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Category Archives: 47C Racketeering (RICO) / Illegally Conducting an Enterprise (Federal Charge) Victories

State v. Ms. O (DMC No. 14836) – Felony Money Laundering ($25,000) and Felony Conspiracy – Not Charged Due to Cooperation and Testimonial Agreement – Pinal County Sheriff’s Office and Arizona Attorney’s Office Investigated.  Ms. O had befriended a man by the name of Francis and had begun dating him.  While she was dating him, he always had money but was unemployed.  He claimed he was a refrigeration repairman.  However, his house always smelled of marijuana and many people were coming in and out of the residence.

He would ask her to constantly deposit cash into a bank account which she opened.  That account was initially shut down at the first bank because it was “a risk to the institution.”  She then opened a second account at another bank and began depositing money into that bank account.  She began observing her boyfriend packaging marijuana in five-gallon paint buckets, and he would ask her to go to the PO Box in order to ship the packages.  He was eventually arrested and the police contacted her about potential Money Laundering in regard to the bank deposits.  She then retained our services, and we then became involved.

We contacted the Pinal Count Sheriff’s Office and the Arizona Attorney General’s office in order to negotiate a “Cooperation Deal.”  Due to Ms. O’s cooperation, she was never charged with any crimes.  Her ex-boyfriend was ultimately charged with multiple counts of Transportation of Marijuana and Conspiracy, along with multiple co-defendants.  If Ms. O was also convicted (as was her boyfriend) she would have gone to prison as well.

State v. Mr. W (DMC No. 13130) – Federal Bank and Wire Fraud ($1,000,000), Felony Fraud Schemes ($450,000 Misappropriated from Wire Amount), Felony Money Laundering, Felony Sale of an Unlicensed Security and Felony RICO – Not Charged – FBI Investigated.

Mr. W had two co-defendants that were in the process of trying to raise money for a new energy company venture. They had a primary investor out of China who was to wire $1 million to a bank in Singapore to begin the investment. The idea was that Mr. W and the two co-defendants were to purchase AAA rated “paper,” which they would buy at ¢.85 and sell at ¢.92. By doing these securities transaction sales, they were attempting to raise $5 billion for the energy startup company. These types of transactions are illegal in the United States.

After the initial $1 million wire was sent out, $100,000 was immediately misappropriated by one of the co-defendants. The other co-defendant took $450,000, and the remaining $450,000 was split between all three co-defendants in order to cover past expenses.

The FBI became involved on behalf of the alleged victim, and they issued a subpoena for Mr. W to testify in a Grand Jury proceeding in the New Jersey District Court. We then became involved and began talking to the FBI agent and the Assistant U.S. Attorney General involved in the case. We were able to work with them in order to show that one of the other co-defendants should be the actual target of the investigation. We ended up providing the documents that they were seeking, and we also made Mr. W available for interviews. Mr. W was never charged with any crimes, and he has no criminal record.

State v. Mr. F (DMC No. 14985) – (2 Counts) Felony Conspiracy ($30,000,000) to Manufacture and Distribute a Controlled Substance Analogue, Felony Conspiracy to Defraud the US, Felony Adulteration or Misbranding of a Drug, and Forfeiture – Forfeiture Dismissed and Other Charges Reduced to Probation With Zero Days in Jail – United States District Court, District of Arizona (Case No. CR-14-01607-1-PHX-SRB and United States District Court, Southern District of Alabama, Case No. 14-00272-CB):  Our client was a fitness buff who had a training facility in which he sold various body-building “supplements.”  He was charged with Conspiracy in two different Federal courts (Arizona and Alabama).  He was accused of importing chemicals from overseas, manufacturing chemical “analogues” to illegal drugs, packing and then distributing the drugs as “pot pourri” in various states.

The total quantity of the alleged illegal drugs was in excess of 110 kilograms of raw chemical, which was used to manufacture hundreds of kilograms of finished product, calculated as the equivalent of over 19,350 kilograms of marijuana.  The dollar amount alleged by the Government throughout the Conspiracy exceed $30,000,000.

We were involved in negotiations with the United States Attorneys’ Offices in several districts, as well as with the main Justice Department.  It took over a year of intense work from a cooperation and a lengthy sentencing battle in order to achieve an offer in which the Probation Department recommended a sentence of 78 months of prison time in Arizona, and 60 months, followed by 36 months of prison time in the Alabama case (all to run consecutively).  Due to our efforts, Mr. F was sentenced to Probation with Zero prison or jail time.  Lastly, the Forfeiture allegations which would have taken everything that Mr. F owned, were dismissed.  As part of the overall deal, any other charges which could have arisen out of any other Federal District Courts, were also permanently barred from being indicted.  These could have included Conspiracy (18 USC § 371), Fraud (18 USC § 545), Misbranding—as pot pourri (18 USC §§ 331A and 333(A)(2)), and Distribution (18 USC § 331(A)).

