Real Estate Brokers And Client Charged With Defrauding Banks In ‘Shotgun’ Loan Scheme

NEWARK, N.J. – Two real estate brokers and a client were arrested today and charged in connection with a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Paul J. Fishman announced.

Simon Curanaj (a/k/a Simone Curanaj, Simon Curanovic, and Simone Curanay) 62, of Yonkers, New York; Michael Arroyo, 58, of Bronx, New York; and Rafael Popoteur, 65, of Ridgefield Park, New Jersey, are charged by complaint with one count each of conspiracy to commit bank fraud. They are expected to appear later today before U.S. Magistrate Judge Steven C. Mannion.

According to the complaint:

Curanaj and Arroyo are real estate brokers and Popoteur was one of Curanaj’s clients. From 2012 through January 2014, the three defendants and others allegedly conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on multiple residential properties located in New Jersey and New York.

To get the banks to extend lines of credit they would not have otherwise approved, Curanaj and his conspirators allegedly used the names and personal information of homeowners or straw borrowers, sometimes without their knowledge, to apply for the HELOCs. They made various false representations on loan documents. They then applied for several home equity lines of credit with multiple banks at the same time using the same residential property as collateral. They hid from the lenders the fact that the properties offered as collateral were either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender.

The two representative HELOC shotgun schemes highlighted in the complaint caused a loss of more than $1 million dollars. After receiving the fraudulently obtained home equity lines of credit, Curanaj and his conspirators shared in the illicit proceeds obtained from the banks.

The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater.

U.S. Attorney Fishman credited special agents of the U.S. Federal Finance Housing Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s General Crimes Unit in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.

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

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Federal Grand Jury Indicts Colleyville Businessman on Mail Fraud Stemming from Ponzi Oil and Gas Fraud Scheme

Defendant Operated Signal Oil and Gas Company

FORT WORTH, Texas — A Colleyville, Texas, businessman, James VanBlaricum, who operated an oil and gas exploration company, was indicted today by a federal grand jury in Fort Worth, Texas, on one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.

VanBlaricum, 77, has been in custody since his arrest in mid-August 2016 by U.S. Postal Inspectors on a related federal criminal complaint. In ordering the detention, U.S. Magistrate Judge Jeffrey L. Cureton noted that VanBlaricum’s extensive travel and ties to numerous foreign countries made him a risk of flight or nonappearance unless detained.

According to the complaint, Signal Oil and Gas Company (SOG) was incorporated by VanBlaricum in 2000; he was the registered agent and sole incorporator. The Land Lease Program (LLP) was one of several oil and gas investment programs offered for purchase to SOG investors. Texas Energy Management and Texas Energy Mutual (TEM) are the names of SOG’s follow-on companies that VanBlaricum and other coconspirators began operating in 2008. SOG initially operated from an Airport Freeway address in Fort Worth, but in 2004, it also began receiving mail at a commercial mail receiving agency on Northwest Highway in Grapevine, Texas. The name on this mail box was changed in November 2010 to TEM.

The investigation began when the U.S. Postal Inspection Service was contacted by the Texas State Securities Board (TSSB) after it began receiving complaints about VanBlaricum related to various programs he promoted and misrepresentations made to them by SOG salespeople. One of the main complaints was lack of investment payments. In fact, an investigation disclosed that from January 21, 2006, through January 31, 2009, 53 victims of a mail fraud scheme involving SOG’s LLP were identified with investments totaling $2,633,090.

According to the indictment, VanBlaricum formed SOG and TEM, ostensibly for the purpose of investing in mineral leases, and oil and gas production and earning a profit from those investments. The indictment alleges that he ran the fraud scheme from approximately January 2007 to August 2016, from his residence and home office located on Sapphire Circle in Colleyville, where many of the acts and transactions alleged in the indictment took place. VanBlaricum raised millions of dollars from investors by various means, including selling securities in the form of limited partnerships interests in “programs” offered by COG and TEM.

VanBlaricum employed sales agents who worked on his behalf to raise money, including selling securities in the form of limited partnership interests in “programs” offered by SOG and TEM. Both personally and through investors, VanBlaricum deceived investors and potential investors by misrepresenting material facts. For example, he represented that investors would earn an “assured” rate of return on their initial investment, and they would receive a full refund of their initial investment amount after a defined period of time. He also represented that he intended to use a certain percentage of investors’ money to purchase mineral leases, and oil and gas well projects, when in fact, he intended to spend a substantially smaller percentage on the leases and oil and gas well projects and use a substantial part of investors’ money for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and paying his personal expenses as well as personal expenses for family members, friends, and business associates.

VanBlaricum also represented that he had purchased certain assets, or was in the process of purchasing them, when in fact, he had not purchased the assets and was not in the process of purchasing them. He also represented that the oil and gas well projects were productive and profitable, when in fact, most were “dry holes,” produced oil for a short period of time, or had not been drilled.

When VanBlaricum made promises about the use of investor funds, he failed to state that he had made the same promises to other investors and then used those investors’ funds for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and payment of personal expenses for VanBlaricum and his family, friends, and business associates.

According to the indictment, VanBlaricum also identified himself to investors using a false name. VanBlaricum deposited investors’ funds into, and withdrew and expended investors’ funds, from accounts he controlled in the names of entities he controlled. He caused funds to be transferred to, withdrawn from, and deposited into various accounts to create the appearance of business operations and revenue that he knew did not exist. He also caused “lulling” payments to be paid to investors, ostensibly as returns on investment, when he knew the funds came from other investors rather than from business operations.

