Federal Criminal Defense Lawyers

Wednesday, March 28, 2012

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S.E.C. Told to Share Notes in Insider Trading Case

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:51 AM March 28, 2012

The New York Times on March 27, 2012 released the following: BY PETER LATTMAN A federal judge has ordered Securities and Exchange Commission lawyers to turn over their notes to federal prosecutors handling the criminal case against Rajat K. Gupta, a former director of Goldman Sachs. The ruling was part of a flurry of pretrial orders from Judge Jed S. Rakoff, who is presiding over the case. Mr. Gupta, who is charged with leaking Goldmans boardroom secrets to his friend, the convicted hedge fund manager Raj Rajaratnam, is scheduled to go on trial May 21. Among the more significant orders, Judge Rakoff said federal prosecutors must review the S.E.C.s notes about 44 interviews of witnesses during its investigation of Mr. Gupta and disclose any exculpatory evidence to the defense. Federal prosecutors in the United States attorneys office in Manhattan, who jointly conducted the 44 interviews with the S.E.C., argued that they had no obligation to review the S.E.C.s notes because the two investigations were separate. Judge Rakoff disagreed with the governments position. That separate government agencies having overlapping jurisdiction will cooperate in the factual investigation of the same alleged misconduct makes perfect sense; but that they can then disclaim such cooperation to avoid their respective discovery obligations makes no sense at all, Judge Rakoff wrote. The S.E.C. and the Justice Department

have long run parallel investigations, but the line between them can often become blurred. Judge Rakoff noted that there was a constitutional duty for prosecutors to disclose any exculpatory evidence called Brady material to the defense, regardless of whether the notes came from the S.E.C. To hold that these memoranda were not created as part of a joint factual investigation would make a mockery of the joint investigation standard as applied to the defendants constitutional right to receive all information the government has available to it that tends to show his innocence, Judge Rakoff wrote. In other rulings, Judge Rakoff ordered that Lloyd C. Blankfein, the chief executive of Goldman Sachs, must sit for an additional two hours of depositions to be taken by Mr. Guptas lawyers. Mr. Blankfein was deposed for seven hours last month, and is expected to be a witness at Mr. Guptas trial. The dispute over Mr. Blankfeins testimony arose when, during the February deposition, Mr. Guptas lawyer asked Mr. Blankfein whom he had met with to prepare for the deposition. He responded that he had met with both federal prosecutors, S.E.C. lawyers and an F.B.I. agent. When Mr. Guptas lawyer asked Mr. Blankfein what the government asked at these meetings, the S.E.C. objected, citing work product protections. Judge Rakoff ruled that Mr. Blankfein must answer these questions. By asking Blankfein what topics he recalls were discussed, what questions he was asked and what documents he was shown, defendants seek to discover how the preparation sessions affected Blankfeins testimony, and do not

demonstrate a mere naked attempt to obtain the S.E.C.s and the U.S.A.O.s legal opinions and strategy, the judge wrote. Judge Rakoff also issued several rulings that went against Mr. Gupta. He denied his lawyers motion to suppress the use of wiretaps at trial and to dismiss three of the counts in the governments complaint that were claimed to be either vague or duplicative. On the wiretap issue, Judge Rakoff said: The simple truth is that, in both this and numerous other cases, insider trading cannot often be detected, let alone successfully prosecuted, without the aid of wiretaps. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Justice Department Resolves Allegations of Discrimination with Onward Healthcare in Connecticut

(USDOJ: Justice News)
Submitted at 2:25 PM March 28, 2012

Four Additional Defendants Charged for Assaulting Practitioners of the Amish Religion in Cleveland
(USDOJ: Justice News)
Submitted at 5:01 PM March 28, 2012

The Justice Department reached a settlement agreement today with Onward Healthcare, a healthcare staffing company

based in Wilton, Conn., resolving allegations that the company posted discriminatory job advertisements on its home page and third party websites that limited its jobs to U.S. citizens.

The Justice Department announced today that a federal grand jury in Cleveland returned a 10-count superseding indictment in United States v. Mullet, et al.

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Thirty-Two Individuals Indicted in Puerto Rico for Allegedly Violating the Racketeering Influenced and Corrupt Organizations Act
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 3:40 PM March 28, 2012

The Federal Bureau of Investigation (FBI) on March 28, 2012 released the following: SAN JUANA federal grand jury has indicted 32 individuals as a result of an investigation by the FBI and the Puerto Rico Police Department (PRPD), with the collaboration of the San Juan Puerto Rico, Municipal Police; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Drug Enforcement Administration (DEA); and the U.S. Marshals Service, U.S. Attorney Rosa Emilia Rodrguez-Vlez announced today. The 36-count indictment, unsealed today, was brought on March 20, 2012. The defendants are charged with, among other things, violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), Violent Crimes in Aid of Racketeering Activity (VICAR), use of firearms in furtherance of crimes of violence, conspiracy to possess with intent to distribute controlled substances, and possession of firearms by prohibited persons. The defendants were members and associates of a criminal organization that engaged in narcotics distribution and committed acts of violence, including murder, in San Juan. Since 2004, the defendants conducted the affairs of the enterprise through a pattern of racketeering activity involving narcotics trafficking, murder, and attempted murder. The indictment alleges that in or around 2004, the leaders of nearly all the drug gangs operating in the San Juan area formed an alliance. This alliance would help them resolve conflicts between the previously rival drug gangs in a way that would not bring about the attention of local and federal authorities, thus ensuring increased profits from drug sales for all and reducing the risk of federal charges. The leaders agreed that if conflicts arose between members of the alliance, the leaders from the different housing projects would discuss the issues with each other in order to resolve the same without violence. The leaders named the alliance La ONU, which stands for La Organizacin de Narcotraficantes Unidos (United Drug Traffickers Organization). It is further alleged that the alliance initially worked but weakened over time. Several housing project gangs became

