On October 1, 2012, the US Attorney’s Office for the Southern District of New York announced that Daniel Bonventre, Annette Bongiorno, Joann Crupi, Jerome O’Hara, and George Perez received additional charges in a superseding indictment.  All of the defendants were long-time employees of Bernard L. Madoff Investment Securities LLC.  

The first indictment in November of 2010 stated that conspiracy to defraud clients started around 1992.  The superseding indictment alleges that conspiracy started in the 1970s or even earlier.  Two new charges are included in the superseding indictment as well, including bank fraud in connection to corporate and personal loans as well as tax offenses.  

According to the superseding indictment, the defendants acted in the following ways:

Bongiorno was in the Investment Advisory (IA) business for about 40 years and managed accounts with a cumulative balance around $8.5 billion.  Crupi was in the IA business for 25 years and managed BLMIS IA accounts that had a balance around $900 million up to November 30, 2008.  Both of these employees handled false account statements.  

Bonventre was an employee of BLMIS for 40 years and the director of operations.  He was in charge of Financial and Operational Combined Uniform Single Reports with the SEC and knowingly presented inaccurate reports.  He also presented false tax returns to show tax auditors.  

O’Hara and Perez were computer programmers for BLMIS.  They are accused of creating programs hid the nature of the business, changed names of account holders, changed information about shares and transactions, and more.  

Bonventre faces 22 counts, Bongiorno faces 10 counts, Crupi faces 13 counts, O’Hara faces 8 counts, and Perez faces 8 counts.  You can view a chart of the offenses and maximum penalties at the following link: https://www.fbi.gov/newyork/press-releases/2012/manhattan-u.s.-attorney-files-additional-charges-against-former-employees-of-bernard-l.-madoff-investment-securities-llc.

U.S. Attorney Preet Bharara stated, “As we have said repeatedly since this breathtaking fraud was first discovered four years ago, we will not rest until all the alleged participants and enablers are made to answer for their conduct.”  

Source: Federal Bureau of Investigation

On October 1, 2012, the US Attorney’s Office for the District of Massachusetts announced that Minh Cam Luong, aka “Ming Jai,” pleaded guilty to operating an illegal gambling business and using violence to collect money from indebted gamblers.  Luong was scheduled for sentencing on January 14, 2013 by United States District Judge Patti B. Saris.  

During the guilty plea, Luong admitted that he ran an illegal gambling business in dens located in Boston’s Chinatown.  The dens were located on Edinboro Street, Harrison Avenue, and Beach Street, and the dens operated from July 2009 to June 2011.  The dens provided high-stakes gambling on Chinese table games.  The most popular game was call “pai gau” where gamblers actually play against each other instead of the house.  The house would then collect five percent on every winning hand, which ranged from hundreds to tens of thousands of dollars.  

Luong issued large of money to gamblers and other people, but when they could not pay back the debt, Luong and his partners would threaten violence.  Multiple gamblers and owners of other gambling dens in Chinatown were beaten up to collect debts and maintain Luong’s reputation.  

During an intercepted conversation, Luong stated that his Beach Street grambling den made $100,000 in just three days during the Chinese New Year in 2011.  During the same conversation, Luong said the den usually grossed $60,000 to $70,000 every week.  Other intercepted conversations revealed the threatening comments.  

According to the FBI, Luong faces a maximum penalty of 20 years in prison for each of the 10 extortionate collections counts.  He faces a maximum penalty of five years in prison for the illegal gambling business count, and he faces a maximum fine of $250,000 for each of the counts.  

Assistant U.S. Attorneys Richard L. Hoffman and Timothy E. Moran are prosecuting the case.  

Source: Federal Bureau of Investigation

On October 11, 2012, the US Attorney’s Office for the Southern District of New York announced that Emilio Fusco received 25 years in prison for racketeering and extortion crimes.  He is part of the Genovese Organized Crime Family of La Cosa Nostra.  

In May of 2012, he was sentenced to one count of conspiring with the Genovese Organized Crime Family, one count of extorting owners of restaurants and strip clubs in Springfield, Massachusetts, and one count of interstate travel for racketeering.  He was also found guilty of the murder of Adolfo Bruno and Gary Westerman in November of 2003.  

