Former Marine Admits Running Elaborate Fraud Scheme to Get Financial Help to Play on PGA Tour

DALLAS—Michael Duye Campbell, 30, of Houston, appeared in federal court in Dallas today and pleaded guilty before U.S. District Judge Jorge A. Solis to an information charging one count of mail fraud, stemming from a scheme he ran from 2010 to 2012 to obtain financial assistance so that he could play professional golf. Campbell, a Houston resident, faces a statutory maximum penalty of 20 years in federal prison, a $250,000 fine, and restitution. He will remain on bond, pending sentencing, which has been set for June 19, 2013, before Judge Solis. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Campbell served in the U.S. Marine Corps from 2000 to 2004; he never deployed overseas and was never injured, severely or otherwise, in combat. Nonetheless, he began representing himself as a U.S. Marine combat veteran who had suffered a traumatic brain injury (TBI) while deployed to Iraq in support of Operation Iraqi Freedom.
As part of his elaborate scheme, Campbell falsely told others that while on patrol in Fallujah, Iraq, his unit was attacked when an improvised explosive device (IED), or bomb, detonated. He told others that members of his unit died in the explosion and that he awoke from his serious injuries months later at Walter Reed Army Hospital. He claimed that he could not speak and that when he did regain his speech, he stuttered. He also claimed that he suffered short-term memory loss from his TBI.
Campbell told numerous individuals that his doctor suggested that he take up golf to help with his rehabilitation for his combat injuries. Campbell also created a website and obtained a promotional video recording to further his scheme—all to obtain financial help to play in the PGA.
Campbell was convincing in his story. He met famous people who supported charity golf tournaments for wounded warriors and convinced them to write stories on his behalf and provide him access to expensive golf schools and golf courses. All of this provided Campbell with opportunities to continue his scheme, defraud others, and afford him opportunities to search out endorsement contracts for golf apparel and equipment.
In fact, it was during this process that Campbell learned of the Troops First Foundation and Operation Proper Exit. These charities provide opportunities for severely injured service members to return to the locations where they sustained their injuries and, instead of being medically evacuated, provide them the opportunity to walk to the aircraft and climb the ramp. Campbell participated in Operation Proper Exit VIII, co-sponsored by the USO, in December 2010. He was flown from DFW to Dubai and then provided military transportation for the remainder of the trip. Even though Campbell was neither a combat veteran nor a wounded warrior, he made the trip, which cost thousands of dollars.
Campbell deceived other charities, including Operation Homefront and Counter Valor, by making continued material false statements in furtherance of his scheme to defraud. He obtained many things of value from them including automobile payments, automobile insurance payments, utilities, room and board, transportation, living expenses, and golf tournament entry fees. Likewise, Campbell deceived Vola LLC (an athletic apparel and footwear company located in Richardson, Texas) and Golf Technology Xtreme Inc. (GTX) (a manufacturer of golf clubs), by obtaining and attempting to obtain golf clothing, equipment, money, and other things of value from them.
Campbell admits that the victims of his fraud suffered at least $40,000 in actual losses.
The case is being investigated by the FBI and prosecuted by Criminal Chief Assistant U.S. Attorney Chad Meacham.

Judge Sentences Career Offender to 50 Years in Prison

PITTSBURGH—A resident of Homestead, Pennsylvania has been sentenced in federal court to 50 years in prison on his conviction of violating various federal laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Gary L. Lancaster imposed the sentence on Jay Mathis, 46, formerly of 1938 Remington Drive, Pittsburgh, Pennsylvania.
According to information presented to the court, Mathis was convicted at two separate trials on one count of attempted bank robbery; one count of attempted armed bank robbery; two counts of possession of a firearm and ammunition by a convicted felon; two counts of using, carrying, and discharging a firearm in relation to a crime of violence; and one count of Hobbs Act Robbery.
Mathis was suspected of carrying out a six-month crime spree that began with the robbery on January 8, 2009, of the National City Bank on Walnut Street in the Shadyside area of Pittsburgh and ended with the robbery of the Courtyard Marriot at the Waterfront in Homestead, which occurred on June 19, 2009.
During the robbery of the National City Bank, Mathis walked towards an off-duty police officer working as a security guard within the bank and pulled out a black and silver gun. As the officer drew his weapon, Mathis retreated out of the bank and headed towards Myrtle Way. The officer chased Mathis, telling him to stop. Mathis fired three shots in the officer’s direction, and the officer returned fire twice. The officer then attempted to take cover as Mathis, still running, fired several more rounds. Mathis got into a small silver vehicle and drove off.
During the robbery of the Courtyard Marriot, Mathis pointed a small black revolver at the desk clerk and demanded money. The clerk placed the cash drawer on the counter, and Mathis took approximately $221. After leaving the hotel, Mathis led police officers on a high-speed chase and fired two rounds of ammunition at the police vehicle behind him, the first one hitting the police car’s windshield and causing the officer to duck down and swerve off the road onto an embankment.
Throughout the duration of the six-month crime spree, Mathis was suspected of committing seven other robberies at various banks, a Subway restaurant, and a McDonald’s restaurant.
Additionally, during the six-month time frame and while committing these additional crimes, Mathis was on federal supervised release, following a 10-year prison sentence from a previous conviction for bank robbery.
Due to Mathis’ extensive criminal history, which began as a juvenile, he is considered a career offender and an armed career criminal.
Assistant United States Attorney Barbara K. Swartz prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the city of Pittsburgh Police, and the Allegheny County Police for the investigation leading to the successful prosecution of Mathis.

