Federal Criminal Defense Lawyers

Wednesday, June 29, 2011

www.McNabbAssociates.com

Palm Beach Owner of Three Precious Metals Firms Charged in an Alleged $25 Million Precious Metals Investment Scheme
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:32 AM June 29, 2011

U.S. Attorneys Office Southern District of Florida on June 28, 2011 released the following press release: Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Henry Gutierrez, Postal Inspector in Charge, United States Postal Inspection Service, and J. Thomas Cardwell, Commissioner, State of Floridas Office of Financial Regulation, announced that Jamie Campany, 47, of Palm Beach County, has been charged in a Criminal Information with multiple counts of mail and wire fraud. The Information charges Campany with five counts of mail fraud and four counts of wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343, respectively. Campany is scheduled to make his initial appearance in court before U.S. Magistrate Judge Lurana S. Snow tomorrow at 11:00 AM in federal court in Fort Lauderdale. According to the Information, Campany was the owner of three investment firms specializing in purported gold, silver, platinum, and palladium bullion purchases on behalf of individual clients. Among his companies were Global Bullion Exchange, LLC (Global), in Lake Worth, Florida, and various affiliated licensee businesses throughout Palm Beach, Broward and Miami-Dade counties and other locations outside of Florida. In addition to Global, Campany owned and operated two predecessor firms, Barclay Trading Group, Inc. (Barclay) and The Bullion Group, Inc., both with offices in West Palm Beach. As alleged in the Information, Campanys three businesses conducted a sophisticated telemarketing operation to solicit investors to purchase precious metal bullion using
Tracy Russo (USDOJ: Justice Blog)
Submitted at 12:29 PM June 29, 2011

purported leverage financing. These same investors were led to believe that they would need only to provide a fraction of the total cost of the purchased metals, with the remainder of the purchase price to be covered by margin-type financing, which would purportedly be extended to the investor by a purported clearing firm. As further detailed in the Information, from about September 2006 to April 2007 when Barclay was succeeded by Global, the purported clearing firm with which Barclay had initially associated began delaying and ultimately ignoring requests by Barclays customers to sell their precious metals investments. As a result, the unsatisfied clients began to complain and threatened Barclay with litigation. In addition, the clearing firms failure to sell the clients holdings left Barclay insolvent. As further alleged in the Information, in an attempt to prevent further complaints, litigation, and possible governmental enforcement action, Barclay began to satisfy its clients requests for liquidation of their investments by making payments to these clients using funds it had received from newer investors. After Global succeeded Barclay, Global continued this same Ponzi strategy. Global thereafter used Diversified Investment Group, Inc. (Diversified), a shell company controlled by defendant Campany, as its purported clearing firm. In fact, however, the Information alleges that no bullion was purchased, even though clients paid substantial commissions and fees totaling approximately 18% of the total purported value of the metal allegedly purchased. According to the Information, Campany also misrepresented to the investors that their holdings had been financed through so-called margin credit. Thus, the investors were charged substantial interest on these non-existent loans and were the Thomas More Law Center v. Obama case dismissing the challenge to the Affordable Care Act upholding the law as constitutional. Tracy Schmaler, Deputy

subjected to periodic false margin calls during market declines. A margin call required investors to supply additional funds upon demand to increase their account equity levels. Moreover, investors who could not comply with such margin calls were informed that their investment positions had been forcibly liquidated and taken by Diversified as a secured creditor. In a recent litigation filed in Miami-Dade Circuit Court by a court-appointed assignee, it is estimated that more than 1,400 investors were defrauded by Campanys scheme out of more than $25 million. Campany faces a maximum sentence of twenty years imprisonment and a maximum $250,000.00 fine for each of the Informations nine counts. Mr. Ferrer commended the investigative efforts of the FBI, U.S. Postal Inspection Service and Floridas Office of Financial Regulation. In addition, Mr. Ferrer thanked the Commodity Futures Trading Commission and National Futures Association for their assistance in this case. The case is being prosecuted by Assistant U.S. Attorney Peter B. Outerbridge. An Information is only an accusation, and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Another Victory for the Affordable Care Act

Today the Sixth Circuit Court of Appeals affirmed the district courts ruling in Director of the Office of Public Affairs released the following statement: We welcome the Sixth Circuits ruling today dismissing [...]

