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Federal Criminal Defense Lawyers

Friday, July 15, 2011

www.McNabbAssociates.com

Kenneth Elliott McDowell, Wendy Hinton, William White, and Devin Jarmal Smith Indicted by a Baltimore, Maryland Federal Grand Jury for an Alleged Identity Theft Scheme
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 10:06 AM July 15, 2011

The U.S. Attorneys Office District of Maryland on July 14, 2011 released the following: FORMER HOSPITAL EMPLOYEE AND THREE OTHERS INDICTED IN IDENTITY THEFT SCHEME Stole the Financial and Identifying Information of Hospital Patients and Their Families Baltimore, Maryland A federal grand jury has indicted four individuals, including a former employee of the University of Maryland Medical Center (UMMC), in connection with a scheme in which the identifying information of UMMC patients and others was stolen and used to defraud financial institutions. The indictment was returned on July 6, 2011, and unsealed today upon the arrest of the following defendants: Kenneth Elliott McDowell, age 47; Wendy Hinton, age 21; and William White, age 54, all of Baltimore. The fourth defendant, Devin Jarmal Smith, a/k/a Sean Jones, age 20, also of Baltimore, is still being sought by law enforcement. The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Daniel S. Cortez of the U.S. Postal Inspection Service Washington Division; Baltimore Police Commissioner Frederick H. Bealefeld III; and Christa Phillips, Inspector General of the Housing Authority of Baltimore City. U.S. Attorney Rod Rosenstein said, The defendants are charged with preying upon seriously ill hospital patients and their families by using their personal information to access their credit accounts and even to open new credit accounts using their identities. Anyone who finds evidence that their names or credit cards have been used in a fraud scheme should report it to the authorities immediately.

Postal Inspector in Charge Daniel Cortez said, This investigation demonstrates the commitment of Postal Inspectors to pursuing identity thieves and others who misuse the U.S. mail for criminal purposes. The 17-count indictment alleges that McDowell, a former employee of UMMC, accessed patient files and obtained the personal financial and identity information of patients and other individuals who had agreed to pay for their medical treatment. From July 2009, through June 2011, McDowell then provided that information to his co-conspirators. According to the indictment, the defendants also stole the personal financial and identity information of their own family members and others with whom they came in contact. The indictment alleges that the defendants used the stolen information to open new credit accounts in the identities of the victims and other individuals and to access the existing accounts of the victims. The indictment alleges that in order to conceal the scheme, the defendants contacted customer service representatives for the various financial institutions, posing as the customers whose information had been stolen, and requested: that the addresses on the customers accounts be changed to addresses accessible to the defendants and other members of the conspiracy; that new checks, credit and/or debit cards be issued on the accounts and sent to the new address; and requested information about the compromised accounts. According to the indictment, the defendants then used the fraudulently obtained checks, debit and credit cards to access the victims bank accounts, purchase goods and merchandise, and obtain cash advances, without the victims knowledge or permission. Each of the defendants faces a maximum sentence of 30 years in prison for the conspiracy. Devin Smith also faces 30

years in prison for each of five counts of bank fraud and a mandatory two years in prison, consecutive to any other sentence imposed, for each of five counts of aggravated identity theft. Kenneth McDowell faces a mandatory two years in prison, consecutive to any other sentence imposed, for each of four counts of aggravated identity theft. Wendy Hinton and William White each also face a maximum of 30 years in prison for bank fraud and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. The defendants had an initial appearance in U.S. District Court in Baltimore today and were released under the supervision of U.S. Pretrial Services. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Baltimore City Police Department and the Housing Authority of Baltimore City Office of Inspector General for their work and expressed appreciation to the University of Maryland Medical Center for their cooperation and assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who is prosecuting the case. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Virginia Real Estate Businessman Pleads Guilty to Mortgage and Investment Fraud Schemes
(USDOJ: Justice News)
Submitted at 12:34 PM July 15, 2011

Alexander Otis Matthews, a Virginia real

estate businessman pleaded guilty today to fraud charges in connection with mortgage and investment schemes to

obtain more than $12 million in fraudulent loans.

