Federal Criminal Defense Lawyers

Friday, July 22, 2011

www.McNabbAssociates.com

Thirteen Facing Federal Criminal Charges by Criminal Complaint and Indictments for Trafficking Heroin in Albuquerque
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 7:41 AM July 22, 2011

The U.S. Attorneys Office District of New Mexico on July 21, 2011 released the following: THIRTEEN FACING FEDERAL CHARGES FOR TRAFFICKING HEROIN IN NORTHEAST HEIGHTS OF ALBUQUERQUE ALBUQUERQUE United States Attorney Kenneth J. Gonzales announced that thirteen defendants have been charged with federal heroin trafficking offenses based on an investigation by the Drug Enforcement Administration (DEA), the New Mexico State Police (NMSP), the Albuquerque Police Department (APD), and the U.S. Marshals Service (USMS) that targeted heroin traffickers operating in Albuquerques Northeast Heights. The defendants, who are charged in individual criminal complaints and indictments, were arrested following an investigation led by the DEA and pursued under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a Department of Justice nationwide initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated attack against major drug trafficking and money laundering organizations. The investigation was initiated in March 2011 in response to reports that young adults in Albuquerque, including students enrolled in high schools in Albuquerques Northeast Heights, are becoming addicted to expensive prescription painkillers like OxyContin, and then transitioning to heroin, a drug that provides a similar high for less money, sometimes with tragic consequences. In 2010 and earlier this year, Haley Paternoster, Michael Duran, Jr., and other Albuquerque teens reportedly died from overdoses after they transitioned from OxyContin to heroin, and statistics from the New Mexico Department of Health reflect that heroin overdose deaths among New Mexicans between 17 and 24 have increased steadily over the past few years. The investigation specifically targeted local heroin dealers

who allegedly supplied heroin to young adults, teenagers and other high school aged children in Albuquerques Northeast Heights neighborhoods. The following Albuquerque residents are charged in individual indictments: Michael Nafe, 21, Nathaniel Paul, 26, Jose Torres, 25, and David Witt, 25. Rebecca Corral, 27, Isaac Ortiz, 21, Jordan Padilla, 23, and Raelynn Sanchez, 26, all residents of Albuquerque, individually are charged in criminal complaints. Anthony Martinez, 20, and Fernando Trujillo, 19, both residents of Espanola, also are charged in criminal complaints. If convicted, each defendant faces a maximum penalty of 20- years of imprisonment and a $1,000,000 fine. Corral, Ortiz, Padilla, Sanchez, and Witt were arrested on July 21, 2011, and made their initial appearances in Albuquerque federal court this morning. Martinez and Trujillo were arrested this morning and are scheduled to make their initial appearances on July 22, 2011. Nafe and Torres currently are detained in the Metropolitan Detention Center awaiting transfer to federal custody. Torress initial appearance is scheduled for July 28, 2011 while Nafes initial appearance has yet to be scheduled. Paul has yet to be apprehended and is considered a fugitive. Three other defendants previously were arrested as part of this investigation. Mexican national Pedro Enrique TorresMier, 29, was arrested on March 9, 2011 on heroin trafficking charges in a criminal complaint, and was indicted on March 22, 2011. Torres-Mier, who has been in federal custody since his arrest, entered a guilty plea to count one of a three-count indictment earlier today. On May 19, 2011, Adam Anthony Vallejos, 20, and Eddie Travis Centeno, 21, both Albuquerque residents, were arrested on an indictment charging them with, heroin trafficking offenses. Centeno is detained pending trial while Vallejos was released under pretrial supervision. If convicted, each of these three defendants faces a maximum penalty of 20-years of imprisonment and a $1,000,000 fine. In announcing the results of this investigation, United States Attorney

Kenneth J. Gonzales said, Teenage prescription drug abuse and the concomitanttransition to heroin is a scourge that is sneaking into far too many of our families. This scourge does not discriminate, but instead is impacting all families, including those with no history of prior abuse. Investigation and prosecution of those who prey on our children is not enough to defeat this scourge. All of us need to get the word out on the perils of prescription drug abuse, especially those confronting our children. To prevent teenage drug abuse, we need to get the word out not only to our children, but also to their parents, teachers and coaches and we need to learn to recognize the warning signs of drug addiction. And we need to do this before yet another child dies as a result of an overdose. In this investigation, DEA targeted drug dealers who were preying on the youth of New Mexico. The resulting indictments and arrests further our efforts to prevent heroin trafficking from taking hold in our community. Nothing is more important than the safety and security of our community, especially our young people. said Joseph M. Arabit, Special Agent in Charge of the Drug Enforcement Administration-El Paso Division. These cases were investigated by the DEA, NMSP, APD and the USMS, and are being prosecuted by Assistant United States Attorney Elaine Y. Ramirez. Charges in complaints and indictments are only accusations. All criminal defendants are presumed innocent until 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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Philip R. Lochmiller, Sr. Found Guilty by a Federal Jury in Denvers Federal Court for Conspiracy, Money Laundering Conspiracy, Money Laundering, and Mail Fraud
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:22 AM July 22, 2011

