GCIS INTELLIGENCE BRIEFING: Three Somalis Plead Guilty to Charges Relating to Piracy of Quest

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

20May2011 8:15pmEST

GCIS INTELLIGENCE UPDATE: NORFOLK, VA—Mohamud Hirs Issa Ali, a/k/a Sanadaaq, 32; Mohamud Salad Ali, a/k/a Juguuf, 35; and Ali Abdi Mohamed, a/k/a Basher, 30, all of Somalia, pled guilty today in Norfolk federal court to acts of piracy and hostage-taking against the S/V Quest, which resulted in the murder of United States citizens Scott Underwood Adam, Jean Savage Adam, Phyllis Patricia Macay, and Robert Campbell Riggle.

Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; Janice K. Fedarcyk, Assistant Director in Charge of the FBI’s New York Field Office; Alex J. Turner, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mark Russ, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) in Norfolk, made the announcement after the pleas were accepted by United States District Judge Mark S. Davis.

“These men have admitted to pirating an American yacht and holding four U.S. citizens hostage at gunpoint for ransom. Tragically, their piracy led to the execution of the four American hostages,” said U.S. Attorney MacBride. “Piracy is big business in Somalia, and today pirates got another reminder of the tremendous cost of participating in this criminal venture. If you pirate an American ship, you will be caught and you’ll face severe consequences in an American courtroom.”

FBI Assistant Director in Charge Janice K. Fedarcyk stated: “Today’s pleas are a crucial step in the judicial process. Mohamud Hirs Issa Ali and Mohamud Salad Ali, the leaders of these violent pirates, were armed hijackers who directed their subordinates to take hostages and seize the Quest, resulting in the death of four innocent Americans. Ali Abdi Mohamed fired a rocket propelled grenade at a U.S. Navy vessel. Modern piracy isn’t swordplay and derring-do; it’s armed robbery and cold-blooded murder at sea. The FBI remains determined to see pirates brought to justice.”

Today, Mohamud Hirs Issa Ali and Mohamud Salad Ali, both of whom acknowledged in connection with their pleas that they served as leaders of the piracy operation, pled guilty to piracy under the law of nations and hostage-taking resulting in death. The charges each carry a mandatory life sentence.

Ali Abdi Mohamed, who acknowledged in connection with his plea that he fired a rocket propelled grenade in the course of the crime, pled guilty to piracy under the law of nations. The charge carries a mandatory life sentence.

All three defendants warranted in their plea agreements that they played no role in the murder of the four United States citizens.

Sentencing for Mohamud Hirs Issa Ali is scheduled for September 6, 2011. Mohamud Salad Ali is scheduled to be sentenced on August 18, 2011, and sentencing for Ali Abdi Mohamed is scheduled for August 22, 2011.

The investigation of the case is being conducted by the FBI and the Naval Criminal Investigative Service.

The prosecution in the Eastern District of Virginia is being handled by Assistant U.S. Attorneys Benjamin L. Hatch, Joseph DePadilla, and Brian J. Samuels, from the U.S. Attorney’s Office, and Trial Attorney Paul Casey from the Department of Justice’s National Security Division.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Texas Man Guilty of Attempted Carjacking of Off-Duty Border Patrol Agent, Other Crimes

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

20May2011 8:13pmEST

GCIS INTELLIGENCE UPDATE: McALLEN, TX—Jose Antonio Armendariz, 27, last known to reside in Penitas, Texas, has been found guilty of all 12 counts charged against him in relation to the 2006 hostage-taking of a local rancher, two 2006 carjackings, and the 2009 attempted carjacking of an off-duty Border Patrol (BP) agent, United States Attorney José Angel Moreno announced today.

Yesterday, at approximately 4:00 p.m., a federal jury returned its verdict after approximately three hours of deliberation, finding Armendariz guilty of one count of attempted carjacking, two counts of carjacking, one count of conspiracy to commit carjacking, three counts of conspiracy to use or carry a firearm in relation to a crime of violence, three counts of using and carrying a firearm in relation to a crime of violence, one count of conspiracy to commit hostage taking, and one count of hostage taking.

Armendariz, aka “El Commandante,” was originally set to begin trial on Wednesday, Sept. 8, 2010. However, on the eve of trial, he elected to plead guilty instead to attempted carjacking. Later, he withdrew his plea and opted to go to trial.

During the eight-day trial, the jury heard testimony from multiple cooperators, federal agents, local law enforcement officers, and the four victims of the offenses of which Armendariz was convicted. The evidence showed, among other things, that Armendariz masterminded the hostage-taking of a local rancher in November 2006. In preparation for the commission of the hostage-taking, Armendariz and four accomplices carjacked two vehicles during which Armendariz’s accomplices threatened the victims with a firearm. Shortly after the second carjacking, four of Armendariz’s accomplices took a local rancher at gunpoint and Armendariz negotiated the $200,000 ransom that was eventually paid by the rancher’s family.

The jury also heard testimony of Armendariz’s involvement in the 2009 attempted carjacking of an off-duty Border Patrol agent. The evidence showed that Armendariz and at least seven accomplices planned to steal a vehicle at gunpoint that supposedly had a large amount of cash concealed within. According to the record of the case, on June 23, 2009, Claudia Elena Gomez Aguilar, 28, of Tamaulipas, Mexico, a card reader and Santisima Muerte worshipper, was contacted by a drug money courier who asked Gomez to pray for her as she traveled from Michigan to the Rio Grande Valley with a large sum of money. Instead, Gomez told De La Rosa and Juan Vite Martinez, 40, of Hidalgo, Mexico, about the trip and asked if they knew anyone willing to rob the courier and split the money with her. Martinez offered the name of “El Commandante.”

Armendariz was tasked with scouting U.S. Highway 281 to look out for the vehicle. However, they identified and attempted to steal the wrong vehicle. This vehicle actually belonged to an off-duty Border Patrol agent who was traveling with his young daughter. The agent and daughter were able to escape, but not before one of the assailants fired a shot that struck the agent’s vehicle. Both the agent and his daughter were unharmed.

In its verdict yesterday, the jury also found Armendariz used a firearm in relation to a crime of violence, that is, that a firearm was brandished in the 2006 carjackings and that a firearm was discharged during the 2009 attempted carjacking. With these findings, Armendariz now faces a maximum punishment of life imprisonment at his sentencing, which is set for July 26, 2011, as well as a fine of up to $250,000. Armendariz has been in federal custody since his January 2010 arrest where he will remain pending his sentencing hearing.

Nieves Rogelio Ramirez, 27, of Sullivan City, Texas; Jose Concepcion Hernandez, aka “El Mazapan,” 31, of Edinburg, Texas; along with Gomez and Martinez pleaded guilty last year to the attempted carjacking as well as the related firearm charge, while Maria Teresa De La Rosa, 28, of McAllen, Texas, pleaded guilty to one count of carjacking. Each remains in custody without bond pending sentencing. Also charged and convicted are Jose Wenceslado Mejia, 20, of Rio Grande City, Texas, and Dagoberto Navarro Pompa, 26, of Tamaulipas, Mexico. Mejia and Pompa have been sentenced to 150 and 180 months in prison, respectively, for their participation in the attempted carjacking.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Insurance Broker and Housing Authority Director Charged in New Jersey with Election Fraud

 

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

19May2011 6:31pmEST

GCIS INTELLIGENCE UPDATE:  NEWARK, NJ—A Newark federal grand jury has indicted Francis X. Gartland, an insurance broker, and Thomas J. O'Leary, the executive director of the South Amboy Housing Authority, for alleged federal election fraud, U.S. Attorney Paul J. Fishman announced. The six-count indictment, returned by the grand jury on May 17, 2011, and unsealed today, variously charges Gartland, 70, of Baltimore, Md., and O'Leary, 49, of South Amboy, N.J., with conspiracy to defraud the United States, violations of federal elections laws, and causing false statements to be submitted to the Federal Election Commission in connection with the 2006 Democratic primary campaign of Joseph Vas for United States Congress in New Jersey's 13th District.

