A member of the Arizona House of Representatives was charged by a federal
grand jury in the District of Arizona with bribery, fraud, attempted extortion,
and false statements in connection with receiving more than $6,000 in tickets to
sporting and special events while serving as a Tempe, Arizona City Council
council member and member-elect of the Arizona House, announced Assistant
Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division
and Special Agent in Charge James L. Turgal of the FBI’s Phoenix Field
Office.
The indictment charges Paul Ben Arredondo, 63, of Tempe, with one count of
federal programs bribery, two counts of honest services mail fraud, one count of
attempted Hobbs Act extortion, and one count of making false statements.
Arredondo will be arraigned on May 30, 2012 in U.S. District Court for the
District of Arizona before U.S. Magistrate Judge Lawrence O. Anderson.
According to the indictment, Arredondo was a council member in Tempe for 16
years, until July 2010. He was elected to the Arizona House of Representatives
in November 2010. The indictment alleges that from February 2009 to November
2010, Arredondo accepted, agreed to accept, and solicited things of value from
representatives of a company whose purported business objective was to acquire
city-owned property in Tempe for real estate development purposes. The
representatives were, in fact, undercover agents with the FBI. According to the
indictment, Arredondo received from the undercover agents more than $6,000 worth
of tickets to sporting and other special events. Those tickets included 18
tickets for Arizona Diamondbacks baseball games valued at a total of
approximately $2,400 and four tickets to an American League Championship Series
baseball game valued at a total of approximately $1,225.
According to the indictment, in return for those tickets, Arredondo took and
agreed to take action in his capacity as a Tempe city council member and as a
member of the Arizona House of Representatives to facilitate the undercover
agents’ purported purchase of city-owned property and development project. The
indictment alleges that Arredondo brokered meetings between the undercover
agents and other public officials, divulged information regarding the city of
Tempe’s bidding process, and attempted to persuade other city officials to
approve the purported development project.
The indictment further alleges that Arredondo lied to the FBI about his
conduct during an interview in January 2012.
The federal programs bribery charge carries a maximum penalty of 10 years in
prison and a $250,000 fine. Each count of honest services mail fraud and
attempted extortion carries a maximum penalty of 20 years in prison and a
$250,000 fine. The false statement charge carries a maximum penalty of five
years in prison and a $250,000 fine. The indictment also contains a notice of
forfeiture.
An indictment is merely a charge, and a defendant is presumed innocent unless
and until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorneys Edward T. Kang and Monique T.
Abrishami of the Criminal Division’s Public Integrity Section, and Assistant
U.S. Attorney Frederick A. Battista of the District of Arizona. The case is
being investigated by the FBI’s Phoenix Field Office.
Tuesday, May 22, 2012
Seattle Financial Advisor Indicted in $46 Million Investment Fraud Scheme
A long-time Seattle financial advisor was indicted by a federal grand
jury with 23 criminal counts, including wire fraud, money laundering and
investment advisor fraud, announced U.S. Attorney Jenny A. Durkan. Mark F.
Spangler, 57, of Seattle is accused of diverting investor money from accounts he
managed to risky start-up ventures in which he or his investment firm had an
ownership interest. Spangler allegedly diverted more than $46 million to two
companies, one of which is now shut down after failing to generate any positive
revenue. Those who invested in the funds managed by Spangler, as part of The
Spangler Group Inc.(TSG), were not told that their money was being invested in
risky start-up companies. Spangler and several of his companies went into
receivership last year. Today, the Securities and Exchange Commission filed a
civil suit against Spangler as well. Spangler is scheduled to appear in U.S.
District Court in Seattle on May 18, 2012 at 2:30.
“The Department of Justice is making the prosecution of financial fraud a top priority,” said U.S. Attorney Durkan. “These investors lost millions to a man they trusted to safeguard their resources. We are working closely with the SEC to ensure Mr. Spangler is held accountable for his fraud.”
The six investors described in the indictment were told their funds were conservatively invested in publicly traded companies and in bonds. Spangler allegedly provided them misleading statements over time, falsely describing the value of their accounts and how the money was invested. When investors sought to liquidate their holdings, Spangler was unable to provide them any funds, because the money had been funneled to the high risk start-up ventures that were not profitable.
