold, consigned, and auctioned for hundreds of thousands of dollars to sports trading card
companies and other buyers as game used jerseys. As part of the scheme the defendants provided
the buyers with fraudulent certificates of authenticity. Each defendant was allegedly involved in a
business engaged in the purchase and sale of sports memorabilia, and the schemes are alleged to
have taken place in Rockford and several other states.
Two men are charged by indictment with mail fraud:
ERIC INSELBERG, a resident of New Jersey, involved in the business operations of Taylor Huff,
Inc. and Pasadena Trading Corp, from late 2001 through late 2009, in two counts of mail fraud.
BRADLEY WELLS, a resident of Florida, involved in the business of Authentic Sports, Inc., and
Historic Auctions, LLC, both Florida businesses, from late 2005 through the middle of 2009, in two
counts of mail fraud.
Four men are charged by information with mail fraud:
BERNARD GERNAY, a resident of New Jersey, involved in the business operations of Pro Sports
Investments, Inc., a New Jersey business;
BRADLEY HORNE, a South Carolina resident, involved in the business operations of Authentic
Sports Memorabilia, Inc., a South Carolina business;
JARROD OLDRIDGE, a resident of Nevada, involved in business operations of JO Sports, Inc.,
a Nevada business; and,
MITCHELL SCHUMACHER, a resident of Wisconsin, using the trade name MS Sports.
Each mail fraud charge in these cases carries a maximum penalty of 20 years in prison, and
a $250,000 maximum fine, or an alternate fine totaling twice the loss or twice the gain, whichever
is greater. If convicted, the Court must impose a reasonable sentence under the advisory United
States Sentencing Guidelines.
The indictments and informations were announced today by Patrick J. Fitzgerald, United
States Attorney for the Northern District of Illinois, and Robert Grant, Special Agent-In-Charge of
the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
The public is reminded that indictments and informations contain only charges and are not
evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the
government has the burden of proving guilt beyond a reasonable doubt.

BLAZEJ M. WASILEWSKI charged with stealing nearly $40,000

2011-08-30T11:00:00.000-07:00

A 25-year old Palos Hills man was charged with stealing nearly $40,000 from the Chase Bank branch, located at 18701 South Halsted Street in south suburban Glenwood, where he worked as an assistant manager. The charges were announced today by Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI).

BLAZEJ M. WASILEWSKI, of 10361 South Alta Drive in Palos Hills, Illinois, was arrested Saturday evening by Officers of the Dominican National Police as he attempted to enter the Dominican Republic on a commercial airlines flight, which originated in Chicago, earlier that day. WASILEWSKI was in possession of $39,765 in U.S. currency, which he failed to declare to Dominican Customs officials.

WASILEWSKI was charged in a criminal complaint filed yesterday in U.S. District Court in Chicago with one count of Bank Embezzlement, which is a felony offense. According to the complaint, WASILEWSKI manually turned off the bank’s electrical power on Friday evening, as the bank was closing for the day. It is alleged that he returned to the bank early the next morning and used his keys and alarm codes to enter the bank, deactivate the alarm, and open the vault.

An audit of the bank conducted by bank employees on Saturday morning determined that a teller cash dispenser was missing while a second had been forced open and the contents removed. In all, $39,765 in bank funds were unaccounted for and believed taken by WASILEWSKI. His bank issued entry key was found sitting on a counter inside the bank while the Chase security system determined that WASILEWSKI’s code had been used to enter the bank branch and open the vault. Attempts by the bank manager to reach WASILEWSKI Saturday morning were unsuccessful.

Subsequent investigation by the FBI developed additional evidence, linking WASILEWSKI to the theft and resulting in the charges that were announced today. Investigators were also able to trace WASILEWSKI to O’Hare International airport, where records showed he boarded a flight to Punta Cana Saturday morning.

WASILEWSKI remains in Dominican custody, awaiting extradition to Chicago. Once returned, he will appear in U.S. District Court in Chicago, at which time he will be formally charged. If convicted of the charge filed against him, WASILEWSKI faces a possible sentence of up to thirty (30) years in prison.

Automotive Brand Hijackers Use False Protection Claims to Lure Online Shoppers

2011-08-16T10:30:00.000-07:00

The FBI today is warning the public that online vehicle shoppers are being victimized by fraudulent vehicle sales and false claims of vehicle protection programs (VPP). In fraudulent vehicle sales, criminals attempt to sell vehicles they do not own. They create an attractive deal by advertising vehicles for sale at prices below book value. Often the sellers purport they need to sell the vehicle because they are moving for work, to include military deployments.

Because of the alleged pending move, criminals refuse to meet the victim in person or allow a vehicle inspection, and they often attempt to rush the sale. To make the deal appear legitimate, the criminal instructs the victim to send full or partial payment to a third-party agent via a wire transfer payment service and to fax the payment receipt to the seller as proof of payment.

The criminal pockets the payment but does not deliver the vehicle. Criminals also attempt to make their scams appear valid by misusing the names of reputable companies and programs. These criminals have no association with these companies, and their schemes give buyers instructions that do not adhere to the rules and restrictions of any legitimate program. For example, eBay Motors’ VPP is a legitimate program whose name is commonly misused by these criminals.

The VPP is not applicable to transactions that originate outside of eBay Motors, and it prohibits wire-transfer payments. Nevertheless, criminals often promise eBay Motors VPP coverage for non-eBay Motors’ purchases and instruct victims to pay via Western Union or MoneyGram.

In a new twist, criminals use a live-chat feature in e-mail correspondence and electronic invoices. As live-chat assistants, the criminals answer victims’ questions and assure them the deals are safe, claiming that safeguards are in place to reimburse buyers for any loss. The criminals falsely assert that their sales are protected by liability insurance coverage up to $50,000.

Automotive shoppers should exercise due diligence before engaging in transactions to purchase vehicles advertised online. In particular, shoppers should be cautious of the following situations:

Sellers who want to move the transaction from one platform to another (for example, from Craigslist to eBay Motors).
Sellers who claim that a buyer protection program offered by a major Internet company covers an auto transaction conducted outside that company’s site.
Sellers who push for speedy completion of the transaction and request payments via quick wire transfer payment systems.
Sellers who refuse to meet in person, or refuse to allow the buyer to physically inspect the vehicle before the purchase.
Transactions in which the seller and vehicle are in different locations. Criminals often claim to have been transferred for work reasons, deployed by the military, or moved because of a family circumstance, and could not take the vehicle with them.
Vehicles advertised at well below their market value. Remember, if it looks too good to be true, it probably is.

If you have witnessed this behavior or fallen victim to this type of scam, please file a complaint with the FBI’s Internet Crime Complaint Center, www.ic3.gov.

Robber wanted by the FBI

2011-08-12T05:04:00.000-07:00

Bank of America robber wanted by the FBI

2011-08-03T16:47:00.000-07:00

The Bank of America branch at 3215 North Lincoln Avenue, Chicago, Illinois, was robbed today around 9:06 AM by a lone white male (photo attached). The robber entered the bank, approached the teller counter, announced a robbery, and threatened harm if his demands for cash were not met. He was given an undisclosed amount of money and fled the bank on foot, direction not known. No weapon was observed. There were no injuries reported as a result of this robbery. Agents are currently on the scene.

Witnesses described him as being 50 – 60 years of age, 5’9” – 5’10” tall, 200 lbs., mustache, wearing a dark t-shirt and orange camouflage hunting cap.

If anyone has any information regarding this robbery, please contact the Chicago Office of the FBI at 312/421-6700 or any local law enforcement agency.

Additional information about this and other unsolved Chicago area bank robbery cases, including downloadable photos, are available at the Bandit Tracker Chicago website at www.bandittrackerchicago.com.

Rolling Meadows bank robber wanted by the FBI

2011-08-03T16:44:00.000-07:00

The FBI is looking for the public’s help in trying to identify and locate the individual depicted in the attached photos, who we believe may be responsible for robbing the Chase Bank branch at 2600 Kirchoff Road, Rolling Meadows, IL, at around 2:00 PM on Thursday, July 28, 2011.

This individual walked into the bank, approached the teller counter, and orally announced a robbery. He implied he had a weapon, but none was observed. He walked out of the bank with an undisclosed amount of cash, direction not known. There were no injuries reported as a result of this robbery.

According to witnesses, the robber is described as a white male, mid-40’s, 5’11” – 6’ tall, thin build, wearing a blue plaid flannel shirt, grey hoodie, black bandana over his face, facial hair, blue jeans, and cloth work gloves.

If anyone has any information regarding this robbery, please contact the Chicago Office of the FBI at 312/421-6700 or any local law enforcement agency.

Daniel Gheorghe and Ionel Cristian Popa INDICTED FOR ATM BANK THEFT USING “DOCTORED” DUNKIN’ DONUTS GIFT CARDS

2011-08-03T11:10:00.000-07:00

Queens, DA's Office: Queens District Attorney Richard A. Brown today announced that two Romanian nationals in the United States on journalism visas have been indicted on charges of stealing more than $17,700 from a Chase bank in Hollis, Queens, by rapidly performing multiple unauthorized withdrawals at the bank’s automated teller machines using scores of Dunkin’ Donut gift cards that had been reencoded with stolen bank account information.
District Attorney Brown said, “Instead of going on a run for coffee and doughnuts with their
gift cards, the defendants are instead accused of going to the bank and using its ATMs as their
personal slot machines, cashing out large sums of money with each use of their ‘doctored’ Dunkin’
Donut gift cards.”
The District Attorney identified the defendants as Daniel Gheorghe and Ionel Cristian Popa,
both 33 with no known addresses in the United States. The defendants were arraigned on Thursday,
July 28, 2011, in Queens County Supreme Court in Kew Gardens, Queens, on a 70-count indictment
charging each of them with one count of third-degree grand larceny, one count of third-degree
criminal possession of stolen property, sixty-six counts of second-degree criminal possession of a
forged instrument, and two counts of first-degree scheme to defraud. The defendants, who each face
up to seven years in prison on each of the 66 counts of second-degree criminal possession of a forged
instrument if convicted, were ordered held on $150,000 bail each (with a bail sufficiency hearing)
and to return to court on August 23, 2011.
District Attorney Brown said that, according to the indictment, Gheorghe and Popa were
observed by police in the vestibule of the Chase bank branch, located at 205-19 Hillside Avenue, on
the evening of March 31, 2011, rapidly performing multiple unauthorized transactions at the bank’s
ATMs using Dunkin’ Donuts rechargeable gift cards that had been re-encoded with stolen account
information belonging to various banks – including Chase Bank, Bank of America, Citibank, HSBC,
Maestro, Nuvision Federal Credit Unit and US Bank National Association. After each transaction,
the defendants allegedly jammed large amounts of cash – mostly twenty-dollar bills – in the pockets
of their clothing.
At the time of their arrest, police officers assigned to the New York City Police Department’s
107th Precinct allegedly seized $17,703 in stolen funds and 66 Dunkin’ Donut gift cards from the
defendants’ persons and from their vehicle.
- 2 -
District Attorney Brown explained that a Dunkin’ Donuts gift card is marked with a sixteendigit
vendor account number. According to the criminal charges, none of the sixteen digit account
numbers displayed on any of the seized cards matched the account numbers encoded on the cards’
magnetic strips.
The District Attorney said that police were summoned to the location by investigators from
JPMorgan Chase, which proactively protects the personal and account information of its clients
against identity thieves.
District Attorney Brown thanked JPMorgan Chase and Dunkin’ Brands, Inc. (the parent
company of Dunkin’ Donuts), for their assistance in the investigation. The arrest was made by
Police Officer Frank Caruso, of the NYPD’s 107th Precinct.
The investigation was conducted by Detective Robert Cimino, of the New York City Police
Department’s Identity Theft Squad, under the supervision of Sergeant Barry Neiss and Lieutenant
Ruperto Aguilar and the command of Deputy Inspector Gregory T. Antonsen, of the Financial
Crimes Task Force, and the overall supervision of Deputy Chief Jeremiah Quinlan, Commander of
the Special Investigations Division, and Chief Phil T. Pulaski, of the Detectives Bureau.
The District Attorney noted that the investigation was continuing.
Assistant District Attorney Morgan A. Goulet, of the District Attorney’s Economic Crimes
Bureau, is prosecuting the case under the supervision of Gregory C. Pavlides, Bureau Chief,
Christina Hanophy, Deputy Chief, and under the overall supervision of Executive Assistant District
Attorney for Investigations Peter A. Crusco and Deputy Executive Assistant District Attorney for
Investigations Linda M. Cantoni.
It should be noted that an indictment is merely an accusation and that a defendant is
presumed innocent until proven guilty.

SIXTEEN INDIVIDUALS ARRESTED IN THE UNITED STATES FOR ALLEGED ROLES IN CYBER ATTACKS

2011-07-19T15:00:00.000-07:00

More than 35 Search Warrants Executed in United States, Five Arrests in Europe
as Part of Ongoing Cyber Investigations

WASHINGTON - Fourteen individuals were arrested today by FBI agents on charges related to their alleged involvement in a cyber attack on PayPal’s website as part of an action claimed by the group “Anonymous,” announced the Department of Justice and the FBI. Two additional defendants were arrested today on cyber-related charges.

The 14 individuals were arrested in Alabama, Arizona, California, Colorado, the District of Columbia, Florida, Massachusetts, Nevada, New Mexico and Ohio on charges contained in an indictment unsealed today in the Northern District of California in San Jose. In addition, two individuals were arrested on similar charges in two separate complaints filed in the Middle District of Florida and the District of New Jersey. Also today, FBI agents executed more than 35 search warrants throughout the United States as part of an ongoing investigation into coordinated cyber attacks against major companies and organizations. Finally, the United Kingdom’s Metropolitan Police Service arrested one person and the Dutch National Police Agency arrested four individuals today for alleged related cyber crimes.

According to the San Jose indictment, in late November 2010, WikiLeaks released a large amount of classified U.S. State Department cables on its website. Citing violations of the PayPal terms of service, and in response to WikiLeaks’ release of the classified cables, PayPal suspended WikiLeaks’ accounts so that WikiLeaks could no longer receive donations via PayPal. WikiLeaks’ website declared that PayPal’s action “tried to economically strangle WikiLeaks.”

The San Jose indictment alleges that in retribution for PayPal’s termination of WikiLeaks’ donation account, a group calling itself Anonymous coordinated and executed distributed denial of service (DDoS) attacks against PayPal’s computer servers using an open source computer program the group makes available for free download on the Internet. DDoS attacks are attempts to render computers unavailable to users through a variety of means, including saturating the target computers or networks with external communications requests, thereby denying service to legitimate users. According to the indictment, Anonymous referred to the DDoS attacks on PayPal as “Operation Avenge Assange.”

The defendants charged in the San Jose indictment allegedly conspired with others to intentionally damage protected computers at PayPal from Dec. 6, 2010, to Dec. 10, 2010.

The individuals named in the San Jose indictment are: Christopher Wayne Cooper, 23, aka “Anthrophobic;” Joshua John Covelli, 26, aka “Absolem” and “Toxic;” Keith Wilson Downey, 26; Mercedes Renee Haefer, 20, aka “No” and “MMMM;” Donald Husband, 29, aka “Ananon;” Vincent Charles Kershaw, 27, aka “Trivette,” “Triv” and “Reaper;” Ethan Miles, 33; James C. Murphy, 36; Drew Alan Phillips, 26, aka “Drew010;” Jeffrey Puglisi, 28, aka “Jeffer,” “Jefferp” and “Ji;” Daniel Sullivan, 22; Tracy Ann Valenzuela, 42; and Christopher Quang Vo, 22. One individual’s name has been withheld by the court.

The defendants are charged with various counts of conspiracy and intentional damage to a protected computer. They will make initial appearances throughout the day in the districts in which they were arrested.

In addition to the activities in San Jose, Scott Matthew Arciszewski, 21, was arrested today by FBI agents on charges of intentional damage to a protected computer. Arciszewski is charged in a complaint filed in the Middle District of Florida and made his initial appearance this afternoon in federal court in Orlando.

According to the complaint, on June 21, 2011, Arciszewski allegedly accessed without authorization the Tampa Bay InfraGard website and uploaded three files. The complaint alleges that Arciszewski then tweeted about the intrusion and directed visitors to a separate website containing links with instructions on how to exploit the Tampa InfraGard website. InfraGard is a public-private partnership for critical infrastructure protection sponsored by the FBI with chapters in all 50 states.

Also today, a related complaint unsealed in the District of New Jersey charges Lance Moore, 21, of Las Cruces, N.M., with allegedly stealing confidential business information stored on AT&T’s servers and posting it on a public file sharing site. Moore was arrested this morning at his residence by FBI agents and is expected to make an initial appearance this afternoon in Las Cruces federal court. Moore is charged in with one count of accessing a protected computer without authorization.

According to the New Jersey complaint, Moore, a customer support contractor, exceeded his authorized access to AT&T’s servers and downloaded thousands of documents, applications and other files that, on the same day, he allegedly posted on a public file hosting site that promises user anonymity. According to the complaint, on June 25, 2011, the computer hacking group LulzSec publicized that they had obtained confidential AT&T documents and made them publicly available on the Internet. The documents were the ones Moore had previously uploaded.

The charge of intentional damage to a protected computer carries a maximum penalty of ten years in prison and a $250,000 fine. Each count of conspiracy carries a maximum penalty of five years in prison and a $250,000 fine.

An indictment and a complaint merely contain allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

To date, more than 75 searches have taken place in the United States as part of the ongoing investigations into these attacks.

