Connecticut Man Found Guilty of Setting Fire That Killed Three Individuals, Including 8-Year-Old Boy

NEW HAVEN, CT—A federal jury in New Haven has found Hector Natal, also known as “Boom” and “Boom Boom,” 27, of New Haven, guilty of committing the March 9, 2011 arson of a multi-family house in New Haven, announced U.S. Attorney for the District of Connecticut David B. Fein. The arson caused the deaths of three residents, 42-year-old Wanda Roberson, her 8-year-old son Quayshawn Roberson, and her 21-year-old niece Jaquetta Roberson. The jury also found Natal, together with his father, Hector Morales, 51, of New Haven, guilty of participating in a narcotics distribution business, which led to the arson, and tampering with witnesses in an effort to obstruct the grand jury investigation of the arson. Morales further aided Natal by altering evidence in order to obstruct the investigation. The trial of Natal and Morales began on March 25, 2013 and, this afternoon, the jury returned a verdict of guilty on all counts of an 11-count indictment. The announcement of today’s verdict was made by U.S. Attorney Fein; Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI; New Haven Police Chief Dean Esserman; and New Haven Fire Chief Michael Grant.
“Today, a unanimous jury found that Hector Natal set fire to a home where families and children lived, three of whom tragically perished, and that he was guilty as charged,” stated U.S. Attorney Fein. “The jury also unanimously found that Natal’s father, Hector Morales, assisted his son’s narcotics trafficking and then helped his son try to cover-up this terrible crime. Today, our thoughts are with the victims and their families. Justice has been served, and we thank our law enforcement partners, particularly the FBI, Connecticut State Police, New Haven Police Department, and New Haven Fire Department, who have worked tirelessly during the investigation and prosecution of this matter.”
“Today’s guilty verdict will hopefully provide some level of comfort to the Fair Haven community and especially to those who lost loved ones as a result of the 2011 arson on Wolcott Street,” stated FBI Special Agent in Charge Mertz. “Dedicated investigators and prosecutors have worked together diligently since day one to ensure justice for the victims of that horrific crime.”
“The New Haven Police Department is gratified for the strong working relationship with the United States Attorney’s Office in bringing justice to all the victims in this case,” stated Chief Esserman.
“I couldn’t be more proud of our firefighters’ outstanding efforts in responding so bravely to this deadly arson and our law enforcement partners who brought this case to justice,” stated Chief Grant.
According to the evidence presented during trial, Natal was a New Haven drug dealer who sold cocaine, crack cocaine, pills, and marijuana. Morales served as Natal’s driver, facilitating his sales of narcotics and collection of drug proceeds. Early on the morning of March 9, 2011, Natal set fire to the two-family house in retaliation for a customer’s failure to pay a drug debt. After the fire was set, Morales drove Natal away from the scene in his blue van. Morales thereafter painted his van black in an effort to obstruct the investigation. Natal and Morales then schemed with other family members to testify falsely before the grand jury in order to prevent the grand jury from developing evidence regarding Natal’s and Morales’ complicity in the arson.
The evidence at trial also showed that, months before the fatal fire, Natal attempted to set a fire in the same house.
Natal was found guilty of three counts of arson resulting in death. This charge carries a mandatory minimum term of seven years’ imprisonment and a maximum term of life imprisonment on each count. He also was found guilty of one count of attempted arson, which carries a mandatory minimum term of five years of imprisonment and a maximum term of 20 years.
Natal and Morales were both convicted of conspiring to distribute and to possess with intent to distribute narcotics, conspiring to tamper with witnesses, and witness tampering. Each of these charges carries a maximum term of imprisonment of 20 years.
Additionally, Morales was found guilty on three counts of being an accessory after the fact to the arson, which carries a maximum term of imprisonment of 15 years, and one count of destruction and concealment of evidence, which carries a maximum term of imprisonment of 20 years.
A sentencing date has not been scheduled.
Natal has been detained since his arrest on June 14, 2011, and Morales has been detained since his arrest on July 19, 2012.
This matter has been investigated by the FBI; the New Haven Police Department; the Connecticut State Police Major Crimes Unit; Office of the State Fire Marshal; the New Haven Fire Department-Office of Fire Marshal; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the U.S. Department of Housing and Urban Development’s Office of Inspector General. The case is being prosecuted by First Assistant U.S. Attorney Deirdre M. Daly and Assistant U.S. Attorney Michael J. Gustafson, with assistance and support from the New Haven State’s Attorney’s Office.

