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A federal grand jury in Phoenix returned a nine-count indictment yesterday against Natalie Wisneski, 47, of Tempe, Ariz., for making campaign contributions in the name of another, causing false statements to be made to the federal election commission, filing false tax returns and conspiring to commit the above offenses.
The indictment alleges that Wisneski, as an officer and high-paid employee of the Fiesta Bowl, solicited campaign contributions from Fiesta Bowl employees for federal, state, and local candidates for elective office, and arranged to reimburse the employees for their contributions with Fiesta Bowl money.
Reimbursement for federal campaign contributions is prohibited under the Federal Election Campaign Act, and it also causes the political campaigns to file false information with the Federal Election Commission as to the identity of the true donor. The federal campaigns identified in the indictment have cooperated in the investigation, and no evidence suggests that the campaigns knew that the Fiesta Bowl reimbursed its employees.
The indictment also alleges that Wisneski filed false tax returns on behalf of the Fiesta Bowl when she denied in the tax returns that the Fiesta Bowl had any lobbying expenses or political expenditures. Wisneski will be summonsed to appear for her arraignment on Nov. 30, 2011, at 10:30 a.m. The overall investigation continues, and the Fiesta Bowl organization continues to cooperate with the investigation.
A conviction for conspiracy carries a maximum penalty of five years, a $250,000 fine or both. A conviction for making campaign contributions in the names of others in an amount greater than $10,000 in a single calendar year is punishable as a felony, and carries a maximum penalty of two years, a $250,000 fine or both; A conviction for making campaign contributions in the names of others in an amount between $2,000 and $10,000 in a single calendar year is punishable as a misdemeanor, and carries a maximum penalty of one year, a $100,000 fine or both.
A conviction for false statements carries a maximum penalty of five years, a $250,000 fine or both, and a conviction for filing false tax returns carries a maximum penalty of three years, a $250,000 fine or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation has been conducted by the FBI and the Internal Revenue Service - Criminal Investigation. Federal prosecutors and agents have also worked with state of Arizona prosecutors and agents who are participating in the continuing investigation conducted by the Arizona Attorney General’s Office.
The federal prosecution is being handled by Frank T. Galati and Gary M. Restaino, Assistant U.S. Attorneys from the District of Arizona’s Phoenix Office.
Source: FBI - Phoenix, AZ Office
A former member of the Arizona Army National Guard was charged today for his alleged role in a widespread bribery and illegal drug trafficking conspiracy that operated from January 2002 through March 2004, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
The 10-count indictment returned today in U.S. District Court in Arizona charges Adalberto Valenzuela, 31, of Tucson, Ariz., with two counts of conspiracy, two counts of bribery, two counts of bribery involving programs receiving federal funds, two counts of Hobbs Act extortion under color of official right and two counts of possession with intent to distribute cocaine. The charges arise from Operation Lively Green, an undercover FBI investigation that began in December 2001.
According to the indictment, Valenzuela was a corporal in the Arizona Army National Guard at the time he participated in the conspiracy. Valenzuela allegedly conspired to enrich himself by obtaining cash bribes from individuals he believed to be illegal narcotics traffickers, but who were actually FBI agents. The indictment alleges that in return for the bribes, Valenzuela used his official position as a corporal in the Arizona Army National Guard to assist, protect and participate in the activities of an illegal narcotics trafficking organization that was transporting and distributing cocaine within Arizona and from Arizona to other locations in the southwestern United States. In order to protect the shipments of cocaine, Valenzuela allegedly wore official uniforms and carried official forms of identification, used official vehicles, and used his official authority where necessary to prevent police stops, searches and seizures of the narcotics.
According to the indictment, Valenzuela transported cocaine on two separate occasions and, as a result, received bribe payments totaling $7,000 for the 40 kilograms of cocaine involved.
In 2006, an arrest warrant was issued for Valenzuela. Repeated attempts to locate and contact him have been unsuccessful. Valenzuela is now considered a fugitive and anyone with information regarding his whereabouts is encouraged to contact their local FBI office.
