CHICAGO CLEAN-UP MOVE AGAINST ORGANIZED CRIME

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, August 2, 2012
Chicago Police Officer and Three Members of the Almighty Latin Kings Nation Plead Guilty to a Racketeering Conspiracy and Other Related Charges

WASHINGTON – A Chicago police officer and three members of the Almighty Latin Kings Nation pleaded guilty to a racketeering conspiracy and other related charges in a superseding indictment involving alleged members or associates of the Latin Kings, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.

Chicago police officer Alex Guerrero, 42, pleaded guilty today before Judge Rudy Lozano of the U.S. District Court for the Northern District of Indiana, in Hammond, Ind. Guerrero pleaded guilty to counts one, two, 14 and 15 of the third superseding indictment charging him with conspiracy to participate in racketeering activity; conspiracy to possess with intent to distribute and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana; interference with commerce by threats or violence; and use and carrying of a firearm during and in relation to crimes of violence and drug trafficking. As part of his plea agreement, Guerrero acknowledges that a 19-year prison sentence is appropriate.

The third superseding indictment, which charged 21 defendants, was returned by a federal grand jury in the Northern District of Indiana on Nov. 16, 2011, and was unsealed on Nov. 18, 2011.

According to the third superseding indictment, the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States, including to Texas. The Latin Kings is a well organized street gang that has specific leadership and is comprised of regions that include multiple chapters.

On July 31, 2012, Brandon Clay, 26, of Chicago, and Antonio Gudino, 30, of East Chicago, each pleaded guilty before Judge Lozano to count one of the third superseding indictment charging them with conspiracy to participate in racketeering activity. As part of their plea agreements, Clay and Gudino have each acknowledged that a prison sentence is appropriate – 30 years for Clay and 10 years for Gudino. On July 30, 2012, Jason Ortiz, 30, of Chicago pleaded guilty before the same judge and to the same count as Clay and Gudino. As part of his plea agreement, Ortiz acknowledges that a 25-year prison sentence is appropriate.

Guerrero admitted in the plea agreement that he is responsible for possession of and distribution of 150 kilograms or more of cocaine as alleged in count two. He also admitted in the plea agreement that he physically restrained the victim in the course of the offense alleged in count 14. Guerrero admitted that he abused a position of public trust in a manner that significantly facilitated the commission or concealment of the offense.

The following defendants were charged in the third superseding indictment:
Alexander Vargas, 34, aka "Pacman," of Highland, Ind.;
Sisto Bernal, 46, aka "Cisco" and "Shug," of Chicago;
Jason Ortiz, 30, aka "Creeper," of Chicago;
Brandon Clay, 26, aka "Cheddar," "Swiss," "Slick," of Chicago;
Martin Anaya, 41, aka "Left," of Chicago;
Ivan Quiroz, 30, of Posen, Ill.;
Hiluterio Chavez, 41, aka "Tails," and "Zeus," of Chicago;
Dante Reyes, 35, aka "DK," of Mission, Texas;
Sergio Robles, 24, aka "Checko," of Hammond, Ind.;
Emiliano Esparza, 40, aka "Ken Milleano," "Kent," and "Double G," of Chicago;
Paulino Salazar, 30, aka "Chino," of Chicago;
Santiago Gudino, 28, aka "Creeper," of Hammond;
Gabriel Jalomos, 25, aka "Sneaky," of Chicago;
Oscar Gonzalez, 22, aka "Puppet," of Hammond;
David Lira, 38, aka "Flaco," of Lansing, Ill.;
Victor Meza Jr., 23, aka "Shadow," of Hammond;
Antonio Gudino, 30, aka "Chronic," of Indiana, Ind.;
Bianca Fernandez, 23, of Chicago;
Serina Arambula, 23 of Chicago;
Alex Guerrero, 42, of Chicago; and
Antonio C. Martinez Jr., 41, of Chicago.
Jose Zambrano, 32, aka "Speedy," aka "Bird," aka "Big Greasy," of Sauk Village, Ill., and Jermaine Ellis, 23, aka "J-Dub," "Donnie Brosco," "Shorty" of Chicago, were both charged in the first indictment returned on June 17, 2010, and unsealed on June 29, 2010.

