FROM: U.S. JUSTICE DEPARTMENT
Thursday, April 30, 2015
Thirteen Current and Former Law Enforcement Officers and Two Others Indicted for their Alleged Participation in a Drug Trafficking Conspiracy
Thirteen current and former law enforcement officers and two other individuals have been indicted and arrested for allegedly protecting narcotics shipments and cash proceeds during transit along the east coast for what they believed was a large-scale drug trafficking organization that was actually an undercover operation by the FBI.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division made the announcement.
“Corruption in local government – especially involving law enforcement – threatens the social compact that binds our communities together,” said Assistant Attorney General Caldwell. “When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer. That is why the Criminal Division of the Department of Justice and our law enforcement partners in North Carolina and throughout the country are determined to root out corruption, wherever and in whatever form it may be found.”
“The actions by these individuals are particularly troubling due to their current and past affiliation with law enforcement,” said U.S. Attorney Walker. “Their alleged conduct was reprehensible and my office will not tolerate this kind of corruption in our district. I am grateful for the outstanding work of the FBI Special Agents who investigated this case.”
“They vowed to protect and serve, but instead these deputies and correctional officers sold their badges and used their law enforcement positions to line their own pockets,” said Special Agent in Charge Strong. “Public corruption at any level is the number one criminal priority of the FBI and we will work aggressively to protect the public trust.”
All 15 defendants are charged with conspiring to distribute controlled substances and conspiring to use and carry firearms during and in relation to drug trafficking offenses. Other charges against certain defendants include attempted extortion, attempted possession with intent to distribute controlled substances, money laundering, federal programs bribery and use and carry of firearms during and in relation to crimes of violence and drug trafficking offenses.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency and the North Carolina Department of Public Safety, with assistance from the Halifax County Sheriff’s Office. The case is being prosecuted by Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brian S. Meyers of the Eastern District of North Carolina.
Showing posts with label GOVERNMENT CORRUPTION. Show all posts
Showing posts with label GOVERNMENT CORRUPTION. Show all posts
Monday, May 4, 2015
Wednesday, December 17, 2014
HOMELAND SECURITY AGENT RECEIVES PRISON TERM FOR IMPEDING GOVERNMENT CORRUPTION INVESTIGATIONS
FROM: U.S. JUSTICE DEPARTMENT
Monday, December 15, 2014
Former Special Agent in Charge of the Department of Homeland Security's Office of Inspector General Sentenced to More Than Three Years in Prison
A former Special Agent in Charge of the Department of Homeland Security - Office of Inspector General (DHS-OIG) was sentenced to 37 months in prison today for a scheme to falsify records and obstruct an internal DHS-OIG inspection, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. The sentence was imposed by U.S. District Judge Andrew S. Hanen of the Southern District of Texas.
“While leading an office responsible for investigating misconduct at other government agencies, Pedraza sought to impede and obstruct the investigation of his own office,” said Assistant Attorney General Caldwell. “Pedraza’s criminal conduct resulted in the premature closing of criminal cases without resolution, potentially endangering our national security and allowing others to escape justice. We will root out and prosecute corruption wherever it may be found, including within the ranks of federal law enforcement.”
Former DHS-OIG Special-Agent-in-Charge Eugenio Pedraza, 50, of McAllen, Texas, was found guilty following a four-day jury trial on March 14, 2014, of conspiring with three other special agents to falsify criminal investigative reports to impede an internal DHS-OIG inspection and obstruct the underlying criminal investigations. The jury also found Pedraza guilty of five counts of falsifying records.
DHS-OIG is responsible for investigating alleged criminal activity by DHS employees, including corruption by Customs and Border Protection (CBP) and Immigration and Customs Enforcement personnel affecting the integrity of the U.S. borders. Pedraza headed DHS-OIG’s McAllen Field Office (MCA) from January 2009 to January 2012.