VanBlaricum, according to the indictment, secretly, and without authorization, took and spend money entrusted to him by investors for advertising; vacations and international travel; escort and dating services; rent payments; automobile purchases; and payroll and commissions for employees and sales agents.

The indictment includes a forfeiture allegation that would require VanBlaricum, upon conviction, to forfeit a money judgment in the amount constituting the proceeds traceable to the offense. He will also be required to forfeit 10 vehicles, two $25,000 surety bonds, and proceeds in eight Frost Bank and Chase Bank accounts.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for mail fraud is 20 years in federal prison and a $250,000 fine.

The investigation is being led by the U.S. Postal Inspection Service with assistance from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Douglas A. Allen is in charge of the prosecution.

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Former Bank President Indicted in Connection with $100,000,000 Bank Failure

Oklahoma City, Oklahoma – Yesterday, a federal grand jury returned a 23-count indictment against JOHN ARNOLD SHELLEY, 66, of Oklahoma City, Oklahoma, in connection with the failure of the Bank of Union, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.  The counts include conspiracy to commit bank fraud, bank fraud, money laundering, making false statements to a bank, misapplication of bank funds, false bank entries, wire fraud, and making false statements to the Federal Deposit Insurance Corporation (FDIC).

Shelley was the President, Chief Executive Officer, Chairman of the Board, and a loan officer at The Bank of Union (BOU) in El Reno, Oklahoma, from approximately 1997 until his resignation on November 30, 2013.  In January 2014, state banking regulators closed BOU due to the bank’s loan losses, and the FDIC was appointed as the bank’s receiver.  According to the indictment, the estimated loss amount stemming from BOU’s failure as of December 2016 was in excess of $100,000,000.

The 23-count indictment charges Shelley with defrauding BOU in several ways: (1) by issuing loans with under- or unsecured collateral and falsifying financial statements for several high-dollar bank borrowers; (2) by originating nominee loans to circumvent the bank’s legal lending limit; (3) by concealing the bank’s true financial condition from the Board of Directors (Board); (4) by soliciting a fraudulent investment; and (5) by falsely representing the bank’s true status to the FDIC.

According to the indictment, Shelley conspired with four BOU borrowers from approximately 2009 through November 2013 to defraud BOU by issuing them millions of dollars in BOU loan proceeds secured by collateral that they did not actually have, allowing Shelley to justify his unusually high annual earnings to the BOU Salary Committee.  It is alleged that, though these borrowers had already accumulated significant debt that they could not repay, Shelley continued to issue them new loans to cover their outstanding loan balances, and “rolled” or capitalized the principal and accrued interest on their existing loans into the new loans that he authorized.  At monthly meetings held by the BOU Board, it is alleged that Shelley failed to disclose the true status of these delinquent loan accounts; instead, he advised the Board that the borrowers were continuing to pay down their loans.  The indictment further alleges that in October 2012 and again in 2013, Shelley directed three of the borrowers to prepare inflated cattle inventory reports falsely representing that they had sufficient collateral, in the form of cattle, to repay their loans to the bank.   It also alleges that Shelley conspired with these three borrowers to issue loans in one of their names for transfer to the others, thereby avoiding the bank’s legal lending limit.  The indictment includes 17 counts of conspiracy, bank fraud, money laundering, and false statements related to this scheme.

The indictment also alleges Shelley issued new loans to these borrowers in order to keep them off of BOU’s monthly overdraft reports.  According to the indictment, BOU’s lending policy directed that overdrafts generally should not be granted, particularly where a borrower’s loans were 30 days or more past due.  In June 2011 and again in August 2011, Shelley, knowing that two of these borrower accounts were more than 30 consecutive days overdrawn by hundreds of thousands and, at times, millions of dollars, allegedly caused BOU to issue new loans to cover these account overdrafts just before the Board’s monthly meetings at which the reports were reviewed.  Shelley is charged with four counts of misapplication of bank funds and false bank entries for his fraudulent overdraft concealment.

Further, the indictment alleges Shelley executed a scheme to defraud a partial owner and investor in BOU in October 2012.  According to the indictment, Shelley persuaded the investor to wire $40,000,000.00 to BOU by falsely representing that BOU was growing rapidly and performing well.  The indictment alleges that, though Shelley knew that the bank was on the brink of failure and needed an immediate capital infusion to ensure its solvency, he advised the investor that there was “zero” risk that he would lose his $40,000,000.00 investment.   The indictment charges Shelley with wire fraud for executing this scheme.

Finally, it is alleged that Shelley falsely represented the bank’s loan status to the FDIC.  According to the indictment, between September 2012 and September 2013, Shelley continued to renew several unpaid borrower loans by issuing new loans to cover the outstanding loan balances, then capitalizing the unpaid interest on the previously unpaid loans into the balance of the new loans.  Pursuant to an October 2013 FDIC safety and soundness examination, it is alleged that Shelley falsely represented that he had not renewed or extended any loans without full collection of the interest due between that September 2012 to September 2013 time period.  He is charged with making a false statement to the FDIC for this conduct.

With regard to the bank fraud, bank fraud conspiracy, false statement, misapplication of funds, and false entry charges of the indictment, Shelley faces up to 30 years in prison and a fine of up to $1,000,000 on each count.  He also faces up to 20 years of imprisonment and a $250,000 fine on the wire fraud count, along with up to 10 years in prison and a $250,000 fine as to money laundering. Furthermore, the indictment seeks forfeiture from Shelley in the amount of the proceeds of the fraudulent schemes and in the amount of the property involved in the offenses.

