Robbery of Bank of the West Branch in Oklahoma City

OKLAHOMA CITY—James E. Finch, Special Agent in Charge of the Federal Bureau of Investigation in Oklahoma, announced the robbery of the Bank of the West, 1600 S.W. 89th Street, Oklahoma City, Oklahoma.

At approximately 9:22 this morning, an unknown male entered the bank and showed the teller a note demanding money. The note also indicated the unknown male had a firearm but one was not seen. The robber gathered the money and exited the bank traveling on foot in an unknown direction. No one was injured in today’s robbery.

The robber was described as a Native American or Hispanic male, 5’9” to 6’0” tall, approximately 200 to 220 pounds, black hair with gray in it gathered in a ponytail. The robber wore a red in color baseball-style cap, blue jeans, and a dark colored T-shirt.

The robbery is being investigated by the FBI and the Oklahoma City Police Department.

Anyone with information regarding this robbery should contact the FBI at (405) 290-7770 (24-hour number). You may remain anonymous.

OPERATION MONEY FISH: Florida Mafia Crew Dismantled

In Operation Money Fish, the Bonanno crew manufactured counterfeit payroll checks.

Members of the New York-based Bonanno crime family were making millions of dollars in South Florida cashing counterfeit checks, running telemarketing scams, defrauding Medicare, and stealing and selling people’s identities. But when they hooked up with a shady businessman to help them launder all that money, they got more than they bargained for.

The businessman with supposed connections in the banking industry was really one of our undercover agents, and he infiltrated the mafia crew for nearly a year. The evidence he gathered, along with intercepted phone calls and other electronic surveillance, was enough to put the entire 11-member operation out of business and behind bars.

  

“The mafia has always been in South Florida,” our agent explained. “Each of New York’s five families has crews that operate here. They make a lot of money and send part of it back to the main guys up north.”

The Bonanno family’s criminal enterprise in South Florida—led by Tommy Fiore, the nephew of reputed Bonanno capo Gerry Chili—was wide ranging. In addition to the scams mentioned above, the crew also participated in arson, extortion, drug trafficking, and buying and selling stolen cigarettes, TVs, and other ill-gotten goods.

Operation Money Fish began in the summer of 2008, when our agent—who was known as Dave Stone—met Fiore. The Bonanno crew was manufacturing counterfeit payroll checks from large companies and needed help cashing them. They would copy a legitimate check, change the account numbers and the amount, and get Dave Stone to use his banking connections to turn the bad paper into cash. Dave and the crew then split the profits. (In reality, since we controlled the operation, no businesses were actually defrauded.)

The crew’s most lucrative scam, though, came from “boiler rooms”—bogus telemarketing operations that are rampant in South Florida. A dozen people working the phones out of someone’s condo can generate big profits. A popular pitch now involves the resale of time share properties. The criminal telemarketers claim they will help people resell their time share, or the fee charged will be refunded in full. Unsuspecting victims on the other end of the line—mostly older people unable to sell the properties on their own—send in the $5,000 or $6,000 fee, and that’s the last they ever see of their money. No services are rendered, and none were ever intended to be.

With the overwhelming evidence against them, the Bonanno crew all pled guilty to racketeering and other charges. “It was a good feeling to bring these guys down,” our undercover agent said. “They were getting away with a lot of crimes. There’s no telling how many people they had hurt or swindled before we got involved.”

But “Dave Stone” and his colleagues on the FBI’s organized crime squads understand that while you can disrupt the mafia’s activities in South Florida and elsewhere, it’s only a matter of time before the bosses in New York establish other crews.

“Absolutely they will try to start up again,” the agent said. “The Bonanno family in New York—like the other families—has to have somebody down here making money because the guys at the top don’t do anything. They rely on the crews to support them. But if they do show up again,” he said, “we will be ready.”

Former Nexus Technologies Inc. Employees and Partner Sentenced for Roles in Foreign Bribery Scheme Involving Vietnamese Officials

Company Ordered to Turn Over Assets to Court, Cease All Operations

WASHINGTON—Three former employees and a partner of Nexus Technologies Inc. (Nexus), a Philadelphia-based company, were sentenced late yesterday for their roles in a conspiracy to bribe officials of the Vietnamese government in exchange for lucrative contracts to supply equipment and technology to Vietnamese government agencies, in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.

The president and owner of the company, Nam Nguyen, was sentenced to 16 months in prison and ordered to serve two years of supervised release following the prison term. His sibling, An Nguyen, was sentenced to nine months in prison, followed by three years of supervised release. His other sibling, Kim Nguyen, was sentenced to two years of probation and ordered to pay a $20,000 fine. Joseph Lukas, a former partner with Nexus, also was sentenced to two years of probation and ordered to pay a $1,000 fine.

Nexus; Nam Nguyen, 54, of Houston and Vietnam; Kim Nguyen, 41, of Philadelphia; and An Nguyen, 34, of Philadelphia, were charged in a superseding indictment on Oct. 30, 2009, with conspiracy, violations of the FCPA, violations of the Travel Act in connection with commercial bribes, and money laundering. Nexus pleaded guilty on March 16, 2010, to all the charges filed against the company in the superseding indictment, and agreed to cease operations and dissolve.

Nam and An Nguyen pleaded guilty on March 16, 2010, to conspiracy, substantive FCPA violations, violating the Travel Act and money laundering. Kim Nguyen pleaded guilty on March 16, 2010, to conspiracy, substantive FCPA violations and money laundering. Lukas pleaded guilty on June 29, 2009, to conspiracy and to violating the FCPA.

According to court documents, Nexus was a privately-owned export company that identified U.S. vendors for contracts opened for bid by the Vietnamese government and other companies operating in Vietnam to purchase a wide variety of equipment and technology, including underwater mapping equipment, bomb containment equipment, helicopter parts, chemical detectors, satellite communication parts and air tracking systems. Nam Nguyen negotiated the contracts and bribes with the Vietnamese government agencies and employees. Kim Nguyen, vice president of the company, oversaw the U.S. operations and handled finances. An Nguyen identified U.S. vendors to supply the goods needed to fulfill the contracts.

In connection with the guilty pleas, Nexus and the Nguyens admitted that from 1999 to 2008 they agreed to pay, and knowingly paid, bribes to Vietnamese government officials in exchange for contracts with the agencies and companies for which the bribe recipients worked. The bribes were falsely described as “commissions” in the company’s records. In pleading guilty, the corporation, Nexus, also acknowledged that it operated primarily through criminal means and agreed to cease operations.

The case was prosecuted by Trial Attorney Kathleen M Hamann of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. The case was investigated by the Philadelphia, Newark, N.J., and Houston field offices of the FBI and the U.S. Department of Commerce, Office of Export Enforcement.