NOT CHARGED/ FEDERAL and STATE TELEMARKETING FRAUD (RICO), MONEY LAUNDERING and BANK and WIRE FRAUD ($3,000,000+) – State v. Mr. A (DMC No. 8850 & 7440) (United States Attorney and FBI Investigated): Mr. A had had run a telemarketing business in the past and was brought in to assist his son and business partner in their business ventures. He helped them set up their telemarketing room, along with scripts for sales pitches and information on how to set up bank accounts for wire transfers. He then managed his own telemarketing business selling GPS locators for cars. A massive search warrant was issued for his son and business partner, and the FBI and United States Attorney’s Office were attempting to question Mr. A and potentially implicate him in a scheme.

We were hired and reviewed all evidence against Mr. A’s son and his son’s business partner. We also spoke with FBI Agents and the US Attorney’s Office in order to show them that Mr. A had no knowledge of his son and business partners’ scheme. We ultimately convinced the US Attorney’s Office not to file charges for Wire Fraud, Bank Fraud and Money Laundering. In addition, the FBI did not turn their investigation over to State authorities in an attempt to have Arizona prosecute Mr. A. Although his son and business partner ended up serving prison time, Mr. A was never charged with any crimes. In addition, Mr. A never had to testify against his son.

NOT CHARGED | FEDERAL SECURITIES FRAUD/RICO/MONEY LAUNDERING/ BANK and WIRE FRAUD ($636,000) NOT CHARGED due to CIVIL SETTLEMENT – U.S. v. Mr. N. (DMC No. 7596) (FBI Investigated): Mr. N. owned a company which bought investments, fixed income investments, CD’s and bonds from banks and then sold them to various brokers.  Mr. N. was accused of diverting approximately $600,000 of client’s money into a separate account in order to fund a separate business.  We were able to explain to investigators that this was a “civil” issue, and not a criminal issue.  We also resolved a civil law suit filed by a large investor, by making sure that all monies were returned to proper accounts.  Mr. N. had been facing a large amount of prison time, along with the loss of his Securities licenses until we got involved.  Ultimately, all law suits were dropped, no charges were brought against Mr. N. and his licenses were left intact.

NOT CHARGED | FEDERAL RICO/MONEY LAUNDERING/BANK and WIRE FRAUD ($300,000) NOT CHARGED – State v. Mr. R. (DMC No. 6695) (U.S. Secret Service/United States Attorney’s Office Investigated): Mr. R. was employed as a Telemarketer for a company in which he was to handle the funds that were deposited into a Wells Fargo Bank account.  During the course of the sales, the individuals would provide credit card numbers for purchase.  Mr. R. and his group were accused of posing as Account Holders in order to authorize electronic transfers for a higher dollar amounts.   Total loss was estimated to be $300,000.  Mr. R. was not the primary target of the Secret Services investigation, and a “cooperative deal” was negotiated in which no charges were brought against Mr. R.  Originally he was facing a lengthy stay in the Federal Bureau of Prisons.

 

RICO/ILLEGAL CONTROL of an ENTERPRISE; CONSPIRACY; 2 COUNTS PRODUCTION of MARIJUANA (59 Plants) and POSSESSION of MARIJUANA for SALE: ALL REDUCED to ATTEMPTED POSSESSION of MARIJUANA for SALE with PROBATION and ZERO DAYS in JAIL – State v. Ms. M (DMC No. 9458) (Maricopa County Superior Court CR 2009-006134): Ms. M and 3 male codefendants were all living in a residence which maintained a Hydroponic growing facility which produced Marijuana. Officers had responded to a call of a strong odor of Marijuana coming from the residence, and after speaking with the residents a search warrant was issued. Eventually, 59 plants were found along with various Marijuana growing equipment that was valued at over $60,000. She was then charged under the Arizona RICO (Racketeering Influenced Corrupt Organization Act). We were able to show the Assistant Arizona Attorney General that Ms. M was far less involved than the other co-defendants, and therefore she deserved an offer which included Probation with the ability to argue for zero days in Jail. At sentencing, the co-defendants were given 1 year in Jail, and Ms. M was awarded zero days in Jail. Originally she had been facing mandatory Prison time.

 

NOT CHARGED | FEDERAL RICO/MONEY LAUNDERING and PROMOTION of GAMBLING NOT CHARGED – State v. Mr. H. (DMC No. 7850) (FBI Investigated): Mr. H. was involved in a running a company that served as a filter between internet users and an offshore gaming company.  This was during the internet poker boom and internet poker gambling had not been legalized.   FBI began investigating Mr. H.’s company for assisting 30 other companies in processing payment for various internet gamblers in the U.S.  We were able to protect Mr. H.’s right, and prevented him from being charged with Federal RICO, Money Laundering and Promotion of Gambling charges.

 

NOT CHARGED | CONDUCTING ILLEGAL ENTERPRISE (PROSTITUTION) / RICO – (DMC No. 4046) State v. Ms. B.: Police executed a search warrant at Ms. B’s home apartment, and her business apartment. She lived at her home apartment, and was running a beauty salon in her business apartment. She had friends who would also give private massages at the business apartment. During a sting operation, an undercover police officer was in the apartment for a massage and was fully naked. It appears there may have been some sexual contact with him before he left. Because of this fact, and the potential embarrassment to the police agency, we were able to convince the prosecutor to decline any charges.

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