disgruntled with La ONU and sought to break away from the organization. After several conflicts, La ONU broke into two separate rival factions, La ONU and La Rompe ONU. The housing project gangs were essentially split evenly between those belonging to La ONU and La Rompe. From the time of the split, the goal of La ONU was to maintain control through the use of force over the drug points in their members housing projects and to kill La Rompe members and leaders in order to expand. Members of La ONU who committed murders and other violent acts were given benefits, including weapons, money, and the ability to advance within the criminal enterprise. Though unwritten, the general rules followed by members of La ONU included, but were not limited to: no associating with La Rompe members; kill La Rompe members on sight; no killing of other members of La ONU without leadership authorization; no overtaking housing projects/drug points owned by other members of La ONU; and no cooperating with law enforcement. Any violation of these rules was punishable by death of the violator and/or his/her family members. The indictment details eight murders, three attempted murders, and one shooting directed toward Puerto Rico police officers, all committed by members of La ONU. These acts are as follows: On or about November 12, 2007, in Puerto Rico, defendants Jean Carlos Ramos-Pieiro, aka Jincho, Jeanji, Jan, or Casper; Ramn LanzaVzquez, aka Ramoncito; and Antonio Prez-Medina, aka Choco, shot and killed Orlando Medina-Serrano. On or about February 19, 2009, in Puerto Rico, defendants Jean Carlos Ramos-Pieiro; Luis D. RiveraCarrasquillo, aka Danny KX or Danny Vorki; and Jos Abel Ramos-Cruz, aka Paleta or Tito Paleta, killed ngel Gonzlez-Villanueva, aka Chaple. On or about January 5, 2010, in Puerto Rico, defendants Jean Carlos RamosPieiro; Luis D. Rivera-Carrasquillo; Wesley Figueroa-Cancel, aka Hueso; Jos Abel Ramos-Cruz; Luis Joel RosarioSantiago, aka Triple-H or Luis Jo; Carlos H. Oneill-Santiago, aka Ken-Y; Christian Figueroa-Viera, aka Coqueto; and others killed Luis Antonio De-JessPrez. On or about April 2, 2010, in Puerto Rico, defendants Jean Carlos Ramos-

Pieiro, Wesley Figueroa-Cancel, and others shot at and fled from Puerto Rico police officers. On or about April 8, 2010, in Puerto Rico, defendants Jean Carlos RamosPieiro; Jorge E. Asencio-Viera, aka Macar; Victor Santana-Gonzlez, aka Run Run or Pequeo; Pedro Juan Ramrez-Medina, aka Peter John or Johnson; Carlos Melndez-Serrano; and others shot and killed Victor Vega-Ortega, aka Victor El Nazi. On or about May 4, 2010, in Puerto Rico, defendant Edwin Bernard AstacioEspino, aka Bernard, shot into a patrolling police helicopter and killed Jess Quiones-Santiago and attempted to kill Jos Rivera-Quinoes, Eduardo Alvelo-Melndez and Shakira VzquezNieves. On or about July 7, 2010, in Puerto Rico, defendants Jean Carlos RamosPieiro; Edwin Bernard Astacio-Espino; Wesley Figueroa-Cancel; Pedro Juan Ramrez-Medina, aka Peter John or Johnson; Luis Joel Rosario-Santiago; Carlos H. ONeill-Santiago; ngel L. Garca-Velsquez, aka Wiwo; and Mike Graciany-Febu, aka Mikey; and others shot and killed Puerto Rico Police Officer Blanca De Los Santos-Barbosa and Manuel Medina-Rivera. On or about August 8, 2010, in Puerto Rico, defendants Jean Carlos RamosPieiro; Edwin Bernard Astacio-Espino; Luis D. Rivera-Carrasquillo; Victor Santana-Gonzlez; Ismael E. CruzRamos, aka Chapu; Pedro L. RamirezRivera, aka Peter Pai; Jos LaureanoSalgado, aka Geo; Emanuel Rodrguez Isaac, aka Manuelito; and others killed Christian Toledo-Snchez, aka Pekeke. During the course of the murder, Luis Gallardo-Rivera, aka El Tuerto, was shot and killed by the rival drug gang. The remainder of the defendants who are part of the organization and participated in its criminal acts include: FNU LNU, aka Rosco or Diablo; Luis Cordero-Cruz, aka Chapi; Roberto L. Aponte-Cordero, aka Pichu; Andrs Guerra-Santana, aka El Negro or Pingy; Teddy LenAyala; ngel D. Ramos-Cruz, aka Api; Luis Llanos-Skerett, aka Jomo; Miguel Feliciano-Boria, aka Chupito; Carlos Andino Matienzo, aka Hoffman; Jos Ismael Costoso-Ramos, aka Magnolia; FNU LNU, aka Luigi; and FNU LNU, THIRTY-TWO page 7