As alleged in the third superseding indictment, the Latin Kings enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault and threats against those who violate the rules or pose a threat to the Latin Kings. Members are required to follow the orders of higher-ranking members, including taking on assignments often referred to as "missions."

A total of 23 members and associates have been indicted in this case. Of these defendants, 17 have pleaded guilty and are awaiting sentencing. There are three defendants scheduled for trial on Sept. 10, 2012, before Judge Lozano.

There remains one fugitive in this case, Paulino Salizar, 30, aka "Chino," from Chicago.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Chicago Police Department; the East Chicago Police Department; the Drug Enforcement Administration; the FBI; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; the Houston Police Department; Immigration and Customs Enforcement-Department of Homeland Security; and the National Gang Intelligence Center.

The case is being prosecuted by Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and David J. Nozick of the U.S. Attorney’s Office for the Northern District of Indiana. Andrew Porter of the U.S. Attorney’s Office for the Northern District of Illinois provided significant assistance.

The third superseding indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Department of Defense Armed with Science Update

U.S. Department of Defense Armed with Science Update

USS ENTERPRISE (CVN 65) ON FINAL DEPLOYMENT

120714-N-AP176-079
ARABIAN SEA (July 14, 2012) An aircraft takes off from the flight deck of aircraft carrier USS Enterprise (CVN 65). Enterprise is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions as part of Operation Enduring Freedom. (U.S. Navy photo by Mass Communication Specialist 3rd Class Jeff Atherton/Released)

FROM: U.S. NAVY, USS ENTERPRISE
Records Reveal Enterprise is on 25th DeploymentBy USS Enterprise Public Affairs
USS ENTERPRISE, At Sea (NNS) -- Aug. 3, marks the 50th anniversary of the first deployment of USS Enterprise (CVN 65), and historians recently discovered the actual number of deployments is higher than commonly reported.

Now as the Big E continues her final deployment, scores of Sailors and historians are reviewing and double checking all aspects of the carrier's storied career.

The number of arrested landings, historic milestones, major evolutions, and, yes, even number of deployments are being checked and double checked for accuracy. As the Navy entered into the digital age, many of the historical documents associated with the carrier were made available online.

Cases in point are the command history reports, which outline the milestones and accomplishments that occur over each calendar year. Research into these and other documents have led researchers to a startling new discovery.

Tracing the number of deployments that Enterprise has completed would seem like a relatively easy task - simply tally up the number from the command history reports. Unfortunately, a few format changes over the years made for a task a bit more challenging than expected.

According to retired Navy captain Todd Creekman, executive director of the Naval Historical Foundation in Washington D.C., researchers at the foundation have unearthed some surprising news.

"In reviewing Enterprise's operational history, we made an interesting discovery" Creekman said. "All the current reports say that the ship is on her 22nd deployment. Actually, it is on the 25th deployment."

Research from the Naval Historical and Heritage Command's (NHHC) online database and other reports reveal that the carrier has "been there, done that" more often than commonly thought.

"We've run it by NHHC historian Mark Evans and it matches his data," Creekman said.

As researchers worked to piece together what happened, it appeared that a focus on the ship's WestPac deployments led to the error.

In a number of accounts, including command history reports, a particular deployment would be listed, for example, as "the tenth WestPac deployment," which would be accurate counting from the ship's first 1965-66 epic "first nuclear carrier in combat" deployment to the Vietnam War.

The carrier completed its fourteenth and last sequential WestPac in 1990, before entering Newport News Shipyard in 1990 for the ship's third refueling.

Following the final refueling, Enterprise made Norfolk, Va., her homeport once again and only made deployments to the Mediterranean Sea, Indian Ocean and Arabian Gulf.