Anchorage Residents Charged with Wire Fraud, Theft of Honest Services, Money Laundering, and False Tax Returns

ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Kenneth Browning, 60, was charged with wire fraud, theft of honest services, money laundering, and false tax returns. The same indictment also charges Anchorage resident Jerald Briske, 74, with 22 counts of wire fraud. The offenses charged occurred from May 2008 through April 2010.
According to the indictment, Browning was employed as a Federal Property Allocation Officer with the state of Alaska, Department of Administration, Division of General Services, Property Management Office. In this position, Browning was responsible for allocating surplus federal property to qualified state recipients. Briske was a corporate officer for Coast Line Enterprises Inc., a used equipment selling, salvage, and mining business run by Briske and located in Anchorage, Alaska.
The indictment alleges a scheme between Browning and Briske whereby Browning would illegally divert surplus federal property intended for qualified state agencies or non-profits to Briske, knowing that Briske was not qualified to receive the property. Briske, in coordination with Browning, would then sell the fraudulently obtained surplus federal property to other businesspeople in Alaska and elsewhere, and both Briske and Browning would share the illegally obtained proceeds derived from this scheme.
The indictment alleges that Browning and Briske conducted 22 separate transactions as part of the scheme to defraud. As a result of the scheme, Browning received approximately $140,150 in illegally obtained payments from Briske. It is alleged that Briske obtained approximately $220,870 worth of property to which neither he nor Coast Line Enterprises Inc. were entitled.
Browning is also charged with 22 counts of theft of honest services fraud for defrauding the state of Alaska. He is also charged with one count of money laundering by using proceeds of the scheme to purchase a 2004 Ford Mustang convertible. Browning is also charged with four counts of filing false tax returns for failing to report income from the scheme on his tax returns.
The maximum penalty for both wire fraud and theft of honest services is 30 years’ imprisonment with a $250,000 fine. The maximum penalty for money laundering is 10 years’ imprisonment with a $250,000 fine. Filing false tax returns carries a three-year term of imprisonment and a fine of $100,000. An arraignment date has been set for March 27, 2013.
Ms. Loeffler commends the Internal Revenue Service and the Federal Bureau of Investigation for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

Three Philippine Nationals Convicted in Los Angeles of Importing Military-Grade Weapons

WASHINGTON—Three Philippine nationals were convicted today in Los Angeles of illegally importing military grade weapons into the United States after being caught in a sting operation that was conducted in the Philippines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Bill Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Sergio Syjuco, 26; Cesar Ubaldo, 27; and Arjyl Revereza, 26, each of the Philippines, were convicted after a four-week trial by a federal jury in U.S. District Court in the Central District of California of conspiring to illegally import the weapons into the United States and aiding and abetting the importation of those weapons. The defendants were charged in an indictment filed on January 12, 2012.
According to the evidence presented at trial, the defendants conspired to sell high-powered military and assault weapons to a buyer interested in bringing weapons into the United States to arm drug dealers in Mexican drug cartels and Mexican Mafia gang members. In November 2010, Ubaldo met with a prospective weapons buyer, who was actually an undercover FBI agent, and offered to introduce the agent to suppliers of high-powered firearms. Ubaldo subsequently introduced the undercover agent to Syjuco, who supplied the weapons, and Revereza, who was a police officer in the Philippines Bureau of Customs who facilitated the movement of the illegal weapons through Philippines customs and eventually into the United States. The weapons supplied included a rocket propelled grenade launcher, a mortar launcher, an M203 single-shot grenade launcher, and 12 Bushmaster machine guns, as well as explosives including mortars and grenades. The trial evidence demonstrated that the defendants also illegally imported into the United States the highest level military body armor.
The weapons, which were tracked and safeguarded by the FBI during their shipment, landed in Long Beach, California, on June 7, 2011, where they were seized by the FBI.
At sentencing, which is scheduled for June 10, 2013, each defendant faces a maximum potential penalty of five years in prison and a $250,000 fine for conspiracy to import weapons into the United States, as well as 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons, excluding the 12 fully automatic Bushmaster firearms. In addition, defendants Syjuco and Revereza face a maximum potential penalty of 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons in this case, and five years in prison and a $250,000 fine for causing the importation of the 12 fully automatic Bushmaster firearms in this case.
The investigation was conducted by agents and investigators of the FBI, the U.S. Secret Service, and the Philippine National Bureau of Investigation. Deputy Chief Kim Dammers and Trial Attorney Margaret Vierbuchen of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.

Investment Manager Sentenced to Federal Prison for Fraudulent Trade Correction Orders That Cost Customers More Than $900,000

LOS ANGELES—A San Fernando Valley-based investment advisor was sentenced this afternoon to two years in federal prison for his role in an investment scheme in which he stole profits from trades executed on his clients’ behalf, depriving them of more than $900,000.
Philip D. Horn, 51, of Tarzana, was sentenced today by United States District Judge Gary A. Feess. During today’s hearing, Judge Feess noted that Horn had already paid more than $1 million in restitution.
Horn, a former managing director at the Westwood Village branch office of Wells Fargo Advisors and formerly a licensed securities broker, pleaded guilty in September 2012 to two counts of wire fraud. Horn specifically admitted that he engaged in a scheme in which he obtained more than $730,000 through a series of trades that were initially executed in the accounts of clients that he managed and, if the trades proved to be profitable, were fraudulently “corrected” to remove the trades from the clients’ accounts and “re-billed” to Horn’s own accounts. Further review of Horn’s activities by forensic accountants retained by Wells Fargo Advisors to investigate the full extent of Horn’s activities showed other types of fraudulent “correction” orders, including transferring unprofitable trades in his own account to the accounts of WFA customers. Horn executed the fraudulent orders between April 2009 and October 2011, when he was terminated by Wells Fargo Advisors.
Wells Fargo Advisors undertook a forensic analysis of all accounts impacted by Horn’s scheme and, according to court filings, has repaid money improperly taken from customer accounts.
Horn was ordered to begin serving his prison sentence on April 12.
The case was investigated by the Federal Bureau of Investigation.

