Federal Criminal Defense Lawyers

Tuesday, July 12, 2011

www.McNabbAssociates.com

Four Indicted by a Portland Federal Grand Jury in Drug Trafficking, Mortgage Fraud Scheme
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 10:55 AM July 12, 2011

The U.S. Attorneys Office District of Oregon on July 11, 2011 released the following press release: PORTLAND, Ore. Two members of an alleged drug trafficking organization were arraigned today on money laundering and marijuana trafficking charges involving the abuse of the Oregon Medical Marijuana Program (OMMP), U.S. Attorney Dwight C. Holton announced. Tu Ngoc Tran, 37, and Minhthy Ngoc Nguyen, aka Minh Thy Nguyen, Minaty Nguyen, Minthy Nguyen, 32, were each indicted on charges of conspiracy to manufacture and distribute more than 1,000 marijuana plants, manufacturing over 100 marijuana plants, and money laundering. Kiet Anh Nguyen, 41, and Huy Anh Nguyen, 36, were also indicted for their roles in drug trafficking, money laundering, and making false statements on mortgage loan applications. They were arraigned on June 28, 2011. All four of the defendants have been released on pre-trial supervision pending the August trial date. Included among the release conditions, the court ordered the defendants to refrain from participating in the OMMP or the medical marijuana program under Washington laws. The indictment also contains a forfeiture allegation for proceeds obtained or involved in the offenses, real property used in the offenses, and vehicles, including a 2004 Acura MDX, 1998 BMW M3, 2005 Porsche Cayenne SUV, and a 2001 Lexus sedan alleged to have been purchased with proceeds of the offenses. The case arose out of the execution of search warrants by the Multnomah County Sheriffs Office, the Regional Organized

Crime Narcotics Task Force, and the Clark Skamania Drug Task Force at three residences in Portland, Oregon and Vancouver, Washington on December 21, 2010. Officers seized over 500 marijuana plants, and over 100 pounds of processed marijuana from the residences, along with apparently forged OMMP documents, although neither Oregon residence was a registered OMMP grow site. Further investigation revealed that the organization allegedly made false statements on mortgage loan applications in order to secure mortgages on homes used to house the indoor marijuana grows. One such residence is now in foreclosure. These allegations are yet another example of criminals exploiting the medical marijuana program to mask sophisticated, multi-million dollar drug trafficking operations, said U.S. Attorney Holton. We will continue to aggressively pursue and prosecute such drug trafficking organizations, he added. This group is just one of many that is operating in Oregon under the cloak of the Oregon medical marijuana laws, said Lt. Ned Walls, Supervisor MCSO Investigations Division. Through a multiagency effort involving MCSOs Special Investigation Unit, the Regional Organized Crime and Narcotics Task Force, the Clark/Skamania County Drug Task Force and the U.S. Attorneys Office we were able to identify this group, pierce their medical marijuana veil, serve multiple search warrants and ultimately dismantle this drug trafficking organization. The investigation and the search of the marijuana grow sites was led by the Multnomah County Sheriffs Office, and the Regional Organized Crime Narcotics Task Force, with the assistance of other

state, county, local and federal law enforcement agencies, including Clark Skamania Drug Task Force, and the Federal Bureau of Investigation (FBI). The Multnomah County Sheriffs Office, FBI, and the United States Attorneys Office for the District of Oregon are also participating in the ongoing investigation. Conspiracy to manufacture and distribute more than 1,000 marijuana plants carries a maximum sentence of life in prison, a mandatory minimum sentence of 10 years in prison, and a fine of $10,000,000. Manufacturing 100 or more marijuana plants carries a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years, and a fine of up to $5,000,000. Money laundering is punishable by up to 20 years in prison, and making false statements on a loan application by up to 30 years in prison and a fine of $1,000,000. An indictment is only an accusation of a crime, and the defendants are presumed innocent unless and until proven guilty. The case is being prosecuted by Assistant U.S. Attorneys Jennifer J. Martin, AnneMarie Sgarlata, and Bob Nesler. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Justice Department and EPA Officials Focus on Environmental Justice in Newark, New Jersey
(USDOJ: Justice News)
Submitted at 2:11 PM July 12, 2011

Senior environmental enforcement officials from the U.S. Justice Department and Environmental Protection Agency (EPA) toured sites in Newark, N.J., today and met with federal partners and with

environmental and community organizations to discuss mutual efforts to address environmental challenges and enforce environmental laws, and in particular efforts to achieve environmental justice.