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Manhattan U.S. Attorney Charges Five Former New York City Public School Employees with Allegedly Defrauding the City Out of More Than $500,000
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 3:42 PM June 29, 2011

U.S. Attorneys Office Southern District of New York on June 29, 2011 released the following press release: PREET BHARARA, the United States Attorney for the Southern District of New York, ROSE GILL HEARN, the Commissioner of the New York City Department of Investigation (DOI), and RICHARD J. CONDON, Special Commissioner of Investigation for the New York City School District (SCI), announced today the unsealing of federal fraud charges against five former New York City public school employees for defrauding the New York City Department of Education (DOE) out of more than $500,000. Manhattan U.S. Attorney PREET BHARARA stated: As charged, the defendants were City employees who lined their pockets with hundreds of thousands of dollars that were supposed to be used to keep New York City public schools clean and safe for students. The defendants were allegedly paid by the Department of Education for work they did not do, and despite their alleged efforts to conceal the scheme, their fraud was ultimately uncovered. This Office is committed to working with our partners at the DOI and SCI to identify those who steal scarce public funds and bring them to justice. DOI Commissioner ROSE GILL HEARN stated: These defendants abused their City positions and showed contempt for the Citys taxpayers and school children, according to the criminal charges, and they now face justice. City employees who see public funds as personal entitlements should heed these arrests and the substantial penalties that may follow. DOI, through the Special Commissioner, and the U.S. Attorney for the Southern District of New York are committed to protecting the Citys school system and precious education dollars from fraud and corruption. NYC School District Special Commissioner of Investigation RICHARD J. CONDON stated: We hope that the charges brought by the U.S. Attorney for the Southern District as a result of SCIs investigation will return wrongfully diverted public funds to the Citys school children. The charged defendants are: TRIFON RADEF, 75, who was the Custodian at

Roosevelt High School in the Bronx from 2005 through 2011; NICANOR FERNANDEZ, 72, who was the Custodian at Truman High School in the Bronx from 2002 through 2010; JAMES COPPOLA, 54, who was a handy man at Intermediate School 25 in Queens from 2005 through 2011; FRANK CHAMBERS, 66, who was a senior lunch helper at Public School 158 in Queens from 1996 through 2011; and MICHAEL CUNNINGHAM, 58, who was a custodial fireman at Public School 158 in Queens from 1990 through 2011. RADEF, FERNANDEZ, COPPOLA, and CHAMBERS, were arrested this morning and are expected to be presented in Manhattan Federal Court this afternoon. CUNNINGHAM is still being sought. According to the Complaint unsealed today in Manhattan federal court, the DOE was defrauded in two separate but related schemes. In the first scheme, RADEF and FERNANDEZ allegedly authorized the payment of hundreds of thousands of dollars to CUNNINGHAM, COPPOLA, and CHAMBERS from custodial payroll accounts for Roosevelt High School (Roosevelt) and Truman High School (Truman) for work that they did not perform. More specifically, CUNNINGHAM was on the payroll of Truman from September 2007 through October 2010, even though he was also on the payroll of Public School 158 (P.S. 158) during this time period. CUNNINGHAM was fraudulently issued approximately 78 checks from the Truman custodial payroll account totaling over $110,000. COPPOLA was on the payroll of Roosevelt from September 2007 through October 2008, and the payroll of Truman from January 2008 through September 2010, even though he was also on the payroll of Intermediate School 25 during these same time periods. COPPOLA was fraudulently issued approximately 58 checks from the Truman custodial payroll account totaling over $99,000, and approximately 14 checks from the Roosevelt custodial payroll account totaling over $21,000. CHAMBERS was on the payroll of Roosevelt from September 2007 through April 2010, even though he was employed at P.S. 158 during this time period. CHAMBERS was fraudulently issued approximately 74 checks from the Roosevelt custodial payroll account