The U.S. Attorneys Office District of Colorado on July 21, 2011 released the following: PHILIP R. LOCHMILLER, SR. FOUND GUILTY OF CONSPIRACY, MONEY LAUNDERING CONSPIRACY, MONEY LAUNDERING AND MAIL FRAUD LOCHMILLER DEFRAUDED OVER 400 VICTIMS OF MORE THAN $30,000,000 DENVER A jury this morning found Philip R. Lochmiller, Sr. guilty of conspiracy, money laundering conspiracy, money laundering, and mail fraud, U.S. Attorney John Walsh, FBI Special Agent in Charge James Yacone, and IRSCriminal Investigation Special Agent in Charge Christopher Sigerson announced. The guilty verdict was the result of a 10 day trial before U.S. District Court Judge Philip A. Brimmer. The jury deliberated for three hours before returning their verdicts. No sentencing date has yet been set, although that hearing will take place in Grand Junction. Lochmiller is scheduled to be back in U.S. District Court in Denver on October 27, 2011, for a hearing on victim losses and restitution. He remains free on bond pending sentencing. Two other co-defendants, Philip Lochmiller, II and Shawnee Carver had earlier pled guilty and await sentencing, which is scheduled for October 14, 2011. Philip Lochmiller, Sr., Philip Lochmiller, Jr., and Shawnee Carver were indicted by a federal grand jury in Denver on December 15, 2009. A superseding indictment was returned on October 18, 2010. Lochmiller, Jr. pled guilty on November 16, 2010. Carver pled guilty on December 9, 2010. Both testified during the Lochmiller, Sr. trial. According to evidence presented at trial, the superseding indictment, and other documents from the prosecution, Valley Mortgage, Inc. was incorporated in Colorado in September 1994 by Philip Lochmiller, Sr. The company originally engaged in the business or originating or brokering home mortgages. Lochmiller, Jr. owed 100 percent of Valley Mortgages stock and was principal, officer and director. Lochmiller, Sr.s stepson, Philip Lochmiller, Jr., joined Valley Mortgage in 1999 as a mortgage officer. Lochmiller, Sr. later added the name Valley Investments as a does

business as for Valley Mortgage. Lochmiller, Jr. eventually worked his way to become responsible for day-to-day operations of the company. Beginning in 2000, Valley Mortgage entered into the affordable housing real estate market by buying vacant land or existing mobile home parks, entitling the land so residential subdivisions could be built, and then selling lots with either a mobile home or a manufactured home on it. Valley Investments purchased land with financing provided by the sellers in a owner-carry arrangement. Valley Investments then began to advertise in local newspapers and solicit investment funds from the public. The company promised returns from 10 percent to 16 percent, and in some instances, as high as 18 percent. In exchange, investors were promised a promissory note and a recorded first Deed of Trust on individual lots. The advertisements and verbal representations by both of the Lochmillers characterized the investment as a solid security secured and recorded by a Deed of Trust in the investors name. Both of the Lochmillers represented to investors that Valley Investments used investor funds exclusively to acquire property and finance the development of the subdivisions Valley Investments owned. Both the Lochmillers further represented that Valley Investments generated large profits by selling manufactured homes together with lots within the subdivisions. Investors were not told that Lochmiller Sr. had a prior felony conviction and a bankruptcy. Between 2000 and 2005, Valley Investments acquired five properties purportedly to develop affordable housing subdivisions. Between 2000 and 2009, Valley Investments received over $30,000,000 from approximately 400 investor contracts. The Governments expert forensic accountants shows that this influx of investor funds kept Valley Investments operating, particularly in its later years, and without investor funding, Valley Investments would have failed. The Government accounting analysis also determined that investor funds were used by both of the Lochmillers for purposes other than what investors were told. Further, incoming investor funds were used to make interest and principal payments to existing investors. Once investor money started coming into Valley Investments, the funds went to personal expenses, family expenses and other nonbusiness expenditures. Both Lochmillers