Federal Court Bars Three Men from Promoting Intermediary Transaction Tax Shelter
(USDOJ: Justice News)
Submitted at 10:58 AM July 12, 2011

A federal court has permanently barred Charles Klink, Caleb Grodsky and Steven Block from promoting abusive tax shelters known as intermediary transactions and distressed asset trusts.

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Members of Alleged Asian Organized Crime Organization Appear in Federal Court Today
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 1:38 PM July 12, 2011

The U.S. Attorneys Office District of Massachusetts on July 12, 2011 released the following: Detention Hearing Scheduled for Five Defendants Today at Noon BOSTON, Mass. Five federal defendants are scheduled to appear in U.S. District Court in Boston today, following a multi-year federal investigation into their roles in illegal activity in Chinatown and elsewhere. A total of 26 individuals from Massachusetts, Florida and Rhode Island have been indicted in connection with the alleged organized crime conspiracy. According to court filings, the FBIs Organized Crime Task Force led a longterm investigation into drug-trafficking, illegal gambling, extortion, prostitution, and other criminal activity in the Chinatown area of Boston and elsewhere. The investigation included courtauthorized wire surveillance of cellular telephones for seven months, including the cell phones of five of the defendants. The investigation to date has resulted in the seizure of more than $340,000, thirteen firearms and approximately 12,000 pills of suspected oxycodone. Investigators also uncovered extensive evidence of illegal gambling and prostitution, and the use of extortionate threats to collect loans to gamblers and others. Organized crime can paralyze or seriously disrupt small communities, particularly close-knit neighborhoods like Chinatown, said U.S. Attorney Carmen M. Ortiz. This criminal organization is alleged to have trafficked large amounts of drugs, threatened and beat up individuals who failed to pay off large illegal debts, and moved women around the country to work in their brothels. We encourage the victims of these alleged crimes to contact us to assist in protecting the community and prosecuting those responsible, added U.S. Attorney Ortiz. We are very fortunate in Massachusetts to have dedicated prosecutors, agents and local law enforcement who challenge themselves and creatively leverage resources to work these multi-faceted complex investigations. Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, said, The indictments and arrests stemming from this operation send a clear message

to those involved in organized crime organizations everywhere: The FBI and its law enforcement partners will pursue those who engage in drug dealing, illegal gambling, extortion and exploitation of women regardless of the geographic boundaries. SAC DesLauriers added, In this case, law enforcements jurisdictional reach and investigative tenacity culminated in the arrest of multiple individuals. The methodical nature and duration of this investigation reflects our collective dedicated effort to secure justice for the victims. Organized crime groups are emerging from every corner of the globe. Through our task-force and intelligence based model, we will use every tool at our disposal to disrupt and dismantle organized criminal enterprises. In late May, 13 men and women were charged in the first of three indictments with conspiracy to distribute and possession with intent to distribute oxycodone, marijuana and human growth hormone in the Massachusetts, Florida, South Carolina, and elsewhere. According to an affidavit filed in connection with detention proceedings, John Willis, 40, of Dorchester, also known as Bac Guai John (White Devil John), the leader of this drug-trafficking conspiracy, has a long history of involvement in Asian organized crime. The following were also charged in the drug-trafficking conspiracy with Willis: Brant Welty, 39, Kevin Baranowski, 41, and Bridget Welty, 38, all of Boston; Vincent Alberico, 29, of Centerville, Mass.; Peter Melendez, 50, of Sunrise, Florida; Aibun Eng, 38,and Steven Le, 21, both of Quincy; Brian Bowes, 42, and Michael Clemente, 29, both of Sunrise, Florida; Michael Shaw, 39, of Wilton Manors, Florida; Mark Thompson, 28, of Davie, Florida; and Anevay Duffy, 25, of Cumberland, Rhode Island. Alberico is also charged with assaulting a federal official who was performing his official duties. With the exception of Melendez, the defendants in this matter have been arrested. Willis, Le, and Alberico have been detained pending trial. Brant Welty remains in custody pending the courts decision on the governments motion for detention and Baranowski remains in custody pending a detention hearing on July 14. Alberico is in state custody. If convicted on these charges, Willis and Baranowski face up to 30 years in federal prison. Each of the remaining defendants faces up to 20 years in federal prison to be