This case is the result of an investigation by the Federal Deposit Insurance Corporation Office of Inspector General and the Federal Bureau of Investigation.  It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.

Reference is made to the indictment and other public filings for further information.  An indictment is only a charge and is not evidence of guilt.  A defendant is presumed innnocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

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Managing Partner of Bulk Mail Firm Admits Defrauding U.S. Postal Service of Nearly $750K

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Shelly Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that ROBERT KUSS, 54, of Cheshire, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court one count of mail fraud stemming from his role in a scheme to defraud the U.S. Postal Service of nearly $750,000.

According to court documents and statements made in court, KUSS is the managing partner of Creative Marketing Group, LLC (“CMG”), a mail service provider in the business of sending bulk mailings.  CMG has a Permit Imprint bulk mailing permit (“PI permit”) that allows the company to print postage indicia directly onto an envelope rather that affix a postage stamp or a meter impression to each piece of mail (the printed postage indicia tend to be pink printings on the upper right hand corner of an envelope).

Generally, a PI permit holder has an account from which the USPS debits the appropriate postage charge for each bulk mailing.  To utilize its PI permit, a mailer generally drops off its bulk mailing at the office that maintains its permit, known as a Business Mail Entry Unit (“BMEU”) – in this instance the Bristol (Conn.) Post Office.  There, the mailing is examined and accepted by BMEU postal employees.  The USPS then debits the mailer’s account the appropriate amount for postage.

To save money, a bulk mailer may also transport the bulk mailing itself to a destination USPS facility to obtain lower postage rates rather than simply deliver the bulk mailing to the appropriate BMEU.  To do so, a mailer must bring both the bulk mailing and a form known as Postal Service Form 8125 (“PS 8125 Form”) to the BMEU for verification.  Once verified, the BMEU personnel debit the mailer’s account and fill out the PS 8125 Form with information about the bulk mailing, including the mailer’s permit number, the total number of pieces of mail and the total mail weight.  BMEU personnel also affix a USPS stamp to the form.  The mailer then takes the bulk mailing and the PS 8125 Form to the destination USPS facility for delivery.  A USPS employee at the destination facility reviews the bulk mailing and the form to ensure they match and for completeness before accepting the mailing and the PS 8125 Form.

Between approximately July 2014 and March 2016, KUSS brought bulk mailings to destination USPS facilities with fraudulent PS 8125 Forms.  KUSS had filled out and stamped the forms to appear as though the bulk mailings had been brought to and verified by the BMEU in Bristol, and as though the USPS had appropriately debited his advanced deposit account.  In fact, KUSS had not brought the bulk mailings to the BMEU, the BMEU had not verified the mailings, and the USPS had not debited his advanced deposit account.

KUSS delivered at least 125 bulk mailings to destination USPS facilities around the country pursuant to this scheme.  As a result, he sent 3,260,183 pieces of mail without paying for postage, and the USPS lost $749,573.

The charge of mail fraud carries a maximum term of imprisonment of 20 years.  KUSS is scheduled to be sentenced by U.S. District Judge Robert Chatigny on April 17, 2017.

This matter is being investigated by the U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and John H. Durham.

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Argentine Sports Marketing Company Admits To Role In International Soccer Bribery Conspiracy And Agrees To $112 Million In Forfeiture And Criminal Penalties

Torneos y Competencias S.A. Enters Into Four-Year Deferred Prosecution Agreement; Agrees to Enhanced Internal Controls and Compliance Obligations

Earlier today, the U.S. Attorney’s Office for the Eastern District of New York filed a criminal information in Brooklyn federal court charging Torneos y Competencias S.A. (Torneos), a South American sports marketing company, with wire fraud conspiracy in connection with the company’s long-running participation in a scheme to corrupt international soccer.  Torneos entered into a deferred prosecution agreement with the government in which the company admitted to its role in the 15-year scheme, including its role in paying tens of millions of dollars in bribes and kickbacks to a high-ranking FIFA official to secure his support for, among other things, the acquisition of rights to broadcast the 2018, 2022, 2026, and 2030 editions of the FIFA World Cup.  As part of the deferred prosecution agreement, Torneos agreed to over $112.8 million in forfeiture and criminal penalties, and further agreed to implement enhanced internal controls and a rigorous corporate compliance program and to cooperate fully with the government’s ongoing investigation.

The charge and resolution were announced by Robert L. Capers, U.S. Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, FBI, New York Field Office; and Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation.

“Today’s announcement marks another important step in our continuing effort to root out corruption in international soccer and sends a clear message that corporate entities that rely on the U.S. financial system to enrich themselves through bribery will be held to account,” stated U.S. Attorney Capers.  “Today, Torneos is being held to account for its conduct, but under new management it is also being given a chance to change the way the business of soccer is done in the future.  This corporate resolution reflects the seriousness and sustained nature of Torneos’s criminal conduct as well as the prompt and decisive actions the company undertook to cooperate after the charges in this investigation were first unsealed last year.  We are following the evidence where it leads and will continue to bring the individuals and entities who have corrupted soccer to justice.”  Mr. Capers extended his thanks to the agents, analysts, and other investigative personnel with the FBI New York Eurasian Joint Organized Crime Squad and the IRS Criminal Investigation Los Angeles Field Office, as well as their colleagues abroad, for their continuing commitment and dedication over the course of this multi-year investigation.