then engaged in monetary transactions involving more than $10,000 of the proceeds of the fraud. Valley Investments did not own sufficient property or assets to secure the investments as represented. Unbeknownst to investors, the amount of investment funds, which were supposed to be secured by real property, far exceeded the value of the encumbered property and the business assets. Valley Investments failed to file all of the Trust Deeds and behalf of investors as promised, and many of the filed Trust Deeds were not the first encumbrances on the properties named and were thus worthless. Despite these facts, the Lochmillers and Valley Investment employee Shawnee Carver continued to misrepresent to investors that the business was thriving, and never disclosed to new investors how their money was being used. Thanks to the entire trial team, including prosecutors and staff from the U.S. Attorneys Office, the FBI and the IRSCriminal Investigations, a jury found Philip Lochmiller, Sr. guilty of conspiracy, money laundering conspiracy, money laundering, and mail fraud. Todays guilty verdict demonstrates that those who steal others hard earned money will be prosecuted to the fullest extent of the law, said U.S. Attorney John Walsh. Todays guilty verdict is a victory for the over 400 victims in this case, many of whom are from the Grand Junction area. Todays sentencing reflects the tremendous dedication of our agents and the cumulative commitment of the FBI, U.S. Attorneys Office, and IRS Criminal Investigation to aggressively investigate and prosecute white collar criminals that prey on innocent victims, said FBI Special Agent in Charge James Yacone. Our efforts focused on seeking justice on behalf of the more than 400 victims throughout Colorado that have experienced financial devastation as a result of their involvement with Valley Investments. Defrauding innocent investors by peddling sham investment schemes is a serious and far too common offense, said Sean Sowards, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. IRS Criminal Investigation will work with our law enforcement partners to vigorously pursue and hold accountable those who perpetrate these schemes to get rich quick at the expense of honest PHILIP page 9

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Huong Thi Kelly McReynolds, Joseph Minh McReynolds, Vincent Minh McReynolds, and James Hartful McReynolds Indicted by a Phoenix Federal Grand Jury
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:54 AM July 22, 2011

The Federal Bureau of Investigation (FBI) on July 21, 2011 released the following: Four People Indicted for Compelling Vietnamese Nationals into Labor Servitude Two-Year Joint InvestigationOperation Broken Promises Leads to the Arrest of Owners of Flagstaff Wedding Shop PHOENIXFour family members were arrested today and face federal charges for exploiting the labor of immigrant Vietnamese nationals for years at their I Do, I Do Wedding Shop in Flagstaff, Arizona, federal authorities announced. The two-year joint investigation into the familys activitydubbed Operation Broken Promisesinvolved at least five victims, now living throughout the United States. Earlier today federal prosecutors unsealed a five-count indictment and served arrest warrants against Flagstaff residents Huong Thi Kelly McReynolds, 58; Joseph Minh McReynolds, 36; Vincent Minh McReynolds, 32; and James Hartful McReynolds, 60. According to the indictment, the McReynolds family brought the victims into the United States by offering them a better life, including promises of happy marriages to United States citizens and educational opportunities. Shortly after the victims arrived in the United States, they discovered that the McReynolds family would not fulfill their promises. The victims instead faced compelled servitude in the McReynolds home and business. Houng McReynolds was charged with all five counts alleged in the indictment: Count one alleges a violation of conspiring to engage in forced labor, count two alleges a forced labor violation, count three alleges a violation of unlawful conduct with respect to documents in furtherance of forced labor, count four alleges a violation of the Fair Labor Standards Act, and count five alleges a violation of conspiring to engage in marriage fraud. Joseph McReynolds was charged in counts one, two, and five; Vincent McReynolds was charged in counts one and two; and James McReynolds was charged in count five. Huong Thi McReynolds and her family lured these victims to the United States on the promise of the American dream; what the victims got instead was indentured

servitude, said U.S. Attorney Dennis K. Burke. The defendants created a climate of fear inside their home and business by carrying firearms, berating the victims and threatening to physically harm them and shame their families in Vietnam. They werent just exploited for their labor, they were robbed of their basic human dignity. Through fraud and coercion, the McReynolds family engaged in modernday slavery to support their business and live an easy life on the backs of these exploited victims, said Matt Allen, special agent in charge of U.S. Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI) in Arizona. Working with our partners at the FBI and Department of Labor, HSI was able to document nearly a decade of abuse perpetrated by this family, which will now face justice for their actions. Todays arrest of members of the McReynolds family is a culmination of efforts by our federal law enforcement partners., said James L. Turgal Jr., FBI Special Agent In Charge, Phoenix. When individuals are forced and exploited for their labor, it erodes our societies belief in the freedoms afforded to us under the laws of our nation. The FBI will continue to work with the law enforcement community to address this type of illegal activity and ensure that those responsible are brought to justice. The indictment alleges that beginning in September 2001, Huong McReynolds brought Vietnamese nationals to Flagstaff, or found them there, where she and her family members housed them and forced them to work seven days a week in the familys bridal shopI Do, I Do Bridal. At least until December 2008, Huong McReynolds and her two sons, Joseph and Vincent, compelled the victims to work long hours with little or no pay. Between September 2001 and December 2008, the Vietnamese workers cycled through the bridal shop, with their employment ending either by their escaping or being evicted. Members of the McReynolds family, including Huong, Joseph, and James, each married Vietnamese victims. The victims believed they would be entering legitimate marriages with these McReynolds family members. Huong McReynolds shepherded victims through the visa process, to include coaching them prior to their interviews at the consulate. Once the victims were in the United States, Huong

