New York Paralegal Blog

Gary Foster, 35, a former vice president in Citigroup Inc.’s treasury finance department, was sentenced to 97 months’ imprisonment today on a conviction for bank fraud arising from his embezzlement of more than $22 million from Citigroup. Foster was sentenced by the Honorable Eric N. Vitaliano, United States District Judge, at the United States Courthouse in Brooklyn.

Preet Bharara, the United States Attorney for the Southern District of New York, Janice K. Fedarcyk, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Toni Weirauch, the Acting Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), Robert L. Panella, Special Agent-in-Charge for the New York Regional Office of the U.S. Department of Labor’s Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations (“DOL-OIG”), and Jonathan Kay, the Director for the New York Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration (“DOL-EBSA”), announced that PETER MADOFF, the former Chief Compliance Officer and Senior Managing Director of Bernard L. Madoff Investment Securities LLC (“BLMIS”), pled guilty

CHICAGO – An $11 million consent decree entered here today in federal court has ended the U.S. Equal Employment Opportunity Commission’s (EEOC) race harassment and discrimination lawsuit against a major transportation company. Magistrate Judge Susan E. Cox granted preliminary approval of the decree.

Earlier today, the U.S. Attorney’s Office for the Eastern District of New York filed a criminal complaint against FalconStor Software, Inc. (“FalconStor”) alleging that the company conspired to pay more than $300,000 in bribes to executives of J.P. Morgan Chase Bank, N.A. (“J.P. Morgan Chase”) to obtain over $12 million in electronic storage licencing contracts. FalconStor was also charged with conspiring to falsify its corporate books and records to cover up the bribery scheme.

McALLEN, Texas – Frank A. Mora, individually, and as the authorized corporate officer of Two Lac, Inc. d/b/a Oasis One Dry Cleaners, a McAllen, Texas dry cleaning and laundry service, will pay $43,000 and provide significant remedial relief to a former female employee who was subjected to a sexually hostile work environment, the U.S. Equal Employment Opportunity Commission (EEOC) announced today.

ST. LOUIS – A St. Louis restaurant will pay $23,000 and furnish other relief to settle a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

Earlier today, former New York City Police Officer Michael Daragjati was sentenced to 9 months of imprisonment for violating the civil rights of an African-American man by falsely charging him with a crime, and a consecutive sentence of 48 months for threatening and assaulting another man whom Daragjati thought had stolen his snowplow equipment. The sentencing proceeding took place before United States District Judge William F. Kuntz, II.

ALEXANDRIA, VA—Amine El Khalifi, a 29-year-old resident of Alexandria, Virginia, pleaded guilty today in federal court in the Eastern District of Virginia in connection with his efforts to carry out a suicide bomb attack on the U.S. Capitol Building in February 2012 as part of what he intended to be a terrorist operation.

Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that INOCENCIA ORTEGA and her husband, LUCIANO MENDEZ-ROJAS, pled guilty in Manhattan federal court for engaging in conduct that led to the sexual exploitation of a child. ORTEGA pled guilty today to conspiring to commit the sexual exploitation of a child and making false statements relating to a sex offense before United States District Judge Paul A. Engelmayer. MENDEZ-ROJAS pled guilty to committing the sexual exploitation of a child and distributing child pornography before Judge Engelmayer on June 11, 2012.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that David Kanwisher was sentenced today in Manhattan federal court to 27 months in prison for his role in a scheme to illegally transport firearms and stolen goods across state lines. Kanwisher pled guilty on February 15, 2012 to one count of conspiracy to transport firearms interstate and one count of conspiracy to transport and receive stolen merchandise before United States District Judge Katherine B. Forrest, who also imposed today’s sentence.

WASHINGTON—Three former executives of Fair Financial Company, an Ohio financial services business, were found guilty for their roles in a scheme to defraud approximately 5,000 investors of more than $200 million, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Joseph H. Hogsett, U.S. Attorney for the Southern District of Indiana; and Special Agent in Charge Robert Holley of the FBI in Indiana announced today.

Manhattan District Attorney Cyrus R. Vance, Jr., announced the indictment of STEPHEN JACKSON, 54, an attorney licensed in New York, for stealing approximately $110,000 from three clients’ settlement funds. JACKSON is accused of taking much of the money as cash through hundreds of ATM withdrawals, and using other stolen funds to pay former clients whose settlements he had previously taken. JACKSON is also charged with stealing more than $150,000 from Capital One Bank in a fraudulent check scheme, and with lying and falsifying evidence in proceedings before the committee that investigates complaints of attorney misconduct. The indictment charges JACKSON with Grand Larceny, Perjury, Forgery, Identity Theft, and other related charges.[1]