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FBI Top Cyber Cop: U.S. Outgunned in Hacker War

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:59 AM March 28, 2012

The Wall Street Journal on March 27, 2012 released the following: U.S. Outgunned in Hacker War By DEVLIN BARRETT WASHINGTONThe Federal Bureau of Investigations top cyber cop offered a grim appraisal of the nations efforts to keep computer hackers from plundering corporate data networks: Were not winning, he said. Shawn Henry, who is preparing to leave the FBI after more than two decades with the bureau, said in an interview that the current public and private approach to fending off hackers is unsustainable. Computer criminals are simply too talented and defensive measures too weak to stop them, he said. His comments werent directed at specific legislation but came as Congress considers two competing measures designed to buttress the networks for critical U.S. infrastructure, such as electrical-power plants and nuclear reactors. Though few cybersecurity experts disagree on the need for security improvements, business advocates have argued that the new regulations called for in one of the bills arent likely to better protect computer networks. Mr. Henry, who is leaving government to take a cybersecurity job with an undisclosed firm in Washington, said companies need to make major changes in the way they use computer networks to avoid further damage to national security and the economy. Too many companies, from major multinationals to small startups, fail to recognize the financial and legal risks they are takingor the costs they may have already suffered unknowinglyby operating vulnerable networks, he said. I dont see how we ever come out of this without changes in technology or changes in behavior, because with the status quo, its an unsustainable model. Unsustainable in that you never get ahead, never become secure, never have a reasonable expectation of privacy or security, Mr. Henry said. James A. Lewis, a senior fellow on cybersecurity at the Center for Strategic and International Studies, said that as gloomy as Mr. Henrys assessment may sound, I am actually a little bit gloomier. I think weve lost the opening battle [with hackers]. Mr. Lewis said he didnt believe there was a single secure, unclassified computer network in the U.S.

Theres a kind of willful desire not to admit how bad things are, both in government and certainly in the private sector, so I could see how [Mr. Henry] would be frustrated, he added. High-profile hacking victims have included Sony Corp., SNE +2.05% which said last year that hackers had accessed personal information on 24.6 million customers on one of its online game services as part of a broader attack on the company that compromised data on more than 100 million accounts. Nasdaq OMX Group Inc., NDAQ -0.04% which operates the Nasdaq Stock Market, also acknowledged last year that hackers had breached a part of its network called Directors Desk, a service for company boards to communicate and share documents. HBGary Federal, a cybersecurity firm, was infiltrated by the hacking collective called Anonymous, which stole tens of thousands of internal emails from the company. Mr. Henry has played a key role in expanding the FBIs cybersecurity capabilities. In 2002, when the FBI reorganized to put more of its resources toward protecting computer networks, it handled nearly 1,500 hacking cases. Eight years later, that caseload had grown to more than 2,500. Mr. Henry said FBI agents are increasingly coming across data stolen from companies whose executives had no idea their systems had been accessed. We have found their data in the middle of other investigations, he said. They are shocked and, in many cases, theyve been breached for many months, in some cases years, which means that an adversary had full visibility into everything occurring on that network, potentially. Mr. Henry said that while many company executives recognize the severity of the problem, many others do not, and that has frustrated him. But even when companies build up their defenses, their systems are still penetrated, he said. Weve been playing defense for a long time. You can only build a fence so high, and what weve found is that the offense outpaces the defense, and the offense is better than the defense, he said. Testimony Monday before a government commission assessing Chinese computer capabilities underscored the dangers. Richard Bejtlich, chief security officer at Mandiant, a computer-security company, said that in cases handled by his firm where intrusions were traced back to Chinese hackers, 94% of the targeted

companies didnt realize they had been breached until someone else told them. The median number of days between the start of an intrusion and its detection was 416, or more than a year, he added. In one such incident in 2010, a group of Chinese hackers breached the computer defenses of the U.S. Chamber of Commerce, a major business lobbying group, and gained access to everything stored on its systems, including information about its three million members, according to several people familiar with the matter. In the congressional debate over cybersecurity legislation, the Chamber of Commerce has argued for a voluntary, non-regulatory approach to cybersecurity that would encourage more cooperation and information-sharing between government and business. Matthew Eggers, a senior director at the Chamber, said the group is urging policy makers to change the status quo by rallying our efforts around a targeted and effective information-sharing bill that would get the support of multiple stakeholders and come equipped with ample protections for the business community. The FBIs Mr. Henry said there are some things companies need to change to create more secure computer networks. He said their most valuable data should be kept off the network altogether. He cited the recent case of a hack on an unidentified company in which he said 10 years worth of research and development, valued at more than $1 billion, was stolen by hackers. He added that companies need to do more than just react to intrusions. In many cases, the skills of the adversaries are so substantial that they just leap right over the fence, and you dont ever hear an alarm go off, he said. Companies need to be hunting inside the perimeter of their network, he added. Companies also need to get their entire leadership, from the chief executive to the general counsel to the chief financial officer, involved in developing a cybersecurity strategy, Mr. Henry said. If leadership doesnt say, This is important, lets sit down and come up with a plan right now in our organization; lets have a strategy, then its never going to happen, and that is a frustrating thing for me, he said. Douglas McNabb McNabb Associates, FBI page 6