"The problem began when later history reports used the same number sequence but dropped "WestPac" from the description," Evans explained. "The refueling reports failed to re-account for the three deployments Big E made to the Mediterranean Sea between 1962-1964."

One example is the command history report from the ship's historic 2001 deployment, which reads: "On April 25, the Enterprise Navigation Department set Special Sea and Anchor Detail to begin a historic 17th deployment for operations in the Mediterranean Sea, Arabian Gulf and North Arabian Sea."

This was, in fact, the ship's 20th deployment.

As the 51-year-old carrier steams along today on its 25th and final deployment, researchers continue to verify and cross reference important facts and milestones to ensure accuracy.

"It's already exciting to be a part of Enterprise's final deployment, but each day we are discovering more and more about the rich history of which we are a part," said Capt. William C. Hamilton, Enterprise's commanding officer. "We estimate over 200,000 Sailors and Marines have served aboard the Big E, and every one has helped in making her the legend we serve aboard today. We are a very, very proud crew."

The eighth ship to bear the name Enterprise is scheduled to inactivate from service on December 1, 2012, in a Ceremony in Norfolk, Va., in preparation for her defueling and decommissioning in 2016.

SIMULATOR SAVES MILLIONS

FROM: U.S. AIR FORCE
A student pilot enrolled in Undergraduate Remotely Piloted Aircraft Training at the 558th Flying Training Squadron, Joint Base San Antonio-Randolph, Texas, takes off in a new T-6 Texan II simulator July 10. The 558 FTS purchased 10 new simulators for $3 million, which saved the squadron millions of dollar when compared to a traditional T-6 simulator, which cost $3 million each. : . (U.S. Air Force photo/Staff Sgt. Clinton Atkins)


Innovative simulator solution enhances training, saves millions of dollars

by Nathan Simmons
Air Education and Training Command Public Affairs

7/31/2012 - JOINT BASE SAN ANTONIO-RANDOLPH, Texas (AFNS) -- A significant milestone for remotely piloted aircraft was ushered in July 10, with the first student sortie in an innovative T-6 Texan II simulator.

The new setup has dramatically increased the ability to train remotely piloted aircraft pilots, and the ingenuity behind the new simulator saves the Air Force millions of dollars. Completing the same training using traditional T-6 simulators, which cost about $3 million each, would have cost upward of $27 million total, which doesn't count the price of a new building it would require to house them.

Training RPA pilots is increasingly critical to mission success, as they are relied on heavily by our armed forces.

"RPAs are the most requested asset in the combat theater," said Maj. Gen. Timothy Zadalis, AETC Director of Intelligence, Operations and Nuclear Integration. "This capability continues to save lives and provide support down range."

When Air Force Chief of Staff Gen. Norton Schwartz solidified the RPA career field in May 2010, overloading the training system with new aviators became a significant challenge. Robert Englehart, Deputy Chief of Air Education and Training Command's RPA Training Branch, said that with the increase in demand for RPA pilots came the need to expand the capability to train them, but expanding wasn't as simple as it sounds.

"We had to be creative in our solution to this problem, as the increase in need for RPA pilots was paired with shrinking defense budgets," Englehart said. "By staying with the T-6, AETC is able to use courseware and support materials the Air Force has already paid for. AETC really stepped up and found a low-cost solution relatively quickly."

"These simulators use high-end desktop computers with powerful graphics cards to display the T-6 cockpit and instrument displays," said Lt. Col. Scott Cerone, 558th Flying Training Squadron commander. "Real-world surroundings are projected from three high-powered projectors to give the pilots a 180-degree view of the world outside their cockpits."

Another major payoff results from the significantly lower cost of replacing these components compared to those in the traditional simulator. Significant savings are also found in the time and cost of training, as roughly $515,000 is spent to train a traditional pilot versus around $33,000 to train an RPA pilot.

Traditional pilots undergo 48 weeks of training, whereas RPA pilots train in a rigorous 22 week program before they are sent to their units to train on specific aircraft.

