Tag: count indictment

Local Defense Attorney and Others Arrested in Connection with Scheme to Obstruct Justice

HOUSTON—Abraham Moses Fisch, 52, a criminal defense attorney in Houston, has been arrested on charges of conspiracy, obstruction of justice, money laundering, conspiracy to commit money laundering, and failure to file tax returns, United States Attorney Kenneth Magidson announced today along with Stephen L. Morris, special agent in charge of the FBI, and Lucy Cruz, special agent in-charge of Internal Revenue Service – Criminal Investigations (IRS-CI). Fisch and his wife, Monica Bertman, 60, were arrested just minutes ago and are expected to appear before U.S. Magistrate Judge Frances H. Stacy later today.

The indictment was returned under seal Oct. 19, 2011. On Monday, Oct. 24, 2011, the 21-count indictment was partially unsealed as to a third defendant, Lloyd Glen Williams, 67, a former used car financier. Upon the arrest of Fisch and Bertman today, the indictment was unsealed in its entirety.

The indictment alleges that from August 2006 to Oct. 19, 2011, Fisch, Williams, and Bertman conspired to defraud defendants who were facing federal criminal charges in Houston. The indictment states that the fraud was perpetrated in at least five different federal criminal cases including U.S. v. Edilberto Portillo, et al. (H-06-182), U.S. v. Joey Herrera, et al. (H-07-038), U.S. v. Umawa Oke Imo, et al. (H-09-426) and U.S. v. Clifford Ubani and Princewill Njoku, et al. (H-09-421 and H-10-416).

According to the indictment, Williams, although not an attorney, held himself out as someone who could resolve criminal cases through his contacts with government officials. Williams, Fisch, and Bertman worked together to solicit federal criminal defendants as clients under false pretenses. They claimed to the defendants that Williams had the power to cause their criminal charges to be dismissed or their sentence reduced if they would hire Fisch as their attorney, pay a large sum of money to Fisch and Williams and then provide Williams with information about their crimes. Williams claimed he would then pass that information along to contacts in various federal agencies. In return, Williams claimed his contacts would cause the criminal charges against the defendants to be dismissed or their sentences reduced.

According to the indictment, Williams claimed to the defrauded defendants that his alleged contacts were high-level government officials within the Central Intelligence Agency, the Department of Justice, and the Department of Health and Human Services. In addition, Williams, Fisch, and Bertman falsely stated to some defendants that government officials were being bribed on behalf of the defendants with the funds the defendants had paid to Williams and Fisch. According to the indictment, however, no government officials received bribes and Williams’ supposed contacts were either retired government officials, were not in contact with Williams or otherwise had no ability or willingness to influence the outcome of a defendant’s case.

Williams and Fisch, the indictment alleges, undermined the functioning of the federal justice system by: (1) misleading defendants about the nature of the cooperation process with the government and interfering with defendants’ cooperation with the government, including failing to pass information from a defendant to the government; (2) interfering with plea negotiations with the government by preventing defendants from timely entering guilty pleas because of the mistaken belief their case was going to be dismissed; (3) interfering with defendants’ relationships with former and subsequent counsel, including communicating with represented defendants unbeknownst to their legitimate counsel, causing defendants to fire former counsel, causing defendants not to communicate fully and truthfully with their attorneys and causing defendants not to assist their attorneys in preparing their defense or in negotiating guilty pleas; and (4) insisting that defendants keep the nature of Williams’ so-called “assistance” secret from the court, the government and other attorneys.

In addition, the indictment charges Williams and Fisch with money laundering based on their deposits of the funds they earned from this scheme, which totaled at least $1,480,000. The United States is seeking forfeiture of that amount as money derived from the criminal activity. The indictment also charges Fisch with failing to timely file tax returns each year during the period that he obtained money from this scheme, specifically 2006 through 2010.

