“A top Swedish judge has defended the release of classified information by WikiLeaks, pointing out the case against Assange has turned into a legal “mess.”

“It should never be a crime to make known crime of a state,” Stefan Lindskog told the audience at a public lecture he gave at Adelaide University, according to Australian Associated Press.

The judge, who is one of the 16 justices working for the Supreme Court of Sweden, revealed an extraordinary amount of detail on Assange’s sexual assault case, despite not sitting on it.

The official also indicated that the courts may rule against sending the WikiLeaks founder to the US due to some conditions of the existing extradition treaty between the two countries.

“Extradition shall not be granted when alleged crimes [are] military or political in nature,” Lindskog stressed.

Moreover, according to the judge, it was debatable whether Assange would have committed a crime under Swedish law.

“What is classified under US law is probably not classified under Swedish law, and enemies to the US may not be enemies to Sweden,” AAP quoted the official as saying.

Lindskog added that extensive media coverage of the case has entailed the public distrust in the legal system.

“I think it is a mess,” he said.

Finally, the judge supported the American soldier Bradley Manning, who provided some of the classified information to WikiLeaks. Lindskog said he hoped Manning would go through a fair trial, saying that the release of classified information was for the benefit of mankind.

Prior to the speech, Assange condemned Lindskog’s decision to speak in Australia, calling it “absolutely outrageous.”

The 41-year-old whistleblower, an Australian citizen, has spent nine months in London’s Ecuadorian embassy, after claiming asylum to avoid extradition to Sweden, where he is wanted for questioning on sexual assault allegations.

Assange fears that once in Sweden, he could be extradited to America where, according to his lawyers, he is most likely to face trial and possibly even the death penalty for the release of thousands of classified US diplomatic cables, some of them about the wars in Iraq and Afghanistan.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“A top Swedish judge has defended the release of classified information by WikiLeaks, pointing out the case against Assange has turned into a legal “mess.”

“It should never be a crime to make known crime of a state,” Stefan Lindskog told the audience at a public lecture he gave at Adelaide University, according to Australian Associated Press.

The judge, who is one of the 16 justices working for the Supreme Court of Sweden, revealed an extraordinary amount of detail on Assange’s sexual assault case, despite not sitting on it.

The official also indicated that the courts may rule against sending the WikiLeaks founder to the US due to some conditions of the existing extradition treaty between the two countries.

“Extradition shall not be granted when alleged crimes [are] military or political in nature,” Lindskog stressed.

Moreover, according to the judge, it was debatable whether Assange would have committed a crime under Swedish law.

“What is classified under US law is probably not classified under Swedish law, and enemies to the US may not be enemies to Sweden,” AAP quoted the official as saying.

Lindskog added that extensive media coverage of the case has entailed the public distrust in the legal system.

“I think it is a mess,” he said.

Finally, the judge supported the American soldier Bradley Manning, who provided some of the classified information to WikiLeaks. Lindskog said he hoped Manning would go through a fair trial, saying that the release of classified information was for the benefit of mankind.

Prior to the speech, Assange condemned Lindskog’s decision to speak in Australia, calling it “absolutely outrageous.”

The 41-year-old whistleblower, an Australian citizen, has spent nine months in London’s Ecuadorian embassy, after claiming asylum to avoid extradition to Sweden, where he is wanted for questioning on sexual assault allegations.

Assange fears that once in Sweden, he could be extradited to America where, according to his lawyers, he is most likely to face trial and possibly even the death penalty for the release of thousands of classified US diplomatic cables, some of them about the wars in Iraq and Afghanistan.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
International Extradition Lawyers Videos:

International Extradition – When the FBI Seeks Extradition

International Extradition – Wire Transfer – Email – Telephone Call

————————————————————–

We previously discussed the extradition treaty between the United States and Sweden here.

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“By: Scott Cohn
CNBC Senior Correspondent

Former Enron CEO Jeffrey Skilling, who is serving a 24-year prison term for his role in the energy giant’s epic collapse, could get out of prison early under an agreement being discussed by his attorneys and the Justice Department, CNBC has learned.

Skilling, who was convicted in 2006 of conspiracy, fraud and insider trading, has served just over six years. It is not clear how much his sentence would be shortened under the deal.

A federal appeals panel ruled in 2009 that the original sentence imposed by U.S. District Judge Sim Lake was too harsh, but a re-sentencing for the 59-year-old Skilling has repeatedly been delayed, first as the appeals process played out, and then as the negotiations for a deal progressed.

Those talks had been a closely guarded secret, but Thursday the Justice Department quietly issued a notice to victims required under federal law:

“The Department of Justice is considering entering into a sentencing agreement with the defendant in this matter,” the notice reads. “Such a sentencing agreement could restrict the parties and the Court from recommending, arguing for, or imposing certain sentences or conditions of confinement. It could also restrict the parties from challenging certain issues on appeal, including the sentence ultimately imposed by the Court at a future sentencing hearing.”

(Read More: Flush With Crime: Study Shows Prison a Career Booster)

A Justice Department spokesman declined to comment. Skilling’s longtime defense attorney, Daniel Petrocelli, could not immediately be reached for comment.

Lake, who imposed the original sentence, would have the final say in the sentence. The posting of the notice, however, suggests the parties have some indication he will go along. Lake held a private conference call with attorneys for both sides last month.

For Skilling, who has consistently maintained his innocence, an agreement would end a long ordeal, although his conviction on 19 criminal counts would likely stand. The government, meanwhile, would avoid a potentially messy court battle over alleged misconduct by the Justice Department’s elite Enron Task Force appointed in the wake of the company’s sudden failure in 2001.

Skilling’s attorneys had planned to move for a new trial based on that alleged misconduct. Under a sentencing agreement, that motion would likely be dropped.

Skilling, who developed Enron’s business model as an “asset-light” energy trading company, rose to CEO in early 2001, only to resign six months later. Soon after that, Enron began its sudden plunge into what was at the time the largest bankruptcy in U.S. history.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Appeal

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“By WILLIAM K. RASHBAUM and MARC SANTORA

A top New York State lawmaker was arrested early Tuesday morning for what federal prosecutors said was his central role in a brazen series of bribery and corruption schemes, including an attempt to buy a spot on the ballot in this year’s race for New York City mayor.

In outlining the charges against the lawmaker, State Senator Malcolm A. Smith, as well as five other politicians and Republican Party leaders, United States Attorney Preet Bharara said the case was but the latest evidence that corruption in New York was “pervasive.”

“Every New Yorker should be disheartened and dismayed by the sad state of affairs in this great state,” Mr. Bharara said.

Mr. Smith, a Queens Democrat who rose to become the first black president of the State Senate, was accused of conspiring with City Councilman Daniel J. Halloran III, a Queens Republican, to get his name on the ballot for mayor as a Republican, which would require approval of a majority of the party’s leadership in the city.

The others arrested were Joseph J. Savino, the Bronx G.O.P. chairman; Vincent Tabone, vice chairman of the Queens Republican Party; and Noramie F. Jasmin, the mayor of the Rockland County village of Spring Valley, and her deputy, Joseph A. Desmaret, according to a criminal complaint.

The complaint details a scheme hatched in a series of clandestine meetings in hotels, with cash passing hands in parked cars and hushed conversations in a restaurant on Valentine’s Day and even in Mr. Smith’s office in Albany. The meetings, recorded by an undercover agent or a cooperating witness, were primarily among Mr. Smith, the undercover agent and the witness, and Mr. Halloran and the agent and the witness. The scheme involving the race was one of three bribery schemes charged in the case.

Mr. Bharara, at a news conference, pointed to Mr. Halloran’s own words in a recorded conversation with the confidential witness as evidence of how “money greases the wheel.”

“That’s politics, that’s politics,” Mr. Halloran is quoted in the complaint as saying. “Not about whether or will, it’s about how much, and that’s our politicians in New York, they’re all like that. And they get like that because of the drive that the money does for everything else.”

The charges immediately reverberated at City Hall and in Albany, threatening to upset the Republican primary for mayor of New York and the leadership coalition that governs the State Senate.

“It is very, very troubling,” Gov. Andrew M. Cuomo said of the charges. “We have zero tolerance for any violation of the public integrity and the public trust, so they’re very serious.”

At the Capitol, Mr. Smith is a key member of an independent faction of Democrats who joined forces with Republicans to seize control of the Senate this year. Although that coalition has enough members to retain control without him, the charges against him are sure to taint the coalition as well as the rest of the Senate Democrats, who have been struggling to distance themselves from years of corruption.

Jeffrey D. Klein, a Democrat and a one of the two leaders of the State Senate, said Mr. Smith would be stripped of his committee assignments and his conference leadership position.

“These are very serious allegations that, if true, constitute a clear betrayal of the public trust,” Mr. Klein said in a statement.