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Chicago Federal Grand Jury Indicted Five Chicago Individuals on Federal Fraud Charges for Allegedly Receiving Kickbacks totaling at least $800,000
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:40 AM July 15, 2011

The U.S. Attorneys Office Northern District of Illinois on July 14, 2011 released the following: FORMER NORTH CHICAGO SCHOOL BOARD MEMBER AND TRANSPORTATION DIRECTOR AMONG FIVE DEFENDANTS INDICTED FOR ALLEGED ROLES IN $800,000 KICKBACK SCHEME INVOLVING STUDENT BUSING CONTRACTS CHICAGO A former North Chicago school board member and the districts former transportation director were indicted on federal fraud charges for allegedly receiving kickbacks totaling at least $800,000 from three co-defendants who controlled several different companies that received at least $21 million in student bus contracts over nearly a decade. All five defendants were charged in a 26-count indictment alleging that, between 2001 and August 2010, they schemed to defraud and deprive the citizens of North Chicago, located in Lake County, and the approximately 4,000student North Chicago Community Unit School District 187 (NCSD) of the honest services of former school board member Gloria Harper and former transportation director Alice Sherrod. The indictment was returned by a federal grand jury late yesterday and announced today 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 Alvin Patton, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The North Chicago School District cooperated with the investigation. Harper, 59, of North Chicago, who was a member of the NCSD board from 1999 to May 2009, and Sherrod, 59, of Gurnee, who was District 187s transportation director from 2001 to July 2010, allegedly used their positions to enrich themselves secretly by soliciting and accepting gifts and cash from their three co-defendants in exchange for favorable official action regarding student transportation contracts. Initially, Harper and Sherrod allegedly received kickbacks of approximately $4,000 to $5,000 a month but, by 2003, they were collecting approximately $20,000 a month, the indictment alleges. Also indicted were: Derrick Eubanks, 47,

of Lake Villa; Tommie Boddie, 66, of Wadsworth; and Barrett White, 52, of Matteson. All five defendants were each charged with six counts of wire fraud and various counts of soliciting or paying bribes. All but White were also charged with multiple counts of filing false federal income tax returns. All five defendants will be arraigned on dates still to be determined in U.S. District Court. The indictment seeks forfeiture of more than $9.67 million, as well as 48 buses and vans and seven personal automobiles. According to the indictment, from the late 1990s until mid-2003, the NCSD contracted with various companies to provide student transportation, including T&M Transportation, which was owned at least in part and controlled by Boddie, and Eubanks Transportation, which was owned at least in part and controlled by Eubanks. In approximately 2001, Harper and Sherrod met with Boddie and told him they would arrange for the NCSD to increase the number of students that T&M transported if Boddie agreed to pay them in return, and Boddie agreed. At Harpers request, White began acting as an intermediary, or bagman, receiving cash from Boddie, keeping some for himself, and providing the bulk to Harper, who, in turn, shared the money with Sherrod, the indictment alleges. To facilitate his role as the schemes bagman, White established DAmoto Transportation, which he used to funnel money from Boddies T&M company to Harper and Sherrod. Sometime in 2002 or 2003, White established BWT Transportation to replace DAmoto. In approximately May 2003, Harper allegedly suggested to Boddie and Eubanks that they join together to form one company to bid on NCSD transportation contracts. Both Harper and Sherrod told Boddie and Eubanks that if they won the contract they would have to split the profits with the two school officials, and the two men agreed to do so, the charges allege. As a result, Boddie and Eubanks created Safety First Transportation, Inc., which won the NCSDs transportation contract in 2003. Once Safety First began to receive school district payments, White allegedly converted Safety Firsts funds into cash to pay Harper for her to share with Sherrod, while White kept a portion for himself. Neither White nor his company, BWT, did any work for Safety First and their sole role was to funnel cash to Harper

and Sherrod, according to the indictment. As a result of an IRS audit of Safety First in 2006-2007, Safety First began providing funds to White as an employee, as well as continuing to provide him with funds as a contractor, in late 2006, even though he continued to provide no service other than paying kickbacks as an intermediary. Also as a result of the audit, Harper allegedly agreed that Whites portion of the proceeds should be increased to compensate him for the tax debt White owed the IRS. All five defendants agreed that an amount of Safety Firsts revenues from the NCSD would be excluded from the profits to be split with Harper and Sherrod and instead would be used to repay tax debts owed by Boddie, Eubanks and White, the charges allege. The fraud scheme and individual tax counts allege that Boddie and Eubanks filed false federal tax returns for Safety First claiming that they paid White hundreds of thousands of dollars in consulting fees and wages for assisting them in obtaining the transportation contract with NCSD. In fact, the indictment alleges that money paid to White was intended solely to fund the kickbacks to Harper and Sherrod in exchange for helping them win and maintain the transportation contract. In April 2008, the defendants allegedly agreed to set up a new company, Quality Trans, LLC, to replace Safety First and to assume its contracts with the school district. All five allegedly agreed to split among them Quality Transs profits, and Boddie, Eubanks and White continued to make cash payments to Harper and Sherrod. In June 2009, Quality Trans won a five-year contract to provide NCSD with transportation services. Various tax counts allege that Boddie and Eubanks took false deductions for the money that Safety First paid to White and which White then funneled as kickbacks to Harper and Sherrod. Other tax counts allege that Harper and Sherrod filed false individual tax returns failing to report the kickbacks they received as income. The government is being represented by Assistant U.S. Attorneys Matthew Getter and Greg Deis. Each count of wire fraud carries a maximum penalty of 20 years in prison, and each count of soliciting or paying bribes carries a maximum of 10 years in CHICAGO page 5