If convicted, Fisch faces a prison term of five years imprisonment for the conspiracy charge, 10 years on each of the four counts of obstruction of justice, 10 years for each of the nine counts of money laundering, 10 years for conspiracy to commit money laundering, and one year for each of the five counts of failure to file tax returns in addition to substantial monetary fines. Bertman faces a maximum five years and 10 years, respectively, if convicted of conspiracy and one count of obstruction of justice in addition to a $250,000 fine.

Two days subsequent to his arrest, on Oct. 26, 2011, Williams entered a plea of guilty to counts one and 21 of the indictment that alleged knowingly conspiring to corruptly endeavor to influence, obstruct, and impede the due administration of justice and willfully making and subscribing to a materially false 2007 Income Tax Return. For these convictions, he faces a maximum possible punishment of five years for the conspiracy charge and three years in prison for filing a false tax return as well as a $250,000 fine.

The investigation that led to this indictment and the arrests and plea was conducted by the FBI and IRS-CI. The case is being prosecuted by Assistant United States Attorney Robert S. Johnson of the Southern District of Texas.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

FBI – Leader of $200 Million Real Estate Investment Scam Charged

NEWARK, NJ—Eliyahu Weinstein, a/k/a “Eli Weinstein,” a/k/a “Edward Weinstein,” a/k/a “Eddie Weinstein,” was indicted today by a federal grand jury in Newark on charges alleging he ran an investment fraud scheme causing losses of at least $200 million, New Jersey U.S. Attorney Paul J. Fishman announced.

The 45-count Indictment charges Weinstein, 36, of Lakewood, N.J., with one count of conspiracy to commit wire fraud, 29 counts of wire fraud, two counts of wire fraud while on pretrial release, one count of bank fraud and 12 counts of money laundering. Weinstein will be arraigned on the Indictment on a date to be determined.

Weinstein was previously charged by Complaint on Aug. 12, 2010, along with then Manalapan, N.J., resident Vladimir Siforov, 44. Both defendants were charged with one count of wire fraud and Weinstein was charged with one count of bank fraud. Siforov, who remains a fugitive, is named in three wire fraud counts in the Indictment.

“According to the Indictment, Weinstein’s exploitation of investors’ trust was so shameless he used doctored documents for properties he didn’t own—including in a town that doesn’t exist—and continued to commit crimes while out on bail,” said U.S. Attorney Fishman. “With promises of sound investments and charitable donations, he allegedly stole $200 million, spending freely on fancy cars, jewelry and gambling trips. And in using victims’ money to collect Judaica, Weinstein robbed from his own community’s present to stockpile artifacts of its past.”

According to the Indictment and other documents filed in Newark federal court:

From at least as early as June 2004 through August 2011, Weinstein, with the help of Siforov and others, orchestrated a real estate investment fraud scheme out of Lakewood that has resulted in losses to victim investors of at least $200 million.

To induce victims to invest, Weinstein and others made various types of materially false and misleading statements and omissions. For example, Weinstein and others represented to victims that Weinstein’s inside access to certain real estate opportunities allowed him to buy particular properties at below-market prices. Weinstein and others also told victims that their money would be used to purchase a specific property, and the property would be quickly resold—or “flipped”—to a third-party purchaser lined up by Weinstein. Victims were also told that their money would be held in escrow until the closing of a purported real estate transaction.

Weinstein bolstered his lies by creating, and causing to be created, various types of fraudulent documents, including “show checks,” which Weinstein led victims to believe represented Weinstein’s investments in specific transactions but were never deposited; forged checks, which had actually been negotiated for small amounts, but Weinstein altered to appear worth millions of dollars; operating agreements, which showed that victims had ownership interests in specific properties they did not; and various kinds of forged legal documents, including leases, mortgages, and deeds.

Weinstein initially targeted victims from the Orthodox Jewish community, of which he was a member, exploiting his standing in and knowledge of the customs and practices of the community to further the scheme. Weinstein abused the community’s practice of engaging in transactions based on trust and without paperwork to obtain money from his victims without substantial written records. Weinstein would then falsely represent that specific real estate transactions existed, that the victims’ monies were used to fund those transactions, or that the victims’ profits from those transactions were being “rolled” into new investments.