Anchorage Man Imprisoned for ‘Crash for Cash’ Insurance Scam

ANCHORAGE—U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident who had been indicted for three separate instances of wire fraud in connection with an insurance scam was sentenced Tuesday in federal court in Anchorage.
Rustem Mukhametshin, 26, was sentenced by U.S. District Court Judge Timothy Burgess, to 12 months in prison, to be followed by three years of supervised release, and to make restitution payments totaling more than $70,000. Mukhametshin, who is a citizen of Russia, pled guilty in January 2013 and is scheduled to be deported from the United States at the conclusion of his prison sentence.
According to Assistant U.S. Attorney Bryan Schroder, who prosecuted the case, Mukhametshin was a principle figure in a unique and extensive scheme to defraud insurance companies for tens of thousands of dollars. Mukhametshin exploited a weakness in the practices of the insurance companies since they generally do not inspect vehicles when they issue an insurance policy. The companies assume that the vehicle being insured is of a reasonable condition, making its value consistent with other cars of the same make, model, production year, and mileage. Mukhametshin exploited that practice by buying damaged cars at rates well below the standard value and then staging accidents with the damaged cars he purchased. The difference between the low value of the damaged cars and the value of an undamaged standard vehicle of similar model, year, mileage, was then taken as profit. Mukhametshin staged four of these accidents and only stopped the criminal activity after the insurance company refused to pay.
Assistant U.S. Attorney Bryan Schroder further stated that Mukhametshin’s scheme was even more extensive because confederates of the defendant were staging similar fraudulent “accidents.” The loss amount directly attributable to the defendant’s actions was $70,656.70.
Ms. Loeffler commends the Federal Bureau of Investigation for the investigation on this case.

Fifty-Seven Charged with Operating Illegal Online Sports Gaming Business

WASHINGTON—Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
According to the indictment, Bartice Alan King, aka “Luke” and “Cool,” 42, of Spring, Texas, conspired with others to operate Internet and telephone gambling services first from San Jose, Costa Rica and then from Panama City, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members, and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds, and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both “post-up” betting, which requires a bettor to first set up and fund an account before placing bets and “credit” betting, which allow the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling more than $1 billion.
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds,” said Acting Assistant Attorney General Raman. “Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates or where the defendants reside.”
“The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries,” said U.S. Attorney Sanford C. Coats. “I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise.”
“Individuals cannot skirt the laws of the United States by setting up illegal Internet gambling operations in a foreign country while living in the United States and enjoying all the benefits of U.S. citizens,” said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. “The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law.”
“Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes,” said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. “This massive indictment is the result of our highly effective law enforcement partnership.”
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering, and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, individual retirement accounts, domain names, a Sabreliner aircraft, a gas lease, and vehicles.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden, Jr. from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.
For further information, reference is made to the 95-page indictment, which can be found at www.justice.gov/usao/okw/news/2013/2013_04_10.html.

Illegal Sports Bookmaker Sentenced for Conspiring to Commit Sports Bribery

United States Attorney Laura E. Duffy announced that Paul Joseph Thweni was sentenced today by the Honorable Anthony J. Battaglia to serve 30 months in custody, followed by three years’ supervised release, for his role in a criminal conspiracy.
The indictment charged that Thweni and nine others enriched themselves by operating an illegal sports gambling business and by distributing marijuana. Using proceeds from those crimes, Thweni and his co-conspirators influenced the outcome of basketball games at the University of San Diego (USD) during the 2009-2010 season and then attempted to recruit players to do the same during the 2010-2011 season. Thweni pleaded guilty to the indictment on August 2, 2012.
According to court documents and other admissions, Thweni and his co-conspirators bribed co-defendant Brandon Johnson to influence the outcome of basketball games during the 2009-2010 season while Johnson was a member of USD’s basketball team. The co-conspirators then 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 made more than $120,000 from the game-fixing scheme. Thweni previously admitted that during the 2010-2011 season, the co-conspirators attempted to recruit current college basketball players at USD and other schools to influence the outcome of basketball games in exchange for cash.
Judge Battaglia ordered the defendant to report on April 19, 2013, to begin serving his sentence.
Defendant in Criminal Case No. 11CR1345-AJB
Paul Joseph Thweni
Age: 28
Spring Valley, California
Summary of Charges
Count one: Title 18, United States Code, Section 371—conspiracy
Investigating Agency
Federal Bureau of Investigation
Convictions in Criminal Case Number: 11cr1345AJB
Steve Warda Goria
Richard Francis Garmo
Thaddeus James Brown
Brandon Johnson
Richard Thweni
David Gates
Jake Salter

