Federal Criminal Defense Lawyers

Monday, June 20, 2011

www.McNabbAssociates.com

Anadarko and Kerr-Mcgee to Pay More Than $17 Million to Resolve Allegations of Royalty Underpayments from Federal and Indian Lands
(USDOJ: Justice News)
Submitted at 10:41 AM June 20, 2011

Assistant Attorney General Laurie Robinson of the Office of Justice Programs Speaks at the National Center for Victims of Crime Annual Conference
(USDOJ: Justice News)
Submitted at 11:03 AM June 20, 2011

Eighteen Members of Nationwide Marijuana Trafficking Organization Charged

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:37 AM June 20, 2011

Anadarko Petroleum Corporation, KerrMcGee Corporation and their affiliates have agreed to pay the United States more than $17 million to resolve claims that the companies violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and Indian leases, and numerous additional administrative claims.

"I know with all of us working together to shape our future thinking together in new ways and re-imagining our potential the victim service field will be stronger, more effective, and better able to ensure a safer and more just world."

Justice Department Reaches Agreement with City of Manassas Park, Virginia, on Bailout from the Voting Rights Act
(USDOJ: Justice News)
Submitted at 2:03 PM June 20, 2011

Shiprock Man Pleads Guilty to Federal Aggravated Child Sexual Abuse Offense
(FBI in the News)
Submitted at 7:39 AM June 20, 2011

Michael Crosby, 54, entered a guilty plea to aggravated sexual abuse of a child who had not attained the age of 16 years under a plea agreement with the United States Attorneys Office.

Federal Bureau of Investigation (FBI) on June 17, 2011 released the following press release: FBI and IRS Agents Arrest 12 Who Face Fraud and Money Laundering Charges ALEXANDRIA, VAEighteen individuals have been charged in the Eastern District of Virginia for allegedly participating in a nationwide distribution ring smuggling high-quality marijuana from grows in northern California to midlevel dealers in numerous states throughout the country. After coordinated arrests yesterday, 17 conspirators are in custody and one remains a fugitive: EIGHTEEN page 1

The Justice Department announced that it has reached an agreement with the city of Manassas Park, Va., that, if approved by the court, will allow for the city to bail out from its status as a covered jurisdiction under the special provisions of the Voting Rights Act, and thereby exempt the city from the preclearance requirements of Section 5 of the Voting Rights Act.

18 Charged in Federal Fraud Cases Related to Telemarketing Operations that Solicited Over $25 Million for Indie Films
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:26 AM June 20, 2011

Baltimore Man Sentenced to 46Month Prison Term for Traveling from Maryland to D.C. to Have Sex with 13-YearOld Child
(FBI in the News)
Submitted at 7:43 AM June 20, 2011

Calvin Allen, 25, was sentenced today to 46 months in prison on a charge of traveling interstate to engage in illicit sexual conduct.

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Marvin Powers, Jr., a/k/a Marv, 39, of Vallejo, Calif. Neil H. MacBride, United States Attorney for the Eastern District of Virginia; James W. McJunkin, Assistant Director in Charge of the FBIs Washington Field Office; Robert B. Wemyss, Acting Inspector in Charge of the Washington Division of the United States Postal EIGHTEEN page 2

Federal Bureau of Investigation (FBI) on June 17, 2011 released the following press release: FBI and IRS Agents Arrest 12 Who Face Fraud and Money Laundering Charges LOS ANGELES12 people have been arrested this week on federal fraud charges stemming from boiler room operations that solicited investments in independent movies with false promises of up to 1,000 percent returns and misrepresentations as to how investor funds would be used. Yesterday, Federal authorities arrested a total of ten defendants; one person in Florida and nine people in Southern California. Today, Federal authorities arrested two additional defendants in Florida. The arrests are the result of two indictments returned on Wednesday by a federal grand jury. The indictments charge a total of 17 defendantsfour of whom are named in both indictmentswho allegedly participated in fraudulent fundraising activities related to

independent film projects. While some of the movies were actually produced, the indictments allege that the defendants lied, gave half-truths and concealed material facts from investors around the nation. Federal prosecutors have also charged an 18th person in this investigation. A former CIA agent who ran a Burbank movie company called Q Media Assets has already pleaded guilty to conspiracy, mail fraud and tax charges in relation to the fraudulent boiler rooms. In relation to the arrests this week, one indictment concerns the activities of Cinamour Entertainment LLC, which allegedly bilked investors who put money into independent motion pictures called From Mexico with Love and Red Water: 2012. The defendants raised money for the films through boiler room telemarketing operations, which made fraudulent pitches to investors. The charged defendants and other telemarketers cold-called investors from lead lists and solicited investments with false claims, such as that 93 percent of investor money would be used to produce CHARGED page 3