These cases are being prosecuted by Assistant U.S. Attorneys in the U.S. Attorneys’ Offices for the Northern District of California, Middle District of Florida and the District of New Jersey. The Criminal Division’s Computer Crime and Intellectual Property Section also has provided assistance.

Today’s operational activities were done in coordination with the Metropolitan Police Service in the United Kingdom and the Dutch National Police Agency. The FBI thanks the multiple international, federal and domestic law enforcement agencies who continue to support these operations.

President and Chief Operating Officer of Money Service Company Sentenced to 11 and Five Years in Prison

2011-07-15T19:46:00.001-07:00

PREET BHARARA, the United States Attorney for the Southern District of New York, JANICE K. FEDARCYK, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and CHRISTY L. ROMERO, the Acting Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), announced that ROBERT EGAN, the president of Mount Vernon Money Center (“MVMC”), and BERNARD McGARRY, the chief operating officer of MVMC, were sentenced today in Manhattan federal court to 11 and five years in prison for their roles in defrauding MVMC clients, including banks that had received TARP funds, universities, and hospitals, out of over $60 million that had been entrusted to MVMC. EGAN, 65, of Bedford Corners, New York, and McGARRY, 51, of Yonkers, New York, both previously pled guilty to one count of conspiracy to commit bank and wire fraud and six counts of bank fraud before U.S. District Judge JOHN F. KEENAN who imposed today’s sentences.

Manhattan U.S. Attorney PREET BHARARA stated: “Robert Egan and Bernard McGarry used the Mount Vernon Money Center vaults, containing tens of millions of dollars of other people’s money they had pledged to safeguard, as their own personal ATM machines. The stiff punishments imposed on them today should send a clear message to banking professionals thinking about violating the trust of their clients: we will uncover your fraud and we will send you to jail. I applaud our partners, the FBI and SIGTARP, for their extraordinary efforts in uncovering this complex and brazen fraud.”
FBI Assistant Director-in-Charge JANICE K. FEDARCYK stated: “Egan and McGarry engaged in a long-term scheme to misuse customers’ money and engaged in repeated deception to conceal their theft. Essentially, they stole customers’ money and lied to cover it up. These were clear violations of their professional responsibilities, and the sentences handed down reflect this.”
SIGTARP Acting Special Inspector General CHRISTY L. ROMERO stated: “The American taxpayers became shareholders in hundreds of banks that received TARP funds. SIGTARP is committed to protecting the taxpayers’ investment. Egan and McGarry defrauded TARP recipient banks. As the court stated today, this was simply a case of robbing Peter to pay Paul. Today’s sentencings of 11 years’ imprisonment for Egan and five years’ imprisonment for McGarry make clear that criminals who defraud TARP recipients will pay for their crimes. SIGTARP will continue to work tirelessly with the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and its other law enforcement partners to ensure that those who fraudulently put taxpayer money at risk will be brought to justice.”
According to the indictment and statements made during various proceedings in this case:
MVMC engaged in various cash management businesses, including replenishing cash in over 5,300 Automated Teller Machines (“ATMs”) owned by banks and other financial institutions. In addition, the company provided armored car services to banks, financial institutions, and retailers, through a subsidiary called Armored Money Services (“AMS”). MVMC also provided payroll services to various employers, including hospitals and universities, which permitted employees to cash their paychecks on their employers’ premises. In connection with these businesses, MVMC owned and operated several cash vaults, in which MVMC and its affiliated businesses stored and processed cash collected from and distributed to its clients, and other cash depositories such as the Federal Reserve Bank.
From at least 2005 through February 2010, EGAN and McGARRY solicited and collected hundreds of millions of dollars from the company’s clients, based in part on the representations that they would not commingle clients’ funds or use the funds for purposes other than those specified in the various contracts between MVMC and its clients. In fact, these representations were false, and EGAN and McGARRY misappropriated tens of millions of dollars of MVMC’s clients’ funds.
The defendants engaged in a practice known as “playing the float.” More specifically, MVMC was entrusted on a weekly basis to hold tens of millions of dollars for its clients for specific business purposes for a specified period of time. Relying upon the continual influx of funds, EGAN and McGARRY misappropriated the clients’ funds for their and MVMC’s own use, to cover operating expenses of the MVMC operating entities, to repay prior obligations to clients, or for their own personal enrichment.
The defendants’ scheme involved outright deception. For example, when bank customers did audits of MVMC’s vaults to ensure that their money was properly segregated and safeguarded by the company, McGARRY, at EGAN’s direction, moved the money around inside the vault in advance of the customer’s inspection, so as to make it appear that MVMC was properly maintaining the customers’ funds when it was not. In so doing, the defendants concealed from customers the fact that their money was being used to fund MVMC’s operating shortfalls and to enrich the defendants at the customers’ expense.
As a result of the fraudulent commingling and misappropriation of customer funds described above, in February 2010, though MVMC had been entrusted with over $85 million by its clients, it only held approximately $25 million in cash in its vaults and bank accounts.
During his guilty plea, EGAN admitted that he had engaged in “deceptive” practices with respect to MVMC’s customers, and admitted to misusing and commingling MVMC client funds, in violation of MVMC’s obligations to its customers. McGARRY also admitted that he and EGAN “played the float” and that they used customer money to cover operating shortfalls in the businesses, in violation of contractual obligations to keep their customers’ money segregated.
In addition to the prison terms, Judge KEENAN sentenced both EGAN and McGARRY to three years of supervised release. For each defendant, he also imposed an order of forfeiture in the amount of $70 million and a $700 special assessment. Restitution orders will be determined at a later date.
Mr. BHARARA praised the investigative work of the FBI and SIGTARP.
This case was brought in coordination with President BARACK OBAMA’s Financial Fraud Enforcement Task Force, on which Mr. BHARARA serves as Co-Chair of the Securities and Commodities Fraud Working Group and Mr. BAROFSKY serves as Co-Chair of the Rescue Fraud Working Group. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900 or Wendy.Olsen@usdoj.gov. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html on the Internet.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys ANTONIA M. APPS and DAVID MILLER are in charge of the prosecution.

Former Chairman of Taylor, Bean & Whitaker Sentenced to 30 Years in Prison

2011-07-15T19:30:00.001-07:00

WASHINGTON—The former chairman and owner of Taylor, Bean & Whitaker (TBW) was sentenced today to 30 years in prison and ordered to forfeit approximately $38.5 million for his role in a more than $2.9 billion fraud scheme that contributed to the failure of TBW and Colonial Bank. At one time, TBW was one of the largest privately held mortgage lending companies in the United States and Colonial Bank was one of the 25 largest banks in the United States.

Lee Bentley Farkas was sentenced today by U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia. The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; Acting Special Inspector General Christy Romero for the Troubled Asset Relief Program (SIGTARP); Assistant Director in Charge James W. McJunkin of the FBI’s Washington Field Office; Michael P. Stephens, Deputy Inspector General of the Department of Housing and Urban Development (HUD-OIG); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); Steve A. Linick, Inspector General of the Federal Housing Finance Agency (FHFA-OIG); and Victor S. O. Song, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI).

On April 19, 2011, after a 10-day trial, a federal jury found Farkas, 58, of Ocala, Fla., guilty of 14 counts, including one count of conspiracy to commit bank, wire, and securities fraud; six counts of bank fraud; four counts of wire fraud; and three counts of securities fraud. According to court documents and evidence presented at trial, Farkas and his co-conspirators engaged in a scheme that misappropriated more than $1.4 billion from Colonial Bank’s Mortgage Warehouse Lending Division (MWLD) in Orlando, Fla., and approximately $1.5 billion from Ocala Funding, a mortgage lending facility controlled by TBW. Farkas and his co-conspirators misappropriated this money to, among other things, cover TBW’s operating expenses. The fraud scheme contributed to the failures of Colonial Bank and TBW.

Six other individuals have pleaded guilty and have been sentenced for their roles in the fraud scheme. Catherine Kissick, a former senior vice president of Colonial Bank and head of the MWLD was sentenced to eight years in prison. Desiree Brown, the former treasurer of TBW, was sentenced to six years in prison. Paul Allen, the former chief executive officer of TBW, was sentenced to 40 months in prison. Ray Bowman, the former president of TBW, was sentenced to 30 months in prison. Teresa Kelly, a former operations supervisor for Colonial Bank’s MWLD, and Sean Ragland, a former senior financial analyst at TBW, were each sentenced to three months in prison.

The Securities and Exchange Commission (SEC) has civil actions pending against Farkas, Brown, Kissick, Kelly, and Allen in the Eastern District of Virginia.

“Lee Farkas’ boundless greed ultimately led not to a life of luxury, but to a prison cell,” said Assistant Attorney General Breuer. “Mr. Farkas orchestrated a fraud of staggering proportions, the effects of which are still being felt by the thousands of former employees of TBW and Colonial Bank, and shareholders of Colonial BancGroup. From a $28 million private jet and vacation homes in Maine and Key West, to expensive antique cars and restaurants, Mr. Farkas plundered his company and Colonial Bank to prop up his failing business and to feed his ostentatious lifestyle. When greed and risky behavior lead individuals to break the law, we will do everything in our power to investigate, prosecute and punish those responsible.”

“Today’s sentence ensures that Lee Farkas will spend the rest of his life in prison and is just punishment for a man who pulled off one the largest bank frauds in history,” said U.S. Attorney MacBride. “Between 2007 and August 2009, as the country faced one of the worst financial crises in recent history—largely sparked by fraudulent mortgage-related transactions—Farkas ramped up his scheme to rip off banks through sales of fake mortgage assets and by double-and triple-selling mortgage loans. By causing the failure of Colonial Bank and TBW, two significant players in the mortgage market, Farkas’s scheme affected those at the heart of the financial crisis, including major financial institutions, government agencies, taxpayers, and employees and investors.”

According to court documents and evidence presented at trial, the fraud scheme began in 2002, when Farkas and his co-conspirators ran overdrafts in TBW bank accounts at Colonial Bank in order to cover TBW’s cash shortfalls. Farkas and his co-conspirators at TBW and Colonial Bank transferred money between accounts at Colonial Bank to hide the overdrafts. Evidence presented at trial showed that after the overdrafts grew to more than $100 million, Farkas and his co-conspirators covered up the overdrafts and operating losses by causing Colonial Bank to purchase from TBW over time more than $1.5 billion in what amounted to worthless mortgage loan assets, including loans that TBW had already sold to other investors and fake pools of loans purportedly being formed into mortgage-backed securities. Farkas and his co-conspirators caused Colonial Bank to report these assets on its books at face value when in fact the mortgage loan assets were worthless. By August 2009, approximately $500 million in fake pools of loans remained on Colonial Bank’s books.

According to court documents and evidence presented at trial, Farkas and his co-conspirators at TBW also misappropriated more than $1.5 billion from Ocala Funding. Ocala Funding sold asset-backed commercial paper to financial institution investors, including Deutsche Bank and BNP Paribas Bank. Ocala Funding, in turn, was required to maintain collateral in the form of cash and/or mortgage loans at least equal to the value of outstanding commercial paper.

Evidence presented at trial established that Farkas and his co-conspirators diverted cash from Ocala Funding to TBW to cover its operating losses, and as a result, created significant deficits in the amount of collateral Ocala Funding possessed to back the outstanding commercial paper. To cover up the diversions, the conspirators sent false information to Deutsche Bank, BNP Paribas Bank and other financial institution investors and led them to falsely believe that they had sufficient collateral backing the commercial paper they had purchased. When TBW failed in August 2009, the banks were unable to redeem their commercial paper for full value. Farkas and his co-conspirators also caused approximately $900 million in loans to be held on Colonial Bank’s books when in fact the loans had already been sold to Freddie Mac and other investors.

According to court documents and evidence at trial, in the fall of 2008, Colonial Bank’s holding company, Colonial BancGroup Inc., applied for $570 million in taxpayer funding through the Capital Purchase Program (CPP), a sub-program of the U.S. Treasury Department’s Troubled Asset Relief Program (TARP). In connection with the application, Colonial BancGroup submitted financial data and filings that included materially false information related to mortgage loans and securities held by Colonial Bank as a result of the fraudulent scheme perpetrated by Farkas and his co-conspirators. Colonial BancGroup’s TARP application was conditionally approved for $553 million contingent on the bank raising $300 million in private capital.

Evidence at trial established that Farkas and his co-conspirators falsely informed Colonial BancGroup that they had identified sufficient investors to satisfy the TARP capital contingency. Farkas and his TBW co-conspirators diverted $25 million from Ocala Funding into an escrow account and falsely represented that the money was on behalf of capital raise investors. Farkas and his TBW co-conspirators caused Colonial BancGroup to issue a false and misleading financial statement to the SEC and a press release announcing the success of the capital raise. Ultimately, Colonial BancGroup did not receive any TARP funds.

Evidence at trial also established that Farkas and his co-conspirators caused Colonial BancGroup to file materially false financial data with the SEC regarding its assets in annual reports contained in Forms 10-K and quarterly filings contained in Forms 10-Q. Colonial BancGroup’s materially false financial data included overstated assets for mortgage loans that had little to no value that Farkas and his co-conspirators caused Colonial Bank to purchase. Farkas and his co-conspirators also caused TBW to submit materially false financial data to the Government National Mortgage Association (Ginnie Mae) in order to extend TBW’s authority to issue Ginnie Mae mortgage-backed securities.

According to court documents and evidence presented at trial, Farkas also personally misappropriated more than $38.5 million from TBW and Colonial Bank to finance his lifestyle, including purchasing multiple homes, scores of cars, a jet and sea plane, and restaurants and bars.

In August 2009, the Alabama State Banking Department, Colonial Bank’s regulator, seized the bank and appointed the FDIC as receiver. Colonial BancGroup also filed for bankruptcy in August 2009.

“During the housing and financial crisis, while many American taxpayers struggled just to keep their heads above water, Farkas lived in the lap of luxury using the more than $38 million that he stole from TBW and Colonial Bank,” said Acting Inspector General Romero of SIGTARP. “Farkas used the stolen money to buy a jet, expensive antique and collector cars including a Rolls Royce, and multiple vacation homes, all while masterminding a fraud of stunning scope. His fraud began to unravel when he tried to obtain TARP funds to fill the billions of dollars of holes at TBW and Colonial Bank. He failed and his fraud was discovered by SIGTARP and its law enforcement partners. Shameless in his duping of investors and regulators, he attempted to deceive taxpayers. The judge’s sentence today makes it clear that Farkas will leave his lavish lifestyle behind and spend his golden years locked up in prison.”

“Through his scheme, Lee Farkas and his co-conspirators victimized innocent people and in the process their actions led to the collapse of two major U.S. financial institutions, no doubt a contributing factor to the nation’s financial downturn,” said Assistant Director McJunkin. “Today’s sentence does not make the victims whole, but it does punish the major architect of these crimes.”

“Lee Farkas was the mastermind behind one of the largest fraud schemes in history involving a mortgage lending company. For more than eight years, Farkas perpetuated his scam to defraud banks, regulators and taxpayers,” said Deputy Inspector General Stephens of the HUD-OIG. “We remain firmly committed to rooting out fraud at all levels of an institution—from the bottom to the very top—and holding those who engage in such destructive activity ultimately accountable to the American people.”

“We are pleased to join our colleagues in announcing the sentencing of Lee Farkas, whose actions contributed to the failure of Colonial Bank, causing a $4.2 billion loss to the FDIC’s Deposit Insurance Fund,” said Inspector General Rymer of the FDIC-OIG. “We appreciate the collaborative relationships with law enforcement partners that led to the successful outcomes of this case, one of the largest bank fraud prosecutions of our time. We also acknowledge the efforts of our FDIC colleagues, who, acting in their receivership capacity, assisted the prosecution in unraveling the complexities of this fraud. The American public needs to know that those who undermine the integrity of the financial services system will be held accountable. We are committed to helping maintain confidence in the financial system, ensure the safety and soundness of FDIC-insured institutions, and protect the viability of the insurance fund.”

“In the midst of the worst housing finance crisis since the great depression, Lee Farkas led a scheme that defrauded Freddie Mac and, in turn, the American taxpayers who have invested over $63 billion in Freddie Mac to cover its losses,” said Inspector General Linick of the FHFA-OIG. “Today’s sentence makes it clear that mortgage-related fraud will not be tolerated.”

The case is being prosecuted by Deputy Chief Patrick Stokes and Trial Attorney Robert Zink of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Connolly and Paul Nathanson of the Eastern District of Virginia. This case was investigated by SIGTARP, FBI’s Washington Field Office, FDIC-OIG, HUD-OIG, FHFA-OIG and the IRS-CI. The department recognizes the substantial assistance of the SEC. The department also recognizes the assistance of the Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury.

This prosecution was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.StopFraud.gov.

Organized Romanian Criminal Groups Targeted by DOJ and Romanian Law Enforcement

2011-07-15T16:31:00.000-07:00

WASHINGTON—An ongoing Internet fraud scheme conducted by several networks of organized cyber criminals in Romania and the United States has been disrupted as a result of a series of law enforcement actions coordinated since 2010 between Romanian and U.S. law enforcement, including numerous arrests and searches that took place yesterday in Romania.
More than 100 individuals have been arrested and charged in Romania and judicial districts in the United States as a result of close cooperation between the Romanian General Inspectorate of Police, Directorate for Combating Organized Crime, the Romanian Directorate for Investigating Infractions of Organized Crime and Terrorism (DIICOT), the Romanian Intelligence Service (SRI), the General Directorate of Jandarmeria in Romania (GIJR) and the FBI, the U.S. Secret Service, the Computer Crime and Intellectual Property Section (CCIPS) in the Justice Department’s Criminal Division, and the U.S. Attorneys’ Offices for the Southern District of Florida, the Western District of Pennsylvania and the Eastern District of Missouri.