And in New York City, the case suggests an unseemly connection between money and the Republican Party’s nominating process, and raises questions for a leading Republican candidate, John Catsimatidis. Mr. Tabone is an influential campaign adviser to Mr. Catsimatidis and in-house counsel to the candidate’s privately held company, which owns the Gristedes supermarket chain. The charges are also likely to be a distraction for Joseph J. Lhota, another leading Republican candidate, who just days ago celebrated the endorsement of Mr. Halloran.

In an interview on Tuesday, Mr. Catsimatidis said he had suspended Mr. Tabone pending the outcome of the charges, and he dismissed the idea that the indictment would affect his mayoral bid.

“Why would it affect the election? Why would it affect me?” Mr. Catsimatidis said. “It affects my campaign zero. We are going 100 percent ahead.”

Mr. Catsimatidis played down Mr. Tabone’s role in his business, describing him as one of several lawyers under his employ, but acknowledged that Mr. Tabone had been closely involved in his campaign for several months.

Asked if Mr. Tabone’s discussions with a rival Republican candidate could be viewed as a form of betrayal, Mr. Catsimatidis replied, “I think it can be considered a little bit of treason.”

A spokeswoman for Mr. Lhota declined to comment.

Mayor Michael R. Bloomberg, who said he was familiar with only the broad outlines of the charges, said that they illustrated the need to hold nonpartisan elections in the city, a cause that he has championed over the years but that has failed to gain widespread support.

Mr. Smith, 56, was taken from his home in St. Albans in handcuffs by F.B.I. agents before sunrise and Mr. Halloran, a lawyer, was arrested about the same time, law enforcement authorities said.

Mr. Smith, a contractor and real estate developer, has said he was considering running for mayor as a Republican, and the charges contend that he made payments to Mr. Halloran in exchange for the councilman’s assistance in setting up meetings with Republican leaders as part of an effort to get on the ballot, the complaint said

The criminal complaint was filed by federal prosecutors in Manhattan and unsealed Tuesday morning. Mr. Smith, Mr. Halloran and the others were to appear later Tuesday before a United States magistrate judge in United States District Court in White Plains.

Mr. Smith, according to the complaint, agreed with the cooperating witness and the undercover F.B.I. agent, who was masquerading as a wealthy real estate developer, to pay off leaders of Republican county committees in New York’s five boroughs. The bribes were to be paid to obtain specific certificates authorizing him to run for mayor as a Republican even though he was a registered Democrat.

The undercover agent and the cooperating witness served as intermediaries between the senator and Mr. Halloran, the complaint said.

Mr. Smith’s lawyer, Gerald L. Shargel, said his client denied wrongdoing. “Malcolm Smith is a dedicated and highly respected public servant and he steadfastly denies these charges,” Mr. Shargel said, adding that he would have more to say after he had an opportunity to study the charges.

Lawyers for Mr. Savino and Mr. Tabone, Kevin B. Faga and Vito A. Palimieri, could not immediately be reached for comment. The lawyers representing the other defendants could not immediately be identified.

Most of the defendants, according to the complaint, were looking for something: Mr. Smith was seeking authorization to get his name on the ballot. Mr. Halloran, in addition to cash payments, also mentioned the possibility of being named deputy police commissioner if Mr. Smith found his way into Gracie Mansion.

Ms. Jasmin wanted an ownership interest in a company she believed was involved in a real estate deal, the complaint says, and Mr. Smith promised to steer $500,000 in state transportation funds to that project.

And at least one of the defendants was also looking for a way to avoid jail.

George Venizelos, the assistant director of the F.B.I.’s New York office, said in a statement that Mr. Tabone, clearly aware that the bribery scheme was illegal, patted down the undercover F.B.I. agent at one point to see if he was wearing a recording device. “He was,” Mr. Venizelos said, “but Tabone was less skilled at conducting a pat-down than he was at conducting a shakedown.”

At the same time, Mr. Tabone, according to the complaint, boasted to the undercover agent when he was asked if he could deliver the certification to appear on the Republican ballot. “Nobody else runs the party,” he said. “I run the party.”

But Mr. Smith became impatient, asking the agent and the cooperating witness during a meeting in his office whether the Republican committee leaders were delaying getting his certificates because they wanted more money.

Mr. Smith, according to the complaint, instructed the two men not to pay the committee leaders any more money until they had “close[d] … the deal.” He also said that before the leaders received “even a nickel more, [he’d] have to stand on the Empire State Building and drop every person [he] endorsed and hold Malcolm up and say he’s the best thing since sliced bread. Matter of fact, he’s better than sliced bread.”

According to the complaint, Mr. Halloran set up a meeting at which the undercover agent and the witness met Mr. Savino and Mr. Tabone, and negotiated the amounts of the bribes for the documents. In exchange, Mr. Halloran sought and received more than $20,000 in cash for himself, prosecutors said.

Though at one point, according to the complaint, Mr. Halloran said he could probably get the leaders of all five Republican county parties to sign certificates on behalf of Mr. Smith, no other county leader has been accused of wrongdoing.

Mr. Tabone and Mr. Savino were paid bribes of more than $40,000 and were promised $40,000 more, and they in turn agreed to use their official capacities with Republican county committees to obtain the documents Mr. Smith would need to run for mayor as a Republican

Mr. Smith, in exchange for help from Mr. Savino and Mr. Tabone, agreed to use his Senate office to help win state funds for a road project in Spring Valley that would benefit a real estate development that Senator Smith believed was being built by a company belonging to the undercover agent.

The development involved building a community center in Spring Valley. On Tuesday, a sign near the site with the words “Coming Soon!” showed a rendering of the center.

The complaint said that on Nov. 16, Mr. Smith met the undercover agent and the cooperating witness at a hotel in White Plains and asked the witness to contact a Republican Party county chairman identified in the charges only as “County Chairman #1” to try to “change him” by persuading him to support Mr. Smith rather than another mayoral candidate whom the chairman had publicly supported.

Later that day, the complaint said, Mr. Halloran met the undercover agent at a Queens restaurant in order to receive a bribe in exchange for taking what the charges refer to as unspecified “unrelated official action.” During that meeting, the agent asked Mr. Halloran if he knew “County Chairman #1” and Mr. Halloran said that he did, and that he knew Mr. Savino. Mr. Halloran agreed to ask the county chairman and Mr. Savino what they would want in exchange for their support for a mayoral candidate, the complaint said.

And on that same day, the undercover agent met Mr. Smith at a hotel in Manhattan and told him that the agent could arrange a meeting with “County Chairman #1” and Mr. Savino during which the agent would try to negotiate their support for the senator, the complaint said. Mr. Smith, the complaint said, told the undercover agent: “You pull this off, you can have the house. I’ll be a tenant.”

Several months later, Mr. Smith met the cooperating witness in Rockland County, the complaint said. As they sat in a parked car, the witness told Mr. Smith that getting the certificates from the county leaders would cost “a pretty penny,” the complaint said.

“It’s worth any price?” the witness asked.

The senator responded, according to the complaint: “Look, talk to me before you close it. But it’s worth it. Because you know how big a deal it is.”

Two weeks later, Mr. Halloran met the undercover agent and the witness at a Manhattan hotel and told them that Mr. Savino wanted $25,000 “in an envelope” in exchange for signing the certificate, the complaint said. Mr. Tabone, the person said, wanted $50,000 — half of the money before he signed and the balance afterward.

Mr. Smith has been a subject of several criminal inquiries in recent years and his constituents have steadfastly stood by him in the past. After his arrest, some of those who live in his district were hesitant to cast judgment.

Francois Pierrelouis, 80, said he voted for Mr. Smith in the last election and he called the allegations “just an accusation.”

While he said it was too soon to call Mr. Smith guilty, he said, in general, he was tired of politicians “that are not connected to the needs of the people.””

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“By WILLIAM K. RASHBAUM and MARC SANTORA

A top New York State lawmaker was arrested early Tuesday morning for what federal prosecutors said was his central role in a brazen series of bribery and corruption schemes, including an attempt to buy a spot on the ballot in this year’s race for New York City mayor.

In outlining the charges against the lawmaker, State Senator Malcolm A. Smith, as well as five other politicians and Republican Party leaders, United States Attorney Preet Bharara said the case was but the latest evidence that corruption in New York was “pervasive.”

“Every New Yorker should be disheartened and dismayed by the sad state of affairs in this great state,” Mr. Bharara said.

Mr. Smith, a Queens Democrat who rose to become the first black president of the State Senate, was accused of conspiring with City Councilman Daniel J. Halloran III, a Queens Republican, to get his name on the ballot for mayor as a Republican, which would require approval of a majority of the party’s leadership in the city.

The others arrested were Joseph J. Savino, the Bronx G.O.P. chairman; Vincent Tabone, vice chairman of the Queens Republican Party; and Noramie F. Jasmin, the mayor of the Rockland County village of Spring Valley, and her deputy, Joseph A. Desmaret, according to a criminal complaint.