By 2010, Weinstein had tarnished his reputation in the community due to the massive losses caused by the scheme. In April 2010, Weinstein and others began soliciting victims from outside of the Orthodox Jewish community, whom they defrauded out of millions of dollars.

Weinstein then took significant portions of his victims’ money, which had been provided for specific real estate transactions, and used it for other purposes he did not disclose to victims. These included funding unrelated real estate transactions in which Weinstein was engaged; paying prior victims; and making charitable and religious contributions which he used to elevate his reputation within the Orthodox Jewish community.

Weinstein also used millions of dollars fraudulently obtained from his victims to fund his own lavish spending, including millions of dollars worth of antique Judaica and other artwork; a multimillion-dollar collection of jewelry and watches; gambling in Las Vegas and elsewhere; and his personal expenses, including millions of dollars in credit card bills, millions of dollars in legal bills, and luxury car lease payments.

If convicted of the wire fraud charges, Weinstein and Siforov each face a maximum potential penalty of 20 years in prison and a $250,000 fine per count. If convicted on the wire fraud while on pretrial release charges, Weinstein faces a maximum potential penalty of 30 years in prison per count. Weinstein also faces a maximum potential penalty of 20 years in prison and a $250,000 fine on the wire fraud conspiracy charge; 30 years in prison and a $1 million fine on the bank fraud charge; and a maximum potential penalty of 10 years in prison and a $250,000 fine on each of the money laundering charges.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, for their work leading the investigation of this case. He also credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, for their important contributions to the investigation.

The government is represented by Assistant U.S. Attorneys Zach Intrater and Gurbir S. Grewal of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.

If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.

This case was brought in coordination with President Barack Obama’s 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.

NEWARK, NJ—Eliyahu Weinstein, a/k/a “Eli Weinstein,” a/k/a “Edward Weinstein,” a/k/a “Eddie Weinstein,” was indicted today by a federal grand jury in Newark on charges alleging he ran an investment fraud scheme causing losses of at least $200 million, New Jersey U.S. Attorney Paul J. Fishman announced.

The 45-count Indictment charges Weinstein, 36, of Lakewood, N.J., with one count of conspiracy to commit wire fraud, 29 counts of wire fraud, two counts of wire fraud while on pretrial release, one count of bank fraud and 12 counts of money laundering. Weinstein will be arraigned on the Indictment on a date to be determined.

Weinstein was previously charged by Complaint on Aug. 12, 2010, along with then Manalapan, N.J., resident Vladimir Siforov, 44. Both defendants were charged with one count of wire fraud and Weinstein was charged with one count of bank fraud. Siforov, who remains a fugitive, is named in three wire fraud counts in the Indictment.

“According to the Indictment, Weinstein’s exploitation of investors’ trust was so shameless he used doctored documents for properties he didn’t own—including in a town that doesn’t exist—and continued to commit crimes while out on bail,” said U.S. Attorney Fishman. “With promises of sound investments and charitable donations, he allegedly stole $200 million, spending freely on fancy cars, jewelry and gambling trips. And in using victims’ money to collect Judaica, Weinstein robbed from his own community’s present to stockpile artifacts of its past.”

According to the Indictment and other documents filed in Newark federal court:

From at least as early as June 2004 through August 2011, Weinstein, with the help of Siforov and others, orchestrated a real estate investment fraud scheme out of Lakewood that has resulted in losses to victim investors of at least $200 million.

To induce victims to invest, Weinstein and others made various types of materially false and misleading statements and omissions. For example, Weinstein and others represented to victims that Weinstein’s inside access to certain real estate opportunities allowed him to buy particular properties at below-market prices. Weinstein and others also told victims that their money would be used to purchase a specific property, and the property would be quickly resold—or “flipped”—to a third-party purchaser lined up by Weinstein. Victims were also told that their money would be held in escrow until the closing of a purported real estate transaction.