The Justice Department acknowledges and expresses its appreciation for the assistance provided by the authorities of the Independent Commission Against Corruption of the Hong Kong Special Administrative Region.

Shelton Developer Sentenced to Six Years in Federal Prison for Corruption, Currency Structuring Offenses

The United States Attorney’s Office for the District of Connecticut announced that JAMES BOTTI, 47, of Shelton, was sentenced today by Senior United States District Judge Charles S. Haight in New Haven to 72 months of imprisonment, followed by three years of supervised release, for public corruption and currency structuring offenses. Judge Haight also ordered BOTTI to pay a fine in the amount of $25,000.

On April 1, 2010, a federal jury found BOTTI guilty of one count of mail fraud. According to the evidence presented during the trial, BOTTI used the U.S. Mail to execute a scheme to defraud the citizens of Shelton of the honest services of its public officials relating to a project that BOTTI was developing at

828 Bridgeport Avenue

in Shelton. The project was approved by the Shelton Planning and Zoning Commission on June 20, 2006. On June 28, 2006, the Shelton Planning and Commission mailed a letter of approval to BOTTI’s attorney, which notified BOTTI that the Commission had approved the

828 Bridgeport Avenue

project.

The jury was deadlocked on two additional counts in the indictment on which BOTTI was tried, conspiracy to defraud and bribery of a public official. The court declared a mistrial relating to those counts.

On November 10, 2009, another federal jury found BOTTI guilty of one count of conspiracy to structure cash transactions and one count of structuring cash transactions. The jury found BOTTI not guilty of two counts of making false statements to the Internal Revenue Service - Criminal Investigation.

According to the evidence presented during the trial, BOTTI conspired with his father, Peter C. Botti, to structure cash deposits in order to hide the existence of a large amount of BOTTI’s cash from the IRS and federal law enforcement authorities.

Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.

>From approximately June 2006 through January 2007, JAMES BOTTI, or Peter Botti at JAMES BOTTI’s direction, made numerous deposits of cash in amounts less than $10,001 at various financial institutions in order to evade the requirement that financial institutions file CTRs. The cash was deposited into bank accounts in the name of either JAMES BOTTI or Peter Botti. The cash that was deposited into Peter Botti’s accounts was distributed by check for the benefit of JAMES BOTTI, to an account controlled by BOTTI, or to a person associated with JAMES BOTTI. In addition, JAMES BOTTI structured large cash payments to a credit card company.

As a result of his conviction of these currency structuring offenses, BOTTI was ordered to forfeit $120,500 to the government.

Today, Judge Haight ordered BOTTI to serve 72 months of imprisonment on the mail fraud conviction, and concurrent 60-month terms of imprisonment on each of the two structuring convictions.

On June 1, 2009, Peter C. Botti pleaded guilty to one count of structuring cash transactions. He awaits sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant United States Attorney Rahul Kale.

Sales Agent for A&O Entities in Richmond Pleads Guilty to Misleading Investors

RICHMOND, VA—Tomme Bromseth, 68, of Blackstone, Va., pleaded guilty today to mail fraud and structuring financial transactions to evade reporting requirements in conjunction with his role as a sales agent for A&O Life Funds and various related A&O entities.

U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Assistant Attorney General Lanny A. Breuer of the Criminal Division made the announcement after the plea was accepted by United States Magistrate Judge Dennis W. Dohnal.

Bromseth waived indictment and pleaded guilty to a criminal information alleging one count of mail fraud and and one count of structuring financial transactions to evade reporting requirements. Bromseth faces a maximum penalty of 20 years in prison for the mail fraud charge and a maximum term of five years in prison for the structuring charge.

According to court documents, Bromseth admitted to making misrepresentations about the risks associated with A&O investments, as well as his qualifications to sell such investments. Bromseth sold over $3 million in A&O products to 15 investors between July 2006 and November 2007.

This continuing investigation is being conducted by the U.S. Postal Inspection Service, Internal Revenue Service, and FBI, with significant assistance from the Texas State Securities Board. These cases are being prosecuted by Assistant U.S. Attorneys Michael S. Dry and Jessica Aber Brumberg from the Eastern District of Virginia and Trial Attorney Albert B. Stieglitz Jr., of the Criminal Division’s Fraud Section.

The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force, an interagency national task force.

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

New Jersey Man Charged in $1.8 Million Bank Fraud Scheme

An indictment was unsealed today against Brian Geller charging a multi-year bank fraud scheme that netted him over $1.8 million between the summer of 2005 and the summer of 2009, announced United States Attorney Zane David Memeger. Geller was also charged with engaging in transactions over $10,000 with the proceeds of the fraud.

The 22-count indictment charges that Geller, while an employee of JPMorgan Chase Services, manipulated JPMorgan Chase Bank’s internal books and records and caused the Bank to wire transfer to his account, to accounts of his family, and to accounts in which his life partner had right, title, interest or control. The indictment claims that among the wire transfers of funds was one in 2005 for over $499,500, one in 2008 for $583,444.99, and one in 2009 for another $583,444.99.

INFORMATION REGARDING THE DEFENDANT

NAME: Brian Geller

ADDRESS: Sewell, New Jersey

AGE OR YEAR OF BIRTH: 1978

If convicted, Geller faces a statutory maximum possible sentence of 240 years in prison, a fine of $6.25 million, $2,200 in special assessments, and up to five years’ supervised release.

The case was investigated by the FBI is being prosecuted by Assistant United States Attorney Pamela Foa.

Owner of North Attleboro Seafood Dealer Pleads Guilty to $7 Million Bank Fraud

BOSTON, MA—The owner of Ocean Fresh Seafood, Inc. was convicted in federal court late yesterday of engaging in a scheme to defraud Wells Fargo Business Credit, Inc., a division of Wells Fargo Bank NA, of at least $7 million.

United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation - Boston Field Office announced that ROBERT COUTU, 59, of Cumberland, Rhode Island pleaded guilty before U.S. District Judge Nancy Gertner to conspiracy to commit bank fraud, bank fraud, and money laundering.

At the plea hearing, the prosecutor told the court that Coutu was the owner of Ocean Fresh Seafood, Inc., headquartered in North Attleboro, when he orchestrated a scheme to defraud Wells Fargo. Since 2002, Wells Fargo had extended a line of credit to Ocean Fresh, secured by Ocean Fresh’s accounts receivable and inventory. Coutu, with the assistance of other Ocean Fresh employees, falsely inflated Ocean Fresh’s receivables and inventory balances in order to borrow millions of dollars more than his actual business activity would have permitted. To accomplish the scheme Coutu, and others, created false invoices and wired funds from Ocean Fresh’s bank account to accounts managed by affiliates and friends of Coutu to give the appearance that Ocean Fresh was buying and selling much more product than it actually was. Ocean Fresh’s former Controllers, Christopher Day and Cynthia Larose were indicted for conspiracy to commit bank fraud, along with Coutu. Larose has pleaded guilty and is awaiting sentencing. Day is awaiting trial.

