Bribing govt officials not a good idea

"Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Kenneth A. Blanco, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James D. Robnett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Angel M. Melendez, Special Agent in Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced today the unsealing of a Complaint charging CHI PING PATRICK HO, a/k/a “Patrick C.P. Ho,” and CHEIKH GADIO with participating in a multi-year, multimillion-dollar scheme to bribe high-level officials in Chad and Uganda in exchange for business advantages for a Chinese oil and gas company (the “Energy Company”).  HO and GADIO were charged with violations of the Foreign Corrupt Practices Act (“FCPA”), international money laundering, and conspiracy to commit both.  GADIO was arrested in New York on Friday afternoon and presented on Saturday before U.S. Magistrate Judge Kevin Nathaniel Fox.  HO was arrested on Saturday afternoon and was presented today before U.S. Magistrate Judge Andrew J. Peck and ordered detained.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “In an international corruption scheme that spanned the globe, Chi Ping Patrick Ho and Cheikh Gadio allegedly conspired to bribe African government officials on behalf of a Chinese energy conglomerate.  Wiring almost a million dollars through New York’s banking system in furtherance of their corrupt schemes, the defendants allegedly sought to generate business through bribes paid to the President of Chad and the Ugandan Foreign Minister.  As alleged, Ho’s Ugandan scheme was hatched in the halls of the United Nations in New York, when the country’s current Foreign Minister served as the President of the U.N. General Assembly, and then continued unabated upon his return to Uganda.  International bribery not only harms legitimate businesses and fair competition, but it also destroys public faith in the integrity of government.  And when this type of international corruption and bribery touches our shores and our financial system, as the alleged schemes did, federal criminal charges in an American court may very well be the end result.”

Acting Assistant Attorney General Kenneth A. Blanco said:  “This alleged scheme involved bribes at the highest levels of the governments of two nations.  The Criminal Division is committed to investigating and prosecuting corrupt individuals who put at risk a level playing field for corporate competitiveness, regardless of where they live or work.  Their bribes and corrupt acts hurt our economy and undermine confidence in the free marketplace.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The scheme described in this case boils down to these subjects allegedly trying to get their hands on the rights to lucrative opportunities in Africa.  They were allegedly willing to throw money at the leaders of two countries to bypass the normal course of business, but didn’t realize that using the U.S. banking system would be their undoing.  The FBI, our partners in the IRS and the law enforcement community work diligently day after day to protect the integrity of our financial institutions, and stop foreign entities corrupting international commerce.”

IRS-CI Special Agent in Charge James D. Robnett said:  “IRS Criminal Investigation operates worldwide and has the expertise to identify bribery schemes such as alleged in the Criminal Complaint.  Our Special Agents are especially skilled at piecing together these financial puzzles, even those that involve such high level participants.”

HSI Special Agent in Charge Angel M. Melendez said:  “These individuals allegedly offered millions of dollars in bribes to foreign officials, disguised as charitable donations, in order to seek business advantages. One used his position with a United Nations Council to further this scheme.  We will continue to aggressively investigate financial crimes committed by corrupt foreign officials while working collaboratively with our counterparts at the FBI and IRS.” 

According to the allegations in the Complaint[1] and other statements in the public record:

           

Overview

This case involves two bribery schemes to pay high-level officials of Chad and Uganda in exchange for business advantages for the Energy Company, a Shanghai-headquartered multibillion-dollar conglomerate that operates internationally in the energy and financial sectors.  At the center of both schemes is CHI PING PATRICK HO, a/k/a “Patrick C.P. Ho,” the head of a non-governmental organization based in Hong Kong and Virginia (the “Energy NGO”) that holds “Special Consultative Status” with the United Nations (“UN”) Economic and Social Council.  The Energy NGO is funded by the Energy Company.

In the first scheme (the “Chad Scheme”), HO, with GADIO’s assistance, caused the Energy Company to offer a $2 million bribe to the President of Chad in exchange for securing business advantages for the Energy Company in its efforts to obtain valuable oil rights from the Chadian government.  In particular, in exchange for the bribe, the President of Chad provided the Energy Company with, among other things, an exclusive opportunity to obtain particular oil rights in Chad without facing international competition.  GADIO, who is the former Foreign Minister of Senegal and who operated an international consulting firm, played an instrumental role in the Chad Scheme by, among other things, connecting HO with the President of Chad and conveying the $2 million bribe offer to the President of Chad.  HO compensated GADIO by paying him $400,000 via wires transmitted through New York, New York.