McReynolds confiscated their passports and identification, and informed them that they would not only be working at her home, but also long hours in their bridal shop. Despite their marriages to the victims, Huong McReynolds and James McReynolds, who divorced in 1996, continued to live together as husband and wife. Both before and after Joseph McReynolds marriage to one of the Vietnamese victims, he was living with a U.S. citizen, with whom he fathered children both before and during his fraudulent marriage. Regarding the I Do, I Do Wedding Shop and other real property in Flagstaff, the United States District Court has issued a restraining order to preserve that property, and to prevent the removal or sale of such assets prior to the resolution of the criminal forfeiture proceedings included in the Indictment. The United States Marshal will act as receiver for the property. The phone number for the wedding shop will remain operational. If customers have immediate questions, they can contact the shop, however, the Marshals Service will be reaching out to contact existing customers. A conviction for a violation of conspiring to engage in forced labor carries a maximum penalty of five years in prison, a $250,000 fine or both. A conviction for a violation of forced labor carries a maximum penalty of 20 years in prison, a $250,000 fine or both. A conviction for unlawful conduct with respect to documents in furtherance of forced labor carries a maximum penalty of five years in prison, a $250,000 fine or both. A conviction for a violation of the Fair Labor Standards Act carries a maximum penalty of six months in prison, $10,000 or both. Finally, a conviction for a violation of conspiring to engage in marriage fraud carries a maximum penalty of five years in prison, a $250,000 fine or both. In determining an actual sentence, the assigned District Court Judge, Judge Snow, will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. Judge Snow, however, is not bound by those guidelines in determining a sentence. An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable HUONG page 7

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Swiss International Banks Former Head of North America Offshore Banking Markus Walder, Others Charged with Conspiracy
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 10:23 AM July 22, 2011

The Department of Justice (DOJ) on July 21, 2011 released the following: Superseding Indictment Alleges Defendants Helped U.S. Taxpayers Hide Assets in Secret Accounts WASHINGTON Markus Walder, former head of North America Offshore Banking at an international bank headquartered in Zurich; Susanne D. Regg Meier, a former manager with the international bank; Andreas Bachmann, a former banker at a subsidiary of the international bank; and Josef Drig, the founder of a Swiss trust company, have been charged with conspiring with other Swiss bankers to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced today. The four are charged in a superseding indictment together with four other defendants (Marco Parenti Adami, Emanuel Agustino, Michele Bergantino and Roger Schaerer) who were charged in an indictment returned on Feb. 23, 2011. According to the superseding indictment, the international banks managers and bankers engaged in illegal cross-border banking that was designed to assist U.S. customers evade their income taxes by opening and maintaining secret bank accounts at the bank and other Swiss banks. As of the fall of 2008, the international bank maintained thousands of secret accounts for U.S. customers with as much as $3 billion in total assets under management in those accounts. The conspiracy dates back to 1953 and involved two generations of U.S. tax evaders including U.S. customers who inherited secret accounts at the international bank. Moreover, according to the superseding indictment, the conspirators utilized a representative office in New York City to provide unlicensed and unregistered banking services to U.S. customers with undeclared accounts. Walder, Schaerer, their co-conspirators and others allegedly made false statements and provided misleading information to the Federal Reserve Bank of New York and to the IRS in order to conceal the international banks U.S. cross-border banking business and the role of the New York representative office in that business. The superseding indictment alleges that Walder supervised the U.S. cross-border banking business, including the New York

representative office headed by Schaerer, a Geneva-based team of bankers led by manager Marco Parenti Adami and a Zurich-based team of bankers led by manager Regg Meier. Regg Meier was a member of senior management at the international bank and also served as a private banker, providing unlicensed and unregistered banking services to U.S. customers with undeclared accounts at the bank. The superseding indictment further alleges that Bachmann was a private banker for a wholly-owned subsidiary of the international bank who traveled to the United States to assist U.S. taxpayers in evading their U.S. taxes through the use of secret bank accounts. It is further alleged that Drig, founder of a Swiss trust company, was a preferred provider of the international bank who assisted U.S. customers in forming and maintaining nominee tax haven entities and opening secret accounts at the international bank and its subsidiaries in the names of the entities. According to the superseding indictment, the defendants and their co-conspirators solicited U.S. customers to open secret accounts because Swiss bank secrecy would permit them to conceal from the IRS their ownership of accounts at the international bank and other Swiss banks. It is further alleged that they provided unlicensed and unregistered banking services and investment advice to customers in the United States in person while on travel to the United States, including at the international banks representative office in New York City and by mailings, email and telephone calls to and from the United States. It is further alleged that the international banks employees destroyed statements and other account records that were sent via email or facsimile to the representative office in New York so that records regarding the undeclared accounts would not be maintained in the United States. The superseding indictment alleges that the defendants and their co-conspirators caused U.S. customers to travel outside the United States to conduct banking related to their secret accounts; opened secret accounts in the names of nominee tax haven entities for U.S. customers; accepted IRS forms that falsely stated under penalties of perjury that the owners of the secret accounts were not subject to U.S. taxation; advised and caused United States customers to structure withdrawals from their secret accounts in amounts less