The complaint details a scheme hatched in a series of clandestine meetings in hotels, with cash passing hands in parked cars and hushed conversations in a restaurant on Valentine’s Day and even in Mr. Smith’s office in Albany. The meetings, recorded by an undercover agent or a cooperating witness, were primarily among Mr. Smith, the undercover agent and the witness, and Mr. Halloran and the agent and the witness. The scheme involving the race was one of three bribery schemes charged in the case.

Mr. Bharara, at a news conference, pointed to Mr. Halloran’s own words in a recorded conversation with the confidential witness as evidence of how “money greases the wheel.”

“That’s politics, that’s politics,” Mr. Halloran is quoted in the complaint as saying. “Not about whether or will, it’s about how much, and that’s our politicians in New York, they’re all like that. And they get like that because of the drive that the money does for everything else.”

The charges immediately reverberated at City Hall and in Albany, threatening to upset the Republican primary for mayor of New York and the leadership coalition that governs the State Senate.

“It is very, very troubling,” Gov. Andrew M. Cuomo said of the charges. “We have zero tolerance for any violation of the public integrity and the public trust, so they’re very serious.”

At the Capitol, Mr. Smith is a key member of an independent faction of Democrats who joined forces with Republicans to seize control of the Senate this year. Although that coalition has enough members to retain control without him, the charges against him are sure to taint the coalition as well as the rest of the Senate Democrats, who have been struggling to distance themselves from years of corruption.

Jeffrey D. Klein, a Democrat and a one of the two leaders of the State Senate, said Mr. Smith would be stripped of his committee assignments and his conference leadership position.

“These are very serious allegations that, if true, constitute a clear betrayal of the public trust,” Mr. Klein said in a statement.

And in New York City, the case suggests an unseemly connection between money and the Republican Party’s nominating process, and raises questions for a leading Republican candidate, John Catsimatidis. Mr. Tabone is an influential campaign adviser to Mr. Catsimatidis and in-house counsel to the candidate’s privately held company, which owns the Gristedes supermarket chain. The charges are also likely to be a distraction for Joseph J. Lhota, another leading Republican candidate, who just days ago celebrated the endorsement of Mr. Halloran.

In an interview on Tuesday, Mr. Catsimatidis said he had suspended Mr. Tabone pending the outcome of the charges, and he dismissed the idea that the indictment would affect his mayoral bid.

“Why would it affect the election? Why would it affect me?” Mr. Catsimatidis said. “It affects my campaign zero. We are going 100 percent ahead.”

Mr. Catsimatidis played down Mr. Tabone’s role in his business, describing him as one of several lawyers under his employ, but acknowledged that Mr. Tabone had been closely involved in his campaign for several months.

Asked if Mr. Tabone’s discussions with a rival Republican candidate could be viewed as a form of betrayal, Mr. Catsimatidis replied, “I think it can be considered a little bit of treason.”

A spokeswoman for Mr. Lhota declined to comment.

Mayor Michael R. Bloomberg, who said he was familiar with only the broad outlines of the charges, said that they illustrated the need to hold nonpartisan elections in the city, a cause that he has championed over the years but that has failed to gain widespread support.

Mr. Smith, 56, was taken from his home in St. Albans in handcuffs by F.B.I. agents before sunrise and Mr. Halloran, a lawyer, was arrested about the same time, law enforcement authorities said.

Mr. Smith, a contractor and real estate developer, has said he was considering running for mayor as a Republican, and the charges contend that he made payments to Mr. Halloran in exchange for the councilman’s assistance in setting up meetings with Republican leaders as part of an effort to get on the ballot, the complaint said

The criminal complaint was filed by federal prosecutors in Manhattan and unsealed Tuesday morning. Mr. Smith, Mr. Halloran and the others were to appear later Tuesday before a United States magistrate judge in United States District Court in White Plains.

Mr. Smith, according to the complaint, agreed with the cooperating witness and the undercover F.B.I. agent, who was masquerading as a wealthy real estate developer, to pay off leaders of Republican county committees in New York’s five boroughs. The bribes were to be paid to obtain specific certificates authorizing him to run for mayor as a Republican even though he was a registered Democrat.

The undercover agent and the cooperating witness served as intermediaries between the senator and Mr. Halloran, the complaint said.

Mr. Smith’s lawyer, Gerald L. Shargel, said his client denied wrongdoing. “Malcolm Smith is a dedicated and highly respected public servant and he steadfastly denies these charges,” Mr. Shargel said, adding that he would have more to say after he had an opportunity to study the charges.

Lawyers for Mr. Savino and Mr. Tabone, Kevin B. Faga and Vito A. Palimieri, could not immediately be reached for comment. The lawyers representing the other defendants could not immediately be identified.

Most of the defendants, according to the complaint, were looking for something: Mr. Smith was seeking authorization to get his name on the ballot. Mr. Halloran, in addition to cash payments, also mentioned the possibility of being named deputy police commissioner if Mr. Smith found his way into Gracie Mansion.

Ms. Jasmin wanted an ownership interest in a company she believed was involved in a real estate deal, the complaint says, and Mr. Smith promised to steer $500,000 in state transportation funds to that project.

And at least one of the defendants was also looking for a way to avoid jail.

George Venizelos, the assistant director of the F.B.I.’s New York office, said in a statement that Mr. Tabone, clearly aware that the bribery scheme was illegal, patted down the undercover F.B.I. agent at one point to see if he was wearing a recording device. “He was,” Mr. Venizelos said, “but Tabone was less skilled at conducting a pat-down than he was at conducting a shakedown.”

At the same time, Mr. Tabone, according to the complaint, boasted to the undercover agent when he was asked if he could deliver the certification to appear on the Republican ballot. “Nobody else runs the party,” he said. “I run the party.”

But Mr. Smith became impatient, asking the agent and the cooperating witness during a meeting in his office whether the Republican committee leaders were delaying getting his certificates because they wanted more money.

Mr. Smith, according to the complaint, instructed the two men not to pay the committee leaders any more money until they had “close[d] … the deal.” He also said that before the leaders received “even a nickel more, [he’d] have to stand on the Empire State Building and drop every person [he] endorsed and hold Malcolm up and say he’s the best thing since sliced bread. Matter of fact, he’s better than sliced bread.”

According to the complaint, Mr. Halloran set up a meeting at which the undercover agent and the witness met Mr. Savino and Mr. Tabone, and negotiated the amounts of the bribes for the documents. In exchange, Mr. Halloran sought and received more than $20,000 in cash for himself, prosecutors said.

Though at one point, according to the complaint, Mr. Halloran said he could probably get the leaders of all five Republican county parties to sign certificates on behalf of Mr. Smith, no other county leader has been accused of wrongdoing.

Mr. Tabone and Mr. Savino were paid bribes of more than $40,000 and were promised $40,000 more, and they in turn agreed to use their official capacities with Republican county committees to obtain the documents Mr. Smith would need to run for mayor as a Republican

Mr. Smith, in exchange for help from Mr. Savino and Mr. Tabone, agreed to use his Senate office to help win state funds for a road project in Spring Valley that would benefit a real estate development that Senator Smith believed was being built by a company belonging to the undercover agent.

The development involved building a community center in Spring Valley. On Tuesday, a sign near the site with the words “Coming Soon!” showed a rendering of the center.

The complaint said that on Nov. 16, Mr. Smith met the undercover agent and the cooperating witness at a hotel in White Plains and asked the witness to contact a Republican Party county chairman identified in the charges only as “County Chairman #1” to try to “change him” by persuading him to support Mr. Smith rather than another mayoral candidate whom the chairman had publicly supported.

Later that day, the complaint said, Mr. Halloran met the undercover agent at a Queens restaurant in order to receive a bribe in exchange for taking what the charges refer to as unspecified “unrelated official action.” During that meeting, the agent asked Mr. Halloran if he knew “County Chairman #1” and Mr. Halloran said that he did, and that he knew Mr. Savino. Mr. Halloran agreed to ask the county chairman and Mr. Savino what they would want in exchange for their support for a mayoral candidate, the complaint said.

And on that same day, the undercover agent met Mr. Smith at a hotel in Manhattan and told him that the agent could arrange a meeting with “County Chairman #1” and Mr. Savino during which the agent would try to negotiate their support for the senator, the complaint said. Mr. Smith, the complaint said, told the undercover agent: “You pull this off, you can have the house. I’ll be a tenant.”

Several months later, Mr. Smith met the cooperating witness in Rockland County, the complaint said. As they sat in a parked car, the witness told Mr. Smith that getting the certificates from the county leaders would cost “a pretty penny,” the complaint said.

“It’s worth any price?” the witness asked.

The senator responded, according to the complaint: “Look, talk to me before you close it. But it’s worth it. Because you know how big a deal it is.”

Two weeks later, Mr. Halloran met the undercover agent and the witness at a Manhattan hotel and told them that Mr. Savino wanted $25,000 “in an envelope” in exchange for signing the certificate, the complaint said. Mr. Tabone, the person said, wanted $50,000 — half of the money before he signed and the balance afterward.

