Former Bank Worker Charged with Stealing and Concealing More Than $1.8 Million from Employer

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

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

According to the criminal complaint:

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

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

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

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

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

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

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

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

Defense counsel:

Chester Keller Esq., First Assistant Federal Public Defender, Newark

Member of Commerce City Council Pleads Guilty to Conspiracy to Obstruct Investigation into Campaign Reimbursement Scheme

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

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

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

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

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

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

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

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

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

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

This case was investigated by the Federal Bureau of Investigation.

Luzerne County Man Sentenced After Tampering with Consumer Products

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

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

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

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

Bartorillo pleaded guilty in November 2011.

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

New York Man Pleads Guilty to Stealing Valuable Historical Documents

Original Documents of Abraham Lincoln, George Washington, John Adams, Franklin Roosevelt, and Others Stolen from Historical Societies and Museums

BALTIMORE—Barry H. Landau, 63, of New York, N.Y., pleaded guilty today to conspiracy and theft of historical documents from museums in Maryland, Pennsylvania, New York, and Connecticut and selling selected documents for profit.

The guilty plea was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the FBI; Inspector General Paul Brachfeld of the National Archives and Records Administration-Office of Inspector General; Baltimore Police Commissioner Frederick H. Bealefeld III; and Baltimore City State’s Attorney Gregg L. Bernstein.

According to his plea agreement, from December 2010 through July 2011, Landau and his co-conspirator, Jason Savedoff, stole and otherwise fraudulently obtained valuable documents and manuscripts from numerous museums, including the Maryland Historical Society, the Historical Society of Pennsylvania, the Connecticut Historical Society, the University of Vermont, the New York Historical Society and the Franklin D. Roosevelt Presidential Library, a component of the National Archives. Landau and Savedoff targeted the document and manuscript collections at these museums based on the content of the collections or the potential monetary value of the contents.

Landau admitted that he and Savedoff prepared lists containing the names of historical figures and other noteworthy individuals and made notations referencing the value of signatures and documents authored or signed by the listed individuals. Landau and Savedoff conducted research, including on the Internet, to identify collections containing valuable documents, which, when located, were targeted for theft. Landau also used e-mail to identify for Savedoff the titles and locations of collections that contained document that were ultimately stolen during the course of the conspiracy. Savedoff used aliases when he visited certain libraries to protect the ongoing criminal scheme.

According to Landau’s plea, Landau and Savedoff visited numerous museums posing as researchers, accessed collections of documents which they had determined to be of significant value, reviewed the documents from the collections and used various techniques to steal documents. These techniques included concealing documents inside sports coats and other outerwear, which had been modified to contain hidden pockets, as well as distracting museum curators to disguise their actions. Once a document had been stolen, steps were taken to remove any marking or inventory control notations made on the document. A checklist was prepared for each stolen document which identified the author and date of the document, the collection from which it was stolen, whether the museum card catalogue had been collected, whether there existed any microfilm or other “finding aid” for the document at the museum, the nature of any markings on the document and whether any museum markings had been removed from the document. In an effort to conceal the theft, Landau and Savedoff often took the card catalogue entries and other “finding aids,” making it difficult for the museum to discover that an item was missing. Documents that had been copied on microfilm were often avoided because of the increased possibility the theft would be discovered by the library or repository.

Specifically, according to Landau’s plea, Landau and Savedoff visited the Franklin D. Roosevelt Presidential Library and Museum in Hyde Park, N.Y., on Dec. 2, 2010. Landau and Savedoff stole from the library, among other things, seven reading copies of speeches delivered by President Roosevelt. Reading copies are the actual copies of the speeches from which President Roosevelt read and contain edits and handwritten additions made by him and bear his signature. Four reading copies of speeches were sold by Landau on Dec. 20, 2010, to a collector for $35,000. Three other reading copies were the inaugural addresses delivered by President Roosevelt on Jan. 20, 1937; Jan. 20, 1941; and Jan. 20, 1945, which are valued at more than $100,000 each, were recovered from Landau’s apartment in New York City during court-authorized searches.

On March 17, 2011, Landau and Savedoff visited the New York Historical Society in New York City, and removed several valuable documents, all more than 100 years old and worth in excess of $5,000. One document was a letter dated April 1, 1780, from Benjamin Franklin, then in Versailles, France, to John Paul Jones in reference to the delivery of quantities of gunpowder from the French to the U.S. Navy. This letter is valued in the hundreds of thousands of dollars. Other documents stolen by Landau and Savedoff from the New York Historical Society include letters and documents authored by John Jay, Alexander Hamilton, and President George Washington.

