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Federal Criminal Defense Lawyers

Friday, June 24, 2011

www.McNabbAssociates.com

Christopher Blackwell Indicted by a Federal Grand Jury on Two Counts of Wire Fraud in Relation to an Alleged Investment Fraud Scheme McNabb Associates, P.C. (Federal Criminal Defense Lawyers) Submitted at 9:55 AM June 24, 2011

U.S Immigration and Customs Enforcement (ICE) on June 23, 2011 released the following press release: “ Defendant allegedly defrauded more than 20 victims out of more than $4 million FORT WORTH, Texas – A north Texas man has been indicted by a federal grand jury on two counts of wire fraud in relation to an investment fraud scheme he operated since January 2007. This indictment was announced by U.S. Attorney James T. Jacks of the Northern District of Texas (NDTX). The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Christopher Blackwell, 32, of Colleyville, Texas, was arrested in Phoenix, Ariz., earlier this month on a charge outlined in a related federal complaint filed in the NDTX. Blackwell remains in custody; a date has not yet been set for his arraignment in U.S. District Court in Fort Worth. According to the indictment, Blackwell allegedly deceived investors by falsely telling them that he would invest their money in business ventures that would generate a high rate of return, and by fraudulently assuring them that the investments would involve little to no risk. He told investors that their money would be invested in specific business ventures. But when he received investors’ money, instead of investing it he used most of it for his own personal benefit. On occasion, he used some of the funds from new investors to make small payments to earlier investors to convince them that their money was generating a profit. However, not all investors received payments from Blackwell, and many lost

all the money they invested. According to the criminal complaint filed in the case, more than 20 victims, suffering more than $4 million in losses as a result of Blackwell’s scheme, have been identified. One investor, identified only by initials, lost all of the $325,000 he gave Blackwell to invest. In fact, after this investor wired the money as directed to Blackwell’s accounts, agents obtained Blackwell’s bank records and were able to determine that Blackwell didn’t invest the money as promised. Instead, he used it for personal expenditures, including automatic teller machine withdrawals, dining and entertainment, luxury vehicle expenses, and payments to family and business associates. In February 2011, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Christopher Love Blackwell, AV Bar Reg Inc. and Millers A Game LLC, two entities he controls. The SEC complaint claimed that Blackwell enticed investors by telling them that his trading program would generate highly impressive, guaranteed returns of 25 to 30 percent per month with regularity. He falsely claimed these profits were possible because of his academic pedigree, including Master’s and Ph.D. degrees acquired at a prestigious university in Spain (Blackwell holds no such degrees); his extensive experience as a trader (he has little, if any, such experience); and the know-how and connections he acquired while employed by Goldman Sachs and The Bank of Madrid (he never worked at either firm). In March 2011, the SEC and Blackwell and his entities entered into an agreed judgment. This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency

Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov. An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each of the wire fraud counts carries a maximum statutory sentence of 20 years in prison and a $250,000 fine. Restitution could be ordered. Assistant U.S. Attorney Jay Stevenson Weimer is in charge of the prosecution.” To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Assistant Attorney General Christine Varney Speaks at the U.S. Chamber of Commerce (USDOJ: Justice News) Submitted at 2:59 PM June 24, 2011

"To help you evaluate our achievements, I

want to talk about developments at the Division on a variety of fronts—including civil merger and non-merger enforcement,

international efforts, and competition advocacy work," said Assistant Attorney General Varney.


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Michigan Man Who Operated Residential Facility for Youth in Haiti Indicted for Alleged Sexual Abuse of Minors at the Facility McNabb Associates, P.C. (Federal Criminal Defense Lawyers) Submitted at 10:05 AM June 24, 2011

U.S Department of Justice on June 24, 2011 released the following press release: “WASHINGTON – The operator of Morning Star Center, a residential facility located in Port-au-Prince, Haiti, that provided food and shelter to minors, has been charged with offenses involving the sexual abuse of minors in Haiti, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Director John Morton, U.S. Immigration and Customs Enforcement (ICE). Matthew Andrew Carter, aka “William Charles Harcourt” and “Bill Carter,” 66, of Brighton, Mich., was charged in a superseding indictment filed yesterday in the Southern District of Florida with four counts of traveling in foreign commerce for the purpose of engaging in illicit sexual conduct with minors. On May 8, 2011, Carter was arrested in Miami on a criminal complaint filed in the Southern District of Florida. He is currently detained. “The acts that the defendant is charged with committing, quite simply, defy belief. As charged in the indictment, he preyed upon and terrorized impoverished Haitian children who were in dire need of the services offered by the Morning Star Center – the very children he was purporting to help,” said Assistant Attorney General Breuer. “As this indictment shows, we will not allow sexual predators to avoid facing justice by committing their crimes in foreign countries. Together with our law enforcement partners abroad, we are determined to combat the sexual abuse of children no matter where it occurs.”

