FBI’s Top Ten News Stories for the Week Ending January 22, 2010

Washington, D.C. January 22, 2010

FBI Headquarters: Response to Inspector General’s Review of FBI’s Use of Exigent Letters

The Department of Justice’s Office of the Inspector General (OIG) released its report on the FBI’s use of exigent letters during the time period of 2002 to 2006. The report expands on the OIG’s 2007 findings regarding a limited and discontinued FBI practice wherein exigent letters, or other informal requests for telephone records, were made to obtain telephone toll billing records.

FBI Headquarters: National Center for Disaster Fraud to Coordinate Haitian Fraud Complaints

The FBI and the National Center for Disaster Fraud established a telephone hotline to report suspected Haitian earthquake relief fraud. The number is (866) 720-5721. The phone line is staffed by a live operator 24 hours a day, seven days a week. You can also e-mail information directly to disaster@leo.gov.

Washington Field: Twenty-Two Executives and Employees of Military and Law Enforcement Products Companies Charged in Foreign Bribery Scheme

Twenty-two executives and employees of companies in the military and law enforcement products industry have been indicted for engaging in schemes to bribe foreign government officials to obtain and retain business. Twenty-one defendants were arrested in Las Vegas, and one defendant was arrested in Miami. The indictments stem from an FBI undercover operation that focused on allegations of foreign bribery in the military and law enforcement products industry. The case represents the largest single investigation and prosecution against individuals in the history of DOJ’s enforcement of the Foreign Corrupt Practices Act.

New York: Three New York Businessmen Charged with Laundering Money Through Iran

Reza Safarha, Nick Mohamey, and Mohammad Soroush Mahalaty were charged with conspiring to launder money from the United States to Iran using the hawala system—a money remittance system operates outside of traditional banking channels.

Milwaukee: Former Koss Corporation Executive Charged in $31 Million Dollar Fraud

Sujata Sachdeva, the former vice president of finance, secretary, and principal accounting officer for Koss Corporation, was charged with six counts of wire fraud. The indictment alleges that Sachdeva used her position at Koss to fraudulently obtain more than $31 million from Koss, which she used to purchase personal items and pay for personal expenses. The case is one of the largest embezzlement cases ever brought in the Eastern District of Wisconsin.

Detroit: Former Mayoral Assistant Indicted on Bribery and Extortion Charges

A federal grand jury returned a five-count indictment against DeDan C. Milton, charging him with one count of conspiracy to commit bribery and extortion and two counts each of bribery and extortion. Milton served as an executive assistant to former Detroit Mayor Kwame Kilpatrick. The charges stem from the federal government’s investigation into bribes and kickbacks involving the sale of City of Detroit owned properties, including Camp Brighton in Livingston County and the Detroit Police Department’s 8th Precinct Station.

Indianapolis: Eighteen Charged in Cocaine Trafficking Case

Eighteen individuals from the Indianapolis area were charged with cocaine trafficking. Law enforcement officers arrested 13 of the charged individuals, two were already in state custody, and the remaining three remain at large. During the execution of 11 search warrants related to the investigation, police seized $125,000 in cash, approximately two kilograms of cocaine, seven ounces of crack, two pounds of marijuana, and 12 firearms. The indictment was the result of an investigation involving multiple agencies and directed by the FBI’s Safe Streets Task Force.

Chicago/Indianapolis: Two Charged in Murder-for-Hire Plot

Two DuPage County, Illinois men were arrested after being charged by complaint in a murder-for-hire plot targeting an Assistant United States Attorney and a Drug Enforcement Administration agent assigned to Chicago. Frank Caira and Jack Mann were charged with solicitation to commit a crime of violence, specifically attempting assault or intimidation of a federal officer, and attempting to kill a law enforcement official.

Dallas: Former Irving Police Officer Pleads Guilty in HUD Fraud Case

Ramon Anthony Reyes, Jr. pleaded guilty to one count of making a false statement to the U.S. Department of Housing and Urban Development (HUD) with regard to his participation in HUD’s “Good Neighbor Next Door/Officer Next Door” mortgage program.

Cincinnati: Fairfield Man Pleads Guilty to Role in $7.3 Million Investment Scam

Kevin Miller pleaded guilty to one count of conspiracy to commit mail fraud and one count of obstruction of an investigation for his role in a real estate investment fraud scheme between 2005 and 2008 that defrauded approximately 80 victims out of approximately $7.3 million.