On July 9, 2011, Landau and Savedoff visited the Maryland Historical Society, where Landau had provided the curators with a list of collections he wished to review in advance, stating that he was performing research for a book. Landau also provided the list to curators when he arrived at the museum. Landau and Savedoff accessed the various document and manuscript collections. Curators became suspicious of the pair and were concerned that documents were being stolen. The curators summoned the police, who discovered that 79 documents had been secreted inside a computer bag located in one of the museum lockers to which Savedoff had the key. A review of the documents by curators revealed that 60 documents had been removed from the collections of the Maryland Historical Society, including a land grant dated June 1, 1861, to John Lorn, Private Captain, Hannberts Company, Maryland Militia, War of 1812, signed by President Abraham Lincoln, which has a value well in excess of $100,000. The remaining 19 documents contained markings that identified them as being from collections maintained at the Connecticut Historical Society and other institutions.

On July 12, 2011, a search was conducted at Landau’s residence in New York City. A second search was conducted on Aug. 2, 2011. More than 10,000 documents and objects of cultural heritage were recovered during the search. To date, more than 4,000 of these items have been traced as being stolen from libraries and repositories throughout the United States, include documents signed by George Washington, John Adams, Franklin Roosevelt, Marie Antoinette, Napoleon Bonaparte, Karl Marx, Sir Isaac Newton and others.

Jason James Savedoff, aka “Jason James” and “Justin Ward,” 24, of New York, N.Y., previously pleaded guilty to the same charges. No date has been set for his sentencing.

Landau and Savedoff face a maximum sentence of five years in prison for the conspiracy and 10 years in prison for theft of the documents. U.S. District Judge Catherine C. Blake has scheduled sentencing for Landau on May 7, 2012, at 10:00 a.m.

U.S. Attorney Rosenstein praised the FBI, Baltimore Police Department, National Archives and Records Administration-Office of Inspector General, and the Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and P. Michael Cunningham, who are prosecuting the case.

Border Patrol Seizes $1.8 Million in Narcotics

Tucson, AZ. – During multiple weekend seizures, Tucson Sector Border Patrol agents seized 3,572 pounds of marijuana and 5.15 pounds of black-tar heroin with a combined value of approximately $1.8 million.

Ajo Station agents using mobile surveillance equipment detected a suspicious vehicle in the west desert Friday. During a search of the area, agents located an abandoned GMC Yukon containing approximately 1,845 pounds of marijuana worth about $922,500. Agents transported the pot to the Ajo station for processing. The vehicle had been reported stolen and was turned over to the Tohono O’odham Police Department.

Also on Friday, a Nogales Station canine unit working at the Interstate 19 checkpoint alerted to a shuttle van. The vehicle was referred to secondary inspection where the canine located a bag containing eight small bundles of black-tar heroin weighing 5.15 pounds and worth approximately $73,600. The drugs were transported to the Nogales Station for processing.

Early Saturday, Ajo agents training with the All-Terrain Unit responded to suspicious activity in the west desert. Agents searched the area and located 15 bundles of marijuana weighing about 781 pounds and worth $390,500. Eight people were arrested in connection with the marijuana. The marijuana and subjects were transported to the Ajo Station for processing. The subjects face federal charges.

In another incident Saturday, agents from the Sonoita Border Patrol Station responded to illegal activity west of Sonoita and arrested three Mexican nationals transporting 247 pounds of marijuana. The subjects and marijuana, valued at $123,500, were transported to the Sonoita Station for processing. The subjects may face federal charges.

Early Sunday, Ajo agents discovered two abandoned all-terrain vehicles loaded with 31 bundles of marijuana weighing approximately 699 pounds and valued at $349,500. The vehicles and marijuana were discovered with assistance from a CBP Air and Marine helicopter crew.

The experience and dedication of Border Patrol agents continue to be invaluable tools in fighting transnational criminal organizations. Vigilance displayed by Border Patrol agents remains an obstacle for drug traffickers attempting to operate within the Tucson Sector.

Customs and Border Protection welcomes assistance from the community. Citizens can report suspicious activity to the Border Patrol and remain anonymous by calling (877)-872-7435 toll free.

All CBP assets in Arizona were realigned under a unified command structure in February 2011. Joint Field Command – Arizona unifies the Tucson and Yuma Border Patrol Sectors and Air Branches, as well as the Tucson Field Office, to enhance border security, commercial enforcement and trade facilitation missions to meet Arizona’s unique challenges. Follow us on Twitter @CBPArizona or visit the attaached website for more information.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with management, control and protection of our nation's borders at and between official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Atlanta Man Sentenced for Operating Ponzi Scheme

Vaughn Received Over $10 Million from Victims

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

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

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

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

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

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

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

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

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

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

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

Los Angeles Man Sentenced to 77 Months in Prison for Medicare Fraud Scheme Resulting in More Than $18.9 Million in Fraudulent Claims to Medicare

WASHINGTON—A Los Angeles-area man was sentenced yesterday to 77 months in prison for organizing and leading a medical clinic fraud scheme that used the stolen identities of physicians to submit more than $18.9 million in fraudulent claims to Medicare, the Department of Justice, the FBI and the Department of Health and Human Services (HHS) announced.

Eduard Aslanyan, 38, of Sherman Oaks, Calif., was sentenced by U.S. District Judge Consuelo B. Marshall in the Central District of California. In addition to his prison term, Aslanyan was sentenced to three years of supervised release and was ordered to pay $10.8 million in restitution.