According to evidence presented at trial, in September 2011, DHS-OIG conducted an internal inspection of the MCA to evaluate whether the agency’s investigative standards and policies were being followed. In anticipation of the internal inspection, Pedraza and at least three other DHS-OIG agents, including Special Agent Wayne Ball, engaged in a scheme to falsify investigative documents to make it appear that criminal investigations were being conducted in a timely fashion and in accordance with DHS-OIG standard operating procedures. The scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards and policies at the MCA and Pedraza’s failure to properly supervise agents and investigations. Court documents reflect that Pedraza, Ball, and other special agents wrote and signed false criminal investigative reports. Pedraza then approved the reports for inclusion in the official investigative case files.
For example, the evidence at trial showed that, at Pedraza’s direction, a special agent drafted false memoranda of activity (MOAs) to fill gaps of inactivity in a criminal investigation to which he was assigned. The criminal investigation had been initiated in March 2010 and concerned allegations that a CBP officer was assisting the unlawful smuggling of undocumented aliens and narcotics into the United States. Because the MOAs were intended to describe investigative activities that occurred when the drafting agent was either not present at the MCA or not employed by DHS-OIG at all, Pedraza directed the agent to attribute the investigative activity to Ball. Ball then signed and backdated the false MOAs. Pedraza also signed and backdated the false MOAs, which were then placed in the investigation’s case file in advance of the internal inspection. Upon discovery of the falsified reports, the criminal investigation had to be closed without resolution. According to evidence presented at trial, Pedraza similarly directed other special agents to falsify records related to at least four other criminal investigations.
On Jan. 17, 2013, Ball pleaded guilty to one count of conspiring with Pedraza and at least two other special agents to falsify records in federal investigations and obstruct an agency proceeding. Ball is scheduled to be sentenced on Jan. 7, 2015, by U.S. District Judge Hilda G. Tagle of the Southern District of Texas.
This case was investigated by the FBI’s San Antonio Field Office and is being prosecuted by Trial Attorneys Eric Gibson, Brian Kidd and J.P. Cooney of the Criminal Division’s Public Integrity Section.
Monday, December 15, 2014
Former Special Agent in Charge of the Department of Homeland Security's Office of Inspector General Sentenced to More Than Three Years in Prison
A former Special Agent in Charge of the Department of Homeland Security - Office of Inspector General (DHS-OIG) was sentenced to 37 months in prison today for a scheme to falsify records and obstruct an internal DHS-OIG inspection, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office. The sentence was imposed by U.S. District Judge Andrew S. Hanen of the Southern District of Texas.
“While leading an office responsible for investigating misconduct at other government agencies, Pedraza sought to impede and obstruct the investigation of his own office,” said Assistant Attorney General Caldwell. “Pedraza’s criminal conduct resulted in the premature closing of criminal cases without resolution, potentially endangering our national security and allowing others to escape justice. We will root out and prosecute corruption wherever it may be found, including within the ranks of federal law enforcement.”
Former DHS-OIG Special-Agent-in-Charge Eugenio Pedraza, 50, of McAllen, Texas, was found guilty following a four-day jury trial on March 14, 2014, of conspiring with three other special agents to falsify criminal investigative reports to impede an internal DHS-OIG inspection and obstruct the underlying criminal investigations. The jury also found Pedraza guilty of five counts of falsifying records.
DHS-OIG is responsible for investigating alleged criminal activity by DHS employees, including corruption by Customs and Border Protection (CBP) and Immigration and Customs Enforcement personnel affecting the integrity of the U.S. borders. Pedraza headed DHS-OIG’s McAllen Field Office (MCA) from January 2009 to January 2012.
According to evidence presented at trial, in September 2011, DHS-OIG conducted an internal inspection of the MCA to evaluate whether the agency’s investigative standards and policies were being followed. In anticipation of the internal inspection, Pedraza and at least three other DHS-OIG agents, including Special Agent Wayne Ball, engaged in a scheme to falsify investigative documents to make it appear that criminal investigations were being conducted in a timely fashion and in accordance with DHS-OIG standard operating procedures. The scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards and policies at the MCA and Pedraza’s failure to properly supervise agents and investigations. Court documents reflect that Pedraza, Ball, and other special agents wrote and signed false criminal investigative reports. Pedraza then approved the reports for inclusion in the official investigative case files.