“This defendant preyed on innocent Haitian children living in severely depressed conditions, making his conduct particularly deplorable,” said U.S. Attorney Ferrer. “Rather than using Morning Star as he promised – to administer aid and provide sanctuary to needy children – he used the center to manipulate, abuse and sexually exploit them. Sexual predators like this defendant cannot act with impunity. We will pursue and prosecute them, no matter where they choose to commit their heinous crimes.” “Few crimes are as despicable as the ones committed against these children in Haiti. For years, he sexually abused poor and orphaned children who depended upon him for food and shelter – all under the guise of doing noble work,” said ICE Director Morton, “ICE is committed to working with our partners here and abroad to catch individuals, like this man, who engage in child sex tourism.” According to court documents, prior to his arrest, Carter operated and lived at Morning Star Center in Port-au-Prince, Haiti. Morning Star Center, which Carter operated since the mid-1990s, was a residential facility that provided shelter, food and education to Haitian minors. The minors who lived at the center were orphans or from impoverished families who could not support them. From the mid-1990s to the present, Carter frequently traveled back and forth between the United States and the center in Haiti, often to raise funds for the continued operation of the center. According to court documents, Carter allegedly sexually abused several minors in his care and custody at Morning Star Center during this time period. As alleged in court documents, Carter required the child victims to engage in illicit sexual conduct in exchange for gifts

or money or in order to remain at the center and continue receiving food, shelter and schooling. The case against Carter was investigated by ICE’s Homeland Security Investigations (HSI) in Miami; the ICE HSI Assistant Attache’s Office in Santo Domingo, Dominican Republic; and the ICE HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the FBI’s Washington and Miami Field Offices, the U.S. Secret Service in Miami, and the U.S. Embassy in Port-au-Prince, Haiti. The case is being prosecuted by Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida. If convicted, Carter faces a maximum sentence of 15 years in prison for one count of child sex tourism and a maximum sentence of 30 years in prison for each of the other three child sex tourism counts. The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.” To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Conrad Black Just Resentenced in Chicago’s Federal Court McNabb Associates, P.C. (Federal Criminal Defense Lawyers) Submitted at 1:13 PM June 24, 2011

According to news reports, Conrad Black was just resentenced to 42 months confinement (from 78 months), $125,000 fine, and 2 years supervised release by United States Federal District Court Judge

Amy J. St. Eve. He has served 29 months of the 42 month sentence. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal

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


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Fatima and Khaled Saleh Indicted for Allegedly Defrauding U.S. Food Stamp and Nutrition Programs of more than $500,000 McNabb Associates, P.C. (Federal Criminal Defense Lawyers)

U.S Attorney’s Office Northern District of Illinois on June 23, 2011 released the following press release: “CHICAGO — A Waukegan couple who operate a small grocery were indicted for allegedly defrauding government food stamp and nutrition programs of more than $500,000 over the last two years following an undercover investigation, federal law enforcement officials announced today. The defendants, Fatima and Khaled Saleh, who own and operate Sunset Food Market in Waukegan, allegedly illegally exchanged cash with customers who made falsely inflated purchases using food stamp cards and nutrition coupons. They also allegedly purchased items, typically infant formula, that customers bought at other stores using their program benefits, paying customers approximately half of the value of the items in cash and then re-selling the same items in their store at a substantially higher price. Khaled Saleh, 46, and Fatima Saleh, 35, were each charged with one count of conspiracy to defraud government programs and one count of Agriculture Department program fraud in a twocount indictment that was returned by a federal grand jury yesterday, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, together with Joe Smith, Special Agent-in-Charge of the U.S. Department of Agriculture Office of Inspector General, and John Gullickson, Acting Special Agent-in-Charge of the U.S. Secret Service, both in Chicago. The Illinois Department of Human Services assisted in the investigation.