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FBI Taught Agents They Could Bend or Suspend the Law

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:33 AM March 28, 2012

Wired on March 28, 2012 released the following: By Spencer Ackerman The FBI taught its agents that they could sometimes bend or suspend the law in their hunt for terrorists and criminals. Other FBI instructional material, discovered during a months-long review of FBI counterterrorism training, warned agents against shaking hands with Asians and said Arabs were prone to Jekyll & Hyde temper tantrums. These are just some of the disturbing results of the FBIs six-month review into how the Bureau trained its counterterrorism agents. That review, now complete, did not result in a single disciplinary action for any instructor. Nor did it mandate the retraining of any FBI agent exposed to what the Bureau concedes was inappropriate material. Nor did it look at any intelligence reports that might have been influenced by the training. All that has a powerful senator saying that the review represents a failure to adequately address the problem. This is not an effective way to protect the United States, Sen. Richard Durbin, a member of the Senate Judiciary Committee overseeing the FBI, tells Danger Room about the inappropriate FBI counterterrorism training. Its stunning that these things could be said to members of our FBI in training. It will not make them more effective in their work and wont make America safer. At the least, Durbin adds, those responsible for some of the worst parts of this should be reassigned. I want FBI agents who were exposed to some of these comments to at least have a chance to be spoken to and given valid, positive information that can help them. One FBI PowerPoint disclosed in a letter Durbin sent to FBI Director Robert Mueller on Tuesday and shared with Danger Room stated: Under certain circumstances, the FBI has the ability to bend or suspend the law to impinge on the freedom of others. An incredulous Durbin told Danger Room, Time and time again when that is done, it has not made us safer. Like other excerpts from FBI documents Danger Room reviewed for this story, it was not dated and did not include additional context explaining what those circumstances might be. FBI spokesman Christopher Allen did not dispute the documents authenticity. He said he would not share the full

documents with Danger Room, and was unable to provide additional information about their context, including any indication of how many FBI agents were exposed to them. Of the approximately 160,000 pages of training material reviewed, less than one percent contained factually inaccurate or imprecise information or used stereotypes, Allen told Danger Room. But mistakes were made, and we are correcting those mistakes. Through this review process, we recognized that we lacked a centralized process to ensure all training materials were reviewed and validated. We are addressing that gap so this does not happen again. The FBIs counterterrorism training review was prompted by a Danger Room series revealing the Bureau taught agents that mainstream Muslims were violent; that Islam made its followers want to commit genocide; and that an FBI intelligence analyst compared Islam to the Death Star from Star Wars. The review led the bureau to remove hundreds of pages of documents from its training course. On Friday, the FBI announced the results of its internal review. After six months of internal inquiry, it released a statement instructing that training would conform to constitutional principles and emphasize the protection of civil rights and civil liberties. Written materials must be reviewed carefully by supervisory-level personnel possessing an appropriate level of understanding of relevant topics. No one who prepared any of the factually inaccurate or imprecise instructional material faced disciplinary action. All FBI employees who prepared inaccurate, imprecise, or stereotyped materials were interviewed, Allen said. It was made clear to them what was wrong with the materials and why they were not acceptable for FBI training. Thats left Sen. Durbin dissatisfied. On Tuesday, Durbin wrote to FBI Director Mueller objecting to the FBIs plans not to disclose the results of the inquiry; not to discipline those responsible for the offending documents; to exclude FBI intelligence analyses of Islam and American Muslims from the inquirys purview; and not to retrain agents who were exposed to the shoddy instructional material. If the FBI does not identify agents who received inaccurate information and take steps to retrain them, there is a real risk that agents will be operating on false

assumptions about Arab Americans and American Muslims, Durbin wrote to Mueller. This could harm counterterrorism efforts by leading FBI agents to target individuals based on their religion or ethnicity, rather than suspicion of wrongdoing. A sample of that possibly harmful training comes from a document on Establishing Relationships, which instructed: Never attempt to shake hands with an Asian. Never stare at an Asian. Never try to speak to an Arab female prior to approaching the Arab male first. Another document, titled Control and Temper, contrasted the Western Mind with that of the Arab World. The Western mind possessed an even keel and outbursts of emotion were exceptional. In the Arab World, by contrast, Outburst and Loss of Control [is] Expected. A bullet point below asked, Whats wrong with frequent Jekyll & Hyde temper tantrums? Many U.S. Muslims have been under government surveillance since 9/11, even without suspicion of a crime. The FBI has created geo-maps of where Muslims around the U.S. congregate and do business, untethered to specific criminal investigations. The New York Police Department has performed similar surveillance on Muslim communities in New York City, as an extensive Associated Press inquiry has revealed. Durbin said he wants to give Mueller, with whom he has a positive working relationship, a chance to respond to his letter before taking any further steps with the Judiciary Committee to compel additional FBI action. But he expressed surprise that the FBI could have taught its agents that bending or suspending the law was sometimes acceptable. I cannot imagine that was actually said, Durbin said, adding that the FBI provided him no context as to what circumstances might justify acting outside the law. It creates a license for activity that could on its face be illegal, and certainly inconsistent with our values. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment FBI page 6

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Polish Ex-Official Charged With Aiding C.I.A.