Undergraduate RPA Training is composed of three courses. The first course is an initial flight screening in which RPA pilots learn the basics of commanding an aircraft. They then come to the 558th Flying Training Squadron at Randolph AFB, the single source of all Air Force URT for the RPA instrument qualification course. They then move on to an RPA fundamentals course, in which they get grounding in combat operations on a simplified MQ-9 Reaper simulator.

In the first two courses, pilots learn to use the radio, work with air traffic control, learn instrument procedures, situational awareness, Airmanship and all the pilot-in-command skills they need to fly. When traditional pilots graduate from training, they spend some time as a co-pilot or wingman, where they are able to learn under the mentorship of a more experienced aviator. RPA pilots do not get this experience, and thus are expected to demonstrate their pilot-in-command skills very quickly.

This tiered approach to training was beta tested in 2009 before Schwartz formalized the program in 2010. In the 2009-2010 time frame, the Air Force produced roughly 45 RPA pilots. In fiscal year 2013, the 558th FTS plans to produce around 165.

"Dubbed 'the eyes in the sky', these machines and the pilots who operate them are essential, constantly watching our troops on the ground every minute of every day and providing reconnaissance and strike support when needed," Zadalis said.

　

BIPARTISAN TRADE LEGISLATION PASSED IN THE U.S. HOUSE OF REPRESENTATIVES

FROM:  HOUSE COMMITTEE ON WAYS AND MEANS
CHAIRMAN DAVE CAMP

House Passes Bipartisan Legislation to Address Africa Preferences, CAFTA-DR Technical Textile Changes, and Burma Sanctions
Thursday, August 02, 2012
Washington, DC - Today, the House passed a package of bipartisan trade legislation that: (1) extends the African Growth Opportunity Act (AGOA) third-country fabric provisions through 2015 and adds South Sudan as an eligible beneficiary country under AGOA; (2) implements non-controversial technical corrections and modifications to the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR); and (3) renews Presidential authority to apply import sanctions against Burma.

This bipartisan legislation passed by voice vote. Additional background on H.R. 5986 is available here.

Chairman Camp said: "This important legislation will strengthen U.S. global competitiveness and trade leadership. Today’s vote to extend certain AGOA provisions and add South Sudan as an eligible beneficiary demonstrates the bipartisan dedication of this Congress to sub-Saharan Africa and reaffirms the success of the AGOA program. The technical corrections to CAFTA-DR encourage deeper integration within the region, promote U.S. exports, and support U.S. jobs. These two provisions will strengthen our ties with U.S. trading partners in Africa and the Western Hemisphere and support U.S. jobs and the U.S. economy.

"Today’s legislation also extends the President’s authority to maintain the import ban on Burmese products for three years and authorizes the actual imposition of import sanctions for one year. I recognize the encouraging developments in Burma over the past months. Nevertheless, in 2003, Congress set out specific goals and benchmarks in the Burmese Freedom and Democracy Act, and I encourage the Burmese government to continue to address the concerns that led to the passage of the law. I also urge the Burmese government to vigorously pursue further reforms, economic growth, and peaceful, inclusive governance that benefit all the Burmese people."

Trade Subcommittee Chairman Brady said: "The strong bipartisan vote on H.R. 5986 re-affirms our strong trade and investment ties with sub-Saharan Africa and ensures a better-integrated textile supply chain in the Americas. These actions will support well-paying U.S. jobs. The legislation also reauthorizes the import ban on Burmese products. While I believe the Burmese government has taken sizeable steps forward in recent months, the political and economic reforms taken must continue and intensify to ensure that all citizens of Burma may be free, have a fully democratically-elected government, and enjoy the fruits of broad-based economic growth."

WHERE IS THE SPENT U.S. NUCLEAR FUEL?