O'Leary surrendered this morning to special agents of the FBI and is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. Gartland, who was separately charged in December 2010 for, among other things, allegedly participating in a bribery and kickback scheme and evading federal income taxes, is currently out on a $1 million bond in connection with those charges. An arraignment for both defendants will be scheduled before the U.S. District Judge assigned to the case.

According to the indictment unsealed today:

Gartland and O'Leary allegedly participated in a scheme to use "straw" or "conduit" contributors to funnel contributions to the Vas congressional campaign. Vas, the former mayor of Perth Amboy and New Jersey state assemblyman, and Melvin Ramos, Vas' former mayoral aide and the treasurer of Vas' campaign, were convicted on October 8, 2010, following a jury trial, of charges of mail fraud, fraud and misapplication of funds, false statements, and federal election crimes. Vas and Ramos were sentenced to 78 and 37 months in prison, respectively, by U.S. District Judge Susan D. Wigenton on April 12, 2011. In addition to the prison terms, Judge Wigenton sentenced Vas and Ramos to three years of supervised release and ordered them to pay $90,000 in restitution to Perth Amboy. Vas was also ordered to pay a $73,200 fine.

The indictment charging Gartland and O'Leary alleges that during the 2005-2006 election cycle, the defendants recruited 15 straw contributors to contribute between $2,000 and $2,100 each to Vas' federal campaign committee. Gartland and O'Leary allegedly funded the straw contributions by reimbursing each of the contributors by cash or check. Straw contributions are prohibited by the Federal Election Campaign Act.

The charges in the Indictment and maximum potential penalties per count are as follows:

Count(s)	Charged Defendant(s)	Maximum Potential Penalty
1– conspiracy to defraud the United States	O'Leary, Gartland	Five years in prison; $250,000 fine, or twice the aggregate gain or loss
2 – making contributions to a federal candidate in the names of others (more than $10,000 in a calendar year)	Gartland	Two years in prison; fine of not less than 300 percent and not more than the greater of $50,000 or 1,000 percent of the amount involved in the violation
3 – making contributions to a federal candidate in the names of others	O'Leary	One year in prison; $100,000 fine
4,5 – causing false statements to the Federal Election Commission	Gartland	Five years in prison; $250,000 fine, or twice the aggregate gain or loss
6 – causing false statements to the Federal Election Commission	O'Leary	Five years in prison; $250,000 fine, or twice the aggregate gain or loss

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, with the investigation leading to the Indictment.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Two Georgia Residents Charged in Sex Trafficking Ring That Used Internet to Recruit Women

 

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

19May2011 6:28pmEST

GCIS INTELLIGENCE UPDATE:   ATLANTA—SOLOMAN MANASSEH MUSTAFA, 37, of Stone Mountain, Georgia, and KALANDRA ANNETTE WALLACE, 24, of Jonesboro, Georgia have been indicted on federal charges relating to a sex trafficking ring operating in the Atlanta area. MUSTAFA was arraigned today before United States Magistrate Judge Christopher Hagy. An arraignment for WALLACE has not yet been scheduled. MUSTAFA and WALLACE face federal charges of sex trafficking, kidnapping, transporting women across state lines for prostitution, and document servitude. MUSTAFA also faces charges of receiving material involving the sexual exploitation of a minor, and of coercion and enticement of a minor for sexual activity. MUSTAFA and WALLACE were indicted by a federal grand jury on May 10, 2011.

United States Attorney Sally Quillian Yates said of the case, “Sex trafficking is unfortunately one of Atlanta’s most significant criminal problems. This case, like many, contains allegations of the defendants brutally assaulting women to force them into acts of prostitution in three states. While all of the victims managed to escape from the defendants, many were allegedly beaten, raped, handcuffed, and forced to snort cocaine by the defendant and his co-conspirator before they got away.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta, said, “The FBI remains committed to working with our various law enforcement partners in combating human trafficking and bringing forward for prosecution those individuals that would exploit others for personal gain. Public awareness of these types of crimes are not enough. Public involvement in reporting these matters to the FBI or other law enforcement is needed in turning the tide in the eradicating the scourge that is human trafficking.”

According to the indictment and other information presented in court: MUSTAFA and co-defendant WALLACE allegedly recruited and enticed young women via advertisements on Internet sites such as Craigslist and Backpage with the goal of forcing them into prostitution in the Atlanta metropolitan area, Alabama, and North Carolina. MUSTAFA and WALLACE are charged with conspiracy to engage in sex trafficking for physically assaulting many of the women, preventing them from leaving hotels or apartments, and forcing them to engage in commercial sex acts.

Specifically, the indictment alleges that two victims were bound with duct tape and placed in a closet. These victims, still bound with duct tape, were ultimately taken against their will to Homewood, Alabama for the purpose of having sex with men. Two other victims were allegedly forced to have sex with men and turn all of the money earned over to MUSTAFA and WALLACE. MUSTAFA’s alleged violent behavior was the same with many of the victims: he or WALLACE would pretend to want to date the women, but, instead, MUSTAFA allegedly would rape them. According to the indictment, one victim had a gun pointed at her head and was ordered to remove her clothes and stand naked in a corner of the room. Other women were forced to inhale a white powdery substance that appeared to be cocaine. Two victims were allegedly handcuffed to the bed to keep them from leaving.

MUSTAFA is also charged with receiving child pornography and attempting to persuade a juvenile to have sex with him. MUSTAFA allegedly communicated via text messaging with a young girl whom he believed to be 14 years old. In those text messages, he instructed the juvenile to send him photos of herself. Once MUSTAFA saw the photos, he told the juvenile that she could be his sex slave and he went to the juvenile’s home to pick her up. The juvenile left her home by tying bed sheets together and climbing out the window. Fortunately, MUSTAFA let the young girl go in a subdivision close to her home.

The indictment alleges that MUSTAFA and WALLACE also took the identification of some of the victims. After one victim escaped, MUSTAFA and WALLACE kept her identification and used it to rent hotel rooms and a house.

The sex trafficking, kidnapping, and coercion of a minor charges carry a maximum sentence of life in prison and a fine of up to $250,000. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

If anyone has any information about this or any human trafficking case, they are encouraged to report that information to the Federal Bureau of Investigation at 404-679-9000.

This case is being investigated by special agents of the Federal Bureau of Investigation with assistance from the FBI’s Metro Atlanta Child Exploitation Task Force which includes the Atlanta Police Department, the Gwinnett County Police Department, the City of Marietta Police Department, and the Sandy Springs Police Department. Other departments that have assisted in the investigation are the Holly Springs Police Department, the DeKalb County Police Department, the Clayton County Police Department, and the Homewood, Alabama Police Department.

Assistant United States Attorneys Susan Coppedge and Nekia S. Hackworth are prosecuting the case.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: CEO of Telecommunications Company Pleads Guilty in Foreign Bribery Conspiracy

 

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

19May2011 6:25pmEST

GCIS INTELLIGENCE UPDATE:  WASHINGTON—Jorge Granados, the former chief executive officer of Miami-based telecommunications company Latin Node Inc. (LatiNode), pleaded guilty today to conspiring to pay bribes to government officials in Honduras, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. To date, four former senior executives of LatiNode have pleaded guilty to conspiring to pay bribes to the Honduran officials.