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Six More Charged in Houston Federal Criminal Court with a Series of Houston Area Armed Bank Robberies
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:35 AM July 15, 2011

The U.S. Attorneys Office Southern District of Texas on July 14, 2011 released the following: HOUSTON A sealed superseding indictment charging six more Houston area residents for their alleged involvement in a series of Houston area bank robberies including the New Years Eve robbery of a Pearland bank was unsealed today, United States Attorney Jos Angel Moreno announced today along with FBI-Houston acting Special Agent in Charge Russell D. Robinson and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge J. Dewey Webb announced today. With the arrest of these additional six defendants, a total of 13 defendants are now charged with conspiring to and committing a series of armed bank robberies of Houston area banks including the robbery of the Pearland Chase branch bank on Dec. 31, 2010. The 16-count superseding indictment was returned under seal on Wednesday, July 6, 2011, and completely unsealed today following the appearance of the last of the newly charged defendants before U.S. Magistrate Judge Stephen Smith in Houston. The six now charged in the superseding indictment include John Berley Scott aka Fresh, 30, Derrick Lashon Paley aka Crybaby, 33, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 25, Roderick Marshall Beagle, 39, Michael Dushon Duncan aka Mikey, 19, and Kelvin Dewayne Thomas aka Little Kevin, 21, all of Houston. One or more new defendants have been added to several of the already existing counts in the original indictment and also charged with new counts. Scott is charged with committing an armed bank robbery on Sept. 15, 2010, of the Amegy Bank located on the 300 block of N. Sam Houston Parkway in Houston; Scott along with Paley is also charged with committing an armed bank robbery on Oct. 12, 2010, of the Comerica Bank located on the 14600 block of Memorial Drive in Houston; Raymond Tierra Johnson aka T, 30, and Samuel Glen Bonner aka Glen, 39, are charged with Hostage Taking for their role in the New Years Eve robbery in Pearland. Three defendants were arrested in the Houston area this week. Paley was arrested on July 12, 2011, while Beagle

was arrested the following day. Thomas was arrested today. Paley has made his initial appearances before Judge Smith and been ordered to remain in custody pending a hearing on the governments motion to detain him without bond pending trial set for tomorrow, July 15, 2011, at 10:00 a.m. before Judge Smith. Beagles initial appearance is set for today at 2:00 pm before Judge Smith. Thomas is also expected to make his initial appearance before Judge Smith this afternoon with a setting for his detention hearing to be scheduled at that time. The fourth newly charged defendant, Duncan, was originally charged by criminal complaint for his role in the New Years Eve bank robbery in Pearland. He remains in federal custody without bond by order of the court and is expected to make his initial appearance to answer the charges in the superseding indictment in the near future. The remaining two newly charged defendants, Wilson Jr. and Scott are both presently in state custody on unrelated charges. Both are expected to be transferred into federal custody in the near future to answer the new charges. The seven others previously charged for their alleged involvement in this bank robbery spree and also named in the superseding indictment are Johnson and Bonner, along with Gregory Wayne Ferguson, 18, Larry Smith, 34, Arlington Davis Wilkes aka AD, 20, Carl Ray Turner Jr. aka CT, 24, and Edward Johnson, 26. The superseding indictment accuses all 13 defendants of conspiring together to rob several Houston area banks through force and intimidation including Wells Fargo branch banks on Grant Road on Aug. 23, 2010, Memorial Drive and Kimberly Lane on Oct. 7, 2010, the Coamerica Bank branch banks on the NW Freeway and the 14600 block of Memorial Drive, the Citibank Branch on Cypresswood on Sept. 14, the Amegy Bank on N. Sam Houston Parkway on Sept. 15, the Chase Bank branch on the NW Freeway in Cypress, Texas, on Oct. 27 and the Chase branch bank on North Main in Pearland, Texas, on Dec. 31, 2010. Each of these robberies is alleged as an individual substantive count against two or more of the various defendants. The seven other defendants previously charged by indictment for their alleged involvement in the robbery spree are presently in federal custody without bond pending trial.