Tucson Businessman Sentenced to 151 Months for Unlawful Possession and Use of a Chemical Weapon

TUCSON—On March 1, 2013, Todd Russell Fries, aka Todd Burns, age 49, of Tucson, Arizona, was sentenced by U.S. District Judge Cindy K. Jorgenson to 151 months in the Bureau of Prisons. Fries was found guilty by a federal jury on October 5, 2012, of unlawful possession and use of a chemical weapon and providing false information to the FBI.
Evidence presented at trial showed that the victims hired Fries, the owner of Burns Power Washing, to perform work on the driveway of their northwest Tucson home. Although Fries’ employees performed the work, the victims were not happy with its quality. The victims ultimately stopped payment on the final installment, which was a check in the amount of $200 made payable to Fries.
Following cancellation of the check, the victims were the subject of what was originally thought to be a hate crime. On the morning of November 1, 2008, the victims woke up to find that motor oil, paint, grease, feces, dead animals, and foam packing peanuts had been strewn on the driveway leading up to the front door of their home. The home and driveway had been painted with graffiti, which included swastikas and slurs. The garage door was sealed shut with an adhesive.
As a result of the first attack, the victims moved to a gated community near the Omni National Golf Course. On the morning of August 2, 2009, the Pima County Sheriff’s Department received several emergency calls that reported a strong chemical smell near the Omni National Golf Course. The Sheriff’s Department and the Northwest Fire Department responded to the victims’ home and observed a strong chlorine smell, as well as a huge white cloud containing chlorine that enveloped the neighborhood. After evacuating the neighborhood, deputies found buckets of burning, gas-emitting, debris in front of the home, as well as on the back patio of the home. Deputies also found a thick, viscous, slimy material, which appeared to be a combination of paint, motor oil, and foam peanuts, spread on the front driveway, the sidewalk, and the walkway leading to the front door of the home. In addition, deputies found dead animal and woodpecker carcasses strewn in the front of the home. Gang graffiti was spray painted on the front of the home. The front door, windows, and garage door were all sealed shut with a foam expanding seal.
The FBI investigation was able to link the items found at the scenes of both attacks to Fries.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Pima County Sheriff’s Department, the Marana Police Department, the Tucson Police Department, and the Northwest Fire Department. The prosecution is being handled by Beverly K. Anderson and David A. Pimsner, Assistant U.S. Attorneys, District of Arizona, Tucson and Phoenix.

Three Individuals on Trial Plead Guilty, Admit Roles in Investment Fraud Schemes

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that three individuals who had been on trial in Hartford federal court have pleaded guilty to various offenses stemming from two separate investment schemes.
On February 25, Robert Rivernider, 47, of Wellington, Florida, pleaded guilty to two counts of conspiracy and 16 counts of wire fraud; and his sister, Loretta Seneca, 50, of Boynton Beach, Florida, pleaded guilty to one count of conspiracy and one count of wire fraud. On March 1, Robert Ponte, 59, of Stonington, Connecticut, pleaded guilty to two counts of conspiracy, 14 counts of wire fraud, and two counts of tax evasion. The trial before United States District Judge Robert N. Chatigny began on February 7.
“As the overwhelming evidence in this trial revealed, Rivernider and Ponte recruited individuals to invest their money by making false promises of guaranteed, high returns,” stated U.S. Attorney Fein. “Their investment program was nothing more than a Ponzi scheme, which left several investors in financial ruin. With the assistance of Ms. Seneca, these defendants also engaged in a real estate investment scheme that defrauded more individuals, as well as lending institutions. The U.S. Attorney’s Office is committed to working with the FBI, IRS-CI, and our other law enforcement partners to root out financial schemes to protect the investing public.”
“The FBI conducted an extensive investigation into the various conspiracies orchestrated by the three defendants, conspiracies designed with no goal other than to enrich themselves at the expense of other individuals and banks alike,” stated FBI Special Agent in Charge Mertz. “Cases like this are only successful with the teamwork of our federal partners. The IRS was instrumental to this investigation, as was the United States Attorney’s Office, which was exceptional in presenting a case at trial that resulted in three guilty pleas before even concluding its case.”
According to court documents and the evidence disclosed during the trial, between approximately June 2005 and April 2008, Rivernider and Ponte conspired to defraud several victim investors by misrepresenting that the investors’ money would be invested in legitimate, high-return investments. As part of the conspiracy, Rivernider and Ponte used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that Ponte established. With the “No More Bills” program, Rivernider and Ponte sought victim investors to invest money with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.
Rivernider and Ponte materially misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested money of approximately seven to 10 percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ money were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures. Instead of investing the funds as promised, Rivernider and Ponte used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.
Through this first scheme, investors lost at least $3 million.
In a second scheme, between approximately November 2006 and December 2007, Rivernider, Ponte, and Seneca engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. As part of the scheme, Rivernider, Ponte, and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. Rivernider and Ponte typically represented to borrowers that these properties would be passive investments and that Ponte and Rivernider would be responsible for the details of the purchase, rental, maintenance, and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that Rivernider and Ponte would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, Rivernider and Ponte frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. Rivernider, Ponte and others also falsely represented that the investment properties would return to the victim borrowers sufficient money to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
Rivernider, Ponte, Seneca and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. Seneca, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by Rivernider to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions have suffered nearly $20 million in losses.
When they are sentenced, Rivernider and Ponte face a maximum term of imprisonment of 20 years for conspiring on the first investment fraud scheme; and Rivernider, Ponte, and Seneca face a maximum term of imprisonment of 30 years for conspiring on the real estate investment scheme. The wire fraud charges also carry maximum terms of imprisonment of 20 or 30 years. In addition, the tax evasion counts against Ponte carry a maximum term of imprisonment of five years on each count.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys John H. Durham and Christopher W. Schmeisser.
The Connecticut Securities, Commodities, and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The task force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department; and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll-free, 855-236-9740, or by sending an e-mail to ctsecuritiesfraud@ic.fbi.gov.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory,and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