Granados, 54, pleaded guilty before U.S. District Judge Joan A. Lenard in U.S. District Court in Miami to conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

"Jorge Granados today admitted to authorizing illegal bribe payments to Honduran officials, and now he must pay for his crime," said Assistant Attorney General Lanny A. Breuer of the Criminal Division. "Foreign bribery undermines competition in the marketplace and weakens democratic institutions. CEOs and other corporate executives should know that now, more than ever, violating the Foreign Corrupt Practices Act will lead to criminal prosecution."

"Today's plea reflects the FBI's commitment to aggressively pursue individuals and businesses that engage in corruption around the globe," said Special Agent in Charge John V. Gillies of the FBI's Miami Field Office. "Those who elect to pay illegal bribes to further their business interests in the United States or abroad should know that they are not beyond the reach of the FBI. We will work with our law enforcement partners and prosecutors to bring these corrupt individuals to justice."

"Business executives should beware that paying bribes in foreign countries leads to prosecution in the United States," said U.S. Immigration and Customs Enforcement (ICE) Director John Morton. "Our Foreign Corruption Investigative group will continue to provide resources and support to our international partners in an effort to fight corrupt business practices.

According to court documents, LatiNode provided wholesale telecommunications services using Internet protocol technology to countries throughout the world, including Honduras. In December 2005, LatiNode learned that it was the sole winner of an "interconnection agreement" with Empresa Hondureña de Telecomunicaciones (Hondutel), the wholly state-owned telecommunications authority in Honduras. The agreement permitted LatiNode to use Hondutel's telecommunications lines in order to establish a network between Honduras and the United States, and to provide long distance services between the two countries.

According to court documents, Granados and other LatiNode executives, including Manuel Salvoch, the chief financial officer; Manuel Caceres, the vice president for business development; and Juan Pablo Vasquez, the chief commercial officer, agreed to a secret deal to pay bribes to Hondutel officials, including the general manager, a senior attorney for Hondutel, and a minister of the Honduran government who became a representative on the Hondutel board of directors. According to court documents, between September 2006 and June 2007, LatiNode executives paid more than $500,000 in bribes to the Honduran officials, concealing many of the payments by laundering the money through LatiNode subsidiaries in Guatemala and to accounts in Honduras controlled by the Honduran government officials. Granados admitted that he authorized bribe payments.

At sentencing, scheduled for Aug. 22, 2011, Granados faces up to five years in prison and a fine of the greater of $250,000, or twice the value gained or lost.

On April 7, 2009, LatiNode pleaded guilty to a one-count information charging the company with a criminal violation of the FCPA. As part of the plea agreement, LatiNode agreed to pay a $2 million fine. The resolution of the criminal investigation of LatiNode reflected, in large part, the actions of eLandia International Inc. in disclosing potential FCPA violations to the department after eLandia's acquisition of LatiNode in 2007 and discovery of the improper payments. Granados and Caceres were charged in a Dec. 14, 2010, indictment with violations of the FCPA and international money laundering. On Dec. 17, 2010, criminal informations were filed against Salvoch and Vasquez, charging them with conspiracy to violate the FCPA. Salvoch, Vasquez, and Caceres pleaded guilty to conspiracy to violate the FCPA on Jan. 12, 2011, Jan. 21, 2011, and May 18, 2011, respectively. The three defendants face prison sentences of up to five years.

The case is being prosecuted by Acting Senior Deputy for Litigation Jeffrey H. Knox and Trial Attorney Amanda Aikman of the Criminal Division's Fraud Section. Significant assistance was provided by Trial Attorney James M. Koukios. The case was investigated by the FBI's Miami Field Office and ICE Homeland Security Investigation's Foreign Corruption Investigations Group in Miami.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Int'l Flight Diverted Due To Security Threat

ISSUED BY: GCIS Communications Command Center

8May2011 3:47pmEST

GCIS INTELLIGENCE UPDATE:

ALBUQUERQUE, NM (BERNALILLO) *AIRCRAFT INCIDENT* INTERNAT. AIRPORT. DELTA FLT 1706 DETROIT TO SAN DIEGO DIVERTED FOR SECURITY THREAT. FBI ON SCN. DC2

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Up to $5 Million Reward Offered for Information Regarding Shootings of Two ICE Agents

 

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

30March2011 11:30amEST

GCIS INTELLIGENCE UPDATE:  WASHINGTON—The Departments of Justice, State, and Homeland Security today jointly announced a reward of up to $5 million for information leading to the arrest and/or conviction of individuals allegedly responsible for the murder of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent Jaime Zapata and the attempted murder of ICE HSI Special Agent Victor Avila.

The FBI, in conjunction with ICE, has established a 24-hour tip line based in the United States to process the information. Individuals in the United States with information are encouraged to call 1-866-859-9778. Individuals in Mexico can provide information by calling +001 800-225-5324. Spanish language speakers will be available using either number. Anyone wishing to e-mail information can do so by visiting: https://tips.fbi.gov. All information is considered confidential.

Also today, the government of Mexico announced a reward of up to 10 million pesos for information leading to the arrest of individuals allegedly responsible for the murder and attempted murder. Individuals can call (55) 53-46-15-44 and (55) 53-46-00-00, extension 4748 in Mexico City. Outside of Mexico City, individuals can call 01-800-831-31-96 to provide information. Information may also be sent to the following e-mail address: denunciapgr@gob.mx. More information about the government of Mexico’s award can be found at www.recompensas.gob.mx.

Zapata and Avila were ambushed in Mexico on February 15, 2011, as they were traveling in their U.S. government-issued vehicle from the state of San Luis Potosi to Mexico City. Mexican authorities have detained several individuals in connection with this incident and the investigation continues at this time.

The U.S. reward is being offered by the U.S. government through the U.S. Department of State’s Narcotics Rewards Program, which was established by Congress in 1986. Additional information on this program can be found at: www.state.gov/p/inl/narc/rewards/index.htm. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Former Bank President and Senior Loan Officer Indicted in Multi-Million-Dollar Fraud Conspiracy

Failed Stockbridge Bank Allegedly Fleeced Before Being Seized By Feds

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

21March2011 8:19pmEST

GCIS INTELLIGENCE UPDATE: ATLANTA—An indictment unsealed today charges two former top officers of FirstCity Bank of Stockbridge, Georgia—MARK A. CONNER, 44, formerly of Canton, Georgia, and CLAYTON A. COE, 44, of McDonough, Georgia—with a variety of offenses, including conspiracy to commit bank fraud and bank fraud in connection with misconduct at FirstCity Bank in the years before the bank’s seizure by state and federal authorities on March 20, 2009. In addition to the conspiracy and bank fraud charges, the indictment charges CONNER with conducting a continuing financial crimes enterprise at the bank between February 2006 and February 2008, during which CONNER’s and his co-conspirators’ crimes allegedly generated over $5 million in unlawful gross proceeds.

A federal grand jury in Atlanta returned the sealed indictment against CONNER and COE on March 16, 2011. CONNER was arrested on the charges and taken into custody by federal agents at Miami International Airport yesterday morning, the two-year anniversary of FirstCity Bank’s failure, upon his arrival in Miami from the Turks and Caicos Islands in the West Indies. CONNER made his initial appearance today before a federal magistrate judge in Miami, who preliminarily ordered CONNER to be detained as a flight risk pending his transfer by Deputy U.S. Marshals from Miami to Atlanta for trial. A formal detention hearing will take place in Miami on Thursday, March 24, 2011, at 1:30 p.m. COE’s initial appearance on the indictment in the Northern District of Georgia has not yet been scheduled.