The conspiracy, according to allegations in the indictment, involved casing banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers. The conspirators allegedly used lookouts during robberies and used stolen or hot cars as get-a-way vehicles to commit the offenses. According to the indictment, the coconspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken. Bank robberies were effected through the use of demand notes allegedly written by Smith and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands. Conspiracy to commit a bank robbery carries a maximum punishment of five years imprisonment and/or a $250,000 fine upon conviction. Each count of bank robbery carries a maximum punishment upon conviction of 20 years incarceration or 25 years if a firearms displayed and/or a $250,000 fine. Brandishing or discharging a firearm during and in furtherance of a bank robbery carries a mandatory punishments of seven and 10 years, respectively, which must be served consecutive to any sentences imposed for the underlying bank robbery conviction. hostage taking carries a maximum punishment of up to life in prison and/or a $250,000 fine. The charges against these defendants are the result of a federal investigation conducted by the FBI and the ATF with the substantial assistance and cooperation of the Houston Police Department, Harris County Sheriffs Office, Harris County Precinct 4 Constables Office, Harris County District Attorneys Office, Crimestoppers, Friendswood Police Department, Pearland Police Department and the Brazoria County District Attorneys Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts. Assistant U.S. Attorneys Suzanne Elmilady and Kebharu Smith are prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty through due process of law. SIX page 4

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Alvaro Lopez Tardon, Fabiani Krentz, David William Pollack, and Vincente Orlando Cardelle Indicted by a Miami Federal Grand Jury for Conspiracy to Launder Over $26 Million in Drug Proceeds
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:58 AM July 15, 2011

The U.S. Attorneys Office Southern District of Florida on July 14, 2011 released the following: INTERNATIONAL DRUG MONEY LAUNDERING INDICTMENT UNSEALED Wifredo Ferrer, United States Attorney for the Southern District of Florida and John V. Gillies, Special Agent in Charge of the Federal Bureau of Investigations (FBI), Miami Field Office, announce today the unsealing of an Indictment charging Alvaro Lopez Tardon of Miami Beach, Fabiani Krentz and David William Pollack of Miami and Artemio Lopez Tardon of Madrid, Spain, with a conspiracy to launder over $26 million in drug proceeds. Vincente Orlando Cardelle of Miami is also charged with bulk cash smuggling. This Indictment is being unsealed in conjunction with the arrests of numerous co-conspirators throughout Spain by the Spanish National Police. It is alleged that Alvaro Lopez Tardon (Alvaro) and his brother Artemio Lopez Tardon (Artemio), through a network of contacts in Colombia and with the assistance of Alvaros right-hand man David William Pollack (Pollack), arranged for the laundering of proceeds from multi-hundred kilogram quantities of cocaine smuggled from Colombia to Spain. Once in Spain, the cocaine was processed and distributed and the drug proceeds collected by other coconspirators. Artemio, who lives in Spain, would then send Alvaros money to the United States either by courier or via wire transfers. Once the money was in Miami, Fabiani Krentz (Krentz) and Pollack would assist Alvaro in laundering the money through the purchase of real estate and exotic automobiles. Conservatively, from 2004 to the present, it is alleged that

Alvaro has received over $26,000,000 in drug proceeds from Spain. On April 12, 2011, Vincente Orlando Cardelle, an associate of Alvaro, was stopped at Miami International Airport, on his way to Madrid, Spain and 21,605 euros believed to be proceeds from the sale of cocaine were seized from him. The real estate purchased by Alvaro and his associates includes condos at 100 South Point Drive, Miami Beach, FL; 1000 South Point Drive, Miami Beach, FL; 1155 Brickell Bay Drive, Miami, FL; and 325 S. Biscayne Boulevard, Miami, FL. The exotic automobiles include a Bugatti Veyron, a Ferrari Enzo, a Rolls-Royce Ghost, a Mercedes-Benz SLR McLaren, a Mercedes-Benz Maybach 57S, a Bentley Continental GT, an Aston Martin DB9, a Lamborghini Murceliago, a Lamborghini Gallardo, an Audi R8 and other MercedesBenz and BMWs. If convicted, Alvaro, Artemio, Krentz and Pollack each face a maximum term of imprisonment of 20 years. If convicted, Cardelle faces a maximum term of imprisonment of 5 years. International money launderers can no longer seek refuge behind jurisdictional barriers. The outstanding cooperation among international law enforcement agencies and governments leaves no place to hide for those who profit from the drug trade, said United States Attorney Wifredo Ferrer. From the beaches of Miami to the shores of Spain, the fight against crime has no boundaries, said Special Agent in Charge John V. Gillies of the FBI Miami Division. This is another outstanding example of an international partnership, this time with the Spanish National Police, that disrupted a major drug organization. This Indictment is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force

(OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement. Mr. Ferrer and Mr. Gillies would like to commend the US Immigration and Customs Enforcements Homeland Security Investigations, the Coral Gables Police Department, the US Drug Enforcement Administration, US Immigration and Customs Enforcement, the Internal Revenue Service, Criminal Investigation Division, the Miami Police Department, the Miami-Dade Police Department, the Miami Gardens Police Department, the Monroe County Sheriffs Office, the North Bay Village Police Department and the Spanish National Police for their assistance with this investigation. The case is being prosecuted by Assistant United States Attorney Tony Gonzalez and is before Judge Joan A. Lenard. An Indictment is only an accusation, and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

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

Organized Romanian Criminal Groups Targeted by DOJ and Romanian Law Enforcement
(USDOJ: Justice News)
Submitted at 9:36 AM July 15, 2011

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.

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Theodore L. Freedman, a Lawyer, Indicted in Manhattan Federal Court with Four Counts of Tax Fraud in Connection with Alleged False and Fraudulent Statements to the IRS
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 10:28 AM July 15, 2011

The U.S. Attorneys Office Southern District of New York on July 14, 2011 released the following: FORMER PARTNER AT MAJOR INTERNATIONAL LAW FIRM CHARGED IN MANHATTAN FEDERAL COURT WITH TAX FRAUD VIOLATIONS PREET BHARARA, the United States Attorney for the Southern District of New York, and CHARLES R. PINE, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal investigation Division (IRS-CID), announced that THEODORE L. FREEDMAN, a former senior partner at a major international law firm (the Law Firm), was charged yesterday in Manhattan Federal Court with four counts of tax fraud in connection with false and fraudulent statements he allegedly made on his tax returns that resulted in more than $1 million in losses to the IRS. Among other things, FREEDMAN, 63, misrepresented his partnership income at the Law Firm by approximately $2 million, and fraudulently claimed over $500,000 in expenses for a sole proprietorship law practice that did not exist. FREEDMAN voluntarily surrendered to authorities this morning, and will be arraigned before U.S. Magistrate Judge JAMES C. FRANCIS IV later today. Manhattan U.S. ATTORNEY PREET BHARARA stated: As alleged, Theodore Freedman, an accomplished and wellcompensated attorney, abdicated his legal and ethical responsibilities by cheating on his taxes. Just like every ordinary citizen,

privileged professionals have to pay their taxes too, and we will continue working with our partners at the IRS to ensure that they do. IRS Special Agent-in-Charge CHARLES R. PINE said: To build faith in our nations tax system, honest taxpayers need to be reassured that everyone is paying their fair share. The IRS-Criminal Investigation Division, together with the Department of Justice will investigate and prosecute those who violate our tax system. According to the Indictment filed yesterday: FREEDMAN was a senior partner in the New York office of a major United States law firm, where he was a member of the Law Firms restructuring group. In that capacity, FREEDMAN received income that was calculated as a percentage of the Law Firms partnership income for a given year. The Law Firm issued FREEDMAN, the IRS form that reports an individual partners share of income or loss from the partnership. According to the form, FREEDMANs aggregate income for calendar years 2001 through 2004 was approximately $5,388,699. As charged in the Indictment, FREEDMAN self-prepared, signed, and filed tax returns for calendar years 2001 through 2004. Rather than reporting the true and correct amount of partnership income he received from the Law Firm for the years in question, FREEDMAN falsely and fraudulently under-reported his income in the aggregate amount of approximately $2,097,211. In addition, FREEDMAN also attached to each of his tax returns for those same years a Schedule C, which is supposed to report the amounts of income and

expenses, and the resulting net profit or loss, for a taxpayers self-owned business. On each of the Schedules C for these tax years, he falsely and fraudulently claimed to have sustained significant losses for a fictitious sole proprietorship a legal practice in the total aggregate amount of approximately $542,358. That sole proprietorship was fictitious. In total, FREEDMANs false statements on his self-prepared returns resulted in a tax loss to the IRS of more than $1 million. FREEDMAN faces a maximum sentence of three years in prison on each of the tax fraud counts, for a total maximum of 12 years in prison. Mr. BHARARA praised the work of the Internal Revenue Service, Criminal Investigation Division. This case is being handled by the Offices Complex Frauds Unit. Assistant United States Attorney E. DANYA PERRY is in charge of the prosecution. The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

CHICAGO
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prison, as well as a $250,000 fine. 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. Filing a false federal income 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 civilly liable to the Government for any and all back taxes, as well as a civil fraud penalty of 75 percent of the

underpayment plus interest. 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. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of

the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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Charlottesville Federal Grand Jury Indicted Individuals for an Alleged Contraband Cigarette Conspiracy They Organized
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 10:38 AM July 15, 2011