Iranian Citizen and U.S. Citizen Residing in Louisville Sentenced in Plot to Export Aircraft and Aircraft Parts to Iran

LOUISVILLE, KY—David J. Hale, U.S. Attorney for the Western District of Kentucky; Lisa Monaco, Assistant Attorney General for National Security; and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, announced the sentencings today of two men to charges related to unlawful export of aircraft and aircraft parts from the United States to Iran. One of the defendants, Hamid Asefi, age 67, is a citizen and resident of the Republic of Iran. The other, Behzad Karimian, also known as “Tony” Karimian, age 52, is a United States citizen living in Louisville, Kentucky, who holds a valid Iranian passport and is employed as a Mesaba Airlines Pilot. Asefi was sentenced to 23 months in prison, and Karimian was sentenced to 46 months in prison by Chief Judge Joseph H. McKinley, Jr. in United States District Court. The defendants pleaded guilty in Louisville before Magistrate Judge James D. Moyer on December 3, 2012. The two-count indictment was returned by a federal grand jury meeting in Louisville on August 2, 2012, and unsealed prior to their change of pleas hearings.
Hamid Asefi and Behzad Karimian were both charged with conspiracy to violate and violation of the International Emergency Economic Powers Act for exporting, selling, or causing the export or sale of aircraft and aircraft parts without first having obtained the required license from the U.S. Department of Treasury. Asefi made his initial appearance in U.S. District Court in Louisville, Kentucky, on June 1, 2012. Karimian was arrested and made his initial appearance in U.S. District Court in Louisville, Kentucky, on June 6, 2012.
Asefi is the principal officer of Aster Corp Ltd., an Iranian company with offices in both Iran and the United Kingdom. The indictment charges that, beginning as early as August 2007 and continuing through April 2011, Asefi used the United Kingdom office of Aster to serve as a transshipment point to facilitate shipment of goods from the United States to Iran; Asefi used Aster to facilitate the shipment of goods from the United States to Iran through third party countries; Asefi sent requests on behalf of Iranian entities to Karimian for purchases of aircraft and aircraft parts located in the United States or owned by United States persons; and Karimian knowingly and willfully made inquiries, placed orders, and attempted to facilitate the purchase of aircraft and aircraft parts located in the United States and owned by United States persons on behalf of defendant Asefi and persons in Iran.
Asefi and Karimian pleaded guilty to count one of the indictment and admitted in court that they acted with knowledge and intent to violate the Iran embargo when on September 27, 2007, Asefi and Karimian sent e-mails to establish a “profitable business collaboration” for the purpose of procuring aircraft and aircraft components for end-users in Iran. They further admitted that on or about October 1, 2009, Asefi sent an e-mail to Karimian which outlined the terms of delivery and payment on future transactions with Iran Air and stated “...remember that, only U.S. Embargo has brought this chance and benefit to us, to get involved in these deals....”
Further, defendants Asefi and Karimian pleaded guilty to count two of the indictment and admitted that beginning in September 2009 and continuing through April 2010, they violated the embargo against Iran by exporting and causing the export of services related to the sale of a G.E. Aircraft Engine Model CF6-50C2, as well as attempting the procurement of helicopters manufactured by Bell Helicopter, from the United States to Iran, without first having obtained the required authorizations from the U.S. Department of Treasury. All of the aircraft and aircraft parts involved in this case were intended for civilian use.
“The investigation and prosecution of national security cases is the top priority of the Department of Justice and my Office,” stated David J. Hale, the U.S. Attorney for the Western District of Kentucky. “We view the circumvention of Iranian export control laws as a very serious matter. The FBI should be commended for its excellent work in disrupting this international scheme and bringing these men to justice.”
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the president declares a national emergency with respect to a national security threat. On March 15, 1995, the president issued an executive order declaring the actions and policies of the government of Iran constituted a national emergency. On May 6, 1995, the president issued an executive order imposing the Iran Trade Embargo. On June 23, 2011, the U.S. Department of the Treasury imposed sanctions on Iran Air after designating it as a proliferator of weapons of mass destruction for providing material support and services to Iran’s Islamic Revolutionary Guard Corps.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun of the U.S. Attorney’s Office for the Western District of Kentucky and Trial Attorney Casey Arrowood of the Counterespionage Section of the Justice Department’s National Security Division. The case was investigated by the Federal Bureau of Investigation, Louisville Division.

Liberty Man Charged with Attempted Bank Robbery After Shooting, High-Speed Chase

KANSAS CITY, MO—Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Missouri man was charged in federal court today with attempted bank robbery after being shot by an employee at a Trimble, Missouri bank and leading law enforcement officers on a high-speed chase.
Michael Stephen Oliva, 34, of Liberty, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Missouri. Oliva, who has not yet had a court appearance, remains hospitalized and in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, Oliva entered First Security Bank at 202 U.S. Hwy. 169 in Trimble at about 1:25 p.m. Friday, March 1, 2013. Oliva allegedly pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee, and ordered her to give him the money in her teller drawer. The employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, the affidavit says, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
The second bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee, the affidavit says, and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva. The first shot struck Oliva in the jaw, according to the affidavit, and he turned and started toward the bank’s front doors. No money was taken during the attempted robbery.
After Oliva left the bank, the affidavit says, the first employee got up from the floor and saw him staggering behind a nearby building. She then saw a silver car drive very fast on Hwy. 169 past the bank, and she called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
According to the affidavit, Trimble Police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin, and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
Dickinson cautioned that the charge contained in this complaint is simply an accusation and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Trimble, Missouri Police Department; the Clinton County, Missouri Sheriff’s Department; and the FBI.