Evidence presented at the trial proved that Fusco joined the Genovese Crime Family in Springfield in the mid 1990s.  From then until 2008, he worked with others to extort a business owner in Springfield.  He received about $12,000 every month as a result of the extortion.  

He completed a 33-month sentence in 2006 for former racketeering and money laundering convictions.  He was convicted for extorting multiple businesses in the Springfield area.  

He is believed to have conspired with other members of the Genovese Crime Family in order to murder Adolfo Bruno and Gary Westerman.  At the time of their murders, Bruno was the captain of the family’s Springfield faction and Westerman was a family associate.  Fusco believed Westerman was cooperating with the police.  He was acquitted of the murder charges, but the judge found Fusco committed the murders by preponderance—or weight of the evidence.  

Fusco is also believed to have distributed marijuana.  Court documents also show he was engaged in loan sharking and illegal gambling.  

In addition to his 25 years in prison, Fusco is also ordered to undergo three years of supervised release.  He is ordered to forfeit $260,000 as well.  The co-defendants were sentenced to life in prison.  

Source: Federal Bureau of Investigation

On October 1, 2012, the US Attorney’s Office for the Northern District of Georgia announced that Mark Gary, of Duluth, pleaded guilty to bribing the Gwinnett County Commissioner in 2009 in order to secure rights to build a waste transfer station.  

Ricky Maxwell, the Acting Agent in Charge for the FBI Atlanta Field Office, states, “This case illustrates that those who entice or bribe public officials will quickly find themselves as defendants in a public corruption investigation and prosecution.”

According to information presented in the court, Mark Gary wanted to develop a $4 million solid waste transfer station around October of 2008.  The facility acted as a way station during the trash collection process and transferred trash from haulers to the appropriate landfills.  Gary submitted the necessary documents to obtain county approvals and permits, but the permits eventually needed approval from the Gwinnett County Board of Commissioners.  

According to the FBI, Shirley Lasseter was elected as the District 1 representative for the Gwinnett County Board of Commissioners, and Gary helped get her elected.  After she was elected, she almost immediately appointed Gary to the Gwinnett County Planning Commission.  

Then, between March and April of 2009, Gary spoke with Lasseter and her son about the application for the waste transfer station.  Gary offered money to Lasseter and her son, John Fanning, if Lasseter voted to approve the application.  

Lasseter voted to approve the waste transfer station on April 28, 2009, and Gary then paid her son $30,000 in June of 2009.  

Gary was charged on September 5, 2012 for trying to bribe Lasseter and her son.  He faces a maximum penalty of 10 years in prison and a fine up to $250,000.  His sentencing is scheduled for January 2, 2013, and Assistant U.S. Attorney Douglas W. Gilfillan is prosecuting the case.  

Source: Federal Bureau of Investigation

On October 16, 2012, the FBI in Phoenix released information about two suspects that are wanted for bank robberies in the Phoenix area.  The FBI is referring to the wanted bank robbers as the “Run-and-Gun Bandits.”  

The first robbery occurred on October 4, 2012 at the Desert Schools Federal Credit Union on 3423 East Bell Road in Phoenix, Arizona.  The second robbery occurred on October 15, 2012 at the Desert Schools Federal Credit Union on 2355 South Alma School Road in Mesa, Arizona.  

During both of the robberies, two unknown black males entered the credit unions as the same time and brandished a dark, semi-automatic handgun.  The first black male would go up to the teller and demand money while the second black male would remain in the customer lobby.  They would also rob customers that were located in the banks at the time of the robbery.  

The first unknown suspect is a black male, and he is believed to be 20 to 25 years of age.  He is about 5’8” tall, and he is about 160 pounds.  He had a dark, long ponytail at the time of the robbery, and he was wearing dark clothing during the time of the crimes.  He has a scar above his left eyebrow.  

The second unknown suspect is also a black male, and he is between 20 and 25 years of age.  He is between 5’10” and 6’0” tall and weighs about 180 pounds.  He has dark hair, and he was wearing a dark bandana during the time of the crime.  

The Desert Schools Federal Credit Union is offering a cash reward of $5,000 for any information that leads to arrest of the suspects.  

If you have any information about the suspects, call the FBI at 623-466-1999.  