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:45 AM March 28, 2012

The New York Times on March 27, 2012 released the following: By JOANNA BERENDT and NICHOLAS KULISH WARSAW The former head of Polands intelligence service has been charged with aiding the Central Intelligence Agency in setting up a secret prison to detain suspected members of Al Qaeda, a leading newspaper here reported on Tuesday, the first high-profile case in which a former senior official of any government has been prosecuted in connection with the agencys program. The daily newspaper Gazeta Wyborcza reported that the former intelligence chief, Zbigniew Siemiatkowski, told the paper that he faced charges of violating international law by unlawfully depriving prisoners of their liberty, in connection with the secret C.I.A. prison where Qaeda suspects were subjected to brutal interrogation methods. When President Obama took office in 2009, he said he wanted to look forward, as opposed to looking backward and rejected calls for a broad investigation of C.I.A. interrogations and other Bush administration counterterrorism programs. In sharp contrast, the Poles see the case as a crucial test for rule of law and the investigation by prosecutors here has reached the highest levels of Polish politics. One of Polands prime ministers during the period when terrorism suspects were alleged to have been subjected to torture in Poland, Leszek Miller, could be charged before Polands State Tribunal, the newspaper said. We try to treat our Constitution seriously and try not to forget the fact that there was a manifest violation of the Polish Constitution within the countrys borders, said Adam Bodnar, vice president of the Helsinki Foundation for Human Rights, based in Warsaw. The effect, Mr. Bodnar said, is not simply a matter of looking back, as Mr. Obama said, but also of warning future leaders and officials that they can not operate with impunity. This case is a huge threat to any Polish official that he will know in the future that such things cannot happen, Mr. Bodnar said. C.I.A. officers have been distressed by the public controversies that have broken out over the interrogation program in Poland and other countries, where foreign
(USDOJ: Justice News)
Submitted at 9:16 AM March 28, 2012

officials were assured that their assistance would always remain secret. But human rights advocates have applauded the inquiries overseas into what they believe was torture and illegal detention. While successive American governments have chosen to avoid accusations of abuses, in Poland, where memories of the Communist era and its repressions remain sharp, prosecutors have moved aggressively to tackle the issue. Although pro-American sentiments run high in Poland, there is also great unease after decades of Soviet domination that the country is giving too much influence to a powerful ally. Gazeta Wyborcza reported that Mr. Siemiatkowski had been charged in January but the matter had been kept secret until now. Prosecutors refused to confirm the reports, which cited an anonymous source in the prosecutors office as well as Mr. Siemiatkowski himself. The investigation will remain confidential until further notice, said Piotr Kosmaty, a spokesman for the prosecutors office in Krakow, which has been handling the inquiry. A C.I.A. spokesman declined to comment. The C.I.A. has never formally revealed the location of the overseas black site prisons, but intelligence officials, aviation records and news reports have placed them in Afghanistan, Thailand, Romania and Jordan, as well as Poland and other countries. Out of fewer than 100 prisoners held in the facilities, roughly 30 were subjected to what the C.I.A. called enhanced interrogation techniques, according to agency officials. In Poland, detainees were held in a makeshift prison at a secret base near Szymany Airport, about 100 miles north of Warsaw. All three of the C.I.A. prisoners who were waterboarded are believed to have been held in Poland, including Khalid Shaikh Mohammed, the architect of the Sept. 11 attacks; Abd alRahim al-Nashiri, who is charged in the 2000 bombing of the American destroyer Cole; and Abu Zubaydah, who ran a terrorist camp and facilitated militants travel. But all three of the men spent time at other black sites as well, and it is not certain which interrogation methods were used where. Lawyers for Abu Zubaydah and Mr. Nashiri in 2010 filed a formal request with Polish authorities asking them to take criminal action in connection with the C.I.A. program. The Department of Justices Antitrust Division today issued the 2012 edition of

Joseph Margulies, a lawyer for Abu Zubaydah, said that he was pleased by the news of charges, which he said were the first to be brought anywhere as a result of the black site program. Attorney General Eric H. Holder Jr. did order a limited investigation of the interrogation program. Mr. Holder announced in July that no charges would be filed in connection with interrogations at the black sites but that the deaths of two prisoners in American custody, one in Iraq and one in Afghanistan, remained under investigation. Polish officials have long denied charges by human rights groups that the country hosted one of the black sites employed by the C.I.A. in the campaign against terrorism. Mr. Miller, who was prime minister from 2001 to 2004 and is the leader of the Democratic Left Alliance, a left-wing party in Polands Parliament, continues to deny that Poland was ever the site of secret detention facilities. I refused to answer any questions from the prosecution and I shall continue to do so at every other stage of the proceedings, including in court, Mr. Siemiatkowski told the newspaper. Mr. Bodnar said: I remember the lessons of constitutionality given by the Americans in the early 90s, always saying to us, you have to create a new constitution and every action by state authorities must have limits. Poland has just learned this lesson well. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Antitrust Division Issues 2012 Edition of Its Annual Newsletter

its annual newsletter on its website.