followed by up to a life term of supervised release, and $1 million fine. In addition, Alberico also faces up to eight years in federal prison to be followed by up to three years of supervised release, and a $250,000 fine for the assault charge. On June 30, 13 additional defendants were charged in two separate indictments. One of the indictments charged Minh Cam Luong, 46, Vapeng Joe, 44, Hin Pau, 45, Judy Huyen Truong, 41, and Hui Zhou, 24, all of Quincy; Jian Ming Chen, 38, of Brighton; Elburke Lamson, 47, of Chelsea; Tan Ngo, 54, of Waltham; Songzeng Cao, 28, of Malden; and Yao Zheng Cao, 23, of Somerville, for operating an illegal gambling business since January 2010. That business has been based, since November 2010, at a illegal gambling den at 17-23 Beach Street in Chinatown. Luong, Pau, Songzeng Cao, Yao Zheng Cao and Zhou were also charged with using extortionate means, including threats or actual use of violence, to collect debts, including debts owed to the illegal gambling business. With the exception of Lamson and Truong, all defendants are currently in custody pending detention hearings. Five defendants are expected to have detention hearings today at noon. According to a court filing, Luong and Ngo were both members of Chinatowns Ping On Gang in the late 1980s and early 1990s, when the Gang was vying for control of crime in Chinatown. Both were convicted on federal charges including heroin trafficking, and both have served sentences in federal prison. If convicted on these charges, each of the defendants faces up to five years in federal prison to be followed by up to three years of supervised release, and a $250,000 fine on the illegal gambling business charge. Luong, Pau, Cao, Cao, and Zhou also face up to 20 years in federal prison to be followed by up to three years of supervised release, and a $250,000 fine for each count of using extortionate means to collect extensions of credit. Lastly, Wei Xing Chen, 50, of Cambridge, and Yue Q. He, age unknown, of Boston, were charged in an indictment with conspiracy to possess with the intent to distribute 3,4methylenedioxymethamphetamine and 1benzylpiperazine, both also known as ecstasy, and possession with intent to distribute 1-benzylpiperazine. In addition, Chen, He and Xiaohong Xue, 41, also of MEMBERS page 4

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Federal Criminal

Leader of International Money Laundering Organization Sentenced in Manhattan Federal Court to Nine Years in Prison
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:42 AM July 12, 2011

Drug Enforcement Administration (DEA) on July 11, 2011 released the following press release: JUL 11 MANHATTAN John P. Gilbride, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (DEA) and Preet Bharara, the United States Attorney for the Southern District of New York, announced that David Eduardo Helmut Murcia Guzmn, the founder of the Colombian marketing giant D.M.G. Group (DMG), was sentenced Friday, July 8, 2011 to nine years in prison for his participation in a scheme to launder millions of dollars worth of illicit funds, including narcotics proceeds, through DMG. Murcia Guzmn was sentenced in Manhattan federal court by U.S. District Judge William H. Pauley. Judge Pauley previously ordered Guzman to forfeit ten properties located in southern Florida and California, and $7 million. Manhattan U.S. Attorney Preet Bharara stated: Murcia Guzmn wove an intricate web of deception across continents to disguise his dirty drug money and support his lavish lifestyle. But his web has been untangled and his lifestyle dramatically curtailed by this sentence. According to the Superseding Indictment to which Murcia Guzmn pled guilty, and statements made in court: The DMG Organization David Eduardo Helmut Murcia Guzmn created DMG in 2003 as a vehicle for a multi-level marketing scheme, through which customers could buy pre-paid debit cards. DMG sold these pre-paid debit cards to customers in Latin America, who could use them to purchase electronics and other items at retail stores operated by DMG. By 2008, DMG had approximately 400,000 customers. DMG ceased its operations by January 2009. The Money Laundering Conspiracy Murcia Guzmn and five co-defendants employees and affiliates of DMG laundered narcotics proceeds through DMG and DMGs affiliated companies. They used the Colombian Black Market Peso Exchange, an informal value transfer