Photo Credit:  U.S. DOD.
FROM: U.S. NUCLEAR REGULATORY COMMISSION

Spent Fuel Storage in Pools and Dry Casks
Key Points

All U.S. nuclear power plants store spent nuclear fuel in "spent fuel pools." These pools are robust constructions made of reinforced concrete several feet thick, with steel liners. The water is typically about 40 feet deep, and serves both to shield the radiation and cool the rods.

As the pools near capacity, utilities move some of the older spent fuel into "dry cask" storage. Fuel is typically cooled at least 5 years in the pool before transfer to cask. NRC has authorized transfer as early as 3 years; the industry norm is about 10 years.

The NRC believes spent fuel pools and dry casks both provide adequate protection of the public health and safety and the environment. Therefore there is no pressing safety or security reason to mandate earlier transfer of fuel from pool to cask.

After the September 11, 2001, terrorist attacks, the NRC issued orders to plant operators requiring several measures aimed at mitigating the effects of a large fire, explosion, or accident that damages a spent fuel pool. These were meant to deal with the aftermath of a terrorist attack or plane crash; however, they would also be effective in responding to natural phenomena such as tornadoes, earthquakes or tsunami. These mitigating measures include:

Controlling the configuration of fuel assemblies in the pool to enhance the ability to keep the fuel cool and recover from damage to the pool.
Establishing emergency spent fuel cooling capability.
Staging emergency response equipment nearby so it can be deployed quickly
According to the Congressional Research Service (using NEI data), there were 62,683 metric tons of commercial spent fuel accumulated in the United States as of the end of 2009.
Of that total, 48,818 metric tons – or about 78 percent – were in pools.
13,856 metric tons – or about 22 percent – were stored in dry casks.
The total increases by 2,000 to 2,400 tons annually

POST 9/11 UNEMPLOYMENT CONTINUES TO FALL

FROM: VETERANS AFFAIRS "VANTAGE POINT"
Post-9/11 Veteran Unemployment Rate Still Falling; At 8.9 Percent in JulyAugust 3, 2012
 by Brandon Friedman
　

On Friday, the Bureau of Labor Statistics released Veteran unemployment data for the month of July. While the unemployment rate for all Veterans fell to 6.9 percent, the unemployment rate for Iraq and Afghanistan-era Veterans (or Gulf War II-era Veterans) fell more than half a percentage point to 8.9 percent. The steadier 12-month moving average also fell to 10.4 percent—the lowest figure we’ve seen since 2009.

While much remains to be done, since November 2011, post-9/11 Veterans have experienced the lowest unemployment rate in any combined eight-month period since 2008—with the rate reaching single digits in five of those months. Additionally, the trend over the past 31 months—since January 2010—remains downward for America’s most recent Veterans.

Month-to-month unemployment rate figures for this demographic are fairly volatile, but the long-term trend has shown a consistent decline over more than two and a half years—a strong sign of recovery following the worst economic recession since The Great Depression.

All that said, while we’re heartened that the unemployment rate among younger Veterans has fallen over the long term, too many returning Veterans still can’t find meaningful work.

That’s why VA is collaborating with the White House and the Chamber of Commerce on
hiring fairs across the country through the "Hiring Our Heroes" Program. It’s also why we’re urging Veterans to prepare themselves for the job market by taking advantage of programs like the Post-9/11 GI Bill and the Veterans Retraining and Assistance Program (VRAP).

If anything, today’s positive figure reminds us that there’s still much work to be done. VA, in conjunction with the White House, remains committed to ensuring that the unemployment rate for all Veterans continues its downward path.

AFSPC Milestone: AF Frequency Management Agency Realignment

AFSPC Milestone: AF Frequency Management Agency Realignment

FORMER SUPERVISOR OF ROYAL OAK, MICHIGAN SENTENCED FOR VIOLATING CLEAN AIR ACT

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
Supervisor of Michigan Town Sentenced to Three Years in Prison
WASHINGTON (August 3, 2012) - William Morgan, the former supervisor of Royal Oak Township, a suburb of Detroit, was sentenced in federal court to three years in prison. Mr. Morgan had previously entered a guilty plea to charges that he conspired to defraud the U.S. Department of Housing and Urban Development (HUD), violate the Clean Air Act’s asbestos requirements, and commit bribery. Asbestos is a mineral fiber that has been used commonly in a variety of building construction materials. When asbestos-containing materials are damaged or disturbed by repair, remodeling or demolition activities, microscopic fibers become airborne and can be inhaled into the lungs, where they can cause serious health problems.