Quincy Man Sentenced for Running Illegal Gambling Business in Boston’s Chinatown, Using Violence to Collect Debts

BOSTON—As part of an ongoing investigation into extortion and illegal gaming in Boston’s Chinatown, a Quincy man was sentenced today for running an illegal gambling business. The investigation included a court-authorized wiretap on the defendant’s phone and a series of consensual video recordings made inside gambling dens.
Minh Cam Luong, a/k/a “Ming Jai,” 48, was sentenced by U.S. District Chief Judge Patti Saris to 84 months in prison to be followed by three years of supervised release, forfeiture pursuant to the agreed forfeiture orders, and a special assessment in the amount of $1,100. Luong pleaded guilty in September 2012 to an 11-count-indictment charging him with running an illegal gambling business and using threats of violence, and actual violence, to collect debts from gamblers and others who borrowed money. Judge Saris imposed the sentence today at the end of a three-day evidentiary sentencing hearing. The sentence represented an upward departure from the Guideline range as Judge Saris had calculated it. She based her upward departure on Luong’s “appalling” threats of violence and use of actual violence to terrify his numerous extortion victims over about a two-year period.
“The people of Boston’s Chinatown deserve to live in peace and without violence in their community,” said United States Attorney Carmen M. Ortiz. “We are hopeful that this lengthy sentence will offer some relief to the community. Prosecuting organizations who prey on others will continue to be a priority for my office.”
Luong admitted that he managed the illegal gambling business and that numerous people were victims of his extortionate collections scheme. Luong’s business ran a series of three illegal gambling dens on Edinboro Street, Harrison Avenue, and Beach Street in Chinatown from early July 2009 through June 2011. The gambling dens offered high-stakes gambling on Chinese table games. The most lucrative game was “pai gau,” in which the gamblers play against each other, not against the “house.” The house collects a five percent commission on every winning hand, and the winnings on each hand could range from hundreds to tens of thousands of dollars.
Luong and his company lent large amounts of money to gamblers and others. When debtors did not pay, Luong and his associates threatened to come after them and beat them up. Others, including the operators of other Chinatown gambling dens, were beaten up in order to maintain Luong’s “face” and his ability to collect debts from frightened debtors.
During one of the intercepted conversations, Luong told a criminal associate that he had opened his illegal gambling business in Boston rather than in New York, because Boston was “like the countryside” but “quite wealthy,” and “these country folks don’t know anything.” Luong said that his Beach Street gambling den had made $100,000 during a three-day period around Chinese New Year 2011, and that normally, the gambling den generated $60,000 or $70,000 per week in profits.
In several other intercepted conversations and voicemail messages, Luong threatened debtors with dire consequences if they did not pay up. Luong told one debtor that the debtor’s whole family would “go to hell” if he did not pay. Luong told the debtor about someone else whom Luong had beaten up the previous night and warned the debtor that the same could happen to him. Luong told another debtor that she should not think that her being a woman would prevent Luong from beating her up if she did not pay.
“Boston is one of a dozen cities nationwide that the FBI has identified as having a prevalence of Asian criminal enterprises. By identifying the threat posed by these enterprises, the FBI and our law enforcement partners can be persistent, methodical, and unyielding in investigating their activity,” said Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Division. “The residents of Boston’s Chinatown and others affected by Mr. Luong’s crimes should know that we are continuing to pursue those whose criminal activity disrupts the community’s economic and social vibrancy.”
“The defendant in this case gambled and lost. Illegal gambling is not a victimless crime. Those who participate in these criminal enterprises have no problem using threats and violence to collect outstanding debts,” said Boston Police Commissioner Edward F. Davis. “Today’s sentence sends a powerful message: this type of activity will not be condoned.”
“In addition to breaking the law by conducting unauthorized games of chance and usurious lending, gambling houses breed, and attract violence,” said Colonel Timothy P. Alben, superintendent of the Massachusetts State Police. “The people who run the games use intimidation and violence to collect debts, and the games themselves are targets for criminals, often armed, who are looking to do a rip for a quick score. Operations like the one Minh Cam Luong ran cannot be tolerated.”
Quincy Police Chief Paul Keenan said, “The Quincy Police are pleased with the outcome of the Minh Cam Luong case. The outcome was the result of a long and difficult investigation working in collaboration with a number of law enforcement organizations, the FBI, the IRS, Boston Police, Medford Police, Massachusetts Department of Corrections, State Police, and the U.S. Attorney’s Office.”
“The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety,” said Luis S. Spencer, Commissioner of the Massachusetts Department of Correction.
Luong was initially charged along with nine others in 2011. The indictment was superseded in August 2012, charging two additional individuals. To date, all 10 of the defendants charged in the initial indictment and one of the defendants added by the superseding indictment have pleaded guilty to illegal gambling business or extortionate collections conspiracy charges. Last week, Pau Hin, also of Quincy, whom the government described in court as Luong’s partner and primary enforcer and debt collector, pleaded guilty to illegal gambling business and extortionate collections charges and also pleaded guilty to participating with Luong in a conspiracy to make extortionate high-interest loans to gamblers and others in Chinatown and at Foxwoods casino. Pau’s sentencing is scheduled for June 5, 2013.
United States Attorney Ortiz; SAC DesLauriers; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation in Boston; Boston Police Commissioner Davis; Colonel Alben; Quincy Police Chief Keenan; Medford Police Chief Leo A. Sacco, Jr.; and Commissioner Spencer made the announcement. The cases are being prosecuted by Assistant U.S. Attorneys Richard L. Hoffman and Timothy E. Moran of the Organized Crime Strike Force Unit.