“The only people who should be scoring in a soccer match are the players on the field, not the myriad of companies behind the scenes who see the game as an easy payday.  As alleged in this case, we won’t allow businesses to use our financial systems for corrupt practices, and we will continue our search for those entities who are still doing so,” said FBI Assistant Director-in-Charge Sweeney.

“As today’s agreement reflects, Torneos y Competencias undermined the process of fair and open competition when they engaged in corrupt schemes to pay bribes in order to secure lucrative contracts,” said IRS Criminal Investigation Chief Weber.  “The IRS is committed to aggressively investigating corporations that use a complex web of offshore entities and foreign and domestic bank accounts to enrich themselves through bribery.”

The Criminal Scheme

According to court documents, Torneos engaged in a 15-year scheme to corrupt international soccer through the payment of bribes and kickbacks to high-ranking officials of FIFA, the organization responsible for the regulation and promotion of soccer worldwide, as well as leading officials of the continental confederations and other soccer governing bodies that operate under the FIFA umbrella.  Torneos conspired with others to systematically pay and agree to pay tens of millions of dollars in bribes and kickbacks to high-ranking officials of FIFA, two of FIFA’s confederations, CONCACAF and CONMEBOL, and several national member associations, including the Argentine national soccer federation (AFA), to obtain lucrative media and marketing rights to international soccer tournaments and matches.  In addition to multiple editions of the FIFA World Cup, these tournaments and matches included the CONMEBOL Copa Libertadores, the CONMEBOL Copa América, the jointly organized CONMEBOL/CONCACAF Copa América Centenario, and international friendly matches played by the Argentinian national soccer team.

Torneos and its co-conspirators employed a variety of means to prevent the detection of their illegal activities and to conceal the location and ownership of proceeds of those activities, including the use of sham contracts and invoices, reliance on corrupt intermediaries and bankers, the creation and use of shell companies, and the use of cash.  Torneos and its co-conspirators also relied on the integrity of the U.S. financial system and its banking institutions and wire facilities to facilitate their scheme, and on the growing U.S. market for soccer to generate profits from the scheme.

The following are three examples of the conduct encompassed in the wire fraud conspiracy charged in the information filed today and to which Torneos has admitted as part of its agreement with the government:

FIFA World Cup

Over the course of several years starting in approximately 2010, Torneos, at times with the assistance of an affiliate of a major broadcasting company headquartered in Latin America and one of its high-level executives, paid millions of dollars in bribes and kickbacks to a high-ranking and influential FIFA official in connection with the Latin American broadcasting company affiliate’s acquisition of rights to broadcast the 2018, 2022, 2026, and 2030 editions of the World Cup, and the subsequent purchase and exploitation by Torneos’s subsidiary TyC International B.V. (TyC International) of the rights to broadcast those editions of the World Cup to audiences in Argentina, Uruguay, and Paraguay.  Among other things, the FIFA official – who was also a high-ranking official of CONMEBOL and AFA – used his enormous influence within the global governing body, in exchange for bribes, to push FIFA to sell lucrative rights to broadcast the 2026 and 2030 editions of the World Cup to the Latin American broadcasting company affiliate earlier than anticipated and long before the selection of host countries for those editions of the tournament.

CONMEBOL Copa Libertadores

Over the course of 15 years, Torneos executives and their co-conspirators systematically paid millions of dollars in annual bribe and kickback payments to high-ranking officials of CONMEBOL and its member associations in exchange for their support of Torneos affiliate T&T Sports Marketing Ltd. (T&T) as the holder of the broadcasting rights to the Copa Libertadores, South America’s premier club team tournament.  T&T was owned by Torneos and, at various times and in part, by affiliates of a major broadcasting company headquartered in the United States.  At times, Torneos paid the bribes and kickbacks with the agreement and support of the U.S. broadcasting company affiliates and their representatives, including three high-ranking executives.  Torneos employed a variety of means to facilitate and disguise the annual bribe and kickback payments, including the use of intermediaries, shell companies created off the official books of Torneos, currency dealers, and cash.

CONMEBOL Copa América and CONMEBOL/CONCACAF Copa América Centenario

In 2013, Torneos and its co-conspirators formed a new company, Datisa S.A. (Datisa), which included as its three shareholders Torneos’s subsidiary Productora de Eventos S.A.; the Traffic Group, a multinational sports marketing conglomerate headquartered in Brazil; and another sports marketing company headquartered in Argentina.  Datisa thereafter paid and agreed to pay tens of millions of dollars in bribe and kickback payments to high-ranking officials of CONMEBOL, CONMEBOL’s member associations, and the president of CONCACAF in connection with the companies’ acquisition of the media and marketing rights to the 2015, 2019, and 2023 editions of the Copa América and to the 2016 Copa América Centenario, a centennial edition of the tournament played earlier this year in stadiums across the United States.  According to court documents, at least 17 soccer officials are implicated in this scheme alone.

Deferred Prosecution Agreement

Pursuant to the deferred prosecution agreement filed today, Torneos has waived federal indictment, agreed to the filing of the criminal information, and accepted responsibility for its criminal conduct and that of its senior executives and other employees.  In addition, Torneos has agreed to forfeiture of $89,062,616, which represents profits it made from corrupt contracts, and to pay a criminal penalty of $23,760,000 to the government over the term of the agreement.  In consideration of Torneos’s remedial actions to date – which has included the termination of its entire senior management team and the hiring of a new General Manager, Chief Financial Officer, Legal Director and Chief Compliance Officer, and Compliance Manager – and its commitment to, among other things: (a) accept and acknowledge responsibility for its conduct; (b) continue its cooperation; (c) agree to forfeiture and make the payment of a financial penalty; and (d) implement enhanced internal controls and a rigorous corporate compliance program that includes policies and procedures designed to detect and deter violations of all applicable federal, state, and foreign anti-corruption laws, the government agreed to defer the prosecution for a period of 48 months and to obtain an exclusion of time under the Speedy Trial Act to allow Torneos to demonstrate good conduct and compliance with the terms of this agreement.  The Honorable Pamela K. Chen approved the exclusion of time at a proceeding held in Brooklyn federal court earlier today.  If Torneos complies with its obligations under the agreement, the government will move to dismiss the charge filed today after the conclusion of the 48-month period.  If Torneos violates the agreement, it is subject to full criminal prosecution.