According to the indictment, Spangler established a variety of funds as early as 1998 to pool investor money to buy publicly traded stocks and bonds. Spangler co-founded the two startup companies in the early 2000s—Tamarac Inc. in 2000 and TeraHop Networks Inc. in 2002. Tamarac Inc. is headquartered in Seattle and provides software to financial planners. TeraHop Networks Inc. is headquartered in Georgia and manufactured wireless devices used to monitor the location and activity of people and physical assets such as construction equipment. TeraHop has ceased operation. Spangler not only failed to disclose to his investors that he was diverting significant amounts of their funds to TeraHop and Tamarac, but he also failed to disclose that he was involved in the management of these companies, had an ownership interest in Tamarac, and was receiving payments from both companies. The indictment contains an order of forfeiture, which will be used to try to recover assets for the investors.
The case is being investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Mike Lang and Carl Blackstone.
“The Department of Justice is making the prosecution of financial fraud a top priority,” said U.S. Attorney Durkan. “These investors lost millions to a man they trusted to safeguard their resources. We are working closely with the SEC to ensure Mr. Spangler is held accountable for his fraud.”
The six investors described in the indictment were told their funds were conservatively invested in publicly traded companies and in bonds. Spangler allegedly provided them misleading statements over time, falsely describing the value of their accounts and how the money was invested. When investors sought to liquidate their holdings, Spangler was unable to provide them any funds, because the money had been funneled to the high risk start-up ventures that were not profitable.
According to the indictment, Spangler established a variety of funds as early as 1998 to pool investor money to buy publicly traded stocks and bonds. Spangler co-founded the two startup companies in the early 2000s—Tamarac Inc. in 2000 and TeraHop Networks Inc. in 2002. Tamarac Inc. is headquartered in Seattle and provides software to financial planners. TeraHop Networks Inc. is headquartered in Georgia and manufactured wireless devices used to monitor the location and activity of people and physical assets such as construction equipment. TeraHop has ceased operation. Spangler not only failed to disclose to his investors that he was diverting significant amounts of their funds to TeraHop and Tamarac, but he also failed to disclose that he was involved in the management of these companies, had an ownership interest in Tamarac, and was receiving payments from both companies. The indictment contains an order of forfeiture, which will be used to try to recover assets for the investors.
The case is being investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Mike Lang and Carl Blackstone.
Friday, May 18, 2012
FBI and U.S. Postal Inspection Service Announce Reward for Information Leading to the Arrest and Conviction of the Person(s) Responsible for the Recent Mailings of White Powder Letters in the North Texas Area
Kevin F. Kolbye, Acting Special Agent in Charge, Dallas, Federal Bureau of Investigation (FBI), and Randall C. Till, Inspector in Charge, Fort Worth Division, U.S. Postal Inspection Service (USPIS), announce a reward of up to $150,000 for information leading to the identification, arrest, prosecution, and conviction of the person(s) responsible for the recent mailings of letters containing white powder in the Dallas/Fort Worth area. The reward flyer is posted below.
During the week of May 7, 2012, over 20 letters containing white powder were received by early childhood development centers, elementary schools, and an aerospace-related business. These letters were received in Texas and several other states. The FBI, USPIS, local law enforcement, and local fire department hazardous materials teams responded to each location and field screened the letters for the presence of toxins or poisons. To date, none of the mailings have contained hazardous materials.
Each letter was sent through the U.S. mail and featured a postmark from North Texas. It is highly likely these letters were sent by the same person responsible for mailing over 380 letters, beginning in late 2008, each of which contained a non-hazardous substance. This person has sent letters to elementary, middle, and high schools; day care centers; churches; government offices; U.S. Embassies abroad; restaurants; and other private businesses. A sample letter is posted below.
The author has and continues to reference subjects such as al Qaeda and the Nazi SS, which is believed to have been included for shock value rather than to express any sincere sympathy or affiliation. In a recent letter, he used the terms “Scooby Doo” and “triple dealer spy” and made reference to CIA counterintelligence and FBI internal affairs.
