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Thursday, July 7, 2011

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Dandrae L. Jones, Edward W. Jefferson, and Miguel Villa Convicted at a Federal Criminal Trial by a Federal Jury Relating to a Multi-Million Dollar Drug-Trafficking Conspiracy
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:25 AM July 7, 2011

The U.S. Drug Enforcement Administration (DEA) on July 6, 2011 released the following: Jury Convicts Three Defendants of Charges Related to Multi-Million Dollar Drug-Trafficking Conspiracy Mexican Drug Cartels Smuggled Hundreds of Kilograms of Cocaine to Kansas City JUL 06 KANSAS CITY, Mo. Beth Phillips, United States Attorney for the Western District of Missouri announced that two Kansas City, Missouri men and a St. Paul, Minnesota man were convicted by a federal jury for their roles in one of the largest cocaine trafficking rings in the Kansas City area. Operation Blockbuster dismantled a local drug-trafficking organization that smuggled hundreds of kilograms of cocaine worth millions of dollars from Mexico to distribute in the Kansas City metropolitan area. Operation Blockbuster was a multi-agency investigation that also involved the U.S. Attorneys Office in Kansas, resulting in three separate indictments charging 31 defendants. Dandrae L. Jones, also known as Bird, 35, and Edward W. Jefferson, 39, also known as Black Walt, both of Kansas City, were found guilty on Thursday, June 20, 2011, of a drug conspiracy to distribute five kilograms or more of cocaine from Jan. 1, 2007, to Feb. 11, 2010, which was charged in a Feb. 11, 2010, federal indictment. Jefferson was also found guilty of using a telephone to facilitate the distribution of cocaine. Miguel Villa, 31, of St. Paul, was found guilty of bulk cash smuggling for attempting to transport $300,000 in hidden compartments of a Ford F-150 truck. Co-defendants Marlon Jordan, 29, and Michael D. Davis, 26, both of Kansas City, MO, pleaded guilty earlier this month to their roles in the drug-trafficking conspiracy. In two separate but related cases, five defendants have been convicted at trial and 15 pleaded guilty. Evidence introduced during the trial indicated that the leader of the conspiracy,

Alejandro S. Corredor, also known as Lou Lou, Rolo, and Alex, 36, a citizen of Colombia residing in Kansas City, MO, had connections with a Mexican drug cartel. Corredor is among the defendants who pleaded guilty in a separate but related case. Corredor called his supplier in Mexico to order cocaine to be delivered to the Kansas City metropolitan area. A normal load of cocaine would be from 20 to 50 kilograms, which was smuggled in vehicles driven to Kansas City from Mexico. After Corredor sold the cocaine and collected the money, he packaged the cash in bundles that were hidden in false compartments of various vehicles. The vehicles would then deliver the money to the El Paso, Texas area, where it would be transported across the border into Mexico. Jones, a local rap artist and owner of Block Life Entertainment, was one of Corredors biggest distributors in the Kansas City area. Corredor invested from $200,000 to 250,000 in Block Life Entertainment, and allowed Jones to live rent-free in one of his residential properties. Jefferson was also a rap artist and one of Corredors distributors. Villa was a courier who transported $300,000 in drugtrafficking proceeds from Kansas City to Mexico in hidden compartments of his Ford F-150 truck. During Operation Blockbuster, law enforcement officers seized large quantities of cocaine and marijuana and millions of dollars in drug proceeds. For example, while executing a search warrant at a Kansas City, Missouri residence, officers seized 46 kilogram-bundles of cocaine, $151,000, and a drug ledger. The ledger showed that during a four-month period, this drug-trafficking organization distributed more than 800 kilograms of cocaine and received $10 million in drug proceeds. Law enforcement officers also seized more than $1.6 million that was hidden in two vehicles on March 9, 2009. Agents were conducting surveillance at a Kansas City residence that day when they observed conspirators hiding what they learned were bundles of cash inside the door panels of a Jeep Cherokee. The Jeep