United States Attorney Sally Quillian Yates said, “The entire country has felt the deep economic impact of failed banks. At the heart of this indictment is an abuse of power by key insiders, who are charged with tricking their own colleagues into approving millions of dollars in commercial loans to fund the defendants’ own personal business activities, and to enrich themselves at the bank’s expense. Along the way, these defendants also allegedly defrauded state and federal bank regulators and examiners, and at least 10 other federally insured banks in Florida and Georgia that invested in the fraudulent multi-million-dollar loans.”

FDIC Inspector General Jon Rymer said, “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) is pleased to join the United States Attorney’s Office for the Northern District of Georgia and our law enforcement colleagues in announcing this indictment. We are particularly concerned when former senior bank officials, who have held positions of trust within their institutions, are alleged to have been involved in criminal activity. We will continue to aggressively pursue bank officials and others who victimize financial institutions.”

Neil Barofsky, SIGTARP Special Inspector General for the Troubled Asset Relief Program said, “Today’s indictment marks yet another occasion where bank executives are alleged to have turned to criminal fraud in the midst of the financial crisis, including an attempt to obtain millions of dollars from the American taxpayer through the Troubled Asset Relief Program. SIGTARP will continue to work with our law enforcement partners to bring those who engage in such crimes to justice.”

IRS-Criminal Investigation Special Agent in Charge Reginael McDaniel said of the case, “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money. Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”

According to United States Attorney Yates, the charges, and other information presented in court: CONNER served in a variety of top positions at FirstCity Bank between 2004 and 2009, including as vice-chairman of the board of directors, as a member of the banks’ loan committee, as president, and later as acting chairman and chief executive officer. COE served as a vice-president and as FirstCity Bank’s senior commercial loan officer. While serving in these positions, CONNER, COE, and their co-conspirators allegedly conspired to defraud FirstCity Bank’s loan committee and board of directors into approving multiple multi-million-dollar commercial loans to borrowers who, unbeknownst to FirstCity Bank, were actually purchasing property owned by CONNER or COE personally.

The indictment charges that CONNER, COE, and their co-conspirators misrepresented the essential nature, terms, and underlying purpose of the loans and falsified documents and information presented to the loan committee and the Board of Directors. CONNER, COE, and their co-conspirators then allegedly caused at least 10 other federally insured banks to invest in, or “participate in” the fraudulent loans based on these and other fraudulent misrepresentations, shifting all or part of the risk of default to the other banks. COE’s bonus compensation was tied to the origination of FirstCity Bank loans, including the fraudulent loans with which he and CONNER allegedly assisted each other.

In the process of defrauding FirstCity Bank and the “participating” banks, CONNER, COE, and their co-conspirators allegedly routinely misled federal and state bank regulators and examiners to conceal their unlawful scheme. They also unsuccessfully sought federal government assistance through the U.S. Treasury Department’s Troubled Asset Relief Program (“TARP”) and engaged in other misconduct in an attempt to avoid seizure by regulators and prevent the discovery of their fraud.

The charge against CONNER for conducting a continuing financial crimes enterprise carries a mandatory minimum sentence of 10 years in federal prison, a maximum sentence of life in prison, and a potential fine of up to $10 million. The conspiracy and bank fraud charges against CONNER and COE, and a remaining charge against COE for fraudulently influencing the actions of a federally insured bank, carry a maximum sentence of 30 years in prison and a potential fine of up to $1 million on each count. In determining the actual sentences for each defendant, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Former UBS Investment Banker Sentenced in Manhattan Federal Court to 22 Months in Prison for Insider Trading Scheme

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

21March2011 8:17pmEST

GCIS INTELLIGENCE UPDATE:  PREET BHARARA, the United States Attorney for the Southern District of New York, announced that IGOR POTEROBA, a former investment banker in the Healthcare Group of UBS Securities LLC (“UBS”), was sentenced today to 22 months in prison for his participation in an insider trading scheme in which he passed material, non-public information regarding six mergers and acquisitions that certain UBS clients were contemplating to a co-conspirator, ALEXEI P. KOVAL, who then traded on this information, generating hundreds of thousands of dollars in illicit profits. POTEROBA, 37, was sentenced in Manhattan federal court by U.S. District Judge PAUL A. CROTTY.

Manhattan U.S. Attorney PREET BHARARA said: “The message of today’s sentence of Igor Poteroba should be crystal clear—this office, along with our law enforcement partners, will not abide corrupt insiders who use their privileged positions to steal their companies’ valuable secrets and cash in on them. Professionals who engage in insider trading will be punished to the full extent of the law.”

According to documents previously filed in Manhattan federal court:

Since 2006, POTEROBA served as an executive director at UBS where he obtained material, non-public information (the “UBS Inside Information”) regarding certain mergers and acquisitions involving the following six publicly traded health care companies: Guilford Pharmaceuticals, Inc., Molecular Devices Corporation, PharmaNet Development Group, Inc., Via Cell, Inc., Millennium Pharmaceuticals, Inc., and Indevus Pharmaceuticals, Inc. (collectively, the “Health Care Companies”). In violation of his duties of trust and confidence, he then disclosed the UBS Inside Information to KOVAL, who in turn disclosed the UBS Inside Information to another co-conspirator (“CC-1”).

As part of the scheme, POTEROBA typically tipped KOVAL by telephone in advance of a public announcement that one of the Health Care Companies was to be acquired. Shortly after receiving such a call, KOVAL and CC-1 purchased securities in the company. Following the public announcement of the acquisition, KOVAL and CC-1 quickly sold the securities they had purchased. KOVAL and CC-1 executed dozens of securities transactions based on UBS Inside Information provided by POTEROBA. POTEROBA then received a portion of the profits from KOVAL.

In addition to his prison term, Judge CROTTY sentenced POTEROBA, of Darien, Connecticut, to three years of supervised release and ordered him to forfeit $465,095.21, representing the amount of foreseeable proceeds obtained as a result of the securities fraud offenses. Judge CROTTY also ordered POTEROBA to pay a $25,000 fine and will determine the amount of restitution at a later date.

POTEROBA’s co-defendant, ALEXEI KOVAL, 37, of Chicago, Illinois and Pasadena, California, pled guilty to related charges on January 7, 2011, and is scheduled to be sentenced on May 24, 2011, at 4:00 p.m., before Judge CROTTY.

Mr. BHARARA praised the investigative work of the FBI. Mr. BHARARA also thanked the U.S. Securities and Exchange Commission for its assistance in the investigation. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Man Convicted in North Carolina of Minting His Own Currency

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

21March2011 1:40pmEST

GCIS INTELLIGENCE UPDATE:  STATESVILLE, NC—Bernard von NotHaus, 67, was convicted today by a federal jury of making, possessing, and selling his own coins, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Following an eight-day trial and less than two hours of deliberation, von NotHaus, the founder and monetary architect of a currency known as the Liberty Dollar, was found guilty by a jury in Statesville, North Carolina, of making coins resembling and similar to United States coins; of issuing, passing, selling, and possessing Liberty Dollar coins; of issuing and passing Liberty Dollar coins intended for use as current money; and of conspiracy against the United States. The guilty verdict concluded an investigation which began in 2005 and involved the minting of Liberty Dollar coins with a current value of approximately $7 million. Joining the U.S. Attorney Anne M. Tompkins in making today’s announcement are Edward J. Montooth, Acting Special Agent in Charge of the FBI, Charlotte Division; Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Division; and Sheriff Van Duncan of the Buncombe County Sheriff’s Office.

