1.
Cincinnati: Ohio Man Pleads Guilty to Conspiracy to Bomb Targets in Europe and the United States
Christopher Paul, of Columbus, Ohio, pled guilty to conspiring with others to use a weapon of mass destruction, namely explosive devices, against targets in Europe and the United States. On April 11, 2007, Paul was arrested in Ohio pursuant to a three-count indictment alleging that he conspired to provide material support and resources to terrorists; conspired to use a weapon of mass destruction; and provided material support and resources to terrorists. In pleading guilty to count two of the indictment, Paul has agreed to a sentence of 20 years in prison. The government has agreed to dismiss counts one and three of the indictment. A sentencing hearing will be scheduled following the completion of a pre-sentence investigation report. Full Story
2.
New York: Manager of Emperors Club VIP Prostitution Ring Pleads Guilty
Cecil Suwal pled guilty to conspiracy charges stemming from her participation in the international prostitution and money-laundering ring Emperors Club VIP (the "Emperors Club"). Suwal participated, from December 2004 until March 2008, in a conspiracy to promote, manage, and carry on an illegal prostitution business and to transport and to induce women to travel in interstate commerce with the intent that the women engage in unlawful prostitution. Specifically, among other things, Suwal controlled a website used to promote the business, received applications from potential prostitutes, and communicated with co-conspirators who arranged prostitution appointments for customers. Full Story
3.
Los Angeles: Former Broadcom Executives Indicted in Massive Stock-Options Backdating Case
Dr. Henry T. Nicholas, III, a co-founder and former CEO of Broadcom, and William Ruehle, the former CFO of the Irvine-based technology company, have been named in an indictment that charges them with engaging in a stock-option backdating scheme that forced Broadcom to write-down $2.2 billion in profits. A second federal grand jury indictment alleges Nicholas regularly maintained a supply of ecstasy, cocaine, methamphetamine and other controlled substances for use and distribution. Among other things, the narcotics indictment accuses Nicholas of using ecstasy to spike the drinks of industry executives and employees of Broadcom customers. Full Story
4.
Sacramento: Two Men Charged with Making Bomb Threats
A grand jury returned separate indictments charging Apun Mahapatra and Carlos Ramos with making bomb threats to, respectively, Delta Airlines and the U.S. Embassy in Italy. Mahapatra is also charged with one count of threatening to destroy an aircraft, and Ramos is also charged with one count threatening to destroy a building with explosives. Full Story
5.
New Orleans: Tax Assessor Betty Jefferson, along with Mose Jefferson and Angela Coleman, Indicted on Federal Charges
Betty Jefferson, an elected tax assessor in New Orleans, along with her brother, Mose Jefferson, and her daughter, Angela Coleman, were charged in a 31 count-indictment by a Federal Grand Jury for conspiracy to commit mail fraud and federal program fraud; aggravated identity theft, substantive program fraud, and mail fraud; and conspiracy to commit money laundering. Additionally, Betty Jefferson was charged with four counts of tax evasion and Mose Jefferson was charged with three counts of making false statements to federal investigators. Full Story
6.
Washington: Former Congressional Chief of Staff Pleads Guilty to Public Corruption Charge
John C. Albaugh, a former Chief of Staff to a former Member of the U.S. House of Representatives, has pled guilty to conspiracy to commit honest services wire fraud. As part of a plea agreement, Albaugh has agreed to cooperate with the ongoing investigation into the activities of former Washington, D.C., lobbyist Jack Abramoff and others. Full Story
7.
Dallas: Group of Seven Suspected Bank Robbers Indicted in Texas
A federal grand jury in Dallas has indicted all seven individuals and charged them with conspiracy and firearm charges the day after these individuals were arrested following a foiled bank robbery in Garland, Texas. This group of individuals was dubbed the “Scarecrow Bandits” by the FBI because during the first robberies they are believed to have committed, they wore loose shirts and floppy hats. Full Story
8.
New York: $16.5 Million from Civil Forfeiture Action Returned to Fraud Victims in Poland
Nearly $16.5 million has been remitted to a court-appointed receiver in Poland to be distributed to the victims of a scheme that defrauded Polish investors. The money was obtained through a civil forfeiture action filed by the United States government in Manhattan federal court to recover the proceeds of the scheme. This case marks the first time the United States government has returned fraud proceeds to victims in Poland. Full Story (pdf)
9.
Minneapolis: AGA Medical Corporation Agrees to Pay $2 Million Penalty and Enter Deferred Prosecution Agreement for FCPA Violations
AGA Medical Corporation (AGA), a privately-held medical device manufacturer, has agreed to pay a $2 million criminal penalty in connection with corrupt payments to Chinese government officials in violation of the Foreign Corrupt Practices Act (FCPA). Between 1997 and 2005, AGA, a high-ranking officer of AGA and other AGA employees agreed to make corrupt payments to doctors in China who were employed by government-owned hospitals and caused those payments to be made through AGA’s local Chinese distributor. In exchange for these payments, the Chinese doctors directed the government-owned hospitals to purchase AGA’s products rather than those of the company’s competitors. Full Story
10.
New York: Two Mortgage Brokers Plead Guilty in Multi-Million Dollar Foreclosure Rescue Fraud Scheme
Maurice McDowall and Aleksander Lipkin pled guilty in Manhattan federal court to participating in a wide-ranging home foreclosure rescue scheme, which defrauded homeowners who were facing foreclosure and banks and other lenders who made mortgage and home equity loans. Lipkin also pleaded guilty to participating in another scheme to defraud numerous subprime mortgage lenders. Full Story