Judge Gertner scheduled the sentencing hearing for January 19, 2011. Coutu faces up to 30 years’ imprisonment, to be followed by five years’ supervised release and a $1 million fine on the bank fraud charge; up to 10 years' imprisonment, to be followed by three years’ supervised release and a $250,000 fine on the money laundering charges; and five years’ imprisonment, three years’ supervised release and a $250,000 fine on the conspiracy charge.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service’s Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili N. Thomadakis of Ortiz’s Economic Crimes Unit.

Former Wethersfield Resident Admits Operating $100 Million Ponzi Scheme

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL S. GOLDBERG, 39, formerly of Wethersfield, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to three counts of wire fraud stemming from his operation of a $100 million “Ponzi” scheme that defrauded investors of more than $30 million over an approximately 12-year period.

“For 12 years, this defendant lured hundreds of investors with one false promise after another, the end result being financial misery for many of them,” stated U.S. Attorney Fein. “The U.S. Attorney’s office is committed to investigating financial fraud crimes, seeking appropriate prison terms and securing restitution for victims.”

“Michael Goldberg’s actions have devastated the financial security of hundreds of innocent investors,” stated FBI Special Agent in Charge Mertz. “The FBI, along with our law enforcement and regulatory partners will continue to police the actions of those preying upon the investing public.”

According to court documents and statements made in court, from approximately 1997 to November 2009, GOLDBERG devised and executed a scheme to defraud numerous investors by soliciting millions of dollars of funds under false pretenses, failing to invest the investors’ funds as promised, paying existing investors with new investors’ money, and misappropriating and converting investors’ funds to GOLDBERG’s own benefit and the benefit of others without the knowledge or authorization of the investors. Initially, GOLDBERG transacted with investors in his own name. Beginning in September 2005, GOLDBERG received investments through Michael S. Goldberg, LLC, which at times did business as Acquisitions Unlimited Group.

GOLDBERG’s scheme to defraud investors involved principally two different types of misrepresentations. First, GOLDBERG solicited individuals to invest money in “diamond contracts.” In order to induce individuals to invest money, GOLDBERG represented that he would use investors’ money to purchase diamonds at extremely low prices from vendors in New York City, and that he would then resell those diamonds immediately at a substantial profit. GOLDBERG represented that the profits from the resale of the diamonds would enable him to pay investors a 20 to 25 percent return on investment every 60 to 90 days.

However, the vast majority of GOLDBERG’s fraud involved his solicitation of individuals and organizations to invest money in the purchase of distressed assets from JP Morgan Chase Bank (“Chase”). GOLDBERG falsely represented to potential investors in these “Chase asset deals” that Chase had granted him a contractual right to purchase foreclosed and seized business assets from a Chase Foreclosure Manifest, which he would then resell in prearranged transactions to large, well-known corporations. GOLDBERG represented that his purchase and resale of these foreclosed assets would enable him to pay investors a return on capital of up to 20 percent in a short period of time, typically 90 days. In addition, GOLDBERG represented that Chase would refund the purchase price of any asset that could not be resold, and that therefore there was no risk to the investor that any principal investment would be lost.

In order to induce individuals to invest in both diamond contracts and Chase asset deals, GOLDBERG typically drafted and entered into a “Business Investment Agreement Form” with each investor. In these forms, GOLDBERG set out the terms of the investment, including the amount of the return on capital and the date the return was to be paid. In many of the agreements, GOLDBERG indicated that he would be responsible for the payment of all taxes, and also included language explaining the risk-free nature of the investment.

As part of his scheme to defraud the investors, GOLDBERG also compensated other individuals (“feeders”) for locating new investors, primarily in Chase asset deals, through the payment of a “finder’s fee.”

Through this scheme, GOLDBERG induced more than 350 individuals to invest more than $100 million in diamond contracts and Chase asset deals. Certain investors have lost a total of more than $30 million as a result of the scheme.

In pleading guilty today, GOLDBERG admitted that each and every one of his representations were false.  Aside from a brief period in 1997, he did not purchase diamonds in New York City or any other location; he did not have any relationship with Chase; he did not purchase any foreclosed and seized assets from Chase; nor did he resell any foreclosed and seized assets. GOLDBERG paid the promised returns to existing investors with funds he received from new investors or reinvested funds. When an investor questioned GOLDBERG about his business relationships, either with Chase or with any other company, he often created false documents and other items to induce investors to believe that his business relationships were legitimate, including inventories and/or manifests, contracts, business checks, bank statements, business cards, and company identification cards. GOLDBERG also created domain names in the names of actual companies, including Chase, that would be listed on false documents in case an investor attempted to verify the authenticity of the documents. In addition, GOLDBERG opened actual bank accounts in the names of the companies to whom he purported to be selling foreclosed business assets, without the permission of those companies, that could also be used to create the false impression that he had a business relationship with the companies.

GOLDBERG is scheduled to be sentenced by United States District Judge Janet C. Hall on December 2, 2010, at which time GOLDBERG faces a maximum term of imprisonment of 60 years. GOLDBERG also will be ordered to pay restitution of at least $30 million. GOLDBERG is involved in two Chapter 7 bankruptcy proceedings that are currently pending the United States Bankruptcy Court in Hartford. A bankruptcy trustee has been appointed for the purpose of paying the creditors of the bankruptcy estate pursuant to orders of the United States Bankruptcy Court. Pursuant to the plea agreement entered into by GOLDBERG, the bankruptcy trustee will be the vehicle through which restitution is made to the victims of GOLDBERG’s scheme.

GOLDBERG voluntary disclosed his scheme to federal authorities in November 2009 and presented a check to the government consisting of $500,000 of investors’ money. He has been released on a $1 million bond since his arrest on November 23, 2009.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David E. Novick.

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

Winsted Man Arrested on Federal Child Pornography Charges

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TRAVIS CARLSON, 28, of Nanni Drive, Winsted, was arrested today by members of the Connecticut Computer Crimes Task Force on a federal criminal complaint charging CARLSON with possession, receipt, and distribution of child pornography.

The complaint alleges that CARLSON utilized an Internet file sharing network to receive and distribute images of child pornography.

Following his arrest this morning at his residence, CARLSON appeared before United States Magistrate Judge Donna F. Martinez in Hartford. CARLSON was released into the custody of his father on a bond in the amount of $100,000. He will be subject to electronic monitoring by the U.S. Probation Office while this matter is pending.

