FBI’s Top Ten News Stories for the Week Ending August 7, 2009

Washington, D.C. August 07, 2009

Washington Field Office: Former Congressman William J. Jefferson Found Guilty

After hearing evidence for more than one month in a federal court in Alexandria, Va., a jury found Jefferson guilty on 11 charged counts, including solicitation of bribes, honest services wire fraud, money laundering, racketeering and conspiracy. Jefferson was acquitted on three counts of honest services wire fraud, an obstruction of justice charge and of violating the Foreign Corrupt Practices Act.

Los Angeles: Three Sentenced to Federal Prison for Illegally Exporting Highly Sensitive U.S. Technology to China

In two separate cases, three men have been sentenced to federal prison for attempting to transport sensitive and advanced U.S. technology to the People’s Republic of China (PRC). The defendants in the two cases were charged under the International Emergency Economic Powers Act (IEEPA) and Export Administration Regulations (EAR) for procuring and illegal exporting sensitive technology in violation of United States export laws.

Chicago: Chicago Man Arrested for Interfering with Operation of CTA Trains and Busses

Marcel Carter, age 20, was arrested by officers of the Chicago Police Department (CPD) and subsequently turned over to members of the Chicago FBI’s Joint Terrorism Task Force (JTTF). The JTTF conducted additional investigation resulting in the filing of a criminal complaint charging Carter with Interfering with the Operation of a Mass Transit Vehicle, which is a felony offense.

New York: Ten Charged in Carpenters Union Corruption Case

An indictment was unsealed Aug. 5, 2009, charging the head of the Carpenters Union District Council in New York City and seven other Carpenters Union officials, one construction contractor, and a contractors’ representative, with a series of offenses stemming principally from a scheme by which Carpenters Union officials, in return for bribes, allowed construction contractors to avoid full payment of union wages and benefits at various job sites in New York City.

Las Vegas: USA Capital President Pleads Guilty to Wire Fraud

Joseph D. Milanowski, the owner of a Nevada investment company, who misappropriated over $50 million of client monies to fund loans for his own pet projects, pled guilty on Aug. 4th, 2009, to wire fraud.

Los Angeles: New York Rabbi Pleads Guilty to Scheme to Defraud I.R.S.

Grand Rabbi Naftali Tzi Weisz, the Grand Rabbi of Spinka, a religious group within Orthodox Judaism, pled guilty this morning to a criminal conspiracy charge, admitting that he worked with others to obstruct the Internal Revenue Service by soliciting charitable donations with secret promises to refund donors the vast majority of the money they “donated.”

Newark: FBI Arrests Two in Foreclosure Scheme

Garth Celestine and Phil A. Simon – better known collectively as “Home Savers Consulting Corporation” – were arrested and charged with attempt and conspiracy to commit wire fraud in connection with a home foreclosure scheme. Celestine and Simon caused lenders to fund more than $10 million worth of fraudulent loans and stole $1.5 million worth of equity from the properties.

Washington Field Office: Husband of Former Army Officer Pleads Guilty to Laundering Money Stolen From Iraq

William Driver, a New Jersey accountant, pled guilty to laundering portions of more than $300,000 stolen from the Coalition Provisional Authority (CPA) in the Republic of Iraq and brought back to the United States by his wife, a former U.S. Army lieutenant colonel.

Albany: Three Charged in Wire Fraud Involving Kickback Scheme

A federal grand jury returned a 29- count indictment charging defendants Joseph Queri, Jr., Benjamin Viloski, and Gary Gosson relating to a conspiracy and scheme from 1998 through 2005 to receive and conceal kickback payments in connection with the development of new Dick’s Sporting Goods, Inc. stores. The indictment alleges that there were approximately $2 million in kickbacks paid.

Atlanta: Former Polk County Jail Sergeant Pleads Guilty to Federal Civil Rights Charges

Joshua David Lowe, a former sergeant at the Polk County Jail, pled guilty in federal court to a civil rights charge of using excessive force against an inmate in his custody. Lowe admitted during the guilty plea hearing that he abused his authority as a law enforcement officer when he unnecessarily and repeatedly struck an inmate in his head and face while the inmate was strapped in a restraint chair.