was stopped by a trooper with the Missouri State Highway Patrol while traveling through Cass County, MO. During a search of the Jeep and a Nissan that was being towed, the trooper recovered 163 bundles of cash. Among several other cash seizures, officers seized nearly $654,000 in a traffic stop on May 9, 2009, and more than $50,000 from another vehicle on May19, 2009, all of which was proceeds from the drugtrafficking conspiracy. Following the presentation of evidence, the jury in the U.S. District Court in Kansas City deliberated for close to eight hours before returning the guilty verdicts to U.S. District Judge Nanette K. Laughrey, ending a trial that began Monday, June 27, 2011. Under federal statutes, Jones and Jefferson are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to life in federal prison without parole. Villa is subject to up to five to years of imprisonment for bulk cash smuggling. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorneys Joseph M. Marquez and Patrick D. Daly. It was investigated by the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRSCriminal Investigation and the Kansas City, Mo., Police Department. 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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Todd Lubar Pleads Guilty in Maryland Federal Court to Laundering Drug Proceeds
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:02 AM July 7, 2011

The U.S. Attorneys Office District of Maryland on July 6, 2011 released the following: Greenbelt, Maryland Todd Lubar, age 39, of Potomac, Maryland, pleaded guilty today to money laundering in connection with a scheme to launder drug proceeds through legitimate businesses owned by Lubar. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Theresa R. Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives Baltimore Field Division; and Acting Special Agent in Charge Jeannine A. Hammett of the Internal Revenue Service Criminal Investigation, Washington, D.C. Field Office. Money laundering is tax evasion in progress said Acting IRS Special Agent in Charge, Jeannine Hammett. Money Laundering is a global threat, fuel for criminals to conduct their criminal affairs and is used to manipulate and erode our financial systems According to Lubars plea agreement, from September 2007 to at least 2009, Lubar was involved with several legitimate businesses in Maryland and Pennsylvania, including a demolition business, Red Rock Service Co., LLC, and a scrap metal business, Scrap USA. During 2008, drug dealers David Anthony Kittrell, Philip A. Forde, Jamal A. Daniels, and others were involved in the distribution of cocaine, heroin, MDMA, and marijuana to an undercover Special Agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (the UC). The conspirators met at a business owned by Kittrell, known as The Image House, located on 10th Street NE, in Washington, DC, and at Kittrells home in Silver Spring, Maryland and sold more than 581 grams of cocaine, just under 150

grams of heroin, and more than two kilograms of marijuana to the UC. During this time, Kittrell introduced the UC to Lubar, who Kittrell said was a partner in real estate and other ventures. During a meeting with the UC, Lubar advised the UC that: he has a mortgage company and has been in the mortgage business for 15 years; that he has a nightclub in Washington, DC, as well as a scrap metal business in Reading, Pennsylvania; and that while attending Syracuse University, he was a bookmaker who also sold five to ten pounds of marijuana per week and 350 ecstasy pills per week. The UC told Kittrell and Lubar that he was looking for ways to invest and hide cash proceeds from narcotics distribution in Chicago. Lubar advised the UC that he could provide professionals to transport narcotics cross country without law enforcement detection on behalf of the UC. Lubar then explained the financial positives of his scrap metal business and the ease with which he is able to launder money by explaining how the business conducts most of its transactions in cash. Over the course of the year, Lubar had other conversations with the UC, offering investment opportunities in which the UC could launder cash. Lubar explained that the UC could invest the cash, then Lubar would repay that investment with a guaranteed minimum return over a period of time, thereby legitimizing the source of the funds. Eventually, the UC agreed to launder $20,000 through Lubar by investing in a business venture suggested by Lubar. After receiving the cash, Lubar presented a contract to the UC which indicated that the UC would provide $20,000 that day, and in return would receive $25,000 from Lubar no later than December 31, 2008. On December 29, 2008, Lubar advised the UC that the $25,000 payment of funds owed to the UC would be delayed until the middle of January 2009 due to the recent drug arrest of Daniels and his need for bail. The UC told Lubar to personally contact the UC

when the money was available. On September 2, 2009, Lubar deposited $200 into the UCs undercover bank account. Telephone records reflect that between July 2008 and September of 2009, Kittrell and Lubar were in contact with each other 1,495 times. Between August of 2008 and April of 2009, Daniels and Lubar were in contact with each other 28 times. Records reflect two telephone contacts between Forde and Lubar on July 6, 2008. In addition, numerous transactions were conducted between bank accounts for the scrap businesses and accounts for The Image House, as well as direct transactions between the narcotics conspirators and scrap metal business accounts controlled by Lubar. Lubar faces a maximum penalty of 20 years in prison. U.S. District Judge Alexander Williams, has scheduled sentencing for October 26, 2011 at 9:30 a.m. Kittrell, Forde and Daniels have previously pleaded guilty to drug charges. Kittrell and Forde are awaiting sentencing. Daniels was sentenced to five year in prison. United States Attorney Rod J. Rosenstein commended the ATF and IRS-CI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stuart A. Berman and Andrea L. Smith, who are prosecuting this Organized Crime Drug Enforcement Task Force 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.