If convicted of the charge of possession, receipt and distribution of child pornography, CARLSON faces a mandatory minimum term of imprisonment of five years, and a maximum term of imprisonment of 20 years and a fine of up to $250,000.

U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case is being investigated by the Federal Bureau of Investigation and the Connecticut Computer Crimes Task Force, which includes federal, state, and local law enforcement agencies. The Winchester Police Department has assisted the investigation. The case is being prosecuted by Assistant United States Attorney Deborah R. Slater.

The Connecticut Computer Crimes Task Force investigates crimes occurring over the Internet, including computer intrusion, Internet fraud, copyright violations, Internet threats and harassment, and online crimes against children. The Task Force also provides computer forensic review services for participating agencies. The Task Force is housed in the main FBI office in New Haven, Connecticut. For more information about the Task Force, please contact the FBI at 203-777-6311.

U.S. Attorney Fein noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

To report cases of child exploitation, please visit www.cybertipline.com.

Two Raytown Men Charged in Armed Robbery of Brink’s Truck

KANSAS CITY, MO— Beth Phillips, United States Attorney for the Western District of Missouri, announced that two Raytown, Missouri, men were charged in federal court today with the armed robbery of a Brink’s truck.

Deangelo Colston, 20, and Gerald Jones, 20, both of Raytown, were charged with armed robbery in a criminal complaint that was filed in the U.S. District Court in Kansas City.

Today’s complaint alleges that Colston and Jones stole $130,000 at gunpoint from two Brink’s, Inc., employees who were delivering money to an ATM at Bank of America, 3100 Main, Kansas City, Missouri, on Aug. 30, 2010.

According to an affidavit filed in support of the federal criminal complaint, the Brink’s armored vehicle was parked in the bank’s drive-through at about 2:30 p.m. on Aug. 30, 2010. The driver remained in the vehicle while another Brink’s employee serviced the ATM. Colston, Jones and another person (who is not identified) allegedly exited a vehicle that was parked next to the drive-through. One of the men pointed a semi-automatic handgun at the driver of the armored vehicle, the affidavit says, while two men held semi-automatic handguns on the second Brink’s employee who was opening the ATM.

The Brink’s employee, who felt a gun pressed against his left ear and another at the back of his head, held both of his hands up, the affidavit says. The armed robbers took two bags, one of which contained $130,000 in $20 bills and the other paperwork. The three robbers fled in a Ford SUV.

Law enforcement officers received an anonymous tip on Sept. 9, 2010, identifying Colston and Jones as two of the armed robbers. According to the affidavit, the caller said that Colston and Jones had spent approximately $2,500 taking a “crew” to Worlds of Fun, had been spending money at Independence Center, and that Jones had just purchased a Dodge Charger.

Jones was arrested during a traffic stop the next day, Friday, Sept. 10, 2010. He was carrying $400 in mostly $20 bills, the affidavit says, and police officers found $900 in $20 bills in his vehicle. Colston was also arrested in a separate traffic stop the same day. Law enforcement officers executed a search warrant at the residence where Jones and Colston were staying and discovered a pillowcase containing 10 stacks of $20 bills banded together, a backpack containing 33 stacks of $20 bills bundled together, another pillowcase containing two stacks of $20 bills bundled together and a loaded Jimenez Arms 9mm semi-automatic handgun.

Phillips cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Federal Bureau of Investigation, the Kansas City, Missouri, Police Department, the Raytown, Missouri, Police Department and the Independence, Missouri, Police Department.

Cottage Grove Woman Sentenced for Robbing Maplewood Bank

A 30-year-old Cottage Grove woman was sentenced yesterday in federal court in Minneapolis for the August 29, 2009, robbery of a Wells Fargo Bank in Maplewood. United States District Court Judge David S. Doty sentenced Ma Myrrelli Juanillo Asuncion to 18 months in prison on one count of bank robbery. Asuncion was indicted on September 23, 2009, and pled guilty on January 21, 2010.

In her plea agreement, Asuncion admitted stealing $2,487 from the bank and making up the story that she was forced to rob the bank to protect her children. According to an affidavit filed in the case, Asuncion entered the bank and passed a teller a note that stated she needed $15,000, or her children would be harmed. The teller complied, giving Asuncion all the money in the teller drawer. Asuncion then handed the teller another note that stated she was being forced to commit the robbery. In the plea agreement, Asuncion admitted signing the second note with a false name. Asuncion turned herself into the Federal Bureau of Investigation on August 30, 2009.

This case was the result of an investigation by the FBI and the Maplewood Police Department. It was prosecuted by Assistant U.S. Attorney Michelle E. Jones and former Assistant U.S. Attorney Tricia A. Tingle.

Reward Offered for Fugitive Pediatrician

PHOENIX, AZ—FBI Phoenix Division’s Special Agent in Charge Nathan Thomas Gray announced today that the FBI is offering up to $20,000 in reward money for information leading to the apprehension of a federal fugitive.

The reward is offered to help secure the arrest of Dr. Emilio Luna, age 40, a Valley pediatrician who was charged with and arrested for distribution of child pornography this month. Granted pre-trial release on September 9, 2010, with the condition of wearing an electronic monitoring device, Dr. Luna removed his device with bolt cutters and fled custody. His vehicle, the monitoring device and the bolt cutters were all found September 12, 2010, in the parking lot of a Glendale church where he had been allowed to attend services.

Dr. Luna is charged with sharing child pornography on peer-to-peer (P2P) computer networks.

He is described as an Hispanic male, age 40, 5 feet 10 inches tall, weighing 170 pounds, with black hair and brown eyes. He was born in Zacatecas, Mexico and has resided in California, Illinois, and Texas. He is also known as Emilio Luna del Real.

The FBI will publicize his flight from justice on digital billboards in Arizona, Texas, California,and Illinois. He has friends, family and/or has lived in all of these states. (The FBI worked in conjunction with the Outdoor Advertising Association of America to publicize this matter as quickly as possible.)

The FBI is also working with its law enforcement partners in Mexico to determine if he might have fled to his country of origin.

Anyone with information on Dr. Luna should call 9-1-1 or 1-800-CALL-FBI (1-800-225-5324). While Dr. Luna has no criminal history and is not known to be armed, anyone who is a fugitive represents a danger to the public. Anyone calling 9-1-1 for immediate police assistance on this matter should follow up with a call to 1-800-CALL-FBI and identify themselves so they can be contacted for the potential reward money.