The charge and resolution announced today are part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’s New York Field Office, and the IRS-CI Los Angeles Field Office.  The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.  Assistant United States Attorneys Evan M. Norris, Samuel P. Nitze, Brian D. Morris, M. Kristin Mace, and Tanya Hajjar are in charge of today’s prosecution.

The government’s investigation is ongoing.

The Defendant:

TORNEOS Y COMPETENCIAS S.A.
Buenos Aires, Argentina

E.D.N.Y. Docket No.: 16 CR 634 (PKC)

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California Man Pleads Guilty to Perpetrating Trademark Scam and Money Laundering

Associate Pleads Guilty to Helping Launder Proceeds of Scam

LOS ANGELES – A Southern California man who masterminded a $1.66 million mass-mailing scam targeting trademark applicants pleaded guilty today to charges of mail fraud and money laundering, and his associate pleaded guilty to helping launder the scam’s proceeds.

Artashes Darbinyan, 37, of Glendale, pleaded guilty to one count of mail fraud and one count of conspiracy to launder monetary instruments before U.S. District Judge Stephen V. Wilson.

Orbel Hakobyan, 42, also of Glendale, pleaded guilty to one count of conspiracy to launder monetary instruments before Judge Wilson.

Judge Wilson is scheduled to sentencing both defendants on June 19.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker, Inspector in Charge Robert Wemyss of the United States Postal Inspection Service (USPIS) Los Angeles Division and Acting Special Agent in Charge Anthony J. Orlando of the Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.

As part of his guilty plea, Darbinyan admitted that he ran a mass-mailing scam through companies called Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO). The scam involved fraudulent offers of a service in which TCC and TCO promised to monitor an applicant’s trademark for infringing marks and to register the trademark with U.S. Customs and Border Protection (CBP), which offers a real service that screens imports for possibly infringing trademarks. The offers were made via mail solicitations to applicants for U.S. trademarks for $385. Darbinyan never registered, nor ever intended to register, any of the trademarks with CBP for the customers who paid the fee.

Darbinyan also admitted to concealing his control over the scam through elaborate measures in which he illegally used the identities of other people to open accounts at virtual office centers in the Washington, D.C., area, which received and then forwarded victims’ payments to other virtual office centers in the Los Angeles area. Using those same illicit identities, Darbinyan then opened bank accounts at Wells Fargo through which he laundered the proceeds of the scam. To further avoid detection, Darbinyan paid virtual office fees with money orders; used bogus email accounts, which he would only log into using prepaid wireless modems; and regularly changed cell phone numbers.

“These defendants preyed upon American businesses interested in protecting their intellectual property,” said United States Attorney Eileen M. Decker. “In addition to the underlying fraud, this case involved identity theft and money laundering, but, despite these efforts to conceal their activity, these defendants now face federal prison time for their crimes.”

Robert Wemyss, Postal Inspector in Charge of the Los Angeles Division stated: “This investigation was an excellent example of a partnership between state and federal law enforcement agencies across the country, working together to bring down a nationwide fraud conspiracy. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing these individuals in this case to justice.”

As part of his guilty plea, Hakobyan admitted to helping launder the proceeds of the trademark scam. Specifically, Hakobyan deposited victims’ checks into bank accounts at Wells Fargo that had been opened under false names. Hakobyan misrepresented his identity to withdraw funds from the accounts at Wells Fargo in the form of cash and cashier’s checks, which he then used to purchase gold. In total, he admitted to helping launder approximately $1.29 million of the scam’s proceeds.

“As admitted today, Darbinyan and Hakobyan used false identities and virtual office centers to scam trademark holders. They turned their illicit proceeds to cash and gold,” said IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation remains committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”

In total, Darbinyan admitted, the trademark scam defrauded approximately 4,446 victims of $1.66 million.

Darbinyan and Hakobyan were charged along with Albert Yagubyan, 36, of Burbank, California, in a second superseding indictment unsealed on July 19, 2016. Yagubyan, the former branch manager of the Wells Fargo branch where the majority of the scam’s proceeds were laundered, is awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

USPIS and IRS-CI investigated the case. Trial Attorneys William Johnston and Brian Kidd of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s pleas are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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Stratos Sentenced to over 21 Years in Prison

He Defrauded Victims of Over $30M Through Multiple Schemes and Obstructed Justice

SACRAMENTO, Calif. — Troy David Stratos, 50, formerly of Los Angeles, was sentenced today by United States District Judge Troy L. Nunley to 21 years and 10 months in prison for multiple counts of mail fraud, wire fraud, money laundering and obstruction of justice, United States Attorney Phillip A. Talbert announced.