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Militia members acquitted of plotting to overthrow government

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 11:32 AM March 28, 2012

Los Angeles Times on March 28, 2012 released the following: A federal judges ruling disparages the government case against seven members of the Hutaree militia in Michigan. Two of the defendants still face lesser charges. By Times Wire Services DETROIT In a sharp rebuke, a federal judge Tuesday acquitted seven members of a Michigan militia of plotting to overthrow the U.S. government with weapons of mass destruction crimes that could have landed them in prison for life. The ruling is an embarrassment for the government, which secretly planted a paid informant and an FBI agent inside the Hutaree militia four years ago and contended that members were armed for war in rural southern Michigan. Nine members were arrested in 2010. One previously pleaded guilty, and one was found incompetent to stand trial. U.S. District Judge Victoria Roberts said federal prosecutors, who rested their case last week, failed in five weeks of trial to prove that the Hutaree had a specific plan to kill a police officer and attack law enforcement personnel who showed up for the funeral. Although testimony showed that Hutaree leader David Stone Sr. may have wanted to engage in a war with the federal government it is totally devoid of any agreement to do so between Stone and the other defendants, Roberts wrote in a 28-

page decision. This plan is utterly short on specifics, the judge said, adding that it is a stretch to infer that other members of the Hutaree knew of this plan, and agreed to further it. Defense lawyers say highly offensive remarks about police and the government were wrongly turned into a high-profile criminal case that drew public praise from U.S. Atty. Gen. Eric H. Holder Jr., who called the Hutaree a dangerous organization. Roberts decision leaves federal prosecutors with what legal experts described as a run of the mill illegal firearms case against Stone, 47, and his son Joshua Stone, 24. They still face charges of possession of a machine gun and an unregistered firearm, which carry a maximum penalty of 10 years in prison. The judge acquitted the five other defendants, including another son, David Stone Jr. All defendants were acquitted of the most serious charges: seditious conspiracy, which carried a maximum penalty of 20 years in prison, and conspiring to use weapons of mass destruction, which carries a maximum penalty of life in prison. The judge also acquitted them of five lesser counts. Attorney William Swor, who is representing Stone Sr. and visited him in the Wayne County Jail, said his client was grateful. He was quiet. He thanked God. He thanked the defense attorneys, Swor told the Detroit Free Press. And he shed a

tear. Legal experts said prosecutors cant appeal Roberts decision, which is equivalent to a jurys acquittal. She stepped in and took the role of a jury, said Wayne State University law professor Peter Henning, a former federal prosecutor. Its as if the jury acquitted them, and there can be no appeal of a jury acquittal. The U.S. attorneys office declined to comment, pending the outcome of the trial against the remaining two defendants. The trial resumes Thursday. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Federal Indictment To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

FBI
continued from page 3

P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving

Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Mississippi Pharmaceutical Firm and CEO to Pay $2.8 Million to Resolve Allegations of Illegal Marketing of Unapproved Drugs
(USDOJ: Justice News)
Submitted at 10:36 AM March 28, 2012

Mississippi-based Cypress Pharmaceutical Inc., its subsidiary Hawthorn Pharmaceuticals Inc. and its CEO, Max Draughn, have agreed to pay $2.8 million to resolve civil allegations under the False Claims Act, the Justice Department announced today.

FBI
continued from page 4

To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving

Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him

directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Federal Criminal Defense Lawyers

Federal Criminal

Bout Asks Judge to Throw Out Conviction

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 2:21 PM March 28, 2012

The New York Times on March 28, 2012 released the following: By BENJAMIN WEISER Updated 11:30 a.m. | Viktor Bout, a former Soviet Air Force officer who was convicted in November of conspiring to sell anti-aircraft missiles and other weapons to men he believed were terrorists intending to kill Americans, apparently believes that he does not deserve the mandatory minimum sentence of 25 years or any sentence, for that matter. Mr. Bouts lawyer has filed court papers asking a judge to refuse to sentence him next week in Federal District Court in Manhattan. The lawyer, Albert Y. Dayan, argued in a 14-page memorandum filed on Wednesday morning that Mr. Bouts prosecution by the United States government was the product of malice and private politics stemming from the then White House, a reference to the Bush administration; Mr. Bout was taken into custody in Thailand in March 2008, and later sent to the United States. His arrest followed a lengthy undercover sting operation run by the Drug

Enforcement Administration, which relied on cooperating informants who posed as members of the Colombian terrorist group, the Revolutionary Armed Forces of Colombia, or the FARC. Under the law, Mr. Bout faces at least 25 years behind bars when he is to be sentenced on April 5, but Mr. Dayan, calling his client innocent and saying that his prosecution was the product of outrageous, inexcusable government conduct, called such a sentence way too much under the facts and circumstances of this case. He asked that the judge, Shira A. Scheindlin, dismiss the indictment. A spokeswoman for the United States attorneys office had no comment. After a three-week trial, Mr. Bout was convicted of conspiring to kill American nationals, as well as officers and employees of the United States; to acquire and use anti-aircraft missiles (the count that carries the mandatory 25-year minimum term); and to provide material support to a foreign terrorist organization. He could face up to life in prison on some counts. In February, Judge Scheindlin did agree to a request by his lawyer that Mr. Bout be transferred from solitary confinement into the general prisoner population in the