The U.S. Attorneys Office Western District of Virginia on July 14, 2011 released the following: GROUP INDICTED FOR CONTRABAND CIGARETTE TRAFFICKING Four Men Are Accused Of Trafficking Cigarettes from Virginia to Northern States CHARLOTTESVILLE, VIRGINIA The owner of a Citgo gas station in Fredericksburg, Va, two of his employees and a man from the Bronx, N.Y., were indicted by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville this week on charges related to an alleged contraband cigarette conspiracy they organized. In an indictment returned under seal on July 13, the grand jury has charged Vijay Nanubhai Patel, 50, Pullin P. Amin, 30, and Diveshkumar Desai, 23, all of Fredericksburg, Virginia and the Bronx individual, whose identity remains under seal. The grand jury also charged Mars and Roshni, Inc., the company that owns the Citgo gas station. The three defendants who appeared in court today have been charged with one count of conspiracy to traffic in contraband cigarettes and six counts of trafficking in contraband cigarettes. Patel, Amin, Desai and Mars and Roshni Inc., have each been charged with one additional count of conspiracy in regards

to the failure to maintain cigarette sales records. According to the indictment, Patel is the President of and directs the day-to-day operations of Mars and Roshni, which owns and operates C&J Citgo on Jefferson Davis Highway in Fredericksburg. Amin and Desai were employees of M&R and Citgo and worked under Patels management and direction. From at least 2009, Patel, Amin and Desai purchased cigarettes from several legitimate sources in the Eastern and Western Districts of Virginia. The three sellers also purchased taxed and untaxed cigarettes from an undercover law enforcement officers in the spring of 2011. As part of the alleged conspiracy, the sellers would hold large amounts of cigarettes for cigarette traffickers who would drive to the Citgo station to purchase contraband cigarettes in amounts exceeding fifty cartons (10,000 cigarettes) and transport them to points outside of Virginia, including New York and Pennsylvania, for resale. According to the indictment, between June 11, 2010 and April 21, 2011, alone, the sellers sold approximately 38,097 cartons of cigarettes to New York traffickers, costing the City and State of New York $4,867,024.50 in cigarette taxes and $431,948.42 in sales taxes. During the peak of their alleged criminal activity, Patel, Amin and Desai were selling approximately $1 million in cigarettes a month to cigarette traffickers. Each defendant faces a maximum

possible penalty of five years in prison and/or a fine of up to $250,000 for each count they are charged. Mars and Roshni faces a possible monetary fine if convicted. In addition, restitution may be ordered in this case. The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Office of the Attorney General of Virginia, the Spotsylvania County Sheriffs Office and the Spotsylvania County Commonwealth Attorneys Office. Assistant United States Attorney Ronald Huber and Special Assistant United States Attorneys Ramin Fatehi and Thomas Shaia are prosecuting the case for the United States. A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Seeking Great Ideas to SAVE Dollars


Tracy Russo (USDOJ: Justice Blog)
Submitted at 1:19 PM July 15, 2011

This week, the Attorney General joins President Obama in announcing the launch of the 2011 SAVE Award. Unveiled in 2009, the SAVE Award (Securing Americans Value and Efficiency) collects ideas from thousands of federal employees about how the federal government can save money and perform better. In an email to employees, Attorney General Eric Holder encouraged [...]

Former President of Lee Dynamics International Pleads Guilty to Conspiracy and Bribery Related to Department of Defense Contracts in Iraq
(USDOJ: Justice News)
Submitted at 4:21 PM July 15, 2011

Internet Communications Firm Owners Plead Guilty to Employment Tax Fraud and Failure to Pay Tax
(USDOJ: Justice News)
Submitted at 4:55 PM July 15, 2011

The former president of Lee Dynamics International, a defense contractor providing services to the U.S. military in Iraq, pleaded guilty today to an indictment charging him with a scheme to bribe military officials in order to obtain government contracts, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. Document filed on July 5, 2011 Brief for Appelle United States of

Frank G. Bivings and Isabelle Blanco of Washington, D.C., co-owners of The Bivings Group Inc., pleaded guilty today to charges stemming from the failure to pay more than $2 million in employment taxes to the Internal Revenue Service.