Yesterday, Romania law enforcement executed 117 searches targeting more than 100 individuals allegedly involved in the fraudulent scheme involving fake sales of merchandise through the Internet. Romanian law enforcement targeted individuals organizing and perpetrating this fraud from Romania.
According to U.S. court documents, in many of the cases, conspirators located in Romania would post items for sale such as cars, motorcycles and boats on Internet auction and online websites. They would instruct victims located in the United States and elsewhere who wanted to buy those items to wire transfer the purchase money to a fictitious name they claimed to be an employee of an escrow company. Once the victim wired the funds, the co-conspirators in Romania would text information about the wire transfer to co-conspirators in the United States known as “arrows” to enable them to retrieve the wired funds. They would also provide the arrows with instructions as to where to send the funds after retrieval. The arrows in the United States would go to money transmitter service counters such as Western Union or MoneyGram International, provide false documents including passports and drivers’ licenses in the name of the recipient of the wire transfer, and obtain the funds. They would subsequently wire the funds overseas, typically to individuals in Romania, minus a percentage kept for their commissions. In some cases, co-conspirators in Romania also directed arrows to provide bank accounts in the United States where larger amounts of funds could be wired by victims of the fraud. The victims would not receive the items they believed they were purchasing.
The Romania investigation is being conducted in conjunction with ongoing criminal investigations in the United States that also have been targeting this criminal activity. Since May 2010, the FBI and the U.S. Attorney’s Office for the Southern District of Florida have arrested and prosecuted numerous individuals from Romania, Moldova and the United States allegedly involved in this fraud scheme. Vadim Gherghelejiu, 29, of Moldova; Anatolie Bisericanu, 25, of Moldova; Jairo Osorno, 22, of Surfside, Fla.; Jason Eibinder, 22, of Sunny Isles Beach, Fla.; and Ciprian Jdera, 25, of Romania, have been convicted in the Southern District of Florida of conspiracy to commit wire fraud.
A 21-count indictment returned in Miami on Feb. 22, 2011 charged Pedro Pulido, 41, of Pembroke Pines, Fla.; Ivan Boris Barkovic, 19, of Sunny Isles Beach; Beand Dorsainville, 20, of North Miami Beach, Fla.; Sergiu Petrov, aka “Serogia,” 27, of Moldova; Oleg Virlan, 32, of Moldova; Marian Cristea, 22, of Romania; and Andrian Olarita, 26, of Moldova, with conspiracy to commit wire fraud and substantive counts of wire fraud. Pulido, Barkovic, Dorsainville and Olarita have pleaded guilty to conspiracy to commit wire fraud. Petrov, Virlan and Cristea remain at large and are considered fugitives.
On July 8, 2011, Adrian Culda, 37, of Romania, was arrested and subsequently charged in a complaint filed in Miami with conspiracy to commit wire fraud as part of this alleged cyber crime activity. Tiberiu Zachiteanu, 19, of Romania, was also charged in the same complaint with conspiracy to commit wire fraud and was arrested on July 12, 2011.
An investigation conducted by the U.S. Attorney’s Office for the Western District of Pennsylvania led to the arrests of seven defendants, including one individual in Pittsburgh, three individuals in the Eastern District of Missouri, two individuals in Fort Bend County, Texas, and one individual in Kentucky. Marion Potcovaru, 30, of Romania, pleaded guilty on Feb. 2, 2011, to wire fraud related charges in the Western District of Pennsylvania. In St. Louis, the U.S. Attorney’s Office charged Augustin Prundurelu, 32, and Georgiana Andrei, 25, both of Romania, with forgery and passport fraud. Both defendants pleaded guilty and each were sentenced to six months in prison and ordered to pay restitution of $18,365. In addition, Sorin Mihai Madaian, 22, of Romania, pleaded guilty on May 23, 2011, in the Eastern District of Missouri to passport fraud charges. Victor Angelescu, 28, of Romania, was charged by the Commonwealth Attorney’s Office for the 27th Judicial Circuit of Kentucky with related wire fraud charges. In Fort Bend County, Texas, Klara Mirabela Rusu, 24, and Eduard Sorin Neacsu, 36, were arrested on June 3, 2011, by officers from the Houston Police Department and charged by Fort Bend and Harris County authorities with money laundering and making false statements to obtain property. Rusu was indicted by a Fort Bend County grand jury on July 11, 2011, and charged with the felony offenses of money laundering and making a false statement. Neacsu’s grand jury date is pending due to possible additional charges. Both individuals are currently detained.
According to court documents, detectives observed Rusu and Neacsu enter a WalMart store, where Rusu and Neacsu presented a MoneyGram voucher and false identifications to a store clerk. Rusu and Neascu received $2,890 through Western Union and Money Gram from a victim in another state who had wired the money in response to an Internet advertisement for merchandise, which the victim never received. Rusu and Neacsu were later arrested and a search of their room produced a large amount of U.S. currency, computers, printers, plastic for manufacturing false identifications, an exacto knife, multiple mobile phones and false identifications with Neacsu’s picture.
An indictment is merely an allegation, and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Internet fraud scheme has resulted in an estimated loss of more than $10 million from victims, including those in the United States. The full loss amount and identification of additional victims is ongoing.
Over the last 10 years, U.S. law enforcement authorities have strengthened ties with Romanian law enforcement authorities to address the rising threats posed by Romanian-based organized cyber criminal networks. To date, hundreds of defendants have been arrested and charged in the United States, Romania, and other countries as a result of this cooperation.
The Department of Justice International Organized Crime Intelligence and Operations Center (IOC-2) has provided support and assistance to these ongoing investigations. IOC-2 partners with various law enforcement agencies to combine data and produce actionable leads for investigators and prosecutors working nationwide to combat international organized crime. IOC-2 also coordinates the resulting multi-jurisdictional investigations and prosecutions with its member agencies, U.S. Attorneys’ Offices and foreign law enforcement authorities.
The ongoing investigations are being led by the FBI and the U.S. Secret Service. U.S. Immigrations and Custom Enforcement is participating in the investigation related to the Pittsburgh cases. The federal cases are being prosecuted by Assistant U.S. Attorneys from the U.S. Attorneys’ Offices for the Southern District of Florida, the Western District of Pennsylvania and the Eastern District of Missouri, with support from CCIPS.
Local law enforcement assisting in these prosecutions include the Medina County, Ohio, Sheriff’s Office; the London, Ky., Police Department; Memphis, Tenn., Airport Police; the Kirkwood, Mo., Police Department; the Fort Bend and Harris County, Texas, District Attorneys’ Offices; the Houston Police Department; the Hallandale Beach, Fla., Police Department; the Pembroke Pines Police Department; the Miami Gardens Police Department; the Sunny Isles Beach Police Department; the North Miami Beach Police Department and the Davie, Fla., Police Department.
Also assisting law enforcement were the FBI’s Internet Crime Complaint Center (IC3), Wal-Mart Stores, Western Union, MoneyGram International, the National Cyber-Forensics and Training Alliance (NCFTA) and Publix Grocery Stores.
Victims of Internet crime are encouraged to report evidence of fraudulent activity to the IC3 via www.ic3.gov.
###
11-926
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

FBI Latent Hit of the Year

2011-07-14T19:07:00.001-07:00

The FBI Latent Hit of the Year is awarded annually to an outstanding latent examiner or officer who solved a major violent crime by using the FBI's IAFIS database.

Adrian Ghighina, 33, was sentenced to 4 years in prison

2011-07-13T16:53:00.001-07:00

WASHINGTON—A Romanian man was sentenced today to 48 months in prison for his role in moving and hiding the illicit proceeds of an international fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Patrick J. Fitzgerald for the Northern District of Illinois and U.S. Attorney Ronald C. Machen Jr. for the District of Columbia.
Adrian Ghighina, 33, of Bucharest, Romania, was sentenced by U.S. District Judge Matthew F. Kennelly in Chicago. Ghighina pleaded guilty in February 2011 to one count each of wire fraud and conspiracy.
According to court documents, Ghighina, who entered the United States legally in late 2004, acted as a “money mule” in a complex Internet fraud conspiracy. Ghighina’s co-conspirators, many of whom are in Romania, created fraudulent online auctions for expensive items such as cars, motorcycles and RVs on websites such as eBay, Craigslist and AutoTrader.com.
Victims who responded to these fraudulent listings were directed, in some cases by e-mail or telephone, to transmit payment for the non-existent items using Western Union and bank wire transfers to accounts controlled by Ghighina.
Ghighina admitted that he moved from city to city, opening new accounts at various banks using false identification as part of the conspiracy. The victims never received the items for which they had paid. From approximately September 2005 until his arrest in October 2009 in Miami, Ghighina opened accounts and/or received funds in Illinois, the District of Columbia, Florida, New York, Arizona and elsewhere.
The sentence resolves two separate indictments against Ghighina, one from a federal grand jury in the Northern District of Illinois and a separate indictment from a federal grand jury in the District of Columbia. Ghighina also previously was convicted on related charges of wire and visa fraud in the Southern District of Florida and sentenced on those charges to 27 months in prison. Based on the plea agreement, the sentence imposed today will run concurrently with Ghighina’s sentence in the Florida case, for which he has already served 21 months in prison.
The Chicago case is being prosecuted by Assistant U.S. Attorney Brian Hayes with the Northern District of Illinois. The Washington case is being prosecuted by Special Assistant U.S. Attorney Joseph Springsteen for the District of Columbia. Mr. Springsteen also serves as a Trial Attorney with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Assistance on the Washington case was also provided by CCIPS Trial Attorneys Gavin Corn and Mysti Degani. The Criminal Division’s Office of International Affairs provided assistance in this matter. This case is being investigated by the Chicago and Washington Field Offices of the FBI, as well as the Chicago Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Bank robbery suspect wanted by the FBI in Indiana

2011-07-07T10:14:00.000-07:00

The below advisory was issued by the FBI Merrillville (Indianapolis ) Office. If anyone has any information regarding this robbery, please contact the office at 219/769-3719.

White/Male approximately 30 – 40 years of age, approximately 6 feet tall, heavy set, gray hair, dark goatee.

Clothing – Chicago Cubs baseball hat, sunglasses, white/blue or white/gray flannel shirt.

Bank robber walked into the 5/3^rd bank at the corner of Calumet and Broadmoor, in Munster. He waited at the counter and eventually approached the lone teller. Presented a black hand gun and demanded all the money. He was given dye packs and it appears the packs did go off.

Fled in a black or dark color, Honda or Hyundai, 4 door. Witnesses saw what may have been a license plate with a partial tag of A194611.

No injuries.

SUSPECT ARRESTED IN “NUNS ON THE RUN” BANK ROBBERY

2011-06-30T15:50:00.000-07:00

A 23-year old Chicago woman has been arrested and charged in connection with the armed robbery of the TCF Bank branch, located at 6410 West 127th Street in southwest suburban Palos Heights over the Memorial Day weekend.
Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) was joined by George T. Yott, Chief of the Palos Heights, Illinois Police Department (PHPD) in announcing the arrest of NAVAHCIA L. EDWARDS, whose last known address was in the 4000 block of West 115th Street. EDWARDS was arrested earlier today, without incident, by FBI special agents and officers of the PHPD at a residence in Lansing, Illinois.
EDWARDS was charged in a criminal complaint filed yesterday in U.S. District Court in Chicago with one count of Bank Robbery, which is a felony offense. According to the complaint, two robbers, one of whom was subsequently identified as EDWARDS, burst into the Palos Heights bank on May 29th, brandishing handguns and dressed in what witnesses described as black nun habits. They also had their faces concealed with masks of elderly women and wore gloves.
After securing the bank, the robbers forced the two bank employees on duty to the vault area, where they were ordered at gun point to open the vault. The robbers then placed in excess of $120,000 in bank funds into a small gym bag which they had brought with them. The robbers then tied up both bank employees with zip ties before fleeing the area in a waiting vehicle, believed to be a newer model Chevrolet sedan.
No shots were fired and no injuries were reported during the robbery but both bank employees were shaken by the experience.
Subsequent investigation by the FBI and PHPD developed evidence linking EDWARDS to the robbery, including the purchase of two “Nuns on the Run” costumes from an online party and novelty merchant and plastic Zip Ties from a local hardware store. The second individual involved in this robbery has not yet been identified and remains at-large.
EDWARDS appeared earlier today before U.S. Magistrate Judge Michael T. Mason in Chicago, at which time she was formally charged. EDWARDS was ordered held without bond, pending her next court appearance, which is scheduled for July 7th. Until then, she will be held at the Metropolitan Correctional Center (MCC) in Chicago. If convicted of the charge filed against her, EDWARDS faces a possible sentence of up to twenty (20) years in prison.

Dr. GAUTAM GUPTA wanted by the FBI for fraud

2011-06-17T22:58:00.001-07:00

Criminal charges alleging that the owner of a chain of medically supervised weight-loss clinics defrauded both a private health insurance company and the Illinois Medicaid program were filed earlier this week, announced Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI). Mr. Grant was joined by Hiram Grau, Director of the Illinois State Police and Lamont Pugh III, Special Agent-in-Charge of the Department of Health and Human Services – Office of Inspector General (HHS-OIG) in announcing the charges.
Dr. GAUTAM GUPTA, who owns and operates the Nutrition Clinic, with locations in Arlington Heights, Chicago, Naperville, Rockford and South Beloit, was charged with one count each of Mail Fraud, Health Care Fraud and Conspiracy, all of which are felony offenses, in a criminal complaint filed in U.S. District Court in Springfield.
The complaint alleges that Dr. GUPTA, or members of his staff acting at his direction, submitted claims to both the Blue Cross/Blue Shield Insurance Company and the Illinois Medicaid program for unnecessary procedures or procedures which were never performed. The complaint indicates that, during the period of June 2001 through January of 2010, the Nutrition Clinic was paid nearly $25 million for claims submitted on behalf of clinic patients.
Attempts to locate and apprehend Dr. GUPTA have thus far been unsuccessful. As such, he is now the subject of a nationwide manhunt which is being coordinated by the Chicago FBI. Dr. GUPTA, whose last known address was 1660 North Mulford Road in Rockford, is described as a white/male of Indian descent, 57 years of age, 5’5” tall, 160 pounds, graying black hair which is sometimes worn in a ponytail, and brown eyes.
Anyone recognizing Dr. Gupta or having any information about his current whereabouts is asked to call the Chicago FBI at (312) 421-6700.
This case was investigated jointly by the Chicago FBI, the Illinois State Police – Medicaid Fraud Control Bureau, and the HHS-OIG.
If convicted of the charges filed against him, Dr. Gupta faces a possible sentence of up to 35 years incarceration.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

Palos Heights TCF Bank branch was robbed by masked man

2011-05-30T18:38:00.000-07:00

The TCF Bank branch, located at 6410 West 127th Street in Palos Heights, was robbed in a takeover style robbery yesterday afternoon at approximately 2:00 pm. Photos of the robbers and their getaway vehicle are attached. It appears that the offenders are wearing nun masks and habits similar to the ones used by bank robbers from the recent film “The Town”.
Investigation is still ongoing. No arrests have been made and no charges have been filed.
If you have information regarding this case please contact the local authorities.

ELVIR SINIKOVIC CHARGED IN BANK EMBEZZLEMENT SCHEME

2011-04-08T10:36:00.000-07:00

A suburban Chicago man employed as an Escrow Administrator with the Chicago Title and Trust Company (CTTC), was arrested earlier this week after being charged with embezzling $50,000 from an escrow account of the Signature Bank, held by the CTTC.
ELVIR SINIKOVIC, age 33, of 720 Wellington Avenue in Elk Grove Village, Illinois, was arrested at his residence early Wednesday morning, without incident, by Special Agents from the Federal Bureau of Investigation (FBI). Special Agents from the Department of Housing and Urban Development’s, Office of Inspector General (HUD/OIG) and the Criminal Investigations Division of the Internal Revenue Service (IRS) assisted in the arrest. The arrest was announced today by Robert D. Grant, Special Agent-in-Charge of the Chicago office of the FBI.

SINIKOVIC was charged in a criminal complaint filed Wednesday afternoon in U.S. District Court in Chicago with one count of Embezzlement of Bank Funds, which is a felony offense. According to the complaint, SINIKOVIC authorized a wire transfer of $50,000 from the escrow account of CT&T Construction to an account of a third party held at the Chase Bank. The funds transfer was made for work performed on a construction project. However, subsequent investigation determined that the holder of this account had not performed any work in connection with the construction project and was not entitled to any funds. Further, the account holder admitted that he was instructed by SINIKOVIC to convert $40,000 of the transferred funds to a cashier’s check, which was allegedly used by SINIKOVIC’s wife to purchase commercial real estate from CT&T Construction, while the remaining $10,000 was allegedly given to SINIKOVIC in cash.
Though not charged with any additional violations, SINIKOVIC is suspected of having made in excess of 100 similar unauthorized disbursements, totaling in excess of $1.5 million, from construction escrow accounts held at CTTC, through checks and wire transfers.
SINIKOVIC appeared before Magistrate Judge Jeffrey T. Gilbert in Chicago, late Wednesday, at which time he was formally charged. SINIKOVIC was ordered held without bond, pending his next court appearance, which is scheduled for later today. If convicted of the charge filed against him, SINKOVIC faces a possible sentence of up to thirty (30) years incarceration.