"It is reprehensible that a public official made asbestos abatement decisions based on a bribe, not on what was needed to protect the health of the community," said Randall Ashe, special agent in charge of EPA’s criminal enforcement program in Michigan. "The sentence shows that government officials who attempt to line their pockets rather than carry out their responsibilities honestly will be prosecuted to the full extent to the law."

"Any public official, in city or suburb, who works to enrich himself at the expense of the public will be detected and prosecuted," U.S. Attorney Barbara L. McQuade said. "It is particularly disturbing when an official not only takes bribes but also endangers community health and the environment by allowing the bribes to influence abatement decisions."

Morgan’s criminal conduct involved the awarding of a contract and distribution of federal funds that were intended to be used by communities for the improvement of blighted areas by removing dilapidated buildings. The funding was received through HUD’s Neighborhood Stabilization Program (NSP). Morgan, in addition to being Township supervisor, was also Royal Oak’s coordinator for NSP.

Prior to the awarding of the contract, Morgan had received a $10,000 bribe from Sureguard/PBM, one of the companies that submitted a bid for the demolition and asbestos removal of an abandoned theater on Eight Mile road. In return for the bribe, Morgan attempted to steer the contract to Sureguard/PBM. Despite Morgan’s efforts, Royal Oak’s Board of Supervisors awarded the contract to another company, which had submitted a lower bid.

During the demolition process, Morgan asked for and received cash payments of $500 and $1,000 from the owner of the company that had won the contract. Morgan received these payments under the belief that they were in return for his approval of a change order covering the asbestos abatement that fraudulently inflated the cost of the work.

One of Morgan’s co-conspirators, Terrance Parker, received a sentence of 21 months. Two other co-conspirators, Kendrick Covington and Marcus Brown have yet to be sentenced.

The case was investigated by special agents of the Federal Bureau of Investigation (FBI), HUD’s Office of the Inspector General and EPA’s Criminal Investigation Division.

MONTANA WILDFIRE FULL CONTAINMENT EXPECTED BY AUGUST 6

FROM: U.S. FISH AND WILDLIFE SERVICE
A wildfire started by lightning on July 31 has spread to nearly 9,500 acres of timber, grass, and sagebrush on the Charles M. Russell National Wildlife Refuge in central Montana. The historic Jim Wells cabin escaped damage, but two horse corrals on the property were burned. Fifteen U.S. Fish and Wildlife Service firefighters and 9 personnel from partner agencies been working to contain the blaze, named the Wells Fire. The fire is expected to spread, as it is confined between refuge roads and the Missouri River. The incident management team has accomplished 30% containment and estimates full containment by August 6.

MEN'S EPEE FENCER INDIVIDUAL BRONZE-MEDAL MATCH

FROM: U.S. AIR FORCE
U.S. Air Force fencer Capt. Seth Kelsey loses the Olympic men's epee individual bronze-medal match, 12-11, to Korea's Jinsun Jung in sudden-death overtime on Aug. 1 at the ExCel South Arena in London. (U.S. Army photo/Tim Hipps)

AF Reservist finishes 4th in 2012 Summer Olympics
8/2/2012 - London (AFNS) -- An Air Force Reserve captain from Colorado finished fourth during the fencing competition at the 2012 London Olympics August 1.

Air Force Reserve Capt. Seth Kelsey earned the best finish since 1956 for a U.S. men's individual epee fencer at the Olympic Games. Kelsey is a logistics officer with the 310th Force Support Squadron at Buckley Air Force Base, Colo.