The charges followed an investigation in which a USDA-OIG agent, acting undercover, allegedly exchanged food stamp benefits for cash and used benefits to purchase formula at a discount store and then sold the formula cans for half the price in cash to the Salehs on several occasions. Agents executed a federal search warrant at Sunset market on April 26, 2011, and the Salehs were arrested last month on a criminal complaint. Both defendants remain free on bond and will be arraigned at a later date in U.S. District Court. After the search of the store, Fatima Saleh went to her apartment and agents observed her leaving a short time later with a suitcase and her mother. After giving consent to search the suitcase, agents found more than $350,000 cash and more than 800 coupon vouchers for the Women, Infants and Children Program (WIC), a supplemental food program to provide a more nutritious diet to lowincome infants, young children and pregnant and post-partum women. Agents later discovered an additional $25,000 cash in the couple’s apartment. The indictment seeks forfeiture of approximately $377,000 seized on April 26, as well as more than $14,500 seized from Sunset Food’s bank account. According to the indictment, in addition to accepting WIC coupons, Sunset Foods also participated in the Supplemental Nutrition Assistant Program, formerly known as the Food Stamp Program, and was authorized to accept LINK cards used by customers to purchase eligible food items. Between August 2009 and April 2011, the defendants redeemed more than $1.175 million in LINK food stamp and WIC coupons, with more than $500,000

being obtained through the fraud, the indictment alleges. The store’s participation in the programs has been suspended. Court documents allege that Fatima Saleh had applied for and received LINK food stamp benefits and WIC coupons for herself. In 2010, she last received WIC vouchers and as much as $952 a month in LINK card benefits, and a month ago she was receiving $738 a month in food stamp benefits. The government is being represented by Assistant U.S. Attorney Andrew R. DeVooght. Each count of the indictment carries a maximum penalty of five years in prison and a $250,000 fine. If convicted, restitution is mandatory and the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the United States has the burden of proving guilt beyond a reasonable doubt.” To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Michigan Man Who Operated Residential Facility for Youth in Haiti Indicted for Sexual Abuse of Minors at the Facility

East Hartford, Conn., Woman Sentenced to More Than Nine Years in Prison for Sex Trafficking of Minors

Conrad Black Faces Resentencing in Chicago Federal Court

(USDOJ: Justice News)

(USDOJ: Justice News)

Submitted at 10:05 AM June 24, 2011

Submitted at 11:57 AM June 24, 2011

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)

The operator of Morning Star Center, a residential facility located in Port-auPrince, Haiti, that provided food and shelter to minors, has been charged with offenses involving the sexual abuse of minors in Haiti.

An East Hartford, Conn., woman was sentenced yesterday by U.S. District Judge Mark R. Kravitz in New Haven, Conn., to 110 months in prison for the sex trafficking of two minor girls in 2009.

Submitted at 12:14 PM June 24, 2011

Submitted at 10:26 AM June 24, 2011

Associated Press on June 24, 2011 released the following: “CHICAGO (AP) — The long-running legal saga of a once-powerful media mogul whose newspaper empire spanned several continents reaches a climax on Friday when a federal judge decides CONRAD page 4


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CONRAD continued from page 3

whether to send him back to prison or let him remain free based on time served. Prosecutors who brought the fraud case against Conrad Black, 66, have depicted him as a devil-may-care elitist who looks down his nose at the rest of humanity. The defense counters he is actually a gentleman, unbowed by adversity, who quietly goes about helping others. Which portrayal U.S. District Judge Amy St. Eve accepts may factor into her ruling on whether to return Black to a Florida federal prison for several more years or, as his lawyers have asked, to resentence him to time served. On Friday, Black arrived at the courthouse in downtown Chicago with his wife, Barbara, for the resentencing hearing. A jury convicted Black in 2007, and St. Eve at the time sentenced him to 6 1/2 years for defrauding investors in Hollinger International Inc. But Black, whose empire once included the Chicago Sun-Times, The Daily Telegraph of London, The Jerusalem Post and small papers across the U.S. and Canada, was freed on bail after serving two years to let him to pursue what would be partially successful appeals. (See: Conrad Black faces resentencing in Chicago) The 7th U.S. Circuit Court of Appeals in Chicago last year tossed out two of Black’s fraud convictions but upheld a conviction for fraud and one for obstruction of justice. And it said Judge St. Eve would have to sentence Black again for those two standing counts. Despite the nullified counts, prosecutors are asking St. Eve to hand the burly,