The sender has taken steps to conceal his activities and prevent law enforcement from finding physical evidence of his crimes, including his fingerprints. A flyer announcing the reward along with possible details about the subject has been posted on the Dallas FBI website (www.fbi.gov/dallas) and on the USPIS website (postalinspectors.uspis.gov).
Although mail is screened for toxic substances prior to delivery, the public is reminded to take the following precautions should they open a piece of mail with a powdery substance in it.
During the week of May 7, 2012, over 20 letters containing white powder were received by early childhood development centers, elementary schools, and an aerospace-related business. These letters were received in Texas and several other states. The FBI, USPIS, local law enforcement, and local fire department hazardous materials teams responded to each location and field screened the letters for the presence of toxins or poisons. To date, none of the mailings have contained hazardous materials.
Each letter was sent through the U.S. mail and featured a postmark from North Texas. It is highly likely these letters were sent by the same person responsible for mailing over 380 letters, beginning in late 2008, each of which contained a non-hazardous substance. This person has sent letters to elementary, middle, and high schools; day care centers; churches; government offices; U.S. Embassies abroad; restaurants; and other private businesses. A sample letter is posted below.
The author has and continues to reference subjects such as al Qaeda and the Nazi SS, which is believed to have been included for shock value rather than to express any sincere sympathy or affiliation. In a recent letter, he used the terms “Scooby Doo” and “triple dealer spy” and made reference to CIA counterintelligence and FBI internal affairs.
The sender has taken steps to conceal his activities and prevent law enforcement from finding physical evidence of his crimes, including his fingerprints. A flyer announcing the reward along with possible details about the subject has been posted on the Dallas FBI website (www.fbi.gov/dallas) and on the USPIS website (postalinspectors.uspis.gov).
Although mail is screened for toxic substances prior to delivery, the public is reminded to take the following precautions should they open a piece of mail with a powdery substance in it.
- Leave the immediate area where the powder was spilled but keep yourself separated from individuals who have not been exposed to the powder. Do not attempt to clean up the powder and do not move the letter. Isolate the area where the spill has occurred.
- Wash hands immediately.
- Call 911 and advise them of the receipt of the mailing.
- Remember, all instances of white powder in this matter have tested negative for a toxic substance. The white powder, however, should still be handled with caution until verification of its lack of toxicity is received.
Friday, May 11, 2012
Saturday, May 5, 2012
Chuck Woolery on Budget Cuts
http://www.SaveUsChuckWoolery.com Game show legend Chuck Woolery discusses his thoughts on how to cut government spending.
Tuesday, May 1, 2012
The Supplemental Nutrition Assistance Program
The Supplemental Nutrition Assistance Program (SNAP) provides benefits to help people in low-income households purchase food. In fiscal year 2010, households receiving SNAP benefits had annual income (other than those benefits) that averaged about $8,800; SNAP benefits averaged about $4.30 per person per day.
SNAP spending and participation reached record levels in 2011
Nearly 45 million recipients, one out of every seven U.S. residents, received SNAP benefits in an average month in fiscal year 2011. Total federal spending for the program was $78 billion.Spending on SNAP benefits grew by about 135 percent between 2007 and 2011
Spending growth was driven by increases in the number of people receiving benefits and by increases in benefit amounts per person.- About 65 percent of growth came from an increase in the number of people receiving benefits. That increase was driven primarily by the weak economy.
- About 20 percent of growth can be attributed to temporarily higher benefit amounts. That increase was legislated in the American Recovery and Reinvestment Act of 2009.
- The final 15 percent of growth stems from other factors, such as higher food prices and lower income among beneficiaries, both of which boosted benefits.