Self-Proclaimed Camp Pendleton ‘Godfather’ Charged with Bribery

United States Attorney Laura E. Duffy announced that Natividad Lara Cervantes, aka Nate Cervantes, a U.S. Department of Defense employee—and the supervisor for construction and service contracts at Camp Pendleton—was arraigned today on bribery charges before Magistrate Judge Barbara L. Major in relation to assisting a contractor obtain a $4 million construction contract.
According to court records, Cervantes used his position at Camp Pendleton to extort bribes from businesses seeking to do business on the base, and referred to himself as the “Godfather at Camp Pendleton.” At least as early as September 2008, Cervantes allegedly used his position supervising construction and service contracts to extort bribes from businesses seeking to do business at Camp Pendleton. In return for these contracts, Cervantes received cash payments and remodeling work on a condominium.
As reflected in the complaint supporting his arrest, on Tuesday, March 26, 2013, a cooperating witness met with Cervantes and agreed to pay him a $40,000 bribe in exchange for assistance in obtaining a new $4 million contract at Camp Pendleton. The bribe was to be structured over a number of payments. The first payment was scheduled for Thursday, March 28, 2013, with the balance of the bribe to be paid after the contract was awarded.
On Thursday, March 28, 2013, the cooperating witness met with Cervantes at a local business on Miramar Road in San Diego, California, to make the first payment that was discussed earlier in the week. During this meeting, Cervantes discussed, among other things, the payment schedule and the source of funds for the bribe payments. At the end of the meeting, the witness handed Cervantes an envelope containing $10,000 cash. After Cervantes had received the cash, FBI agents approached and ordered Cervantes and the witness to put their hands in the air.
United States Attorney Duffy commented that today’s prosecution was one more example of her “zero tolerance” policy when it came to government corruption. “Given the large military presence in San Diego, it is imperative that this office ensure that the government contracting process is free from bribery and undue influence. There must be a level playing field free from corruption for all government contractors.”
Cervantes is scheduled to next appear in court on May 10, 2013 before Judge Anthony J. Battaglia. The charges in this case are not themselves evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
This investigation was conducted under the FBI’s public corruption investigative program. The public is encouraged to report possible public corruption criminal activity to the FBI by calling the FBI’s public corruption/border corruption hotline at (877) NO-BRIBE or (877) 662-7423.
Defendant - Case Number: 13cr1345AJB
Natividad Lara Cervantes
Age: 64
San Diego, CA
Summary of Charges
Title 18, United States Code, Section 201(b)(2)—Bribery of public official
Maximum penalties: 15 years’ imprisonment, $250,000 fine
Investigating Agencies

• Federal Bureau of Investigation
• Naval Criminal Investigative Service
• Internal Revenue Service, Criminal Investigation
• Department of Defense Criminal Investigative Service
• General Services Administration, Office of Inspector General
• Small Business Administration, Office of Inspector General

Former IRS Agent Sentenced to 24 Years in Federal Prison for Murder-for-Hire and Tax Charges