DOJ, FTC Announce Changes to Streamline the Premerger Notification Form

(USDOJ: Justice News)
Submitted at 9:05 AM July 7, 2011

Following a public comment period, the Department of Justice and the Federal Trade Commission (FTC) have made changes to reduce the filing burden and

streamline the form parties must file when seeking antitrust clearance of proposed mergers and acquisitions under the HartScott-Rodino (HSR) Act and the Premerger Notification Rules.

North Carolina Corporate Hog Farm and President Plead Guilty to Violating the Clean Water Act
(USDOJ: Justice News)
Submitted at 12:49 PM July 7, 2011

Freedman Farms, Inc. and its president, William B. Freedman, pleaded guilty yesterday in federal court in New Bern, N.C., to violating the Clean Water Act when they discharged hog waste into a stream that leads to the Waccamaw River.

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William Roger Clemens Jury Selection Update

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:45 AM July 7, 2011

The Associated Press (AP) on July 7, 2011 released the following: Clemens not getting a lot of love from jury pool By NEDRA PICKLER and MARK SHERMAN Associated Press WASHINGTON (AP) One-time baseball superstar Roger Clemens is in the midst of a tedious and humbling process that is one of the most important parts of his trial on charges of lying about drug use selecting the jury members who will decide his fate. So far the pitching great hasnt gotten a lot of love from the line of Washingtonians who have been questioned about their fitness to serve on his trial, expected to last into August. There were some sports fans in the group, but most said they dont know much about him. If he were sitting there, I would not know who he was, one woman said, as Clemens sat facing her about 15 feet away. Among those who said she follows baseball was a retired writer and lawyer who acknowledged Thursday that she wants to be a juror. I would like to be on this jury because I think I can keep people focused, said the woman, who called herself a die-hard Washington Nationals fan. Another person who said he knew a lot about Clemens and his case was 37-yearold Omari Bradley. The former personal trainer and Little League coach said he

considers himself a fair person. But Bradley said he had to admit he would have a hard time finding Clemens not guilty after all hes heard in the media about how the seven-time Cy Young Award winner should just admit he used steroids. The judge excused Bradley. Clemens steadfastly denies the allegations made by his former trainer, who says he injected Clemens with performance-enhancing drugs repeatedly as the pitcher maintained a blinding throwing speed into middle age. Clemens says the trainer, Brian McNamee, is a liar who fabricated evidence against him. McNamee gave federal agents their most important physical evidence in the case needles and gauze the trainer said he used to inject the star athlete. Clemens is accused of lying under oath to the House Government Reform Committee in 2008 when he denied ever using steroids or human growth hormone. He faces six felony counts of perjury, false statements and obstruction of Congress. Prosecutors and the defense read the jury pool a list of people who may be called as witnesses or mentioned at the trial. The list included some of the biggest names in baseball, including others who have been at the center of the steroid scandal, such as Mark McGwire, Barry Bonds, Sammy Sosa, Rafael Palmeiro and Jose Canseco. The list also included baseball Commissioner Bud Selig, New York Yankees General Manager Brian Cashman, former Yankees manager Joe Torre, former players union director Donald Fehr and several other officials and teammates from the four major league

teams Clemens played for. Jurors were asked about their knowledge of those figures as well as their feelings about the case, baseball, Congress and principles of criminal law. They were asked whether they had scientific training, played organized sports or were baseball fans. One public relations consultant was not. I cant imagine spending money to watch a sport where guys scratch themselves and spit a lot, she said, drawing a smile from Clemens, who otherwise sat expressionless through most of the proceedings. The woman said she could still be fair to Clemens, quipping that she doesnt consider spitting and scratching crimes. She was qualified to serve along with six others so far. In addition to Bradley, others excused were a woman with medical issues and another who said she couldnt be gone from work for the duration of the trial. U.S. District Judge Reggie Walton said he hopes to wrap up jury selection Tuesday morning. 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.