According to the evidence introduced during the trial, von NotHaus was the founder of an organization called the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, commonly known as NORFED and also known as Liberty Services. Von NotHaus was the president of NORFED and the executive director of Liberty Dollar Services, Inc. until on or about September 30, 2008.

Von NotHaus designed the Liberty Dollar currency in 1998 and the Liberty coins were marked with the dollar sign ($); the words dollar, USA, Liberty, Trust in God (instead of In God We Trust); and other features associated with legitimate U.S. coinage. Since 1998, NORFED has been issuing, disseminating, and placing into circulation the Liberty Dollar in all its forms throughout the United States and Puerto Rico. NORFED’s purpose was to mix Liberty Dollars into the current money of the United States. NORFED intended for the Liberty Dollar to be used as current money in order to limit reliance on, and to compete with, United States currency.

In coordination with the Department of Justice, on September 14, 2006, the United States Mint issued a press release and warning to American citizens that the Liberty Dollar was “not legal tender.” The U.S. Mint press release and public service announcement stated that the Department of Justice had determined that the use of Liberty Dollars as circulating money was a federal crime.

Article I, section 8, clause 5 of the United States Constitution delegates to Congress the power to coin money and to regulate the value thereof. This power was delegated to Congress in order to establish and preserve a uniform standard of value and to insure a singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, Congress has the concurrent power to restrain the circulation of money which is not issued under its own authority in order to protect and preserve the constitutional currency for the benefit of all citizens of the nation. It is a violation of federal law for individuals, such as von NotHaus, or organizations, such as NORFED, to create private coin or currency systems to compete with the official coinage and currency of the United States.

Von NotHaus, who remains free on bond, faces a sentence of up to 15 years’ imprisonment on count two of the indictment and a fine of not more than $250,000. Von NotHaus faces a prison sentence of five years and fines of $250,000 on both counts one and three. In addition, the United States is seeking the forfeiture of approximately 16,000 pounds of Liberty Dollar coins and precious metals, currently valued at nearly $7 million. The forfeiture trial, which began today before United States District Court Judge Richard Voorhees, will resume on April 4, 2011 in the federal courthouse in Statesville. Judge Voorhees has not yet set a date for the sentencing of von NotHaus.

“Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” U.S. Attorney Tompkins said in announcing the verdict. “While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,” she added. “We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.” (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Goldman Sachs Computer Programmer Sentenced for Stealing Trade Secrets

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

21March2011 1:31pmEST

GCIS INTELLIGENCE UPDATE:  PREET BHARARA, the United States Attorney for the Southern District of New York, announced that SERGEY ALEYNIKOV, a former computer programmer at Goldman Sachs & Co. (“Goldman Sachs”) was sentenced today in Manhattan federal court to 97 months in prison for stealing valuable, proprietary computer code of Goldman Sachs. A jury in Manhattan federal court previously found ALEYNIKOV guilty on December 10, 2010, of theft of trade secrets and interstate transportation of stolen property charges. U.S. District Judge DENISE L. COTE imposed the sentence on ALEYNIKOV.

Manhattan U.S. Attorney PREET BHARARA said: “Protecting the proprietary information of America’s companies is critically important. Today’s sentence sends a clear message that professionals like Sergey Aleynikov who abuse their positions of trust to steal confidential business information from their employers will be prosecuted and punished.”

According to the evidence presented at trial and at the sentencing hearing:

From May 2007 to June 2009, ALEYNIKOV was employed at Goldman Sachs as a computer programmer responsible for developing computer programs supporting the firm’s high-frequency trading on various commodities and equities markets. Since acquiring the system in 1999 for approximately $500 million, Goldman Sachs modified and maintained it and took significant measures to protect the confidentiality of its computer programs. Goldman Sachs’ trading system generated millions of dollars per year in profits for the firm. They took several measures to protect the system’s source code, including requiring all Goldman employees to agree to a confidentiality agreement.

In April 2009, ALEYNIKOV resigned from Goldman Sachs and accepted a job at Teza Technologies (“Teza”), a newly-formed company in Chicago, Illinois. He was hired to develop Teza’s own version of a computer platform that would allow Teza to engage in high-frequency trading. His last day of employment at Goldman Sachs was June 5, 2009.

Beginning at approximately 5:20 p.m. on June 5, 2009—his last day working at Goldman Sachs—ALEYNIKOV, from his desk at Goldman Sachs, transferred substantial portions of the firm’s proprietary computer code for its trading platform to an outside computer server in Germany. He encrypted the files and transferred them over the Internet without informing Goldman Sachs. After transferring the files, he deleted the program he used to encrypt them and deleted his computer's “bash history,” which records the most recent commands executed on his computer.

In addition, throughout his employment at Goldman Sachs, ALEYNIKOV transferred thousands of computer code files related to the firm’s proprietary trading program from the firm’s computers to his home computers, without the knowledge or authorization of Goldman Sachs.

On July 2, 2009, ALEYNIKOV flew to Chicago, Illinois, to attend meetings at Teza’s offices, bringing with him his laptop computer and another storage device, each of which contained Goldman Sachs’ proprietary source code. He was arrested on July 3, 2009, as he arrived at Newark Airport following that visit.

In addition to the prison sentence, Judge COTE ordered ALEYNIKOV to serve three years of supervised release following his prison sentence. Judge COTE also ordered him to pay a $12,500 fine.

During the sentencing proceeding, Judge COTE said, “[Aleynikov’s] conduct deserves a significant sentence because the scope of his theft was audacious—motivated solely by greed, and it was characterized by supreme disloyalty to his employer.”

Mr. BHARARA praised the investigative work of the FBI in this case. Mr. BHARARA also thanked Goldman Sachs for its cooperation in the investigation. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: FBI begins to take note of 'Sovereign Citizen' activity

ISSUED BY: GCIS Communications Command Center

SOURCE: AJC

18March2011 10:43amEST

GCIS INTELLIGENCE UPDATE: Federal authorities are seeing an increase in the number of  foreclosed and unoccupied homes in metro Atlanta being seized by members of an anti-government group.

"I'm not sure I can connect it with the economy, but we've seen a surge of these in the last year, in particular," Stephen Emmett, special agent in the Atlanta field office of the FBI, said Saturday. Emmet said federal and local authorities increasingly are running into confrontations with members of a sect known as "sovereign citizens."

The group believes banks can't own land or property and that any home owned by a bank -- including the thousands of foreclosed properties throughout Georgia -- are theirs for the taking. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Leader of Violent D.C. Drug Gang Sentenced to Lengthy Prison Term

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

17March2011 9:25pmEST

GCIS INTELLIGENCE UPDATE: WASHINGTON—Antwuan Ball, 40, was sentenced today to a prison term of 18 years and nine months for drug-dealing activities that took place when he was the leader of the Congress Park Crew, a violent drug gang that operated in Southeast Washington.

The sentencing, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; James W. McJunkin, Assistant Director in Charge of the FBI's Washington Field Office; and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).

Ball, also known as Big Ant, appeared before the Honorable Richard W. Roberts for sentencing for one count of unlawful distribution of five grams or more of crack cocaine. The judge cited the defendant's leadership role in the gang as well as his possession of guns during the time that he dealt crack cocaine in the Congress Park area.