In the second scheme (the “Uganda Scheme”), HO caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly (the “Ugandan Foreign Minister”).  HO also provided the Ugandan Foreign Minister, as well as the President of Uganda, with gifts and promises of future benefits, including offering to share the profits of a potential joint venture in Uganda involving the Energy Company and businesses owned by the families of the Ugandan Foreign Minister and the President of Uganda.  These payments and promises were made in exchange for assistance from the Ugandan Foreign Minister in obtaining business advantages for the Energy Company, including the potential acquisition of a Ugandan bank.

The Chad Scheme

As alleged in the Complaint, the Chad Scheme began in or about October 2014, when HO and GADIO met at the UN in New York, New York.  At that time, the Energy Company wanted to expand its oil operations to Chad, and to do so, it wanted to enter into a joint venture with a Chinese government-owned oil and gas company (the “Chinese State Oil Company”) that was already operating in Chad.  Earlier that year, the Chinese State Oil Company had been fined $1.2 billion by the government of Chad for environmental violations.  HO enlisted GADIO – who had a personal relationship with the President of Chad – to assist the Energy Company in gaining access to the President of Chad, with the initial goal of resolving the dispute between the government of Chad and the Chinese State Oil Company, and the ultimate goal of obtaining oil opportunities for the Energy Company in Chad.

GADIO successfully connected HO and the Energy Company to the President of Chad and to other Chadian officials.  HO, acting on GADIO’s advice, then caused the Energy Company to pledge a $2 million bribe to the President of Chad, in what was characterized as a “donation” for charitable causes.  GADIO later solicited from HO a $500,000 payment for GADIO’s firm, arguing that he should receive a percentage of the $2 million “gift” from the Energy Company to the President of Chad.

In reality, this “donation” was a bribe intended to influence the award of oil rights in favor of the Energy Company.  Following this $2 million pledge to the President of Chad, the Energy Company obtained a business advantage in its negotiations to acquire oil rights in Chad, in particular, by having the exclusive opportunity to purchase particular oil rights without facing international competition.  Ultimately, the Energy Company did not complete this acquisition, but instead purchased other oil rights in Chad from a Taiwanese company.  In exchange for GADIO’s efforts to facilitate the bribery of the President of Chad, HO caused $400,000 to be paid to GADIO’s firm, via two wires that were transmitted through a bank in New York, New York.

The Uganda Scheme

As alleged in the Complaint, the Uganda Scheme began in or about October 2014, when HO met at the UN in New York, New York with the Ugandan Foreign Minister, who had recently begun his term as the 69th President of the UN General Assembly (“PGA”).[2]  HO, purporting to act on behalf of the Energy NGO, met with the Ugandan Foreign Minister and began to cultivate a relationship with him.  During the year that the Ugandan Foreign Minister served as PGA, HO and the Ugandan Foreign Minister discussed a “strategic partnership” between Uganda and the Energy Company for various business ventures, to be formed once the Ugandan Foreign Minister completed his term as PGA and returned to Uganda.

In or about February 2016 – after the Ugandan Foreign Minister had resumed his role as Foreign Minister of Uganda, and his in-law had been reelected as the President of Uganda – the Ugandan Foreign Minister solicited a payment from HO, purportedly for a charitable foundation that he wished to launch.  HO caused a $500,000 payment to be wired to an account in Uganda designated by the Ugandan Foreign Minister, through a bank in New York, New York.  In his communications, HO variously referred to this payment as a “donation” to the reelection campaign of the President of Uganda (who had already been reelected) and as a “donation” to “support” the Ugandan Foreign Minister.

In fact, this payment was a bribe to obtain business advantages for the Energy Company in its efforts to secure contracts and ventures in Uganda’s financial and energy sectors.  HO also provided the Ugandan Foreign Minister, as well as the President of Uganda, with promises of future benefits, including proposing to partner with both officials’ family businesses in potential joint ventures.  In exchange, the Ugandan Foreign Minister assisted the Energy Company in obtaining business in Uganda, including by facilitating the Energy Company’s interest in potentially acquiring a bank.