Aslanyan pleaded guilty in April 2011. He admitted that between March 2007 and September 2008, he established a series of fraudulent medical clinics in and around Los Angeles to defraud Medicare. Carolyn Vasquez, who previously pleaded guilty to conspiring with Aslanyan to defraud Medicare, recruited physicians to serve as the medical directors of Aslanyan’s fraudulent medical clinics. The physicians did not perform services at the clinics and were rarely present at the clinics. Physician assistants were hired by Aslanyan and Vasquez and were complicit in the fraud scheme at the clinics.

According to court documents, Aslanyan hired patient recruiters to find Medicare beneficiaries who were willing to provide the recruiters with their Medicare billing information in exchange for expensive, high-end power wheelchairs and other medical equipment which the patient recruiters told the beneficiaries they could receive for free. Often, the Medicare beneficiaries did not have a legitimate medical need for the power wheelchairs and equipment. The patient recruiters then provided the beneficiaries’ Medicare billing information to Aslanyan or brought the beneficiaries to Aslanyan’s clinics. Aslanyan paid the patient recruiters cash kickbacks in exchange for recruiting the Medicare beneficiaries.

In court documents, Aslanyan admitted that he and Vasquez instructed and paid physician assistants who worked at his clinics to prescribe medically unnecessary power wheelchairs, medical equipment and diagnostic tests for the Medicare beneficiaries. The physician assistants used stolen identities of physicians who did not supervise them or work at the clinics.

According to court documents, Aslanyan profited from the scheme at his fraudulent medical clinics in several ways. Aslanyan admitted that he allowed fraudulent diagnostic testing facilities to use the Medicare billing information he purchased from patient recruiters to submit false claims to Medicare for tests ordered at the clinics. In exchange, the fraudulent diagnostic testing facilities paid Aslanyan cash kickbacks that were disguised as rent payments to Aslanyan.

Aslanyan also profited from the scheme by selling fraudulent prescriptions and documents generated at his clinics to the owners and operators of fraudulent durable medical equipment (DME) supply companies, which used the prescriptions and documents to submit false claims to Medicare. Aslanyan also used the fraudulent prescriptions and documents to submit false claims to Medicare through his own fraudulent DME supply companies, Vila Medical Supply Inc. and Blanc Medical Supplies.

According to court documents, as a result of Aslanyan’s conduct, he and his co-conspirators submitted approximately $18.9 million in fraudulent claims to Medicare.

Currently, Aslanyan is serving a three-year state sentence for assault. On Jan. 9, 2012, Judge Marshall sentenced Vasquez to 60 months in prison for her role in the fraud scheme and ordered her to pay more than $6.2 million in restitution to Medicare. A second co-defendant, David James Garrison, a physician assistant who worked at the fraudulent medical clinics with Vasquez and Aslanyan, is scheduled for trial on Feb. 7, 2012. Defendants are presumed innocent until proven guilty at trial.

The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. for the Central District of California; Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the HHS Office of Inspector General (HHS-OIG); Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office; and Tony Sidley, Assistant Chief of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.

The case is being prosecuted by Trial Attorney Jonathan T. Baum of the Criminal Division’s Fraud Section. Former Special Trial Attorney Joseph Hudzik participated in the prosecution. The case is being investigated by the FBI. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.

Since their inception in March 2007, strike force operations in nine districts have charged more than 1,160 defendants who collectively have falsely billed the Medicare program for more than $2.9 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention & Enforcement Action Team, go to: Stopmedicarefraud.gov.

Fort Lauderdale Man Charged in Wilton Manors Bank Robbery

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Paul O’Connell, Chief, Wilton Manors Police Department, announced that defendant Cedrick Shivers, 47, of Fort Lauderdale, Florida, was arrested and charged with bank robbery.

More specifically, Shivers was charged in a criminal complaint with bank robbery, in violation of Title 18, United States Code, Section 2113(a). If convicted, Shivers faces maximum statutory term of imprisonment of up to 20 years. The defendant made his initial appearance in federal court yesterday and a pre-trial detention hearing is scheduled for Friday, February 10, 2012 before U.S. Magistrate Judge Robin S. Rosenbaum in Fort Lauderdale.

According to the affidavit filed in support of the criminal complaint, on February 3, 2012, Shivers entered a bank in Wilton Manors. Shivers approached the teller and presented a hand-written bank robbery demand note, instructing the teller not to active any silent alarms and not to provide him with any dye packs. Shivers’ note also instructed the teller to give him only certain denominations and threatened to bomb the building if the teller did not comply.

After fleeing the bank with the money, a Wilton Manors police officer stopped Shivers for speeding. During the stop, the officer saw red smoke in the passenger compartment of Shivers’ car, red dye-stained money on the front driver’s seat, and red dye stains on Shivers’ white t-shirt. Shivers was then arrested. After his arrest, Shivers said to the police officers, “You got me red handed,” a reference to the residual red dye on his hands.

