FBI’s Top Ten News Stories for the Week Ending May 7, 2010

Washington, D.C. May 07, 2010

New York: Statement of the U.S. Attorney’s Office for the Southern District of New York on an Arrest in the Times Square Investigation

At approximately 11:45 p.m. Monday, Faisal Shahzad was taken into custody. Agents of the Federal Bureau of Investigation and detectives of the New York City Police Department arrested Shahzad for allegedly driving a car bomb into Times Square on the evening of May 1. Shahzad, a naturalized U.S. citizen born in Pakistan, was taken into custody at John F. Kennedy International Airport after he was identified by the Department of Homeland Security’s U.S. Customs and Border Protection while attempting to take a flight to Dubai.

FBI Headquarters: DOJ and DHS Announce 30 Convictions, More Than $143 Million in Seizures from Initiative Targeting Traffickers in Counterfeit Network Hardware

Operation Network Raider, a domestic and international enforcement initiative targeting the illegal distribution of counterfeit network hardware manufactured in China, has resulted in 30 felony convictions and more than 700 seizures of counterfeit Cisco network hardware and labels with an estimated retail value of more than $143 million.

San Francisco: Novartis Vaccines & Diagnostics to Pay More Than $72 Million to Resolve False Claims Act Allegations Concerning TOBI

Novartis Vaccines & Diagnostics Inc. and Novartis Pharmaceuticals Corporation have agreed to pay $72.5 million to resolve civil False Claims Act allegations arising from the marketing of the cystic fibrosis drug TOBI, the Justice Department announced. The settlement resolves allegations that between Jan. 1, 2001 and July 31, 2006, Novartis and its predecessor, Chiron Corporation, caused false claims to be submitted to federal health care programs for certain off-label uses of the drug.

FBI Headquarters: National Center for Disaster Fraud to Coordinate Gulf Oil Spill Fraud Complaints

The Federal Bureau of Investigation announced that an existing fraud tip line is now accepting information from the public about suspected fraud associated with the Gulf of Mexico oil spill. Tips should be reported to the National Center for Disaster Fraud, (866) 720-5721. The line is staffed by a live operator 24 hours a day, seven days a week. Additionally, e-mails can be sent to disaster@leo.gov or information can be faxed to (225) 334-4707. Fraudulent activity can take many forms. For example, individuals may claim to be raising money for environmental causes or offer fraudulent services pertaining to the oil spill, such as remediation services. Others may submit false insurance claims for property damage.

Oklahoma City: Former ATF Special Agent Pleads Guilty to Drug Conspiracy

Brandon Jay McFadden, a former special agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), pleaded guilty to drug conspiracy. McFadden, age 34, of Lubbock, Texas, was indicted on April 7, 2010. The four-count indictment charged McFadden with conspiracy to distribute methamphetamine, cocaine, and marijuana; possessing methamphetamine with intent to distribute; possessing a firearm during a drug trafficking offense; and money laundering.

Charlotte: Guilty Plea in Eve Carson Case

Demario James Atwater, charged with the March 5, 2008, murder of UNC-Chapel Hill Student Body President Eve Marie Carson, pleaded guilty to charges of carjacking resulting in death; kidnapping resulting in death; carrying and using firearms during and in relation to carjacking and kidnapping resulting in death; possession of firearms by a convicted felon; and possession of a short-barreled shotgun without such weapon being properly registered.

Dallas: Scarecrow Bandit Leader Sentenced to 355 Years in Federal Prison on Bank Robbery and Firearms Convictions

Tony R. Hewitt, the last defendant in the “Scarecrow Bandit” case, was sentenced to 355 years in federal prison. The Scarecrow Bandits committed a series of violent takeover-style bank robberies in the Dallas area between January and June 2008. The group’s other leader, Corey Deyon Duffey, a.k.a. “Kenyo,” a.k.a. “Calvin Brown,” was sentenced in January 2010 to 354 years in prison. Charles Runnels, a.k.a. “Junior,” was sentenced last month to 29 life sentences, to be served consecutively, without parole.

Kansas City: Former Blue Springs Woman Sentenced to 15 Years for Sex Trafficking of Daughter

A former Blue Springs, Mo. woman was sentenced in federal court for the sex trafficking of her daughter. When this case was originally charged in May 2008, it was the first time nationwide that the parent of a victim has been charged with commercial sex trafficking of her own child under the federal Trafficking Victims Protection Act.

Boston: Three North Providence Town Councilmen Charged with Extortion and Bribery

Three North Providence town councilmen, including the president of the Town Council, were arrested by federal agents on criminal complaints charging them with extortion and accepting a bribe. It is alleged the councilmen accepted a $25,000 bribe in return for favorable votes on a zoning change for a retail development project. U.S. Attorney Peter F. Neronha announced the arrests of Council President Joseph S. Birchfield and Town Councilmen Raymond L. Douglas III and John A. Zambarano.

San Juan: Juan Ríos Ortiz Indicted and Arrested for Providing Contraband to the Federal Prison

A grand jury returned a seven-count indictment charging Juan Ríos Ortiz, an individual who worked for a company that had a contract to supply produce to the federal prison’s kitchen, with conspiracy to possess with intent to distribute controlled substances and providing contraband to prison. From on or about December 2009, and continuing to on or about Feb. 2, 2010, the defendant conspired with other persons to distribute cocaine, heroin, marijuana, Percocet, and Xanax to an inmate at the Metropolitan Detention Center (MDC) in Guaynabo, Puerto Rico. The defendant, aiding and abetting other persons, also attempted to provide cellular telephones, chargers, and SIM cards to an inmate.