SAN DIEGO—Former Internal Revenue Service agent-turned-tax preparer Steven Martinez was sentenced today by U.S. District Court Judge William Q. Hayes to almost 24 years in prison for defrauding clients of more than $11 million and then plotting their murders to prevent them from testifying about the theft.
In addition to a 286-month sentence, the judge ordered Martinez to pay more than $14 million in restitution to the victims, the IRS, and the California Franchise Tax Board. Judge Hayes also entered a preliminary order of forfeiture as to certain real and personal property, including an $11 million money judgment. Following Martinez’s service of his sentence, Judge Hayes placed him on five years of supervised release.
In comments at today’s hearing, Assistant U.S. Attorney Joseph Orabona argued for a significant sentence in part because Martinez meticulously planned the murders by giving a would-be assassin—who was a cooperating witness for the FBI—detailed instructions and information about each of the four victims contained in “packets.” One of the exchanges between Martinez and the cooperating witness was captured on video.
“These victims were surveilled. They were watched. Their habits were documented. It’s disturbing,” Orabona said. “This was a cool and calculating individual. He knew how the victims lived. He’s explaining it to the hitman on the video.”
Before imposing a sentence, Judge Hayes noted that the defendant did not make a heat-of-the moment decision to commit a crime. Rather, it was a long-term fraud spanning years and culminating with the carefully planned murder-for-hire plots. “Mr. Martinez in my view had some time to think about what he was doing,” said Judge Hayes. He called the defendant’s actions “cold blooded.”
U.S. Attorney Laura Duffy said she was pleased with the outcome of the prosecution. “This is a case of greed so extreme that what began as serious—but not violent—white-collar crimes almost escalated to the murders of four people. Fortunately, FBI intervention prevented the violence and today justice was served with a decades-long sentence. As tax day quickly approaches, this is a reminder that anyone who chooses to undermine the integrity of our tax system risks prosecution.”
FBI Special Agent in Charge Daphne Hearn commented, “Once the FBI became aware of Mr. Martinez’s murder-for-hire plot, FBI agents took immediate steps to disrupt this plot. In doing so, the FBI ensured that no harm would come to potential witnesses or others. I commend the efforts of the agents and prosecutors who worked tirelessly in this investigation.”
N. Dawn Mertz, Special Agent in Charge of IRS-Criminal Investigation’s Los Angeles Field Office, commented, “The activities of Steven Martinez are an example whereby tax crimes, malicious financial greed, and a blatant disregard for the law can turn into potential violent criminal activity. Today’s sentencing reinforces IRS-Criminal Investigation’s commitment to pursuing those committing tax and financial crimes and to partner with our law enforcement community to bring justice to those who behave as if they are above the law.”
Martinez pleaded guilty on August 10, 2012, to criminal charges including murder-for-hire, witness tampering involving attempted murder, solicitation of a crime of violence, mail fraud, filing false tax returns, Social Security fraud, aggravated identity theft, and money laundering. Martinez pleaded guilty to 12 counts in a superseding indictment.
As part of his guilty plea, Martinez admitted that in late February 2012, he solicited a third party to murder four witnesses with the intent to prevent their testimony in his pending criminal tax case.
The third party contacted the San Diego division of the FBI on February 28, 2012, to report the murder-for-hire plot by Martinez and agreed to cooperate with the FBI in the investigation. According to the complaint, a subsequent meeting between the FBI’s cooperating witness and Martinez was recorded and videotaped by the FBI.
In reference to two of the murder targets, Martinez told the would-be assassin “he could make him rich for the rest of his life, $100,000 cash, if he eliminated the lady in Rancho Santa Fe and the lady in La Jolla,” according to court records. The cooperating witness said Martinez “suggested that the former employee use two different pistols for the murders and that he acquire a silencer.”
Martinez admitted in court that he tried to prevent the former clients’ testimony by offering the FBI’s cooperating witness $100,000 to murder them. He admitted he provided the third party with four written packets of detailed information about the former clients, including photos of the soon-to-be murder victims, their homes, and personal information. Martinez admitted that once the murders took place, he would pay the perpetrator $40,000 in cash, followed by the remaining $60,000 in cash within 72 hours of the murders.
In addition, Martinez admitted that he filed false tax returns and defrauded his clients by stealing over $11 million in tax payments. Martinez admitted that he presented his clients with completed tax returns indicating that they owed a significant amount of tax. He requested that his clients write checks payable for the amount of taxes due and owing to an alleged client trust account (instead of directly to the IRS or the California Franchise Tax Board).
Martinez also convinced these same clients to write checks during the tax year for estimated tax payments to the same alleged client trust accounts. Rather than deposit these checks into a true trust account, Martinez admitted that he took the checks and deposited them into several nominee bank accounts. In an attempt to conceal his fraud, Martinez admitted that he filed a different set of false tax returns indicating that his clients owed little or no income tax.
Martinez admitted that he converted approximately $11 million in stolen taxpayer funds for his own personal benefit and used them to make home improvements, purchase real estate, purchase a beach home in Mexico, pay for the use of a private airplane, make investments of more than $2 million in other entities, and make payments of more than $2 million for his personal use credit cards and loans.
As part of his fraudulent tax scheme, Martinez admitted that he committed Social Security fraud and aggravated identity theft by using the Social Security numbers of his clients without authorization when he filed the false tax returns with the IRS. Martinez admitted he committed mail fraud by mailing the false tax returns to the IRS. Martinez also admitted that he laundered approximately $2 million through nominee bank accounts for his own business and personal use.
Finally, Martinez admitted that he knowingly and intentionally filed false personal income tax returns for tax years 2004, 2005, 2006, and 2007.
Defendant in Criminal Case No. 11CR1445WQH
Steven Martinez
Age: 51
Ramona, California
Charges to which Defendant Pled Guilty:
Count four: Title 18, United States Code, Section 1341-mail fraud
Maximum penalties: 20 years of imprisonment and a fine equal to twice the gross loss caused to persons by the offense
Count seven: Title 26, United States Code, Section 7206(2)-procuring false tax returns
Maximum penalties: three years of imprisonment and $250,000 fine
Counts 21: Title 42, United States Code, Section 408(a)(8)-Social Security Fraud
Maximum penalties: five years of imprisonment and $250,000 fine
Counts 33: Title 18, United States Code, Section 1028A-aggravated identity theft
Maximum penalties: two years of imprisonment, consecutive to any other sentence
Count 47: Title 26, United States Code, Section 7206(2)-making false tax returns
Maximum penalties: three years of imprisonment and $250,000 fine
Count 49: Title 18, United States Code, Section 1957-money laundering
Maximum penalties: 10 years of imprisonment and $250,000 fine
Counts 50 through 53: Title 18, United States Code, Section 1512(a)(1)(A)-witness tampering
Maximum penalties: 30 years of imprisonment and $250,000 fine per count
Count 54: Title 18, United States Code, Section 1958-use of a facility of interstate commerce in commission of murder-for-hire
Maximum penalties: 10 years of imprisonment and $250,000 fine
Count 55: Title 18, United States Code, Section 373-solicitation of a crime of violence
Maximum penalties: 15 years of imprisonment and $250,000 fine
Agencies
Internal Revenue Service-Criminal Investigation
Federal Bureau of Investigation

Former Army Soldier Indicted on Bribery and Related Charges for Facilitating Thefts of Fuel in Afghanistan