Mr. Ferrer commended the investigative efforts of the FBI and Wilton Manors Police Department. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.

A complaint is only an accusation, and a defendant is presumed innocent unless and until proven guilty.

Tampa Woman Arrested for Tax Fraud and Identity Theft

TAMPA, FL—United States Attorney Robert E. O’Neill announces the indictment and arrest of Belinda Brooks (46, Tampa) for tax fraud related activities. Brooks has been charged in a 17-count indictment. The charges include one count of filing a false tax return, six counts of theft of government property in the form of tax refunds, six counts of aggravated identity theft, three counts of making false claims in the form of fraudulent tax returns, and three counts of identity theft. The maximum federal prison sentence for each of the counts is as follows: 10 years for theft of government property, two years consecutive to any other sentence for aggravated identity theft, five years for making a false claim, and 15 years for identity theft. The indictment also notifies Brooks that the United States intends to forfeit any assets, including money, which are alleged to be traceable to proceeds of the offenses.

The indictment alleges that in addition to filing her own false tax return, Brooks stole the names and Social Security numbers of other individuals in order to file fraudulent tax returns in their names and obtain tax refunds for the tax years 2008 and 2009.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

This case is part of Operation Rainmaker, a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida and various federal and local law enforcement agencies, including the U.S. Secret Service, IRS, United States Postal Inspection Service, the Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff’s Department to combat the filing of false tax returns in the Tampa Bay region.

Special agents and officers seize more than $4.8 million in fake NFL merchandise and seize 307 websites during 'Operation Fake Sweep'

Updated results of Operation Fake Sweep:

•           Operation Fake Sweep resulted in the seizure of 50,703 items of phony Super Bowl-related memorabilia along with other counterfeit items for a total take of $5.12 million.

•           An additional 22,570 items of counterfeit merchandise and clothing representing other sports leagues, including Major League Baseball, National Basketball Association and National Hockey League were seized by law enforcement.
•           In total, this operation netted 73,273 counterfeit items worth $6.69 million.
•           Furthering HSI efforts to combat counterfeiting and piracy online, special agents seized a total of 386 websites.
o          Sixteen of the sites illegally streamed live sporting telecasts over the Internet, including NFL games.
o          Three hundred seventy website domain names were illegally selling and distributing counterfeit merchandise.
o          Since the launch of Operation In Our Sites in June 2010, the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) has seized a total of 748 domain names.

Original news release:

Michigan man also arrested for criminal copyright infringement, operated websites that distributed copyrighted sporting events

INDIANAPOLIS — Speaking at a National Football League (NFL) news conference on Thursday, U.S. Immigration and Customs Enforcement (ICE) Director John Morton, U.S. Customs and Border Protection (CBP) Director of Field Operations in Chicago David Murphy and NFL Vice President for Legal Affairs Anastasia Danias announced the record-breaking results of a nationwide enforcement operation targeting stores, flea markets and street vendors selling counterfeit game-related sportswear throughout the country. Special agents and officers also targeted illegal counterfeit imports into the United States, and seized hundreds of websites engaged in counterfeiting and piracy online. The initiative, dubbed Operation Fake Sweep, commenced Oct. 1, 2011.

Fake jerseys, ball caps, t-shirts, jackets and other souvenirs are among the counterfeit merchandise and clothing confiscated by teams comprised of: ICE's Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), U.S. Postal Inspection Service (USPIS), Indianapolis Metropolitan Police Department and the Indiana State Police – all in partnership with the NFL.

'Hard goods' seizures

Special agents from HSI and officers with CBP operated in multiple teams with the NFL and various law enforcement agencies throughout the nation to identify illegal shipments imported into the U.S., as well as stores and vendors selling counterfeit trademarked items. With three days left before Super Bowl XLVI, these teams have already seized 42,692 items of phony Super Bowl-related memorabilia along with other counterfeit items to date for a total take of more than $4.8 million – up from $3.72 million last year.

During this operation, an additional 22,570 items of counterfeit merchandise and clothing representing other sports leagues, including Major League Baseball, National Basketball Association and National Hockey League were seized by law enforcement. In total, this operation netted 65,262 counterfeit items worth $6.4 million.

"While most people are focusing on whether the Patriots or Giants will win on Sunday, we at ICE have our sights on a different type of victory: defeating the international counterfeiting rings that illegally profit off of this event, the NFL, its players and sports fans," said ICE Director Morton. "In sports, players must abide by rules of the game, and in life, individuals must follow the laws of the land. Our message is simple: abiding by intellectual property rights laws is not optional; it's the law."

"The NFL is committed to protecting fans and local businesses from being victimized by counterfeiters who are looking to profit illegally off of the public's enthusiasm for the NFL," said NFL Vice President Danias. "We are grateful for Homeland Security Investigations' tireless efforts in combating intellectual property theft and are pleased to be working along with them and the Indianapolis Metropolitan Police Department on this important issue."