totaling over $137,000. All of these fraudulent payments made to CUNNINGHAM, COPPOLA, and CHAMBERS were approved by RADEF and FERNANDEZ, who controlled the custodial payroll accounts at Roosevelt and Truman, respectively. In addition, as part of this scheme, FERNANDEZ allegedly authorized the payment of additional custodial payroll funds to RADEF for work RADEF did not perform. According to E-Z Pass records of the account for RADEFs vehicle and law enforcement surveillance of him, RADEF was paid for well over 3,000 hours of work at Truman that he did not actually perform. In fact, many times when RADEF was supposed to be at Truman working, he was either at his home in Queens or at various restaurants and social clubs. In the second scheme, RADEF recruited various employees of the DOE who were working in the New York City public schools to perform construction, painting, landscaping, and maintenance work at one or more of nine different residential properties located in Queens that he owned. RADEF then arranged for these employees to be fraudulently paid for this work from DOE funds, specifically from custodial payroll accounts from either Roosevelt or Truman, which were controlled by him and FERNANDEZ. In order to conceal this scheme, RADEF had these DOE employees sign fraudulent time cards and endorse checks from these custodial payroll accounts. RADEF, FERNANDEZ, and CUNNINGHAM are each charged with two counts of conspiracy to commit theft concerning a program receiving federal funds and two substantive counts of theft concerning a program receiving federal funds. COPPOLA and CHAMBERS are each charged with one count of conspiracy to commit theft concerning a program receiving federal funds and one substantive count of theft concerning a program receiving federal funds. If convicted of all counts, RADEF, FERNANDEZ, and CUNNINGHAM face a maximum of 30 years in prison and COPPOLA and CHAMBERS face a maximum of 15 years in prison. Mr. BHARARA praised the investigative work of the DOI and SCI. This case is being prosecuted by the Offices Public Corruption Unit. Assistant MANHATTAN page 3

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Federal Criminal Justice

Jury Convicts Four Hermanos Pistoleros Latinos Gang Members of Drug and Firearms Charges
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:36 AM June 29, 2011

U.S. Attorneys Office Southern District of Texas on June 28, 2011 released the following press release: LAREDO, Texas Late yesterday afternoon a federal jury convicted four members of the Hermanos Pistoleros Latinos (HPL) street gang of various charges arising from a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) sting operation, United States Attorney Jos Angel Moreno announced today. Mark Anthony Milan, 26, Cristobal Cervantes, 28, and Luis Eduardo Alvarez, 27, all of Laredo, were found guilty of conspiracy with intent to distribute 25 kilograms of cocaine and possession of a firearm in furtherance of a drug trafficking crime. A fourth defendant, Michael Porras -Castillo, 25, also of Laredo, along with Milan and Cervantes, were found guilty of possession of a firearm by a convicted felon. All four defendants have been remanded into the custody of the United States Marshals Service pending their sentencing on Oct. 11, 2011. All four defendants are self-professed members of the HPL. During trial before U.S. District Judge Micaela Alvarez, the jury heard testimony from ATF agents that Milan came to the attention of the ATF last year when Milan attempted to buy 25 machine guns he intended to sell in Mexico from an undercover ATF agent. That deal was called off by the ATF agent when the

money was not timely produced. However, ATF initiated a separate investigation into Milan after learning that Milan had expressed an interest in committing home invasions to a confidential source. In February 2011, Milan met with a second undercover ATF agent (UC) on three separate occasions. Each time Milan was accompanied by Cervantes. During each meeting, the UC, who posed as a disgruntled truck driver, Milan and Cervantes discussed burglarizing a residence purportedly containing 25 kilograms of cocaine. The UC was to receive five kilograms of the contraband for the information. It was agreed that the burglary would take place on March 9, 2011, and a final meeting between the UC and the defendants was set to occur on that date in advance of the operation. On March 9, 2011, at their final meeting before executing the planned home invasion, Milan and Cervantes were accompanied by co-defendants PorrasCastillo and Alvarez. All four of the defendants were dressed all in black, with Russain SKS assault weapons, body armor, gloves, handcuffs and ski masks. The UC spoke with the four defendants briefly as they sat in their vehicle and briefly reviewed the planned invasion and drugs to be taken. As planned, before the home invasion could occur, other ATF agents observing the planned meeting, moved in and arrested all four defendants. During trial, Milan and Cervantes attempted to convince the jury they had

