BALTIMORE—Keith Eugene Daughtry, age 50, of Washington, D.C., pleaded guilty today to conspiring to commit bank fraud in connection with a scheme to fraudulently obtain over $1.399 million from a Baltimore Housing Authority (BHA) bank account in just a few months.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.

According to his guilty plea, Daughtry agreed to provide his identity in a scheme to steal money from the BHA. In May of 2010, a co-conspirator used Daughtry’s identity to obtain a fraudulent driver’s license in Daughtry’s name, but bearing the co-conspirator’s photograph. The conspirators had this fraudulent driver’s license made with the co-conspirator’s photograph so that if law enforcement were to track down Daughtry through the fraudulent license’s use, Daughtry could claim that his identity had been stolen.

On May 25, 2010, the co-conspirator used the fraudulent driver’s license to open a bank account for an entity called Keith Daughtry Contracting LLC. Shortly thereafter, substantial amounts of funds illegally diverted by Daughtry’s conspirators from a BHA bank account were electronically transferred into the Daughtry LLC bank account. These transfers were unlawful because Daughtry LLC had never provided any services to the BHA requiring compensation. Investigators have determined that the conspirators were responsible for transferring at least $1,399,700 stolen from BHA’s account into Daughtry LLC’s account between July and September 2010.

The conspirators then drained these stolen funds from Daughtry LLC’s account by initiating electronic transfers from that account onto debit cards in other individuals’ names, at least one of whose identity had been stolen; through electronic transfers into accounts at other banks; and through in-person cash withdrawals from Daughtry LLC bank accounts and from automated teller machines in the Washington, D.C. area. Daughtry himself withdrew $38,550 from the fraudulent Daughtry LLC account from August 17 to September 9, 2010. Daughtry admits that he is responsible for over $1 million in losses as a result of his participation in the conspiracy.

As part of his plea agreement, Daughtry has agreed to the entry of an order to pay restitution of, and to forfeit, at least $1,399,700.

Daughtry faces a maximum sentence of 30 years in prison and a fine of $1 million or twice the gross gain or loss. U.S. District Judge William D. Quarles, Jr. scheduled his sentencing for May 22, 2012 at 1:00 p.m.

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

United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation and praised Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.

Conspirator Pleads Guilty in Scheme to Fraudulently Obtain Over $1.399 Million from Baltimore Housing Authority Account | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

WASHINGTON—An assistant administrator of a Houston hospital was arrested today on charges related to his alleged participation in a $116 million Medicare fraud scheme involving false claims for mental health treatment, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).

An indictment filed in the Southern District of Texas and unsealed today charges Mohammed Khan, 62, of Houston, with one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive illegal health care kickbacks and five counts of paying or offering to pay health care kickbacks. Khan is expected to make his initial appearance in federal court today in Houston.

“The indictment against Mr. Kahn alleges that he used his position as a hospital assistant administrator to submit millions in false claims to the Medicare program,” said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. “According to the charges, he paid kickbacks to patient recruiters, owners of group homes and assisted living facilities and beneficiaries so that he could fill his hospital with patients for whom he could bill the government for medically unnecessary services or services that were never provided. We will continue aggressively to pursue individuals who attempt to enrich themselves at the expense of the Medicare program.”

“The defendant charged in this indictment is accused of stealing precious Medicare resources by billing for services that were medically unnecessary or never provided,” said Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office. “Our health care fraud efforts have never been more collaborative and aggressive. We will continue to work with our law enforcement partners to protect patients and fight against health care fraud.”

According to the indictment, Khan, as the assistant administrator of a Houston hospital, allegedly operated a scheme to defraud Medicare beginning in 2008 and continuing until his arrest today. Khan allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through the hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.

The indictment alleges that Khan paid kickbacks to owners and operators of group care homes and assisted living facilities and to patient recruiters in exchange for delivering ineligible Medicare beneficiaries to the hospital’s PHPs. The indictment alleges that Khan also paid kickbacks to Medicare beneficiaries who attended the hospital’s PHPs. These kickbacks included cigarettes, food, and coupons redeemable for items available at the hospital’s “country stores.” Khan and his co-conspirators submitted or caused to be submitted approximately $116 million in claims to Medicare for PHP services purportedly provided by the hospital to the recruited beneficiaries, when in fact, the PHP services were medically unnecessary or never provided.