U.S. v. Steven Keith VandeBrake


(Antitrust Division: Criminal Case Filings)
Submitted at 9:55 AM July 15, 2011

America

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Houstons Dieter David Palmer, Retired Navy Chief Petty Officer, Arrested in Houston on Child Pornography Charges Based on a Federal Indictment by a Federal Grand Jury Sitting in Houston
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:52 AM July 15, 2011

The U.S. Attorneys Office Southern District of Texas on July 14, 2011 released the following: HOUSTON Dieter David Palmer, 42, a retired Navy chief petty officer, has been indicted on charges of distribution, receipt, attempted receipt, transportation and possession of child pornography, United States Attorney Jos Angel Moreno announced today. Palmer, of Houston, was arrested on July 12, 2011, following the return of a fivecount indictment on June 22, 2011. In custody since his arrest, Palmer was ordered released on a $50,000 bond today by U.S. Magistrate Judge Stephen Wm. Smith following a hearing. Judge Smith imposed a number of special conditions including prohibiting him from personal use of an electronic device which could access the Internet and from contact with children. He will also be subject to GPS monitoring and cannot travel outside of Harris County among other things. Palmer has entered a plea of not guilty to the charges and is set for trial before U.S. District Judge Ellison on Aug. 29, 2011, at 9:00 a.m. Testimony presented during todays detention hearing alleged Palmer subscribed and purchased membership to websites offering child pornography over the Internet and that Palmer distributed and received images of child pornography utilizing his e-mail accounts. Palmer had

two computers at his residence when contacted by law enforcement in March 2011, which, upon examination, were found to contain more than 1800 digital images and at least 36 videos of child pornography including images depicting children in bondage. Additionally, according to the testimony, these images included children under 12 being sexually violated by adults and photographed in positions which caused their genitalia to be displayed in a lewd/lascivious manner. At the time of the investigation and when contacted by law enforcement, Palmer held a security clearance due to his employment with a navy contractor. Palmer faces a minimum sentence of five years and a maximum of 20 years imprisonment if convicted of the distribution, receipt, attempted receipt or transportation of child pornography charges and a maximum fine of $250,000. Possession of child pornography carries a maximum punishment of up to 10 years imprisonment and a maximum fine of $250,000 upon conviction. Each offense also carries a maximum of a life term of supervised release during which the court can impose a number of special conditions designed to protect children. Additionally, if convicted, registration as a sex offender is mandatory. The investigation leading to the indictment is the result of an investigation conducted by Immigration and Customs Enforcement Homeland Security Investigations as part of Operation Predator. The prosecution is part of

Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Divisions Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www. projectsafechildhood.gov. Special Assistant U.S. Attorney Demetrius Bivins is prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty through due process of law. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Former Alabama Mayor Sentenced to Two Years in Prison for Filing False Tax Returns
(USDOJ: Justice News)
Submitted at 1:58 PM July 15, 2011

U.S. v. Jaime Wong


(Antitrust Division: Criminal Case Filings)
Submitted at 1:19 PM July 15, 2011

U.S. v. William Freeborn


(Antitrust Division: Criminal Case Filings)
Submitted at 1:19 PM July 15, 2011

Document filed on June 30, 2011 Information

Document filed on June 30, 2011 Information

John Jackson, the former mayor of White Hall, Ala., was sentenced to two years in prison today, the Department of Justice and the Internal Revenue Service (IRS) announced.

U.S. v. Thomas Legault


(Antitrust Division: Criminal Case Filings)
Submitted at 10:47 AM July 15, 2011

Organized Romanian Criminal Groups Targeted by DOJ and Romanian Law Enforcement
fbi (Current)
Submitted at 10:00 AM July 15, 2011

U.S. v. David Margen


(Antitrust Division: Criminal Case Filings)
Submitted at 10:18 AM July 15, 2011

Document filed on June 30, 2011 Information

U.S. v. Jorge Wong


(Antitrust Division: Criminal Case Filings)
Submitted at 12:41 PM July 15, 2011

U.S. Department of Justice

Document filed on June 30, 2011 Information

Document filed on June 30, 2011 Information

FBIs Top Ten News Stories for the Week Ending July 15, 2011
fbi (Current)

Washington, D.C.

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Federal Criminal Defense Lawyers

Rogelio Roy Ibanez Jr., a licensed Texas lawyer, Pleads Guilty to Federal Wire Fraud Charges in Houston Federal Court
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:18 AM July 15, 2011