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Inspection Service; Earl Cook, Alexandria Chief of Police; and Colonel David Rohrer, Fairfax County Chief of Police, made the announcement after the case was unsealed. We have dismantled a significant, national drug ring that allegedly made millions trafficking marijuana and recruited college athletes to target fellow students for drug sales, said U.S. Attorney MacBride. Marijuana is an addictive, dangerous gateway drug that often leads users to graduate to other deadly narcotics. Distributors often rely on guns and physical violence to enforce debts and ensure the success of their business, allured by the potential for significant profit peddling contraband. Were grateful to the tight partnership of the agencies who worked together to bring charges against those in every level of this organization. According to court documents, the ring is led by Anthony Guidry, Sr., a/k/a Ant, 46, of Vallejo, Calif., who allegedly trained and now works with three other men as interconnected wholesale dealers of marijuana they either grow or purchase from growers in northern California. From 2005 through the present, the conspirators are accused of taking orders for various marijuana strains and shipping multipound quantities to suppliers in more than a dozen states. The complaint affidavit states that many conspirators carry firearms while conducting drug sales and use weapons and assault to intimidate those who have not paid, including targeting the young children of those in debt to conspirators. Guidry is allegedly focused on extending his enterprise to as many states as possible, recruiting distributors from all walks of life, including college athletes, to help open distribution centers in cities and college campuses in Virginia, Georgia, Colorado, Kansas, Missouri, Texas, Louisiana, Florida, New York, New Jersey, and Pennsylvania. Court records indicate that he controls more than 20 bank accounts that conspirators use to deposit proceeds from marijuana sales in whatever state sales are made. To avoid law enforcement detection, Guidry allegedly also hires individuals to fly around the country to pick up bulk cash payments and return to California. Court documents state that Guidry is the owner of a company named Daddys Girl Handyman, which is based out of his residence and is allegedly a front for him to launder illicit drug proceeds and appear to have legitimate income. He is accused of using drug proceeds to purchase multiple homes, vehicles, and a boat. In a two year period, investigators allege he

received deposits of nearly $1 million into his various accounts. According to the affidavit, Guidry would obtain wholesale marijuana for as little as $1,200 a pound, which he would sell for as much as $5,000 per pound at the retail level. Investigators conservatively estimate that the conspiracy has generated at least $2 million in profit during the course of the conspiracy. Prior to arrest, law enforcement had seized 71 pounds of marijuana and $161,980 in money orders from the conspirators. Court records indicate that the ring was uncovered through the arrest of Moataz Mohammad Masoud, a/k/a Mo, Fat Mo, or Gyp, 26, of Alexandria, Va., in Alexandria on Jan. 12, 2010. While detained on marijuana distribution charges, court documents state that Masoud telephoned other conspirators to ensure that they continued his marijuana dealing operation. This arrest and ensuing investigation contributed to the initiation of the overall investigation that resulted in todays charges. All 15 individuals were charged with conspiracy to distribute 100 kilograms or more of marijuana, which carries a maximum penalty of 40 years in prison if convicted. Court documents indicate that additional charges carrying a maximum penalty of life imprisonment may also be filed against certain co-conspirators. In addition to Guidry, those charged include: James Cody Cutri, 22, of Springfield, Va., is alleged to be the leader of a marijuana and oxycontin distribution network based in the Eastern District of Virginia and extending into West Virginia. Court records indicate that he has received marijuana from Johnson for at least five years and is the largest and most lucrative of Johnsons distribution outlets. Cutri works with Masoud; Nahom Hagos, a/k/a Fat Boy, 23, of Alexandria, Va.; and Yonata Noah Hagos, a/k/a Yoni, Yone, or Little Black Boy, 24, of Alexandria, Va., on retail sales of marijuana. Justin Dacory Johnson, a/k/a Jay, 23, of Pittsburg, Calif., is alleged to be a wholesale dealer with a distribution network in several states and is the primary supplier to Cutri and his network operating in the Eastern District of Virginia. Cristina Delores Patino, 28 of Pittsburg, Calif., is alleged to be the livein girlfriend of Johnson who assists him in packaging and shipping marijuana to others in his network. Munir Abdalla Saad, a/k/a Saad Munir Abdalla, 36, of Benicia, Calif., and Powers are alleged to be wholesale dealers who work closely with Guidry in operating the marijuana ring, along with