been entrapped by the UC, that is, they claimed they would not have been involved in the conspiracy had the UC not suggested it. Their attempt proved unveiling as the jury found them both guilty of conspiring to possess with intent to distribute the 25 kilograms of purported cocaine. Porras and Alvarez claimed they had been recruited to commit a home invasion to collect money which was owed and denied any knowledge of cocaine. The claim proved unavailing for Alvarez who was convicted of the drug conspiracy charge. Porras, who claimed a limited understanding of the English language, was acquitted of the drug conspiracy, but found guilty along with Milan and Cervantes of being a felon in possession of a firearm. Convicted felons are prohibited by law from possessing firearms or ammunition. Assistant United States Attorney James Ustynoski represented the United States at trial and 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.

MANHATTAN
continued from page 2

U.S. Attorney STEVE C. LEE 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.

Pittsburgh Crips Gang Member Sentenced to 72 Months in Prison

(USDOJ: Justice News)
Submitted at 6:03 PM June 29, 2011

A Pittsburgh man was sentenced today to 72 months in prison for conspiring to conduct a racketeering enterprise related to his membership in a Pittsburgh Crips gang.

Anti-Violence Strategy Month: Celebrating the Fight Against Crime and Recidivism
Tracy Russo (USDOJ: Justice Blog)
Submitted at 9:44 AM June 29, 2011

The Justice Department commemorated Anti-Violence Strategy month in June, with events across the nation, to spotlight and unveil effective strategies and initiatives to combat violence. Attorney

General Eric Holder spoke to Cleveland Defending Childhood Initiative team members at a violent crime prevention event sponsored by Stand Together Against Neighborhood Crime Everyday on June 28, 2011. At [...]

Romanian Man Sentenced to 48 Months in Prison for Role in International Fraud Scheme Involving Online Auction Websites
(USDOJ: Justice News)
Submitted at 5:20 PM June 29, 2011

A Romanian man was sentenced today to 48 months in prison for his role in moving and hiding the illicit proceeds of an international fraud scheme.

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Newark Men Sentenced on Insider Trading Charges

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 3:56 PM June 29, 2011

U.S. Attorneys Office District of Delaware on June 29, 2011 released the following press release: United States Attorney Charles M. Oberly, III, announced today that Jeffery Temple, age 40, of Newark, DE, was sentenced late on Tuesday, June 28, in the U.S. District Court in Wilmington to a term of twelve months and one day of imprisonment following his guilty plea to one count of securities fraud. U.S. District Judge Sue L. Robinson also sentenced Temple to two years of supervised release following his prison term. Earlier this month, Temple agreed to pay the government $82,957 as part of the settlement of a parallel civil case brought by the Securities and Exchange Commission. Temples brother-in-law and codefendant, Benedict Pastro, was sentenced by Judge Robinson on Monday to two years of probation for his role in the insider trading scheme. According to statements made during that proceeding, Mr. Pastro had cooperated with the

governments investigation. According to the indictment, documents filed in court, and statements made during the sentencing hearings, during the period from June 2009 through September 2010, the defendants engaged in a scheme to conduct securities trades based on material, non-public information which Temple would obtain by virtue of his position as a network manager for Richards, Layton & Finger, a Wilmington law firm. The inside information that Temple obtained related to upcoming public announcements of mergers and acquisitions involving clients of the law firm. Temple would share the information with Pastro, and both defendants would purchase stocks and options prior to the public announcements at issue. Temple used his computer at the firm to create and manage his online stock trading account and, more specifically, to place orders in the suspect securities. During this time, the defendant engaged in such insider trading with respect to over eighteen different public company merger/ acquisition announcements, and collectively obtained at least $180,000 in illegal profits.

The investigation of Temple and Pastro was conducted by the FBI, along with the staff of the Philadelphia Regional Office of the U.S. Securities and Exchange Commission. U.S. Attorney Oberly praised the work of the FBI in investigating this matter, and thanked the SECs Philadelphia Regional Office for its invaluable assistance.2 The case was investigated by FBI Special Agent Jennifer Ferry and was prosecuted by Assistant United States Attorneys Keith M. Rosen and Shawn A. Weede. 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.