Website seizures

Furthering HSI efforts to combat counterfeiting and piracy online, special agents seized a total of 307 websites. Sixteen of the sites illegally streamed live sporting telecasts over the Internet, including NFL games. Two hundred ninety-one website domain names were illegally selling and distributing counterfeit merchandise.

Additionally, Yonjo Quiroa, 28, of Comstock Park, Mich., was arrested Wednesday by special agents with HSI. He is charged with one count of criminal infringement of a copyright related to his operation of websites that illegally streamed live sporting event telecasts and pay-per-view events over the Internet. Quiroa operated nine of the 16 streaming websites that were seized, and he operated them from his home in Michigan until yesterday's arrest.

The website seizures during Operation Fake Sweep represent the 10th phase of Operation In Our Sites, a sustained law enforcement initiative targeting counterfeiting and piracy on the Internet. The 307 websites have been seized by law enforcement and are now in the custody of the federal government. Visitors to these websites will then find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them that willful copyright infringement is a federal crime.

American business is threatened by those who pirate copyrighted material and produce counterfeit trademarked goods. Criminals are attempting to steal American ideas and products and sell them over the Internet, in flea markets, in legitimate retail outlets and elsewhere. Intellectual property (IP) thieves undermine the U.S. economy and jeopardize public safety. American jobs are being lost, American innovation is being diluted - and organized criminal enterprises are profiting from their increasing involvement in IP theft.

Since the launch of Operation In Our Sites in June 2010, the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) has seized a total of 669 domain names.

Operation Fake Sweep continues

Operation Fake Sweep will continue this weekend at Super Bowl events and venues throughout the Indianapolis-area and around the nation.

HSI, CBP, USPIS and other law enforcement agencies partnered with the HSI-led IPR Center to combat intellectual property theft, including the illegal use of registered trademarks, trade names and copyrights of NFL Super Bowl XLVI merchandise. The IPR Center is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

The operation was spearheaded by the IPR Center in coordination with the Department of Justice's Computer Crime & Intellectual Property Section (CCIPS) and seven U.S. Attorneys' Offices, including: District of Colorado, District of Maryland, District of Minnesota, Western District of Michigan, Southern District of New York, Southern District of Texas and Western District of Texas.

To report IP theft or to learn more about the IPR Center, visit IPRCenter.gov.

Louisiana Patient Recruiter Pleads Guilty in Health Care Fraud Scheme

WASHINGTON—A Baton Rouge area-resident pleaded guilty today for his role in a Medicare fraud scheme involving false claims for unnecessary durable medical equipment (DME), announced the Department of Justice, the FBI, the Department of Health and Human Services (HHS) and the Louisiana State Attorney General’s Office.

Rodney D. Taylor, 45, pleaded guilty before U.S. District Judge James J. Brady of the Middle District of Louisiana to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and to pay and receive health care kickbacks.

According to court documents, Taylor worked as a recruiter for Healthcare 1 LLC, Medical 1 Patient Services LLC and Lifeline Healthcare Services Inc., Louisiana-based companies that fraudulently billed DME to the Medicare program from 2004 to 2009. He and other recruiters were hired to obtain prescriptions for DME such as leg braces, arm braces, power wheel chairs and wheel chair accessories. Taylor obtained information from Medicare beneficiaries as well as prescriptions for medical equipment from the beneficiaries’ physicians. Taylor then sold these prescriptions so they could be used by Healthcare 1, Medical 1 Patient Services and Lifeline Healthcare Services to submit fraudulent claims to the Medicare program.

The indictment alleges that from 2004 to 2009 Medicare was billed more than $21 million as part of this conspiracy.

Taylor faces a maximum penalty of 15 years in prison and a $500,000 fine. A sentencing date has not yet been set.

Today’s plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Donald J. Cazayoux Jr. of the Middle District of Louisiana; Mike Fields, Special Agent in Charge of the Dallas Region for the HHS Office of the Inspector General (HHS-OIG); David Welker, Special Agent in Charge of the FBI’s New Orleans Division; and Louisiana State Attorney General James Buddy Caldwell.

The case is being prosecuted by Trial Attorneys David Maria and Abigail Taylor and Assistant Chief William Pericak of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.

Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,160 defendants that collectively have billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Stopmedicarefraud.gov.

Counterfeit Perfume Seizures Total $51 Million

Washington—U.S. Customs and Border Protection (CBP) seized imports of counterfeit perfume valued at nearly $51 million during fiscal year 2011.

Counterfeit perfumes are a form of theft from the brand owner, and protecting American intellectual property is a priority for CBP. In addition to the economic harm, counterfeit perfumes are also often contaminated with unknown chemicals that can cause serious injury.

The fake perfume that CBP most frequently intercepted was counterfeit “Sex in the City” perfume, which is related to the highly popular HBO movie and television series. CBP has been working with the right holder to crack down on these illegal imports.

In fiscal year 2011, CBP’s Intellectual Property Rights (IPR) National Targeting and Analysis Group (NTAG) in Los Angeles targeted 138 commercial shipments of perfumes for possible trademark infringement. These shipments were examined and 52 were seized for infringing a trademark, including the “Sex in the City” trademark. The domestic value of the seized shipments, which contained more than one million pieces, was nearly $8 million. If the trademark had been genuine, the manufacturer’s suggested retail price of the perfume would have been more than $45 million.