than $10,000 in an attempt to conceal the secret accounts and the transactions from American authorities; mailed bank checks in amounts less than $10,000 to customers in the United States; and advised U.S. customers to utilize offshore charge, credit and debit cards linked to their secret accounts and provided the customers with such cards, including cards issued by American Express, Visa and Maestro. According to the superseding indictment, after the bank decided to close the secret accounts maintained by U.S. customers, the defendants encouraged and assisted U.S. customers to transfer their secret accounts to other foreign banks as a means of continuing to hide their assets from the IRS and discouraged the customers from disclosing their secret accounts to the IRS through the IRSs Voluntary Disclosure Program. Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; John A. DiCicco, Principal Deputy Assistant Attorney General for the Justice Departments Tax Division; and Douglas H. Shulman, Commissioner of the IRS, made the announcement. A criminal indictment is only an accusation and a defendant is presumed innocent until proven guilty. If convicted, the defendants each face a maximum of five years in prison and a maximum fine of $250,000. U.S. Attorney MacBride and Principal Deputy Assistant Attorney General DiCicco commended the investigative efforts of the IRS agents involved in this case, as well as Senior Litigation Counsels Kevin M. Downing and John E. Sullivan and Trial Attorneys Mark F. Daly, Tino M. Lisella, Michelle M. Petersen and Melissa Siskind of the Tax Division, and Assistant U.S. Attorney Mark Lytle, who 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.

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Federal Criminal Justice

Dallas Federal Grand Jury Indicts Vathany Teng, Lina Ma and Jerry Goh with Conspiracy to Commit Bank Fraud and Two Substantive Counts of Bank Fraud
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 7:13 AM July 22, 2011

The U.S. Attorneys Office Northern District of Texas on July 21, 2011 released the following: FEDERAL GRAND JURY INDICTS THREE COLLIN COUNTY RESIDENTS IN BANK FRAUD CONSPIRACY INVOLVING NEARLY $3.2 MILLION IN LOAN PROCEEDS TO PURCHASE LAUNDROMAT AND TOWN HOMES IN IRVING, TEXAS One Defendant Also Charged With Witness Tampering DALLAS A federal grand jury in Dallas has returned a four-count indictment this week charging three individuals, Vathany Teng, Lina Ma and Jerry Goh each with one count of conspiracy to commit bank fraud and two substantive counts of bank fraud in relation to a loan fraud scheme they allegedly ran in the Dallas area from August 2007 to April 2008. In addition, defendant Jerry Goh, a lawyer, is also charged with one count of witness tampering. All three defendants are expected to surrender to federal authorities and appear tomorrow, July 22, 2011, at 2:00 p.m., before U.S. Magistrate Judge Irma C. Ramirez. Todays announcement was made by U.S. Attorney James T. Jacks of the Northern District of Texas. The indictment alleges that the defendants conspired together to deceive Prosper Bank, located in Prosper, Texas, and United Central Bank (UCB), located in Garland, Texas, by fraudulently inducing them to make a U.S. Small Business Administration (SBA) guaranteed loan and two commercial loans to Lina Ma, 52, of Plano, Texas. The conspiracy involved one fraudulent loan from Prosper Bank for $1.835 million to purchase a laundromat in Garland and two UCB loans, totaling $1.3 million, for Ma to purchase improved land in Garland and 31 lots in a town home subdivision in Irving, Texas. Part of the conspiracy involved the defendants deceiving Prosper Bank and UCB by fraudulently inducing them to

make large SBA guaranteed and commercial loans to Ma knowing that these financial institutions would not likely approve the loans if the defendants fully disclosed all material and relevant information. For instance, for the Prosper Bank loan, seller Vathany Teng, 40, of Plano, and Ma discussed the loan with Goh, an escrow officer, telling him that Ma didnt have the necessary funds for the down payment. Goh, 49, of Allen, Texas, assured Teng that he had done this sort of thing before and knew what to do to get Mas loan approved. Goh told Teng that she must pay Goh $30,000 in return for his help in getting Ma approved for all of these fraudulent loans. In both the Prosper Bank and UCB loans, the defendants concealed from the lender bank that buyer Lina Ma was not the actual source of the lender required borrower down payment funds. In the Prosper Bank loan, escrowr officer Goh concealed from Prosper Bank that he fraudulently disbursed funds to Teng knowing that these seller proceeds would then be used by Teng to fund Mas down payment on the Prosper Bank loan. Goh was also involved in fraudulently generating funds for Ma to use for her UCB loan down payments, thus enabling her to falsely represent to UCB that she had sufficient down payment funds. Goh assisted Teng and Ma in soliciting more than $449,000 of investor funds, later used by Ma for the down payment funds. Goh, Teng and Ma defrauded and deceived UCB by concealing that Ma had to borrow the funds needed for the down payments and that these investor funds were actually short term loans by the investors to Ma. Regarding the witness tampering count, in October 2010, Goh made several statements to Teng to persuade her to lie and withhold information if she was later interviewed by the FBI. Part of that conversation involved Goh asking Teng what she would say if interviewed, Teng replying that she would answer whatever they asked and Goh telling her not to be so dumb. 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 bank fraud and each of the substantive bank fraud counts carry a maximum statutory sentence of 30 years in prison and a $1 million fine. The witness tampering count, upon conviction, carries 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 U.S. SBA Office of the Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis 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.