American Airlines Flight Diverted to Chicago

2011-04-07T10:05:00.000-07:00

FBI Chicago announced today that last night, American Airlines flight 48, non-stop service from Dallas, Texas to Paris, France was diverted to Chicago O’Hare International airport due to an unruly passenger. According to witnesses, the passenger was intoxicated and became disruptive and combative with the flight crew. Air Marshal’s, who were on board the flight, intervened and the male passenger, identified only as a French national, was subdued.

The plane landed safely in Chicago at approximately 8:00 PM and the passenger was removed from the flight. No injuries were reported during the incident and the safe operation of the plane was not jeopardized.

The disruptive passenger was questioned then released with no charges filed.

NINE PEOPLE CHARGED IN SOUTHEAST SIDE DRUG PROBE

2011-03-03T20:36:00.000-08:00

Eight individuals, all suspected members or associates of the Almighty Latin Kings Nation (ALKN) street gang, operating primarily on Chicago’s southeast side and northwest Indiana, were arrested today by agents and officers assigned to the FBI’s Joint Task Force on Gangs, culminating a nearly two-year long investigation which targeted illicit drug sales. One additional defendant remains at-large and is now the subject of a nationwide manhunt.

The arrests were announced today by Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Terry G. Hillard, interim Superintendent of the Chicago Police Department (CPD).
Four of those arrested were charged in a criminal complaint filed in U.S. District Court in Chicago, which was unsealed earlier today, and which charged the current Chicago residents with conspiracy and distribution of a controlled substance, both of which are felony offenses. Five others were charged with violating state drug or firearms laws in charges filed in Cook County Circuit Court.
The federal complaint identifies PAUL JASSO, also known as “Guero”, age 42, of 9708 South Ewing in Chicago, as a ranking member of the ALKN who headed up an independent drug distribution operation that distributed user quantities of illegal narcotics, primarily powder cocaine, in various Chicago neighborhoods, including the Bush, Hegewisch, and the East Side, along with Calumet City, Illinois and Hammond and Whiting, Indiana.
PAULINO BOSANKO, age 23, of 13243 South Brandon in Chicago; SANDRA BARRON, age 38, and DAVID RUIZ, age 52, both of 9832 South Avenue L in Chicago, were also charged along with JASSO, and are identified as confederates in his drug operation.
Those arrested on state charges, all of who are alleged to have worked for JASSO, are identified as JOSEPH BARRON, age 27, of 8357 South Baltimore, Chicago; JOSEF NERI, age 28, of 8357 South Baltimore, Chicago; CHARLES SCHILL, age 20, 10517 South Green Bay Avenue, Chicago; and LORETTA FLORES, age 44, of 787 Buffalo, Calumet City, Illinois.
A fifth state defendant, identified as EDWIN TEVENAL, Jr., age 30, of 10849 South Avenue H, Chicago, avoided capture and remains at-large.
This investigation, which was code named “Operation King Gone”, was investigated by the Chicago FBI’s Joint Task Force on Gangs, which is comprised of FBI special agents and officers from the Chicago Police Department, Gang Investigations Unit, and the High Intensity Drug Trafficking Area (HIDTA). The Cook County State’s Attorney’s office also assisted with the investigation.
Investigators utilized court authorized electronic surveillance of several telephones, used by the defendants in connection with their drug operation, along with controlled purchases of illegal narcotics, both of which helped lead to the filing of the charges announced today. During the course of the investigation, eight weapons were recovered.
All of those arrested on federal charges are scheduled to appear before Magistrate Judge Morton Denlow in Chicago, at 3:00 pm today, at which time they will be formally charged. If convicted of the charges filed against them, all four face a mandatory minimum sentence of ten (10) years’ incarceration to a maximum of life in prison.
Those arrested on state charges are scheduled to appear in bond court at dates and times to be determined. If convicted, they face possible sentences of up to thirty (30) years in the Illinois Department of Corrections.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

FBI Chicago is hiring foreign language speakers

2011-03-01T10:28:00.000-08:00

The Chicago office of the Federal Bureau of Investigation (FBI) will be hosting a Foreign Language Career Fair on Saturday, March 12, 2011. The Fair will be held at the offices of the Illinois Medical District, located at 2100 W Harrison Street in Chicago. Persons interested in a Contract Linguist position with the FBI are invited to attend anytime between 9:00 AM and 4:00 PM. Free parking is available at the facility and at the southwest corner of Leavitt and Harrison Streets.

The FBI is looking to add to its Foreign Language Program, individuals fluent in Chinese (all dialects), Korean, Turkish, Arabic, Farsi, Urdu, Somali, Spanish and Hebrew. However, positions are available for persons with any foreign language fluency. Applicants need to have United States Citizenship, as well as a high level of fluency in English along with foreign language(s) ability. Applicants are asked to bring a resume and be prepared for an on-site foreign language assessment interview.
As a vital partner in today’s law enforcement and intelligence communities, the FBI continues its mission to safeguard America and its people. The FBI’s expanding role continues to create many new opportunities for linguists in a growing number of languages.
Contract Linguists, through their language expertise, help in the continuing effort against cyber crime, terrorism, foreign counterintelligence, corruption, kidnapping, civil rights violations and other crimes under FBI jurisdiction.
Contract Linguists translate documents or audio into English, serve as an interpreter for investigative interviews, and provide translation during visits by foreign dignitaries. The possibilities are as wide as the sense of accomplishment.
The Contract Linguist position pays $27.00 to $41.00 per hour. Successful applicants will work for the FBI at its Chicago office. Full-time Language Analysts, as government employees, come from the ranks of the Contract Linguists.
For additional information or questions about this career fair,
e-mail Jeanne White at Jeanne.White@ic.fbi.gov; or apply online at www.FBIJobs.gov/linguists.

TWENTY CHARGED IN HUMBOLDT PARK DRUG SWEEP

2011-02-23T12:14:00.000-08:00

Eighteen individuals, including seventeen members of the Maniac Latin Disciples street gang, operating primarily on Chicago’s Northwest side in and around Humboldt Park, were arrested today by agents and officers assigned to the FBI’s Joint Task Force on Gangs, culminating a nearly two-year long investigation which targeted illicit drug and firearms sales. Two additional defendants remain at-large and are now the subject of a nationwide manhunt.
The arrests were announced today by Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI) and Jody P. Weis, Superintendent of the Chicago Police Department (CPD).

Some of the charges were contained in eight separate criminal complaints filed in U.S. District Court in Chicago, which were unsealed earlier today, and which charged 10 current or former Chicago area residents with distribution of a controlled substance or violating federal firearms laws. Ten others were charged with violating state drug or firearms laws in charges filed in Cook County Circuit Court.
Four of those arrested today were charged in one of four federal complaints with distribution of in excess of 50 grams of crack cocaine. They are identified as RICHARD FISCHER, age 32, of 5333 West Carmen Avenue, Chicago; DAVID GONZALEZ, age 22, of 4824 West Drummond Place, Chicago; STANFIELD STEELE, age 34, of 439 Durbin Street, Gary, Indiana; and SHAROND WILLIAMS, age 30, of 2457 North Albany Avenue, Chicago. All four were arrested at various locations, without incident. A fifth defendant, identified as STEVEN RENTERIA, age 26, of Chicago, was in custody on unrelated charges while a sixth defendant, DWIGHT JOHNS, age 33, of 11 West Division Street, Chicago, eluded capture and remains at-large. Two others arrested today were charged in separate federal complaints with distribution of in excess of five grams of crack cocaine. They are identified as MARCUS MARINELLI, age 28, of 2622 North Sayre, Chicago and ALEXANDER SANTIAGO, age 33, of 2942 North Nagle Avenue, Chicago. Both men were arrested at separate locations, without incident.
Also arrested today was JESUS LAGUNAS, age 24, of 1806 North Washtenaw Avenue, Chicago, who was charged in a separate federal complaint with felon-in-possession of a firearm. LUIS CANCEL, age 20, of 311 East Carroll Street in Kissimmee, Florida was also charged in a federal complaint with felon-in-possession of a firearm, but eluded capture and remains at-large.
Those arrested on state charges are identified as TONY BRITO, age 30, of 3915 West Grand, Chicago; MARCO ESTRADA, age 22, of 3906 North Christiana Avenue, Chicago; FRANCISCO GARCIA, age 44, of 1442 North Avers, Chicago; ANGEL JIMENEZ, age 32, 1849 North Washtenaw Avenue, Chicago; IVAN MELENDEZ, age 36, of 1422 North Lawndale, Chicago; NICHOLAS MENDOZA, age 27, of 2144 North Keeler, Chicago;
ALPER SENGER, age 31, of 4155 North Lincoln Avenue, Chicago; ELLIOT TORRES, age 22, of 1839 North Washtenaw, Chicago; and ANTHONY ZAFIRO, age 20, of 1736 North Campbell Avenue, Chicago.
A tenth state defendant, JOSE MATEO, age 27, of 1838 North Washtenaw, Chicago, was in custody on unrelated charges.
This investigation, which was code named “Operation Bruised Forks”, was investigated by the Chicago FBI’s Joint Task Force on Gangs, which is comprised of FBI special agents and officers from the Chicago Police Department, Area 5 Spanish Gang Task Force and Organized Crime Division, and the High Intensity Drug Trafficking Area (HIDTA). The Cook County State’s Attorney’s office also assisted with the investigation.
Investigators utilized undercover and controlled purchases of illegal narcotics and firearms, both of which helped lead to the filing of the charges announced today. During the course of the investigation, over a kilogram of cocaine, primarily cocaine base in the form of crack cocaine, 35 grams of heroin, and 24 weapons were recovered.
All of those arrested on federal charges are scheduled to appear before Magistrate Judge Morton Denlow in Chicago, starting at 2:00 PM today, at which time they will be formally charged. If convicted, those charged with possession of in excess of 50 grams of crack cocaine face a mandatory minimum sentence of ten (10) years incarceration, those charged with possession of in excess of 5 grams of crack cocaine face a mandatory minimum sentence of five (5) years incarceration, while those charged with felon-in-possession of a firearm face a possible sentence of up to ten (10) years incarceration.
Those arrested on state charges are scheduled to appear in bond court at dates and times to be determined. If convicted, they face possible sentences of up to thirty (30) years in the Illinois Department of Corrections.
The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

Romanian Man Pleads Guilty to Role in International Fraud Scheme Involving Online Auction Websites

2011-02-17T01:12:00.000-08:00

WASHINGTON—A Romanian man pleaded guilty today before U.S. District Judge Matthew F. Kennelly in Chicago to one count each of wire fraud and conspiracy for his role in moving and hiding the illicit proceeds of an international fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Patrick J. Fitzgerald for the Northern District of Illinois and U.S. Attorney Ronald C. Machen Jr. for the District of Columbia.
Adrian Ghighina, 33, of Bucharest, Romania, was indicted by a federal grand jury in the Northern District of Illinois in April 2008 on seven counts of wire fraud. In May 2010, Ghighina was separately indicted by a federal grand jury in Washington on charges of conspiracy, bank fraud and money laundering.
According to court documents, Ghighina, who entered the United States legally in late 2004, acted as a “money mule” in a complex Internet fraud conspiracy. Ghighina’s coconspirators, many of whom are in Romania, created fraudulent online auctions for expensive items such as cars, motorcycles and RVs on websites such as eBay, Craigslist and AutoTrader.com. Victims who responded to these fraudulent listings were directed, in some cases by e-mail or telephone, to transmit payment for the non-existent items using Western Union and bank wire transfers to accounts controlled by Ghighina.
Ghighina admitted that he moved from city to city opening new accounts at various banks using false identification as part of the conspiracy. The victims never received the items for which they had paid. From approximately September 2005 until his arrest in October 2009 in Miami, Ghighina opened accounts and/or received funds in Illinois, the District of Columbia, Florida, New York, Arizona and elsewhere.
Ghighina faces a maximum penalty of 20 years in prison and a $250,000 fine on the count of wire fraud from the Chicago indictment, and a maximum penalty of 20 years in prison and a $250,000 fine on the count of conspiracy to commit wire fraud from the Washington indictment. Both counts also include up to three years of supervised release following any prison term. Sentencing is scheduled for May 9, 2011. Ghighina also previously was convicted on related charges of wire and visa fraud in the Southern District of Florida and sentenced on those charges to 27 months in prison.
The Chicago case is being prosecuted by Assistant U.S. Attorney Brian Hayes with the Northern District of Illinois. The Washington case is being prosecuted by Special Assistant U.S. Attorney Joseph Springsteen for the District of Columbia. Mr. Springsteen also serves as a Trial Attorney with the Criminal Division’s Computer Crime and Intellectual Property Section. Assistance on the Washington case was also provided by CCIPS Trial Attorneys Gavin Corn and Mysti Degani. The Criminal Division’s Office of International Affairs provided assistance in this matter. This case is being investigated by the Chicago and Washington Field Offices of the FBI, as well as the Chicago Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Glenn Stancil convicted for Scheming with Two Others in Fraud on Customers and Lenders

2011-02-09T12:06:00.000-08:00

CHICAGO—The president of a former west suburban auto dealership was convicted of engaging in a fraud scheme in which he, together with the dealership’s owner and another employee, caused lending institutions, car dealerships, and customers to lose approximately $2.25 million in transactions involving more than 100 vehicles. Glenn Stancil, once president of the former Clover Financial Sales & Leasing, Inc., in Roselle, was found guilty late yesterday on 11 counts of mail and wire fraud by a federal jury following a two-week trial in U.S. District Court, Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, announced today.

Stancil, 39, of Lake in the Hills, who ran Clover’s used car department, remains free on bond while awaiting sentencing. He is scheduled to return to federal court at 10 a.m. Monday for a forfeiture hearing at which time U.S. District Judge Elaine Bucklo is expected to set a date for sentencing. The government is seeking forfeiture of approximately $2.25 million from Stancil and Clover’s former owner, Patrick McManamon.
McManamon, 50, of Elk Grove Village, pleaded guilty in November to the same 11 fraud counts and is scheduled to be sentenced on March 18. A third co-defendant, Pamela Mendyk, 36, also of Lake in the Hills, who worked in Clover’s finance department, entered a pre-trial diversion agreement with the government, which provides that the fraud charges against her will be dismissed if she successfully completes a year of probation. She testified as a government witness at Stancil’s trial.
Stancil and McManamon each face a maximum penalty of 20 years in prison and a $250,000 fine on each count of mail and wire fraud. Alternatively, the court may impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. Restitution is mandatory and the court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
According to court documents and the evidence at trial, McManamon and Stancil persuaded customers to transfer to Clover vehicles that they owned or leased by falsely representing that Clover would pay off the customers' loans or leases on those vehicles. McManamon and Stancil then sold or leased these vehicles to other customers, falsely representing that Clover had good title to the vehicles. McManamon, Stancil, and Mendyk arranged for lending institutions to finance the purchase and lease of vehicles from Clover by falsely representing that Clover had paid off prior loans and leases on those vehicles.
Between March 2005 and December 2006, McManamon, Stancil, and Mendyk caused at least 127 vehicles to be transferred to Clover based on false representations, failed to pay off the loans and leases on those vehicles, and caused losses to Clover's lenders and customers of approximately $2.25 million.
The defendants induced lenders to finance customers' purchases and leases of the fraudulently obtained vehicles from Clover by providing the lenders with fraudulent documents, including altered titles and checks falsely purporting to represent pay-offs of outstanding loans and leases. When customers who bought vehicles from Clover had trouble obtaining valid license plates and car registrations, the defendants falsely represented that the Illinois Secretary of State was behind in processing and issuing titles, and that Clover's transactions were processed more slowly because it was not a large dealership.
The Illinois Secretary of State Police and the Illinois Attorney General's Office assisted in the investigation. The government is being represented by Assistant U.S. Attorneys Felicia Manno Alesia and Barry Jonas.