Miami Home Health Patient Recruiter Convicted of Conspiracy to Commit Health Care Fraud and Soliciting and Receiving Kickbacks

Antonio Ochoa, a patient recruiter for Miami home health agencies, was convicted yesterday by a federal jury in Miami of one count of conspiracy to commit health care fraud and of three counts of soliciting and receiving kickbacks and bribes, announced the Departments of Justice and Health and Human Services (HHS).

According to evidence at trial, Ochoa was a patient recruiter and home health aide for ABC Home Health Inc. and Florida Home Health Care Providers Inc. ABC and Florida Home Health purported to provide physical therapy and home health services to Medicare beneficiaries. Evidence at trial established that Ochoa solicited and received tens of thousands of dollars in checks and cash payments as kickbacks and bribes in exchange for referring Medicare beneficiaries to ABC and Florida Home Health.

According to evidence and testimony presented at trial, Ochoa and his co-defendant Eduardo Romeo acted as partners in the recruiting scheme and received kickbacks and bribes of approximately $1300 per Medicare beneficiary from the owners of ABC and Florida Home Health. The home health agencies then billed the Medicare program on behalf of the Medicare beneficiaries Ochoa and Romeo recruited. Evidence at trial established that ABC and Florida Home Health billed the Medicare program for services that were medically unnecessary and often never provided, such as twice daily nursing visits for diabetic insulin injections, home health aide visits and therapy for the beneficiaries. Romero pleaded guilty to conspiracy to commit health care fraud and kickback charges in July 2010. He testified at trial.

According to trial testimony, Ochoa and Romero would also solicit their co-defendant Francisco Portillo, a nurse who testified at trial, to pay them kickbacks and bribes in return for ensuring that Portillo would be assigned by ABC and Florida Home Health as the nurse for the beneficiaries they recruited. Evidence showed that Portillo was paid by the agencies for each patient to which he was assigned. Portillo testified that he would falsify nursing notes to make it appear that the recruited patients needed and qualified for the home health services, even though they did not, and in many instances Portillo did not even provide the services. Portillo, who pleaded guilty one count of conspiracy to commit health care fraud and one count of making false statements in patient files, also testified that one of the patients recruited by Ochoa and Romero wasn’t even an insulin-dependent diabetic.

According to evidence at trial, Ochoa knew that the patients did not qualify for and did not need the services. Portillo testified that the patient files for the beneficiaries Ochoa recruited were falsified to make it appear that they qualified for home health care and therapy services and so that the Medicare program could be billed for the services.

At sentencing, Ochoa faces a maximum of 10 years in prison for the conspiracy to commit health care fraud count, and five years in prison as to each of the three kickback counts.

Also charged in the case were Dr. Fred Dweck; Yudel Cayro and Arturo Fonseca, owners of Courtesy Medical Group, where Dr. Dweck worked; nurses Isis Torres, Francisco Portillo, Teresita Leal, Armando Sanchez, Sheillah Rotta, Silvio Ruiz, Lissbet Diaz, Marlenys Fernandez, Alain Fernandez; and Medicare beneficiary William Madrigal.

Dr. Dweck admitted to issuing prescriptions, plans of care and medical certifications for unnecessary home health care and therapy services for over 848 Medicare beneficiaries. As a result of Dr. Dweck’s referrals, of which approximately 344 were through Courtesy Clinic, various Miami-area home health agencies billed the Medicare program for more than $37 million in false and fraudulent claims. Dr. Dweck pleaded guilty to one count of conspiracy to commit health care fraud and one count of making false statements in patients files; Cayro pleaded guilty to one count of conspiracy to commit health care fraud; Fonseca pleaded guilty to one count of conspiracy to commit health care fraud and several counts of receiving kickbacks; and each of the nurses pleaded guilty to one count of conspiracy to commit health care fraud and one count of making false statements in patient files. Each of the defendants in the case will be sentenced before U.S. District Judge Adalberto Jordan in U.S. District Court in Miami later this year.

The conviction was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General Lanny A. Breuer of the Criminal Division; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.

The case was prosecuted by Trial Attorneys N. Nathan Dimock, Sam Sheldon and Henry Van Dyck of the Criminal Division’s Fraud Section, with assistance of the Miami U.S. Attorney’s office. This case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force.

Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov/.

Honduran National Sentenced to Federal Prison for Assaulting Border Patrol Agents

United States Attorney John E. Murphy announced that in Del Rio today, United States District Judge Alia Moses Ludlum sentenced Elvis Roberto Lambert-Benedict, a 31-year-old Honduran national, to 57 months in federal prison for assaulting two federal agents and possession of marijuana.

On February 17, 2010, a federal jury seated in Del Rio found Lambert-Benedict guilty of one count charging possession of over 50 kilograms of marijuana and two counts of assaulting a federal agent. Evidence presented at trial revealed that on May, 28, 2009, Lambert-Benedict and another suspect transported approximately 58 kilograms of marijuana from the Republic of Mexico to the United States near Eagle Pass, Texas. Agents with the United States Border Patrol responded to the scene and attempted to apprehend both men after the men dropped the sacks in a known narcotics smuggling area. Lambert-Benedict was attempting to evade apprehension by jumping into a creek which feeds into the Rio Grande River. As an agent jumped in to apprehend him, Lambert-Benedict attempted to strike the agent and push his head under water. Both men were treading in deep water. Minutes passed before other agents arrived and they all pulled Lambert-Benedict onto the bank of the creek. As he continued to resist, Lambert-Benedict struck a second agent on the mouth. The second suspect was able to evade capture.

The case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Erica Benites Giese prosecuted the matter for the Government.

Fifty-Three Defendants Charged in New Jersey in Coordinated Identity Theft and Fraud Takedown

NEWARK, NJ—Fifty-three individuals were charged today in connection with widespread, sophisticated identity theft and fraud, including 43 individuals charged with participating in one large-scale criminal enterprise, United States Attorney Paul J. Fishman and FBI Special Agent in Charge Michael B. Ward announced.

In addition to those charged in the single conspiracy, six other criminal Complaints charge 10 additional individuals with identity theft and fraud offenses. Forty-seven defendants were arrested this morning as a result of a coordinated law enforcement investigation. Of the remaining defendants, one is in state custody on unrelated charges, and five remain at large.

The defendants arrested this morning are scheduled to appear before United States Magistrate Judges Claire C. Cecchi and Madeline Cox Arleo throughout the day in Newark federal court.

According to the criminal Complaints filed in these cases:

Sang-Hyun Park et al., Mag. No. 10-4147 (CCC)

Sang-Hyun Park, a resident of Palisades Park, N.J., was the leader of a criminal organization headquartered in Bergen County, N.J. Park and his co-conspirators (the "Park Criminal Enterprise") obtained, brokered, and sold identity documents to customers that were used to commit credit card fraud, bank fraud, tax fraud, and other crimes. The 43 defendants charged in connection with the enterprise played various roles as Park's staff, identity brokers, credit build-up team, and collusive merchants, as well as customers seeking fraudulent services. The defendants and their respective responsibilities are outlined in a chart appended to this release.