Mr. Smith has been a subject of several criminal inquiries in recent years and his constituents have steadfastly stood by him in the past. After his arrest, some of those who live in his district were hesitant to cast judgment.

Francois Pierrelouis, 80, said he voted for Mr. Smith in the last election and he called the allegations “just an accusation.”

While he said it was too soon to call Mr. Smith guilty, he said, in general, he was tired of politicians “that are not connected to the needs of the people.””

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“By Associated Press

NEW YORK — A portfolio manager for the hedge fund operator SAC Capital Advisors has pleaded not guilty to federal charges in an insider trading probe.

The FBI arrested Michael Steinberg at 6 a.m. Friday at his home in New York City.

His attorney says in a statement that Steinberg “did absolutely nothing wrong.”

Attorney Barry H. Berke says Steinberg was “caught in the crossfire of aggressive investigations” into other people’s activities.

At least four other people associated with the Stamford, Conn.-based firm have been arrested over a period of about four years.

On March 15, the Securities and Exchange Commission said that two affiliates of SAC Capital Advisors would pay more than $614 million in what federal regulators called the largest insider trading settlement ever. The settlement is subject to court approval.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

A senior portfolio manager for one of the nation’s largest hedge funds was arrested Friday, accused of making $1.4 million illegally in a widening insider trading probe involving an investment company founded by billionaire businessman Steven A. Cohen.

Michael Steinberg, 41, was arrested at 6 a.m. at his Manhattan home on insider trading charges lodged in an indictment unsealed in U.S. District Court in New York City. A senior portfolio manager at SAC Capital Advisors, he was scheduled to appear in court Friday.

His attorney, Barry Berke, said in a statement that Steinberg “did absolutely nothing wrong.” He said Steinberg’s trading decisions were based on detailed analysis along with other information he properly obtained.

“Caught in the crossfire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation,” he said.

In a statement, SAC Capital said Steinberg “has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity.”

U.S. Attorney Preet Bharara said in a statement that Steinberg “was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money. With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the indictment.”

George Venizelos, head of the FBI’s New York office, said the arrest was the latest in an FBI probe that has resulted in more than 70 arrests.

“Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded,” he said. “Research was nothing more than well-timed tips from an extensive network of well-sourced analysts.”

At least four other people associated with the Stamford, Conn.-based firm have been arrested over a period of about four years.

The arrest of Steinberg and the January arrest of a former hedge fund portfolio manager for an affiliate of Cohen’s firm has increased speculation that the government is taking a hard look at the practices of the billionaire hedge fund owner. In the January case, Cohen is repeatedly referenced as a “Hedge Fund Owner” in a criminal complaint. He has not been charged in the case and SAC spokesman Jonathan Gasthalter has said the company and Cohen are cooperating with the inquiry and “are confident that they have acted appropriately.”

In the latest case, Steinberg is charged with conspiracy to commit securities fraud and four counts of securities fraud, accused of using inside information as he made trades involving Dell Inc. and Nvidia Corp. securities. If convicted, he could face up to 85 years in prison.

Civil charges against Steinberg also were filed by the Securities and Exchange Commission.

On March 15, the SEC said that two affiliates of SAC Capital Advisors would pay more than $614 million in what federal regulators called the largest insider trading settlement ever. The settlement is subject to court approval.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“BEAUMONT, TX— Four Port Arthur, Texas men have been indicted and arrested in connection with a mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

An indictment was returned by a federal grand jury on March 6, 2013, charging Christopher Thomas, 41; Lawrence Thomas, 42; Haleem Collins, 35; and Quarmi Garlington, 25, with conspiracy to commit mail fraud.

The indictment, which was unsealed today, alleges that from November 6, 2006 to March 8, 2012, the defendants conspired with each other to defraud numerous auto insurance companies by submitting fraudulent insurance claims for personal injury and economic loss through the U.S. Postal Service. According to the indictment, the defendants repeatedly staged automobile collisions in Port Arthur after having purchased policies on the vehicles involved. Once the defendants either actually crashed the vehicles or staged a collision, they would contact police and assume the roles of drivers and passengers for emergency personnel. The indictment also alleges that the defendants would use aggressive driving tactics to induce automobile accidents with other unsuspecting drivers. Following these collisions, the defendants would falsely claim to be injured and submit, by means of the mail, fraudulent accident claims.

The defendants were taken into custody and made initial appearances this week before U.S. Magistrate Judge Zack Hawthorn.

If convicted of the conspiracy charge, the defendants each face up to 20 years in federal prison.

This case is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Port Arthur Police Department; and the National Insurance Crime Bureau and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.

A grand jury indictment is not evidence of guilt, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“THE ASSOCIATED PRESS

ST. PETERSBURG, Fla. — Agents with the FBI and Department of Health and Human Services have executed search warrants at the St. Petersburg offices of a health care insurance company under investigation for possible fraud and mismanagement.

Officials with the two agencies confirmed the raid Thursday at Universal Health Care. The company is already in the process of liquidation under a Leon County judge’s order because of insolvency.

The state Department of Insurance Regulation has accused Universal of financial irregularities including possible fraud. Company officials did not immediately return a telephone call seeking comment.

Universal operated two related companies that provide Medicare Advantage insurance and Medicaid to about 100,000 members. They will be sent letters explaining their options for health care coverage after April 1.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“Far Rockaway Man Charged with Defrauding Victims of $50 Million in a Real Estate Ponzi Scheme

Earlier today, FBI agents arrested Gershon Barkany based on a criminal complaint alleging that the Far Rockaway man defrauded investors by promising to use their money in “risk-free” deals to purchase and then immediately re-sell at a profit large real estate properties located in New York City and New Jersey. In fact, the complaint alleges that no such deals existed and the defendant defrauded victims of more than $50 million.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office. The defendant’s initial appearance is scheduled for this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse in Central Islip, New York.

According to the criminal complaint that was unsealed this morning, Barkany induced at least five investors to wire transfer large sums of money supposedly to purchase real estate in Manhattan, Queens, the Bronx, and Atlantic City, New Jersey. According to one of the investor victims, Barkany claimed that the sellers of these properties would only close on the real estate sales contracts after Barkany had located a purchaser who would be willing to buy the property from Barkany at a higher price. In that way, Barkany assured the victim that the real estate deals would be “risk free.”

In fact, the real estate deals did not exist. As part of Barkany’s Ponzi scheme, he diverted some of the funds he received to pay investors whom he had earlier defrauded. The defendant also lost some of the funds in gambling and otherwise used the money for his own benefit.

“Barkany’s victims sought the security of investing in real estate. Instead, they were taken for millions by the defendant’s lies and deception,” stated United States Attorney Lynch. “As alleged, the promised high returns were only for him, as he used his victims’ money to gamble and keep his scheme afloat. Today’s arrest demonstrates the Department of Justice’s commitment to investigate and prosecute financial crimes.” Ms. Lynch added that the government’s investigation is continuing.

FBI Assistant Director in Charge Venizelos stated, “As alleged, Barkany promised a get-rich-quick investment scheme that really had potential to enrich only him. There were no investment properties, just a house of cards built on a foundation of lies. There may be no truly risk-free investments, but investors are entitled to honesty.”

If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment.

The government’s case is being prosecuted by Assistant United States Attorney Christopher C. Caffarone.

Defendant
Gershon Barkany
Far Rockaway
Age: 29″

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“ALEXANDRIA, VA— Eric Harroun, 30, of Phoenix, was arrested and charged with conspiring to use a rocket propelled grenade (RPG) while fighting with the al Nusrah Front, an organization commonly referred to as “al Qaeda in Iraq” and designated as a foreign terrorist organization since October 2004.

Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.

Harroun, a U.S. citizen who served with the U.S. Army from 2000 to 2003, was charged by criminal complaint with conspiring to use a destructive device outside of the United States, which carries a maximum penalty of life in prison, if convicted. Harroun made his initial appearance today in federal court in Alexandria, Virginia, before U.S. Magistrate Judge Theresa C. Buchanan.

The al Nusrah Front is one of several aliases used by the al Qaeda in Iraq terrorist organization, and since November 2011, the group has claimed responsibility for nearly 600 terrorist attacks in Syria.

According to an affidavit filed in support of the criminal complaint, Harroun allegedly crossed into Syria in January 2013 and fought with members of the al Nusrah Front against the Bashar al Assad regime in Syria. The affidavit alleges that Harroun was trained to use an RPG by members of the terrorist organization and that he fired an RPG and posted online multiple photographs of himself carrying or posing with RPGs and other military weapons. Harroun allegedly participated in attacks led by the al Nusrah Front and was part of an RPG team, for which he carried anti-personnel and anti-armor rockets.

This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Andrew Peterson, Carter Burwell, and Lynn Haaland are prosecuting the case on behalf of the United States, with assistance from the Justice Department’s National Security Division.

Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“Far Rockaway Man Charged with Defrauding Victims of $50 Million in a Real Estate Ponzi Scheme

Earlier today, FBI agents arrested Gershon Barkany based on a criminal complaint alleging that the Far Rockaway man defrauded investors by promising to use their money in “risk-free” deals to purchase and then immediately re-sell at a profit large real estate properties located in New York City and New Jersey. In fact, the complaint alleges that no such deals existed and the defendant defrauded victims of more than $50 million.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office. The defendant’s initial appearance is scheduled for this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse in Central Islip, New York.

According to the criminal complaint that was unsealed this morning, Barkany induced at least five investors to wire transfer large sums of money supposedly to purchase real estate in Manhattan, Queens, the Bronx, and Atlantic City, New Jersey. According to one of the investor victims, Barkany claimed that the sellers of these properties would only close on the real estate sales contracts after Barkany had located a purchaser who would be willing to buy the property from Barkany at a higher price. In that way, Barkany assured the victim that the real estate deals would be “risk free.”

In fact, the real estate deals did not exist. As part of Barkany’s Ponzi scheme, he diverted some of the funds he received to pay investors whom he had earlier defrauded. The defendant also lost some of the funds in gambling and otherwise used the money for his own benefit.

“Barkany’s victims sought the security of investing in real estate. Instead, they were taken for millions by the defendant’s lies and deception,” stated United States Attorney Lynch. “As alleged, the promised high returns were only for him, as he used his victims’ money to gamble and keep his scheme afloat. Today’s arrest demonstrates the Department of Justice’s commitment to investigate and prosecute financial crimes.” Ms. Lynch added that the government’s investigation is continuing.

FBI Assistant Director in Charge Venizelos stated, “As alleged, Barkany promised a get-rich-quick investment scheme that really had potential to enrich only him. There were no investment properties, just a house of cards built on a foundation of lies. There may be no truly risk-free investments, but investors are entitled to honesty.”

If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment.

The government’s case is being prosecuted by Assistant United States Attorney Christopher C. Caffarone.

Defendant
Gershon Barkany
Far Rockaway
Age: 29″

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“By Associated Press

NEW YORK — A portfolio manager for the hedge fund operator SAC Capital Advisors has pleaded not guilty to federal charges in an insider trading probe.

The FBI arrested Michael Steinberg at 6 a.m. Friday at his home in New York City.

His attorney says in a statement that Steinberg “did absolutely nothing wrong.”

Attorney Barry H. Berke says Steinberg was “caught in the crossfire of aggressive investigations” into other people’s activities.

At least four other people associated with the Stamford, Conn.-based firm have been arrested over a period of about four years.

On March 15, the Securities and Exchange Commission said that two affiliates of SAC Capital Advisors would pay more than $614 million in what federal regulators called the largest insider trading settlement ever. The settlement is subject to court approval.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

A senior portfolio manager for one of the nation’s largest hedge funds was arrested Friday, accused of making $1.4 million illegally in a widening insider trading probe involving an investment company founded by billionaire businessman Steven A. Cohen.

Michael Steinberg, 41, was arrested at 6 a.m. at his Manhattan home on insider trading charges lodged in an indictment unsealed in U.S. District Court in New York City. A senior portfolio manager at SAC Capital Advisors, he was scheduled to appear in court Friday.

His attorney, Barry Berke, said in a statement that Steinberg “did absolutely nothing wrong.” He said Steinberg’s trading decisions were based on detailed analysis along with other information he properly obtained.

“Caught in the crossfire of aggressive investigations of others, there is no basis for even the slightest blemish on his spotless reputation,” he said.

In a statement, SAC Capital said Steinberg “has conducted himself professionally and ethically during his long tenure at the firm. We believe him to be a man of integrity.”

U.S. Attorney Preet Bharara said in a statement that Steinberg “was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money. With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the indictment.”

George Venizelos, head of the FBI’s New York office, said the arrest was the latest in an FBI probe that has resulted in more than 70 arrests.

“Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded,” he said. “Research was nothing more than well-timed tips from an extensive network of well-sourced analysts.”

At least four other people associated with the Stamford, Conn.-based firm have been arrested over a period of about four years.

The arrest of Steinberg and the January arrest of a former hedge fund portfolio manager for an affiliate of Cohen’s firm has increased speculation that the government is taking a hard look at the practices of the billionaire hedge fund owner. In the January case, Cohen is repeatedly referenced as a “Hedge Fund Owner” in a criminal complaint. He has not been charged in the case and SAC spokesman Jonathan Gasthalter has said the company and Cohen are cooperating with the inquiry and “are confident that they have acted appropriately.”

In the latest case, Steinberg is charged with conspiracy to commit securities fraud and four counts of securities fraud, accused of using inside information as he made trades involving Dell Inc. and Nvidia Corp. securities. If convicted, he could face up to 85 years in prison.

Civil charges against Steinberg also were filed by the Securities and Exchange Commission.

On March 15, the SEC said that two affiliates of SAC Capital Advisors would pay more than $614 million in what federal regulators called the largest insider trading settlement ever. The settlement is subject to court approval.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“BEAUMONT, TX— Four Port Arthur, Texas men have been indicted and arrested in connection with a mail fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

An indictment was returned by a federal grand jury on March 6, 2013, charging Christopher Thomas, 41; Lawrence Thomas, 42; Haleem Collins, 35; and Quarmi Garlington, 25, with conspiracy to commit mail fraud.

The indictment, which was unsealed today, alleges that from November 6, 2006 to March 8, 2012, the defendants conspired with each other to defraud numerous auto insurance companies by submitting fraudulent insurance claims for personal injury and economic loss through the U.S. Postal Service. According to the indictment, the defendants repeatedly staged automobile collisions in Port Arthur after having purchased policies on the vehicles involved. Once the defendants either actually crashed the vehicles or staged a collision, they would contact police and assume the roles of drivers and passengers for emergency personnel. The indictment also alleges that the defendants would use aggressive driving tactics to induce automobile accidents with other unsuspecting drivers. Following these collisions, the defendants would falsely claim to be injured and submit, by means of the mail, fraudulent accident claims.

The defendants were taken into custody and made initial appearances this week before U.S. Magistrate Judge Zack Hawthorn.

If convicted of the conspiracy charge, the defendants each face up to 20 years in federal prison.

This case is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Port Arthur Police Department; and the National Insurance Crime Bureau and is being prosecuted by Assistant U.S. Attorney Baylor Wortham.

A grand jury indictment is not evidence of guilt, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“THE ASSOCIATED PRESS

ST. PETERSBURG, Fla. — Agents with the FBI and Department of Health and Human Services have executed search warrants at the St. Petersburg offices of a health care insurance company under investigation for possible fraud and mismanagement.

Officials with the two agencies confirmed the raid Thursday at Universal Health Care. The company is already in the process of liquidation under a Leon County judge’s order because of insolvency.

The state Department of Insurance Regulation has accused Universal of financial irregularities including possible fraud. Company officials did not immediately return a telephone call seeking comment.

Universal operated two related companies that provide Medicare Advantage insurance and Medicaid to about 100,000 members. They will be sent letters explaining their options for health care coverage after April 1.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“ALEXANDRIA, VA— Eric Harroun, 30, of Phoenix, was arrested and charged with conspiring to use a rocket propelled grenade (RPG) while fighting with the al Nusrah Front, an organization commonly referred to as “al Qaeda in Iraq” and designated as a foreign terrorist organization since October 2004.

Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.

Harroun, a U.S. citizen who served with the U.S. Army from 2000 to 2003, was charged by criminal complaint with conspiring to use a destructive device outside of the United States, which carries a maximum penalty of life in prison, if convicted. Harroun made his initial appearance today in federal court in Alexandria, Virginia, before U.S. Magistrate Judge Theresa C. Buchanan.

The al Nusrah Front is one of several aliases used by the al Qaeda in Iraq terrorist organization, and since November 2011, the group has claimed responsibility for nearly 600 terrorist attacks in Syria.

According to an affidavit filed in support of the criminal complaint, Harroun allegedly crossed into Syria in January 2013 and fought with members of the al Nusrah Front against the Bashar al Assad regime in Syria. The affidavit alleges that Harroun was trained to use an RPG by members of the terrorist organization and that he fired an RPG and posted online multiple photographs of himself carrying or posing with RPGs and other military weapons. Harroun allegedly participated in attacks led by the al Nusrah Front and was part of an RPG team, for which he carried anti-personnel and anti-armor rockets.

This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Andrew Peterson, Carter Burwell, and Lynn Haaland are prosecuting the case on behalf of the United States, with assistance from the Justice Department’s National Security Division.

Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“Federal prosecutors say two Norfolk supervisors took thousands in bribes

by Doris Taylor

Norfolk, Va. – A run-down building is home to a plumbing company that, according to court records, passed tens of thousands of dollars in bribes to Norfolk supervisors.

A federal indictment says two Norfolk supervisors took money and free plumbing work, but no one in City Hall will say a word about it.