Hacker Sentenced in Virginia to 10 Years in Prison for Stealing 675,000 Credit Card Numbers Leading to $36 Million in Losses
(USDOJ: Justice News)
Submitted at 4:07 PM July 22, 2011

Rogelio Hackett Jr., 25, of Lithonia, Ga.,

was sentenced today to 120 months in prison by U.S. District Judge Anthony J. Trenga in Alexandria, Va., for trafficking

in counterfeit credit cards and aggravated identity theft.

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Danny Harris Jr. and Raymond Thomas Jr. Indicted by a Federal Grand Jury in San Francisco Federal Court
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 8:16 AM July 22, 2011

The U.S. Attorneys Office Northern District of California on July 21, 2011 released the following: FORMER RICHMOND POLICE OFFICERS CHARGED WITH CONSPIRACY TO TAMPER WITH WITNESSES One Officer Also Charged With Making False Statements In Order To Purchase Firearms For Other Individuals, Including Two Minors SAN FRANCISCO A federal grand jury in San Francisco indicted Danny Harris Jr. of Pinole, Calif., on July 21, 2011, with making false statements in order to purchase three semiautomatic pistols from a San Jose, Calif., firearms dealer. Both Harris and Raymond Thomas Jr. of Fairfield, Calif., were charged with conspiring to tamper with witnesses and obstruct a federal investigation and court proceedings, United States Attorney Melinda Haag announced. According to the indictment, both defendants were police officers with the Richmond Police Department when the offenses took place. Harris is alleged to have made false statements to a federal firearms dealer in San Jose in connection with the purchase of three semiautomatic handguns. According to the indictment, Harris falsely stated that he was the true buyer of the guns, when he knew that the true buyers were other individuals. In the case of two of the weapons, the true purchasers were individuals under twentyone years of age. Under federal law, it would have been illegal for the dealer to knowingly sell the handguns to someone under twenty-one. The indictment also charges that after Harris made the false statements in connection with the gun purchases, he and defendant Thomas conspired to knowingly use intimidation, threats and corrupt persuasion in order to prevent or hinder witnesses from reporting information to federal law enforcement officers. The defendants are charged with conspiring to obstruct, influence and impede a federal

grand jury investigation and proceedings in federal court. The indictment describes a series of acts undertaken by Harris and Thomas to intimidate the two minors for whom Harris purchased the firearms in order to prevent them from reporting possible federal crimes to federal law enforcement and to influence and obstruct a federal investigation. The acts included pressuring one of the minors to change the registration of one of the guns so that it no longer showed up in Harris name; using intimidation tactics, including threats of legal action and the filing of a civil suit, in order to get possession of one of the guns from the minor; and hiring a private investigator in Concord, Calif., to conduct a sting operation targeting the two minors for whom Harris purchased firearms. The alleged goal of the sting operation was to have the minors arrested for drunk driving and illegal possession of the guns. The indictment alleges that Thomas paid more than $1,800 to the private investigator in order to conduct the sting operation. The indictment alleges that Harris and Thomas approved of the plan whereby a female employee of the private investigator would meet one of the minors and make overtures in order to engage in future social engagements. The plan was for the woman to encourage the minor to bring his gun to one of those meetings. According to the indictment, the woman did meet the minor and they exchanged cell phone numbers. Through text messages, they set up a social engagement and the woman asked the minor to bring his gun to the engagement. The defendants are scheduled to make their initial appearances in federal court in Oakland on Aug. 9, 2011, at 9:30 a.m. before United States Magistrate Judge Laurel Beeler. The maximum statutory penalty for each count of making a false statement in the acquisition of a firearm, in violation of 18 U.S.C. 922(a)(6), as alleged in counts one through three of the indictment, is 10 years imprisonment, a $250,000 fine, three years supervised release, and a $100 special assessment. The maximum statutory penalty for making a false