WASHINGTON—Stephanie Charboneau, aka Stephanie Shankel, 34, of Fountain, Colorado, formerly a specialist in the United States Army, has been indicted in the District of Colorado for her alleged role in assisting the thefts of fuel in Afghanistan and laundering the proceeds of crime, Acting Assistant Attorney General Mythili Raman of the Criminal Division announced.
According to the indictment returned on April 9, 2013, and now filed publicly, Charboneau was assigned to Forward Operating Base (FOB) Fenty, in eastern Afghanistan, as part of the 704th Brigade Support Battalion. Her duties included overseeing the movement of fuel by private Afghan trucking companies from FOB Fenty to nearby military bases. The indictment alleges that Charboneau conspired with Sergeant Christopher Weaver, her supervisor, and Jonathan Hightower, a civilian employee of FLUOR Inc., to facilitate the theft of fuel for money. Charboneau and her co-conspirators allegedly received money from a representative of an Afghan trucking company to enable that company to steal truckloads of fuel. The conspirators allegedly authorized the movement of truckloads of fuel from FOB Fenty—ostensibly to nearby bases—knowing and intending that when the fuel left FOB Fenty it would never reach the designated base and would instead be stolen. These events occurred from approximately February 2010 through approximately May of 2010.
In addition, the indictment charges that when Charboneau returned to the United States, she engaged in a series of transactions with the bribe proceeds to avoid the currency transaction reporting requirements. Charboneau allegedly purchased an automobile for $33,179 in cash through a $5,000 down payment, two $9,900 cashier’s checks she funded but were in the name of two acquaintances, and an $8,379 cashier’s check in her name.
Charboneau was charged with conspiracy, bribery, theft, money laundering and structuring. If convicted, she faces penalties of 20 years in prison for money laundering, 15 for bribery, 10 for theft of government property, and five for conspiracy and structuring. She also faces fines of $250,000 per count.
Weaver and Hightower have each pleaded guilty to a bribery conspiracy scheme and are awaiting sentencing.
This case was investigated by former Fraud Section Trial Attorney Mark Pletcher, who is currently an Assistant United States Attorney for the Southern District of California, and Special Trial Attorney Mark H. Dubester. The case was investigated by the Special Inspector General for Afghanistan Reconstruction, the Department of the Army, Criminal Investigations Division, the Defense Criminal Investigative Service, and the FBI Denver Field Office.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.

Third Defendant in Real Estate Fraud Case Pleads Guilty

DENVER—Alois Craig Weingart, age 59, of Castle Rock, Colorado, pled guilty to one count of making a false statement to a bank, U.S. Attorney John Walsh, IRS-Criminal Investigation Special Agent in Charge Stephen Boyd, and FBI Denver Acting Special Agent in Charge Steven Olson announced. Weingart entered his guilty plea before Chief U.S. District Court Judge Marcia S. Krieger and is scheduled to be sentenced on July 8, 2013. In the same case, Waunita Weingart pled guilty to two counts of wire fraud on March 13, 2013, and is scheduled to be sentenced on June 17, 2013. John Gallegos pled guilty to one count of making a false statement to a bank and is scheduled to be sentenced on May 6, 2013.
According to the stipulated facts contained in Waunita Weingart’s plea agreement, beginning in 2000 and continuing through 2008, she devised a scheme to defraud lenders that funded residential mortgage loans. She was an experienced mortgage broker, settlement agent, and licensed title insurance producer. Alois Craig Weingart is her husband; John Gallegos is her son. As part of her scheme, she, John Gallegos, and Craig Weingart each repeatedly obtained mortgage loans for their properties in Castle Rock and Boulder, Colorado, pledging the same properties again and again as collateral to each successive lender without paying off the prior loans. Waunita Weingart used her mortgage brokerage, G-4 Holding, as well as two escrow/title companies she controlled, Colorado County and Community Title and Real Estate Title, to facilitate her fraud.
For each new loan, Waunita Weingart made it appear as though the lender would obtain a first priority security interest in the property, knowing that it would not. In preparing the loan applications and providing information to the lenders for the applications, she incorporated false representations as necessary to assure that the borrowers would qualify for the loans. Each application substantially overstated the borrower’s true income, falsely representing that he or she had high monthly earnings from employment at another company Waunita Weingart controlled. Each application also falsely represented that the borrower owned numerous properties that he or she did not in fact own. As a result of her scheme, lenders lost over 12 million dollars.
Alois Craig Weingart pled guilty to making a false statement to obtain loans for his Castle Rock property; John Gallegos pled guilty to making a false statement to obtain a loan for another property he owned in Seattle, Washington.
“The defendants in this case thought they could out-smart the financial system,” said U.S. Attorney John Walsh. “Crimes such as this ultimately hurt our economy as well as those who applies for a mortgage.”
“IRS-Criminal Investigation is committed to working diligently with our law enforcement partners to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice,” said Stephen Boyd, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office.
“Investigating mortgage fraud is a priority for the FBI as it hurts homeowners, businesses, and the economy,” said FBI Denver Acting Special Agent in Charge Steven Olson. “Working closely with the IRS-Criminal Investigations and the U.S. Attorney’s Office, we were able to see that the three defendants were charged and ultimately convicted for fraud.”
Waunita Weingart faces not more than 20 years’ imprisonment and up to a $250,000 fine per count for two counts of wire fraud. Craig Weingart and John Gallegos face not more than 30 years’ imprisonment and up to a $1,000,000 fine for making a false statement to a bank.
This case was investigated by special agents with IRS-Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Linda Kaufman and Martha Paluch.