silvery-haired Black the same 6 1/2-year sentence she originally meted out in 2007, meaning he would have to spend about 4 1 /2 more years in prison. “He fails to acknowledge his central role in destroying Hollinger International through greed and lies, instead blaming the government and others for what he describes as an unjust persecution,” prosecutors said in a recent filing. Black’s lawyers, in turn, have accused government attorneys of vindictiveness, saying their justification for a stiffer sentence displays “a drive-by disparagement of Mr. Black which reveals nothing but the intensity of the government’s dislike for him.” A major point of contention Friday is likely to be accounts of Black’s behavior during his two years in prison. (See: Witness in Amanda Knox trial says he can clear her) The defense argues Black was a model prisoner, noting that the accomplished biographer – whose subjects have included Franklin D. Roosevelt and Richard Nixon – helped teach inmates American history and economics; and gladly offered advice about business and other matters to prisoners who constantly approached him. But prosecutors say the defense paints too rosy a picture of Black’s prison life. One prison employee, Tammy Padgett, claimed in an affidavit filed by prosecutors that Black had arranged for inmates – “acting like servants” – to clean and cook for him, to iron his clothes, mop his floor and perform other chores. Another employee told her that Black

once insisted that she address him as “Lord Black,” after an honorary title bestowed on him by Britain, Padgett added. The defense denied both characterizations. His big chance to squash the convictions arose in June of 2010, when the U.S. Supreme Court sharply curtailed disputed “honest services” laws that underpinned part of Black’s case. The appellate court that reversed two of Black’s convictions cited that landmark ruling. But the appellate judges said the one fraud and obstruction of justice convictions were not affected by the Supreme Court’s ruling. The fraud conviction, the judges concluded, involved Black and others taking $600,000 and had nothing to do with honest services: It was, they asserted, straightforward theft.” To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

Javier Arce and Cristina Mier Arce Indicted by a Federal Grand Jury For Conspiracy and Harboring of Undocumented Bolivian National for Financial Gain McNabb Associates, P.C. (Federal Criminal Defense Lawyers) Submitted at 10:40 AM June 24, 2011

U.S. Department of Justice on June 23, 2011 released the following press release: “WASHINGTON – Javier Arce, 58, and Cristina Mier Arce, 55, were indicted by a federal grand jury for conspiracy and harboring of an undocumented Bolivian national for their financial gain, the Justice Department announced today. According to the indictment, the defendants, who were formerly married to one another, recruited an undocumented Bolivian woman to work as their domestic servant and harbored her unlawfully for a total of nearly 15 years. The indictment alleges that beginning in 1994, the defendants recruited the woman to travel

to the United States, and then conspired to harbor her and derive financial benefit from her labor as a full-time domestic servant from 1994 to 2006. The indictment, filed in the Western District of Kentucky, also alleges that the defendants confiscated the woman’s passport, threatened that she would be arrested and deported if she left their home, and falsely assured her that her wages were being deposited into a bank account maintained on her behalf, while actually failing to pay her as promised for her service. The indictment further alleges that Javier Arce harbored the woman for financial gain from 2006-2009. At arraignment today, both defendants entered not guilty pleas and were released on $100,000 bonds. A trial date has been

scheduled in U.S. District Court in Louisville, Ky., on Aug. 30, 2011, at 9:30 a.m. before Judge John G. Heyburn II. If convicted, Javier Arce faces a maximum sentence of 30 years in prison, $750,000 fine and three years supervised release. Christina Mier Arce faces a maximum sentence of 20 years in prison, $500,000 fine and three years supervised release. The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty in a court of law. The case is being investigated by the FBI and prosecuted jointly by Assistant U.S. Attorney Joshua Judd and Trial Attorney Daniel Weiss of the Civil Rights JAVIER page 5


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JAVIER continued from page 4

Division’s Human Trafficking Prosecution Unit.� To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition

and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


June 24, 2011 - The Federal Crimes Watch Daily