FBI’s Top Ten News Stories for the Week Ending february 4, 2010

2011-02-09T11:56:00.001-08:00

Charlotte: Iranian National Charged with Illegally Exporting Specialized Metals from the United States to Iran

Milad Jafari, a citizen and resident of Iran, was indicted for illegally exporting and attempting to export specialized metals from the U.S. through companies in Turkey to several entities in Iran, including some entities that have been sanctioned for involvement in ballistic missile activities. Full Story
Philadelphia: Pennsylvania Woman Pleads Guilty in Plot to Recruit Violent Jihadist Fighters and to Commit Murder Overseas

Colleen R. LaRose, aka “Jihad Jane,” pled guilty to all counts of a superseding indictment charging her with conspiracy to provide material support to terrorists, conspiracy to kill in a foreign country, making false statements, and attempted identity theft. Full Story
San Antonio: Mexican Nationals Plead Guilty to Carjacking Off-Duty Border Patrol Agent

Two 19-year-old men pled guilty to carjacking the vehicle of an off-duty Border Patrol agent. Jorge Luis de la Fuente-Monton and Fernando Antonio Munoz-Martinez face up to 15 years in federal prison without parole for the conviction. Full Story
Houston: Doctor Sentenced to Prison and Ordered to Forfeit More Than $43 Million in Cash/Property Gained Through Fraud

Dr. Arun Sharma was sentenced to 15 years for engaging in a conspiracy with his wife, Dr. Kiran Sharma, to commit health care fraud and committing health care fraud over a 10-year-period in the Southern District of Texas. Full Story
Birmingham: Man Faces 34-Count Federal Indictment in Mortgage Fraud Scheme

A federal grand jury indicted a Brookwood, Alabama man on wire fraud and false statement charges related to a more than $1 million mortgage fraud scheme in the Birmingham area. Full Story
New Haven: Securities Broker Sentenced to Four Years in Federal Prison for Embezzling $1.7 Million from Clients

Gregory J. Buchholz was sentenced to 48 months in prison followed by three years of supervised release for embezzling approximately $1.7 million from clients of his financial services business. Full Story
Detroit: New York Broker Indicted for Alleged Role in International Stock Fraud Scheme

An indictment was unsealed charging stock broker Gregg M. Berger for his role in a wide-ranging fraud scheme to illegally "pump-and-dump" thinly traded Chinese and Israeli stocks. Full Story
Sacramento: Third Man Pleads Guilty to Federal Hate Crime Charge Related to Desecration of Synagogue and Churches in Modesto, California

Andrew Kerber pleaded guilty to violating the civil rights of congregants of Congregation Beth Shalom, a synagogue in Modesto, California, Full Story
San Diego: Maxwell Technologies Inc. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $8 Million Criminal Penalty

Maxwell Technologies Inc. agreed to pay an $8 million criminal penalty to resolve charges related to the Foreign Corrupt Practices Act for bribing Chinese government officials to secure sales of Maxwell’s products to state-owned manufacturers of electric-utility infrastructure in several Chinese provinces. Full Story
Jackson: Mississippi Sheriff’s Deputy Indicted for Civil Rights Offenses and Obstruction of Justice

A jury returned an indictment charging Choctaw County (Mississippi) Sheriff's Deputy Billy C. Scott, Jr. with civil rights violations and obstruction of justice. Full Story

SIXTEEN CHARGED IN SOUTH SUBURBAN DRUG SWEEP

2011-02-09T11:49:00.001-08:00

Thirteen alleged members of two separate drug distribution rings operating in Robbins and Harvey were arrested yesterday by agents and officers assigned to a federal task force, culminating a lengthy investigation which targeted illicit drug distribution in the south suburbs. Three additional defendants remain at-large and are now the subject of a nationwide manhunt.

The charges were made public today by Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation (FBI), who was joined Thomas Dart, Cook County Sheriff; Frederick W. Hayes, Chief of the Joliet, Illinois Police Department; and Timothy J. McCarthy, Chief of the Orland Park, Illinois Police Department in announcing the arrests.

The charges were contained in two separate criminal complaints filed in U.S. District Court in Chicago, which were unsealed late yesterday, and which charged 12 Chicago area residents with conspiracy to possess with intent to distribute and distribution of heroin. Four others were charged with violating state drug laws in charges filed in both Cook and Will County Circuit Courts.

According to one of the federal complaints, JOSE SANDOVAL, age 30, of 2136 East 221st Street in Sauk Village, is alleged to have supplied wholesale quantities of heroin to defendant NICHOLAS LACY, also known as (aka) “Pork”, age 32, of 21506 Peterson, also in Sauk Village, and who is alleged to have controlled a drug distribution operation based in Robbins, Illinois.

The federal complaint further alleges that SANDOVAL routinely provided half pound and greater quantities of heroin to LACY, who would then re-package the drugs in individual user quantities, usually 0.1 gram bags, which were sold by LACY and members of his operation, in and around the vicinity of 138th Street and Kedvale in Robbins. The complaint alleges that LACY’s drug ring operated seven days a week, from 9:00 a.m. to 10:00 p.m., and sold as much as $3,000 worth of heroin daily.

The second federal complaint charges ERIC RIDGNER, aka “Torry”, age 31, of 3459 Orchid Drive in Dyer, Indiana, with running a similar heroin distribution ring, which operated in Harvey, Illinois. RIDGNER was allegedly supplied with wholesale amounts of heroin by LACY, which he also re-packaged and sold in individual user amounts, usually in 0.1 gram bags. The drugs were then sold by RIDGNER and members of his operation on the streets of the south suburb.

In announcing these charges, Mr. Grant noted the insidious nature of heroin, the use of which has reached unprecedented levels in the Chicago area. Said Mr. Grant, “Those charged this week in connection with this investigation were preying on the vulnerabilities of those with substance abuse problems, exploiting their addictions for their own personal gain.”

“The key targets of this investigation were major suppliers of drugs that not only destroyed lives, but destroyed neighborhoods – and most often, not neighborhoods where they lived,” Sheriff Dart said. “The tentacles of their operations stretched from the most impoverished street corners to suburban luxury subdivisions. It takes years of hard work to disrupt a distribution network that complex, but we’re under no illusions that the activity has simply stopped. That’s why our investigation hasn’t stopped, either.”

Chief McCarthy added “The arrests made this week demonstrate once again the value of joint investigations and the continued need for standing task forces, such as the one which our department participates in with the FBI in the south suburbs. Drugs and gangs are no longer confined to certain geographical areas or communities and the joint task force has been shown to be the most effective way to address this growing problem.”

Others charged in the federal complaints are identified as MARCUS GILLESPIE, age 21 of 14843 Edbrooke in Dolton; CANDICE JEFFRIES, age 23, of 15839 Lexington Avenue in Harvey; MICHAEL KNIGHT, age 44, of 16009 South Halsted in Harvey; CHUANICE LOVING, age 28, of 20158 Ash Lane in Lynwood; RESEAN RIDGNER, age 24, of 16235 South Ashland, Markham; DESMOND SCOTT, age 20, of 4121 West 138th Street in Robbins; LAWRENCE SCOTT, age 30, of 13753 Kildare in Midlothian; DERRICK THIGPEN, age 23, of 4134 West Midlothian Turnpike in Robbins; and CHERONDA WALLACE, age 24, of 2215 East 175th Street in Lansing. MARCUS GILLESPIE, RESEAN RIDGNER and DESMOND SCOTT eluded capture and remain at-large.

Those arrested on state charges are identified as MILDRED GASSENSMITH, age 31, of 911 Campbell in Joliet; NEIL LESTER, age 30, of 16672 Beacon Lane in Orland Park; ALEXANDER LYS, age 18, of 525 Carla Drive in Shorewood; and WILLIAM WOODS, ager 26, of 16952 Blue Heron Drive in Orland Park.

This investigation, which was code named “Operation J Down”, was investigated jointly by the Chicago FBI’s South Suburban Violent Crimes Task Force, which is comprised of FBI Special Agents, Investigators from the Cook County Sheriff’s Office and Officers from the Joliet and Orland Park Police Departments. The Cook and Will County State’s Attorneys offices also assisted with the investigation.

Court authorized electronic surveillance of several telephones used by the defendants in connection with their drug operations were used during the investigation and helped lead to the filing of the charges announced today. During the course of the investigation, nearly 500 individual packets of heroin and in excess of $200,000 in cash, which is suspected drug proceeds, were recovered.

All of those arrested on federal charges appeared before Magistrate Judge Geraldine Soat Brown in Chicago, late yesterday, at which time they were formally charged. Six of the federal defendants were granted bond, while three others were ordered held without bond, pending their next court appearance, which is scheduled for Friday, February 11. If convicted of the charges filed against them, the federal defendants in these cases face a possible sentence ranging from a mandatory minimum of five (5) years incarceration to a maximum of life in prison and a possible fine of up to $2 million.

Those arrested on state charges are scheduled to appear in bond court, later today. If convicted, they face a possible sentence of 1-3 years incarceration.

The public is reminded that a complaint is not evidence of guilt and that all defendants in a criminal case are presumed innocent until proven guilty in a court of law.

FBI’s Top Ten News Stories for the Week Ending January 22, 2010

2011-01-22T12:03:00.000-08:00

New York/Newark/Boston: Ninety-One Leaders, Members, and Associates of La Cosa Nostra Families in Four Districts Charged with Racketeering and Related Crimes, Including Murder and Extortion

Ninety-one members and associates of seven organized crime families of La Cosa Nostra (LCN), including the New England LCN family, all five New York-based families, and the New Jersey-based Decavalcante, family were charged with federal crimes in 16 indictments returned in four judicial districts, and 36 additional defendants were charged for their roles in alleged associated criminal activity. Full Story
Phoenix: Jared Lee Loughner Indicted

A jury in Tucson returned an initial three-count indictment against Jared Lee Loughner for attempting to kill U.S. Rep. Gabrielle Giffords and two of her aides, Ron Barber and Pamela Simon. Full Story
Dallas: Angelina County Man Guilty in Murder Scheme

A 44-year-old Lufkin, Texas man pled guilty to charges related to a double homicide which took place in Nacogdoches in August 2007. Full Story
Richmond: Provident Capital Indemnity, Its President, and Auditor Charged in $670 Million Fraud Scheme

The president and the auditor of a Costa Rican company selling reinsurance bonds to life settlement companies were arrested and charged, along with the company itself, in a seven-count indictment for their alleged role in a $670 million fraud scheme. Full Story
Indianapolis: Two Indicted for Setting a Residence on Fire in Henderson, Kentucky in 2007

Lori Hargis and Leslie Vashaun White were indicted for conspiracy to set real property on fire for the purpose of collecting insurance proceeds and committing wire fraud by filing a fraudulent insurance claim. Full Story
San Diego: Co-Founder of Casino-Cheating Criminal Enterprise Pleads Guilty to Racketeering Conspiracy Targeting Casinos Across the United States

The co-founder of a criminal enterprise known as the Tran Organization pled guilty to conspiring to participate in the organization's scheme to cheat casinos across the country out of millions of dollars. Full Story
Houston: Two Owners of Houston Health Care Company Plead Guilty in Massive Fraud Scheme

Clifford Ubani and Princewill Njoku, who owned a Houston health care company, pled guilty in connection with an alleged $5.2 million Medicare fraud scheme. Full Story
Cleveland: Inmate Who Ran a Quarter-Million-Dollar Identity Theft Ring from Inside Federal Prison Receives an Additional 14.5 Years in Prison

Dimorio McDowell, who had previously been sentenced to prison for identity theft, wire fraud, and bank fraud charges, was sentenced to serve and additional 14 years in prison for leading an identity-theft ring from prison that ran up a quarter-million dollars worth of charges. Full Story
Jackson: Two Mississippi Lawyers Plead Guilty to Conspiracy and Fraud Charges

Charles H. Evans, Jr. and his brother, Jon Christopher Evans, pled guilty to conspiracy to commit money laundering and bank fraud charges. Full Story
Chicago: Former Chicago Hedge Fund Manager Allegedly Swindled More Than $3.5 Million from 48 Victims in Investment Fraud Scheme

James Brandolino, a former hedge fund manager, was taken into federal custody after he turned himself in for allegedly engaging in an investment fraud scheme in which he swindled more than $3.5 million from approximately 48 victims who invested in funds he purported to operate. Full Story

KHARL R. WILLIAMS Arrested in Bank Robbery

2011-01-18T14:35:00.000-08:00

A 43-year old Elgin man was charged today in U.S. District Court in Chicago with one count of bank Robbery, which is a felony offense. KHARL R. WILLIAMS was charged with the Sunday robbery of the TCF bank branch, located at 2501 West Schaumburg Road.
WILLIAMS appeared before Magistrate Judge Maria Valdez in Chicago, earlier today, at which time he was formally charged. WILLIAMS was ordered held without bond, pending his next scheduled court appearance.

FBI’s Top Ten News Stories for the Week Ending January 14, 2010

2011-01-15T12:00:00.000-08:00

Phoenix: Initial Appearance for Jared Lee Loughner
The United States Attorney for the District of Arizona announced that Jared Lee Loughner, the suspect in the Tucson shooting investigation, made his initial appearance in federal court. Loughner remains in federal custody pending a detention hearing. Full Story
New York: Abdel Nur Sentenced to 15 Years in Prison for Providing Material Support to the Conspiracy to Commit a Terrorist Attack at JFK Airport

Abdel Nur was sentenced to 15 years in prison for providing material support to the conspiracy to attack JFK International Airport by exploding fuel tanks and the fuel pipeline under the airport. Full Story
Los Angeles: Former Chase Bank Official Convicted of Taking Bribes and Disclosing Existence of a Suspicious Activity Report
Frank Mendoza, a former official with Chase Bank, was found guilty of disclosing confidential information to a borrower whose potentially fraudulent conduct triggered a suspicious activity report, and soliciting thousands of dollars in bribes from the borrower in exchange for assisting the borrower with the possible criminal investigation. Full Story
Cleveland: Thirty People Accused in Large-Scale Heroin Trafficking Ring
A jury returned a 110-count indictment against 30 individuals accused of running a large-scale heroin trafficking ring that brought the drugs from various points in the United States. Full Story
Headquarters: FBI Releases Bank Crime Statistics for Third Quarter 2010
During the third quarter of 2010, there were 1,325 reported violations of the Federal Bank Robbery and Incidental Crimes Statute, an increase from the 1,212 reported violations in the same quarter of 2009. Full Story
Albuquerque: Navajo Man Receives Life Sentence for Murder of Common-Law Wife
Nathan Don Jack, an enrolled member of the Navajo Nation, was sentenced to life in prison based on his second degree murder conviction. He was convicted of murdering Jessica Shorty, his common-law wife and the mother of his three children. Full Story
San Juan: Seventeen Individuals Indicted for Conspiracy to Possess with Intent to Distribute Oxycodone

A jury indicted 17 individuals as a result of an investigation by multiple federal agencies and the Puerto Rico Police Department. The defendants are charged in a 19-count indictment with conspiracy to possess and possession with intent to distribute Oxycodone. Full Story
San Diego: Border Corruption Task Force Arrests Border Patrol Agent
U.S. Border Patrol Agent Marcos Gerardo Manzano, Jr. and Jose Alfredo Garrido-Morena were arrested as a result of an investigation conducted by the Border Corruption Task Force. Full Story
Newark: Former Chairman and CEO of Home Diagnostics Inc. and Cohort Charged in Multi-State Insider Trading Scheme

The former chairman and CEO of publicly-traded Home Diagnostics Inc. surrendered, along with a co-conspirator, to face charges arising from their alleged participation in an insider trading scheme. Full Story
San Francisco: Taiwan HannStar Executive Indicted for Role in LCD Price Fixing Conspiracy

An indictment was returned against the current president of HannStar Display Corporation for his participation in a global conspiracy to fix prices of thin-film transistor liquid crystal display panels. Full Story

FBI Releases Bank Crime Statistics for Third Quarter of 2010

2011-01-11T23:10:00.001-08:00

During the third quarter of 2010, there were 1,325 reported violations of the Federal Bank Robbery and Incidental Crimes Statue, an increase from the 1,212 reported violations in the same quarter of 2009.¹ According to statistics released today by the FBI, there were 1,310 robberies, 13 burglaries, two larcenies and six extortions of financial institutions² reported between July 1, 2010 and Sept. 30, 2010.
Highlights of the report include:

Loot was taken in 90 percent of the incidents, totaling more than $9.3 million.
Of the loot taken, 20 percent, or nearly $1.4 million, was recovered and returned to financial institutions.
Bank crimes most frequently occurred on Friday. Regardless of the day, the time frame when bank crimes occurred most frequently was between 9 a.m. and 3 p.m.
Acts of violence were committed in 4 percent of the incidents, resulting in 21 injuries, four deaths, and nine people being taken hostage.³
Demand notes were the most common modus operandi used, closely followed by oral demands.⁴
Most violations occurred in the southern region of the U.S., with 482 reported incidents.