Weinstein bolstered his lies by creating, and causing to be created, various types of fraudulent documents, including “show checks,” which Weinstein led victims to believe represented Weinstein’s investments in specific transactions but were never deposited; forged checks, which had actually been negotiated for small amounts, but Weinstein altered to appear worth millions of dollars; operating agreements, which showed that victims had ownership interests in specific properties they did not; and various kinds of forged legal documents, including leases, mortgages, and deeds.

Weinstein initially targeted victims from the Orthodox Jewish community, of which he was a member, exploiting his standing in and knowledge of the customs and practices of the community to further the scheme. Weinstein abused the community’s practice of engaging in transactions based on trust and without paperwork to obtain money from his victims without substantial written records. Weinstein would then falsely represent that specific real estate transactions existed, that the victims’ monies were used to fund those transactions, or that the victims’ profits from those transactions were being “rolled” into new investments.

By 2010, Weinstein had tarnished his reputation in the community due to the massive losses caused by the scheme. In April 2010, Weinstein and others began soliciting victims from outside of the Orthodox Jewish community, whom they defrauded out of millions of dollars.

Weinstein then took significant portions of his victims’ money, which had been provided for specific real estate transactions, and used it for other purposes he did not disclose to victims. These included funding unrelated real estate transactions in which Weinstein was engaged; paying prior victims; and making charitable and religious contributions which he used to elevate his reputation within the Orthodox Jewish community.

Weinstein also used millions of dollars fraudulently obtained from his victims to fund his own lavish spending, including millions of dollars worth of antique Judaica and other artwork; a multimillion-dollar collection of jewelry and watches; gambling in Las Vegas and elsewhere; and his personal expenses, including millions of dollars in credit card bills, millions of dollars in legal bills, and luxury car lease payments.

If convicted of the wire fraud charges, Weinstein and Siforov each face a maximum potential penalty of 20 years in prison and a $250,000 fine per count. If convicted on the wire fraud while on pretrial release charges, Weinstein faces a maximum potential penalty of 30 years in prison per count. Weinstein also faces a maximum potential penalty of 20 years in prison and a $250,000 fine on the wire fraud conspiracy charge; 30 years in prison and a $1 million fine on the bank fraud charge; and a maximum potential penalty of 10 years in prison and a $250,000 fine on each of the money laundering charges.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, for their work leading the investigation of this case. He also credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, for their important contributions to the investigation.

The government is represented by Assistant U.S. Attorneys Zach Intrater and Gurbir S. Grewal of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.

If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.

This case was brought in coordination with President Barack Obama’s 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.

FBI-TOP-SECRET-Virginia Man Accused of Acting as Unregistered Agent of Syrian Government and Spying on Syrian Protestors in America

WASHINGTON—Mohamad Anas Haitham Soueid, 47, a resident of Leesburg, Va., has been charged for his alleged role in a conspiracy to collect video and audio recordings and other information about individuals in the United States and Syria who were protesting the government of Syria and to provide these materials to Syrian intelligence agencies in order to silence, intimidate, and potentially harm the protestors.

The charges were announced by Lisa Monaco, Assistant Attorney General for National Security; Neil MacBride, U.S. Attorney for the Eastern District of Virginia; and James McJunkin, Assistant Director in Charge of the FBI Washington Field Office.

Soueid, aka “Alex Soueid” or “Anas Alswaid,” a Syrian-born naturalized U.S. citizen, was charged by a federal grand jury on Oct. 5, 2011, in a six-count indictment in the Eastern District of Virginia. Soueid is charged with conspiring to act and acting as an agent of the Syrian government in the United States without notifying the Attorney General as required by law; two counts of providing false statements on a firearms purchase form; and two counts of providing false statements to federal law enforcement.

Soueid was arrested on Oct. 11, 2011, and will make an initial appearance before U.S. Magistrate Judge Theresa C. Buchanan today at 2:00 p.m. If convicted, he faces a maximum penalty of 15 years in prison on the conspiracy and foreign agent charges, 15 years in prison on the firearms purchase charges and 10 years in prison on the false statement charges.