Ball, of Washington, D.C., was one of six defendants prosecuted by the government during an eight-month trial in 2007. During that trial, the government presented evidence that Ball, along with his five co-defendants, Gregory Bell, aka Boy-Boy; Joseph Jones, aka Jo-Jo; Dominic Samuels, aka Don; Desmond Thurston, aka Daz; and David Wilson, also known as Cool Wop, as well as others, were members of a crew that had engaged in a series of crimes, including crack cocaine dealing, armed robbery, attempted murder, and murder in the Congress Park neighborhood of Southeast Washington for more than a decade.

Since March of 2005, 18 individuals have been indicted in connection with this case. Ball and his five-co-defendants were the final defendants remaining from the original March 2005 indictment. The others previously pled guilty or had been found guilty after trial.

The jury in this trial acquitted the six defendants of the charged conspiracy in this case, but convicted them on 18 other felony charges stemming from violence and drug-dealing.

Judge Roberts previously sentenced co-defendant Bell to a 16-year prison term. Jones was sentenced to a 15-year term, and Thurston to 16 years and two months. The jury was unable to reach a verdict against Samuels in the August 2002 murder of Jamel Sills, aka Black. However, Samuels subsequently pled guilty to manslaughter while armed and was sentenced to a seven-year prison term.

Wilson, another leader of the gang, was sentenced last week to the longest term for any of the defendants: 45 years and eight months in prison for his role in two murders and other crimes. The murder charges stemmed from the slayings of Ronnie "Squid" Middleton, 27, and Sabrina Bradley, 26, which took place early August 17, 1998 in the 1500 block of Congress Place SE.

In announcing the sentence, U.S. Attorney Machen, Assistant Director McJunkin and Chief Lanier praised the collective and cooperative efforts of the law enforcement agencies that worked together to investigate and prosecute this complex case, including the MPD, the FBI/MPD Safe Streets Task Force, and the United States Park Police.

In addition, they commended the outstanding work of the special agents from the FBI's Washington Field Office; MPD Detectives Anthony Brigidini, Kenneth Todd Williams, Constantinos "Gus" Giannakoulias, and Anthony Commodore; William Sepeck and Paul Edwards, of the U.S. Park Police; and Special Investigator Diane Eickman.

Also, they praised the staff at the U.S. Attorney's Office, including Paralegal Specialist James Mazzitelli; Victim-Witness Advocate Yvonne Bryant; Victim-Witness Specialists Katina Adams, LaVerne Forrest, and Debbie Cannon; Intelligence Specialists Frank Morgan, Larry Grasso, and Shannon Alexis, and Legal Assistants Dianne Brashears, Carolyn Carter-McKinley, Patricia Hall, and Nadi Ishman. They also thanked Assistant U.S. Attorneys Glenn S. Leon, Ann Petalas, and Gilberto Guerrero Jr., who prosecuted the case, and former Assistant U.S. Attorney M. Jeffrey Beatrice, who led the initial investigation. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Previously Convicted Cambridge Sex Offender Pleads Guilty to Possessing Child Pornography

Also Admits to Sexually Exploiting Two Minor Girls to Produce Child Pornography

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

17March2011 9:18pmEST

GCIS INTELLIGENCE UPDATE: BALTIMORE, MD—Shane Stoner, age 28, of Cambridge, Maryland, pleaded guilty today to possession of child pornography.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; Chief Kenneth W. Malik of the Cambridge Police Department; and Dorchester County State’s Attorney William H. Jones.

According to the plea agreement, during at least October and November 2009, Stoner engaged in sexually explicit conduct with a 15-year-old girl. On November 8, 2009, Stoner took nude photographs of the girl. Beginning no later than July 2009, and continuing through February 2010, Stoner engaged in sexually explicit conduct with another 15-year-old girl and on January 14, 2010, Stoner photographed his sexual abuse of the minor girl.

On February 17, 2010, members of the Cambridge Police Department searched Stoner’s residence in Cambridge, and recovered the photos of the two minor girls from a memory card found in the home.

As part of his plea agreement, Stoner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

On May 22, 2002, Stoner pleaded guilty in the Circuit Court for Dorchester County, Maryland to a fourth degree sex offense and was sentenced the same day to one year in prison, nine months of which were suspended.

Since Stoner has a prior conviction relating to sexual abuse of a minor, he faces a minimum mandatory sentence of 10 years in prison and a maximum of 20 years in prison, followed by up to lifetime of supervised release. U.S. District Judge William M. Nickerson, has scheduled sentencing for June 8, 2011 at 9:30 a.m.

Stoner is currently serving a sentence of 20 years in prison, with five years suspended, on related state charges, as well another four-and-a-half years for violation of probation on his previous conviction.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Details about Maryland’s program are available at www.justice.gov/usao/md/Safe-Childhood/index.html.

United States Attorney Rod J. Rosenstein commended the FBI, Cambridge Police Department, and the Dorchester County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Twenty-Eight Indicted in Large-Scale Cocaine Trafficking Ring Operating in Ohio

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

17March2011 9:13pmEST

GCIS INTELLIGENCE UPDATE: A federal grand jury returned a 50-count indictment against 28 people who are accused of participating in a large-scale cocaine trafficking ring operating in the Ashtabula, Ohio, area since 2008, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Robert L. Corso, Special Agent in Charge, U.S. Drug Enforcement Administration, Stephen D. Anthony, Special Agent in Charge, the Federal Bureau of Investigation, and William Johnson, Ashtabula County Sheriff, announced today.

Law enforcement personnel seized more than five kilograms of cocaine and more than $267,000 in U.S. currency during the year-long investigation. Six handguns belonging to co-conspirators were also confiscated.

From January 2008 to September 8, 2010, defendants Francisco Felix-Felix, Ricardo Apodaca, Jose Miguel Cardenas, and Carlos Felix arranged for multiple kilogram quantities of cocaine to be brought into Northeast Ohio, including to a house on Plymouth Road in Eastlake, Ohio, according to the indictment.

Those defendants, along with Oscar Batres Jr. and Exiquio Felix-Beltran, then delivered the cocaine to Shawn Decola, of Ashtabula, according to the indictment.

The co-conspirators often used vehicles with hidden compartments to transport the cocaine, and to transport sums of cash used to pay for the cocaine, according to the indictment.

The indictment further alleges that upon receipt of the cocaine, Decola resold it to various individuals, to include defendants Isaac Coleman, Marcus Dennis, Desmond Triplin, as well as Chris Dyer and William Saad Bradley, who in turn resold the cocaine to other co-conspirators in the Ashtabula area.

The co-conspirators from time to time also “cooked,” or converted, quantities of powder cocaine into cocaine base (crack) and then sold the crack cocaine to other co-conspirators and to crack users, according to the indictment.

“These defendants brought lots of cocaine into Northeast Ohio and then pushed it out onto the streets of Ashtabula,” Dettelbach said. “They now face significant sentences in the federal system for selling this poison in our community.”

Anthony said: “Today’s arrests demonstrate what can be accomplished with federal, state, county and local agencies combine their expertise and unique talents to rid our communities of dangerous drug dealers, who have such a detrimental impact on our communities.”

Added Geno Corley, Resident Agent in Charge for the DEA: “The drugs supplied by this organization have destroyed untold numbers of lives and families, as well as contributed to a significant amount of crimes against persons and property in the Ashtabula area.”