operating their own distribution networks. Saad is allegedly working with Guidry on renting property in California to grow marijuana. Noe Briones, 26, of Rodeo, Calif., is alleged to be a marijuana grower and one of Johnsons regular marijuana suppliers. Court documents state that he rents a home in Sacramento, Calif., that he refers to as the ranch where he is running one of his marijuana grow operations. Nathaniel Scott Wilson, a/k/a Nate, and Jeremiah Adam Wilson, a/k/a Jay,twin brothers, 26, of Atlanta, Ga.are alleged to operate a distribution outlet from Atlanta, Ga., for Guidry. Julius Jamar Watson III, a/k/a Ju Ju, 23, of Sacramento, Calif., is alleged to be a distributor for Guidry and, according to court documents, is helping to establish distribution outlets in Pennsylvania and New York. Tracy Christopher King, a/k/a T.C., 44, of Norfolk, Va., is alleged to have established a distribution network for Guidry in the Tidewater area of Virginia, particularly at local colleges and the beaches on the Eastern Shore. Tiffany Nicole Solorio, a/k/a Tiff, 22, of Rio Linda, Calif., is believed to be Guidrys daughter or stepdaughter. She is alleged to receive between work for Guidry and Johnson transporting tens of thousands of dollars in proceeds via commercial airline from members of the distribution ring and returning them to Guidry and Johnson in California. Anthony Scott Giuliani, a/ka/ Ant, 44, and Annette Marie Ross, 51, of Covelo, Calif., are alleged to be growers who supply Guidry with high-grade marijuana. Robert Williams, 22, of Springfield, Va., was discovered by law enforcement at Cutris residence at the time of Cutris arrest on June 16, 2011, and was found to have allegedly possessed a .40-caliber pistol, $11,000 in cash, and bundles of marijuana. Todays charges are a result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation being conducted by the FBI Washington Field Office, the U.S. Postal Inspection Service, and the Alexandria and Fairfax County police departments. Assistant United States Attorneys Sean P. Tonolli and Lisa Owings are prosecuting the case on behalf of the United States. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty. To find additional federal criminal news, EIGHTEEN page 4

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and promote the films, and that investors would receive returns up to 1,000 percent. According to the indictment, the telemarketers failed to disclose that they would receive commissions when, in fact, often more than one-third of the investments went into their pockets. Little more than one-third of investor funds were used to actually produce and promote From Mexico With Love. During the course of the Cinamour schemewhich the indictment alleges ran from early 2004 through May 2009the defendants collected approximately $15 million for From Mexico With Love from about 450 victim-investors. The movie cost about $5 million to produce and generated approximately $550,000 in its theatrical release in October 2009. The defendants raised about $2.7 million for the Red Water movie from about 100 victim-investors, but essentially none of the money was used to produce the film, which was never made. The second indictment filed this week focuses on Q Media Assets LLC. This indictment alleges that telemarketers for Q Media fraudulently raised funds for films called Eye of the Dolphin and its sequel, Way of the Dolphin (which was later called Beneath the Blue). Telemarkers associated with Q Media also bought lead lists from the same San Clemente company that sold lists to the Cinamour telemarketers. As in the Cinamour case, telemarketers seeking investments in the Dolphin movies allegedly made material misrepresentations, told material halftruths, and concealed material facts, when speaking to investors, specifically concealing information about commissions and promising returns of up to 1,000 percent. The defendants in the Q Media case raised approximately $5 million for Eye of the Dolphin and about $4 million for Way of the Dolphin from about 250 investors. Eye of the Dolphin made about $70,000 in ticket sales in its theatrical release, while Way of the Dolphin went straight to video. The 45-count Cinamour indictment charges a dozen defendants: Daniel Toll, 56, of Encino, who was president of Cinamour, will make his initial appearance in two weeks; Joel Lee Craft Jr., 41, of San Clemente, who was the CEO of the San Clementebased American Information Strategies, Inc., which sold investor lead lists to telemarketing operations that solicited investors through telephone cold calls, appeared in court yesterday; James Lloyd, 47, of Lake Arrowhead, who was a closer for Cinamour and