Source: Federal Bureau of Investigation
 

On September 25, 2012, the US Attorney’s Office in the Northern District of Ohio stated that Nicholas Delbrocco was charged with two counts after he provided items of value to the Ohio and Vicinity Regional Council of Carpenters.  Delbrocco’s intentions were to receive business related to the pension and annuity fund for the union. 

Delbrocco is a resident of North Kingston, Rhode Island.  His official charges were “offering, accepting, or soliciting to influence operations of an employee benefits plan; and conspiracy to commit mail fraud and honest services mail fraud.”

Delbrocco was an employee and part owner of several advisory firms, and according to the FBI, he tried to persuade an officer, agent, and employee of the Carpenters’ Union—referred to as PE61.  The crime progressed as follows. 

Michael Forlani and several other people were starting a project to build facilities used by Louis Stokes Cleveland Veterans Affairs Medical Center in Cleveland.  Around 2007 or 2008, Mr. Forlani asked for help from several people, including PE61, to go out and obtain funding for the project. 

Mr. Delbrocco tried to persuade PE61 into administering the pension and annuity funds of the Carpenters’ Union to his business.  The items of value included multiple airline tickets, frequent flyer miles, rental vehicles, hotel rooms, theater tickets, tickets for sporting events, meals, firearms, and help with the development project. 

On May 16, 2006, PE61 voted and approved $25 million of the pension fund to be managed by the Delbrocco’s business.

This case is being prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Ann C. Rowland, and Nancy L. Kelly.  The investigation was led by the Federal Bureau of Investigation, the Department of Labor, and the Internal Revenue Service’s Criminal Investigation Division. 

Source: Federal Bureau of Investigation

On September 21 and 24, the US Attorney’s Office in the Western District of New York announced charges for two different men in the possession of child pornography.  Jeremy Otrosinka of Buffalo, New York, underwent indictment on September 21, and Thomas Mehegan of Elmira, New York, pleaded guilty on September 24. 

Otrosinka, 32, was charged with three counts of advertising, receipt, and distribution of child pornography.  He created a website that had a “password-protected bulletin board” that was used for discussing and sharing child pornography.  Members could post images and videos of child pornography as well. 

Mehegan was found to possess child pornography during a search and seizure performed by the New York State Police.  The troopers found numerous computers and hard drive containing child pornography.  During an ongoing investigation by the Federal Bureau of Investigation, it was found the Mehegan had setup a secret camera in his home to record his adult-stepdaughter breastfeeding her child. 

Otrosinka faces a mandatory minimum sentence of five years in prison and a maximum penalty of 60 years in prison and a $250,000 fine.  Mehegan received two counts of possession of child pornography before the U.S. District Court Judge David G. Larimer.  Each count of possession of child pornography carries a maximum sentence of 10 years in prison, a $250,000 fine, and supervised release for life. 

U.S. Attorney William J. Hochul, Jr. made the announcements for Jeremy Otrosinka’s and Mehegan’s charges.  Mehegan will be sentenced on December 10, 2012, and Otrosinka’s sentencing is not yet scheduled. 

The case was part of Project Safe Childhood which was started in May of 2006 to prevent child sexual exploitation and abuse.  The project is led by the United States Attorneys’ Offices (specifically the Criminal Division’s Child Exploitation and Obscenity Section), as well as other federal, state, and local authorities. 

Sources: Federal Bureau of Investigation

On September 26, 2012, the US Attorney’s Office in the District of New Jersey stated that Sixing Liu was found guilty of exporting secret U.S. military technology to China.  Liu was also found guilty of stealing trade secrets and lying to federal agents. 

U.S. Attorney Paul J. Fishman stated, “The jury found that in order to promote himself, Liu took highly sensitive defense information and trade secrets to China, violating the rules of his company and the laws of this county, and then lied about it upon his return to the United States.”

The crime occurred as follows.  Liu worked for L-3 Communications, Space and Navigation Division in 2010 when he stole a huge amount of electronic files.  The files contained information about design and performance of missile guidance systems as well as information about rockets, unmanned aerial vehicles, and target locators. 