For example, the evidence at trial showed that, at Pedraza’s direction, a special agent drafted false memoranda of activity (MOAs) to fill gaps of inactivity in a criminal investigation to which he was assigned. The criminal investigation had been initiated in March 2010 and concerned allegations that a CBP officer was assisting the unlawful smuggling of undocumented aliens and narcotics into the United States. Because the MOAs were intended to describe investigative activities that occurred when the drafting agent was either not present at the MCA or not employed by DHS-OIG at all, Pedraza directed the agent to attribute the investigative activity to Ball. Ball then signed and backdated the false MOAs. Pedraza also signed and backdated the false MOAs, which were then placed in the investigation’s case file in advance of the internal inspection. Upon discovery of the falsified reports, the criminal investigation had to be closed without resolution. According to evidence presented at trial, Pedraza similarly directed other special agents to falsify records related to at least four other criminal investigations.
On Jan. 17, 2013, Ball pleaded guilty to one count of conspiring with Pedraza and at least two other special agents to falsify records in federal investigations and obstruct an agency proceeding. Ball is scheduled to be sentenced on Jan. 7, 2015, by U.S. District Judge Hilda G. Tagle of the Southern District of Texas.
This case was investigated by the FBI’s San Antonio Field Office and is being prosecuted by Trial Attorneys Eric Gibson, Brian Kidd and J.P. Cooney of the Criminal Division’s Public Integrity Section.
Friday, October 10, 2014
2ND VP OF EQUATORIAL GUINEA TO GIVE UP OVER $30 MILLION OF ASSETS PURCHASED WITH CORRUPTION MONEY
FROM: U.S. JUSTICE DEPARTMENT
Friday, October 10, 2014
Second Vice President of Equatorial Guinea Agrees to Relinquish More Than $30 Million of Assets Purchased with Corruption Proceeds
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Director Thomas S. Winkowski of U.S. Immigration and Customs and Enforcement made the announcement after the settlement was signed and lodged with the U.S. District Court for the Central District of California.
“Through relentless embezzlement and extortion, Vice President Nguema Obiang shamelessly looted his government and shook down businesses in his country to support his lavish lifestyle, while many of his fellow citizens lived in extreme poverty,” said Assistant Attorney General Caldwell. “After raking in millions in bribes and kickbacks, Nguema Obiang embarked on a corruption-fueled spending spree in the United States. This settlement forces Nguema Obiang to relinquish assets worth an estimated $30 million, and prevents Nguema Obiang from hiding other stolen money in the United States, fulfilling the goals of our Kleptocracy Asset Recovery Initiative: to deny safe haven to the proceeds of large-scale foreign official corruption and recover those funds for the people harmed by the abuse of office.”
“While this settlement is certainly gratifying for the many investigators and prosecutors who worked tirelessly to bring it to fruition, it is undoubtedly even more rewarding for the people of Equatorial Guinea, knowing that at least some of the money plundered from their country’s coffers is being returned to them,” said Acting ICE Director Winkowski. “ICE remains steadfast in its resolve to combat foreign corruption when the spoils of these crimes come to our shores and we are committed to seeking justice and compensation for the often impoverished victims.”
According to court documents, Nguema Obiang, the son of Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo, received an official government salary of less than $100,000 but used his position and influence as a government minister to amass more than $300 million worth of assets through corruption and money laundering, in violation of both Equatoguinean and U.S. law. Through intermediaries and corporate entities, Nguema Obiang acquired numerous assets in the United States that he is agreeing to relinquish in a combination of forfeiture and divestment to a charity for the benefit of the people of Equatorial Guinea.