The indictment says the president of A. T. Zoby Mechanical on Azalea Garden Road then overbilled taxpayers so he could recoup the bribe money.

Andrew T. Zoby Jr., is the only one indicted. No one answered the door at his business and his lawyer did not return our call.

Court records do not identify the city supervisors. One is called only Person A. “He’s described as a plumbing supervisor for Norfolk who took up to $20,000 in bribes to steer work to the company.”

The other is called just ‘Person B.’ The indictment says he assisted the city’s Chief Engineer by overseeing plumbing work. Person B also owned rental property in Norfolk, and the indictment says he accepted $17,000 of free plumbing work at his rental properties.

The indictment says A.T. Zoby Mechanical bills Norfolk between $200,000 and $600,000 a year for plumbing work. Prosecutors say the bribes got the company “favorable and preferential treatment,” and the taxpayers paid the price.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“Federal prosecutors say two Norfolk supervisors took thousands in bribes

by Doris Taylor

Norfolk, Va. – A run-down building is home to a plumbing company that, according to court records, passed tens of thousands of dollars in bribes to Norfolk supervisors.

A federal indictment says two Norfolk supervisors took money and free plumbing work, but no one in City Hall will say a word about it.

The indictment says the president of A. T. Zoby Mechanical on Azalea Garden Road then overbilled taxpayers so he could recoup the bribe money.

Andrew T. Zoby Jr., is the only one indicted. No one answered the door at his business and his lawyer did not return our call.

Court records do not identify the city supervisors. One is called only Person A. “He’s described as a plumbing supervisor for Norfolk who took up to $20,000 in bribes to steer work to the company.”

The other is called just ‘Person B.’ The indictment says he assisted the city’s Chief Engineer by overseeing plumbing work. Person B also owned rental property in Norfolk, and the indictment says he accepted $17,000 of free plumbing work at his rental properties.

The indictment says A.T. Zoby Mechanical bills Norfolk between $200,000 and $600,000 a year for plumbing work. Prosecutors say the bribes got the company “favorable and preferential treatment,” and the taxpayers paid the price.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“By Associated Press,

WASHINGTON — The FBI has searched the apartment of former Reagan administration national security adviser Robert McFarlane for evidence of whether he lobbied on behalf of the government of Sudan in violation of federal law.

A search warrant on file in U.S. District Court in Washington shows agents seized items this month including handwritten notes about Sudan and White House documents with classification markings up to Top Secret.

It is against the law for Americans to do business with Sudan because of its alleged support for international terrorism and human rights violations, among other things. Sudan’s president, Omar al-Bashir, has been charged by the International Criminal Court with genocide and other crimes during the deadly conflict in Sudan’s western Darfur region.

In an accompanying affidavit, FBI agent Grayden R. Ridd cited a host of emails between McFarlane and Sudanese government officials obtained prior to the search.

“I believe that these emails are evidence that McFarlane was entering into an agreement with the government of Sudan to lobby the U.S. government officials on behalf of Sudan and to provide it advice during negotiations with the United States,” Ridd wrote. He said he believed the emails are also evidence of an attempt by McFarlane and a Sudanese government official “to hide McFarlane’s relationship with Sudan by construing the agreement to make it appear that his contractual relationship was with Qatar, when in fact it was not.”

The affidavit said that the FBI investigation has established that in February 2009, McFarlane entered into a one-year agreement with the government of Sudan to act as its consultant and to lobby the U.S. government on its behalf.

Ridd wrote that the source of the emails to McFarlane appeared to be someone from the Sudanese intelligence service.

The affidavit is listed as “under seal” but is viewable online.

The FBI is also investigating whether McFarlane violated a law that requires anyone working as a foreign agent of another country to disclose that to the Foreign Agent Registration Act Unit of the Justice Department.

The investigation into McFarlane was first reported by The Washington Post.

McFarlane has not been charged with a crime. The case is being handled by the U.S. attorney’s office for the Eastern District of Virginia. A spokesman for the office, Peter Carr, said McFarlane is cooperating with the ongoing investigation and, through his counsel, has asserted his innocence.

McFarlane’s lawyer, Barry Levine, did not immediately return telephone and email messages Thursday. Levine told The Post that McFarlane didn’t violate any laws.

“He has devoted his entire adult life to the interests of this country, and he cares deeply about the people of Darfur,” Levine told the newspaper.”

Affidavit may be found here

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
OFAC SDN Removal Videos:

OFAC Litigation – SDN List Removal

OFAC SDN List Removal

OFAC SDN Removal Attorneys

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“By Associated Press,

WASHINGTON — The FBI has searched the apartment of former Reagan administration national security adviser Robert McFarlane for evidence of whether he lobbied on behalf of the government of Sudan in violation of federal law.

A search warrant on file in U.S. District Court in Washington shows agents seized items this month including handwritten notes about Sudan and White House documents with classification markings up to Top Secret.

It is against the law for Americans to do business with Sudan because of its alleged support for international terrorism and human rights violations, among other things. Sudan’s president, Omar al-Bashir, has been charged by the International Criminal Court with genocide and other crimes during the deadly conflict in Sudan’s western Darfur region.

In an accompanying affidavit, FBI agent Grayden R. Ridd cited a host of emails between McFarlane and Sudanese government officials obtained prior to the search.

“I believe that these emails are evidence that McFarlane was entering into an agreement with the government of Sudan to lobby the U.S. government officials on behalf of Sudan and to provide it advice during negotiations with the United States,” Ridd wrote. He said he believed the emails are also evidence of an attempt by McFarlane and a Sudanese government official “to hide McFarlane’s relationship with Sudan by construing the agreement to make it appear that his contractual relationship was with Qatar, when in fact it was not.”

The affidavit said that the FBI investigation has established that in February 2009, McFarlane entered into a one-year agreement with the government of Sudan to act as its consultant and to lobby the U.S. government on its behalf.

Ridd wrote that the source of the emails to McFarlane appeared to be someone from the Sudanese intelligence service.

The affidavit is listed as “under seal” but is viewable online.

The FBI is also investigating whether McFarlane violated a law that requires anyone working as a foreign agent of another country to disclose that to the Foreign Agent Registration Act Unit of the Justice Department.

The investigation into McFarlane was first reported by The Washington Post.

McFarlane has not been charged with a crime. The case is being handled by the U.S. attorney’s office for the Eastern District of Virginia. A spokesman for the office, Peter Carr, said McFarlane is cooperating with the ongoing investigation and, through his counsel, has asserted his innocence.

McFarlane’s lawyer, Barry Levine, did not immediately return telephone and email messages Thursday. Levine told The Post that McFarlane didn’t violate any laws.

“He has devoted his entire adult life to the interests of this country, and he cares deeply about the people of Darfur,” Levine told the newspaper.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“By Associated Press,

WASHINGTON — The FBI has searched the apartment of former Reagan administration national security adviser Robert McFarlane for evidence of whether he lobbied on behalf of the government of Sudan in violation of federal law.

A search warrant on file in U.S. District Court in Washington shows agents seized items this month including handwritten notes about Sudan and White House documents with classification markings up to Top Secret.

It is against the law for Americans to do business with Sudan because of its alleged support for international terrorism and human rights violations, among other things. Sudan’s president, Omar al-Bashir, has been charged by the International Criminal Court with genocide and other crimes during the deadly conflict in Sudan’s western Darfur region.

In an accompanying affidavit, FBI agent Grayden R. Ridd cited a host of emails between McFarlane and Sudanese government officials obtained prior to the search.

“I believe that these emails are evidence that McFarlane was entering into an agreement with the government of Sudan to lobby the U.S. government officials on behalf of Sudan and to provide it advice during negotiations with the United States,” Ridd wrote. He said he believed the emails are also evidence of an attempt by McFarlane and a Sudanese government official “to hide McFarlane’s relationship with Sudan by construing the agreement to make it appear that his contractual relationship was with Qatar, when in fact it was not.”

The affidavit said that the FBI investigation has established that in February 2009, McFarlane entered into a one-year agreement with the government of Sudan to act as its consultant and to lobby the U.S. government on its behalf.

Ridd wrote that the source of the emails to McFarlane appeared to be someone from the Sudanese intelligence service.

The affidavit is listed as “under seal” but is viewable online.

The FBI is also investigating whether McFarlane violated a law that requires anyone working as a foreign agent of another country to disclose that to the Foreign Agent Registration Act Unit of the Justice Department.

The investigation into McFarlane was first reported by The Washington Post.

McFarlane has not been charged with a crime. The case is being handled by the U.S. attorney’s office for the Eastern District of Virginia. A spokesman for the office, Peter Carr, said McFarlane is cooperating with the ongoing investigation and, through his counsel, has asserted his innocence.

McFarlane’s lawyer, Barry Levine, did not immediately return telephone and email messages Thursday. Levine told The Post that McFarlane didn’t violate any laws.