Members of the Park Criminal Enterprise obtained social security cards, most beginning with the prefix "586," from various brokers. Social Security cards with that prefix were issued by the United States to individuals, usually from China, who were employed in American territories, such as American Samoa, Guam, and Saipan. After selling Social Security cards with those numbers to its customers, the Park Criminal Enterprise used these "586" Social Security cards and numbers (which corresponded to Chinese names) to obtain genuinely issued driver's licenses, identification cards, and other identity documents from various states or to manufacture counterfeit driver's licenses and other counterfeit identity documents. Although the identities were Chinese, the vast majority of the Park Criminal Enterprises' customers were of Korean descent.

The Park Criminal Enterprise engaged in the fraudulent "build up" of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various co-conspirators who received a fee for this service—members of the enterprise's credit build up teams. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities to between 700 and 800. The members of the build up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.

Credit scores are relied on by banks, credit card companies, finance companies, and lenders, among others, when deciding whether or not to issue credit or grant loans to consumers. These credit scores were built up for use in identity theft and financial fraud for profit.

After the credit build process was completed, members of the Park Criminal Enterprise instructed, coached, and conspired with its customers to use the fraudulent identities with good credit scores to open and obtain bank accounts; bank and retail credit cards; debit cards; lines of credit; and loans—including loans guaranteed by the United States Small Business Administration ("SBA"). In particular, the Park Criminal Enterprise then "busted out" the fraudulently obtained credit cards by making purchases on the cards—often for liquor or expensive merchandise that they then sold—or by engaging in "kkang," a Korean slang phrase referring to the use of collusive merchants who, for a fee, charged these credit cards using their credit card machines for the purpose of obtaining cash. These "kkang" transactions were sham transactions; no goods or products were sold. After making the charges, the Park Criminal Enterprise made payments—drawn on other fraudulently opened, unfunded bank accounts—to the various credit card companies. Credit card companies credited the accounts for the amounts of the payments before they learned that they were bogus. The Park Criminal Enterprise then made a second round of charges on the cards. Ultimately, the credit card bills were not paid, resulting in significant financial losses to the companies.

In addition, the Park Criminal Enterprise used the fraudulent identities to defraud banks, car leasing companies, and the IRS.

During the course of the investigation, cooperating witnesses and an undercover federal agent purchased and obtained social security cards, a genuinely issued driver's license and identification card from Illinois, a counterfeit Nevada driver's license, and a counterfeit New York license. In addition, federal agents and law enforcement officers used court-authorized wiretaps to capture incriminating conversations among members of the Park Criminal Enterprise and other co-conspirators, some of which are described in the criminal Complaint.

In total, the Park Criminal Enterprise and its coconspirators caused millions of dollars in financial losses to the United States and banks, credit card companies, lenders, and others.

U.S. Attorney Paul J. Fishman stated: "The sheer scope of the fraud—and the organization that allegedly committed it—is remarkable. This type of crime puts all of us at risk, not just because of the cost to our financial institutions, but also because of the threat posed by fake identification documents. Yet, as patient and painstaking as the defendants were in designing and executing their scheme, they were still no match for the dedication, diligence, and hard work of the law enforcement agents and prosecutors who target identity theft and organized crime."

FBI Special Agent in Charge Ward stated: "The activity in this instance was a virtual crime superstore, with one-stop shopping for a variety of criminal needs. Individuals could obtain Social Security numbers under a false identity, receive assistance in obtaining an out of state driver's license under that same false identity, quickly build a fraudulent credit history, and then open bank and credit accounts. With assistance, individuals could then conduct numerous frauds with the assistance of collusive merchants and others steeped in white collar crime. The criminal activity was sophisticated, and the extent of the fraud committed by this group is believed to be substantial, if not staggering."

The Criminal Complaint charges the following offenses:

Count One charges the named defendants with conspiracy to unlawfully produce identification documents; to transfer, possess, and use a means of identification to commit other crimes; to commit credit card fraud; and to buy and sell Social Security cards. The charge carries a maximum potential penalty of five years in prison and up to a $250,000 fine.

Counts Two through Five charge the named defendants with aggravated identity theft. The charges carry a mandatory minimum term of two years in prison.

Counts Six through Eight charge the named defendants with conspiracy to commit wire fraud. The charges carry a maximum penalty of 20 years in prison and up to a $250,000 fine.

Count Nine charges the named defendant with money laundering. The charge carries a maximum penalty of 20 years in prison and up to a $250,000 fine.

Count 10 charges the named defendant with unlawfully using identification documents to defraud the United States. The charge carries a maximum penalty of 15 years in prison and up to a $250,000 fine.

United States v. Jung-Woo Shim, Mag No. 10-4161(CCC)

Jung-Woo Shim, 36, of Palisades Park, N.J., is a broker who conspired with others to "bust out" credit cards and who advertised his services in a local Korean newspaper. Shim obtained three different driver's licenses in three different Chinese names using "586" Social Security numbers, then used these fraudulently obtained identities to get credit cards, which he then charged but did not pay—causing losses to various credit card companies.

Shim is charged with three counts of unlawfully producing an identity document. Each count carries a maximum term of 15 years in prison and up to $250,000 fine. He is also charged with aggravated identity theft, which carries a two-year mandatory prison term.

United States v. Jong-Nam Kim and Yu-je Jo, Mag No. 10-4148 (CCC)

Jong-Nam Kim, 24, and Ju-Je Jo, 36, both of Ridgefield Park, N.J., were brokers who conspired with each other and others to bust out credit cards and engage in various fraud schemes. As part of their scheme, Kim and Jo sold a Confidential Informant ("CI") a fraudulently obtained Social Security card and explained to the CI how the scheme operated. Kim told the CI that he/she would fly to Los Angeles, California to obtain a driver's license after purchasing the Social Security card. Thereafter, the credit score related to this fraudulently obtained identity would be built up. Jo explained that the CI could, using the fraudulent identity, make between $30,000 and $40,000 from a credit card scheme; between $25,000 and $35,000 by obtaining a personal line of credit; and approximately $60,000 by engaging in a check cashing scheme. Kim explained that the CI could also use the credit cards to purchase high-end products such as Rolex, Chanel, and Louis Vuitton with credit cards obtained using the fraudulent identity. Kim told the CI that he/she could expect to make between approximately $80,000 and $150,000 through the scheme, and advised that it would cost him/her approximately $8,000 up front and $7,000 later for the social security card, driver's license, and credit build up. The CI paid the defendants $4,000 in cash for the social security card on August 20, 2010, and $3,000 in cash on August 31. On September 10, 2010, the defendants gave the CI a genuine social security card belonging to a person with a Korean name.