FBI Seeks Public’s Help in Identifying Alleged Victims of Convicted Killer

The FBI is seeking the public’s assistance in identifying alleged victims of convicted killer Curtis Dean Anderson, who died while serving his prison term on December 9, 2007.
Anderson was convicted and sentenced to over 300 years in prison for the 1999 kidnapping and murder of 7-year-old Xiana Fairchild in Vallejo, California, and other crimes. He was captured after one of his kidnap victims, then 9-year-old Midsi Sanchez, was able to escape.
Anderson was interviewed by FBI agents in November 2007, and he confessed to murdering eight victims in the United States, which includes Fairchild and 7-year-old Amber Swartz-Garcia of Pinole, California, in 1988. Anderson also confessed to two murders in Mexico but did not provide any information on those victims.
The following is a list of the stateside victims’ descriptions by Anderson in chronological order:
Late 1984
Victim #1 was described as a female in her late teens/early 20s. Anderson allegedly met and killed her and disposed of her body near a local swimming hole in Marysville, California. She was a “runaway.”
Victim #2 was a young female hitchhiker in her late teens, whom Anderson claimed he picked up on a road near the northeast side of Clearlake a few days after the death of Victim #1.
Early 1985
Victim #3 was a female who was in her late teens. She was also residing in the Marysville area and was possibly a runaway from Oregon. Anderson claimed to have killed her in early 1985. Anderson allegedly disposed of Victims #2 and #3 near the Ballard’s Bar Dam close to Dobbins, California.
November 1986
Victim #4 was approximately 21 years old. She was a light-skinned black female whom Anderson met in a bar frequented by African-Americans located in the East Bay, off Interstate-80 on San Pablo Avenue. He claims this occurred about 10 days after he was paroled from San Quentin State Prison. Anderson allegedly killed the victim and disposed of her body in the Oakland hills.
June 1988
Victim #5 was Amber Swartz-Garcia. Anderson said Swartz-Garcia was standing on a street in Pinole, California, when he drove up to where she was standing, opened his car door, and physically forced her into his car. He eventually murdered her in Arizona and disposed of her body around Benson, Arizona, in the desert off of Interstate-10 sometime in mid-1988.
1988/1989
Victim #6 was allegedly a Navajo Indian woman who was approximately 23 to 24 years old. Anderson claimed he picked her up near 5th or 6th Street in Benicia, California, coming out of a bar in either 1988 or 1989. He said that he killed his victim in the desert somewhere near Benson, Arizona.
Early 1997
Victim #7 was in her early 20s. She was a black and Hispanic female whom Anderson described as going by the name “Rosie.” Anderson allegedly met the victim at The Bears bar, which he described as being frequented by Hispanics. This bar was located under Highway 87 in San Jose, California, near a bowling alley.
Anderson claimed this victim had noticeable “junkie tracks” on her arms, and he killed her by strangulation. He allegedly disposed of her body less than five miles off the Ben Lomand turnoff near Santa Cruz, California, approximately 300 yards past a water retention pond behind a locked gate.
During this incident, Anderson stated he had been driving a black Toyota truck from his “Parts Company.” He claimed this occurred around February or March 1997.
December 1999
Victim #8 was Xiana Fairchild, who disappeared on December 9, 1999. Her skull was found in early 2001 in an unincorporated area of Los Gatos in Santa Clara County.
If the public has any information regarding the identity of the alleged victims, please call the FBI San Francisco tip line at 1-800-CALL-FBI (1-800-225-5324). All calls are confidential and tips can be left anonymously.
Photos of Curtis Dean Anderson:

Photo taken in 1983	Photo taken in 1999

Examples of vehicles Curtis Dean Anderson may have driven:

Example of a two-door 1977 Chevy sedan (Anderson allegedly drove a vehicle similar to the one seen above in the late 1980s. He received a ticket in 1989 and was driving a vehicle similar the one shown.)
Example of a 1997 black Toyota truck (Anderson allegedly drove a truck similar to the one see above in 1997.)

Members of the media should call Public Affairs Specialist Julianne Sohn at 415-553-7450.