statement in the record of a licensed firearms dealer, in violation of 18 U.S.C. 924(a)(1)(A), as alleged in count four of the indictment, is five years imprisonment, a $250,000 fine, three years supervised release, and a $100 special assessment. The maximum statutory penalty for conspiracy to prevent communication to a law enforcement officer, in violation of 18 U.S.C. 1512(k), as alleged in count five, and for conspiracy to impede an official proceeding, also in violation of 18 U.S.C. 1512(k), as alleged in count six, is 20 years imprisonment, a $250,000 fine, three years supervised release, and a $100 special assessment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. 3553. Susan Badger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rania Ghawi and Cristhian Escobar. The prosecution is the result of an eleven-month investigation by the Federal Bureau of Investigation, Richmond Police Department, and the Contra Costa County District Attorneys Office. Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Harris and Mr. Thomas must be presumed innocent unless and until proven guilty. Further Information: Case #: CR 11-0497 CW 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.

Foreclosure Fraud
fbi (White-Collar Crime)
Submitted at 6:00 AM July 22, 2011

FBIs Top Ten News Stories for the Week Ending July 22, 2011
fbi (Current)
Submitted at 6:00 AM July 22, 2011

How a Los Angeles foreclosure relief business fleeced 250 struggling homeowners.

Washington, D.C.

Federal Criminal Defense Lawyers

Federal Criminal

Stewart Chase, Former Background Investigator For Federal Government, Pleads Guilty to Making a False Statement
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 7:12 AM July 22, 2011

The U.S. Attorneys Office District of Columbia on July 21, 2011 released the following: WASHINGTON Stewart Chase, 53, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management. Chase, of Sterling, Virginia, pled guilty in the U.S. District Court for the District of Columbia to a charge of making a false statement. The Honorable James E. Boasberg scheduled sentencing for October 6, 2011. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000. As part of the guilty plea, Chase has agreed to pay $131,101 in restitution to the federal government. According to a statement of offense submitted to the Court, Chase was employed by United States Investigations Services and CACI International Inc. as an investigator under contract to conduct background investigations on behalf of OPMs Federal Investigative Services. Between July 2006 and December 2007, in more than four dozen Reports of Investigations on background investigations, Chase represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation when, in fact, he had not conducted the interview or obtained the record. These reports were utilized and relied upon by the agencies

requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances. Chases false representations have required OPMs Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of $131,101 to the U.S. government. The restitution in this case will be paid to Federal Investigative Services. This is one of several cases prosecuted by the U.S. Attorneys Office for the District of Columbia in the last three years involving false representations by background investigators and record checkers working on federal background investigations. Eight background investigatorsand two record checkers previously were convicted of charges. Federal Investigative Services, formerly known as the Center for Federal Investigative Services or the Federal Investigative Services Division, through its workforce of approximately 7,300 investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services processed approximately 2 million investigations in the 2010 fiscal year. In conducting background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to

verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individuals eligibility for employment or a security clearance. In announcing the guilty plea, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and Philip Kroop, Chief of Quality and Integrity Assurance, OPM-Federal Investigative Services. Mr. Machen and Mr. McFarland also acknowledged the work of Assistant U.S. Attorneys Ellen Chubin Epstein, Mary Chris Dobbie and Seth B. Waxman, who investigated and prosecuted this matter. 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.

HUONG
continued from page 3

doubt. The investigation was conducted by ICE HSI, the FBI, the United States Department of Labor, and the United States Marshals Service. The prosecution is being handled by Krissa Lanham and Josh Patrick Parecki, Assistant U.S. Attorneys, District of Arizona, Phoenix. CASE NUMBER: CR-11-8133-PCT-

GMS 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.

Federal Criminal

Federal Criminal Defense Lawyers

Clerk of US District Court for the Northern District of Illinois to Retire December 31, 2011
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 7:04 AM July 22, 2011

The U.S. District Court Northern District of Illinois on July 21, 2011 released the following: CHICAGO Michael W. Dobbins, who has been the Clerk of the United States District Court for the Northern District of Illinois since 1997, announced today he is retiring effective December 31, 2011. Chief Judge James F. Holderman stated, Mike Dobbins, over his thirty-five year career, has served the courts of the United States and the public with great distinction. In my opinion, he is the best federal district court clerk in the country. All the people of our district have benefitted greatly from his outstanding administrative skills and expertise during these past fourteen years he has served as our Clerk of Court here in the Northern District of Illinois. As the Clerk of Court, Mr. Dobbins has overseen the administration and operation of the United States District Court for the Northern District of Illinois, the third largest federal district court in the country.

