FBI

November 17, 2009 -- WASHINGTON -- Attorney General Eric Holder, Treasury Secretary Tim Geithner, Housing and Urban Development (HUD) Secretary Shaun Donovan, and Securities and Exchange Commission (SEC) Chairwoman Mary Schapiro today announced that President Barack Obama has established by Executive Order an interagency Financial Fraud Enforcement Task Force to strengthen efforts to combat financial crime.    » read more »

Schumer: Gaping Holes In Federal Gun Background Checks Allowed Fort Hood Shooter To Purchase Gun Unnoticed By Feds

November 16, 2009 -- U.S. Senator Charles E. Schumer today called on the Department of Justice to require that a red flag be raised when someone who has been the subject of a terrorist inquiry attempts to purchase a gun after reports emerged today that the Fort Hood shooting suspect was able to purchase a gun and pass the background check even though the Joint Terrorism Task Force had reviewed certain communications of the suspect related to a terrorist investigation.    » read more »

November 13, 2009 -- WASHINGTON – Rohullah Farooqi Lodin and Hashmatullah Farooqi were each sentenced today in Alexandria, Va., to four years in prison for their roles in a scheme to offer $1 million in bribes to a U.S. Army contracting official in Afghanistan, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

U.S. District Court Judge Liam O’Grady also sentenced Lodin, 48, from Irvine, Calif., and Farooqi, 38, from New York City, to each serve three years of supervised release following their prison term and ordered each to pay a $30,000 fine. Lodin and Farooqi, both dual Afghan/U.S. citizens, each pleaded guilty on Aug. 7, 2009, to one count of offering to bribe a public official.    » read more »

Sentenced for Bribery and Other Charges

November 13, 2009 -- Former U.S. Congressman William J. Jefferson, 62, of New Orleans, La., was sentenced today to 13 years in prison, followed by three years of supervised release, for using his office to corruptly solicit bribes. Jefferson was also ordered to forfeit more than $470,000.    » read more »

November 12, 2009 -- The Miami Division of the Federal Bureau of Investigation (FBI) and the Miami Field Office of the Internal Revenue Service (IRS) are seeking information from individuals who have invested in the Rothstein Structured Settlement Investment (RSSI) or from individuals who have information that would be helpful to the investigation. To facilitate information gathering, the FBI has established a dedicated e-mail address and an informational telephone line 1-800-CALL-FBI, "Rothstein Option."

Details of the investigation cannot be discussed at this time, as the investigation is ongoing. However, the FBI and IRS are seeking to identify victims and to obtain any information to determine the extent of any potential fraud.    » read more »

November 10, 2009 -- PREET BHARARA, the United States Attorney for the Southern District of New York, announced today that MICHAEL KOULOUROUDIS, an accomplice of a former UBS investment banker, pleaded guilty before United States District Judge PAUL G. GARDEPHE on charges of conspiracy and securities fraud as a result of trading based on inside information stolen from UBS.

According to the Complaint and Superseding Indictment previously filed in this case, and statements made during KOULOUROUDIS's guilty plea:    » read more »

November 11, 2009 -- Frederic A. Bourke Jr., of Greenwich, Conn., was sentenced today in U.S. District Court in Manhattan to one year and one day in prison.

Following a six-week trial, Bourke, 63, was found guilty on July 10, 2009, of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and related prohibitions, and of making false statements to the FBI. The FCPA makes it a crime to pay or offer to pay foreign government officials in order to obtain or retain business. In addition to the prison term, U.S. District Judge Shira A. Scheindlin ordered Bourke to pay a $1 million fine and serve three years of supervised release following the prison term.    » read more »

November 11, 2009 -- Washington D.C. -- The FBI continues to work closely with the Department of the Army in the joint, ongoing investigation into the tragic events that occurred last Thursday at Fort Hood. Our thoughts and prayers continue to be with the victims and their families.

With respect to the investigation—the Army Criminal Investigative Division is leading a coordinated criminal investigation with the support of the FBI and other components of the Department of Justice and the Texas Rangers. The investigation is in its early stages, and the information we can provide now is limited.    » read more »

November 10, 2009 -- A South Korean businessman was sentenced today in U.S. District Court for the Northern District of Texas to five years in prison for his role in a bribery conspiracy involving a $206 million telecommunications contract and employees of the Army and Air Force Exchange Service (AAFES).

In addition to the prison term, U.S. District Judge Ed Kinkeade also ordered Gi-Hwan Jeong to pay a $50,000 fine. Jeong pleaded guilty on June 11, 2009, to a five-count indictment, charging him with one count of conspiracy, two counts of honest services wire fraud and two counts of bribery.    » read more »

November 10, 2009 -- Washington D.C. -- The following is in response to the Department of Justice’s Office of the Inspector General (OIG) report, “Sentinel Audit V: Status of the FBI’s Case Management System.”

“The FBI appreciates the Inspector General’s review of the FBI’s Sentinel Program progress and recognition of the FBI’s efforts to resolve concerns identified in previous Sentinel audits. As the OIG notes, the FBI estimates that Sentinel is scheduled to deliver full capability within the $451 million budget in the fall of 2010. The FBI already has implemented measures to resolve all six recommendations identified in this report and has successfully closed 30 of the 31 recommendations from the four prior OIG Sentinel audits.    » read more »

November 3, 2009 -- PREET BHARARA, the United States Attorney for the Southern District of New York, JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation ("FBI"), and PATRICIA J. HAYNES, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service ("IRS"), announced today that DAVID G. FRIEHLING, the accountant for Bernard L. Madoff Investment Securities, LLC ("BLMIS"), pleaded guilty in Manhattan federal court before United States District Judge ALVIN K. HELLERSTEIN.    » read more »

November 4, 2009 -- TAMPA -- United States Attorney A. Brian Albritton today announced the results of a nine-month-long Mortgage Fraud Surge investigation that has resulted in charges against more than 100 defendants and involves allegations concerning more than $400 million in loans procured by fraud and more than 700 properties. U.S. Attorney Albritton is holding events throughout the district this week to highlight the announcement.

There are currently mortgage fraud-related charges pending against approximately 500 defendants in federal mortgage fraud cases around the nation. The cases concern both mortgage schemes designed to defraud mortgage lenders and “foreclosure rescue schemes” which prey on distressed homeowners.    » read more »

November 3, 2009 -- As part of a continuing effort to identify the latest cyber crime trends and warn the public, the FBI today released the following information:

Within the last several months, the FBI has seen a significant increase in fraud involving the exploitation of valid online banking credentials belonging to small and medium businesses, municipal governments, and school districts. In a typical scenario, the targeted entity receives a “spear phishing” e-mail which either contains an infected attachment, or directs the recipient to an infected website.    » read more »

October 28, 2009 -- WASHINGTON -- Bill J. Allen and Richard L. Smith were each sentenced in separate hearings today for their participation in a corruption scheme in which they provided approximately $395,000 in corrupt payments to public officials from the state of Alaska, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. Allen and Smith were sentenced in U.S. District Court for the District of Alaska by U.S. District Court Judge John W. Sedwick.    » read more »

October 27, 2009 -- Robert J. Cabelly, 61, of Washington, D.C., has been indicted in the District of Columbia in an eight-count indictment charging him with conspiracy to violate the Sudanese sanctions regulations and to act as an unregistered agent of a foreign power, four counts of violating the Sudanese sanctions regulations, as well as one count apiece of money laundering, passport fraud and making false statements.    » read more »