The defendants are charged with conspiring to unlawfully produce identification documents. This charge carries a maximum term of 15 years in prison and up to a $250,000 fine. The defendants are also charged with unlawfully selling a Social Security card, which carries a maximum potential penalty of five years in prison and up to a $250,000 fine.

United States v. Kang-Hyok Choi, Mag. No. 10-4163 (CCC)

Kang-Hyok Choi, 35, of Valley Stream, N.Y., fraudulently obtained four different identification cards and driver's licenses in three different Chinese names using legitimately issued but fraudulently obtained "586" Social Security numbers. In May of 2008, Choi allegedly murdered three individuals in Bergen County, N.J., and stole a number of credit cards from one of the victims. Choi then used the stolen credit cards to obtain approximately $100,000 and flew to Los Angeles using one of his Chinese aliases. Choi was arrested in Los Angeles on May 18, 2008, based on a New Jersey arrest warrant. At the time of his arrest, law enforcement officers seized approximately $88,000 in cash, $14,000 in casino chips, 27 credit cards, two driver's licenses, and two identification cards, none of which was in Choi's name.

Choi, who has been in state custody since his arrest, is now charged federally with one count of access device fraud, which carries a maximum term of 10 years in prison and up to a $250,000 fine.

United States v. Su-Chin Lee, Mag. No. 10-4164 (CCC)

Su-Chin Lee, 35, of Palisades Park, N.J., fraudulently obtained a driver's license from the Pennsylvania Department of Transportation in a Chinese person's name using a legitimately issued but fraudulently obtained "586" Social Security number, then used the fraudulently obtained identity to get credit cards. She got cash advances using the credit cards and made numerous fraudulent charges which she did not pay, causing losses to various credit card companies totaling approximately $49,000. She also obtained a $10,000 line of credit from a bank, which she withdrew in its entirety and failed to repay.

Lee is charged with one count of unlawfully producing an identity document, which carries a maximum term of 15 years in prison; one count of unlawful use of a social security card, a charge which carries a maximum term of five years in prison; and one count of access device fraud, which carries a maximum term of 10 years in prison. All three counts also carry a maximum $250,000 fine.

United States v. Yoon-Sang Kim, Mag. No. 10- 4166 (CCC)

Yoon-Sang Kim, 44, of Allendale, N.J., was arrested on August 17, 2010, in Fort Lee, N.J. while driving a vehicle registered to his wife. During a search of the vehicle, law enforcement officers found several counterfeit identifications with Kim's photograph in other people's names. Kim was arrested this morning on a federal Complaint which charges him with using one of these counterfeit identities, which corresponded to a photocopy of a "586" Social Security card found during a search of the vehicle, to open bank accounts and operate shell companies for the purpose of committing fraud. The shell companies used credit card machines to bust out credit cards. During the search of the vehicle, law enforcement officers also recovered photocopies of more than $220,000 in sales receipts from the shell companies operated by Kim, which were generated by the shell companies' credit card machines and which corresponded to the credit cards and photocopies of credit cards found during the search.

Kim is charged with one count of knowingly possessing, with the intent to use unlawfully, five or more identification or false identification documents, which carries a maximum term of five years in prison and a up to a $250,000 fine; and one count of access device fraud, which carries a maximum term of 10 years in prison and up to a $250,000 fine.

United States v. Chun-O Kim, Mag No. 10-4165 (CCC)

The Complaint charges five individuals: Chun-O Kim, 44, of Edgewater, N.J., the principal owner and operator of a purported general contracting company headquartered in Englewood, N.J.; Hosin Kim, 45, of Edgewater, the husband of defendant Chun-O Kim and the principal of a purported wholesale construction supply company operating out of Englewood; Nathan Buschman, 31, a branch manager at a bank in Edgewater; and Zakchary Benji, 28, a loan officer at a bank in Clifton, N.J.

Chun-O Kim conspired with others to make and use false, fictitious, and counterfeit documents to obtain lines of credit and commercial loans for herself and her co-conspirators. In furtherance of the scheme, Nathan Buschman and Zakchary Benji created false documents, including false reports of site visits, that created the illusion that the businesses seeking the loans existed and were legitimate. They processed lines of credit or loans knowing them to contain materially false statements and representations. Many of these lines of credit and loans were guaranteed by the United States Small Business Administration ("SBA"), a federal agency. The SBA provides assistance to small businesses by guaranteeing loans issued by certain banks. In total, defendant Chun-O Kim and her co-conspirators defrauded financial institutions in Bergen County, N.J., and elsewhere in excess of $1 million.

The defendants are charged with one count of fraud related to identification documents and one count of conspiracy to commit bank fraud, each of which carries a maximum potential penalty of five years in prison and up to a $250,000 fine.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark; IRS - Criminal Investigations, under the direction of Special Agent in Charge Victor W. Lessoff; the Department of Homeland Security's Immigration and Customs Enforcement, under the direction of Special Agent in Charge Peter T. Edge; and the Small Business Administration Office of Inspector General, Eastern Region, under the direction of Special Agent in Charge Aaron Collins, for their work leading to today's charges. Fishman also singled out detectives in the Bergen County Prosecutor's Office—under the direction of Prosecutor John L. Molinelli and the Office's Chief of Detectives Steven Cucciniello—for their indispensable work in pursuing this investigation. He also thanked the Englewood Police Department, under the direction of Chief of Police Arthur O'Keefe, and the Fort Lee Police Department, under the direction of Chief of Police Thomas O. Ripoli, for their contributions.

The government is represented by Assistant United States Attorneys Anthony Moscato, Andre Espinosa, and Barbara Llanes of the U.S. Attorney's Office Criminal Division in Newark.

The charges and allegations contained in the Complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.

Arizona Bank That Received TARP Funds Agrees to Forfeit Profits from Processing Online Gambling Payments

Bank Also Agrees to Implement Internal Money Laundering Controls to Comply with Federal Bank Secrecy Act

PREET BHARARA, the United States Attorney for the Southern District of New York, NEIL M. BAROFSKY, the Special Inspector General for the Troubled Asset Relief Program ("SIGTARP"), and JANICE K. FEDARCYK, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced that the GOLDWATER BANK, N.A. ("GOLDWATER BANK"), located in Scottsdale, Arizona, entered into a settlement agreement requiring it to forfeit $733,804.92 to resolve civil forfeiture claims alleging that the funds are traceable to property involved in money laundering, to proceeds of an illegal online gambling business, and to property used to operate an illegal online gambling business. GOLDWATER BANK previously received funds through the Capital Purchase Program of the Troubled Asset Relief Program ("TARP"). As part of the settlement, GOLDWATER BANK agreed to implement anti-money laundering and Bank Secrecy Act controls to safeguard the investment made by U.S. taxpayers in the bank against future risks.