*                      *                      *

HO, 68, of Hong Kong, China, and GADIO, 61, of Senegal, are each charged with conspiring to violate the FCPA, violating the FCPA, conspiring to commit international money laundering, and committing international money laundering.  The maximum penalties for these charges are as follows: five years in prison for conspiring to violate the FCPA; five years in prison for each violation of the FCPA; 20 years in prison for conspiring to commit international money laundering; and 20 years in prison for each charge of committing international money laundering.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge."

Money is like a drug and they thought they would never fall or get caught. It hits them with  a ton of bricks. Now they will have a change in life pattern. To read more, go here...

https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG   

" 

Woman gets 18 months prison sentence for phony home care service claims

"URBANA, Ill., -- A Decatur, Ill., woman, Charissie Davis, was sentenced this afternoon to serve 18 months in federal prison for defrauding the Home Services Program, a Medicaid waiver program. The health care benefit program provides funding to pay personal assistants who aid qualifying disabled individuals in performing household tasks and personal care. With the permission of a doctor, the personal assistant may also perform certain health care procedures.

Davis, 44, of the 2500 block of E. Prairie St., pled guilty on May 5, 2017, to submitting falsified Home Services Program time sheets for payment. Davis admitted that she filled in hours worked by her son for services that he never provided from February 2011 to February 2013, and from June 2013 to March 2014. In fact, Davis’s son did not provide personal assistant services to Davis because he was incarcerated. Davis signed the time sheets herself and forged her son’s signature. When Davis received payment, she endorsed the checks by signing her son’s name.

Davis was ordered to surrender to the federal Bureau of Prisons on Jan. 23, 2018. She was also ordered to pay restitution in the amount of $50,244."

18 months prison sentence is a walk in the park, especially if there is a track in the prison.

What can she expect, ? Go here....https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG

  

how to tell the difference between a truth and a lie?

The devil is in the details. The difference between truth or emes which is 441 and false or sheker which is 600 equals 159, which is katan, meaning small. It is the little details that will expose the one making up the lie. For example, one man claimed that he used to attend services in a certain temple. So they asked him where he used to sit. He could not answer the question. So what makes this suspicious? Since religious Jews have a makom kavuah, or set place in the temple where they sit. If the man did not know this little detail, he is obviously lying. 

For more tips from gematria see Code of the Heart...


https://www.amazon.com/Code-Heart-Gematria-Bible-Decoder-ebook/dp/B012LM98XO
   

fake diamond deals leads to heavy prison sentence

"DALLAS — Craig Allen Otteson, 65, of McKinney, Texas, and Jay Bruce Heimburger, 59, of Dallas, appeared this afternoon before U.S. District Judge Sidney A. Fitzwater and were sentenced for their roles in a diamond investment scheme, announced U.S. Attorney John Parker of the Northern District of Texas.

Otteson and Heimburger both pleaded guilty in July 2017 to one count of mail fraud. Judge Fitzwater sentenced Otteson to 121 months in federal prison and ordered him to pay $4,704,784 in restitution. Heimburger was sentenced to 97 months in federal prison and ordered him to pay $4,707,794 in restitution.

Co-defendant Christopher Arnold Jiongo, 57, of Houston, pleaded guilty to his role in the scheme and is scheduled to be sentenced on November 21, 2017.

According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas.  Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond.  Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas.  JBH Securities was primarily involved in the business of providing investment advice.  Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market.  On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.

The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds.  As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond.  Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.

The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors.  Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond.  By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.

According to the plea documents signed by Otteson, during the period from February 2012 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises.  In plea papers filed with the court, Otteson admitted that he and Heimburger engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds.  Otteson also admitted that as part of the scheme to defraud investors, Otteson and Heimburger caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.      

The indictment alleged that during the period from 2011 through 2013, Otteson, Heimburger, and Jiongo caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors.  During the sentencing hearing, witnesses testified that in June 2011 Otteson and Heimburger caused letters to be sent to the Texas State Securities Board and to ASR which contained false statements."