He has had fiscal responsibility for the more than $26 million in the operating budget and other accounts of the district court. Mr. Dobbins twice, in 1995 and 2007, received the prestigious Directors Award for Outstanding Leadership awarded each year by the Director of the Administrative Office of the United States Courts to the federal court administrator who has most demonstrated outstanding leadership in improving the administration of the federal courts. Mr. Dobbins, at the request of the United States Government, has served internationally as a consultant to help other countries improve their court systems. On a national level, he has reviewed the operations of multiple federal district and bankruptcy courts and has advised them on ways to improve their systems to provide better service to the public. He has also been a moderator and faculty member of several educational programs sponsored by the Federal Judicial Center in Washington, D.C. for court administrative personnel and federal judges.

In addition to his college degree, Mr. Dobbins holds professional certifications as a certified judicial administrator, a certified financial planner, and a certified mediator. Chief Judge Holderman stated, We will immediately begin a national search for a new Clerk of Court, but Mike Dobbins will be difficult to replace because of his thoughtful planning, his steady approach, his vision, and his initiative in always working to do the job better for the public that we serve. 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.

Melvin L. Calhoun Indicted by a Buffalo Federal Grand Jury with Narcotics and Firearm Offenses
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 6:45 AM July 22, 2011

The U.S. Attorneys Office Western District of New York on July 21, 2011 released the following: NIAGARA FALLS MAN CHARGED WITH NARCOTICS AND FIREARM OFFENSES BUFFALO, N.Y.U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a three count Indictment against Melvin L. Calhoun, 22, of Niagara Falls, New York, charging him with possession with intent to distribute marijuana, maintaining a drug involved premises, and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a maximum penalty of 25 years in prison, a fine of $1,000,000, or both.

Assistant U.S. Attorney Robert C. Moscati, who is handling the case, stated that the Indictment charges the defendant with storing and selling marijuana at 119 12th Street, Niagara Falls, New York. On October 1, 2010, local officers and federal agents executed a search warrant at Calhouns residence and recovered quantities of marijuana, a digital scale, and a .38 caliber pistol from Calhouns bedroom. The Indictment is the culmination of an investigation on the part of the Niagara Falls Police Department, under the direction of Chief John Chella, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in-Charge Frank Christiano, and the Drug Enforcement Administration, under the direction of Resident Agent in-Charge Dale

Kaspryzyk. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless 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.

Federal Criminal Defense Lawyers

Federal Criminal

ICE HSI Investigation Uncovers an Alleged Florida Document Fraud Operation

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 11:16 AM July 22, 2011

The U.S. Immigration and Customs Enforcement (ICE) on July 22, 2011 released the following: An informant for U.S. Immigration and Customs Enforcement (ICE) made a phone call to Carlos. He explained to Carlos that he was at a local restaurant and needed some fake documents a permanent resident card and a social security card. In no time, Carlos arrived and delivered the documents. The informant paid for the goods. The transaction was seamless. That was the case throughout a ninemonth investigation led by ICE Homeland Security Investigations (HSI) special agents. They discovered that Carlos was actually Jose Oropeza, and that he was working for Jorge Santiago-Gomez, one of the biggest document dealers in Pinellas County, Fla. Santiago-Gomez was running a document mill out of his apartment, a location that frequently changed. He moved every three weeks to stay elusive, said Joe Durand, an ICE HSI agent with the Tampa office. And he was moving a lot of docs. Santiago-Gomez had high-end computer

equipment and images of identification cards from various states and federal agencies, including social security cards, drivers licenses and resident alien cards. Packages of these fraudulent documents sold for about $150 to $200. Agents estimate that Santiago-Gomez and Oropeza were making thousands per month in this enterprise. During the investigation, Durand noted, Anything he [the informant] needed, we could easily pick up which eventually lead to the conspirators downfall. When agents went to serve a search warrant at Santiago-Gomezs residence, he walked out holding a handful of fraudulent documents. Santiago-Gomez and Oropeza are currently serving 37-month and 18-month

prison sentences, respectively. Neither individual is a U.S. citizen. They will be removed to their native Mexico upon completion of their prison terms. Document and benefit fraud poses a severe threat to national security and public safety because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States, said Susan McCormick, special agent in charge of the ICE HSI Tampa office. That is why this particular type of fraud is a high priority for ICE HSI. Currently, ICE leads 18 Document and Benefit Fraud Task Forces across the country. These task forces detect, deter and disrupt document and benefit fraud. 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.

PHILIP
continued from page 2

Americans. Lockmiller, Sr. faces not more than 5 years imprisonment, and up to a $250,000 fine for one count of conspiracy. He faces not more than 20 years in federal prison, and up to a $500,000 fine, or twice the amount of the criminally derived property, for one count of money laundering conspiracy. He also faces not more than 10 years in prison, and up to a $250,000 fine, for each of 19 counts for money laundering, and not more than 20 years in prison, and up to a $250,000 fine for each of 10 counts of mail fraud. This case was investigated by the Federal Bureau of Investigation and the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Michelle Heldmyer, Pegeen Rhyne, and Tim Neff. This prosecution is part of President

Barack Obamas Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud 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. 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.