"I've always been disappointed in my previous Olympic performances," said Kelsey, about his fourth place result. "But today I beat three great guys. I had one of the best performances for U.S. men's epee in as long as I can remember. I felt like I put in a ton of hard work and won some tough bouts. I would have loved to have brought home a medal, but I felt like I gave myself the best possible shot I was going to have."

Kelsey added about his two overtime bouts in the medals rounds, "You've gotta take your chances. You win some, you lose some."

He said that when the bronze medal bout went into sudden death overtime, "I asked the guy if he wanted to go one touch and he said yes. He had got that touch earlier and I thought I was far enough away, but I wasn't."

Kelsey said about the next summer Olympics in Rio, "My plans right now are to stay, go for Rio, try and qualify for the team and then go for a medal in individual and take a team medal as well."

As for the Kelsey family, he said, "They were cheering their heads off. I couldn't have asked for a more exuberant excited family to be here. They were super loud and super excited for me and I'm proud to do so well for them."


　

ALABAMA REAL ESTATE INVESTOR PLEADS GUILTY TO CONSPIRACIES TO

FROM: U.S. DEPARTMENT OF JUSTICEWASHINGTON — An Alabama real estate investor pleaded guilty today for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in southern Alabama, the Department of Justice announced.

Charges were filed on June 25, 2012, in the U.S. District Court for the Southern District of Alabama in Mobile, Ala., against David R. Bradley. Bradley was charged with one count of bid rigging and one count of conspiracy to commit mail fraud. According to the plea agreement, Bradley has agreed to cooperate with the department’s ongoing investigation.

According to court documents, Bradley conspired with others not to bid against one another at public real estate foreclosure auctions in southern Alabama. After a designated bidder bought a property at the public auctions, which typically take place at the county courthouse, the conspirators would generally hold a secret, second auction, at which each participant would bid the amount above the public auction price he or she was willing to pay. The highest bidder at the secret, second auction won the property.

Bradley was also charged with conspiring to use the U.S. mail to carry out a scheme to acquire title to rigged foreclosure properties sold at public auctions at artificially suppressed prices, to make and receive payoffs to co-conspirators and to cause financial institutions, homeowners and others with a legal interest in rigged foreclosure properties to receive less than the competitive price for the properties. Bradley participated in the bid-rigging and mail fraud conspiracies from as early as June 2003 until at least September 2008.

"By first rigging the public auctions, then bidding amongst themselves in secret afterwards, the conspirators illegally profited at the expense of distressed homeowners," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s Criminal Enforcement Program. "This ongoing investigation into real estate foreclosure auctions underscores the division’s commitment to protecting competition in real estate markets around the country."

FBI Special Agent in Charge of the Mobile FBI Office Stephen E. Richardson re-affirmed his commitment to pursuing these complex economic investigations, stating, "This investigation has sent a strong message to the community at large, and the real estate community specifically, that abuses within the real estate industry will not be tolerated. Fraud related to home mortgage investments can have financial implications both locally and nationally, and the integrity of the system must be vigilantly maintained."

Including today’s plea, to date, six individuals—Harold H. Buchman, Allen K. French, Bobby Threlkeld Jr., Steven J. Cox, Lawrence B. Stacy and Bradley—and one company—M & B Builders LLC— have pleaded guilty in the U.S. District Court for the Southern District of Alabama in connection with the investigation. Additionally, on June 28, 2012, real estate investors Robert M. Brannon and Jason R. Brannon, and their company, J & R Properties LLC, were indicted with participating in bid rigging and conspiracy to commit mail fraud at public real estate auctions in southern Alabama.

Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. Each count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine in an amount equal to the greatest of $250,000, twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime by the conspirators.

The investigation into fraud and bid rigging at certain real estate foreclosure auctions in southern Alabama is being conducted by the Antitrust Division’s Atlanta Field Office and the FBI’s Mobile Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Alabama.

Today’s charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.