Today’s charges were announced by Assistant Attorney General Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent in Charge Morris of the FBI’s Houston Field Office; Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG); the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU); Special Agent in Charge Lucy R. Cruz of the Internal Revenue Service (IRS) Houston Field Office; Joseph J. Del Favero, Special Agent in Charge of the Chicago Field Office of the Railroad Retirement Board, Office of Inspector General (RRB-OIG); and Scott Rezendes, Special Agent in Charge of Field Operations of the Office of Personnel Management, Office of Inspector General (OPM-OIG).

The case is being prosecuted by Trial Attorney Laura M.K. Cordova, Attorney Allan Medina, Assistant Chief William Pericak and Deputy Chief Sam S. Sheldon of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG, MFCU, IRS, RRB-OIG and OPM-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.

Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,190 defendants who collectively have falsely billed the Medicare program for more than $3.2 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Assistant Administrator of Houston Hospital Indicted for Alleged Role in $116 Million Medicare Fraud Scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

MADISON, WI—John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Cheryl A. McNamee, 47, Sun Prairie, Wis., pled guilty today before U.S. District Judge Barbara B. Crabb to willfully filing a 2009 tax return in which she falsely omitted $94,867 of income.

During the plea hearing, McNamee admitted that she had written 56 unauthorized checks to herself—totaling $94,867—from her employer, Hexagon Title, Sun Prairie. McNamee also agreed that her total unreported income between 2002 and 2009 was $595,473.

In her plea agreement, McNamee agreed to pay restitution of $469,413 to the owners of Hexagon Title and an additional $126,060 to First American Title Company.

McNamee will be sentenced before Judge Crabb at 1:00 p.m. on April 18, 2012. She faces a maximum penalty of three years in federal prison.

The charges followed an investigation by the Internal Revenue Service-Criminal Investigation Division and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Timothy M. O’Shea.

Sun Prairie Woman Pleads Guilty to Filing False Tax Return | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

COEUR D’ALENE, ID—Jason Paul Patrick, 33, of Federal Way, Washington, was sentenced today to 140 months in prison followed by 10 years of supervised release for conspiracy to distribute methamphetamine in the District of Idaho, U.S. Attorney Wendy J. Olson announced. Patrick was sentenced at the federal courthouse in Coeur d’Alene by U.S. District Judge Howard D. McKibben from the District of Nevada. He pleaded guilty to the charge on October 19, 2011. According to the plea agreement, between August 2010 and June of 20 11, Patrick conspired with other individuals to provide methamphetamine to persons living in Idaho.

According to the plea agreement, Patrick’s customers, on average, traveled twice a week from Idaho to western Washington to pick up the methamphetamine, which was then transported back to Idaho. Patrick admitted that the amount of methamphetamine involved was between one-and-a-half and five kilograms.

“Methamphetamine trafficking is a threat to the health and safety of Idaho’s communities,” said Olson. “With our law enforcement partners, we are committed to addressing this threat through aggressive investigations, strong prosecutions, and stiff sentences. Mr. Patrick’s conduct was well deserving of his lengthy prison sentence.”

The case was investigated by the North Idaho Violent Crime Task Force (NIVCTF), whose members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff’s Office, Shoshone County Sheriff’s Office, Bonner County Sheriff’s Office, Coeur d’Alene Police Department, Post Falls Police Department, and the Coeur d’Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault, and drug trafficking.

Washington Man Sentenced for Trafficking Meth in Idaho | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

CHICAGO—A former software engineer for Motorola, Inc., now Motorola Solutions, Inc., a telecommunications company based in Schaumburg, was found guilty today of stealing Motorola trade secrets. The defendant, Hanjuan Jin, a naturalized U.S. citizen born in China, possessed more than 1,000 electronic and paper Motorola proprietary documents when she was stopped by U.S. customs officials as she attempted to travel on a one-way ticket to China in February 2007. The documents were later seized by U.S. customs officials at O’Hare International Airport.