What can they expect in federal prison? Go here and enjoy my suffering....with popcorn and sprite

https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG

 

Navnoor Kang,Director of fixed income takes a guilty plea

Navnoor Kang in his glory days

"Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that NAVNOOR KANG, the former Director of Fixed Income and Head of Portfolio Strategy at the New York State Common Retirement Fund (“NYSCRF”), pled guilty today before U.S. District Judge J. Paul Oetken for participating in a massive “pay-for-play” bribery scheme involving the NYSCRF, the nation’s third largest public pension fund. 

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As an investment professional with New York State Common Retirement Fund, Navnoor Kang owed a duty to the public employees whose pension money he oversaw.  But in this case of public corruption meets securities fraud, Kang sold himself and his duty to safeguard public retirement money for luxury vacations, jewelry, cash and even drugs.  He has now admitted to his crimes and is a convicted felon. ”

According to allegations contained in the Indictment charging KANG and statements made during his plea proceeding:

The NYSCRF

The NYSCRF is a pension fund administered for the benefit of public employees of the State of New York.  From January 2014 through February 2016, KANG served as Director of Fixed Income and Head of Portfolio Strategy for the NYSCRF.  In that capacity, KANG was responsible for investing more than $53 billion in fixed-income securities and was entrusted with discretion to manage those investments on behalf of the NYSCRF.  KANG owed a fiduciary duty to the NYSCRF and its members and beneficiaries, and was required to make investment decisions in their best interests and free of any conflict of interest.  New York State law and NYSCRF policies prohibited KANG and other NYSCRF employees from receiving any bribes, gifts, benefits, or consideration of any kind.

The Scheme to Steer NYSCRF Fixed-Income Business in Exchange for Secret Bribes

From 2014 through 2016, KANG and others participated in a scheme to defraud the NYSCRF and its members and beneficiaries, and to deprive the NYSCRF of its intangible right to KANG’s honest services.  The scheme involved, among other things, an agreement among KANG, Deborah Kelley, a managing director of institutional fixed income sales at New York-based broker-dealer (“Broker-Dealer-1”), Gregg Shonhorn, a vice president of fixed income sales at a New York-based broker-dealer (“Broker-Dealer-2”), and others to pay KANG bribes – in the form of entertainment, travel, lavish meals, prostitutes, nightclub bottle service, narcotics, tickets to sports games and other events, luxury gifts, and cash payments for strippers and KANG’s personal expenses – in exchange for fixed-income business from the NYSCRF.  Such bribes – which totaled more than $100,000 – were strictly forbidden by the NYSCRF, and were paid secretly and without any disclosure to the NYSCRF and its members and beneficiaries concerning the conflicts of interest inherent therein. 

In exchange for the bribes paid by Kelley, Schonhorn, and others, KANG used his position as Director of Fixed Income and Head of Portfolio Strategy at the NYSCRF to promote the interests of Kelley, Schonhorn, and their respective brokerage firms.  KANG, in exchange for the bribes he received, agreed to steer fixed-income business to Broker-Dealer-1 and Broker-Dealer-2.  In fact, KANG steered more than $3 billion in fixed-income business to Broker-Dealer-1 and Broker-Dealer-2, from which Kelley, Schonhorn, and their respective employers earned millions of dollars in commissions from the NYSCRF.  In so doing, KANG, with the knowledge and approval of Kelley and Schonhorn, breached his fiduciary duty to make investment decisions in the best interest of the NYSCRF and its members and beneficiaries, and free of conflict, and deprived the NYSCRF of its intangible right to KANG’s honest services.

As the bribes paid by Schonhorn to KANG increased, so too did Broker-Dealer-2’s fixed-income business with the NYSCRF.  The value of the NYSCRF’s domestic bond transactions with Broker-Dealer-2 skyrocketed from zero in the fiscal year ending March 31, 2013, to approximately $1.5 million in the fiscal year ending March 31, 2014, to approximately $858 million in the fiscal year ending March 31, 2015, and to approximately $2.378 billion in the fiscal year ending March 31, 2016.  Broker-Dealer-2 became the third largest broker-dealer with which the NYSRCF executed domestic bond transactions for the fiscal year ending March 31, 2016, having not even been on the approved list in the fiscal year ending March 31, 2013.  As the NYSCRF’s third largest broker-dealer in this asset class, Broker-Dealer-2 brokered approximately eight percent of the total value of the NYSCRF’s domestic bond transactions – a figure greater than that of all but two of the major international banks and brokerage houses on the list.  Similarly, the value of NYSCRF’s domestic bond transactions with Broker-Dealer-1 increased from zero in the fiscal year ending March 1, 2014, to approximately $156 million in the fiscal year ending March 1, 2015, and to approximately $179 million in the fiscal year ending March 1, 2016. 