later operated his own boiler room that raised money for Cinamour and Q Media, will appear in court Thursday, June 23; Paul Baker, 50, of Palm Springs, a closer for Cinamour, who later operated his own boiler room under the name Independent Essentials that raised funds for Cinamour, will appear in court today; Bart Douglas Slanaker, 48, of Panorama City (who is already in custody after being charged earlier this year in another movierelated telemarketing case), was another closer who helped raise funds for Cinamour in several capacities; Allen Bruce Agler, 54, of Canyon County, a closer who used the name Paul Kingman and raised funds for From Mexico With Love, appeared in court yesterday; Albert Greenhouse, 58, of Delrey Beach, Florida, who also raised funds for From Mexico With Love, will appear in court today; DeLitha Jones-Floyd, 54, of Lancaster, another closer, will appear in court Thursday, June 23; Brian Emmanuel Ellis, 35, of Saugus, another closer, appeared in court yesterday; Daniel Morabito, 31, of Redondo Beach, a closer, appeared in court yesterday; David Nelson, 40, of Eagle Rock, a closer, will appear in court Thursday, June 23; and Daryll Van Snowden, 40, formerly of Chatsworth and now of West Hollywood, another closer, is still being sought by authorities. All 12 defendants are charged in a conspiracy count, as well as in several of the 15 mail fraud counts, nine wire fraud counts and 13 sale of unregistered securities counts that are alleged in the indictment. Additionally, Craft, Toll and Floyd are each named in at least one of five money laundering counts. The indictment also charges Slanaker with two counts of tax evasion. The 33-count Q Media indictment charges nine defendants, including Lloyd, Agler, Craft and Morabito. The indictment additionally charges: Robert Keskemety, 56, of Hallandale Beach, Florida, a closer, appeared in court yesterday; Jady Laurence Herrmann, 34, of Lake Arrowhead, a closer, appeared in court yesterday; Joseph McCarthy, 37, of Boynton Beach, Florida, a closer, will appear in court today; Matthew Bryan Wellman-Mackin, 30, of Manhattan Beach, a closer, appeared in

court yesterday; and Robert Ramirez, 44, of Sunland, who was hired by Sellers to handle investor relations, appeared in court yesterday. All nine defendants in the Q Media case, including those also charged in the Cinamour case, face charges of conspiracy, mail fraud, wire fraud and sale of unregistered securities. Lloyd is also charged in this indictment with two counts of money laundering. Craft is also charged in this indictment with two counts of tax evasion. Slanaker and another man who is now deceased were previously charged with fraudulently raising money for another independent movie by claiming, among other things, that well known stars were associated with the project (see: http:// www.justice.gov/usao/cac/pressroom/ pr2011/035.html). Slanaker, who is charged with mail fraud and wire fraud in this case, is currently scheduled to be tried in this case on August 16 in United States District Court in Los Angeles. An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty. The charge of conspiracy carries a statutory maximum penalty of five years in federal prison or custody. The wire fraud and mail charges have a maximum possible sentence of 20 years. The money laundering counts alleged in the indictment carry maximum statutory penalties of 10 years. The charge of sale of unregistered securities has a maximum possible sentence of five years. And the tax evasion charges have a maximum possible sentence of five years. The investigation into fraudulent boiler rooms raising money for independent movies is being conducted by special agents with the Federal Bureau of Investigation and IRSCriminal Investigation. To find additional federal criminal news, please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal. The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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please read The Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.