Jin, 41, of Aurora and formerly of Schaumburg, was found guilty by U.S. District Judge Ruben Castillo following a five-day bench trial from Nov. 7 to 15, 2011. Jin “criminally betrayed Motorola by stealing its trade secrets,” Judge Castillo said in finding her guilty of three counts of theft of trade secrets. In a 77-page opinion, Judge Castillo found her not guilty of three counts of economic espionage for the benefit of the People’s Republic of China and its military. She faces a maximum penalty of 10 years in prison on each count of stealing trade secrets.

Jin was ordered to remain in home confinement with electronic monitoring pending sentencing, which was scheduled for April 18 in federal court. The government is seeking forfeiture of assorted computer hardware and equipment that Jin possessed in February 2007, which contained a variety of Motorola’s proprietary information.

“The verdict establishes that Jin stole valuable trade secrets from an American company, and we will do everything we can to guard our economic and national security from the theft of American trade secrets. This case is a successful example of how we can work with victim corporations to prosecute these cases while protecting the trade secrets involved,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, who announced the verdict with Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.

According to the evidence at trial, Jin began working for Motorola in 1998, and she took a medical leave of absence in February 2006. Between June and November 2006, while still on sick leave, Jin pursued employment in China with Sun Kaisens, a Chinese telecommunications company that developed products for the Chinese military. Between November 2006 and February 2007, Jin returned to China and did work for Sun Kaisens on projects for the Chinese military. During this same period of time, Jin was given classified Chinese military documents by a Sun Kaisens employee to review in order to better assist with the Chinese military projects. After receiving these documents, Jin agreed to review the documents and provide assistance.

On Feb. 15, 2007, Jin returned to the United States from China. On Feb. 22, 2007, Jin reserved a one-way ticket to China for a flight scheduled to depart on Feb. 28, 2007. The following day, on Feb. 23, 2007, Jin advised Motorola that she was ready to end her medical leave and return to work at Motorola, without advising that she planned to return to China to work for Sun Kaisens.

On Feb. 26, 2007, Jin returned to Motorola, purportedly to resume full-time work, and was given no assignments by her supervisor. Between 9 a.m. and 2 p.m., Jin accessed more than 200 technical documents belonging to Motorola on its secure internal computer network. At about 9 p.m. that night, Jin returned to Motorola and downloaded additional documents. At approximately 12:15 a.m. on Feb. 27, 2007, Jin was recorded twice leaving a Motorola building with hard copy documents and other materials.

During the day on Feb. 27, 2007, Jin sent an e-mail to her manager in which she appeared to volunteer for a layoff at Motorola. At about 10 p.m. that night, she returned to Motorola’s offices and downloaded numerous additional technical documents. Jin was later recorded leaving a Motorola building with what appeared to be a laptop computer bag.

As she attempted to depart on Feb. 28, 2007, from O’Hare bound for China, authorities seized numerous materials, some of which were marked confidential and proprietary belonging to Motorola. Some of the documents provided a detailed description of how Motorola provides a specific communication feature that Motorola incorporates into its telecommunications products sold throughout the world. At the same time, authorities recovered multiple classified Chinese military documents written in the Chinese language that described certain telecommunication projects for the Chinese military. Many of these documents were marked “secret” by the Chinese military. Authorities also recovered approximately $30,000 in U.S. currency that was in six different envelopes, each containing $5,000, all in hundred dollar bills.

The government is being represented by Assistant U.S. Attorneys Steven Dollear, Sharon Fairley, and Christopher Stetler.

Suburban Chicago Woman Convicted of Stealing Trade Secrets from Motorola Before Attempting to Travel to China | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

FBI announces the arrest last night of Rashad Emon Clark, aka Shagg Dogg, 33, of West Palm Beach, Florida, on federal charges.

The arrest was made at approximately 7:00 p.m. without incident in North Houston, Texas, by the FBI and members of the Human Trafficking Task Force.

There is no information as to status of his extradition to the Southern District of Florida available at this time.

The FBI was assisted in this investigation by the West Palm Beach Police Department (PD), Palm Beach County Sheriff’s Office and the Jupiter PD.

The FBI continues its investigation.

Florida Man Wanted on Federal Charges Arrested in Texas | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

U.S. and Chinese Defendants Charged with Economic Espionage and Theft of Trade Secrets in Connection with Conspiracy to Sell Trade Secrets to Chinese Companies | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

ST. LOUIS—The United States Attorney’s Office announced today that Brian David Monday was indicted for allegedly pointing a green laser beam into the cockpit of an airplane and a helicopter while they were in flight on November 4, 2011. The alleged incidents took place in St. Charles County.