“He has devoted his entire adult life to the interests of this country, and he cares deeply about the people of Darfur,” Levine told the newspaper.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“Five Doctors, Four Pharmacists, and Home Health Agency Owner Among Those Indicted in Follow-Up to the Babubhai Patel Case

Thirteen individuals have been charged in a large-scale health care fraud and drug distribution scheme, United States Attorney Barbara L. McQuade announced today.

McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso of the Drug Enforcement Administration, Special Agent in Charge Robert D. Foley, III of the Federal Bureau of Investigation, and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.

The superseding indictment, unsealed yesterday, adds 13 new defendants and new charges to a 2011 indictment, which charged Canton Pharmacist Babubhai ‘Bob” Patel with overseeing a massive health care fraud and drug distribution ring at more than 20 pharmacies that he owned and controlled in metro-Detroit.

The 13 new defendants named in the superseding indictment include five doctors, four pharmacists, and a home health agency owner:

• pharmacist Mehul Patel, 34, of Canton
• pharmacist Pradeep Pandya, 49, of Grand Blanc
• pharmacist Vikas Sharma, 34, of Windsor
• pharmacist Mukesh Khunt, 33, of Toronto
• physicians Richard Utarnachitt, 71; of Clinton Township
• physician Ruben Benito, 72, of Madison Heights
• physician Javaid Bashir, 59, of Jackson
• physician Carl Fowler, 60, of West Bloomfield
• physician Rajat Daniel, 47, of West Bloomfield
• home health agency owner Vinod Patel, 40, of Canton
• business associate Atul Patel, 31, of Canton
• marketer Anthony Macklin, a.k.a. “Jimbo,” of Detroit
• marketer Michael Thoran, a.k.a. “Ace,” also of Detroit

The 21-count superseding indictment charges that Babubhai Patel was the owner and controller of approximately 26 Michigan pharmacies. The indictment alleges that Babubhai Patel would offer and provide kickbacks, bribes, and other illegal benefits to physicians to induce those physicians to write prescriptions for patients with Medicare, Medicaid, and private insurance. Patel would also direct that those prescriptions be presented to one of the Patel Pharmacies for billing. In exchange for their kickbacks and inducements, the physicians would write prescriptions for the patients and bill the relevant insurers for services supposedly provided to the patients without regard to the medical necessity of those prescriptions and services. The physicians would direct the patients to fill their prescriptions at one of the Patel Pharmacies, where Babubhai Patel and his pharmacists would bill insurers, including Medicare, Medicaid, and private insurers, for dispensing the medications, despite the fact that the medications were medically unnecessary and, in many cases, never provided. Patients were recruited into the scheme by patient recruiters or “marketers,” who would pay kickbacks and bribes to patients in exchange for the patients’ permitting the Patel Pharmacies and the physicians associated with Patel to bill their insurance for medications and services that were medically unnecessary and/or never provided.

The indictment further alleges a conspiracy to distribute controlled substances at the Patel pharmacies to facilitate the submission of false and fraudulent claims to Medicare, Medicaid, and private insurers. According to the indictment, Babubhai Patel and his associates paid physicians kickbacks for prescriptions for controlled substances for their patients and directed those patients to fill the prescriptions at a Patel Pharmacy. The controlled substances included the Schedule II drug oxycodone (Oxycontin), the Schedule III drug hydrocodone (Vicodin, Lortab), the Schedule IV drug alprazolam (Xanax), and the Schedule V drug cough syrup with codeine. According to the indictment, prescriptions for these drugs were written outside the course of legitimate medical practice. Babubhai Patel and his pharmacists would then dispense the controlled drugs to patients without medical necessity. The distribution of controlled substances in this manner was intended, in part, as a kickback to the patients for agreeing to enable their insurance cards to be billed for medications purportedly dispensed at the Patel Pharmacies. The indictment also alleges that Babubhai Patel and his pharmacists dispensed controlled substances outside the scope of legitimate medical practice to patient recruiters or “marketers,” as a kickback for their efforts in to recruit patients into the scheme.

In addition to his pharmacies, the indictment alleges that Babubhai Patel had an ownership interest in a home health agency managed by his brother, Vinod Patel. The indictment alleges that Vinod Patel, Babubhai Patel, and others bribed physicians and other referral sources for referrals to that home health agency and then billed the Medicare program for home health services that were medically unnecessary and never provided.

Of the 26 defendants originally charged in the indictment, six, including Babubhai Patel and four pharmacists, were convicted at a trial last summer. Fifteen additional defendants, including six pharmacists and two doctors, have pleaded guilty in the case. The five remaining defendants whose charges were renewed in the superseding indictment are set for trial on June 10, 2013. On February 1, 2013, Babubhai Patel was sentenced to 17 years’ imprisonment by U.S. District Judge Arthur J. Tarnow.

“Taxpayers fund Medicare and Medicaid to provide health care for needy citizens,” McQuade said. “We hope that doctors and pharmacists will take note that if they exploit these programs for personal profit, they will face serious consequences.”

Robert L. Corso, Special Agent in Charge of DEA’s Detroit Field Division stated, “Confronting the illegal diversion and abuse of controlled pharmaceuticals is a top priority of DEA and our law enforcement partners. Today’s indictments, particularly of the medical professionals are significant. It is alleged that these individuals abused their positions of trust and endangered the lives of countless people by illegally distributing opiate painkillers and depressants throughout southeast Michigan. This investigation makes it clear that the DEA and our partners in law enforcement will continue to investigate and bring to justice those individuals that are responsible for the illegal distribution of prescription medicines.”

FBI Special Agent Robert Foley stated, “Dishonest health care providers and pharmacists who exploit Medicare and Medicaid through fraudulent billing and other schemes will be held accountable for their crimes. The FBI remains committed to investigating this type of fraud and bringing those who abuse the system to justice.”

“Schemes involving the illegal diversion and/or distribution of controlled substances go hand and hand with the fraudulent billing of Medicare and other health care programs,” said Lamont Pugh, III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General—Chicago Regional Office. “The OIG and our law enforcement partners are acutely aware of the potential for those who commit health care fraud to utilize this blended approach when seeking to line their pockets with tax payer dollars. The indictments and arrests announced today illustrate our combined commitment and effort to protect the safety and well-being of the public and as well as the health care programs they rely upon.”

The investigation in this case was handled by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Wayne F. Pratt.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“Five Doctors, Four Pharmacists, and Home Health Agency Owner Among Those Indicted in Follow-Up to the Babubhai Patel Case

Thirteen individuals have been charged in a large-scale health care fraud and drug distribution scheme, United States Attorney Barbara L. McQuade announced today.

McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso of the Drug Enforcement Administration, Special Agent in Charge Robert D. Foley, III of the Federal Bureau of Investigation, and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services.

The superseding indictment, unsealed yesterday, adds 13 new defendants and new charges to a 2011 indictment, which charged Canton Pharmacist Babubhai ‘Bob” Patel with overseeing a massive health care fraud and drug distribution ring at more than 20 pharmacies that he owned and controlled in metro-Detroit.

The 13 new defendants named in the superseding indictment include five doctors, four pharmacists, and a home health agency owner:

• pharmacist Mehul Patel, 34, of Canton
• pharmacist Pradeep Pandya, 49, of Grand Blanc
• pharmacist Vikas Sharma, 34, of Windsor
• pharmacist Mukesh Khunt, 33, of Toronto
• physicians Richard Utarnachitt, 71; of Clinton Township
• physician Ruben Benito, 72, of Madison Heights
• physician Javaid Bashir, 59, of Jackson
• physician Carl Fowler, 60, of West Bloomfield
• physician Rajat Daniel, 47, of West Bloomfield
• home health agency owner Vinod Patel, 40, of Canton
• business associate Atul Patel, 31, of Canton
• marketer Anthony Macklin, a.k.a. “Jimbo,” of Detroit
• marketer Michael Thoran, a.k.a. “Ace,” also of Detroit

The 21-count superseding indictment charges that Babubhai Patel was the owner and controller of approximately 26 Michigan pharmacies. The indictment alleges that Babubhai Patel would offer and provide kickbacks, bribes, and other illegal benefits to physicians to induce those physicians to write prescriptions for patients with Medicare, Medicaid, and private insurance. Patel would also direct that those prescriptions be presented to one of the Patel Pharmacies for billing. In exchange for their kickbacks and inducements, the physicians would write prescriptions for the patients and bill the relevant insurers for services supposedly provided to the patients without regard to the medical necessity of those prescriptions and services. The physicians would direct the patients to fill their prescriptions at one of the Patel Pharmacies, where Babubhai Patel and his pharmacists would bill insurers, including Medicare, Medicaid, and private insurers, for dispensing the medications, despite the fact that the medications were medically unnecessary and, in many cases, never provided. Patients were recruited into the scheme by patient recruiters or “marketers,” who would pay kickbacks and bribes to patients in exchange for the patients’ permitting the Patel Pharmacies and the physicians associated with Patel to bill their insurance for medications and services that were medically unnecessary and/or never provided.