KANG’s trades resulted in the payment of millions of dollars in commissions to Broker-Dealer-1 and Broker-Dealer-2, of which Kelley and Schonhorn personally earned approximately 35 to 40 percent.

The Obstruction of Justice

In late 2015, the Securities and Exchange Commission (“SEC”) opened an investigation into the entertainment and benefits that Kelley had provided KANG, and the SEC subpoenaed both KANG and Kelley for their testimony.  In advance of their testimony, KANG and Kelley agreed to align their stories and testify falsely before the SEC in order to conceal their scheme.  In late 2015 and early 2016, KANG and Kelley each falsely testified under oath before the SEC about expenses Kelley had paid for KANG.  Moreover, after a federal grand jury investigation was opened, KANG instructed Schonhorn to testify falsely before the grand jury, and KANG admitted that he had hidden relevant evidence. 

*                      *                      *

KANG, 37, of Glendale, California, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison.  KANG is scheduled to be sentenced on February 23, 2018, by Judge Oetken."

What can he expect in prison? First of all there are no colorful scarves. Only grey scarves. Second , you will get used to a spartan life.

To  read more, go here...https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG 

former MDC correctional guard pleads guilty

"

MDC Brooklyn

Earlier today, Armando Moronta pled guilty at the federal courthouse in Brooklyn to bribery, narcotics conspiracy and four counts of sexual abuse of a ward.  At the time of the offenses, Moronta was a federal correctional officer employed by the United States Bureau of Prisons (BOP) at the Metropolitan Detention Center in Brooklyn, New York (MDC); he was suspended by the BOP after his initial arrest on bribery and narcotics charges.  The charges stem from two separate indictments.  When sentenced, Moronta faces up to 20 years in prison on the narcotics conspiracy charge and 15 years in prison on each of the bribery and sexual abuse charges.  Moronta has also agreed to forfeiture of $15,000 in bribe payments and is required to register as a sex offender.  The proceeding took place before United States District Judge Roslynn R. Mauskopf.

"Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Ronald G. Gardella, Special Agent-in-Charge, United States Department of Justice, Office of the Inspector General, New York Field Office (DOJ OIG), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the plea. 

“In a fundamental breach of his duties as a public servant, former federal correctional officer Moronta compromised the safety of the MDC by allowing inmates to have prohibited goods and abusing inmates sexually,” stated Acting United States Attorney Rohde.  “This case serves as a reminder that correctional officers who would so compromise the well-being of their colleagues and charges will be held accountable to the fullest extent of the law.”

“Corruption and abuse of power have no place in our federal correctional system and will not be tolerated,” stated DOJ OIG Special Agent-in-Charge Gardella.  “Moronta’s conduct shattered the safety of his victims and imperiled the security of the MDC.  The OIG will continue to work closely with the BOP and our law enforcement partners to ensure that individuals who abuse the public’s trust in this manner are brought to justice.”

“While the vast majority of law enforcement officers carry out their duties with honor and dignity, Moronta did not,” stated Assistant Director-in-Charge Sweeney.  “May this case serve as an example to anyone who dares to threaten the integrity of the law enforcement profession—just because you’re awarded a badge of honor, it doesn’t mean you can hide behind the shield.”

According to court filings and facts presented during the plea proceeding, between March and December 2016, on approximately 12 occasions, Moronta smuggled cellular telephones and narcotics, including the synthetic narcotic “K2” and Suboxone, into the MDC for use and distribution by male inmates in exchange for thousands of dollars in bribe payments.  Separately, between May and June 2016, Moronta engaged in criminal sexual contact and acts with three female inmates, including fondling a female inmate and causing inmates to perform oral sex on him while he was assigned to guard their unit.

The government’s bribery and narcotics case is being handled by the Office’s Public Integrity and International Narcotics and Money Laundering Sections.  Assistant United States Attorneys Nadia Shihata and Andrew Gilman are in charge of that prosecution.  The government’s sexual abuse case is being handled by the Office’s Public Integrity Section.  Assistant United States Attorney Nadia Shihata is in charge of that prosecution."