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the sentencing of the leader and 15 other members of “S3,” a credit card forgery and identity theft ring based in Brooklyn that compromised hundreds of bank accounts, and fraudulently purchased Apple products from stores around the country to resell for profit. Today in New York State Supreme Court, leader SHAHEED BILAL, a/k/a “SHA,” 29, was sentenced to four-and-a-half-to-nine years in state prison. One of his brothers, RAHIM BILAL, a/k/a “MARLO,” a/k/a “STARLO,” 23, was previously sentenced to two-to-six years in prison. Another brother, ALI BILAL, a/k/a “ACKII,” 25, was previously sentenced to one-to-three years in prison. Each of the brothers pleaded guilty to Grand Larceny in the Second Degree. In all, 16 members of this ring have pleaded guilty; charges against eight individuals are still pending[1].

BALTIMORE -- Johns Hopkins Home Care Group, Inc. (JHHCG), a full-service home health care provider, will pay $160,000 and provide other relief to settle an Americans with Disabilities Act (ADA) lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC). In its lawsuit, the EEOC alleged that JHHCG violated the ADA when it discriminated against an employee because of her disability, failed to provide her with a reasonable accommodation for her disability, and retaliated against her for bringing her claims to the EEOC.

HOUSTON—Gwendolyn Kay Frank, 43, of Houston, has entered a plea of guilty to conspiracy to violate the Anti-Kickback Statue for her role in role in the $45 million City Nursing health care scandal, United States Attorney Kenneth Magidson announced today.

Manhattan District Attorney Cyrus R. Vance, Jr., announced the results of the investigation and prosecution of one of Central Harlem’s most destructive criminal street gangs, referred to as “ONE TWENTY-NINE” or “GOODFELLAS/THE NEW DONS,” which terrorized the neighborhood surrounding West 129th Street between Lenox and Fifth Avenues. Thirteen members of the gang have previously pleaded guilty to importing, possessing, and using firearms over the course of the conspiracy.

DENVER — Four individuals were indicted recently for computer crime, filing false tax returns and trademark counterfeiting for selling counterfeit cycling jerseys and bicycle components on the Internet, announced Monday by Colorado Attorney General John Suthers. Counterfeit items seized from the main target's apartment have an estimated industry manufacturer's suggested retail price (MSRP) value of $285,306.

By JEFF D. GORMAN (CN) - A New York appeals court ordered the two-year suspension of Rochester lawyer who grabbed the breasts of an opposing attorney and exposed his genitalia to her. Lawrence Baker, whom the New York Supreme Court admitted as a lawyer in 1979, faced charges from a grievance committee that he engaged in sexually inappropriate conduct during a pretrial conference.

Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Ronald J. Verrochio, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service, announced today the filing of a civil complaint in federal court in Brooklyn against Yall Inc., a Brooklyn-based Internet vendor of consumer electronics, and its principal, Hang Feng (“Nick”) Wu, for knowingly underpaying postage on massive amounts of mail, causing millions of dollars in losses to the United States Postal Service.

Preet Bharara, the United States Attorney for the Southern District announced that RAJAT K. GUPTA, former corporate chairman of an international consulting firm, and a member of the Boards of Directors of The Goldman Sachs Group, Inc. (“Goldman Sachs”) and the Procter & Gamble Company (“P&G”), was found guilty today by a jury in Manhattan federal court of conspiracy and securities fraud crimes stemming from his involvement in an insider trading scheme with his business partner and friend, Raj Rajaratnam, the founder and former head of the Galleon Group.

By CHRIS MARSHALL SAN JOSE, Calif. (CN) - Apple may be liable for sending unauthorized iPhone user information to the third parties behind applications, but the application developers are in the clear, a federal judge ruled.

Preet Bharara, the United States Attorney for the Southern District of New York, Douglas H. Shulman, the Commissioner of the Internal Revenue Service (“IRS”), and John A. DiCicco, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced today that BDO USA, LLP (formerly BDO Seidman LLP, hereafter “BDO”) admitted to criminal wrongdoing and agreed to pay $50 million to the United States in connection with its participation in a tax shelter fraud scheme that generated at least $6.5 billion in phony tax losses for wealthy clients.

WASHINGTON – Seven individuals and four check cashing businesses were charged today in the Eastern District of New York and the Central District of California for their alleged roles in separate schemes to violate the Bank Secrecy Act (BSA). The defendants allegedly failed to follow reporting and anti-money laundering requirements for transactions totaling more than $50 million.

TAMPA, Fla. – SunTrust Banks, Inc., one of the nation’s largest providers of financial services, violated federal law when a branch manager sexually harassed three female employees at its Sarasota, Fla., Gulf Gate Branch Office location, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

Story by Sgt. Christopher Gaylord FORT IRWIN, Calif. – Riding through the sand in a Humvee away from an entry control point on the National Training Center, June 11, Sgt. 1st Class Charles Davis embraced one of his most cherished sentiments.