Rochdale Securities Trader Admits Role in Fraudulent Scheme Involving Nearly $1 Billion Purchase of Apple Stock

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that David Miller, 40, of Rockville Centre, New York, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to conspiracy and fraud offenses related to his role in a fraudulent scheme to make large purchases of stock in Apple Inc. as an institutional sales trader for Rochdale Securities LLC of Stamford.
“This defendant participated in a fraudulent scheme in which he would either reap huge profits through the unauthorized purchase of approximately $1 billion of Apple stock or, if he faced huge losses, explain it away as simple human error,” stated U.S. Attorney Fein. “This scheme caused catastrophic losses for his former employer and was unraveled promptly by the FBI. The U.S. Attorney’s Office and our many partners on the Connecticut Securities, Commodities, and Investor Fraud Task Force are committed to protecting investors and the integrity of American capital markets. This investigation is ongoing.”
“Risk is inherent in the investment world, but that risk should never be borne from the actions of investment professionals who choose to serve their own financial agendas rather than those of their clients,” stated FBI Special Agent in Charge Mertz. “As this guilty plea demonstrates, the FBI and its partners on the Connecticut Securities, Commodities, and Investor Fraud Task Force will act swiftly to investigate and bring to justice those who violate securities laws.”
According to court documents and statements made in court, Miller, while working as an institutional sales trader at Rochdale Securities LLC (“Rochdale”) in Stamford, conspired with another individual to execute a trade to buy 1,625,000 shares of stock in Apple Inc. (“Apple”) on behalf of a Rochdale customer whose account Miller handled. As part of the scheme, Miller and his co-conspirator had agreed that the co-conspirator would submit an order for Apple stock on October 25, 2012, the day Apple was scheduled to announce its earnings for the quarter and would write the order in such a way that Miller could later claim he misinterpreted it. Miller would then execute a trade for 1,000 times the number of shares written in the order. If the trade proved profitable, Miller and his co-conspirator would share in the profits. If the trade proved unprofitable, Miller would claim human error, leaving Rochdale holding the losing position.
At approximately 9:31 a.m. on October 25, 2012, Miller’s co-conspirator submitted an order for Apple that read: “b 125 ok (per 1/2 hr).” Miller then began executing orders to buy 125,000 shares of Apple stock, purportedly on behalf of the Rochdale customer. Over the course of the day, Miller entered multiple, separate orders in Rochdale’s order management system in the amount of 125,000 shares. After Apple announced its earnings later that day, the stock price began dropping, and it became clear that the trade would not be profitable. When confronted, Miller falsely claimed that he had made a mistake in ordering many multiples of what was written in a client’s order.
As a result of this scheme, Rochdale was left holding approximately 1,623,375 shares of Apple. It promptly traded out of the position but suffered a loss $5,292,202.50.
While he was executing the scheme at Rochdale, Miller also defrauded another broker-dealer into taking on a significant short position in Apple stock. Through a series of misrepresentations made over the course of several weeks, Miller convinced the broker-dealer to sell 500,000 shares of Apple stock, falsely claiming that he was trading for the account of a company, which he had no relationship with and for which he was not authorized to trade. Miller engaged in this part of the scheme to hedge against the large purchase of Apple stock he was executing at Rochdale. As a result of the scheme, Miller placed the broker-dealer at risk of sustaining substantial losses. In the end, the broker was able to trade out of the position at a profit.
Miller pleaded guilty to one count of conspiracy to commit wire fraud and securities fraud and one count of wire fraud. He is scheduled to be sentenced by United States District Judge Robert N. Chatigny on July 8, 2013, at which time Miller faces a maximum term of imprisonment of 25 years.
Miller has been released on a $300,000 bond since his arrest on December 4, 2012.
This matter is being investigated by the Federal Bureau of Investigation.
U.S. Attorney Fein acknowledged the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for their substantial assistance and cooperation during the investigation.
The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
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.