I was in MDC and it is a sick place. At the same time, guards are human and susceptible to corruption. When I was there, there was a lot of marijuana being smuggled in. It looks like they cant stop corrupt guards but in the end, they do get caught.

To read more about what this rogue guard is facing behind the fence, go here....
https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG

former cfo gets 18 months prison sentence

"Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that BRIAN BLOCK, the former chief financial officer of the publicly traded real estate investment trust (“REIT”) formerly known as American Realty Capital Partners (“ARCP”), was sentenced to 18 months in prison for inflating a key metric used to evaluate the financial performance of publicly traded REITS in ARCP’s filings with the U.S. Securities and Exchange Commission (the “SEC”).  BLOCK was convicted by a jury in June, following a three-week trial before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.[1]          

Acting Manhattan U.S. Joon H. Kim said:  “Block, the CFO of a major REIT, deliberately cooked the books to mislead investors and the SEC.  Investors in our securities markets must be able to trust that corporate officers will not lie about the financial health of a publicly traded company.  And corporate officers who do lie face time in a federal prison, as Brian Block has learned.”

According to allegations contained in the Indictment, and evidence presented during the trial in Manhattan federal court:

In 2014, ARCP was a publicly traded REIT headquartered in Manhattan, New York.  ARCP’s securities traded under the symbol “ARCP” on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) exchange.

ARCP, like many REITs, measured its financial performance through metrics besides, or in addition to, traditional measurements of company performance calculated using Generally Accepted Accounting Principles (“GAAP”).  ARCP calculated and reported to the investing public a non-GAAP measure called adjusted funds from operations, or AFFO, which was designed to more accurately reflect ARCP’s cash flow and financial performance by presenting ARCP’s income before consideration of non-cash depreciation and amortization expense and by excluding certain one-time charges and expenses.  REITs such as ARCP commonly reported their AFFO figures, including AFFO per share, to the investing public and in filings with the SEC.  ARCP also provided forward-looking guidance to the investing public regarding their anticipated AFFO performance in upcoming time periods.      

Prior to the filing of ARCP’s Form 10-Q setting forth ARCP’s financial statements for the second quarter of 2014 (the “Second Quarter 10-Q”), BRIAN BLOCK, along with Lisa McAlister and others, came to understand that the method used by ARCP to calculate AFFO in the first quarter of 2014 and in certain previous quarters was erroneously inflated.  Another employee of ARCP (“CC-1”) had brought this methodological error to the attention of BLOCK, McAlister, and others shortly before the filing of ARCP’s first quarter 2014 10-Q (the “First Quarter 10-Q”), but no corrective change was made to the First Quarter 10-Q while the issue was under review.  Following the filing of the First Quarter 10-Q, CC-1 concluded, and advised BLOCK, McAlister, and others, that the reported AFFO per share calculation for the first quarter of 2014 was overstated by approximately $0.03 per share.  Instead of $0.26 per share, which was publicly reported by ARCP to its shareholders and the investing public, and which placed ARCP on track to meet its full-year AFFO per-share guidance, the correct AFFO for the first quarter of 2014 was $0.23 per share.  

Despite his knowledge of a material error in ARCP’s previous filings with the SEC, BLOCK took no steps to advise the Audit Committee of ARCP’s Board of Directors, or ARCP’s outside auditors, of the error in the First Quarter 10-Q.  Moreover, BLOCK, McAlister, and CC-1 then knowingly facilitated the use of the same materially misleading calculations in ARCP’s Second Quarter 10-Q.  For example, on July 24, 2014, a draft of ARCP’s Second Quarter 10-Q was circulated to members of ARCP’s Audit Committee.  The draft included an AFFO calculation for the six-month period ending June 30, 2014, that incorporated AFFO figures from the first quarter of 2014 that BLOCK, McAlister, and CC-1 knew to be erroneously inflated.