Long Beach Man Arrested in Federal Sex Trafficking Case

SANTA ANA, CA—A Long Beach man was arrested yesterday and is scheduled to be arraigned this afternoon on federal sex trafficking charges that allege he worked with a previously charged defendant to coerce women to work as prostitutes.
Marquis Monte Horn, also known as “Taylor,” 34, was named in an eight-count superseding indictment returned by a federal grand jury on Wednesday. The indictment charges Horn with one count of conspiracy to engage in sex trafficking and one count of sex trafficking by force, fraud, or coercion.
The second man charged in the case—Roshaun Nakia Porter, 37, also of Long Beach—was arrested and indicted on sex trafficking charges in April 2012 (see: http://www.fbi.gov/losangeles/press-releases/2012/man-indicted-for-forced-labor-and-sex-trafficking-of-women-forced-to-work-as-prostitutes-in-orange-county). Porter is named in all eight counts in the superseding indictment.
According to the superseding indictment, Horn used websites such as www.modelmayhem.com to recruit victims to work in a prostitution organization by claiming he and Porter were running an upscale escort service in which women could make $500 per day. Horn, Porter, and others used various coercive tactics to induce the victims into engaging in prostitution. For example, they allegedly developed a romantic relationship with some victims, falsely promised victims they would only be working as an escort, falsely promised financial assistance for the victims and their families, falsely promised help to obtain lawful immigration status in the United States, and isolated some victims from their friends and family.
The indictment further alleges that Horn recruited one victim into the prostitution organization who was subsequently beaten, whipped, and forced to engage in prostitution by Porter.
Investigators believe that there are additional, as-yet unidentified victims in this case. Anyone with information about this case is encouraged to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Horn is scheduled to be arraigned on the indictment this afternoon at 2:00 in United States District Court in Santa Ana.
If convicted of the charges in the indictment, Horn would face a statutory maximum penalty of life in federal prison.
Porter has previously pleaded not guilty in this case and was ordered detained (held without bond). A trial for Porter was previously scheduled for May 7 before United States District Judge Josephine Staton Tucker.
This week’s superseding indictment in the result of an ongoing investigation being conducted by the Federal Bureau of Investigation.
The case is being prosecuted by the United States Attorney’s Office and the Department of Justice’s Human Trafficking Prosecution Unit.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.

Former USD Basketball Player Brandon Johnson Sentenced for Conspiring to Commit Sports Bribery

United States Attorney Laura E. Duffy announced that Brandon Johnson was sentenced today in federal court in San Diego by the Honorable Anthony J. Battaglia to serve six months in custody, followed by one year of supervised release, for his role in a conspiracy to commit sports bribery in connection with influencing the outcome of University of San Diego (USD) basketball games during the 2009-2010 season and soliciting a USD player to do the same during the 2010-2011 season. Johnson pled guilty to an indictment charging him with conspiring to commit sports bribery on November 15, 2012. To date, eight of the 10 defendants indicted have pled guilty.
According to court documents and admissions from co-defendants’ guilty pleas, Brandon Johnson, the all-time points and assists leader at USD, received bribe money to influence the outcome of basketball games during the 2009-2010 season while he was a member of USD’s basketball team. Utilizing Johnson, the conspiracy profited by placing bets at Las Vegas casinos on games Johnson influenced. Co-defendant Steve Goria, who was sentenced to 30 months’ imprisonment in October 2012, admitted that the conspiracy profited more than $120,000 from the game-fixing scheme. Johnson admitted in his guilty plea that during the 2010-2011 season, he solicited a then-current USD basketball player to influence the outcome of basketball games for bribe money.
Judge Battaglia ordered the defendant to report on May 31, 2013 to begin serving his sentence.
Defendant in Criminal Case No. 11CR1345-AJB
Brandon Johnson
Summary of Charges
Count one: Title 18, United States Code, Section 371-Conspiracy
Investigating AgencyFederal Bureau of Investigation

Former CFO and Two Associates Given Prison Sentences in Multi-Million-Dollar Insider Trading Scheme

SAN FRANCISCO—King Chuen Tang was sentenced yesterday for his role in an insider trading scheme in which he and others obtained more than $5 million, United States Attorney Melinda Haag announced.
United States District Judge Jeffrey S. White sentenced Tang to serve one year and one day in prison, followed by three years of supervised release. While on supervised release, Tang is to serve six months in home confinement and to perform 1,000 hours of community service. On February 21, 2013, Judge White sentenced two other defendants involved in this scheme, Joseph Seto and Zisen Yu, to six months in prison, followed by three years of supervised release. While on supervised release, Seto and Yu are to serve 12 months in home confinement.
Mr. Tang pleaded guilty on March 15, 2010, to one count of conspiracy and one count of insider trading. On September 8, 2011, Seto and Yu each pleaded guilty to conspiracy. According to the plea agreements, in March 2008, Tang was the CFO at a private equity fund. As the CFO, he learned that Tempur-Pedic International Inc. (Tempur) was planning a pre-announcement before its regularly scheduled earnings announcement. He also learned that his employer was planning to buy up to $50 million in Tempur securities. Tang shared that information with Seto and Yu. Together, they traded on the inside information and netted approximately $1.9 million. In a separate scheme in April 2007, Tang received a tip from his brother-in-law, who was a CFO at another private equity fund. Tang and others traded on that information and made approximately $3.7 million dollars.
Mr. Tang, 42, of Fremont, California, was charged on February 5, 2010, in a two-count Information with conspiracy to commit insider trading, in violation of Title 18, United States Code, Section 371, and insider trading, in violation of Title 15, United States Code, Sections 78j(b) and 78ff. Mr. Seto, 42, of San Francisco, California, and Mr. Yu, 44, of Fremont, California, were charged on June 22, 2011, in a one-count Information with conspiracy to commit insider trading, in violation of Title 18, United States Code, Section 371.
Mr. Tang, Mr. Seto, and Mr. Yu were ordered to begin serving their sentences on April 29, 2013.
Jonathan Schmidt is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Marina Pononmarchuk. The prosecution is the result of a one-year investigation by the FBI.