system commonly used to launder illicitly -obtained dollars in the United States, in exchange for pesos taken in for legitimate purchases in Colombia. For example, in the fall of 2007, Murcia Guzmn and co-defendant Margarita Leonor Pabon Castro approached another individual in Colombia and said that they had cash apparently in U.S. dollars that they could not deposit into the Colombian banking system. They asked the individual to set up an account in the United States where these funds could be deposited. Thereafter, the individual opened an account at Merrill Lynch in the United States, under the name Blackstone International Development (the Blackstone Account). Neither Murcia Guzmn nor Pabon Castro was listed as owners of the Blackstone Account. In March 2008, Murcia Guzmn and Pabon Castro told the same individual that they had provided $2.2 million worth of Colombian Pesos to co-defendant German Enrique Serrano-Reyes in Colombia, and, in exchange, Serrano-Reyes had caused the nearly $2.2 million to be wired into the Blackstone Account through eighteen separate wire transfers. In May 2008, the U.S. Government seized about $2.2 million from the Blackstone Account pursuant to a court order. When Murcia Guzmn was informed of the seizure of the Blackstone Account, he told the individual who set it up that he should not attempt to retrieve its contents, and should not, under any circumstances inform the authorities of Murcia Guzmns or Pabon Castros interest in the Blackstone Account. Co-defendant William Surez-Surez headed DMGs Colombian security and cash transportation operations, including overseeing the delivery of cash to money laundering agents and attempts to pay bribes to Colombian officials. Codefendant Luis Fernando Cediel Rozo supervised wire transfers and bulk cash transfers of millions of dollars of DMG money out of Colombia through the Black Market Peso Exchange. Co-defendant Santiago Baranchuk-Rueda received black market transfers of DMG money, including transfers overseen by cediel

rozo, to U.S. bank and brokerage accounts. On November 23, 2010, Murcia Guzmn pled guilty to conspiracy to launder the proceeds of narcotics trafficking. SurezSurez, Pabon Castro, Cediel Rozo, Baranchuk-Rueda, and Serrano-Reyes have each previously pled guilty to the same charge. On January 26, 2011, Serrano-Reyes was sentenced to a period of time already served. In addition to the prison term, Judge Pauley sentenced Murcia Guzmn, 30, of Colombia, to three years of supervised release. Murcia Guzmn was also ordered to pay a $100 special assessment and forfeit $7 million and all right, title, and interest in 10 properties located in Florida and California. Mr. Bharara praised the outstanding investigative work of the DEAs New York Drug Enforcement Task Force which is comprised of agents and officers of the DEA, the New York City Police Department, and the New York State Police DEAs Bogota Country Office, DEAs Caracas Country Office, DEAs Caribbean Division, U.S. Department of Homeland Securitys Immigration and Customs Enforcement (ICE), and ICEs Caracas Country Office. Mr. Bharara also thanked the Department of Justices Office of International Affairs for their ongoing assistance in the investigation. The prosecution is being handled by the Offices Terrorism and International Narcotics Unit, with the assistance of the Asset Forfeiture Unit. Assistant U.S. Attorneys Benjamin A. Naftalis, Telemachus P. Kasulis, and Michael D. Lockard are in charge of the prosecution. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Federal Criminal

Federal Criminal Defense Lawyers

Motorcycle Gang Members Face Murder, Drug Charges

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 1:23 PM July 12, 2011

The Associated Press (AP) on July 12, 2011 released the following: By JIM SALTER Associated Press ST. LOUIS (AP) Eighteen members of a motorcycle gang known as the Wheels of Soul face a federal indictment on charges ranging from racketeering to kidnapping to murder, including fatal shootings in three different states. The indictment handed up June 9 was unsealed Tuesday in U.S. District Court in St. Louis, and all but four of those indicted have been arrested. Police are seeking the remaining suspects. Three others not named in the indictment have been arrested on weapons charges, said Terry Dougherty, spokeswoman for the U.S. Attorneys office in St. Louis. The indictment alleges that a select few members of the gang achieved 1%er, or Diamond status for particularly violent activity. Some of the accusations are breathtaking; one member allegedly stabbed another person in the head during a fight at a Chicago motorcycle club, then shot another in the stomach. The indictment says gang members are required to carry weapons, mostly guns but also hammers, knives and others. Federal authorities cite meetings in St. Louis in 2009 in which a Wheels of Soul