“Today’s indictment alleges that the defendant acted as an unregistered agent of the Syrian government as part of an effort to collect information on people in this country protesting the Syrian government crack-down. I applaud the many agents, analysts and prosecutors who helped bring about today’s case,” said Assistant Attorney General Monaco.

“The ability to assemble and protest is a cherished right in the United States, and it’s troubling that a U.S. citizen from Leesburg is accused of working with the Syrian government to identify and intimidate those who exercise that right,” said U.S. Attorney MacBride. “Spying for another country is a serious threat to our national security, especially when it threatens the ability of U.S. citizens to engage in political speech within our own borders.”

“Our national security is threatened when foreign governments use unregistered agents in an attempt to influence and intimidate those who live here lawfully,” said FBI Assistant Director in Charge McJunkin. “Their alleged acts desecrate the values cherished in our fair and open society. The FBI will be counted on to detect and deter unregistered agents who attempt clandestine activities on behalf of a foreign political power and work to bring them swiftly to justice.”

According to the indictment, since March 2011, Soueid has acted in the United States as an agent of the Syrian Mukhabarat, which refers to the intelligence agencies for the Government of Syria, including the Syrian Military Intelligence and General Intelligence Directorate. At no time while acting as an agent of the government of Syria in this country did Soueid provide prior notification to the Attorney General as required by law, the indictment alleges.

Under the direction and control of Syrian officials, Soueid is accused of recruiting individuals living in the United States to collect information on and make audio and video recordings of protests against the Syrian regime—including recordings of conversations with individual protestors—in the United States and Syria. He is also charged with providing the recordings and other information to individuals working for the Mukhabarat. According to the indictment, Soueid and others conspired to use this information to undermine, silence, intimidate and potentially harm those in the United States and Syria who engaged in the protests.

The indictment states that in late June 2011, the Syrian government paid for Soueid to travel to Syria, where he met with intelligence officials and spoke with President Bashar al-Assad in private.

He returned to the United States in early July 2011, and he was searched and questioned at Dulles International Airport upon his arrival. The indictment states that Soueid communicated with his “boss,” an unindicted co-conspirator (or UCC-1) who was working for the Mukhabarat, soon after to alert him of the search and questioning and to assure the individual that the airport encounter would not “stop the project.”

In addition to the recordings, Soueid is accused of providing the Mukhabarat contact information, including phone numbers and e-mail addresses, for protestors in the United States. In a handwritten letter sent to UCC-1, Soueid allegedly expressed his belief that violence against protestors—including raiding their homes—was justified and that any method should be used to deal with the protestors. The indictment also alleges that Soueid provided information regarding U.S. protestors against the Syrian regime to an individual who worked at the Syrian Embassy in Washington, D.C.

On Aug. 3, 2011, FBI agents interviewed Soueid, and the indictment accuses him of lying to the agents when he denied that he had collected information on U.S. persons and transmitted that information to the government of Syria. In addition, Soueid allegedly made further false statements when he denied to FBI agents that he had directed someone to audio or videotape a conversation, meeting, rally or protest, or that he was aware of any individual taking photographs or videotaping people. He also allegedly made false statements when he denied that he had ever been an agent of the Syrian government or a foreign intelligence officer.

The indictment states that the day following the interview, Soueid asked UCC-1 to inform the Mukhabarat about his FBI interview.

In addition, the indictment alleges that, when purchasing a Beretta pistol on July 11, 2011, Soueid listed a false current residence address on a firearms purchase application and in records that were kept by a licensed firearms dealer.

This investigation is being conducted by the FBI’s Washington Field Office with assistance from the Loudon County, Va., Sheriff’s Office. The prosecution is being handled by Assistant U.S. Attorneys Dennis Fitzpatrick and Neil Hammerstrom of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Brandon L. Van Grack of the Counterespionage Section of the Justice Department’s National Security Division.

The public is reminded that an indictment contains mere allegations and that a defendant is presumed innocent unless and until proven guilty.