These statistics were recorded as of October. 27, 2010. Note that not all bank crimes are reported to the FBI, and therefore the report is not a complete statistical compilation of all bank crimes that occurred in the U.S.
¹ In the third quarter of 2009, there were 1,184 robberies and 28 burglaries. No larcenies or extortions were reported.
² Financial institutions include commercial banks, mutual savings banks, savings and loan associations and credit unions.
³ One or more acts of violence may occur during an incident.
⁴ More than one modus operandi may have been used during an incident.
View the entire report

FBI’s Top Ten News Stories for the Week Ending January 7, 2010

2011-01-11T23:00:00.001-08:00

Washington Field/St. Louis: Former CIA Officer Arrested for Alleged Unauthorized Disclosure of National Defense Information and Obstruction of Justice

Jeffrey Alexander Sterling, a former CIA officer, was arrested in St. Louis on charges that he illegally disclosed national defense information and obstructed justice. Sterling was charged with six counts of unauthorized disclosure of national defense information and one count each of unlawful retention of national defense information, mail fraud, unauthorized conveyance of government property, and obstruction of justice. Full Story
New York: Hijacker of Pan American Flight 281 Sentenced in Manhattan Federal Court to 15 Years in Prison
Luis Armando Peña Soltren was sentenced to 15 years in prison for his participation in the November 24, 1968 hijacking of Puerto Rico-bound Pan American flight 281 to Havana, Cuba. Full Story
Chicago: Self-Proclaimed White Supremacist William White Convicted of Soliciting Violence Against Hale Jury Foreman
William White, a self-proclaimed white supremacist, was convicted of soliciting violence against the foreman of a federal jury in Chicago that convicted another white supremacist, Matthew Hale, in 2004. Full Story
San Diego: Brothers Plead Guilty to Their Roles in Masterminding $30 Million Ponzi Scheme and Mortgage Fraud
Brothers Matthew "Beau" La Madrid and Lance La Madrid pled guilty to conspiracy and mail fraud charges in connection with their operation of the Plus Money Premium Return Funds and related real estate investment and mortgage fraud schemes. Full Story
New Haven: Joint Law Enforcement Investigation Takes Down Alleged Drug Trafficking Rings
Seventeen individuals were arrested and charged with various narcotics trafficking and firearms offenses related to the large-scale distribution of heroin, cocaine, and crack cocaine in Bridgeport and Hartford, Connecticut and Springfield, Massachusetts. Full Story
Miami: Fort Lauderdale Man Convicted on 1974 and 1977 Child Enticement and Transportation Charges

George England, of Fort Lauderdale, Florida, was found guilty on three counts of enticement of a minor and two counts of transportation of a minor from Asia to California in 1974 and from California to Florida in 1977 for the purpose of having the minor engage in sexual acts. England brought a 4-year-old girl from Vietnam to the U.S. in the early 1970s and repeatedly sexually assaulted her for more than two decades. Full Story
Headquarters/Los Angeles: Orange County RCFL Opens for Business
FBI Director Robert S. Mueller, III, along with local area law enforcement officials, opened the Orange County Regional Computer Forensics Laboratory (OCRCFL) in a ribbon-cutting ceremony in Santa Ana, California. Full Story
Baltimore: Executive Director of the Havre De Grace Housing Authority Pleads Guilty to Bribery

George R. Robinson pled guilty to bribery of a public official. Robinson was the executive director of the Havre de Grace Housing Authority since 2002 and was responsible for managing a 60-unit public housing project when he asked a contractor for kickbacks. Full Story
Norfolk: Former Member of Virginia House of Delegates Charged with Bribery and Extortion

A jury returned an indictment charging Phillip A. Hamilton, a former member of the Virginia House of Delegates, with allegedly soliciting employees of Old Dominion University for a paid position at the same time he was introducing legislation to fund the position. Full Story
Phoenix: Tuba City Man Sentenced to Seven Years for Selling Methamphetamine on Navajo Nation
JR Tom Webster was sentenced to 84 months in federal prison after pleading guilty to conspiracy to possess with the intent to distribute five grams or more of actual methamphetamine. Full Story

Brunt Bros., Its Owner, and Non-Minority Contractor Indicted for Alleged Minority Contract Fraud on City Sewer Work

2011-01-10T23:14:00.000-08:00

CHICAGO—The owner of a Chicago company certified as a minority-owned business, his company, and the former president of a non-minority contractor were indicted today on federal fraud charges for allegedly scheming to use the minority business merely as a "pass-through" on a multi-million-dollar sewer cleaning and inspection contract. The company, Brunt Bros. Transfer, Inc., allegedly fraudulently received more than $3 million since 2000 after being hired to clean and videotape city sewers south of 63rd Street as part of the Southern Third Chicago Sewers Contract, also known as the Southern District Contract, when, in fact, it did not actually perform the work specified by the contract.

Brunt Brothers; its owner, Jesse Brunt; and Anthony Duffy, who at first worked for one company and then later co-owned a different company, both now defunct, that allegedly actually did the work that Brunt Brothers was supposed to perform, were each indicted on three counts of mail fraud in an indictment returned today by a federal grand jury. The indictment also seeks forfeiture of $3 million.
Brunt, 74, of Chicago; Duffy, 46, of Bartlett; and the company will be arraigned at a later date in U.S. District Court in Chicago.
The indictment was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph Ferguson, Inspector General for the City of Chicago, who has been a valuable partner with the FBI in the investigation, Mr. Fitzgerald said.
"M/WBE work is a vital provider of economic opportunity in communities throughout the city. We will continue to work with our federal partners to eliminate the waste, fraud, and abuse that has historically plagued this program," Mr. Ferguson said.
According to the indictment, beginning in 1999, Brunt and Brunt Brothers fraudulently sought, obtained, and maintained certification by the City of Chicago as a minority business enterprise (MBE) in the field of sewer cleaning, despite Brunt Brothers not having the capacity to perform the work itself. To obtain and maintain this status, Brunt Brothers was required to demonstrate it performed a commercially useful function.
The indictment alleges that in August 2000 Brunt falsely certified in documents filed with the city that Company A would perform a certain value of work for Brunt Brothers under the Southern District Contract, but substantially under-represented the extent of work that he expected Company A would perform. In a November 2000 letter to the city, Brunt falsely represented that Brunt Brothers would subcontract no more than 40 percent of the work, barring an emergency, to Company A, a non-minority sewer cleaning company where Duffy was a manager and employee from 2000 to 2003. Brunt further falsely represented that his company would obtain the equipment necessary to complete the project, the charges allege.
It was part of the scheme, however, that Brunt Brothers would and did operate merely as a "pass-through" for the contract, did not perform a commercially useful function, and did not actually perform, manage or supervise the work, as Brunt and Duffy knew and orchestrated, according to the indictment. Between 2000 and 2003, Company A performed substantially all of the work that Brunt Brothers had contracted to perform, it adds.
In 2003, Duffy and others formed Company B to acquire the sewer cleaning assets of Company A and, among other purposes, to have Company B provide the services purportedly performed by Brunt Brothers that had previously been performed by Company A. Between 2003 and 2005, Brunt and Duffy allegedly arranged for and caused Company B to perform substantially all of the services required of Brunt Brothers under the Southern District Contract. As part of the scheme, Duffy allegedly caused Company B to prepare Brunt Brothers invoices for work Duffy and Brunt knew was actually performed by Company B. Further, Brunt and Duffy fraudulently inflated Brunt Brothers invoices to the city approximately 15 percent in excess of the amount that Company B invoiced to Brunt Brothers, the indictment alleges.
In addition, the charges allege that Duffy caused Company B to assist in preparing Brunt Brothers' bid for a new sewer cleaning and inspection contract, intending that Brunt Brothers would operate as a "pass-through" for Company B. In documents filed with the city in 2003, Brunt allegedly falsely represented that Company C would participate in the contract as both an MBE and a women-owned business enterprise (WBE.) Brunt also omitted and failed to disclose the identity and participation of Company B as a subcontractor on economic disclosure statements signed in 2003 and 2005 and filed with the city, the charges add.
The government is being represented by Assistant U.S. Attorney Mark E. Schneider.
Each count of mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The company faces a maximum penalty of five years' probation and a $500,000 fine on each count. As an alternative, the court may impose a maximum fine totaling twice the loss to any victim or twice the gain to any defendant, whichever is greater, and restitution is mandatory. If convicted, the court must determine a reasonable sentence to impose under the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

FBI’s Top Ten News Stories for the Week Ending Decembre 31, 2010

2010-12-31T19:47:00.001-08:00

Minneapolis: Redby Couple Sentenced for Second-Degree Murder
A Redby couple was sentenced in connection to the murder of a 21-year-old man on October 1, 2009. Renee Delores Ann Smith was sentenced to 121 months in prison on one count of aiding and abetting murder in the second degree. Kelly James Maxwell was sentenced to 222 months on one count of aiding and abetting murder in the second degree. Full Story
Cincinnati: Powell Man Sentenced for Selling More Than 35,000 Illegally Copied Videogames Over the Internet
Qiang “Michael” Bi was sentenced to 30 months incarceration for selling more than 35,000 illegally copied computer games over the Internet between 2005 and 2009. He is required to make restitution to the companies who created the games. Full Story
Los Angeles: Orange County Man Surrenders After Being Indicted in Investment Fraud Case that Caused $2.4 Million in Losses
Charles Davis surrendered to agents in Orange County. Davis was indicted in an investment scheme in which he allegedly defrauded approximately 40 investors with losses exceeding $2 million. Full Story
Atlanta: Principals of Defunct Hedge Fund Indicted for $30 Million International Fraud Scheme

Thomas Repke was arraigned on multiple counts of mail fraud, wire fraud, and conspiracy relating to his operation of the Utah-based investment company, “Coadum Capital.” Repke was indicted on December 15 along with an alleged accomplice, James Jeffry. Full Story
New York: Manhattan U.S. Attorney Charges Consultant of Expert-Networking Firm with Insider Trading

Winifred Jiau, a/k/a “Wini,” was arrested on charges relating to her involvement in an insider trading scheme. Jiau was charged with conspiring to commit securities fraud and engaging in securities fraud by selling material, nonpublic information about publicly-traded companies to multiple hedge funds for the purpose of executing profitable securities transactions. Full Story
Chicago: Former Chicago Man Allegedly Swindled Nearly $8 Million from More Than 50 Victims in Investment Fraud Scheme
Randy M. Cho was charged with allegedly engaging in an investment fraud scheme, swindling nearly $8 million from more than 50 victims who were led to believe they were buying shares of stock in well-known companies. Cho purportedly offered and sold more than $9.6 million of shares in well-known companies to more than 50 U.S. and foreign investors. Full Story
New Haven: FBI Task Force Investigation into New Haven Cocaine Ring Results in Federal Charges Against Nine Men

A jury returned a seven-count indictment charging nine individuals with narcotics trafficking offenses related to the distribution of cocaine in and around New Haven. The nine men charged in the indictment were previously arrested on federal criminal complaints. Full Story
FBI Lab/Albuquerque: FBI Responds to Relocation of CODIS Server from the City of Albuquerque to Santa Fe
The FBI Lab Director issued a statement in response to local Albuquerque media outlets’ coverage regarding the CODIS server being moved from the City of Albuquerque, Albuquerque Police Criminalistics Lab to the NM Department of Public Safety in Santa Fe, per NDIS procedures. Full Story
Oklahoma City: Final Defendant Sentenced in Norman Oxycontin Trafficking Ring

The last of 24 defendants was sentenced following a long-term investigation and prosecution of a wide-spread OxyContin trafficking operation based in Norman. The investigation resulted in the conviction of individuals from central Oklahoma, Oklahoma City, Noble, Lexington and Wellston. Full Story
Albany: Schenectady Man Sentenced to 27 Months in Prison for Role in Mortgage Fraud Scheme

Michael Cassadei was sentenced to 27 months in prison followed by three years of supervised release, and ordered to pay restitution of more than $130,000, for his role as an organizer of a local mortgage fraud scheme. Full Story

Randy M. Cho Allegedly Swindled Nearly $8 Million from More Than 50 Victims in Investment Fraud Scheme

2010-12-27T20:39:00.000-08:00

CHICAGO—A former Chicago man was charged with allegedly engaging in an investment fraud scheme, swindling nearly $8 million from more than 50 victims who were led to believe they were buying shares of stock in well-known companies. The defendant, Randy M. Cho, was charged with one count of wire fraud and one count of filing a false federal income tax return in a criminal information filed in U.S. District Court. Cho allegedly misused a significant portion of the funds he raised from investors for his own personal benefit, while using other funds he fraudulently obtained from new investors to make Ponzi-type payments to previous investors. Cho, 39, of Newton, Mass., and formerly of Chicago, will be arraigned at a later date in U.S. District Court, Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago, announced today.

According to the charges, Cho held himself out as a self-employed securities trader, who, from approximately 2001 to 2009, lived and worked at various times in Chicago, Seattle, Boston and Newton, Mass. Cho purportedly offered and sold more than $9,642,507 of shares of stock in wellknown companies to more than 50 U.S. and foreign investors, including some in the Chicago area. Cho claimed to have access to sell stock in these companies, which he offered as part of a “friends and family” investment pool, often in anticipation of purported initial public offerings. Cho allegedly misrepresented that he had a special relationship with Goldman Sachs and was able to purchase discounted shares, and further misrepresented the timing or existence of public offerings, the potential profitability and safety of investments, and the use of the funds raised from investors.
At various times during the alleged scheme, Cho falsely told investors that he could purchase specially-discounted shares of companies, including AOL/Time warner, Inc., Google, Inc., Rosetta Stone, Inc., and Facebook, Inc., prior to their initial public offerings, the charges allege. For example, Cho induced one victim to invest approximately $20,000 by falsely representing that he had Google stock available to sell for $1 per share, when, in fact, Cho knew that shares of Google were publicly trading at $425 per share or more. Cho also knew that he had no Google shares at a lower price and had no intent to purchase any Google stock on the victim’s behalf, the charges add.
Similarly, Cho allegedly falsely lulled another investor into believing that the victim had made a $1 million profit by investing in shares of Google stock when no such investment or profit existed. As part of the scheme, Cho used more than $1.5 million in new investor funds to make Ponzi-type payments to previous investors, and Cho caused investors to lose approximately $7,960,707, according to the charges.
The tax count alleges that Cho filed a false federal income tax return for 2005, reporting total income of $118,475, when he knew he had received income totaling approximately $1,1,72,862.
The government is being represented by Assistant U.S. Attorney Felicia Manno Alesia. The U.S. Securities and Exchange Commission assisted in the investigation.
Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. The Court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. Filing a false tax return carries a maximum penalty of three years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains liable for any taxes owed, as well as a civil fraud penalty up to 75 percent of any underpayment plus interest. If convicted, however, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.
An information contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Operation Broken Trust: Case Examples

2010-12-23T22:00:00.000-08:00

The following are examples of enforcement actions taken as a part of Operation Broken Trust:
$485 Million Investment Scam Defrauded Thousands
Joseph Blimline pleaded guilty in the Eastern District of Texas on Aug. 31, 2010, for his role in one of North Texas’ largest oil and gas investment Ponzi schemes defrauding 7,700 investors of more than $485 million. Blimline was a majority owner of Provident Royalties, an investment company. Beginning in 2006, Blimline and others involved at Provident Royalties made false representations and failed to disclose other material facts to their investors to induce the investors into providing payments to Provident. The investors were not told that Blimline had received millions of dollars of unsecured loans and had been previously charged with securities fraud. Blimline issued approximately 20 oil and gas offerings, and used a significant amount of the money raised in these offerings to purchase oil and gas assets from earlier offerings and to pay dividends to earlier investors in order to facilitate the scheme. Blimline also pleaded guilty to charges related to a separate, but similar oil and gas scheme based in Michigan that defrauded investors out of $50 million. The criminal case against Blimline was brought by the U.S. Attorney’s Office for the Eastern District of Texas and was investigated by the FBI, in coordination with the U.S. Securities and Exchange Commission (SEC), which previously had filed a civil action to freeze the assets of Blimline and others.

