Federal Criminal Defense Lawyers

Friday, March 2, 2012

www.McNabbAssociates.com

Homebuilder Indicted in an Alleged $14.7 Million Construction Investment Scheme

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 10:44 AM March 2, 2012

The Federal Bureau of Investigation (FBI) on March 1, 2012 released the following: BALTIMOREA federal grand jury indicted Patrick J. Belzner, a/k/a Patrick McCloskey, age 42, of Glen Arm, Maryland, yesterday for conspiring to commit wire fraud arising from an investment fraud scheme. The indictment was unsealed today upon the arrest of the defendant. The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; and Acting Special Agent in Charge Eric C. Hylton of the Internal Revenue ServiceCriminal Investigation, Washington, D.C. Field Office. According to the indictment, from at least August 2009 to August 2011, Belzner, a homebuilder, and a co-conspirator also in the home building business, targeted individuals seeking investment opportunities or commercial real estate development lending. Belzner, who falsely presented himself as Patrick McCloskey with certain investors, instructed the victims that in order to obtain loans for commercial real estate projects, the purported lenders required that large sums of money be deposited in an escrow bank account to show liquidity. The indictment alleges that in order to gain their victims confidence, Belzner and his co-conspirators caused victim investors and borrowers to enter into escrow agreements which stated that no person other than the victims had the ability to remove the escrowed funds without the victims permission. Belzner

told the victims that a co-conspirator had to be the attorney assigned as the escrow agent. The indictment alleges that Belzner and his co-conspirator fraudulently withdrew approximately $14,730,780 from the escrow accounts and used these stolen funds to satisfy their business and personal debts. To conceal their scheme, Belzner and his co-conspirators allegedly e-mailed fabricated bank statements to victims that misrepresented the escrow account balance and the date by when the investors money would be returned. Belzner and his co-conspirators also used funds fraudulently obtained from some victim investors to repay money owed to previous victim investors, or to other individuals to whom the conspirators owed debts. The indictment seeks forfeiture at least $14,730,780, the amount of money stolen from victim investors. Belzner faces a maximum sentence of 20 years in prison and a fine of $250,000 or twice the value of the gain or loss. Belzner had his initial appearance today in federal court in Baltimore. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. This law enforcement action is part of President Barack Obamas Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of

criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. United States Attorney Rod J. Rosenstein thanked the FBI and IRS-CI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Sean OConnell and Sujit Raman, who are prosecuting the case. Douglas McNabb McNabb Associates, P.C.s Federal Criminal Defense Attorneys Videos: Federal Crimes Be Careful Federal Crimes Be Proactive Federal Crimes Federal Indictment Federal Crimes Detention Hearing Federal Mail Fraud Crimes To find additional federal criminal news, please read Federal Crimes Watch Daily. Douglas McNabb and other members of the U.S. law firm practice and write and/ or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions 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.

Readout of Attorney General Eric Holder and Secretary Janet Napolitanos Trip to Ottawa, Canada
(USDOJ: Justice News)
Submitted at 4:10 PM March 2, 2012

Ohio Man Pleads Guilty for Cross Burning

(USDOJ: Justice News)
Submitted at 6:50 PM March 2, 2012

U.S. Attorney General Eric Holder and Secretary of Homeland Security Janet Napolitano today visited Ottawa, Canada to participate in the Cross-Border Crime Forum with Canadian Minister of Justice

and Attorney General Rob Nicholson, and Canadian Minister of Public Safety Vic Toews. Secretary Napolitano, Attorney General Holder and Minister Toews also signed a memorandum of understanding to better prevent and combat human smuggling and trafficking.

Brandon Rhodes, 20, of Marengo, Ohio, pleaded guilty yesterday to a charge related to the burning of a cross in the yard of an African-American juvenile in March 2011.

Justice Antitrust FBI US Marshals

Federal Criminal Defense Lawyers

Manager for Violent Fraudulent Document Ring Sentenced to Two Life Sentences for Murdering Rival Vendor
(USDOJ: Justice News)
Submitted at 7:10 PM March 2, 2012

Miami Taxidermist Sentenced for Wildlife Smuggling

(USDOJ: Justice News)
Submitted at 12:13 PM March 2, 2012

U.S. v. Willy Cabeza

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:47 PM March 2, 2012

Sentencing hearing is scheduled for March 7, 2012 at 10:00 a.m. Eastern

Edy Oliverez-Jiminez, aka Daniel, Erasmo, Ulysses and Jesus, 25, of Virginia Beach, Va., was sentenced today to two consecutive life terms on prison, after having been convicted by a jury for racketeering, murder, kidnapping, conspiracy to commit money laundering and conspiracy to produce and transfer false identification documents.

Enrique Gomez De Molina, 48, of Miami Beach, Fla., was sentenced in federal court in Miami today to 20 months in prison for illegal trafficking in endangered and protected wildlife.

FBIs Top Ten News Stories for the Week Ending March 2, 2012
fbi (Current)
Submitted at 6:00 AM March 2, 2012

U.S. Files False Claims Act Lawsuit Against Florida-based Federal Grant Recipient
(USDOJ: Justice News)
Submitted at 10:22 AM March 2, 2012

Oregon Man Convicted for Helping Thousands Steal Internet Service

(USDOJ: Justice News)
Submitted at 10:28 AM March 2, 2012

Washington, D.C.

The United States has filed a complaint under the False Claims Act against the Florida-based Technological Research and Development Authority (TRDA), the Justice Department announced today.

Ryan Harris, 26, was the owner of TCNISO, a company that distributed products enabling users to steal Internet service.

U.S. v. Yazaki Corporation

(Antitrust Division: Criminal Case Filings)
Submitted at 1:22 PM March 2, 2012

Kazakhstani National Pleads Guilty to Money Laundering for Hack and Dump Scheme
(USDOJ: Justice News)
Submitted at 7:15 PM March 2, 2012

Document filed on March 1, 2012 Plea Agreement

U.S. v. George Gonzalez

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:48 PM March 2, 2012

Alexey Li, 21, a citizen of Kazakhstan who entered the United States on a student visa, pleaded guilty today before U.S. District Judge Ewing Werlein, Jr. to aiding and abetting money laundering.

Sentencing hearing is scheduled for March 7, 2012 at 11:00 a.m. Eastern

U.S. v. Shiu-Min Hsu

(Antitrust Division: Criminal Case Filings)
Submitted at 2:21 PM March 2, 2012

Americas Most Wanted Arrested

(U.S. Marshals Service News)
Submitted at 11:10 AM March 2, 2012

Document filed on February 24, 2012 Information

U.S. v. Luis Soto

(Antitrust Division: Upcoming Public Hearings)
Submitted at 12:49 PM March 2, 2012

March 01, 2012 - On February 29, 2012, Deputies with the U.S. Marshals Service arrested accused human trafficking offender Rufus Byers. Byers has been wanted since December 2011 and was featured on last Friday's America's Most Wanted.

Sentencing hearing is scheduled for March 7, 2012 at 11:00 a.m. Eastern