Monday, 30, St. Charles, MO, was indicted by a federal grand jury on one felony count of interfering with an airplane and a helicopter.

If convicted, this charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

“It is important to understand that the laser is no longer a pinpoint but a bright spotlight by the time it hits an aircraft, said Thomas R. Metz, Acting Special Agent in Charge of the FBI St. Louis Division. “It interferes with the operation of an aircraft because pilots are temporarily blinded.”

This case was investigated by the Federal Bureau of Investigation.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

St. Charles Man Indicted on Federal Charges of Pointing a Laser at In-Flight Aircraft | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Earlier today, defendant Ramanan Mylvaganam pleaded guilty before United States District Judge Raymond J. Dearie to conspiring to provide material support to a foreign terrorist organization, the Liberation Tigers of Tamil Eelam (“LTTE”), in connection with his attempt to procure sophisticated technology, including submarine design software and night vision equipment, for the LTTE. Mylvaganam faces a maximum term of 15 years’ imprisonment. Five of Mylvaganam’s co-defendants previously pleaded guilty to terrorism-related offenses in connection with their support for the LTTE.

Mylvaganam’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; and Janice K. Fedarcyk, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.

As detailed in previously filed court documents and the defendant’s plea allocution, in March 2006, Mylvaganam conspired to purchase approximately $22,000 worth of submarine design software for the LTTE from a United Kingdom company. Mylvaganam also attempted to purchase night vision equipment for the LTTE from a company in British Columbia, Canada. To deceive this company, Mylvaganam falsely told its representative that the night vision equipment was for “a fourth year design project we are doing at our university.” Mylvaganam also assisted a co-conspirator in purchasing computer equipment, electronics components and communications equipment for the LTTE. Mylvaganam, a Canadian citizen who previously lived in the United States, was extradited from Canada in 2009, following his indictment in the Eastern District of New York.

The LTTE was founded in 1976 and uses illegal methods to raise money, acquire weapons and technology, and publicize its cause of establishing an independent Tamil state in northern Sri Lanka. The LTTE began its armed conflict against the Sri Lankan government in 1983, and utilizes a guerrilla strategy that often includes acts of terrorism. At its height, the LTTE controlled most of the northern and eastern coastal areas of Sri Lanka. Over the past 19 years, the LTTE has conducted approximately 200 suicide bombings, resulting in the deaths of hundreds of victims, and carried out numerous political assassinations, including the May 1991 assassination of former Indian Prime Minister Rajiv Gandhi, the 1993 assassination of the President of Sri Lanka, Ranasinghe Premadasa, the July 1999 assassination of Neelan Thiruchelvam, a member of the Sri Lankan parliament, the June 2000 assassination of C.V. Goonaratne, the Sri Lankan Industry Minister, the August 2006 assassination of the Sri Lankan government’s peace secretariat, Ketheshwaran Loganathan, the January 2008 assassination of Sri Lankan Minister for Nation Building, D.M. Dassanayake, and the April 2008 assassination of Sri Lankan Highways Minister, Jeyaraj Fernandopulle.

In 1997, the LTTE was designated by the U.S. State Department as a Foreign Terrorist Organization, and the LTTE therefore may not legally raise money or procure equipment or materials in the United States. In May 2009, the LTTE’s forces in Sri Lanka were defeated by the Sri Lankan government.

“The defendant conspired to provide sophisticated technological equipment to the LTTE, a foreign terrorist organization that has carried out brutal acts of violence against numerous civilians and elected officials,” stated United States Attorney Lynch. “We will use all resources at our disposal to bring terrorist organizations and their supporters to justice.”

“Material support here for foreign terrorist organizations can have lethal consequences. That is why the FBI takes seriously the responsibility to prevent it and do all we can to protect the safety of people around the globe,” stated FBI Assistant Director in Charge Fedarcyk.

The government’s case is being prosecuted by Assistant U.S. Attorney Ali Kazemi. The United States Attorney’s Office for the Western District of Washington also provided assistance in this case.