The IPR-NTAG provides a national strategic perspective on trade through risk analysis and multi-disciplined trade strategies; develops and applies risk management techniques to support trade security and trade compliance; supports national trade strategies and field enforcement operations; and monitors the effectiveness of trade criteria and the targeting process.

In the past year, the IPR-NTAG uncovered more than 30 entities involved in the importation of counterfeit perfume,

U.S. ports of entry and the IPR-NTAG continue to target for counterfeit perfumes and to work with Immigration and Customs Enforcement investigators to assist in enforcement actions and develop criminal cases. CBP also works closely with right holders in intellectual property rights enforcement.

In fiscal year 2011, 24,792 seizures of counterfeit and pirated goods with a total domestic value of $178.9 million and a manufacturer’s suggested retail price of $1.1 billion were intercepted before entering the United States.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Albuquerque Top Stories: InfraGard Conference

InfraGard New Mexico Conference on “Identity in the 21st Century”

RSA, a company whose computer security products are used by many government agencies, corporations, banks, and other customers, suffered what it called “an extremely sophisticated cyber attack” last year.

What was this “Advanced Persistent Threat” all about, and are there any best practices that companies can use to prepare for and fight similar attacks?

This timely and important presentation will be among several offered in Albuquerque during a February 24 conference called “Identity in the 21st Century.”

The conference is organized by InfraGard New Mexico, an information-sharing partnership between the FBI and the private sector.

The event is open to the public and will be held from 7:30 a.m. to 3:30 p.m. at the UNM Science and Technology Park, Rotunda Conference Room, 851 University Blvd SE.

Registration and further information are available at http://nminfraconf.eventbrite.com.

The deadline to register is February 22.

Speakers include:

■Carol K.O. Lee, Special Agent in Charge, FBI Albuquerque Division.

■Gerard Gagliano, an identity specialist whose knowledge of trust, identities, and access has made him a prominent presence in the formation of the White House’s National Strategy for Trusted Identities in Cyberspace steering group and in other conferences and organizations.
■Mark Ruggiero, a special agent for the U.S. Secret Service for 12 years, has worked many cases involving counterfeiters, identity theft, fraudulent checks and credit cards, and other financial crimes. His presentation is titled, “Fraudulent Checks, Credit Cards, and Identifications.”
■Todd Wingler, a senior security consultant for Verizon, will discuss the smart phone industries’ efforts to secure customers’ personal information and secure the use of mobile applications.

InfraGard is an association of businesses, academic institutions, state and local law enforcement agencies, and other participants dedicated to sharing information and intelligence to prevent hostile acts against the United States.

Media desiring interviews with an InfraGard New Mexico representative or to arrange coverage of the conference should contact FBI spokesman Frank Fisher, 505-889-1438.

Put a Freeze on Winter Fires: Electrical Fire Safety

Electrical Fire Safety

Electrical fires in our homes claim the lives of 280 Americans each year. Many of these fires are caused by incorrectly installed wiring and overloaded circuits and extension cords.

Winter fires can be prevented! The following electrical fire safety tips can help you maintain a fire-safe home this winter season.

•           Routinely check your electrical appliances and wiring.

•           Frayed wires can cause fires. Replace all worn, old or damaged appliance cords immediately.
•           Replace any electrical tool if it causes even small electrical shocks, overheats, shorts out, or gives off smoke or sparks.
•           Keep electrical appliances away from wet floors and counters; pay special care to electrical appliances in the bathroom and kitchen.
•           Buy electrical products evaluated by a nationally recognized laboratory, like UL.
•           Keep clothes, curtains, and other potentially combustible items at least three feet from all heaters.
•           If an appliance has a three-prong plug, use it only in a three-slot outlet. Never force it to fit into a two-slot outlet or extension cord.
•           Don't allow children to play with or around electrical appliances like space heaters, irons, and hair dryers.
•           Use safety closures to "child-proof" electrical outlets.
•           Use electrical extension cords wisely; never overload extension cords or wall sockets.
•           Immediately shut off, then professionally replace, light switches that are hot to the touch and lights that flicker.

For more information on electrical fire safety, visit the U.S. Fire Administration's website.

ICE announces creation of Public Advocate position

WASHINGTON — As part of the agency's ongoing detention reform initiative and other enforcement-related initiatives, U.S. Immigration and Customs Enforcement (ICE) today announced its first Public Advocate, ICE Senior Advisor Andrew Lorenzen-Strait. Lorenzen-Strait will serve as a point of contact for individuals, including those in immigration proceedings, NGOs and other community and advocacy groups, who have concerns, questions, recommendations or other issues they would like to raise.