The individuals charged in the indictment are:

FRANCISCO FELIX-FELIX, aka “Big G,” aka “Jose Gonzalez,” 36, Mesa, Arizona
RICARDO APODACA, 35, Lexxon, California
JOSE MIGUEL CARDENAS, 22, Pico Rivera, California
CARLOS FELIX, aka “Carlos Domingues,” 23, Moreno Valley, California
OSCAR BATRES JR., 25, Phoenix, Arizona
EXIQUIO FELIX-BELTRAN, 49, Unknown
ISAAC COLEMAN, aka “Ike,” 31, Ashtabula, Ohio
MARCUS DENNIS, 41, Cleveland Heights, Ohio
DESMOND TRIPLIN, aka “Dezi,” 25, Ashtabula, Ohio
ERIC DUNCAN DERRICOATTE, 30, Ashtabula, Ohio
JAMES DYER, aka “Poo,” 24, Ashtabula, Ohio
CLARENCE FRANKLIN, aka “C.L.,” 38, Ashtabula, Ohio
JASON BOLES, aka “J. Boles,” 30, Unknown
LEROY DERRICOATTE, 33, Ashtabula, Ohio
JASHON HUNT, 31, Ashtabula, Ohio
JOHN EVANS, 32, Ashtabula, Ohio
JIMMIE RUTH III, 32, Ashtabula, Ohio
CHRISTOPHER MILLER, 35, Kingsville, Ohio
JESSE MCDOWELL JR., aka “Man,” 30, Ashtabula, Ohio
ANTONIO PARKER, aka “Tonio,” 22, Ashtabula, Ohio
DANIEL HAMILTON JR., 25, Ashtabula, Ohio
RICKY JACKSON, 57, Ashtabula, Ohio
TERRANCE JACKSON, 36, Ashtabula, Ohio
ARTHUR EZELL JR., aka “Man Man,” 19, Ashtabula, Ohio
MATT DONAHUE, 26, Ashtabula, Ohio
MARLON SPIKES, 38, Painesville, Ohio
NICHELLE SPIKES, 43, Painesville, Ohio
TAQUELLA HOSKIN, aka “Taje,” 36, Ashtabula, Ohio

Three other Ashtabula, Ohio, residents—Decola, age 28, Chris Dyer, aka “Chubba,” age 27, and William Saad Bradley, aka “Saadi,” age 29—are listed in the indictment as unindicted co-conspirators but have been previously charged in separate cases currently pending in U.S. District Court.

Decola, Chris Dyer, and Bradley have each been charged with conspiracy to distribute cocaine and cocaine base (“crack”) and with possessing with intent to distribute cocaine or cocaine base recovered from their respective places of residence on September 8, 2010.

Count 1 of the indictment charges 27 of the 28 defendants (excluding Nichelle Spikes) with conspiracy to distribute five or more kilograms of cocaine and 50 grams or more of cocaine base (crack).

Counts 2 and 3 of the indictment charge Matt Donahue, Marlon Spikes and Nichelle Spikes with knowingly and intentionally distributing or possessing with intent to distribute 164 grams or more of cocaine.

Count 4 of the indictment charges Francisco Felix-Felix with attempting to distribute approximately three kilograms of cocaine.

Counts 5 and 6 of the indictment charge James Dyer and Christopher Miller, respectively, with knowingly and intentionally possessing with intent to distribute approximately eight grams of cocaine base (crack) and 24 grams of cocaine.

Counts 7-50 of the indictment charge each defendant (with the exception of Ricardo Apodaca, Jose Miguel Cardenas, Oscar Batres Jr., Exiquio Felix-Beltran, and Isaac Coleman) with using a communications facility (a telephone) to facilitate a drug trafficking offense.

If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offenses, and the characteristics of the violation. In all cases the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

This case is being prosecuted by Assistant United States Attorneys Joseph P. Schmitz and Chelsea S. Rice following a one-year investigation code named “Operation Bula Ballers.” The investigation was conducted by agents of the U.S. Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Ohio High Intensity Drug Trafficking Area (HIDTA), the Lake County Narcotics Agency, and the Ohio State Highway Patrol.

An indictment is only is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Washington Man Arrested in Connection with Attempted Bombing of MLK Day Parade

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

10March2011 8:15amEST

GCIS INTELLIGENCE UPDATE:

SPOKANE, WA—Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kevin William Harpham, age 36, of Colville, Washington, has been arrested and charged in connection with the placement of the improvised explosive device alongside the planned Martin Luther King Jr. Day Unity March on January 17, 2011, in Spokane, Washington.

Kevin William Harpham was charged by complaint with the crimes of attempted use of a weapon of mass destruction and possession of an unregistered explosive device. A conviction for attempted use of a weapon of mass destruction carries a maximum penalty of life imprisonment, a $250,000 fine, and up to five years of court supervision after release. A conviction for possession of an unregistered explosive device carries a maximum penalty of 10 years’ imprisonment, a $250,000 fine, and up to thre years of court supervision after release. The investigation in this matter is continuing.

Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, “The tireless dedication and extraordinary efforts of the law enforcement officers involved in all aspects of this complicated investigation are commended.”

This investigation was conducted by the Inland Northwest Joint Terrorism Task Force (INJTTF)—comprised of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Air Marshals; the U.S. Border Patrol; the Department of Homeland Security - Homeland Security Investigations; the Spokane Police Department; the Spokane County Sheriff’s Office; and the Washington State Patrol—with assistance from Stevens County Sheriff’s Office and Washington State Employment Security Department.

A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Puerto Rico Senator and Businessman Convicted in Bribery Scheme

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

08March2011 10:19pmEST

GCIS INTELLIGENCE UPDATE: WASHINGTON—Puerto Rico Senator Hector Martinez Maldonado and Juan Bravo Fernandez, the former president of one of the largest private security companies in Puerto Rico, were convicted by a jury in San Juan, Puerto Rico, for their roles in a bribery scheme involving legislation beneficial to Bravo Fernandez’s business, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

Martinez Maldonado , 42, of Carolina, Puerto Rico, and Bravo Fernandez, 55, of San Juan, were each convicted late yesterday of federal program bribery. In addition, Bravo Fernandez was convicted of traveling in interstate commerce in aid of racketeering and conspiracy to commit to travel in interstate commerce in aid of racketeering. Martinez Maldonado was acquitted of conspiracy, traveling in interstate commerce in aid of racketeering, and obstruction of justice.

“By participating in a brazen scheme involving the exchange of cash and lavish trips for votes and official acts, these defendants subverted the democratic process,” said Assistant Attorney General Breuer. “Now they are seeing the consequences. As these convictions show, the Justice Department is committed to investigating and prosecuting public corruption wherever we find it.”

“Corruption relies on connections, forcing businessmen to forge questionable relationships with government officials, who facilitate their requests and grant them favors. This corrupt behavior, ingrained so deeply in the Puerto Rican government's fabric, allows money and power to become one. Law abiding citizens must denounce those dishonest government officials in order to weed out corruption from our society,” said Luis Fraticelli, Special Agent in Charge of the FBI-San Juan Field Office.

Martinez Maldonado was elected to the Puerto Rican Senate in 2004 and began serving a four-year term in January 2005. He was reelected in 2008. Bravo Fernandez was the president and chief executive officer of Ranger American, one of the largest private security firms in Puerto Rico.

The jury convicted the defendants for their role in a bribery scheme in which Bravo Fernandez conspired to secure the passage of two bills favorable to his business interests by bribing Martinez Maldonado and Jorge de Castro Font, a former Puerto Rican senator. De Castro Font served in the Puerto Rico House of Representatives from 1989 to 2004, and served in the Puerto Rico Senate from 2005 to 2008. Beginning in 2005, De Castro Font served as Chairman of the Committee on Rules and Calendars, exercising significant control over which bills, confirmations and other matters were brought to a vote on the floor of the Senate and when they were brought to a vote. Beginning in 2005, Martinez Maldonado served as Chairman of the Puerto Rico Public Safety Committee, exercising significant control over legislation related to the security and community safety.