On July 28, 2014, BLOCK met with McAlister and CC-1 in his office in Manhattan for the purpose of finalizing the financial figures that were to be included in ARCP’s Second Quarter 10-Q.  Utilization of a proper method to calculate ARCP’s second quarter 2014 AFFO would have exposed that the reported AFFO and AFFO per share figures from the first quarter were inflated.  Accordingly, during the meeting, BLOCK, McAlister, and CC-1 inserted into a spreadsheet BLOCK was using to calculate AFFO and AFFO per share for the first and second quarters of 2014 and for the first six months of 2014 (“YTD 2014”) figures that fraudulently inflated the AFFO and AFFO per share calculations that were to be included in the Second Quarter 10-Q and the related ARCP press release.  The fraudulent numbers BLOCK, McAlister, and CC-1 used to inflate the AFFO and AFFO per share figures had no basis in fact, were without documentary support, and did not tie to ARCP’s general ledger accounting system, as BLOCK knew and understood at the time.  The fraudulent numbers included in the spreadsheet prepared by BLOCK were then incorporated into ARCP’s Second Quarter 10-Q, which was filed with the SEC the following day.  As a result of the manipulative efforts of BLOCK, McAlister, and CC-1, ARCP’s SEC filings included AFFO and AFFO per share figures for the second quarter of 2014 and for the first six months of 2014 that were fraudulently inflated.  "

18 months is a walk in the park, microwave time. In any event, this is what the CFO can expect...
https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG

  

class action lawsuit against MDC Brooklyn

mdc brooklyn, courtesy, daily news 

There is a class action lawsuit pending against the Bureau of Prisons based on the filthy conditions at the MDC Brooklyn Federal detention center.
See story here...http://www.nydailynews.com/new-york/brooklyn/brooklyn-fed-jail-putrid-conditions-negligent-staff-suit-article-1.3607490

I survived that horrible place in 2013 and 2014. See my story here...

https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG
   

Deputy Jailer Murderer gets 10 1/2 years jail, 15 years less than rubashkin

"WASHINGTON – Justice Department announced today that a former supervisory deputy jailer at the Kentucky River Regional Jail (KRRJ), Perry County, Kentucky, has been sentenced to 126 months in federal prison related to his role in an unprovoked violent assault of a detainee.

United States District Judge Karen K. Caldwell formally sentenced Damon Wayne Hickman, 40, on his conviction.  Under federal law, Hickman must serve 85 percent of his prison sentence.  Following the completion of his prison term, he will be under the supervision of the United States Probation Office for three years.

On Nov. 9, 2016, Hickman entered a guilty plea to using excessive force against the detainee, resulting in bodily injury, and to deliberately ignoring the detainee’s serious medical needs, also resulting in bodily injury, and obstruction of justice.  On May 11, 2017, William Curtis Howell, 60, was convicted of the same offenses after a jury trial, and he is scheduled to be sentenced in United States District Court on Dec. 19, 2017.  Hickman was also convicted of obstruction of justice for creating a fake medical log to cover up his and Howell’s misconduct.

According to evidence and testimony presented during Hickman’s pretrial hearings and Howell’s jury trial, on July 9, 2013, at the Kentucky River Regional Jail in Hazard, Kentucky, Hickman and Howell violently beat Larry Trent, 54, a pretrial detainee, and left him in his cell, seriously injured and bleeding from an open head wound.  Trent ultimately died from injuries sustained during the beating.  Trent was in custody for a DUI charge.  Hickman, who was initially charged along with Howell, pleaded guilty prior to trial and testified against Howell.

The assault started when Howell and Hickman opened the door to Trent’s cell to remove a sleeping-mat, and Trent ran out of the cell.  Howell tased Trent, and after Trent was brought to the floor, Hickman, without justification, violently kicked Trent in the ribs.  Hickman and Howell continued their assault after Trent was carried back to the area outside of his cell.  Both deputies, without justification, punched, kicked, and stomped on Trent.  Witnesses further testified that, before closing the cell door, Howell stepped into Trent’s cell and kicked Trent in the head while Trent was on the floor and posing no threat.  After the assault, Hickman and Howell had other inmates clean up Trent’s blood from the floor and walls outside of his cell.

The evidence further revealed that Trent was lying motionless in his cell with blood all over his face.  However, Hickman and Howell willfully failed to provide medical attention, because they did not want to get in trouble.  Approximately four hours after the beating, another employee at the jail discovered Trent’s lifeless body.  Paramedics were summoned and Trent was transported to a local hospital, where he was later pronounced dead.

“Corrections officers throughout the country carry out their duties in a responsible manner on a daily basis,” said Acting Assistant Attorney General John Gore. “Attacks like this one dishonor those responsible corrections officers and is a violation of civil rights, and the Department of Justice will prosecute such misconduct.”