Metropolitan Correctional Center, where he had been held for 15 months. The judge, who held a hearing into the matter, ruled that she could not shirk my duty under the Constitution and Supreme Court precedent to ensure that Bouts confinement is not arbitrary and excessively harsh. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Federal Indictment Federal Crimes Appeal To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

THIRTY-TWO
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aka Jos Armero, Jos Niple, or El Mecnico. Violent drug organizations whose members hold our community hostage through violence, intimidation, and fear should think twice about the consequences of their criminal activities, said U.S. Attorney Rodrguez-Vlez. The investigation which led to todays arrests is the first ever RICO Act prosecution of its nature in the District of Puerto Rico. We will use all the tools at our disposal to take dangerous criminals off the streets of Puerto Rico until we break their grip on our communities and bring them to justice. The FBI is committed to dismantling street gangs and criminal organizations, such as La ONU, who terrorize and put at risk the good people of our community with indiscriminate acts of violence. These combined and proactive law enforcement efforts are intended to aggressively target these threats and take back our streets, said Joseph Campbell, Special Agent in Charge of the FBI San Juan Field Office. The case is being prosecuted by Assistant U.S. Attorneys Brian Kidd and Sean

Torriente from the Organized Crime and Racketeering Section. This unit operates under the Narcotics Unit and will exclusively handle drive-by shootings and other significant RICO and organized crime prosecutions. This unit will be initially staffed with Assistant U.S. Attorneys Sean Torriente, Brian Kidd, and Justin Martin and Special Assistant U.S. Attorney Alberto Lpez Rocafort, from the Puerto Rico Department of Justice, and will be supervised by the Chief of the Narcotics Unit, Assistant U.S. Attorney Timothy Henwood. This unit is yet another component of the U.S. Attorneys Office for the District of Puerto Ricos initiative against violent crime and illegal firearms. Twenty of the defendants are charged with capital eligible offenses. The other 12 defendants face up to life in prison. The defendants are facing a forfeiture allegation of $10,000,000. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment Federal Crimes Detention Hearing To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Federal Criminal Justice

Federal Criminal Defense Lawyers

LulzSec Reborn claims attack on military dating site

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 2:59 PM March 28, 2012

The Washington Post on March 28, 2012 released the following: By Hayley Tsukayama Last summer, the Anonymous offshoot known as LulzSec announced it was retiring after 50 days of hacktivist attacks on targets ranging from Sony to the Central Intelligence Agency. Now, following the arrests of some of the groups most prominent members, a group of hackers has taken up the LulzSec banner and vowed to begin attacking sites under the name LulzSec Reborn. The groups first target was a dating site called militarysingles.com, which caters to members of the armed forces. The hacking group claims to have stolen 170,000 records from the Web site Sunday, subsequently posting users personal information online. A representative from the Web site did not respond to a request for comment. But the CEO of the parent company told the Los Angeles Times that the company has

put measures in place to secure its data. The executive, Robert Goebel, said the Web site had been down over the weekend and that he does not believe the site was actually hacked. Regardless of whether it was a true claim or false claim, were treating it as though its true just to be safe, Goebel told the paper. The hack may not be confirmed, but in a tweet on what appears to be the groups Twitter feed, the hackers posted a link to a defaced Web page under the militarysingles.com domain name that references the group by name. Several members of LulzSec and Anonymous who made a splash with attacks last year have been arrested in the United States and in Europe, as investigators move to crack down on the loosely organized hacking collective. Far from discouraging the hackers, the arrests have prompted a new surge of attacks with targets ranging from the Pope to a Spanish security firm that reportedly worked with the Federal Bureau of Investigation to arrest the leaders of

LulzSec. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

The End Of Africas Embezzlement Era?

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 3:21 PM March 28, 2012

The Wall Street Journal on March 27, 2012 released the following: By Samuel Rubenfeld The U.S. Justice Departments kleptocracy initiative could spell the end of African leaders stashing stolen state assets in American financial institutions, said an expert in the region. Herbert Igbanugo, the founding shareholder of Igbanugo Partners International Law Firm PLLC, said Tuesday during a panel discussion about Africa at the Dow Jones Global Compliance Symposium that the Justice Departments Kleptocracy Asset Recovery Initiative, which has a mandate to ferret out illicit assets belonging to high-level foreign officials and return them to victim countries, will have a great impact on the continent over the next couple of years as the U.S. pursues cases against African officials. I think the era of embezzlement in Africa

is coming to an end, said Igbanugo. People are getting tired and angrythe time of no consequences is coming to an end. A top Justice Department official said recently it will continue to bring cases under the initiative despite their inherent difficulty. I dont think its the right thing for corrupt leaders totake advantage of the U.S., said Lanny Breuer, an assistant attorney general who heads the departments Criminal Division. Calling the kleptocracy initiative the best thing to happen to Africa, Igbanugo recounted the stories of James Ibori, the former Nigerian state governor who recently pleaded guilty in the U.K. to money laundering, and Teodoro Nguema Obiang Mangue, the son of Equatorial Guinea President Teodoro Obiang Nguema Mbasogo who was sued by the U.S. in its first action under the initiative. Once government officials and presidents cant secrete state wealth and use it themselves, it will end the incentive to steal and launder the assets for their

personal benefit, Igbanugo said. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Shipbuilder and Ship Engine Manufacturer Agree to Pay Civil Penalty and Perform Environmental Project to Resolve Clean Air Act Violations
(USDOJ: Justice News)
Submitted at 12:59 PM March 28, 2012