According to court documents and evidence presented at trial, Martinez Maldonado and De Castro Font exercised significant control over the fate of the legislation benefitting Bravo Fernandez’s business interests. Specifically, Martinez Maldonado’s committee had jurisdiction over Bravo Fernandez’s two bills and was required to approve the legislation before De Castro Font could schedule them for a vote before the entire Senate. Evidence at trial showed that in order to secure passage of the two bills, Martinez Maldonado and De Castro Font made an agreement with Bravo Fernandez to take official acts supporting the legislation benefitting his business interests in exchange for things of value provided by Bravo Fernandez. Specifically, Bravo Fernandez provided numerous cash payments to De Castro Font.

According to court documents and evidence presented at trial, Bravo Fernandez also agreed to provide to Martinez Maldonado and De Castro Font a trip to Las Vegas to watch the May 14, 2005, championship boxing match between Winky Wright and Felix “Tito” Trinidad, a popular Puerto Rican boxer. As part of this agreement, Bravo Fernandez provided, among other things, first-class airfare, hotel rooms at the Mandalay Bay Resort and Casino, tickets to the Trinidad vs. Wright boxing match worth $1,000, hotel rooms in Miami for the return trip, as well as meals and drinks. Evidence at trial showed that on March 2, 2005, the day that Bravo Fernandez paid for the boxing tickets, Martinez Maldonado submitted one of the bills for consideration by the Puerto Rico Senate. Also, on April 21, 2005, Bravo Fernandez used his personal credit card to reserve a hotel room at the Mandalay Bay Resort and Casino. The deposit for this hotel room was credited to Martinez Maldonado’s hotel room. According to court documents, the reservation was made the day after Martinez Maldonado presided over a Public Safety Committee hearing for one of the two bills at which Bravo Fernandez was the only representative from the private security industry to testify. Martinez Maldonado authorized a committee report in support of Bravo Fernandez’ bill immediately after the hearing. According to evidence at trial, on May 17, 2005, the day after the three men returned from their trip to Las Vegas, Martinez Maldonado and De Castro Font both cast their vote in support of one of Bravo Fernandez’ bills in front of the entire Puerto Rico Senate. On May 18, 2005, the other bill was approved by the Puerto Rico Public Safety Committee, Chaired by Martinez Maldonado. That bill was passed by the Puerto Rico Senate on May 23, 2005.

De Castro Font pleaded guilty on Jan. 21, 2009, to 20 counts of honest services wire fraud and one count of conspiracy to commit extortion. He is currently awaiting sentencing.

Bravo Fernandez faces a maximum penalty of five years in prison and a $250,000 fine for each count of conspiracy and travel in aid of racketeering and 10 years in prison and a $250,000 fine for the bribery count. Martinez Maldonado faces a maximum penalty of 10 years in prison and a $250,000 fine for the bribery count. Sentencing has been scheduled for June 7, 2011.

This case is being prosecuted by Trial Attorneys Peter Koski and Deborah Sue Mayer of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Colorado Woman Pleads Guilty to Conspiracy to Provide Material Support to Terrorists

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

08March2011 9:59pmEST

GCIS INTELLIGENCE UPDATE:

PHILADELPHIA—Jamie Paulin Ramirez, 32, a U.S. citizen and former resident of Colorado, pleaded guilty today to one count of conspiracy to provide material support to terrorists. Ramirez faces a potential maximum penalty of 15 years in prison and a $250,000 fine at sentencing.

The guilty plea, which was entered today before U.S. District Court Judge Petrese B. Tucker was announced by Todd Hinnen, acting Assistant Attorney General for National Security, U.S. Attorney Zane David Memeger, and FBI Special Agent in Charge George C. Venizelos.

Ramirez was first charged in a superseding indictment, filed in April 2010, along with co-defendant Colleen R. LaRose, a U.S. citizen and former resident of Montgomery County, Pennsylvania. On Feb. 1, 2011, LaRose, aka “JihadJane,” aka “Fatima LaRose,” pleaded guilty to conspiracy to provide material support to terrorists, conspiracy to kill in a foreign country, making false statements, and attempted identity theft.

According to documents filed with the court, Ramirez, LaRose and others conspired to obtain military-style training in South Asia and then traveled to and around Europe to participate in, and in support of, violent jihad. In a series of electronic communications dated July 19, 2009, one co-conspirator (identified as CC#2 in the superseding indictment) directed another to recruit online “some brothers that can travel freely...with eu passports...[A]nd I also need some sisters too.” The co-conspirator further explained that “sister fatima will be in charge of other sister care...[W]e have already organized everything for her....[W]e are will[ing] to die in order to protect her no matter what the risk is.”

Ramirez exchanged e-mail messages with LaRose during the summer of 2009, in which LaRose invited Ramirez to join her in Europe to attend a training camp. For example, on Aug. 1, 2009, LaRose sent electronic communications to Ramirez stating that “soon i will be moving to Europe to be with other brothers & sisters...when i get to europe, i will send for you to come be with me there...[T]his place will be like a training camp as well as a home.” In electronic communications dated on or about August 7, 2009, CC #2 recruited another individual to find brothers and sisters to go to a “camp for [military-style] training...and th[e]n come back to europe to do the job...[T]he job is to [k]nock down some individual[s] that are harming islam.” CC#2 goes on to explain that he is structuring “an ORGANIZATION” divided into a “plan[n]ing team...research team...action team...recruitment team...finance team.”

Ramirez accepted LaRose's invitation to travel to Europe and asked to bring along her minor male child. On Sept, 12, 2009, Ramirez traveled to Ireland with her child with the intent to live and train with jihadists. The day after she arrived in Ireland, Ramirez married CC#2, whom she had never before met in person, in an Islamic ceremony, knowing and intending that her presence in Europe, her marriage to CC#2, and her future actions would provide support for the conspiracy.

“Today's guilty plea by Jamie Ramirez, coupled with that of Colleen LaRose last month, underscores the evolving nature of the terrorist threat we face,” said acting Assistant Attorney General Hinnen. “Many counterterrorism and law enforcement officials worked tirelessly to deal with the threat these defendants posed; I applaud their efforts and those of all of the national security professionals and prosecutors that work to keep the country safe.”

“Keeping our community and the country safe are a top priority of this office,” said U.S. Attorney Memeger. “This case, and the guilty pleas, are a culmination of the vigilant efforts by the FBI agents in this district, the prosecutors in my office, and law enforcement officers around the globe. It underscores the importance and success of international collaboration when fighting terrorism.”

“The guilty plea in this case today is yet one more success our efforts against the continuing and evolving threats that we face,” said FBI Special Agent in Charge George C. Venizelos. “Our Joint Terrorism Task Forces work very closely with all of our partners in the law enforcement and intelligence communities to ensure that we remain vigilant, alert and creative in our approaches to identifying and preventing acts of terrorism.”

This case was investigated by the FBI Field Division in New York, the FBI's Joint Terrorism Task Force in Philadelphia, the FBI Field Division in Denver, and the FBI Field Office in Washington, D.C. Authorities in Ireland also provided assistance in this matter.

The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, and Matthew F. Blue, a Trial Attorney from the Counterterrorism Section in the Justice Department's National Security Division. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.