Armor Group North America and Its Affiliates Pay $7.5 Million to Resolve False Claims Act Allegations
(USDOJ: Justice News)
Submitted at 10:05 AM July 7, 2011

Armor Group North America Inc. (AGNA) and its affiliates have paid the United States $7.5 million to resolve allegations that AGNA submitted false claims for payment on a State Department contract to provide armed guard services at the U.S. Embassy in Kabul, Afghanistan.

JPMorgan Chase Admits to Anticompetitive Conduct by Former Employees in the Municipal Bond Investments Market and Agrees to Pay $228 Million to Federal and State Agencies
(USDOJ: Justice News)
Submitted at 11:28 AM July 7, 2011

New URL for this News Feed

(FBI in the News)
Submitted at 10:57 AM July 7, 2011

The URL for this news feed has changed to: http://www.fbi.gov/collections/fieldoffice-recent-press-releases/rss.xml. Please adjust your settings.

JPMorgan Chase &s role in anticompetitive activity in the municipal bond investments market and has agreed to pay a total of $228 million in restitution, penalties and disgorgement to federal and state agencies. Wanted fugitive list. Beacher Ferrel Hackney is wanted in Hot Springs, Va., for the premeditated murders of two coworkers. Hackney, 61, was employed as a janitor at the Homestead Resort. Hackney, known to be a loner, was reportedly upset with two of his supervisors, Dwight Kerr and Ronnie Stinnett, for taking him off night shift and putting him on the busier dinner shift.

U.S. Marshals Add Suspected Resort Murderer to 15 Most Wanted

(U.S. Marshals Service News)
Submitted at 12:12 PM July 7, 2011

July 07, 2011 - 15 Most Wanted Addition - The U.S. Marshals have added a suspected murderer to their 15 Most

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Gregory Lashon Thomas, Aja D. Crawford, and Ernest Ohenekitiwa McMillan Set for a Federal Criminal Trial Before Honorable Chief U.S. District Judge Sidney A. Fitzwater
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:22 AM July 7, 2011

The U.S. Attorneys Office Northern District of Texas on July 6, 2011 released the following: TRIAL DATE SET IN MULTIMILLION DOLLAR MORTGAGE FRAUD CASE Alleged Fraud Involved Approximately $6 Million in Fraudulently Obtained Loan Proceeds DALLAS An August 29, 2011, trial date, before Chief U.S. District Judge Sidney A. Fitzwater, has been set for three defendants charged with running a multimillion dollar mortgage fraud scheme in the Dallas area, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Gregory Lashon Thomas, Aja D. Crawford, aka Aja Abercrombie and Ernest Ohenekitiwa McMillan were arrested on conspiracy to commit mail fraud and mail fraud charges outlined in a four-count indictment returned last month. All three pleaded not guilty and have been released on bond. According to the indictment, Gregory Thomas, 40, of Desoto, Texas, owned and operated Myriad Investments and Investors Source, two real-estate investment companies in the Dallas area. Gregory Thomas recruited individuals, including Ernest McMillan, 41, of Dallas, and others to buy residential real estate by telling them that they were purchasing investment properties. Thomas further worked with various loan officers, including Aja Crawford, 34, of Irving, Texas, to prepare false loan

applications on behalf of the individual purchasers. The loan applications included misrepresentations about the individuals monthly income, intention to occupy the property, assets and liabilities. Some loans also included fake documents attempting to justify an individuals creditworthiness, such as fake bank records to show that the individual had sufficient money in the bank to qualify for the mortgage For certain properties involved in the scheme, Thomas provided the down payment at closing. Shortly after closing, Thomas received payment from the seller that wasnt disclosed on the HUD-1 Settlement Statement. Thomas would then pay the individual purchaser or another recruiter for purchasing the property. The indictment alleges that from February 2006 through July 2008, Thomas recruited individuals to purchase real estate properties resulting in approximately $6 million in fraudulently obtained proceeds and $2 million in estimated losses. This case was brought in coordination with President Barack Obamas 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 An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy to commit mail fraud count and each of the substantive mail fraud counts carry a maximum statutory sentence of 20 years in prison and a $250,000 fine. Restitution could also be ordered. The case is being investigated by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Larry Bernhard Pleads Guilty in Maryland Federal Court to Health Care Fraud and Aggravated Identity Theft
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:08 AM July 7, 2011