member, Dominic Henley known within the gang as Bishop told others in the gang that a member in Gary, Ind., had been threatened. He instructed them to retaliate by robbing the rival gang members of their colors by any means necessary. Gang members raised money through robberies and by distributing drugs, especially crack cocaine, but also heroin, the indictment alleges. They are accused of plotting and carrying out several acts of violence including kidnapping, robbery and murder. In 2009, gang members allegedly shot and killed a member of the rival Sin City Titans gang in St. Louis. The shooting came weeks after a meeting in which, the indictment says, members were told that the Mother Chapter had declared open season on the Sin City Titans. In January, a member Wheels of Soul allegedly shot and killed a person in Chicago during an altercation with the rival Street Soldiers gang. And in March, a member is accused of shooting three victims in the back as they fled from a party in Marion, Ohio, killing one and seriously wounding another. In January, six of the accused went to an East St. Louis, Ill., nightclub intending to kill members of the rival Outkast OMG gang, according to the indictment. The plan was foiled because several police officers were seen near the club. A message seeking comment from U.S.

Attorney Richard Callahan was not returned. It wasnt immediately clear if any of the defendants had attorneys. Wheels of Soul gang members wear black vests adorned with patches on the back and commonly refer to the gang as the Nation. The indictment accuses gang members from St. Louis of planning to extort smaller gangs by requiring them to purchase a support patch that demonstrates subservience to the Wheels of Soul. The indictment alleges that the Wheels of Soul is governed by the Mother Chapter in Philadelphia, with regional chapters around the country. Federal agents raided two Wheels of Soul clubhouses in Philadelphia on Tuesday. The indicted are from seven states: Pennsylvania, Illinois, Ohio, Missouri, Colorado, Wisconsin and Kentucky. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

MEMBERS
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Cambridge, were charged in the same indictment with conspiring to induce travel to engage in prostitution. Chen, who operated brothels in Cambridge and Boston, is currently in custody. Arrest warrants have been issued for He and Xue. If convicted on the drug charges, Chen and He face up to 20 years in federal prison to be followed by at least three years of supervised release, and a $1 million fine on each count. In addition, if convicted of prostitution conspiracy, each of the defendants faces up to five years in federal prison to be followed by up to three years of supervised release, and a $250,000 fine. According to the affidavit, Willis and several of his co-defendants frequented Chens brothels and Luongs gambling den. Employees of Luongs gambling business frequented Chens brothels. Some of Luongs employees, including Joe, associated with Willis.

U.S. Attorney Ortiz; FBI SAC DesLauriers; William P. Offord; Special Agent in Charge of Internal Revenue Service, Criminal Investigation, Boston Field Division; Bruce Foucart, Special Agent in Charge of Immigration and Custom Enforcements Homeland Security Investigations in Boston; and Boston Police Commissioner Edward Davis made the announcement today. The cases were investigated by the FBI, IRS Criminal Investigation, DEA, ICE Homeland Security Investigations, Massachusetts State Police, Massachusetts Department of Correction, and Quincy, Cambridge, Medford, Boston and New York City Police Departments. Assistance was also received from the Broward County (Fla..) Sheriffs Office and the Ridgeland and Dillon Police Departments in South Carolina. The case is being prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Richard L. Hoffman of Ortizs Strike Force Unit.

The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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Justice

Patient Recruiter Sentenced to 27 Months in Prison in Connection with Detroit-Area Infusion Therapy Schemes
(USDOJ: Justice News)
Submitted at 3:41 PM July 12, 2011

A patient recruiter for three Detroit-area clinics was sentenced to 27 months in prison for his role in fraud schemes that attempted to defraud the Medicare program of more than $15 million.