U.S. Attorney Talbert stated, “The fraudulent schemes devised and orchestrated by Stratos were staggering in their scope and audacity. Stratos crafted multiple layers of lies and worked to obstruct his victims’ and the authorities’ ability to discover the truth. He preyed upon his victims to satisfy his own voracious greed and desire for a lavish lifestyle. The sentence today reflects the seriousness of his crimes and the harm done to his victims.”

“Despite the complexity of his lies to conceal his schemes, Troy Stratos is, quite simply, a common con artist. He exploited a life-long friendship to live luxuriously while draining the friend’s financial accounts. He also misrepresented himself to others to glean funds for stock shares that never existed to support his fraudulent lifestyle,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “The FBI will identify and investigate individuals who perpetrate such large-scale fraud to ensure they face justice for their crimes.”

According to court documents and evidence presented during the course of the case, between August 2005 and September 2007, Stratos devised and executed a scheme to defraud his targeted victim of money and property. He told her that he was wealthy and successful, and that, among other things, he had made substantial money from oil investments. Stratos promised that he would help manage the victim’s portion of the proceeds from her recent divorce, including real property in her name and cash assets. Stratos told her that she needed to create a trust allowing Stratos to have access and control over her assets and the trust.

Stratos falsely represented that he would invest the divorce proceeds overseas, including in Dubai and in the United Arab Emirates, where the proceeds would earn a high rate of return. Stratos also falsely represented that he would pay for her expenses from his own money because her money was purportedly invested overseas.

Stratos never invested any money overseas as he promised. Instead, he diverted substantial sums of money from the trust for his own personal use. He also used portions of the money to pay the victim=s expenses, misrepresenting to her that he was spending his own money to pay those expenses.

Further, between February 2007 and April 2007, Stratos was informed of a grand jury subpoena that his bookkeeper had received requiring the production of various financial records relating to Stratos, including documents relating to Stratos’ spending the victim’s money in casinos in Las Vegas. Stratos instructed the bookkeeper to not provide some of the records. In April 2010, the FBI executed a search warrant for a storage locker maintained by Stratos and located the records covered by the grand jury subpoena that were withheld at the direction of Stratos.

Thereafter, beginning in December 2010 and continuing through February 2012, Stratos engaged in a new scheme to defraud Tim Burns, a financial manager in Pennsylvania, of approximately $11,250,000 of investors’ money. Burns was in the market to buy Facebook stock, pre-IPO (initial public offering), for some of his clients in 2011. Stratos, who used the alias “Ken Dennis,” because his own name had numerous negative postings on the internet, told Burns that he represented Carlos Slim, one of the wealthiest individuals in the world. Stratos claimed that Carlos Slim was in the process of purchasing a large block of Facebook shares, and Stratos offered to sell to Burns favorably priced Facebook shares that were in excess of what Carlos Slim was purchasing. Stratos also claimed to be connected with insiders at Facebook, including Mark Zuckerberg, and Facebook’s CFO. Stratos promised increasingly larger amounts of Facebook stock starting at approximately two million shares and up to 40 million shares. Based on the representations by Stratos, Burns sent three wire transfers totaling $11,250,000 to purchase the Facebook stock. The first wire transfer was sent to the client-trust account at Venable LLP, which was the law firm that Stratos had retained. The subsequent wire transfers were sent to bank accounts that Stratos controlled.

Throughout the scheme, Stratos assured Burns that the deal would close at any moment, often promising that the “papers” were about to be signed. Alternatively, Stratos offered to refund to Burns his deposit, even within a few days, but warned Burns that he would regret missing the opportunity to make money.

On December 20, 2011, the Federal Bureau of Investigation arrested Stratos in Los Angeles for the earlier fraud scheme. Stratos, through text messages and a telephone call, continued to tell Burns that the deal was real and that he could refund Burns’ money. By this time, Stratos had spent nearly all of the $11.25 million.

At sentencing, the court found that Stratos also engaged in other fraudulent conduct. The United States has estimated that Stratos obtained in excess of $43 million in fraudulent proceeds between in 1996 and his arrest in 2011.

A hearing was held to determine restitution. The court took it under submission and will issue a written order.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Todd Pickles and Jared Dolan prosecuted the case.

Stratos has remained in custody since his in arrest in 2011.

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Gabonese National Pleads Guilty To Foreign Bribery Scheme

The Son of a Former Prime Minister of Gabon Bribed High-Ranking Government Officials in Multiple African Countries to Obtain Uranium Concessions and Other Mining Rights

Samuel Mebiame, a Gabonese national and the son of a former Prime Minister of Gabon, pleaded guilty earlier today in Brooklyn federal court, to conspiring to make corrupt payments to government officials in Africa, in violation of the Foreign Corrupt Practices Act (FCPA).  Mebiame worked as a consultant to a joint venture between Och-Ziff Capital Management Group LLC, a New York-based hedge fund management company, and a Turks and Caicos incorporated entity.  Mebiame paid bribes to high level government officials in Chad, Niger, and Guinea to obtain opportunities in the mining sectors in each of those countries.  He faces up to five years’ imprisonment at the time of his sentencing.

The guilty plea was announced by U.S. Attorney Robert L. Capers of the Eastern District of New York; Principal Deputy Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ronald L. Whitsett, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), New York.