The Defendant:

RAMANAN MYLVAGANAM Age: 35

Canadian Man Pleads Guilty to Conspiring to Provide Material Support to the Liberation Tigers of Tamil Eelam | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

John “Steven” Stark was arrested this morning by agents of the FBI, as well as task force officers with the Beaumont Police Department, Jefferson County Sheriff’s Office, Port Arthur Police, and the Texas Department of Public Safety. At approximately 11:15 a.m., he was arrested as he attempted to get into a taxi outside the Parkdale Mall in Beaumont, Texas.

A law enforcement hunt for Stark was initiated after a bank robbery was reported earlier at the Prosperity Bank, located at 6150 Eastex Freeway in Beaumont Texas. The bank robber fit Stark’s description and the getaway car matched the description of the vehicle Stark was believed to have been driving.

Tips from the public have helped investigators identify and charge the so-called “Tall, Dark, and Handsome Bandit” earlier this week. He was given the moniker after some witnesses described him as tall and handsome.

Stark is charged federally with bank robbery in the United States District Court, Eastern District of Texas. He’s charged with robbing the Bank of America, located at 2625 Calder in Beaumont, Texas, on January 30, 2012. He was also wanted for questioning in the robbery of the Comerica Bank, address 3135 Southwest Freeway in Houston, Texas, on Thursday, February 2, 2012.

During the Beaumont bank robbery, Stark is alleged to have passed a threatening note to tellers, and never spoke. In the more recent Houston robbery, the bank robber also handed a teller a threatening note which demanded money. No one was physically hurt during either robbery.

Stark was featured as a wanted fugitive on Clear Channel Outdoor digital billboards in the Houston area. Clear Channel Outdoor donated the space as a public service to the community.

“Tall, Dark, and Now Handcuffed” | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

NEWARK, NJ—A former bank employee was arrested this morning and charged with stealing $1.8 million from her employer and concealing the thefts while acting as the victim’s executive assistant, U.S. Attorney Paul J. Fishman announced.

Karen R. Febles, 47, of Palisades Park, N.J., was arrested at her home by agents of the IRS and FBI and charged by complaint with one count each of bank fraud and money laundering. She was scheduled to make her initial appearance later in the day before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.

According to the criminal complaint:

From at least 2000 through September 2011, Febles worked as an executive assistant for a bank in New York City. Her duties included assisting the victim, a retired employee of the bank, with his personal and professional finances. As part of her employment, Febles routinely prepared and negotiated checks on behalf of the victim. Febles was terminated by the bank in September 2011.

A review of the victim’s bank records show that between 2007 and September 2011 at least $1.8 million of the victim’s funds was debited from his bank accounts without the victim’s authorization. A review of checks written by Febles revealed the checks had been altered—after they had been signed by the victim—to add additional sums of money. Once issued, Febles negotiated many of the checks, in cash, for the altered amount. During that time, Febles had more than $1 million in unexplained deposits and expenditures in bank accounts she controlled. More than $400,000 in cash was deposited into bank accounts held by Febles during this time. Checks drawn directly off of the victim’s accounts, totaling at least $470,000, were deposited directly into bank accounts held by Febles during this time.

Febles also purchased a Range Rover with $52,720 in cash, a Mercedes-Benz with $34,650 in cash (both of which were seized at the time of her arrest), and spent approximately $45,000 on vacation cruises, more than $100,000 on real estate-related expenses, more than $20,000 on other automobile payments and more than $20,000 on personal expenses, including entertainment, meals, travel, and clothing. During this time, Febles never made more than $93,000 in legitimate income.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn Zuniga in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorneys Aaron Mendelson of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.

The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.

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

Anyone who has information which may be relevant to this case is encouraged to contact the Newark Division of the FBI at 973-792-3000.

Defense counsel:
Chester Keller Esq., First Assistant Federal Public Defender, Newark

Former Bank Worker Charged with Stealing and Concealing More Than $1.8 Million from Employer | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Release Date: February 8, 2012

For immediate release

The Federal Reserve Board on Wednesday announced its approval of the notice by Hana Financial Group Inc., Seoul, Korea, to acquire indirect controlling interests in KEB NY Financial Corp., New York, New York, and KEB LA Financial Corp., Los Angeles, California.

Attached is the Board’s Order relating to this action.

For media inquiries, call 202-452-2955.