Coltec Industries Inc. and National Steel

and Shipbuilding Company have agreed to pay a civil penalty of $280,000 and spend approximately $500,000 on an

environmental project to resolve alleged violations of the Clean Air Act and EPAs marine diesel engine air rules.

Federal Criminal Defense Lawyers

Federal Criminal Justice Antitrust

New Mexico State University Student Charged with Allegedly Making False Bomb Threat
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 3:43 PM March 28, 2012

The Federal Bureau of Investigation (FBI) on March 28, 2012 released the following: LAS CRUCESThis morning, Daud Anwar, 29, a resident of Albuquerque, New Mexico, who is a student at the New Mexico State University (NMSU), made his initial appearance in U.S. District Court in Las Cruces, New Mexico on an indictment charging him with making a false bomb threat. If convicted of the offense charged, Anwar faces up to 10 years of imprisonment and a $250,000 fine. Anwar is temporarily detained pending a detention hearing, which has yet to be scheduled. According to the indictment, on March 3, 2011, Anwar used a telephone and the Internet to maliciously convey false information to the effect that buildings and occupants of buildings on the NMSU campus would be damaged and destroyed by an explosive device. The indictment,

which was filed under seal on March 21, 2012, was unsealed yesterday by the U.S. District Court after Anwar was arrested without incident on the NMSU campus by the FBI and NMSU Police. Threats like the one alleged in the indictment are serious crimes and warrant a serious response, said U.S. Attorney Kenneth J. Gonzales. In a post-9/11 world, each and every bomb threat must be taken seriously. False bomb threats drain our already overburdened public safety agencies and prevent them from pursuing real threats to our security and other serious crimes. For this reason, we will diligently investigate and prosecuted these cases. The case was investigated by the FBI and the NMSU Police Department, with assistance from the Computer Security Team in the NMSU Information and Communications Technology Department, and is being prosecuted by the U.S. Attorneys Branch Office in Las Cruces.

Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment Federal Crimes Detention Hearing To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal. The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Former Grant Administrator and Legal Assistant of American Samoa Non-profit Legal Aid Corporation Sentenced for Stealing Nearly $160,000 in Federal Grant Funds
(USDOJ: Justice News)
Submitted at 10:50 AM March 28, 2012

Honolulu Firearms Business Owner Sentenced to 51 Months in Prison for Federal Tax Offenses
(USDOJ: Justice News)
Submitted at 9:55 AM March 28, 2012

Justice Department Seeks to Shut Down Texas Tax Return Preparer

(USDOJ: Justice News)
Submitted at 10:01 AM March 28, 2012

Julie Matau, 49, and her daughter, Andrea Matau, 28, each were sentenced yesterday in Oakland, Calif., for their participation in the theft of nearly $160,000 in federal grant funds from a now-defunct nonprofit American Samoa legal services corporation.

Arthur Lee Ong of Honolulu was sentenced Tuesday to 51 months in prison and ordered to pay $1 million in restitution to the Internal Revenue Service (IRS) by District Court Judge Leslie Kobayashi today, the Justice Department and IRS announced today.

The United States has sued tax preparer Joseph Rivas, seeking to bar him from preparing any federal tax returns for others, the Justice Department announced today.

U.S. v. Barry Heisner

(Antitrust Division: Criminal Case Filings)
Submitted at 12:00 PM March 28, 2012

Justice Department Sues National Tax Preparation Firm and Franchisees to Stop Alleged Pervasive Tax Fraud
(USDOJ: Justice News)
Submitted at 3:18 PM March 28, 2012

Residential Youth Treatment Facility for Medicaid Recipients in Marion, Virginia Agrees to Resolve False Claims Act Allegations
(USDOJ: Justice News)
Submitted at 11:51 AM March 28, 2012

Document filed on March 14, 2012 Plea Agreement

U.S. v. Robert L. Williams

(Antitrust Division: Upcoming Public Hearings)
Submitted at 3:21 PM March 28, 2012

The United States has filed civil injunction lawsuits in five cities seeking to shut down both the company that operates Instant Tax Service (ITS) as well as five owners of ITS franchises, the Justice Department announced today.

Universal Health Services Inc. (UHS) and two subsidiaries have reached a settlement in a False Claims Act lawsuit with the United States and the Commonwealth of Virginia, the Justice Department announced today.

Sentencing hearing is scheduled for April 26, 2012 at 10:30 a.m. Eastern.

U.S. v. Hilton Wong

(Antitrust Division: Criminal Case Filings)
Submitted at 2:27 PM March 28, 2012

Document filed on March 14, 2012 Plea Agreement