The U.S. Attorneys Office District of Maryland on July 6, 2011 released the following: GAMBRILLS PODIATRIST PLEADS GUILTY TO FRAUDULENTLY BILLING MEDICARE OVER $1.1 MILLION Was Prohibited From Billing Medicare as Part of a Settlement Agreement Related to Previous Allegations of Fraudulent Billing Baltimore, Maryland Larry Bernhard,

age 55, a podiatrist who operated his business from his home in Gambrills, Maryland, pleaded guilty to health care fraud and aggravated identity theft related to a scheme to fraudulently bill Medicare for more than $1.1 million. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Special Agent in Charge Richard A. McFeely of

the Federal Bureau of Investigation. Health insurance programs trust providers to bill honestly for medical services, so it is essential to punish doctors who betray that trust, said U.S. Attorney Rod J. Rosenstein. Dr. Larry Bernhard flagrantly ripped off Medicare Advantage by fabricating claims for services that he never provided, collecting more than $1 million in new false claims even after he was caught and prohibited from billing federal health care LARRY page 5

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Claymon Trammell, Jeannettea Williams, and Michelle Trammell Plead Guilty in Houston Federal Court to Mortgage Fraud Scam
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 7:34 AM July 7, 2011

The U.S. Attorneys Office Southern District of Texas on July 6, 2011 released the following: Mother, Daughter, Father Plead Guilty to Mortgage Fraud Scam HOUSTON Claymon Butch Trammell along with his wife, Jeannettea Williams, and daughter, Michelle Trammell, have all pleaded guilty to conspiracy to commit wire fraud for their roles in a multi-million dollar mortgage fraud scheme, United States Attorney Jos Angel Moreno announced today. The three residents of Houston entered their pleas yesterday in federal court before United States District Court Judge Vanessa Gilmore. From 2003 until the end of 2006, Claymon Trammell, 61, conspired with his wife, 56, and daughter, 39, to defraud mortgage lenders. Claymon Trammell and Williams recruited and paid individuals to act as straw borrowers on applications for residential mortgage loans, even though the borrowers had no intention of making payments on the mortgage loans or, in the case of homes supposedly purchased as primary residences, of residing in the homes. Some borrowers were used multiple times, including one borrower

whose name and credit was used to purchase approximately 17 homes. Claymon Trammell pitched the scheme as an investment where the straw borrowers would not need any money down, would not be responsible for the monthly payments and would get money for the use of their name and credit. At times during the scheme, Michelle Trammell and Williams were licensed mortgage loan officers. Michelle Trammell acted as a loan officer in the transactions and filled out loan applications in the names of borrowers and knowingly provided lenders with false information and documents about the borrowers employment, income, assets and intent to occupy the purchased property. Michelle Trammell and Williams provided lenders with various documents she knew to be false, including false verifications of deposit, false verifications of rent and false earnest money contracts. There were more than 70 homes involved in the scheme, all of which went into payment default and most into foreclosure. The three defendants caused lenders to fund loans to purchase more than 70 homes in the Houston area and personally benefitted by funneling some of the loan proceeds to themselves via businesses they controlled and/or owned via bogus repair invoices and

realtor and loan officer commissions. For their conviction of conspiracy to commit wire fraud in violation of 18 U.S.C. Section 371, the defendants face a maximum of five years imprisonment, a $250,000 fine as well as up to a three-year -term of supervised release at their sentencing, scheduled for Dec. 5, 2011. As part of their plea agreements, the defendants also agreed to pay restitution if ordered to do so by the court. The investigation leading to the charges was the result of an investigation conducted by agents of the FBI. Assistant United States Attorneys Belinda Beek, Jimmy Sledge and Kebharu Smith prosecuted the case with assistance from paralegal specialist Brenda Williams. 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.

LARRY
continued from page 4

programs. According to Bernhards plea agreement, since 1981 he has been a licensed podiatrist in Maryland and operated a podiatry practice under the business name, Chesapeake Wound Care Center. Bernhard ran the Chesapeake Wound Care Center business from his home. On October 30, 2007, Bernhard entered into a Settlement Agreement with the government to resolve allegations that from April 1, 2002 through October 11, 2004, Bernhard submitted eighty claims to Medicare for podiatry services purportedly provided at skilled nursing facilities when, in fact, the patients were actually in hospitals at the time the services were allegedly provided. As part of the settlement Bernhard agreed to be excluded from Medicare, Medicaid, and all other Federal health care programs for a period of three years. Bernhard admits that from October 31, 2007 to July 20, 2010, he fraudulently