Chicago Ponzi Scheme Operator Victimized Elderly Italian Immigrants
Frank Castaldi was sentenced on Sept. 15, 2010, in the Northern District of Illinois to 23 years in prison for operating a Ponzi scheme that resulted in more than $30 million in losses to hundreds of victims, including many elderly Italian immigrants. As part of his scheme, Castaldi guaranteed investors that he would pay them annual returns between 10 and 15 percent. He made false representations to most investors about investing their principal in his various businesses, and about the source of the funds that he used to make their interest payments. Castaldi used new investors’ principal payments to make interest payments to other investors, without disclosing the true source of the interest payments. Castaldi also lost investors’ money by funding a failed banquet hall and other failing businesses, and by purchasing stocks. The case was prosecuted by the U.S. Attorney’s Office for the Northern District of Illinois and investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI).
Florida Man Stole Millions from Investors to Fund His Lavish Lifestyle
Nevin Shapiro, the former owner and chief executive officer of Capitol Investments USA Inc., pleaded guilty on Sept. 15, 2010, in the District of New Jersey, for his role in a multi-million-dollar Ponzi scheme. From January 2005 through November 2009, Shapiro solicited investors from New Jersey and throughout the United States through Capitol, telling them that he would use their money to fund his wholesale grocery distribution business. As a result of these solicitations, investors sent more than $880 million to Shapiro and Capitol during this time period. Capitol had virtually no income generating business at that time and Shapiro used new investor funds to make principal and interest payments to existing investors, as well as to fund his own lavish lifestyle. Shapiro used investor funds to pay illegal sports gambling debts, to purchase floor seats at Miami Heat basketball games and to make payments on his Riviera yacht and his residence in Miami Beach. Shapiro also used investor funds to make payments to student athletes attending a local university in the Miami area and to make donations to the university. The Ponzi scheme resulted in an estimated loss of $89 million to 75 victims. The case was prosecuted by the U.S. Attorney’s Office for the District of New Jersey and investigated by the FBI and IRS-CI, with coordination from the SEC, which previously had filed parallel civil charges.
Texas Man Allegedly Targeted Members of Christian Faith in Investment Scam
Eldon A. Gresham Jr. was indicted in the Northern District of Texas on Sept. 21, 2010, on 10 counts of mail fraud in connection with a foreign currency exchange (FOREX) trading scam. From January 2004 through June 2009, Gresham solicited at least 90 individuals to invest in his FOREX trading business, the Gresham Company. Gresham falsely represented to potential investors that he generated consistent returns on investments of up to 10 percent per month. In fact, Gresham was actually losing money on his FOREX trading. Gresham also concealed from investors that he used their investment funds for personal reasons or as payments to earlier investors. Over the life of the scheme, Gresham obtained nearly $15.8 million from unsuspecting victims. Gresham used contacts from the Texas area and beyond to locate investors and targeted members of the Christian faith, who were elderly and particularly vulnerable to Gresham’s inducements. Gresham often told potential investors that he believed his success in FOREX trading was a blessing and gift from God, and Gresham considered his investment business to be “his ministry.” Gresham also encouraged people to invest by telling them that investors could use their investment gains to “further God’s work.” The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Texas and investigated by the U.S. Postal Inspection Service.
Ponzi Scheme Targeted Members of Four New York Churches
Bryant Ismail Rodriguez was sentenced on Sept. 24, 2010, in the Southern District of New York to nine years in prison for his role in a Ponzi scheme involving nearly $2 million in losses and more than 185 victims. Beginning in the spring of 2007, Rodriguez, a member of El Camino Church in the Washington Heights neighborhood of Manhattan, told members of that church, another church in Manhattan, and two churches in the Bronx, N.Y., that he was involved with an electronics distribution company named Communication and Electronics Group Inc. Rodriguez offered church members opportunities to invest in C&E, promising returns of between 30 to 40 percent every month, additional cash bonuses and even the opportunity to purchase homes in the Dominican Republic and New York City with their investment earnings. In reality, C&E was a shell company created by Rodriguez, which never sold any items to a major retailer and never purchased from an electronics manufacturer. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of New York and investigated by the U.S. Postal Inspection Service.
Investment Scam Victimized 800 Individuals Throughout the United States
Three individuals were indicted and four individuals pleaded guilty in the fall of 2010 in the Eastern District of Virginia for their roles in A&O entities, a group of businesses that acquired and marketed life settlements to investors. The defendants defrauded investors by making misrepresentations about such things as A&O’s prior success, its size and office locations, its number of employees, the risks of its investment offerings, and its safekeeping and use of investor funds. Their fraud scheme involved more than 800 victims throughout the U.S. and Canada, many of whom were elderly. The cases are being prosecuted by the U.S. Attorney’s Office for the Eastern District of Virginia and the Criminal Division of the Department of Justice and investigated by the Virginia Financial and Securities Fraud Task Force, which includes the U.S. Postal Inspection Service, IRS-CI and the FBI. The SEC previously filed a parallel civil case.
Thomas Petters’ Coconspirators Assisted in Carrying Out Ponzi Scheme
Seven coconspirators of Thomas J. Petters were sentenced to prison in the District of Minnesota in September 2010: Robert White, Larry Reynolds, Michael Catain, James Wehmhoff, Greg Bell, Harold Katz, and Deanna Coleman. Petters used a successful corporation for over a decade to perpetrate a scheme that defrauded investors of $3.4 billion in the largest fraud case in Minnesota history. Through his company, Petters Group Worldwide LLC (PGW), Petters obtained loans from hedge funds and investment groups for the stated purpose of financing sales to well-known big box retailers, such as Costco and Sam’s Club. The investigation revealed that the purchase and subsequent sale of merchandise to the retailers were actually fabricated transactions supported by fictional documentation. Petters was convicted of mail and wire fraud, conspiracy and money laundering charges in 2009 and was sentenced in April 2010 to 50 years in prison. The cases were prosecuted by the U.S. Attorney’s Office for the District of Minnesota and investigated by the FBI and IRS-CI.
Internet-Based Fraud Targeted the Deaf Community
On Oct. 6, 2010, the SEC obtained a temporary restraining order and emergency order freezing the assets of Imperia Invest IBC. According to the SEC’s complaint, Imperia solicited investors through the Internet, claiming it would use the investor funds to purchase Traded Endowment Policies (TEPs), the British term for viatical settlements. Imperia falsely promised to pay investors—the majority of whom are members of the deaf community—a guaranteed return of 1.2 percent per day. The SEC also alleges that Imperia’s website said that investors could only access their profits by purchasing a Visa debit card from Imperia, but Imperia has no relationship with Visa and was using the Visa name without authorization. Through its website and a series of offshore PayPal style bank accounts, Imperia raised in excess of $7 million from at least 14,000 investors worldwide, including 6,000 investors in the U.S. who have invested in excess of $4 million with Imperia.
Chicago Man Operated Ponzi Scheme
On Oct. 7, 2010, the SEC charged a Chicago-area company and its owner for perpetrating a Ponzi scheme in which they promised investors extraordinary returns generated from a purportedly successful real estate business. The SEC alleges that Robert R. Anderson of Mt. Prospect, Ill., issued promissory notes through his company Rosand Enterprises that he claimed would generate investor returns ranging from 10 to 20 percent per month. Anderson misrepresented to investors that Rosand Enterprises purchased, constructed, rehabbed, and sold homes in the Chicago area and other locations. However, Anderson was not making any money in the real estate market and was instead conducting a Ponzi scheme to pay earlier investors with funds from new investors. He also helped himself to investor money to buy cars, make hefty credit card payments, and pay for his daughter's wedding. The SEC’s complaint, filed in U.S. District Court in Chicago, alleges that Anderson raised approximately $12 million from at least 77 investors between approximately December 2005 and May 2008.
Two Florida-Based Fund Managers Facilitated Petters Ponzi Scheme
On Oct.14, 2010, the SEC charged Bruce F. Prevost and David W. Harrold and their firms with fraudulently funneling more than a billion dollars of investor money into a Ponzi scheme operated by Minnesota businessman Thomas J. Petters. The SEC alleges that Prevost and Harrold falsely assured their investors and potential investors that the flow of their money would be safeguarded by collateral accounts and described a phony process for protecting their assets. When Petters was unable to make payments on investments held by the funds they managed, Prevost, Harrold, and their firms concealed it from investors by concocting sham note exchange transactions with Petters, who the SEC charged last year along with an Illinois-based hedge fund manager who also facilitated the scheme. The SEC’s complaint alleges that Prevost, Harrold, and their firms invested more than $1 billion in hedge fund assets with Petters while pocketing more than $58 million in fees.
Florida Man Victimized Haitian-Americans in $14 Million Scam
Ronnie E. Bass Jr. was convicted in the Southern District of Florida on Oct. 25, 2010, for his participation in a Ponzi scheme operated from February 2008 through January 2009. Bass and his coconspirators engaged in a classic affinity fraud which sought to exploit the common interests and trusts of a certain group of individuals. Bass and others solicited and targeted members of the Haitian community to invest in Homepals LLC. Homepals offered investments in “unsecured notes” sold by the defendants that promised to double investor funds in 90 days. By November 2008, Homepals could not generate enough investor funds to pay off the existing investors. The scam led to an estimated loss of $14.3 million to 500 victims. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Florida and investigated by the FBI, with cooperation from the SEC, which previously had filed a civil action to enjoin the scheme.
Ponzi Scheme Operator Used Spanish-Language Media to Solicit Investors
Juan Rangel pleaded guilty on Oct. 27, 2010, for his role in operating a Ponzi scheme. Rangel and his company, the Commerce-based Financial Plus Investments, recruited new investors through Spanish-language newspapers and magazines, as well as in radio advertisements and infomercials broadcast on television. Rangel and Financial Plus promised to pay investors guaranteed returns of 60 percent each year out of the profits from Financial Plus’ real estate investments and lending business. However, Rangel admitted that Financial Plus did not make any actual profits from real estate or lending. Rangel instead used the new investors’ money to make payments to other investors and for his own personal use, including the monthly mortgage payments on his $3 million home and monthly payments for his Lamborghini sports car. Rangel also admitted that he and others operated a separate mortgage fraud scheme that targeted Latino homeowners at risk of losing their homes by offering them help to avoid foreclosure. The U.S. Attorney’s Office for the Central District of California is prosecuting the case and the FBI, U.S. Postal Inspection Service and IRS-CI are investigating the case.
Owners of Trading Company Allegedly Defrauded Investors
Craig Karlis and Ahmet Devrim Akyil were indicted on Oct. 28, 2010, in the District of Massachusetts. Karlis was charged with nine counts of wire fraud and two tax crimes and Akyil was charged with 10 counts of wire fraud. The indictment alleges that Karlis and Akyil founded Boston Trading and Research (BTR) and recruited customers to open accounts with BTR to trade in the foreign currency exchange market. Karlis and Akyil allegedly made a series of misrepresentations to customers about how BTR operated and about what they did with customer money. They allegedly diverted millions of dollars from BTR customer accounts to pay BTR’s business expenses and their personal expenses, such as houses, cars and jewelry. Karlis and Akyil told customers that BTR employed strategies to reduce risk, when in fact they did not. By July 2008, BTR had approximately 1,200 customers and more than $35 million under management. On the same day as the indictment was filed, the SEC filed a civil complaint against Karlis, Akyil, and BTR for the same conduct, alleging that Karlis, Akyil, and BTR sent misleading account statements to investors while stealing their funds and incurring major trading losses. The criminal case is being prosecuted by the U.S. Attorney’s Office for the District of Massachusetts, with cooperation from the SEC and the Commodity Futures Trading Commission (CFTC), and investigated by the FBI and IRS-CI. The civil case against Karlis, Akyil, and BTR is being handled by the SEC.
Michigan Man Operated an Oil-Related Ponzi Scheme
On Nov. 10, 2010, the SEC filed civil charges against a Grosse Point, Mich., man and his company, Zada Enterprises LLC, for allegedly conducting a $27.5 million Ponzi scheme in which investors were told that their money would be put in oil-related investments—earning as much as 48 percent. In a court filing seeking to shut down the scheme, the SEC alleged that the company owner, Joseph Paul Zada, also claimed he had exclusive access to certain oil investments, had business contacts in the Middle East and had earned substantial returns from prior oil-related investments. Instead, according to the SEC, Zada was using the money from approximately 60 investors to buy a home in Grosse Point Shores, an equestrian facility in Palm Beach County, jewelry, and cars.
Investment Manager Operated $40 Million Ponzi Scheme
Investment manager Philip Barry was convicted on Nov. 17, 2010, of one count of securities fraud and 33 counts of mail fraud in the Eastern District of New York. Barry operated a long-standing and large-scale Ponzi scheme. Approximately 800 individuals invested a total of more than $40 million in Barry’s business, the Leverage Group. To induce investments and discourage withdrawals, Barry, among other things, guaranteed specified positive rates of return, issued account statements that showed growing account balances, represented that investing in the Leverage Group was safe and promised that withdrawals could be made easily. The evidence at trial established that Barry actually was running a Ponzi scheme, paying returns to Leverage Group investors not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. Barry never produced or earned the rates of return that he advertised and cited in clients’ account statements. Rather, the positive rates of return were simply pre-determined interest rates made up by Barry. In bankruptcy testimony given by Barry, he estimated that he owed his investors $60 million. In bankruptcy proceedings, the U.S. Trustee Program secured from Barry a waiver of Chapter 7 discharge. The criminal case was prosecuted by the U.S. Attorney’s Office for the Eastern District of New York and investigated by the FBI, in coordination with the SEC, which previously had filed a related civil action.
Texas Man and Others Sold Fraudulent Oil and Gas Investments
The SEC filed a lawsuit in Dallas on Sept. 1, 2010, alleging that Jason A. Halek of Southlake, Texas, and two companies he owns and controls—Halek Energy LLC and CBO Energy Inc.—fraudulently sold investments in Texas oil and gas projects. The complaint alleges that, between June 2007 and September 2009, Halek, Halek Energy and CBO Energy raised approximately $22 million from at least 300 investors nationwide by making materially false and misleading statements about the risks of the oil and gas projects, the use of investor funds, and potential returns from the investments. On Nov. 30, 2010, the SEC also charged Priscilla Sabado, a broker-dealer and investment adviser representative at AXA Adisors, LLC, with fraudulently selling Halek Energy interests to her clients, including a financially unsophisticated 24-year old blind man.
Two Mexican Companies Allegedly Issued False Statements
On Dec. 1, 2010, the CFTC charged two Mexican companies, MXBK Group S.A. de C.V and its foreign currency (FOREX) trading division, MBFX S.A., with issuing false customer statements and misrepresenting trading results on their website in connection with their FOREX trading enterprise. The action was filed in the U.S. District Court in Salt Lake City. According to the complaint, the defendants have accepted at least $28 million from over 800 U.S. customers for the purpose of trading FOREX in pooled accounts on behalf of those customers. The complaint further alleges that during the period of October 2005 through April 2009, the MXBK entities lost approximately $29 million in customer funds during which time they falsely reported overall trading profits. In a related action, the SEC filed a civil injunctive action alleging that Clifton K. Oram, Don C. Winkler and William R. Michael engaged in fraud by offering and selling investments in MXBK Group’s FOREX trading program. The SEC’s complaint alleges that Oram, Winkler and Michael raised tens of millions of dollars and attracted investors by touting impressive monthly returns posted on MXBK Group’s website. In reality, neither Oram, Winkler nor Michael understood how the FOREX market or FOREX trading functioned, and they blindly accepted MXBK Group’s representations about its background and track record.

Operation Broken Trust: Statistics Sheet
Operation Period: August 16 - December 1, 2010
Summary of results:
Criminal Cases:
Total Number of Cases: …………………….231
Total Number of Defendants: …………….. 343
Total Number of Arrests: ………………….. 64
Total Number of Info/Indictments: ……….. 158
Total Number of Convictions: …………….. 104
Total Number of Sentencings: …………….. 87
Total Estimated Loss Amount: …………… $8,384,150,054
Total Estimated Victims: ………………… 120,381
Civil Cases:
Total Number Civil Enforcement Actions: ... 60
Total Number of Defendants: ………………189¹
Total Estimated Loss Amount: ……………. $2,134,681,524²
Total Estimated Victims: ………….………. 23,566³
¹ This number includes individuals and corporations names as defendants in U.S. District Court actions and/or respondents in administrative proceedings, but does not include "doing business as" (d/b/a) or "formerly known as" (f/k/a) entities where named in those actions.

² The estimated loss amount does not include more than $175,000,000 of debt owed to victims as a consequence of the underlying fraud schemes, which was precluded from Chapter 7 bankruptcy discharge as a result of civil enforcement actions by the U.S. Bankruptcy Trustee.

³ The estimated number of victims does not include over 3,500 victims in ongoing bankruptcy cases.

FBI’s Top Ten News Stories for the Week Ending Decembre 17, 2010

2010-12-23T21:53:00.001-08:00

Portland: Federal Indictment Charges Three in Scheme to Evade Iran Embargo and Defraud the IRS with False Charitable Donations
A jury charged Hossein Lahiji, Najmeh Vahid, and Ahmad Iranshahi in a two-count indictment for conspiracy to defraud the U.S. and to commit money laundering. The defendants allegedly transferred purported donations totaling more than $1.8 million to a Portland charity and invested the funds in Iran, in violation of the Iranian embargo. Full Story
New York: Three Insiders at Public Companies and One Executive of Expert-Networking Firm Charged with Conspiring to Distribute Inside Information to the Firm's Clients
James Fleishman was arrested on wire fraud and conspiracy charges for conspiring to provide confidential information, including material, nonpublic information, to the firm's clients, including hedge funds. Three additional individuals were arrested on wire fraud charges. Full Story
Indianapolis/Headquarters: Seeking Information in Alternate Billing Corporation Matter
The FBI is seeking information from consumers who believe they were improperly charged on their telephone bill for services neither ordered nor authorized related to Alternate Billing Corp., or any of its affiliated companies or services. Full Story
Phoenix: Fugitive Extradited from Mexico to Face Trial

Victor Flores was extradited to the U.S. from Hermosillo, Mexico and had his initial appearance. The defendant will be detained until his trial on February 8, 2011. Full Story
Columbia: "Three Hebrew Boys" Sentenced in $82 Million Ponzi Case

The men who call themselves the "Three Hebrew Boys"—Tony Pough, Joseph Brunson, and Timothy McQueen—were sentenced to the highest fraud sentences in the history of the federal district and ordered to pay $82 million in restitution to those they defrauded. Full Story
Honolulu: FBI Captures Fugitive Couple in Arizona
Daphne Hearn, Acting Special Agent-in-Charge of the Honolulu Field Office, announced the arrest of fugitive husband and wife Perry and Rachelle Griggs in Kingman, Arizona. Full Story
Albuquerque: Former APD Officer Convicted on Obstruction of Justice Charge

Brad Ahrensfield, a former Albuquerque police officer, was convicted on an obstruction of justice charge. He remains out of custody on conditions of release pending his sentencing hearing and faces up to 20 years in prison. Full Story
San Diego: Reward of $20,000 Offered in "Geezer Bandit" Investigation
The FBI, local law enforcement, and several local banks are offering a combined reward of $20,000 for information leading to the arrest and conviction of the "Geezer Bandit." The Geezer Bandit"is believed to be responsible for robbing 12 banks since August 2009. Full Story
Miami: Alonzo Mourning to Receive the FBI Director's Community Leadership Award

John V. Gillies, Special Agent in Charge of the Miami Field Office, announced Alonzo Mourning as the recipient of the 2010 Director's Community Leadership Award at the Overtown Youth Center in Miami, Florida. Full Story
Minneapolis: Former IRS Agent Sentenced for Soliciting a Bribe

Roger Combs, a former Internal Revenue Service agent, was sentenced to 33 months in prison for soliciting and receiving a $9,700 bribe. Full Story

Hal Turner entenced to 33 Months in Prison for Threatening Three Federal Appeals Court Judges in Chicago

2010-12-21T20:37:00.000-08:00

CHICAGO—Hal Turner, an Internet radio talk show host and blogger, was sentenced today to 33 months in federal prison in federal court in Brooklyn, N.Y., for threatening to assault three federal appeals court judges in Chicago in retaliation for their 2009 ruling upholding handgun bans in Chicago and a suburb. Turner, 48, of North Bergen, N.J., has been in federal custody since he was convicted by a jury on Aug. 13, 2010, after a trial.