According to court filings and facts presented during the plea proceeding, Mebiame worked as a “fixer” for the joint venture and conspired with others to pay bribes to foreign government officials to obtain rights to mineral concessions from government officials on behalf of the joint venture.  Mebiame’s corrupt payments, made between at least 2007 and 2012, were directed to high-ranking government officials and were often masked through additional intermediaries or lawyers.  In Niger, Mebiame paid more than $3 million in bribes to a high-ranking government official both directly and through the use of intermediary agents, who were selected by the government official.  In addition, Mebiame made payments for luxury cars for the foreign official.  In return, Mebiame obtained licenses for uranium concessions from the government of Niger for the joint venture.  Similarly, in Chad, Mebiame paid cash bribes to a high-ranking government official and paid for luxury foreign travel for the official and the official’s wife.  In return, Mebiame obtained uranium concessions for the joint venture, including an asset which had been stripped from a French-owned company by the Chadian government at Mebiame’s urging.  In addition, during the conspirators’ efforts to establish a state-owned mining company in Guinea, Mebiame gained special access to government officials and confidential information by making corrupt payments and providing other benefits to senior government officials in Guinea, including an S-class Mercedes Benz sedan, the use of private planes, and cash.  During the conspiracy, Mebiame repeatedly traveled to the United States, received payments to U.S. bank accounts, and sent e-mail communications from the United States to further the scheme.  The communications included an e-mail between the conspirators which discussed a “bet” about what conduct would be sufficient to violate the FCPA.

Previously, on September 29, 2016, in connection with the government’s broader investigation, Och-Ziff was charged pursuant to a criminal information with violations of the FCPA’s anti-bribery, books and records, and accounting controls violations for conduct in Libya and the Democratic Republic of Congo, and conduct in Chad and Niger connected to Mebiame.  Och-Ziff entered into a deferred prosecution agreement in connection with those charges.  An Och-Ziff subsidiary company, OZ Africa Management GP, LLC, pleaded guilty to a one-count criminal information related to large-scale bribe payments in the Democratic Republic of Congo.  Sentencing of OZ Africa Management GP, LLC has been scheduled for March 29, 2017.

The government’s case is being prosecuted by the U.S. Attorney’s Office Business and Securities Fraud Section, and the Foreign Corrupt Practices Act Unit of the Department of Justice, Fraud Section.  Assistant United States Attorneys James P. Loonam, Jonathan P. Lax, and David Pitluck, Assistant Chief Leo R. Tsao and Trial Attorney James P. McDonald are in charge of the prosecution.

The charges in this case were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

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Arrest And Indictment Of Seven Individuals For Social Security Fraud

SAN JUAN, P.R. – On December 6, 2016, a Federal Grand Jury in the District of Puerto Rico returned five separate Indictments charging seven individuals with fraud against the Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.

The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits.

Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence would then be evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis.

The five indictments charge seven individuals of theft of government property, concealment or failure to disclose work activity to SSA and false statements or representations to the SSA. These defendants knowingly and willfully embezzled, stole, and converted to their own use the Social Security Disability Insurance Benefit payments to which the defendants knew that they were not entitled.

Two of the seven individuals, namely, Arturo Santiago-Acevedo and Erick Malavé-Hernández, were also charged with health care fraud. These defendants, as part of their SSA disability benefits, became eligible, applied for and received benefits under the Medicare Program.

Once a person is receiving SSA disability benefits for 24 months he/she automatically starts receiving Part A of the Medicare Program (hospitalizations) and they become eligible to apply for Part B and C of the Medicare Program. If they decide to apply for Part B and/or C of the Medicare Program, the monthly premium is deducted from their monthly disability benefits.

The other five defendants are: Ferdinand Negrón-Candelaria, a.k.a. “Yuca;” Jorge M. Bultrón-Casas, a.k.a. “Ernesto Bultrón Casas,” a.k.a. “George Bultrón;” Nancy López-Villanueva; Aracely Amadeo-Pumarejo and Luz B. Hiraldo-Rivera. They reported during a Continuing Disability Review (CDR) that the disability beneficiary had not been able to work due to different health conditions, when in truth they were working.

“This is a great example of ongoing efforts by the Government to deter fraud against the social security programs,” said United States Attorney Rosa Emilia Rodríguez-Vélez. The Department of Justice is committed to investigate and prosecute those who engage in fraudulent schemes. Hopefully this round of arrests will discourage more people from getting involved in these types of schemes, because we will continue investigating these crimes.”

SSA-OIG Special Agent-in-Charge John Grasso said: “The Social Security Disability Insurance program is intended to support individuals truly in need of this important and earned benefit, not those who are willing to lie about their true condition to steal from the Social Security Trust Fund. I am very grateful for the efforts of all of our law enforcement partners involved in this investigation, and for the continued commitment from the United States Attorney’s Office for the Commonwealth of Puerto Rico to aggressively pursue these important cases. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or https://oig.ssa.gov/report.”

These cases were investigated by the Social Security-OIG with the collaboration of Health and Human Services-Office of Inspector General, and the Puerto Rico Police Department and were indicted by Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez.

If convicted, the defendants could face a maximum penalty of 10 years of imprisonment and/or fines of up to $250,000.00.  Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.

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Chief Executive of Florida-Based Financial Firm Guilty of Fraud in $179 Million Sham Loan Scheme

CHICAGO — The CEO of a Florida-based financial firm has pleaded guilty to fraud charges in connection with the sale of $179 million in sham loans to a Milwaukee investment company.

NIKESH A. PATEL was the Chief Executive Officer of First Farmers Financial LLC when the company sold three fabricated loans totaling approximately $20 million to a Tennessee-based investment firm, and 26 fabricated loans to a Milwaukee investment firm for $179 million. Between November 2012 and September 2014, Patel created and assisted in creating false documents sent to the investment firms in support of these loans. Patel submitted documents to the Milwaukee investment firm that falsely created the appearance that his company had lent money to borrowers in Florida and Georgia – in amounts ranging from $2.5 million to $10 million – and that a portion of the loans were guaranteed by the federal government under a program administered by the U.S. Department of Agriculture. All 26 loans were completely fabricated with no actual borrower, no pre-existing loan, and no government guarantee.