Attachment (110 KB PDF)

Federal Reserve Board announces approval of notice by Hana Financial Group Inc. | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

PITTSBURGH, PA—A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.

The one-count indictment named Arthur Henderson, 38, as the sole defendant.

According to the indictment, on or about Jan. 11, 2012, Henderson, after having been convicted of a crime of violence, illegally possessed body armor.

The law provides for a maximum total sentence of three years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Almon S. Burke, Jr. is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Ross Township Police Department conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Allegheny County Man Charged with Illegally Possessing Body Armor | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

LOS ANGELES—Commerce City Councilman Robert Fierro has pleaded guilty to a federal conspiracy charge, admitting that he and others agreed to corruptly influence witnesses to make false declarations before a federal grand jury investigating Fierro’s role in an illegal campaign finance scheme.

Fierro, 40, a resident of Commerce, pleaded guilty to the felony charge yesterday before United States District Judge Philip S. Gutierrez.

Last Tuesday, Fierro’s sister-in-law and campaign treasurer, Ana Perez, 46, of Commerce, pleaded guilty to a conspiracy charge related to her conduct in the scheme.

Fierro and Perez are scheduled to be sentenced by Judge Gutierrez on April 23. At sentencing, each defendant faces a statutory maximum sentence of five years in federal prison.

“Fierro and his co-conspirators’ attempts to obstruct a federal investigation and the federal grand jury process amount to direct assaults on the integrity of the American judicial system,” said United States Attorney André Birotte Jr. “We will be always be vigilant in holding those accountable for compromising the integrity of the judicial system.”

According to documents filed by prosecutors in federal court, during the 2004-2005 City of Commerce election campaign, Fierro recruited family and friends to make contributions to his campaign, with Fierro secretly reimbursing the value of the contributions in cash. Fierro never disclosed the contributions or reimbursements to the State of California or on his campaign’s finance records.

According to Perez’s plea agreement, Robert Fierro collected and reimbursed illegal contributions on behalf of his campaign. In one instance, Perez wrote a $500 check to Fierro’s campaign, and another $500 check to the campaign of his running mate. Fierro reimbursed Perez with a $1,000 cash payment the following day, Perez admitted in court.

In the spring of 2006, Fierro, his wife, and Perez learned that the FBI was conducting an investigation into the illegal reimbursement scheme. During an interview with the FBI, Perez falsely denied she received a reimbursement for her $1,000 contribution, according to her plea agreement. Soon thereafter, Perez and others received subpoenas to testify before a grand jury looking into the scheme. In June 2006, Fierro, his wife, and Perez scheduled a meeting with contributors who had received subpoenas and attempted to convince them to falsely testify that they were not reimbursed for their contributions, according to Perez’s plea agreement.

In July 2006, Perez appeared before a federal grand jury and falsely testified that she was not reimbursed for her contributions in 2005 and that she did not participate in the June 2006 meeting, Perez admitted in her plea agreement.

Robert Fierro’s wife—Linda Fierro, who was named in an indictment along with her husband and Perez—is currently scheduled to go on trial on March 20.

This case was investigated by the Federal Bureau of Investigation.

Member of Commerce City Council Pleads Guilty to Conspiracy to Obstruct Investigation into Campaign Reimbursement Scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph Bartorillo, age 60, of Larksville, Pennsylvania, was sentenced to 24 months of imprisonment by Senior United States District Court Judge Richard P. Conaboy. Judge Conaboy further ordered that Bartorillo serve a two-year term of supervised release and pay a $1,000 fine and $3,647 in restitution to the Pennsylvania State Police crime lab.

The individual victims who purchased the contaminated yogurt will be eligible for restitution as part of the state court case against the defendant.

According to United States Attorney Peter J. Smith, Bartorillo was charged in a Felony Information in October 2011 with tampering with a consumer product that affected interstate commerce. Between July 1, 2010, and May 31, 2011, Bartorillo intentionally tainted food containers by injecting the containers on multiple occasions with his own semen.

At the time the charges were announced, U.S. Attorney Smith stated that all of the tainted containers were recovered, as they had all been in the possession of a limited and known number of people. The tainted containers present no danger to the public.

Bartorillo pleaded guilty in November 2011.