U.S. District Judge Donald Walter, of the Western District of Louisiana, also ordered Turner to serve six months in home confinement after he is released from custody as a condition of three years of supervised release. The judge found that Turner’s federal sentencing guideline range was 33 to 41 months, and Turner faced a maximum penalty of six years in prison and a $250,000 fine. Judge Walter was assigned to preside over the case after federal trial judges in Chicago were recused and he ordered the case moved to Brooklyn, where two previous trials—one in December 2009 and the second in March 2010—ended in mistrials after the juries were deadlocked.
Turner was arrested and charged in June 2009 for writing Internet postings that month that proclaimed “outrage” over a handgun decision by Chief Judge Frank Easterbrook and Judges Richard Posner and William Bauer, of the Chicago-based 7th U.S. Circuit Court of Appeals, stating, among other things: “Let me be the first to say this plainly: These Judges deserve to be killed.” The postings included photographs, phone numbers, work address, and room numbers of these judges, along with a photo of the building in which they work and a map of its location.
Turner was charged with threatening to assault and murder three federal judges with intent to retaliate against them for performing official duties. All three judges testified at the trial in August.
“The criminal justice system simply could not function if an individual’s efforts to intimidate a judge through threats of violence were protected from prosecution and punishment,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. “We live in a system where judges should be able to do their jobs and not have to look over their shoulders.” Mr. Fitzgerald thanked the U.S. Attorney’s Offices for the Eastern District of New York and the District of New Jersey for their assistance. Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, which investigated the threats, thanked the FBI Office in Newark for providing local assistance.
According to the evidence, several lawsuits had challenged handgun bans in Chicago and suburban Oak Park after the U.S. Supreme Court ruled in 2008 that the Second Amendment entitled handguns at home for self-protection. On June 2, 2009, the 7th Circuit issued an opinion in National Rifle Association v. Chicago, Nos. 08-4241, 08-4243 & 08-4244, affirming a district court’s decision to dismiss the cases challenging the local handgun bans. The unanimous decision was written by Chief Judge Easterbrook and joined by Judges Posner and Bauer.
On June 8, 2009, law enforcement agents were directed to postings on a web site. The front page of the site contained an entry dated June 2, 2009, that was titled: “OUTRAGE: Chicago Gun Ban UPHELD; Court says ‘Heller’ ruling by Supreme Court not applicable to states or municipalities!” In addition to proclaiming “These judges deserve to be killed,” the entry noted that it was the same 7th Circuit Court of Appeals that decided the case of Matt Hale, a white-supremacist who was imprisoned after being convicted of soliciting the murder of a U.S. District Court judge in Chicago. The entry further noted that the same judge’s mother and husband were murdered by a gunman in her home. The posting then stated:

“Apparently, the 7th U.S. Circuit court didn’t get the hint after those killings. It appears another lesson is needed.”
The posting was updated the next morning on June 3, 2009, with the following content:

“Judges official public work addresses and a map of the area are below. Their home addresses and maps will follow soon. Behold these devils.”
Below this headline, the entry listed the names, photos, phone numbers, work addresses, and room numbers of the three judges involved in the handgun decision, as well as a photo of the Dirksen Federal Courthouse in Chicago and a map. The photo of the building had been modified to include arrows and a label referencing “Anti-truck bomb barriers.”
The government was represented by Assistant United States Attorneys Diane MacArthur, William Ridgway and William Hogan.

Jose Hernandez Sentenced to Three Years in Prison for Bribery in Probe of Crooked Permits

2010-12-17T20:34:00.000-08:00

City Inspector Sentenced to Three Years in Prison for Bribery in Probe of Crooked Permits
CHICAGO—A City of Chicago building inspector was sentenced today to three years in federal prison after being convicted at trial in September on bribery charges for accepting two $1,000 cash bribes from a cooperating contractor and demanding two $2,000 cash bribes from developers to approve inspections at residential and commercial construction sites, federal law enforcement officials and the city's Inspector General announced today. The defendant, Jose Hernandez, was sentenced for soliciting or obtaining cash bribes totaling approximately $30,000 from contractors, developers and homeowners since at least 2005.

Hernandez, 47, of Chicago, a building inspector since 1988, was also fined $10,000 by U.S. District Judge David Coar, who ordered Hernandez to begin serving his sentence on Jan. 31, 2011.
To date, 21 defendants, including 15 current or former city employees, have been convicted as part of a federal corruption investigation, code-named Operation Crooked Code.
Evidence at Hernandez's trial in September showed that he had a corrupt relationship with a permit "expediter" since approximately late 2005, and with a contractor since 2007, both of whom have since cooperated in the investigation. Hernandez accepted a $1,000 bribe from the cooperating contractor on Aug. 21, 2008, when Hernandez performed what's known as a "rough inspection"—an inspection of the framing, electrical wiring, plumbing and ventilation ducts before the interior walls are sealed—at a single-family residence in the 9900 block of South Throop in Chicago. At the time of the inspection, the interior walls were covered with drywall, rendering a legitimate inspection impossible, but Hernandez signed the building permit, saying "rough frame approved."
Hernandez also accepted $1,000 from the same contractor on Aug. 10, 2009, to approve a residential rough inspection in the 700 block of West Cornelia. He was also convicted of demanding $2,000 bribes from two different developers to not issue stop work orders at commercial buildings at 650 North Dearborn in June 2007 and at 11250 South Michigan in April 2006.
The sentence was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Thomas P. Brady, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Joseph Ferguson, Inspector General for the City of Chicago.
Anyone with information about alleged corruption in the city permit process is encouraged to contact the City Inspector General's Office either through their hotline, (866) 448-4754, or through their website at www.chicagoinspectorgeneral.org

Donald R. Peppers Sentenced to 27 Years in Prison for Producing, Transporting, and Possessing Child Pornography

2010-12-16T19:56:00.000-08:00

CHICAGO—A former Hoffman Estates man was sentenced yesterday to 27 years in federal prison for manufacturing, transporting, and possessing child pornography. The defendant, Donald R. Peppers, 36, pled guilty in August, admitting that he had produced a video of himself sexually molesting a 1-year-old minor knowing that it would be disseminated in interstate commerce via computer. Using an online profile in the name of "illinoisdonboy31," Peppers communicated via computer about brutally sexually molesting children, and he created and traded images of children engaged in sexually explicit conduct.

The sentence was imposed by U.S. District Judge William Hibbler. Peppers must serve at least 85 percent of his sentence before he is eligible for release and there is no parole in the federal prison system. The sentence was announced today by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
Peppers has been in federal custody since June 3, 2009, when he was arrested by FBI agents in Cedar Rapids, Iowa, where he was traveling on business at the time. According to court documents, Peppers had been identified by the FBI's Innocent Images Task Force in Virginia as a possible distributor of child pornography over the Internet.
A search of Peppers' residence by the FBI and Hoffman Estates police following his arrest yielded a collection of hundreds of thousands of images and videos of child pornography, which he had stored on various computer hard drives.
According to his guilty plea, in May 2009, Peppers began communicating with an undercover agent via an internet chat room, using the name "illinoisdonboy31." During these chats, Peppers stated that he collected child pornography and had engaged in illicit sexual conduct with minors. Peppers sent the undercover agent video files depicting the sexual molestation of minors by an adult male, including the one in which Peppers himself molested the infant victim.

FBI Seeking Information in Alternate Billing Corporation Matter

2010-12-16T10:30:00.000-08:00

FOR IMMEDIATE RELEASE NATIONAL PRESS OFFICE

Dec. 16, 2010 (202) 324-3691

www.fbi.gov

The FBI is seeking information from consumers who believe that they have been improperly charged on their telephone bill for services neither ordered nor authorized related to Alternate Billing Corp, 24078 Greenway Road, Forest Lake, Minnesota, or any of its affiliated companies or services listed below.

800VMailbox

BusinessSEOPro

Digital VMail

Durham Technology

eProtectID

eSafeId

Identity Holdings

InfoCall

Instant 411

InstantSEOPro

Matchgamepro

Mobile 411 Plus

My411Connect

MyIDSafe

MyIProducts

NeedTheInfo

ProIdentityProtect

Safeguard My Credit

Streaming Flix

Streaming Flix - FamilyWebSafety

Streaming Flix - Iconz of Rock VIP

Streaming Flix - Mobile

Streaming Flix - National Lampoon

Streaming Flix - No Good TV Digital

Streaming Flix – UBD

Studio 127

Uvolve

VolCoff

Our inquiry is ongoing, and while we can’t provide any additional information at this time, we do need to hear from persons who believe they were improperly billed.

What we need to know:

§ Your basic contact information, including name, phone numbers, address, and e-mail address;

§ A list of which company/companies or service(s) billed you;

§ An estimate of your monetary loss; and

§ Whether or not you can provide documentation if requested in the future, such as copies of your telephone bills.

How to provide the above information:

§ Preferred Method—Via an online form on the FBI.gov website: http://forms.fbi.gov/alternate-billing-corp;

§ Via a dedicated e-mail address: telephone.victim@ic.fbi.gov; or

§ If you do not have access to a computer, you may mail your information to:

FBI Indianapolis

Alternate Billing Corporation Matter

575 N. Pennsylvania St, Room 679

Indianapolis, IN 46204

If you have investigative information that might help with this matter, please use our electronic public leads and tips form at https://tips.fbi.gov/.

If we determine that you are a victim, we will be in touch with you. Please note: Due to the number of expected responses, it may be some time before you hear back from us.

You may also call our toll free hotline at 1-855-235-6633 for recorded information regarding this issue. At this time we are unable to accept messages on this line because of the expected call volume.

Updates, as available, will be provided via fbi.gov and the outgoing message on the toll-free line. We thank you for your patience as we conduct a thorough investigation and work to obtain victims’ information.

FBI’s Top Ten News Stories for the Week Ending Decembre 10, 2010

2010-12-10T22:01:00.000-08:00

Baltimore: Maryland Man Charged in Plot to Attack Armed Forces Recruiting Center
Antonio Martinez, aka Muhammad Hussain, was charged with attempting to murder federal officers and employees and attempted use of a weapon of mass destruction against federal property. Full Story
DOJ/Multiple Field Offices: Financial Fraud Enforcement Task Force Announces Results of Largest-Ever Nationwide Operation Targeting Investment Fraud
The results of Operation Broken Trust were announced in multiple press conferences across the country. It was a nationwide operation organized by the Financial Fraud Enforcement Task Force to target investment fraud. To date, the operation has involved enforcement actions against 343 criminal defendants and 189 civil defendants for fraud schemes that harmed more than 120,000 victims nationwide. The operation's criminal cases involved more than $8.3 billion in estimated losses and the civil cases involved estimated losses of more than $2.1 billion. Operation Broken Trust is the first national operation of its kind to target a broad array of investment fraud schemes that directly prey upon the investing public. Full Story
Knoxville: Two Engineers Found Guilty of Stealing Goodyear Trade Secrets
A jury convicted Clark Alan Roberts and Sean Edward Howley, both former engineers with Wyko Tire Technology Incorporated, of stealing trade secrets from the Goodyear Tire and Rubber Company. Full Story
Chicago: Former Paint Manufacturing Chemist Sentenced to 15 Months in Prison for Stealing Trade Secrets Valued up to $20 Million

David Yen Lee, a former chemist for paint manufacturing company Valspar Corp was sentenced to 15 months in prison for stealing trade secrets valued up to $20 million. Full Story
Seattle: Washington Man Charged in Connection with Attempts to Ship Sensitive Military Technology to China

Lian Yang was charged in connection with an attempt to ship sensitive military technology to the People's Republic of China. Yang attempted to purchase and export 300 radiation-hardened, programmable semiconductor devices that are used in satellites. He was arrested in an FBI sting operation after attempting to smuggle the parts out of the U.S. Full Story
New York: Carl J. Shapiro and Others Agree to $625 Million Civil Forfeiture for Victims of Bernard L. Madoff's Ponzi Scheme
Carl J. Shapiro and various related and entities agreed to forfeit $625 million to the United States, all of which will be made available to the victims of the fraudulent investment advisory business which was owned and operated by Bernard L. Madoff. Full Story
Houston: U.K. Citizen Pleads Guilty to Conspiring to Bribe Nigerian Government Officials to Obtain Lucrative Contracts as Part of KBR Joint Venture Scheme

Wojciech J. Chodan, a former commercial vice president and consultant to a United Kingdom subsidiary of Kellogg, Brown & Root Inc., pled guilty to conspiring to violate the Foreign Corrupt Practices Act for his participation in a decade-long scheme to bribe Nigerian government officials to obtain engineering, procurement, and construction contracts o build liquefied natural gas facilities on Bonny Island, Nigeria that were valued at more than $6 billion. Full Story
Portland: Former Armored Car Driver, Together with His Wife and Son, Indicted in Connection with $3 Million Armored Car Theft
Archie Cabello, his wife, Marian, and their son, Vincent, were charged in a 51-count indictment with conspiracy to steal and possess bank money, making false statements in credit card applications, filing a false tax return, and money laundering. Full Story
Detroit: Four Detroit-Area Residents Arrested in Connection with $14.5 Million Home Health Care Fraud Scheme

Four Detroit-area residents were arrested by federal agents as part of a joint an ongoing investigation into a $14.5 million home health care fraud scheme. Full Story
Miami: Florida Physician Pleads Guilty to Conspiracy in Fraudulent Lobbying and Fund Raising Scheme

Alan D. Mendelsohn, a Florida physician, pled guilty to conspiracy to commit mail fraud, to make false statements, and to file false tax returns in connection with his role in a fraud scheme involving lobbying and fund raising for political candidates and organizations. Full Story

Seasons greatings from FBI Chicago

2010-12-08T12:41:00.000-08:00

FBI’s Top Ten News Stories for the Week Ending Decembre 3, 2010

2010-12-03T22:02:00.000-08:00

Minneapolis: Red Lake Man Sentenced for Voluntary Manslaughter
Ryan Roy Cloud was sentenced to 78 months in prison on one count of voluntary manslaughter for killing a 27-year-old Red Lake man on February 1, 2010. Full Story
New York: MS-13 Street Gang Leader Sentenced to 35 Years' Imprisonment for Murder
Wilver R. Lopez, a leader in the La Mara Salvatrucha (MS-13) street gang on Long Island, was sentenced to 35 years in prison for the murder of 24-year-old fellow MS-13 member Genaro Venegas. Full Story
San Diego: Former School Superintendent and Two College Professors Charged with Wire Fraud
Two former professors from San Diego State University and the former superintendent of El Centro Elementary School District were charged with fraud in connection with the use of federal grant monies obtained from the National Science Foundation and the U.S. Department of Education. Full Story
New Haven: Jury Finds Connecticut Man Guilty of Making Grenades, Selling Guns Intended for White Supremacist Group

A federal jury found Alexander DeFelice guilty of conspiracy and firearms offenses stemming from an alleged attempt to sell firearms and explosive grenades to what he thought was a white supremacist group located outside of Connecticut. Full Story
Los Angeles: Nigerian National Sentenced to 14 Years in Prison for Role in $2.7 Million International Lottery Scam

Emmanuel I. Onwuzulike, a Nigerian man involved in running several bogus lottery companies out of London, England, was sentenced to 14 years in federal prison andordered to pay full restitution for bilking mainly elderly victims out of more than $2.7 million. Full Story
Dallas: Lufkin Woman Pleads Guilty to Involvement in Murders
April Flanagan pled guilty to charges related to a double homicide of David Mitchamore and Christy Rochelle Brown, which took place in Nacogdoches in August 2007. Full Story
Phoenix: Loan Kickback Scheme Results in 68-Count Federal Grand Jury Indictment

A jury returned a 68-count indictment against William and Rhonda Liddle and Frank Ruiz. They are charged with committing fraud against AEA Federal Credit Union, located in Yuma and Parker, Arizona. The indictment alleges that William Liddle, former vice resident of business lending for AEA, conspired with Yuma businessman Frank Ruiz to approve business loans in exchange for almost $1 million in kickbacks to Liddle and his wife. Full Story
Philadelphia: Doctor Charged in Scheme to Submit Fraudulent Fen-Phen Claims
Dr. Abdur Razzak Tai was charged by indictment with 13 counts of mail and wire fraud in connection with a scheme to submit fraudulent Fen-Phen claims. Full Story
Washington Field: Singapore Airlines Cargo Pte Ltd. Agrees to Plead Guilty to Price Fixing on Air Cargo Shipments

Singapore Airlines Cargo Pte Ltd. agreed to plead guilty and to pay a $48 million criminal fine for its role in a conspiracy to fix prices in the air transportation industry. Full Story
Oklahoma City: Former Quest CFO to Serve 16 Years in Prison for Defrauding Company

David Grose was sentenced to serve 192 months in federal prison for wire fraud stemming from a scheme to defraud Quest Energy Partners, L.P., a publicly-traded oil and gas exploration and production business, out of $1 million. Grose was ordered to serve three years of supervised release upon release prison, forfeit $1 million in assets, and pay $1 million in restitution. Full Story

Bank robbery in Niles

2010-11-18T14:35:00.000-08:00

Update: december, 8, 2010
Marcel Herrera arrested by the FBI Chicago/ Niles Police

The TCF Bank located at 7759 N. Milwaukee Ave., Niles, IL was robbed at approximately 6:55 PM Tuesday.

Robber is described as a Hispanic/male; 5'10" tall, medium build, 25 – 30 years of age, scruffy facial hair with goatee, wearing a brown fedora with a black band and a small red feather, red or brown thick framed sunglasses, dark colored jacket, jeans, spoke good english (no accent). Verbally announced a robbery, no weapon was displayed. Photo attached.

FBI and Niles Police are investigating. If you know the suspect please call the authorities.

Cameron McKoy arrested by the FBI

2010-11-16T09:44:00.001-08:00

United States Department of Justice
Federal Bureau of Investigation

November 16, 2010 FBI, SPRINGFIELD DIVISION
http://springfield.fbi.gov

CHICAGO MAN ARRESTED FOR MAKING BOMB THREAT
AT WESTERN ILLINOIS UNIVERSITY.

Cameron McKoy, 18, of Chicago was arrested earlier today in Chicago, Illinois, by the FBI and Western Illinois University Police Department for his alleged involvement in a bomb threat made to Western Illinois University in October. McKoy is expected to make an initial appearance in the United States District Court in Peoria later today at which time more information regarding this charge will be available.