FBI’s Top Ten News Stories for the Week Ending April 27, 2012
New Orleans: Former BP Engineer Arrested in Deepwater Horizon Criminal
Investigation
Kurt Mix was arrested on charges of intentionally deleting electronic evidence that had been requested by federal authorities investigating the disaster. Full Story
Washington Field: Individual Charged in Machine Gun Attack on U.S. Embassy
Serbian citizen Mevlid Jasarevic was charged with attempted murder for his alleged attack on the U.S. Embassy in Sarajevo, Bosnia-Herzegovina. Full Story
Mobile: Man Accused of Online Sextortion Plot Indicted on New Charges
Christopher Patrick Gunn was indicted for using fake Facebook profiles to extort nude photos and videos from underage girls in numerous states. Full Story
New York: Former Agape World Inc. Account Representatives Charged with Massive Ponzi Scheme
Jason Keryc, Anthony Massaro, Anthony Ciccone, and Diane Kaylor were charged for their participation in a Ponzi scheme that caused $179 million in losses to victim investors. Full Story
San Juan: Forty Individuals Indicted in Drug Trafficking Conspiracy
Forty individuals were charged for their roles in distributing crack, heroin, cocaine, marijuana, and Xanax. Full Story
Boston: Former Naval Engineer Charged in Bribery, Kickback Conspiracy
Ralph Mariano and his father were charged in connection with a 15-year bribery and fraud conspiracy involving approximately $10 million in Naval funds. Full Story
Tampa: Former State Department Agent Sentenced for Transportation of Child Pornography
James Cafferty was sentenced to seven years in prison for shipping computer equipment containing images of child pornography from London to the United States. Full Story
St. Louis: Former Police Sergeant Pleads Guilty to Drug Charges
Larry J. Davis admitted seizing packages suspected to contain marijuana and then distributing and selling the drug himself. Full Story
Chicago: Man Pleads Guilty to Attempted Bombing Near Wrigley Field
Sami Samir Hassoun pled guilty to placing a backpack he thought contained a powerful explosive device into a curbside trash container near the baseball park. Full Story
Washington Field: Website Domains Involved in Selling Stolen Credit Card Numbers Seized
Seizure orders were executed against 36 domain names of websites that facilitated worldwide credit card fraud. Full Story
Kurt Mix was arrested on charges of intentionally deleting electronic evidence that had been requested by federal authorities investigating the disaster. Full Story
Washington Field: Individual Charged in Machine Gun Attack on U.S. Embassy
Serbian citizen Mevlid Jasarevic was charged with attempted murder for his alleged attack on the U.S. Embassy in Sarajevo, Bosnia-Herzegovina. Full Story
Mobile: Man Accused of Online Sextortion Plot Indicted on New Charges
Christopher Patrick Gunn was indicted for using fake Facebook profiles to extort nude photos and videos from underage girls in numerous states. Full Story
New York: Former Agape World Inc. Account Representatives Charged with Massive Ponzi Scheme
Jason Keryc, Anthony Massaro, Anthony Ciccone, and Diane Kaylor were charged for their participation in a Ponzi scheme that caused $179 million in losses to victim investors. Full Story
San Juan: Forty Individuals Indicted in Drug Trafficking Conspiracy
Forty individuals were charged for their roles in distributing crack, heroin, cocaine, marijuana, and Xanax. Full Story
Boston: Former Naval Engineer Charged in Bribery, Kickback Conspiracy
Ralph Mariano and his father were charged in connection with a 15-year bribery and fraud conspiracy involving approximately $10 million in Naval funds. Full Story
Tampa: Former State Department Agent Sentenced for Transportation of Child Pornography
James Cafferty was sentenced to seven years in prison for shipping computer equipment containing images of child pornography from London to the United States. Full Story
St. Louis: Former Police Sergeant Pleads Guilty to Drug Charges
Larry J. Davis admitted seizing packages suspected to contain marijuana and then distributing and selling the drug himself. Full Story
Chicago: Man Pleads Guilty to Attempted Bombing Near Wrigley Field
Sami Samir Hassoun pled guilty to placing a backpack he thought contained a powerful explosive device into a curbside trash container near the baseball park. Full Story
Washington Field: Website Domains Involved in Selling Stolen Credit Card Numbers Seized
Seizure orders were executed against 36 domain names of websites that facilitated worldwide credit card fraud. Full Story
Subscribe to:
Posts (Atom)