According to the Complaint and Stipulation and Order of Settlement filed in Manhattan federal court:

Between January and May 2009, more than $13,335,248.91 in funds traceable to Pokerstars, an online gambling company based in the Isle of Man, and other offshore online gambling companies were deposited in a bank account at GOLDWATER BANK held by ALLIED WALLET, INC. These funds were traceable to several sources, including wire transfers from outside the United States by individuals and entities who knew that (a) the funds involved represented the proceeds of the illegal transmission of gambling information and the operation of an illegal gambling business, (b) the transfers were made in order to promote the carrying on of an illegal gambling business, and (c) the transfers were designed in part to conceal or disguise the nature, location, source, ownership, and control of the proceeds of the illegal transmission of gambling information and operation of an illegal gambling business.

During this same time period, ALLIED WALLET, INC., paid GOLDWATER BANK for processing automated clearing house ("ACH") transactions, including payments in the form of ACH transactions to and from the bank accounts of online gamblers located in the United States who were using Pokerstars.com and other gambling websites to engage in online gambling. These ACS transactions typically involved payments from players to the gambling websites for credits used in online gambling and payments to the players for their online gambling winnings.

On August 16, 2010, ALLIED WALLET, INC., ALLIED SYSTEMS, INC., and their owner AHMAD KHAWAJA entered into a settlement agreement requiring them to forfeit the $13,335,248.91 traceable to Pokerstars and other offshore online gambling companies.

GOLDWATER BANK asserts that it did not know that the ACH transactions requested by ALLIED WALLET, INC., were being made to promote an illegal online gambling business. However, GOLDWATER BANK has agreed to forfeit $733,804.92, an amount equal to the net income that it received to process these ACH transactions. In addition, in order to safeguard the United States’ investment in the bank through TARP, GOLDWATER BANK has agreed to develop and implement internal anti-money laundering procedures, to comply with the Bank Secrecy Act, and to create internal training programs and an independent audit function to ensure that its compliance is effective.

Manhattan U.S. Attorney PREET BHARARA said: "Today's forfeiture underscores that banks, particularly TARP recipients like Goldwater Bank, should not profit from the fruits of criminal conduct. The internal controls that Goldwater Bank must implement will help to ensure that such conduct will not be repeated. We will continue to work with our partners at SIGTARP and the FBI to ensure that financial institutions remain ever vigilant regarding the provenance of the funds that they process."

TARP Special Inspector General NEIL M. BAROFSKY said: "Today's charges and settlement should send a powerful message to TARP recipients that they will be held strictly accountable for any misdeeds while they stand as custodians of taxpayer dollars. SIGTARP commends the leadership of the U.S. Attorney for the Southern District of New York for his continued use of both civil and criminal remedies to protect taxpayer interests."

FBI Assistant Director-in-Charge JANICE K. FEDARCYK said: "Although Goldwater Bank denies guilty knowledge of its role in facilitating an illegal online gambling business, it was paid to execute transactions that were essential to the operation of this criminal enterprise. The forfeiture settlement means the bank won’t profit by providing this service. The FBI remains committed to vigorous enforcement of the laws against illegal online gambling."

Mr. BHARARA praised the investigative work of SIGTARP and the FBI in the case.

This forfeiture action is being handled by the Office’s Asset Forfeiture Unit. Assistant U.S. Attorneys JEFFREY ALBERTS and ARLO DEVLIN-BROWN are in charge of the prosecution.

FBI and West Palm Beach Police Release Pictures in Bank Robbery

The FBI and West Palm Beach Police Department are releasing surveillance photographs in a bank robbery that took place this morning at Chase Bank,

7700 S. Dixie Highway, West Palm Beach, Florida

. At around 9:45 a.m., two robbers drove inside the bank on a motorcycle using the rear entrance. One of the robbers was seen with a handgun. One of the robbers demanded to be let into the vault where he stuffed money into a back pack. The other robber stayed in the lobby acting as a lookout. They then left the bank out the front entrance.

After leaving the bank, they crashed into a truck and carjacked a woman at gunpoint. The Palm Beach Sheriff’s Office later found the woman’s abandoned car.

Both robbers who dark clothing and wore motorcycle helmets.

If anyone has information as to the identity of these robbers they are urged to call the FBI at (305) 944-9101.

THESE ROBBERS ARE CONSIDERED ARMED AND DANGEROUS.

The photos can be viewed at http://miami.fbi.gov/pressrel/pressrel10/mm091410.htm.

Summersville Man Pleads Guilty to Possessing Child Pornography

CHARLESTON, WV—Aaron Shane Ballew, 33, of Summersville, West Virginia, pleaded guilty today before United States District Judge Thomas E. Johnston to possessing child pornography. Ballew, who is scheduled to be sentenced on January 5, 2011, faces up to 10 years in prison and a lifetime term of supervised release.

According to court documents, Ballew made contact in an online chat room with an undercover agent with the Federal Bureau of Investigation. Using a peer-to-peer file sharing program, Ballew shared with the agent thousands of pictures and videos depicting children engaged in sexually explicit activity. Many of the images contained children under twelve years old. The FBI subsequently executed a search warrant at Ballew’s residence in Summersville on March 1, 2010. At that time, the FBI seized Ballew’s home computer, CDs and DVDs, which contained thousands of images depicting child pornography.

Assistant United States Attorney Thomas C. Ryan is handling the prosecution.

This case is being brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about cases and related activities please visit www.usdoj.gov/usao/wvs and www.projectsafechildhood.gov/.

Also in Charleston, Sharon Kay Hanna, 57, of Nettie, West Virginia, pleaded guilty last week before Judge Johnston to maintaining a residence for the purpose of distributing oxycodone. Hanna faces up to 20 years in prison and a $500,000 fine when she is sentenced on December 9, 2010.

The conviction stems from a long-term investigation conducted by the Central West Virginia Drug Task Force of drug trafficking in and around Nicholas County, West Virginia. Confidential informants working with Task Force agents made drug purchases from Hanna, Jeremy Hanna, Terry Hughes, and others. The investigation revealed that from early 2007 until January 2008, Hanna used her Nicholas County residence to distribute and store controlled substances. Hanna also allowed others to abuse controlled substances in her home. Jeremy Hanna and Terry Hughes were previously convicted for their roles in the drug trafficking organization.