Two Participants in Illegal Campaign Contribution Scheme Plead Guilty

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, announced that two individuals pleaded guilty today in New Haven federal court to conspiracy charges stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. Joshua Nassi, 34, of Fairfield, and Benjamin Hogan, 33, of Southington, each pleaded guilty before United States District Judge Janet Bond Arterton to one count of conspiracy to make false statements to the Federal Election Commission and to impede the FEC’s enforcement of federal campaign finance laws.
“With today’s guilty pleas, six individuals have now acknowledged their involvement in a scheme to disguise the source of contributions to a federal campaign, contributions that were given to influence legislation pending before the Connecticut General Assembly,” stated U.S. Attorney Fein. “The Department of Justice is committed to prosecuting those who corrupt our system of government, our campaign finance laws, and the electoral process.”
“Today’s guilty pleas serve as a reminder that there are consequences for those who undermine the integrity of the legislative process by engaging in a concealed pay-to-play system,” stated FBI Special Agent in Charge Mertz. “The public interest was not being served. The only interests being served were those of the defendants who put their own interests above all. This investigation demonstrates the FBI’s commitment to the investigation of corruption at all levels of government.”
According to court documents and statements made in court, in August 2011, the state of Connecticut applied for a court order enjoining Roll Your Own (RYO) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, Hogan, Paul Rogers, Harry Raymond “Ray” Soucy, David Moffa, and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The candidate was also a member of the Connecticut General Assembly. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and Rogers, Hogan, and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
At the time, Nassi was the campaign manager for the campaign of the candidate for the U.S. House of Representatives, and Hogan was an employee of Smoke House Tobacco, an RYO smoke shop with two locations in Waterbury that was co-owned by Rogers. Soucy had a pre-existing relationship with Nassi and the member of the General Assembly who was running for Congress.
In November and December 2011, Hogan, Rogers, Soucy, Moffa, and others made four $2,500 conduit contributions to the campaign. Hogan was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the campaign committee submitted to the Federal Election Commission (FEC) a report of the campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
On April 3, 2012, Soucy contacted Nassi and told him that RYO owners wanted to provide additional contributions to the campaign. That same day, the Connecticut General Assembly’s Joint Committee on Finance, Revenue, and Bonding voted in favor of Senate Bill 357, legislation that would have deemed RYO smoke shop owners to be tobacco manufacturers under Connecticut law, a designation that would have subjected RYO smoke shop owners to a substantial licensing fee and tax increase. Later that day, Soucy contacted Nassi again to state his displeasure with the vote.
Approximately one week later, Soucy, Rogers, and an FBI special agent working in an undercover capacity delivered four $2,500 checks in the names of conduit contributors to Nassi. On April 23, 2012, Nassi advised Soucy that one of the checks had bounced, and Soucy indicated that the contributor had been given cash to deposit. Nassi stated that the campaign needed the check by midnight the following day, and Soucy delivered a replacement check by that deadline. On May 2, 2012, the campaign submitted a fundraising report to the FEC stating that the four contributions given in April were from the conduit contributors when, in fact, they were not.
Over the next two weeks, Nassi continued to advise Soucy on the status of the RYO legislation, and Soucy told Nassi that he would be delivering $10,000 if the legislation died. On May 9, 2012, the legislative session ended and the legislation had not been called for a vote by either chamber of the General Assembly.
On May 14, 2012, Soucy, Rogers, and Hogan met at Smoke House Tobacco where Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Prior to the meeting, Hogan had approached Waterbury business owner Daniel Monteiro and an employee of Monteiro’s and asked them to serve as conduit contributors. Monteiro subsequently wrote a $2,500 check to the campaign, and his employee obtained a bank check in the amount of $2,500. Both were assured that they would be reimbursed. These two checks, and another $2,500 bank check drawn on Hogan’s own account but not in his name, were given to Soucy at the meeting. Also, at Nassi’s request, Rogers gave Soucy a fourth $2,500 check from a conduit contributor that was payable to a political party. Soucy then delivered the four checks to Nassi at a political event.
On May 16, 2012, after Soucy informed the campaign that one of the contributions had been made in the name of an RYO shop owner and should not be deposited, Soucy met Nassi and provided him with a replacement $2,500 check in the name of someone who was not affiliated with any RYO shops.
Hogan and Nassi are scheduled to be sentenced on July 9 and July 16, 2013, respectively. Both face a maximum term of imprisonment of five years and a fine of up to $250,000.
Rogers, Soucy, Moffa, and Monteiro have also pleaded guilty to charges related to this scheme and await sentencing.
As to the two other individuals who have been charged as a result of this investigation, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.

Federal Grand Jury Returns Indictment Charging Conspiracy, Murder-for-Hire, Causing Death Through the Use of a Firearm, and Conspiracy to Use Firearms

Nemessis Bates, a/k/a “Nemesis Bates,” a/k/a “Nemo,” 34 years of age, and Aaron Smith, a/k/a “Beadie, a/k/a “Beedie,” 27 years of age, both of the New Orleans area, were charged in a four-count indictment by a federal grand Jury on Thursday, April 4, 2013. The indictment was unsealed today as Bates was taken into custody by federal agents, and Smith is already incarcerated in Orleans Parish Prison.
The indictment charges Bates, Smith, and others known and unknown to the grand jury with the November 21, 2010 murder of Christopher Smith.
Count one charges Bates with solicitation to commit a crime of violence, in violation of 18 U.S.C. § 373. If convicted, Bates shall be imprisoned not more than one-half the maximum term of imprisonment or fined not more than one-half of the maximum fine prescribed for the punishment of the crime solicited or both; or, if the crime solicited is punishable by life imprisonment or death, shall be imprisoned for not more than 20 years.
Count two charges Bates and Smith with the use of interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. § 1958(a). If convicted, Bates and Smith shall be punished by death or life imprisonment or shall be fined not more than $250,000 or both.
Count three charges Bates and Smith with causing the death of Christopher Smith through the use and carrying of a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(j)(1). If convicted, Bates and Smith shall be punished by death or by imprisonment for any term of years or for life.
Count four charges Bates and Smith with conspiracy to possess firearms during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(o). If convicted, Bates and Smith shall be imprisoned for not more than 20 years, fined under Title 18, or both.
U.S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This indictment is the culmination of a federal grand jury investigation that was conducted with the assistance of the Federal Bureau of Investigation (FBI), the Jefferson Parish Sheriff’s Office, and the United States Attorney’s Office for the Eastern District of Louisiana. This case is being prosecuted by Assistant United States Attorneys Greg Kennedy and Liz Privitera.