NASHVILLE – Whirlpool Corporation agreed to drop its appeal of a race and sex harassment judgment for over one million dollars and resolve the case with the U.S. Equal Employment Opportunity Commission (EEOC) and the Plaintiff-Intervenor, the federal agency announced today. The settlement comes almost six years to the day after the EEOC’s Memphis District Office first filed suit on June 9, 2006.

TULSA, Okla. – A Lincoln, Nebraska-based supplier of lighting products violated federal law by refusing to hire a qualified applicant at its Tulsa facility because of his religious beliefs, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today.

Manhattan District Attorney Cyrus R. Vance, Jr., today announced with the U.S. Department of Justice (DOJ) the resolution of a joint investigation into the criminal conduct of ING BANK, NV (ING), a Dutch bank, and the payment of $619 million in penalties and forfeiture to resolve the matter. In a Deferred Prosecution Agreement (DPA), ING admitted violating New York State law by falsifying the records of New York financial institutions.

NEWARK, N.J. – A Ukrainian citizen who founded and operated a hardcore child pornography website appeared in Newark federal court today to face child exploitation charges. He was extradited from Thailand over the weekend. The child porn investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) led to the conviction of more than 560 American subscribers to an illegal site in the most successful child pornography investigation in U.S. history.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that TODD HANSEN, the former President of the United States division of an international outdoor advertising company (the “Company”), pled guilty today in Manhattan federal court in connection with his participation in a five-year, $19.75 million accounting fraud scheme designed to make it appear that the Company was meeting certain performance targets so that he could receive higher salary increases and bonuses. HANSEN pled guilty today before U.S. District Judge Jed S. Rakoff.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHRISTOPHER MICHAEL COKE, the leader of the Jamaica-based international criminal organization, the “Shower Posse,” also known as the “Presidential Click,” was sentenced today to 23 years in prison. COKE pled guilty on August 31, 2011 to one count of racketeering conspiracy and one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering. He was sentenced today by U.S. District Judge Robert P. Patterson.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Zlata Blavatnik, a former clerk employed at the Conference on Jewish Material Claims Against Germany Inc. (the “Claims Conference”), pled guilty today in Manhattan federal court to conspiring to defraud programs administered by the Claims Conference and established to aid the survivors of Nazi persecution out of more than $57 million. Blavatnik was arrested and charged in October 2011 as part of an ongoing investigation that has resulted in charges against a total of 31 participants, 10 of whom were former Claims Conference employees, including a former director. She pled guilty today before U.S. Magistrate Judge Henry B. Pitman.

SIOUX CITY, Iowa – The U.S. Equal Employment Opportunity Commission (EEOC) announced today that a federal judge has approved a consent decree settling its sexual harassment lawsuit against Galt, Iowa-based Quality Egg, LLC. (EEOC v. Quality Egg, LLC, Civil Action No. 3:11-cv-03071-MWB).

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the sentencing of JOSEPH PABON, 28, to 25 years-to-life in prison for the murder of Eridania Rodriguez in July 2009. On April 2, 2012, PABON was convicted by a jury of Murder in the Second Degree and Kidnapping in the First Degree.

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the sentencing of PAUL HEWETT, 52, a member of a major narcotics trafficking organization operating out of East Harlem, to 22 ½ years in prison and 5 years post-release supervision. On April 2, 2012, HEWETT pleaded guilty to one count of Conspiracy in the Second Degree, one count of Criminal Possession of a Controlled Substance in the First Degree, and two counts of Criminal Possession of a Weapon in the Second Degree.

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the conviction of BORIS BROWN, 22, for fatally shooting seventeen-year-old Cheyenne Baez in East Harlem on October 3, 2010. A jury found BROWN guilty of Murder in the Second Degree and Criminal Possession of a Weapon in the Second Degree. Co-defendant DEVON COUGHMAN, 24, was found guilty of Criminal Possession of a Weapon in the Second Degree. The defendants are expected to be sentenced on June 25, 2012.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that FREDDIE GONZALEZ, the leader of a cocaine distribution conspiracy in the Bronx in the late 1980s through the mid-1990s, was sentenced today in Manhattan federal court to life in prison for his participation in four murders that were committed in connection with his cocaine trafficking business. GONZALEZ was found guilty in January 2012, after a two-week jury trial, of committing, and aiding and abetting the commission of, four murders while engaged in a conspiracy to distribute cocaine. Specifically, he was convicted for his participation in the 1990 murders of Carmelo and Marisol Gonzalez (no relation to GONZALEZ), Clement Bedword, and Carlos Polanco. GONZALEZ was sentenced today by U.S. District Judge Shira A. Scheindlin.