"As our first Public Advocate, Andrew Lorenzen-Strait will work to expand and enhance our dialogue with the stakeholder community," said ICE Director John Morton. "We want the public to know that they have a representative at this agency whose sole duty is to ensure their voice is heard and their interests are recognized, and I'm confident Andrew will serve the community well in this capacity."

Lorenzen-Strait has served with ICE since 2008, first as an advisor and analyst on policies related to immigration enforcement, detention and juveniles and most recently, as the senior advisor for Enforcement and Removal Operation's (ERO) detention management division. In 2007, Lorenzen-Strait was named the Maryland Attorney of the Year for Pro Bono Service for his work with Community Legal Services of Prince George's County.

In his new role as public advocate, Lorenzen-Strait will report directly to the Office of Enforcement and Removal Operations (ERO) Director Gary Mead and will be responsible for:

•           Assisting individuals and community stakeholders in addressing and resolving complaints and concerns in accordance with agency policies and operations, particularly concerns related to ICE enforcement actions involving U.S. citizens;

•           Informing stakeholders on ERO policies, programs, and initiatives and enhance understanding of ERO's mission and core values;
•           Engaging stakeholders and building partnerships to facilitate communication, foster collaboration, and solicit input on immigration enforcement initiatives and operations; and
•           Advising ICE leadership on stakeholder findings, concerns, recommendations, and priorities as they relate to improving immigration enforcement efforts and activities.

The creation of the Public Advocate position is another milestone is ICE's ongoing work to enact significant policy changes and improvements to focus the agency's immigration enforcement resources on sensible priorities that promote public safety, border security and the integrity of the immigration system. In addition to implementing policies and processes that ensure discretion is used in deciding the types of individuals ICE prioritizes for removal from the country, the agency has also embarked upon a long-term detention reform initiative. These reform efforts are focused on prioritizing the health and safety of detainees in our custody while increasing federal oversight and improving the conditions of confinement within the detention system.

ICE will continue to analyze its policies and the results of its programs, making improvements where necessary to meet our priorities.

Brownsville Mother and Daughter-in-Law Guilty in Health Care Fraud Scheme

McALLEN, TX—Felicitas Velez Alanis, 51, and her daughter-in-law, Erika Ortega Alanis, 27, both of Brownsville, Texas, have entered pleas of guilty to conspiracy to commit health care fraud, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.

Felicitas Alanis owned and operated Vel-Ala Inc.—a Texas corporation which did business as Nisi Medical Equipment and Supplies in and around Brownsville, Harlingen and elsewhere in South Texas. Her daughter-in-law, Erika Alanis, assisted in the day-to-day operation of the company. Nisi Medical Equipment and Supplies was enrolled with the Texas Medicaid program to provide durable medical equipment (DME) to Texas Medicaid beneficiaries. The term DME means medical equipment and supplies used in the home and includes blood-testing strips, blood glucose monitors, alcohol wipes, diabetic supplies, and other medically necessary items.

The government alleged that the two women submitted more than $646,000 in false and fraudulent bills to the Texas Medicaid program for diabetic supplies which Nisi Medical Equipment and Supplies never purchased or supplied to Medicaid beneficiaries. The delivery records and billing records of Nisi show that the Texas Medicaid program was routinely billed for more items than were actually delivered and the purchase records revealed that the Texas Medicaid program was billed for medical supplies and items that Nisi had never purchased. Medicaid paid more than $554,000 on the false and fraudulent claims submitted.

Felicitas and Ericka Alanis admitted in court today that they conspired to send false and fraudulent bills to the Texas Medicaid program in the name of Nisi Medical Equipment and Supplies between on or about Jan. 1, 2005, through on or about Oct. 12, 2006, and that they routinely billed the Medicaid program for allegedly providing 200 boxes of alcohol prepartion pads to Medicaid beneficiaries when in fact only one box of alcohol preparation pads was ever delivered.

The women have been allowed to remain on bond pending their sentencing hearing, which is set for April 16, 2012, at which time they face a maximum punishment of 10 years in prison and up to a $250,000 fine plus up to three years of post-prison supervised release. Restitution may also be ordered.

The investigation leading to the charges in this case was conducted by the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney Casey N. MacDonald and Special Assistant United States Attorney Rex G. Beasley are prosecuting the case.

Joseph Martinez Pleads Guilty to Production of Child Pornography Charge

Plea Agreement Requires 15-Year Prison Sentence and Lifetime Supervised Release

ALBUQUERQUE—This morning in federal court, Joseph Martinez, 53, of Tijeras, N.M., entered a guilty plea to a superseding indictment charging him with production of a visual depiction of a minor engaged in sexually explicit conduct under a plea agreement with the U.S. Attorney’s Office, announced U.S. Attorney Kenneth J. Gonzales.

Under the terms of the plea agreement, Martinez will be sentenced to 15 years of imprisonment to be followed by a lifetime of supervised release. Martinez also will be required to register as a sex offender after he completes his prison sentence. Martinez has been in federal custody since his arrest on August 26, 2009. He remains detained pending his sentencing hearing, which has yet to be scheduled.