The investigation was conducted by agents of the Federal Bureau of Investigation with the assistance of the Wyoming County District Attorney’s Office-Detective Unit. Prosecution was handled by Assistant United States Attorney Michelle Olshefski.

Luzerne County Man Sentenced After Tampering with Consumer Products | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

WASHINGTON—The Department of Justice announced today that three men were sentenced for a federal hate crime stemming from an incident that took place at Beekman Junior High School in Beekman, Morehouse Parish, Louisiana. U.S. Magistrate Judge Karen Hayes sentenced James Lee Wallis Jr. to eight months in prison, Tony L. Johnson to six months in prison, and Brian Wallis to five months in prison. All three defendants will also receive one year of supervised release and must attend a cultural diversity and sensitivity program.

On Aug. 12, 2011, defendant Johnson pleaded guilty to intentionally attempting to intimidate and interfere with African-American students who were attending Beekman Junior High School. Brothers Brian Wallis, 21, and James Lee Wallis Jr., 25, pleaded guilty to the same offense on Sept. 2, 2011. During their respective plea hearings, all three defendants admitted that they hung a dead raccoon in a noose from a flagpole located in front of Beekman Junior High School. They each further admitted that they were angered by the school’s new busing policy, which had increased the number of African-American children attending the school, and that they wanted to scare the African-American children into leaving the school.

“Every child, regardless of race, is entitled to an education free from intimidation or discrimination,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Unfortunately, acts of hate such as this one are all too common in this country in 2012. The Justice Department will continue to enforce our nation’s civil rights laws in order to protect the most vulnerable in our society.”

“There is no place in our schools for this kind of intimidation,” said Stephanie A. Finley, U.S. Attorney for the Western District of Louisiana. “Every child has the right to an education and to feel safe in school. I hope this case sends a message that this type of activity will not be taken lightly.”

This case was investigated by the FBI and prosecuted by Senior Litigation Counsel Mark Blumberg and Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Mary J. Mudrick for the Western District of Louisiana.

Three Men Sentenced for Attempting to Intimidate African-American Students at a Louisiana Middle School | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that NATHAN ROTHSCHILD, a former commissioner of the Monsey Fire District in Rockland County (the “Fire District”), was sentenced today in White Plains federal court by United States District Judge Kenneth M. Karas to 12 months and a day in prison for engaging in a mail fraud scheme that caused the Fire District to enter into a real estate transaction for the purpose of paying off his personal debt to his creditor. ROTHSCHILD pled guilty to one count of mail fraud before Judge Karas on June 30, 2011.

During his plea allocution, ROTHSCHILD admitted to participating in a scheme in which he proposed that the Fire District purchase a parcel of real estate from a creditor of his without disclosing ROTHSCHILD’s interest in the transaction. As part of the scheme, ROTHSCHILD expected that the Fire District would purchase the real estate at a higher price than the creditor had paid. ROTHSCHILD intended the creditor’s profit, which he expected to be approximately $125,000, to serve as partial payment of his debt.

Mr. Bharara praised the outstanding investigative work of the FBI.

This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Douglas B. Bloom and Margery B. Feinzig are in charge of the prosecution.

Rockland County Fire Commissioner Sentenced to 12 Months and a Day in Prison for Engaging in Scheme to Defraud the Public | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

ALBUQUERQUE—This morning in federal court in Albuquerque, Norma Mermejo, 53, a member and resident of Picuris Pueblo, was arraigned on an indictment charging her with embezzlement and theft from an Indian tribal organization. If convicted of this offense, Mermejo faces a maximum penalty of five years’ imprisonment and a $250,000 fine.

Mermejo entered a not guilty plea to the indictment during this morning’s proceeding. She was released on her own recognizance and conditions of release pending trial.

U.S. Kenneth J. Gonzales said that Mermejo is charged with embezzling approximately $132,000 belonging to Picuris Pueblo between February 2008 and April 2010. According to the indictment, Mermejo was employed as a file clerk in the accounting office of the Picuris Pueblo when she committed the offense.

The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Office of Justice Services, Northern Pueblos Agency, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.

Charges in criminal complaints, indictments and informations are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.