U.S. v. Douglas E. Ritter & Steven Fenzl

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:45 PM June 29, 2011

U.S. v. Martin Kanefsky

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:43 PM June 29, 2011

U.S. v. Robert P. Griffiths

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

Sentencing hearing for Fenzl has been rescheduled for June 1, 2011 at 11:00 a.m. Central. Sentencing hearing for Ritter has been rescheduled for May 10, 2011 at 1:00 p.m. Central.

Sentencing hearing has been scheduled for November 15, 2011 at 4:00 p.m. Eastern.

U.S. v. Krzysztof Koczon

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

Sentencing hearing has been scheduled for September 12, 2011 at 11:00 a.m. Eastern.

U.S. v. Mariusz Debowski

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

Sentencing hearing has been rescheduled for September 23, 2011 at 11:00 a.m. Eastern.

U.S. v. Chien Chung Chen, a/k/a Andrew Chen

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:45 PM June 29, 2011

U.S. v. Andrzej Gosek

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

Sentencing hearing has been scheduled for December 13, 2011 at 2:30 p.m. Pacific.

Arraignment/bail hearing has been rescheduled for July 21, 2011 at 10:15 a.m. Eastern.

U.S. v. Chien Chung Chen, a/k/a Andrew Chen U.S. v Chien Chung Chen, aka Andrew Chen (Antitrust Division: Upcoming Public Hearings)
Submitted at 12:45 PM June 29, 2011

Sentencing hearing for Andrzej Gosek has been scheduled for July 27, 2011 at 3:00 p.m. Eastern.

U.S. v. Dominick P. Carollo, et al.

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:43 PM June 29, 2011

Pre-trial conference has been rescheduled for August 9, 2011 at 11:00 a.m. Eastern.

(Antitrust Division: Upcoming Public Hearings)

Submitted at 12:45 PM June 29, 2011

Change of Plea hearing has been scheduled for June 7, 2011 at 2:30 p.m. Pacific.

U.S. v. David Porath

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:43 PM June 29, 2011

Arraignment/bail hearing has been rescheduled for June 7, 2011 at 9:30 a.m. Pacific. Pre-trial conference has been scheduled for July 28, 2011 at 10:30 a.m. Eastern.

U.S. v. Michael Yaron et. al

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

Sentencing hearing has been scheduled for June 28, 2011 at 4:00 p.m. Eastern.

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Antitrust

U.S. v. Adrian ScottJones

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:43 PM June 29, 2011

U.S. v. Samsung SDI Co., Ltd.

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:45 PM June 29, 2011

Sentencing hearing has been scheduled for July 22, 2011 at 11:00 a.m. Eastern.

Status hearing has been rescheduled for May 17, 2011 at 2:00 p.m. Pacific.

U.S. v. Samsung SDI Co., U.S. v. Chien Chung Ltd. Chen, a/k/a Andrew Chen
(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

(Antitrust Division: Upcoming Public Hearings)

Submitted at 12:46 PM June 29, 2011

Sentencing hearing has been scheduled for August 16, 2011 at 2:00 p.m. Pacific.

Sentencing hearing has been rescheduled for June 7, 2011 at 2:30 p.m. Pacific.

U.S. v. Douglas Lee Campbell

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

U.S. v. Samsung SDI Co., Ltd.

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:45 PM June 29, 2011

Sentencing hearing has been scheduled for July 25, 2011 at 12:00 p.m. Eastern.

Status hearing has been scheduled for May 10, 2011 at 2:00 p.m. Pacific.

U.S. v. Bernard Grobart and Teneyck, Inc. f/k/a Neill Supply Co., Inc.
(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:46 PM June 29, 2011

Sentencing hearing is scheduled for July 11, 2011 at 10:00 a.m. Eastern.

U.S. v. David Porath and Andrzej Gosek

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:44 PM June 29, 2011

Sentencing hearing has been scheduled for June 28, 2011 at 4:00 p.m. Eastern.