“The criminal conduct in this case was a disgraceful breach of public trust, a grave disservice to truly dedicated law enforcement personnel, and an appalling violation of a man’s civil rights,” said Acting U. S. Attorney Carlton Shier.  “Holding law enforcement officials accountable for violations of the public trust we place in them is absolutely critical to making our communities safer.”

Autopsy results presented at trial showed that Trent died from internal bleeding caused by a displaced pelvic fracture, and from blunt force trauma to his head, torso, and extremities.

According to evidence presented at pretrial hearings for Hickman and at an unrelated jury trial of another KRRJ supervisory deputy jailer, Kevin Asher, Hickman and Asher assaulted another pre-trial detainee at the same jail in 2012.  On Oct. 19, 2017, Asher was sentenced to 108 months imprisonment for his involvement in that unrelated inmate assault.

The Kentucky River Regional Jail houses pre-trial detainees from Perry and Knott Counties.  As a supervisory deputy jailer, Hickman was responsible for the custody, care, safety and control of the inmates at the jail.

Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; John M. Gore, Acting Assistant Attorney General for the Civil Rights Division; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement. "

What I cant understand is that a murderer gets less time than a financial crime. Look at Rubashkin, a white collar criminal who received 27 year sentence. The justice system in this country is out of whack

To see what the jailer can expect in jail, go here...   https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG

promoter pleads guilty ...

Joseph Meli, 

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JOSEPH MELI pled guilty today in Manhattan federal court to securities fraud.  Between 2015 and January 2017, MELI conducted a scheme to defraud more than approximately 130 investors who invested a total of more than approximately $95 million through false representations that MELI would use investor funds to purchase tickets to various live events for resale at a profit on the secondary market.  MELI pled guilty earlier today before U.S. Magistrate Judge Barbara Moses.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “As he admitted in court today, Joseph Meli created his own theatrical production – a fictitious business that purported to have access to blocks of tickets to Broadway shows and other events.  In fact, Meli was deceiving investors into giving him money that he pocketed to fund his own extravagant lifestyle.  Now he awaits sentencing for running a Ponzi scheme.”

According to allegations in the superseding Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:           

From at least in or about 2015 through in or about January 2017, MELI conducted a scheme to defraud more than approximately 130 investors who invested a total of more than approximately $95 million through false representations that MELI would use investor funds to purchase tickets to various live events for resale at a profit on the secondary market.  In fact, MELI utilized a substantial portion of the investor funds he obtained for MELI’s personal expenses – including payments for a $3 million house in East Hampton, New York, a 2017 Porsche convertible, and expensive watches and jewelry – and to make payments, in a Ponzi-like manner, to previous investors in MELI’s ticket fraud scheme and in unrelated hedge fund.

In furtherance of the fraudulent scheme, MELI falsely represented to investors that he had entered into written agreements with production companies for popular Broadway shows and with management companies for popular singers and music bands (together, the “Production and Management Companies”) to purchase large blocks of tickets to the shows and performances.  In truth and in fact, MELI had not entered into such agreements and did not have any contractual rights to purchase such tickets from the Production and Management Companies. 

In furtherance of the scheme, moreover, MELI provided investors with falsified documents purporting to reflect agreements between MELI’s company, Advance Entertainment, LLC (“Advance”), and the Production and Management Companies, in which the Production and Management Companies agreed to sell Advance large blocks of tickets to the shows or performances.  In truth and in fact, the Production and Management Companies had not entered into agreements to sell tickets to MELI or Advance.  These fake agreements listed, as authorized representatives entering into the agreements on behalf of the Production and Management Companies, the names of individuals within those organizations, and furthermore contained fraudulent signatures of these individuals.

*                      *                      *

MELI, 43, of New York, New York, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000.  In addition, pursuant to a plea agreement with the Government, MELI agreed to forfeit proceeds of the offense and to pay restitution to the victims of the offense.  MELI is scheduled to be sentenced by Judge Kimba M. Wood on January 31, 2018.   

What can he expect in federal prison? He may do some serious time. Go here...https://www.amazon.com/PRISON-expect-Federal-Bureau-Prisons-ebook/dp/B011GTWLOG