Under the terms of the settlement, Nguema Obiang must sell a $30 million mansion located in Malibu, California, a Ferrari automobile and various items of Michael Jackson memorabilia purchased with the proceeds of corruption. Of those proceeds, $20 million will be given to a charitable organization to be used for the benefit of the people of Equatorial Guinea. Another $10.3 million will be forfeited to the United States and will be used for the benefit of the people of Equatorial Guinea to the extent permitted by law.
Under the agreement, Nguema Obiang must also disclose and remove other assets he owns in the United States. Nguema Obiang must also make a $1 million payment to the United States, representing the value of Michael Jackson memorabilia already removed from the United States for disbursement to the charitable organization. The agreement also provides that if certain of Nguema Obiang’s other assets, including a Gulfstream Jet, are ever brought into the United States, they are subject to seizure and forfeiture.
Next week, the parties will request that the court enter appropriate orders to implement and enforce this agreement.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.
The investigation was conducted by ICE, Homeland Security Investigation’s (HSI) Foreign Corruption Investigations Group and the HSI Asset Identification and Removal Group in Miami, with the assistance of the HSI Office of the Special Agent in Charge for Los Angeles, the HSI Attaché Office in Rome, HSI Attaché Office in Madrid, HSI Attaché Office in London and the HSI Attaché Office in Paris. HSI established the FCIG in 2003 to conduct investigations into the laundering of proceeds emanating from foreign public corruption, bribery and embezzlement. The cases are worked jointly with representatives of the victimized foreign governments. The FCIG’s goal is to prevent foreign-derived, ill-gotten gains from entering the U.S. financial infrastructure; to seize assets identified in the U.S.; and to repatriate these funds to the victimized governments. Since the initiative’s launch, HSI has effected 220 seizures involving more than $146 million worth of property and assets.
The case was handled by Trial Attorneys Woo S. Lee, Stephen A. Gibbons, and Della G. Sentilles and Assistant Deputy Chief Daniel Claman of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial assistance from Assistant U.S. Attorney Steven Welk of the Central District of California. The Criminal Division’s Office of International Affairs also provided significant assistance
The department appreciates the extensive assistance provided by the Government of France in this investigation and prosecution.
Monday, October 6, 2014
ARKANSAS STATE OFFICIAL PLEADS GUILTY IN BRIBERY CASE
FROM: U.S. JUSTICE DEPARTMENT
Thursday, October 2, 2014
Former Deputy Director of the Largest State Agency in Arkansas Pleads Guilty to Bribery Scheme
A former deputy director of the Arkansas Department of Human Services (ADHS), a multi-billion dollar state agency, pleaded guilty today for providing official assistance in exchange for bribes from the owner of two mental health companies.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant United States Attorney Patrick C. Harris of the Eastern District of Arkansas made the announcement.
Steven B. Jones, 49, of Marion, Arkansas, pleaded guilty to a two-count information charging him with conspiracy and bribery concerning programs receiving federal funds. A sentencing hearing is scheduled for April 2, 2015, before U.S. District Judge Billy Roy Wilson of the Eastern District of Arkansas.
According to his plea agreement, Jones served as deputy director of ADHS from approximately April 2007 until July 2013. While serving in that capacity, Jones solicited and accepted multiple cash payments and other things of value from the owner of two businesses that provided inpatient and outpatient mental health services to juveniles. This individual provided the cash payments and other things of value to Jones through the use of two intermediaries, a local pastor and a former county probation officer and city councilman.
As part of his plea, Jones admitted that in return for the bribes, he provided official assistance, including providing internal ADHS information about the individual’s businesses. Jones further admitted that he and other members of the conspiracy concealed their dealings by, among other things, holding meetings at restaurants in Memphis, Tennessee, or rural Arkansas, where they would not be easily recognized; funneling the cash payments through the pastor’s church; providing the bribe payments in cash so that the transactions would not be easily traceable; and speaking in code during telephone conversations.
The case was investigated by the FBI’s Little Rock Field Office, and is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Patricia S. Harris and Angela S. Jegley of the Eastern District of Arkansas.
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