Liu is believed to have stolen the files in order to reserve future employment in China.  After stealing the information, he held multiple presentations at universities in China and the Chinese Academy of Sciences.  Liu flew back to Newark Liberty International Airport on November 29, 2010, and federal agents found the computer and secret files. 

The FBI states that Liu can face the following maximum penalties: 20 years in prison and $1 million fine for export violations, 10 years in prison and $250,000 fine for stolen trade secrets violation, 10 years in prison and $250,000 fine for interstate transportation of stolen property, and five years in prison and a $250,000 fine for false statements. 

Andrew McLees, the Special Agent in Charge of Immigration and Customs Enforcement under Homeland Security Investigations, states, “Exporting military weapons and technical data and the theft of sensitive technology in violation of the Arms Export Control Act are serious crimes with global consequences.  Illegal foreign procurement networks continue to threaten our safety and this conviction reinforces that HIS has no tolerance for those who try to undermine our nation’s safety and security.”

Source: Federal Bureau of Investigation

On September 26, 2012, the US Attorney’s Office in the Northern District of Georgia announced that Terry Rivers, Antonio Gore, and Montez Walker were sentenced by a federal grand jury for the robbery that occurred in January of 2012.  All of the defendants pleaded guilty in May of 2012, and the men were sentenced by Senior United States District Judge William C. O’Kelly. 

According to information presented in the court, the three men and an unidentified man robbed an armored car at the Walmart in Oakwood, Georgia.  During the robbery, the men restrained the courier and stole $75,000 before fleeing the scene.  Witnesses of the robbery promptly called police and gave a description of the SUV used for a getaway vehicle. 

As the police pursued the SUB, the men lost control and crashed into a creek on Woodward Mill Road in Suwanee.  The three defendants then proceeded by foot through the woods and creek.  The men were later apprehended by police and canine units, and all of the money was recovered. 

Terry Rivers received six years and six months in prison, and Antonio Gore received the same sentence.  Montez Walker was sentenced to 10 years and 10 months in prison.  The defendants are also required to pay $23,091.50 in restitution for injuries sustained by the courier and lost wages during her time in the hospital. 

U.S. Attorney Sally Quillian Yates stated, “These defendants boldly robbed an armored car at a busy Walmart during business hours.  Their actions endangered not only the courier, but everyone nearby.  The sentences imposed today reflect the seriousness of their crime and the danger that their actions and flight posed to the community.”

Rickey Maxwell, the Acting Special Agent in Charge for the FBI Atlanta Field Office, commended the Hall County Sheriff’s Office, the Gwinnett County Police Department, and the Oakwood Police Department for their help in apprehending the robbers. 

Source: Federal Bureau of Investigation

On September 21, 2012, the US Attorney’s Office in the District of Columbia announced that Laurie Napper was sentenced for selling personal information about patients and even selling blank prescription forms.  Napper was sentenced to six months in a halfway house and required to perform 100 hours of community service for the federal charge. 

Napper was sentenced by the Honorable Colleen Kollar-Kotelly in the U.S. District Court for the District of Columbia.  She was charged with violating the Health Insurance Portability and Accountability Act (HIPAA).  She was placed on 3 years probation, and she will spend the first 6 months in the halfway house.  The next 6 months will be spent in home confinement.  Napper also received a fine of $2,100.

According to court documents, Napper worked in the general surgery department of Howard University Hospital as a medical technician.  With such a role, she had access to private health information of the hospital patients. 

The Federal Bureau of Investigation reports that Napper obtained the records of hospital patients on at least three different occasions.  She sold names, addresses, birth dates, and Medicare numbers to an outside party in exchange for monetary awards.  She received between $500 and $800 for every transaction. 

The same person also received blank prescription pads from Napper.  The FBI reports that the person used the blank pads for prescriptions of oxycodone.  The person provided Napper’s telephone number on the prescription pad so pharmacies could call and verify that the prescriptions were legitimate. 

James W. McJunkin, the Assistant Director in Charge at the FBI’s D.C. Field Office, stated, “Cases like this demonstrate that drug distribution is not just on street corners but can take place with an illegally obtained prescription pad and patient information.  Today’s sentence sends a message that selling patient information and forged prescriptions for personal benefit is dangerous and illegal, and we will bring those who commit prescription drug fraud to justice.”

Source: Federal Bureau of Investigation