Patel, 33, of Windermere, Fla., pleaded guilty on Tuesday to five counts of wire fraud. The conviction carries a maximum sentence of 100 years in prison and a fine of $1,250,000. U.S. District Judge Charles P. Kocoras set sentencing for April 6, 2017, at 9:45 a.m.

The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.

First Farmers’ president, TIMOTHY G. FISHER, was also convicted in connection with the fraud. Fisher, of Pasadena, Calif., pleaded guilty last month to one count of money laundering. Fisher faces up to ten years in prison when he is sentenced by Judge Kocoras on May 4, 2017, at 9:45 a.m.

Evidence in the case revealed that Patel created fictitious business names and false USDA loan identification numbers, and forged the signatures of USDA employees and purported borrowers. Patel also assisted in creating false financial documents, including what purported to be a certified audit by a fictitious accountant that he submitted to the investment firm to obtain the funds.

Based upon the false statements, the Milwaukee firm’s clients, which included community banks, retirement plans, municipalities and subdivisions in Illinois and elsewhere, suffered a loss of $179 million. Although a portion of the funds were used to make interest payments to the investors, the bulk of the funds were used to pay existing debts, acquire assets, pay personal expenses, invest in other unrelated businesses, and repurchase loans that Patel had previously sold to the Tennessee investment advisor.

The government is represented by Assistant U.S. Attorneys Patrick King and Rick Young.

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Canadian Deputy Health Minister Impersonator Sentenced To 60 Months’ Imprisonment In $26 Million Fraud Scheme

BROOKLYN, NY – Earlier today, Howard Leventhal, the President, Chief Executive Officer and Chief Technology Officer of mHealth Technologies Corp., formerly named Neovision USA, Inc. (Neovision), was sentenced by United States District Judge Brian M. Cogan to 60 months’ imprisonment.  In December 2013, Leventhal had pleaded guilty to wire fraud and aggravated identity theft for defrauding and attempting to defraud a number of individuals and entities of millions of dollars by falsely claiming that Neovision had a lucrative contract with Canada’s Department of Health (Health Canada) and for stealing the identity of Glenda Yeates, Health Canada’s former Deputy Minister of Health.  As part of the sentence, Leventhal was also sentenced to 3 years’ supervised release and ordered to pay $1,350,819.78 in forfeiture and restitution.

The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

“Leventhal used his considerable imagination, non-existent technology, and stolen identities to deceive a number of entities and individuals.  Fortunately for investors, his alternate reality, propped up by fabricated bank documents, unraveled and collapsed when he attempted to defraud an undercover FBI agent.  Today’s sentence sends a strong message to those who use lies and deceit to defraud investors that they will be held accountable for their crimes,” stated United States Attorney Capers.  Mr. Capers expressed his appreciation to the FBI for their hard work and dedication over the course of this investigation and prosecution and thanked the Royal Canadian Mounted Police (RCMP) and Health Canada for their significant cooperation and assistance in the investigation.

“Stranger than fiction truly applies in this case with the subject using a popular sci-fi movie as the inspiration to scam millions of dollars from people.  He also forged the signature of the Canadian deputy health minister, which not many people would question as legitimate.  The FBI and our law enforcement partners do all we can every day to stop these fraudsters, but we can’t do it alone.  This investigation serves as a warning to anyone thinking about investing any of their money, do the research and if everything doesn’t add up, we need them to call us,” stated FBI Assistant Director-in-Charge Sweeney.

According to court filings and facts presented at the sentencing hearings, Leventhal told potential investors that Neovision had written agreements with Health Canada, whereby Neovision would provide Health Canada with “Heltheo’s McCoy Home Health Tablet,” a device ostensibly named after the fictional Dr. Leonard McCoy of TV’s Star Trek series. The written agreement provided by Leventhal to potential investors was purportedly signed by Glenda Yeates, Canada’s former Deputy Health Minister, on behalf of the government of Canada.  For example, in May 2012, Leventhal used this agreement and entered into a factoring agreement with Paragon Financial Group, Inc. (Paragon”, a Florida company, whereby Paragon advanced Neovision $800,000 in exchange for Paragon’s right to collect a larger sum of money purportedly owed to Neovision by Health Canada.  Leventhal also used the purported agreement with Health Canada to solicit more than $26 million from other potential investors, including an undercover law enforcement agent posing as a high net worth individual.

Contrary to Leventhal’s representations, (1) there was no agreement between Health Canada and Neovision, (2) Health Canada did not owe Neovision any money, and (3) Deputy Health Minister Glenda Yeates’ signature on the agreement was a forgery.  To conceal his scheme, Leventhal assumed the identities of Health Canada representatives, including that of former Deputy Health Minister Glenda Yeates.  Further, Leventhal created and used domain names, telephone numbers, and email addresses that closely resembled those actually used by Health Canada.  For example, Leventhal created and used healthcanada.com.co and hc-sg-gc.ca in place of Health Canada’s true domain name hc-sc.gc.ca.

The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney Winston M. Paes is in charge of the prosecution.

The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit ww.StopFraud.gov.

The Defendant:

HOWARD LEVENTHAL
Age: 60
Grayslake, Illinois

E.D.N.Y. Docket No. 13-CR-695 (BMC)

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