FBI’s Top Ten News Stories for the Week Ending February 12, 2010

Washington, D.C. February 12, 2010

FBI National Press Office (202) 324-3691

Washington Field/Richmond: Virginia Resident Pleads Guilty to Attempting to Bribe Former Panamanian Government Officials

John W. Warwick pleaded guilty to a one-count indictment charging him with conspiring to make corrupt payments to foreign government officials in Panama for the purpose of securing business for Ports Engineering Consultants Corporation in violation of the Foreign Corrupt Practices Act. Full Story
New York: More Charges Filed in Largest Hedge Fund Insider Trading Case in History

Additional charges were filed against Raj Rajaratnam and Danielle Chiesi in a 19-count superseding indictment involving conspiracy and securities fraud crimes stemming from their alleged involvement in the largest hedge fund insider trading case in history. Rajaratnam was the managing member of Galleon Management LLC, and a portfolio manager for Galleon Technology Offshore Ltd., and certain accounts of Galleon Diversified Fund Ltd. Chiesi worked for New Castle Partners, formerly the equity hedge fund group of Bear Stearns Asset Management Inc. Full Story
Miami: Hawaii Man Charged with Sex Trafficking of a Minor over Super Bowl Weekend

Fred Quinton Collins, of Hawaii, was charged in a criminal complaint with transporting and causing a minor to engage in commercial sex acts. If convicted, Collins faces a minimum sentence of 10 years' imprisonment and a maximum sentence life imprisonment. Full Story
San Francisco: Sweden Accepts Request for Transfer of Prosecution in Case Involving Swedish National Charged with Hacking and Trade Secret Theft

The Kingdom of Sweden accepted the request to transfer the prosecution of Philip Gabriel Pettersson, aka “Stakkato.” Pettersson, a Swedish national, was indicted on five counts involving intrusion and trade secret theft charges involving Cisco Systems and the National Aeronautics and Space Administration. Full Story
Newark: Former New Jersey Assemblyman Indicted for Accepting Cash Bribes

Former New Jersey Assemblyman L. Harvey Smith was indicted in connection with his acceptance of two corrupt cash payments totaling $15,000 in exchange for his official assistance on real estate development matters in Jersey City. Full Story
Los Angeles: Former Hospital Executive Pleads Guilty to Paying Kickbacks in Scheme

The former chief financial officer of Tustin Hospital and Medical Center pleaded guilty to paying illegal kickbacks for patients who were recruited from the “Skid Row” area of Los Angeles. Vincent Rubio admitted paying illegal kickbacks to “marketers” who recruited homeless persons from Los Angeles’ Skid Row and had them transported to Tustin Hospital. Full Story
New York: Investment Advisor Who Ran a $45 Million Ponzi Scheme Sentenced to Prison

Edward T. Stein, an investment advisor based in Roslyn, New York, was sentenced to nine years' imprisonment for securities fraud and wire fraud. On June 22, 2009, Stein pleaded guilty to operating a Ponzi scheme that caused more than $45 million in losses to approximately 100 investors. He induced investors to purchase interests in several funds and partnerships that he controlled between 1998 and the date of his arrest in April 2009. Full Story
Los Angeles: Man Who Embezzled More Than $800,000 from Credit Union Sentenced

Milton W. Callan, a former vice president of Lockheed Federal Credit Union, was sentenced to 41 months in federal prison and ordered to pay full restitution for engaging in a scheme to embezzle from the credit union. Full Story
Miami: State Corrections Officers and Others Charged in Drug Trafficking Scheme

Sixteen people were charged in connection with a long-term undercover corruption investigation involving Florida state prison guards. The charges stem from an investigation begun at the request of the Florida Department of Corrections into alleged smuggling of contraband into Glades Correctional Institution by state employees. Full Story
Kansas City: Richmond Man Indicted for Falsely Claiming He Earned Military Medals

Timothy James Watkins of Richmond was indicted by a federal grand jury for falsely claiming that he was awarded a Purple Heart and a Silver Star for his military service in Grenada. Watkins allegedly purchased a Purple Heart medal and a Silver Star medal from a pawn shop in the Kansas City, Mo., metropolitan area and falsely claimed that both medals were awarded for his military service. Full Story

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FBI’s Top Ten News Stories for the Week Ending February 12, 2010