Former Fortune 500 Top Executive of Miami Beach Manufacturing Company Pleads Guilty in Multi-Million-Dollar Investment Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, pled guilty on February 28, 2013, before U.S. District Court Judge William Dimitrouleas. Osorio pled guilty to two counts of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).
Sentencing has been scheduled for May 9, 2013. At sentencing, Osorio faces a maximum possible statutory sentence of up to 20 years in prison on each of the wire fraud conspiracies and 10 years in prison on the conspiracy to commit money laundering.
According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings LLC, a Florida limited liability company located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel, or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.
According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately 10 investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds, and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.
According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (OPIC), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.

Rosebud Man Pleads Guilty to Abusive Sexual Contact

United States Attorney Brendan V. Johnson announced that Robert I. Pomani, age 21, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on February 25, 2013, and pled guilty to a superseding information that charged him with abusive sexual contact. The maximum penalty upon conviction is two years’ imprisonment, a $250,000 fine or both, and a mandatory minimum term of supervised release of five years up to a maximum of life.
The conviction stems from an incident in December 2010 when Pomani was in a relationship with the victim. At that time, Pomani was 19 years old and at least four years older than the victim. While in the relationship, Pomani engaged in conduct that resulted in abusive sexual contact.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for May 13, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.

Lantry Man Indicted for Involuntary Manslaughter

United States Attorney Brendan V. Johnson announced that a rural Lantry, South Dakota man has been indicted by a federal grand jury for involuntary manslaughter.
Charg Hebb, age 19, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 25, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is not more than eight years in custody, a $250,000 fine, or both; three years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charge relates to an October 12, 2012 car crash on County Road 50 in Ziebach County that resulted in the death of a young man in Hebb’s vehicle. The charge is merely an accusation, and Hebb is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Hebb was released on bond pending trial. A trial date has not been set.

Pelham Man Sentenced to Three Years in Prison for Laundering Money in Scam with Daughter

BIRMINGHAM—A federal judge today sentenced a Pelham man to three years and one month in prison for laundering money in a scheme with his daughter that collected more than $400,000 for expenses of a lawsuit that never existed, announced U.S. Attorney Joyce White Vance, Alabama Securities Commission Director Joseph P. Borg, IRS-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein, Jr.
U.S. District Judge C. Lynwood Smith Jr. sentenced PAUL Haskell Lane, Jr., 69, to prison and ordered him to pay $343,900 in restitution to 20 victims of the scam he perpetrated with his daughter, Katherine Hope Lane, 28. The judge also ordered Paul Lane to forfeit $10,500 to the government as proceeds of illegal activity. Paul Lane pleaded guilty to the money laundering charge in August.
“The crime in this case was plotted and executed over more than three years’ time. As part of that scheme, Lane peddled a false story about a lawsuit for which his family ostensibly needed money,” the government said in its sentencing memorandum to the court. “After Lane seeded the ground, Katherine fertilized and watered it with myriad lies and stories designed to engender additional sympathy and obtain more money from Lane’s friends and associates. At critical times, Lane spoke to key money sources [i.e., victims] to ensure that the funds continued to flow to him and Katherine.”
Lane’s sentencing caps a six-year investigation and prosecution effort by federal and state authorities. In late 2009, Lane and his daughter were separately indicted for wire fraud, mail fraud, and money laundering for their roles in a plan to get people in other states to wire money to Lane’s bank account. Those who sent money were led to believe it would go toward costs for a personal-injury lawsuit filed by the Lane family after Katherine Lane suffered a brutal assault at work.
The Lanes represented that proceeds from the lawsuit would be used to repay people who donated. Most who provided money also believed that they would get back from the Lanes more money than they sent. Katherine Lane, however, had not been assaulte,d and the Lanes had no lawsuit.
Over the course of several years, Lane took the money that was wired into his account and gave it to his daughter.
Katherine Lane pleaded guilty in 2010 to wire fraud, aggravated identity theft, and money laundering. She was sentenced in 2011 to seven years and three months in federal prison. Katherine Lane also pleaded guilty to felony state securities fraud charges related to her actions. Her sentence of seven years and three months on the state charges was ordered to run concurrently with the federal sentence.
The Internal Revenue Service, the FBI, and the Alabama Securities Commission investigated the case. Assistant U.S. Attorney Melissa K. Atwood prosecuted the case.

Maryland Man Indicted on Wire Fraud, Securities Fraud, and Other Charges for His Role in a Ponzi Scheme