The U.S. Attorneys Office Southern District of Texas on July 14, 2011 released the following: HOUSTON On the eve of jury selection, an attorney and former bank chairman pleaded guilty to the federal felony offense of wire fraud before Senior U.S. District Judge David Hittner, United States Attorney Jos Angel Moreno announced today. Rogelio Roy Ibanez Jr., 46, of Mission, Texas, a licensed Texas lawyer whose trial was scheduled to begin with jury selection tomorrow, admitted today to defrauding customers of a title company he owned called Southern Star Title Company, of McAllen, and Edinburg, Texas. On or about June 10, 2008, Ibanez caused the sum of $40,000 owned by customers of Southern Star Title Company and held in an escrow account

to be wire transferred to his own law office. Ibanez admitted to Judge Hittner that he knew he had no right to make the transfer and that he intentionally did not notify the customers to whom the money belonged. Ibanez now faces a maximum of 20 years in federal prison without parole to be followed by a maximum three years of supervised release, a fine of up to $250,000 and an order to pay full restitution to victims. Judge Hittner has set Ibanezs sentencing for Oct. 7, 2011. Ibanez has been permitted to remain on bond pending his sentencing hearing. As a condition of his bond, Judge Hittner required that Ibanez surrender his license to practice law. Ibanez also agreed he would never again serve as a fiduciary, trustee, or agent or representative to any employee benefit plan covered by the federal Employee Retirement Income Security Act. The two-year investigation leading to the

charges was conducted by the FBI with the assistance of the Federal Deposit Insurance Corporation Office of Inspector General, the Texas Department of Insurance and the U.S. Department of Labor Employee Benefits Security Administration. Assistant U.S. Attorneys John R. Lewis and Carolyn Ferko are prosecuting the case. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Dr. Demetri Wendell Marshall, a Mississippi Doctor, Indicted by a Houston Federal Grand Jury for Failing to Pay Child Support
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 10:04 PM July 15, 2011

The U.S. Attorneys Office Southern District of Texas on July 15, 2011 released the following: HOUSTON Dr. Demetri Wendell Marshall, 59, of Port Gibson, Miss., has been indicted by a Houston grand jury for failure to pay child support and related medical expenses for his Texas resident child, United States Attorney Jos Angel Moreno announced today. A Houston grand jury returned a onecount indictment on May 19, 2011, charging Marshall, a family practice physician licensed in Mississippi, of failing to pay more than $10,000 in child support and medical expenses ordered by a Harris County family district court beginning in 1997 to the present. With the return of the indictment, a warrant has
(U.S. Marshals Service News)
Submitted at 7:30 PM July 15, 2011

issued for the arrest of Marshall. Anyone having information regarding his whereabouts is asked to contact the Department of Health and Human Services, Office of Inspector General (DHHS, OIG), using its fugitive hotline number at 1-888-476-4453, which is toll free. A conviction for the offense charged carries a maximum punishment of two years in prison, $250,000 fine and up to one year of supervised release. Additionally, restitution in the form of child support will be mandatory. The charges are the result of an investigation conducted by DHHS, OIG, Office of Investigations and the United States Attorneys Office in the Southern District of Texas with assistance from the United States Attorneys Office in Mississippi. An indictment is a formal accusation of Regional Fugitive Task Force arrested Jesse Sosa. Sosa is one of The Marshals Service District of New Mexicos Most Wanted Violent Fugitives. On October 15,

criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law Attached is Demetri Wendell Marhsall Federal Indictment. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

New Mexico Most Wanted Violent Offender Captured in Georgia


July 15, 2011 - Members from the United States Marshals Service South East 2010, Jesse Sosa was to be sentenced in a New Mexico District Court for Aggravated Assault with a Deadly Weapon.

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US Marshals

The Bentley Bandits Run Comes to an End


(U.S. Marshals Service News)
Submitted at 12:09 PM July 15, 2011

July 15, 2011 - Justin William Durbin was arrested on Trousdale Road in Sulphur after at least two high-speed chases and a multi-jurisdictional manhunt. Durbin was Wanted by the following agencies: Pima County Sheriffs Office in Arizona, Baton Rouge PD, Mt. Pleasant PD / South Carolina, Collier County

Sheriffs Office / Naples, Florida, Lafayette PD, Virginia Beach PD, Escambia County Sheriffs Office / Pensacola, Florida, Hamilton County Sheriffs Office / Noblesville, Indiana, and Prince Georges County Sheriffs Office / Maryland. The charges range from Probation Violation, Grand Theft Auto, Larceny, Burglary, and Fraud.

Arrest of Carlos Mireles Jr.


(U.S. Marshals Service News)
Submitted at 12:07 PM July 15, 2011

July 15, 2011 - The Lone Star Fugitive Task Force sponsored by the United States Marshals Service is announcing the arrest of Carlos Mireles Jr. Mireles has previous arrests for drug possession, resisting and evading arrest, burglary of a vehicle, family violence, assault causing bodily injury, injury to a child/elderly/disable with intent to cause bodily harm. In October 2010, Carlos Mireles was arrested for Aggravated Sexual Assault of a Child.