The indictment further alleges a conspiracy to distribute controlled substances at the Patel pharmacies to facilitate the submission of false and fraudulent claims to Medicare, Medicaid, and private insurers. According to the indictment, Babubhai Patel and his associates paid physicians kickbacks for prescriptions for controlled substances for their patients and directed those patients to fill the prescriptions at a Patel Pharmacy. The controlled substances included the Schedule II drug oxycodone (Oxycontin), the Schedule III drug hydrocodone (Vicodin, Lortab), the Schedule IV drug alprazolam (Xanax), and the Schedule V drug cough syrup with codeine. According to the indictment, prescriptions for these drugs were written outside the course of legitimate medical practice. Babubhai Patel and his pharmacists would then dispense the controlled drugs to patients without medical necessity. The distribution of controlled substances in this manner was intended, in part, as a kickback to the patients for agreeing to enable their insurance cards to be billed for medications purportedly dispensed at the Patel Pharmacies. The indictment also alleges that Babubhai Patel and his pharmacists dispensed controlled substances outside the scope of legitimate medical practice to patient recruiters or “marketers,” as a kickback for their efforts in to recruit patients into the scheme.

In addition to his pharmacies, the indictment alleges that Babubhai Patel had an ownership interest in a home health agency managed by his brother, Vinod Patel. The indictment alleges that Vinod Patel, Babubhai Patel, and others bribed physicians and other referral sources for referrals to that home health agency and then billed the Medicare program for home health services that were medically unnecessary and never provided.

Of the 26 defendants originally charged in the indictment, six, including Babubhai Patel and four pharmacists, were convicted at a trial last summer. Fifteen additional defendants, including six pharmacists and two doctors, have pleaded guilty in the case. The five remaining defendants whose charges were renewed in the superseding indictment are set for trial on June 10, 2013. On February 1, 2013, Babubhai Patel was sentenced to 17 years’ imprisonment by U.S. District Judge Arthur J. Tarnow.

“Taxpayers fund Medicare and Medicaid to provide health care for needy citizens,” McQuade said. “We hope that doctors and pharmacists will take note that if they exploit these programs for personal profit, they will face serious consequences.”

Robert L. Corso, Special Agent in Charge of DEA’s Detroit Field Division stated, “Confronting the illegal diversion and abuse of controlled pharmaceuticals is a top priority of DEA and our law enforcement partners. Today’s indictments, particularly of the medical professionals are significant. It is alleged that these individuals abused their positions of trust and endangered the lives of countless people by illegally distributing opiate painkillers and depressants throughout southeast Michigan. This investigation makes it clear that the DEA and our partners in law enforcement will continue to investigate and bring to justice those individuals that are responsible for the illegal distribution of prescription medicines.”

FBI Special Agent Robert Foley stated, “Dishonest health care providers and pharmacists who exploit Medicare and Medicaid through fraudulent billing and other schemes will be held accountable for their crimes. The FBI remains committed to investigating this type of fraud and bringing those who abuse the system to justice.”

“Schemes involving the illegal diversion and/or distribution of controlled substances go hand and hand with the fraudulent billing of Medicare and other health care programs,” said Lamont Pugh, III, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General—Chicago Regional Office. “The OIG and our law enforcement partners are acutely aware of the potential for those who commit health care fraud to utilize this blended approach when seeking to line their pockets with tax payer dollars. The indictments and arrests announced today illustrate our combined commitment and effort to protect the safety and well-being of the public and as well as the health care programs they rely upon.”

The investigation in this case was handled by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Wayne F. Pratt.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

“BY PETER LATTMAN

As head of the country’s largest pension fund, Federico R. Buenrostro wielded vast influence in the money management world.

From 2002 to 2008, Mr. Buenrostro served as chief executive of the California Public Employees’ Retirement System, or Calpers, which allocates more than $200 billion to investment firms across the globe.

Federal prosecutors say that Mr. Buenrostro abused that position. In an indictment filed in Federal District Court in San Francisco on Monday, the United States attorney charged Mr. Buenrostro and his friend, Alfred J. Villalobos, with defrauding the private equity firm Apollo Global Management.

The corruption charges against Mr. Buenrostro and Mr. Villalobos are connected to a nationwide pay-to-play scandal that erupted several years ago. Regulators from numerous states, including California and New Mexico, have cracked down on widespread influence peddling in how their state pension funds were invested.

The scandals focused on the role of middlemen, or placement agents, who charged lucrative fees to help money managers win business from state pension funds. In some cases, placement agents proved to be unlicensed fixers who received illegal kickbacks from pension officials. A number of pension officials and middlemen have served prison time, including Alan G. Hevesi, the former head of New York’s state pension fund.

The government claims that Mr. Buenrostro and Mr. Villalobos invented a crude scheme that tricked Apollo, one of the world’s largest private equity firms, into paying Mr. Villalobos at least $14 million in fees for his help in securing an investment from Calpers.

“We are extremely pleased that law enforcement authorities are moving to hold individuals accountable for activities which violate the public trust,” Rob Feckner, the board president of Calpers, said in a statement.

A lawyer for Mr. Buenrostro, William H. Kimball, declined to comment. Mr. Villalobos, who filed for personal bankruptcy in 2010, could not be reached for comment.

In the insular world of private equity, the charges struck many executives as unusual given Apollo and Calpers deep and lucrative ties. The California fund has invested at least $3 billion with Apollo, including a 2007 transaction in which it paid $600 million for a 9 percent stake in the firm.

For years, Apollo had retained Mr. Villalobos — a former Calpers board member — as a placement agent, agreeing to pay him for his help in securing investments from state pensions. Apollo paid at least $48 million in fees to Mr. Villalobos for his help in arranging for Calpers and other pensions to invest in its firm.

But to comply with securities laws and avoid perceived conflicts of interest, Apollo asked that Mr. Villalobos disclose to Calpers that he would receive payments related to the pension fund’s investments.

Prosecutors said that Mr. Buenrostro, 64, and Mr. Villalobos, 69, worked together, and fabricated letters from Calpers that purportedly signed off on the payments from Apollo to Mr. Villalobos.

“The allegations in the indictment unsealed today by the United States Department of Justice, if true, are troubling,” Charles V. Zehren, an Apollo spokesman, said Monday. “Apollo has always followed best practices in handling its placement agent relationships, and was not aware of any misconduct engaged in by Mr. Villalobos during the time that he worked with Apollo.”

The charges come after a civil lawsuit brought last year against Mr. Buenrostro and Mr. Villalobos by the Securities and Exchange Commission. And in 2011, a Calpers internal investigation concluded that Mr. Villalobos had turned Mr. Buenrostro into “a puppet” who directed Calpers investments to his clients. The firm’s report said that Mr. Villalobos lavished bribes on Mr. Buenrostro, including trips on private jets and gambling junkets at Nevada casinos.

When Mr. Buenrostro left Calpers in 2008, he took a job working with Mr. Villalobos as a placement agent.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“By Lawrence Hurley

(Reuters) – The Supreme Court agreed on Monday to consider in what circumstances the assets of a defendant can be frozen before trial.

The question before the high court is whether prosecutors can prevent defendants from using their assets to pay for a lawyer without a hearing on the issue.

The case concerns Kerri Kaley, a sales representative for a subsidiary of Johnson & Johnson Inc, who was indicted by federal prosecutors in Florida for reselling certain medical devices, including sutures, that she obtained from hospitals to which she had previously sold the same products.

Kaley and her husband Brian were both indicted in February 2007 on seven counts. Prior to the trial federal prosecutors sought to seize their assets.

The case will be argued and decided in the court’s next term, which starts in October and runs until June 2014.

The case is Kaley v. United States, U.S. Supreme Court, No. 12-464.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

Federal Mail Fraud Crimes

Federal Crimes – Appeal

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

“By Terry Frieden

A Chinese aerospace contractor, who one senior lawmaker suspects is a spy, made his first appearance in federal court on Monday.

Bo Jiang worked at NASA’s Langley’s Research Center in Hampton, Virginia, and was seized over the weekend as he boarded a flight to Beijing at Dulles airport outside Washington.

Jiang was charged with making false statements to U.S. authorities by failing to disclose all of the electronic devices he was carrying on his one-way flight.

He was jailed following his appearance in federal court in Norfolk.

U.S. Rep. Frank Wolf, R-Virginia, said Jiang recently arranged travel after the lawmaker went public with his concerns about NASA security.

Wolf told reporters Monday that he believes Jiang had access to highly sensitive documents, including source codes for high-tech imaging used in missiles, unmanned aerospace equipment and other technology desired by the Chinese government.

Wolf, who oversees congressional funding of several agencies, believes Jiang was spying.

“We’ll know for sure after they (the FBI) examine his hard drive,” he said.

NASA Administrator Charles Bolden is scheduled to testify about NASA security at a hearing on Wednesday before Wolf’s committee.”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Detention Hearing

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?