WASHINGTON—Garfield M. Taylor, 54, of Rockville, Maryland, has been indicted on wire fraud, securities fraud, and other charges stemming from a Ponzi scheme that resulted in investors losing nearly $25 million that they invested with Taylor and companies he controlled.
The indictment, returned by a grand jury in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen, Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Taylor was arrested today and pled not guilty at his arraignment. The indictment was returned February 21, 2013, and unsealed today. Taylor was indicted on seven counts, including charges of wire fraud, securities fraud, and the unlawful sale of unregistered securities. The indictment includes a forfeiture allegation calling for Taylor to forfeit proceeds from the crimes.
According to the indictment, Taylor devised and employed a scheme from in or about September 2006 through in or about September 2010 in which he convinced investors to invest with him by promising them substantial returns on their investment, telling them that he used a sophisticated securities trading strategy that protected against loss, and claiming that he had a proven track record of using this strategy effectively.
During the course of this scheme, however, Taylor never used the trading strategy that he told investors that he would use. With the investments he did make during this period, Taylor either lost money or made minimal profits far below what was needed to pay the amounts he owed. The only way that Taylor was able to pay the substantial interest rates he was paying during this period was to use portions of the principal invested by new investors to pay amounts that were owed to earlier investors.
In one example cited in the indictment, in or about April 2010, Taylor used approximately half of an investor’s $425,000 investment to pay interest and principal that was due to earlier investors, rather than using those funds to invest in securities, as he had promised to do. Taylor paid only a portion of the interest payments he was required to pay the investor, before telling the investor that, because of trading losses, he was unable to make any more interest payments or to return the investor’s principal.
The indictment further alleges that in the course of trying to convince investors to invest with him, Taylor told certain investors that amounts invested with him were insured against loss and that Taylor maintained an account with reserve funds to offset any losses to investors should Taylor actually lose their investment through bad investment decisions. But neither insurance nor an account to reimburse Taylor’s investors existed.
At the time of the scheme’s collapse, Taylor owed investors nearly $25 million just to cover the principal he was contractually required to return to them.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorneys Matt Graves, Lionel André and Catherine K. Connelly, with assistance from Litigation Technology Specialist Joseph Calvarese and Paralegal Specialists Tasha Harris and Lenisse Edloe.

Bank Executive Charged with Receiving Bribes from Oxford Collection Agency

David B. Fein, United States Attorney for the District of Connecticut, announced that Wilbur Tate, III, 48, of Dacula, Georgia, was arrested today on a federal criminal complaint charging him with conspiracy to commit bank bribery while he was an executive at U.S. Bank in Ohio. Tate appeared today before U.S. Magistrate Judge Linda T. Walker in Atlanta and was released on a $50,000 bond.
According to the complaint and court documents filed in related cases, Oxford Collection Agency was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania, and Florida. Between 2007 and 2011, Oxford Collection Agency executives engaged in a multi-year scheme to defraud its lender, investors, and clients. The investigation also revealed that Oxford Collection Agency was actively involved in bribing bank officials.
The complaint alleges that Tate, an assistant vice president of U.S. Bank in Ohio from January 2004 through February 2011, was in charge of outsourcing collection accounts to collection agencies, including Oxford Collection Agency. Beginning in approximately August 2008 and continuing for more than two years, Oxford Collection Agency executives engaged in a bribery scheme with Tate in order to obtain and retain the business of U.S. Bank. As part of the scheme, Oxford executives initially provided Tate with boxes of expensive cigars and subsequently sent Tate monthly cash payments of between $2,500 and $5,000, which were hidden in cigar boxes and mailed to Tate’s residence in Mason, Ohio.
U.S. Bank received funds through the Troubled Asset Relief Program (TARP).
U.S. Attorney Fein also stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan, Special U.S. Attorney John McReynolds and Deputy U.S. Attorney Deirdre Daly, with the assistance of the U.S. Attorney’s Office for the Northern District of Georgia.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities, and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The task force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department; and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll-free, 855-236-9740 or by sending an e-mail to ctsecuritiesfraud@ic.fbi.gov.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

South Carolina Man Charged with Threatening to Kill the President of the United States

ATLANTA—Patrick Randell McIntosh, 28, of Charleston, South Carolina, was arraigned today before United States Judge Linda T. Walker, on charges of possessing three firearms and ammunition while under indictment for a felony and for threatening the life of the president of the United States on Facebook.
“McIntosh is charged with making violent and disturbing threats online and via e-mail to several people, including a threat to the life of the president of the United States,” said United States Attorney Sally Quillian Yates. “Many state, local, and federal law enforcement agencies have worked together to bring this potentially dangerous man into custody to protect the citizens of the United States.”
According to United States Attorney Yates, the charges, and other information presented in court, McIntosh posted on his Facebook page his intention to shoot patrons at a local Atlanta lounge and to kill the president of the United States. After posting the various threats, the defendant purchased three firearms from individuals who advertised weapons for sale.
McIntosh also threatened a woman in the Atlanta area. The woman reported to Gwinnett County authorities that McIntosh was stalking her. She gave police the location of a hotel where McIntosh was staying. Law enforcement officers subsequently arrested McIntosh at the location and recovered guns and ammunition in his possession.
“With the increased use of the various forms of social media comes increased online threats that vary in nature,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI, as well as law enforcement as a whole, takes such online based threats seriously and they can easily evolve into federal criminal charges for those individuals making them.”
“Threats against the president of the United States and others we are statutorily authorized to protect are the Secret Service’s number one investigative priority. Every threat, no matter if made by telephone, in person, in writing, or on social media is examined to the fullest extent possible. Working with our partners in law enforcement and the U.S. Attorney’s Office we will continually seek to bring those who make threats to justice,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“I’m proud of the Atlanta Police Department’s active participation in the investigation that led to the removal of this dangerous individual off of the streets,” said Atlanta Police Chief George N. Turner. “This arrest and indictment underscore the importance of solid relationships with our local, state, and federal law enforcement partners. We’re all safer today as a result of this cooperation.”
McIntosh was indicted by a federal grand jury in Atlanta on January 15, 2013, and charged with illegally possessing three firearms and a large amount of ammunition while under indictment for a felony offense and for threatening the president. He had been released on state bond after being indicted in the state of South Carolina for felony stalking.
McIntosh faces a maximum possible sentence of five years in prison on the firearms charge and 10 years in prison on the threat charge. McIntosh could be also be fined up to $250,000 on each charge. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding on the court but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Joint Terrorism Task Force (JTTF), which includes agents with the Federal Bureau of Investigation, the United States Secret Service, and the Federal Air Marshal Service. The threat was initially investigated by detectives of the Atlanta Police Department and subsequently referred to the JTTF.
Assistant United States Attorney Katherine M. Hoffer is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.Pressemails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.