In entering his guilty agreement, Martinez admitted that, between March 1992 and March 1998, he persuaded, induced, enticed, coerced, and encouraged a minor male child (victim) to engage in sexually explicit conduct so that he (Martinez) could produce a visual depiction of that conduct. Martinez admitted that this course of conduct occurred in Bernalillo County, N.M.

In his plea agreement, Martinez acknowledged that, if he proceeded to trial, the victim would testify that Martinez took sexually explicit photos of him when he was between the ages of 6 and 12 years old. Martinez also acknowledged that an inmate with whom he had contact while in jail would testify that Martinez admitted that police found sexually explicit photographs of the victim, including photographs showing Martinez engaged in sexual activity with the victim. The inmate also would testify that Martinez admitted that Martinez began this pattern of criminal activity when the victim was approximately 5 years old.

Under the terms of the plea agreement, Martinez is required to withdraw his pending motion to suppress the victim’s testimony. Martinez also waives his rights to appeal his conviction and sentence.

The case is being prosecuted by Assistant U.S. Attorneys Charlyn E. Rees and Presliano Torrez, and was investigated by Federal Bureau of Investigation and the Bernalillo County Sheriff’s Office. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Projectsafechildhood.gov.

Defendant Charged with Investor Fraud Who Fled to Middle East is Arrested

AHMED ALABADI, a 44-year-old citizen of Iraq and former resident of Dearborn, was arrested at Detroit Metropolitan Wayne County Airport on the evening of Friday February 3, 2012, announced United States Attorney Barbara McQuade. Alabadi was arrested on an indictment for bank fraud, attempted bank fraud, and money laundering. McQuade was joined in the announcement by Special Agent Andrew G. Arena, Federal Bureau of Investigation and Brian Moskowitz, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Homeland Security Investigations in Detroit.

The indictment alleges that Alabadi solicited investments from individuals, many of Iraqi descent, by promising that the funds would be used in various rebuilding projects in Iraq. Alabadi promised large returns for the investments. In reality, however, Alabadi did not use the investors’ money for such projects. Instead, he operated a Ponzi scheme by using money from subsequent investors to pay earlier investors. Alabadi fled to the Middle East as investors began discovering the fraud.

An indictment is only a charge and is not evidence of guilt. It will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant United States Attorney Louis P. Gabel.

If any individual believes that he or she was a victim of Alabadi’s fraud they should contact Special Agent Philip Reed of the FBI at (313) 965-2323.

Marin Man Sentenced to 96 Months for Possession of Child Pornography

San Rafael Psychologist and Founder of Independent Learning Schools Ordered to Pay $50,000 to National Center for Missing and Exploited Children

SAN FRANCISCO—Donald Tosti was sentenced Feb. 2, 2012, to eight years in prison and ordered to pay $50,000 in restitution for possessing child pornography, United States Attorney Melinda Haag announced.

Tosti was convicted on Sept. 14, 2011, on two charges of possessing child pornography. During the trial, evidence showed that Tosti was found to possess child pornography after taking his computer to CompUSA for repair. A search of Tosti’s home and office revealed a large collection of child pornography, including depictions of the rape of very young children. In sentencing Tosti, United States District Court Judge Jeffrey S. White emphasized the size of his collection and the graphic and extreme nature of the child pornography images as aggravating factors in imposing his sentence.

Tosti, 76, of San Rafael, Calif., was indicted by a federal grand jury on Oct. 6, 2009, with one count of possession of child pornography. A second charge was added by the grand jury on Nov. 24, 2010, based on additional child pornography found after Tosti’s arrest.

The sentence was handed down by Judge White following a bench trial on two counts in violation of Title 18, United States Code, section 2252(a)(4)(B). Judge White also sentenced the defendant to a five-year period of supervised release and ordered him to pay $50,000 in restitution to the National Center for Missing and Exploited Children. The defendant is scheduled to begin serving the sentence on April 2, 2011.

Owen Martikan is the Assistant U.S. Attorney who prosecuted the case with the assistance of Rosario Calderon. The prosecution is the result of a four-year investigation by the Federal Bureau of Investigation, with the assistance of the San Rafael Police Department.

Two Arrested In KCK Charged With Firearms Violations

KANSAS CITY, KAN. – Two men arrested Wednesday morning in Kansas City, KAN., have been charged with federal firearms violations, U.S. Attorney Barry Grissom said today.

Dominic N. Hayes, 33, Kansas City, KAN., and Troyton Mozingo, 31, Kansas City, KAN., both are charged with one count of unlawful possession of a firearm after a felony conviction. Hayes was arrested Wednesday morning at a storage facility near 74th and State in Kansas City, KAN. Mozingo was arrested at a duplex in the 1200 block of North 64th Drive after a brief police chase.

The two appeared Friday in U.S. District Court in Kansas City, KAN., on a criminal complaint alleging they unlawfully possessed a .40 caliber HS product pistol and a 7.62 caliber Chinese made SKS rifle. Both were prohibited by federal law from possessing firearms because of prior felony convictions.

If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City, KAN., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.