billed Medicare Advantage plans and was paid at least $1.1 million from these plans. All of the fraudulent billing occurred while Bernhard was excluded from billing all federal health care programs, including Medicare Advantage plans. Of the $1.1 million received by Bernhard , at least $1 million was for services that were not rendered. Bernhard admits that he used the names and personal identifying information of approximately 200 patients at various nursing homes to submit false bills for podiatry care that he never performed. Bernhard faces a maximum penalty of 10 years in prison for health care fraud and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge James K. Bredar has scheduled sentencing for November 21, 2011 at 10:00 a.m. As part of his plea agreement, Bernhard has agreed to pay restitution of $1,122,992.08.

United States Attorney Rod J. Rosenstein commended the HHS-Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, 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.

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Ephram Pascall Pleads Guilty in Manhattan Federal Court to Embezzlement

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:15 AM July 7, 2011

The U.S. Attorneys Office Southern District of New York on July 6, 2011 released the following: FORMER HOTEL PAINTERS UNION PRESIDENT PLEADS GUILTY IN MANHATTAN FEDERAL COURT TO EMBEZZLEMENT PREET BHARARA, the United States Attorney for the Southern District of New York, and RALPH E. GERCHAK, the New York District Director of the U.S. Department of Labors Office of LaborManagement Standards (DOL-OLMS), announced the guilty plea of EPHRAM PASCALL, the former President/Business Manager of the International Union of Painters and Allied Trades, Local 1422 (the Union). PASCALL pled guilty today before U.S. District Judge NAOMI REICE BUCHWALD to one count of embezzling funds from the Union. Manhattan U.S. Attorney PREET BHARARA said: Ephram Pascall, a corrupt union boss, treated the unions coffers like his personal piggy bank. Todays guilty plea underscores this Offices ongoing commitment to working with DOL-OLMS to root out corruption in our nations unions.

DOL-OLMS New York District Director RALPH E. GERCHAK said: This arrest is part of the ongoing effort of the United States Department of Labor, Office of Labor-Management Standards to accomplish its mission of protecting union assets by removing unscrupulous, corrupt union officials and thereby strengthening the American labor movement. According to the Information, the Complaint, and statements made today in Manhattan federal court: While PASCALL served as President/ Business Manager of the Union, from February 2007 through April 2009, he wrote approximately 92 checks, totaling approximately $34,199, to himself from the Unions checking account. Almost all of the checks were cashed at a check cashing store. PASCALL listed in the Unions records that the purpose of 66 of the checks was payment to various Union members who purportedly attended training with him, and thus had foregone their normal wages for that day. In truth and in fact, however, union members neither attended nor received any reimbursement for such training. The other 26 checks were for alleged union expenses, such as dinners, union member funeral expenses, office supplies, and meeting expenses. None of

those expenses actually were incurred by the Union. PASCALL, 48, of Brooklyn, New York, faces a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gain or loss from the offense. He will be sentenced by Judge BUCHWALD on October 12, 2011, at 4:45 p.m. Mr. BHARARA praised the investigative work of the DOL-OLMS and thanked the United States Marshals Service for its assistance with PASCALLs arrest. This case is being prosecuted by the Offices Public Corruption Unit. Assistant United States Attorney CARRIE H. COHEN is in charge of the prosecution. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Justin Channell Pleaded Guilty before a U.S. Federal Judge to Knowingly Possessing Child Pornography
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 1:43 PM July 7, 2011

The U.S. Attorneys Office Western District of New York on July 7, 2011 released the following: HORSEHEADS MAN PLEADS GUILTY TO POSSESSING CHILD PORNOGRAPHY ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Justin Channell, 23, of Horseheads, New York, pleaded guilty to knowingly possessing child pornography before U.S. District Court Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or both. Assistant U.S. Attorney John J. Field, who is handling the case, stated that Channell used his internet-connected

computer to obtain hundreds of images and videos of child pornography that included prepubescent minor victims. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), 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. The plea is the result of an investigation by Special Agents of the Federal Bureau

of Investigation, under the direction of Acting Special Agent in Charge Richard W. Kollmar. Sentencing is scheduled for October 12, 2011, at 2:30 p.m. before Judge Siragusa. Channell was taken into custody pending sentencing. 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.