Picuris Pueblo Woman Charged with Embezzling $132,000 from Pueblo | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

CHARLOTTE, NC—A Charlotte woman was sentenced yesterday in U.S. District Court to serve 34 months in prison to be followed by three years of supervised release for committing health care fraud, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney also ordered Darlene Hughes, 53, of Charlotte, to pay total restitution in the amount of $194,436.61.

U.S. Attorney Tompkins is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region, and Chris Briese, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.

In August 2010, Hughes entered a plea of guilty to one count of health care fraud. According to a federal criminal bill of information and plea documents, Hughes stole the name and license of a speech therapist and falsely and fraudulently held herself out to be a licensed speech therapist. Hughes then obtained employment as a speech therapist at two local nursing homes and assisted living facilities who relied upon her misrepresentations. According to filed court documents and statements made in court, Hughes’ fraud caused those facilities to submit hundreds of claims to Medicare for services which Hughes was not qualified to provide, defrauding the facilities and Medicare of more than $142,000.

In issuing the sentence in this case, Judge Whitney noted that the scheme to defraud involved a “level of sophistication and skill of deceit that is pretty overwhelming.”

Hughes has been on release since entering her guilty plea in August 2010 and was permitted to self-report to the Federal Bureau of Prisons upon designation of a facility. Federal sentences are served without the possibility of parole.

The investigation was led by HHS-OIG with the assistance of the FBI. The prosecution for the government was handled by Assistant U.S. Attorneys Melissa Rikard and Kelli Ferry of the U.S. Attorney’s Office in Charlotte.

If you suspect Medicare or Medicaid fraud, please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or e-mail at HHSTips@oig.hhs.gov.

Charlotte Woman Sentenced to 34 Months in Prison for Health Care Fraud | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

ATLANTA—CHARLES MICHAEL VAUGHN, 43, of Atlanta, Georgia, was sentenced to federal prison today by United States District Judge Richard W. Story on wire fraud charges in connection with a $10 million Ponzi scheme.

United States Attorney Sally Quillian Yates said, “Despite the fact that Ponzi schemes are one of the oldest types of fraud schemes, they continue to be quite successful because of the creativity of the con artist, the slick presentations, and the promises of lucrative investment returns. Fraudsters with a computer and printer can come up with phony spreadsheets and paperwork that make their investments look golden when really the returns are an illusion. Potential investors should carefully scrutinize every aspect of a salesperson’s pitch before parting with their hard-earned money.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, said, “While Mr. Vaughn will now be held accountable for his elaborate fraud scheme, the many victims harmed in this matter are forced to rebuild their lives as best they can. Because of the victim impact often seen in such cases, the FBI will continue to aggressively pursue those individuals who engage in this type of high dollar investment fraud activity.”

United States Postal Inspector in Charge Keith Morris said, “Our Postal Inspectors are trained to follow the money, even if the paper trail is difficult to find. Innocent victims hand over their hard-earned savings, and criminals often only invest it in themselves. No matter how complex the case, our Inspectors will make every effort to help those victims, by bringing the fraudsters to justice.”

VAUGHN was sentenced to eight years and four months in prison to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $8,833,686. VAUGHN pleaded guilty to the charges on October 24, 2011.

According to United States Attorney Yates, the charges, and the evidence presented in court: VAUGHN founded and operated “CM Vaughn, LLC,” a tax and financial consulting firm based in Atlanta, Georgia. From July 2004 through March 2008, VAUGHN sold investments in a pooled investment fund or “hedge fund” called “CM Vaughn Emerging Ventures Fund.” Over 50 individuals sent money to VAUGHN for purposes of investing in the fund.

VAUGHN falsely represented to investors that his fund earned from 15 percent to as much as 50 percent per year, and stated that their investments would be “insured” and could not decrease below a certain amount. He also prepared client statements that falsely indicated the current value of each investor’s accounts. While the statements generally showed substantial investment gains, the numbers included in the statements were false, as none of the investors’ monies had actually been invested in any fund. Instead, VAUGHN had used the investments to finance a lavish lifestyle and to make payments to earlier investors. VAUGHN obtained over $10 million from his victims.

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

This case was investigated by special agents of the Federal Bureau of Investigation and inspectors of the United States Postal Inspection Service.

Assistant United States Attorney Shanya J. Dingle prosecuted the case.

For further information, please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney’s Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

Atlanta Man Sentenced for Operating Ponzi Scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.