If convicted on the conspiracy charges, Valenzuela faces a maximum of five years in prison. The bribery and Hobbs Act charges each carry maximum prison sentences of 20 years. The federal program bribery charges each carry a maximum penalty of 10 years in prison, as do each of the drug conspiracy and possession charges. Valenzuela also faces a maximum $250,000 fine for each charged count.
To date, 57 additional defendants have been convicted and sentenced on related charges as part of Operation Lively Green. An additional 14 defendants have pleaded guilty in the Western District of Oklahoma in a related investigation known as Operation Tarnish Star.
Operation Lively Green cases are part of a joint investigation being conducted by the Southern Arizona Corruption Task Force (SACTF), which includes the FBI, the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement at the Department of Homeland Security, and the Tucson Police Department. The Arizona Air National Guard, Air Force Office of Special Investigations, Defense Criminal Investigative Service and the Criminal Investigation Division of the Internal Revenue Service are also participating in the investigation.
The case is prosecuted by Trial Attorneys Peter Koski and Monique Abrishami of the Criminal Division’s Public Integrity Section.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Source: FBI - Phoenix, AZ Office
Luis Belevan, 34, of Phoenix, pleaded guilty in federal court to conspiring to commit wire fraud and mail fraud. Belevan and his co-conspirator, were charged with defrauding at least 1,800 local distressed homeowners out of a $1,595 up-front fee for bogus promises of assistance in avoiding home foreclosure in 2009 and 2010.
“This defendant, owner of The Guardian Group, LLC, left over 1,800 victims in his wake,” said Acting U.S. Attorney Ann Birmingham Scheel. “The defendant used false promises on the company website to convince consumers that it could help them save their home—if the homeowner paid an upfront fee. The unfortunate reality was that the homeowners were never helped and they were scammed out of their hard-earned money. I want to thank the FBI for its work in this investigation and its continued efforts to address mortgage fraud.”
Special Agent in Charge, Phoenix Division, James L. Turgal, said, “The Phoenix metropolitan area has been severely impacted by the vast number of housing foreclosures. In many instances, a frustrated public, desperate to save their homes, have turned to re-modification companies, only to find empty promises and no relief. The plea of Belevan illustrates but one example of an individual taking advantage of the public’s trust and vulnerability by defrauding the public for their own personal gain. The FBI’s Mortgage Fraud Task Force and the United States Attorney’s Office will continue to investigate and prosecute those involved in foreclosure rescue scams to the fullest extent of the law.”
Belevan admitted in his guilty plea proceedings to telling homeowners who were unable to make their mortgage payments that his company, The Guardian Group, would purchase and refinance their mortgages based on the lower property values that followed the housing market crash of 2007.
Belevan falsely claimed that his company had access to a $40 billion hedge fund for this purpose, when it actually had no financing at all. Belevan’s company charged each homeowner a $1,595 up front fee, generating almost $3 million in funds in just nine months, which he and others used for personal expenses and for other failed business ventures.
A conviction for conspiracy carries a maximum penalty of five years’ imprisonment, a $250,000, or both. In determining an actual sentence, the judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.
As part of his plea agreement, Belevan agreed to pay restitution to the victims in the amount of $2,871,000.
Sentencing is set before Judge Teilborg on January 9, 2012.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-11-2025-PHX-JAT
RELEASE NUMBER: 2011-230(Belevan)
Source: FBI Phoenix
Christopher Loring Walters, 31, of Laveen, Ariz., was sentenced yesterday by U.S. District Judge G. Murray Snow to 27 months in federal prison. Walters pleaded guilty on February 24, 2011, to one count of conspiracy, one count of mail fraud, and one count of criminal copyright Infringement for his role in selling counterfeit brand-name software.
“Intellectual property crimes rob legitimate companies of revenue and deny customers quality, licensed products,” says Ann Birmingham Scheel, Acting U.S. Attorney for the District of Arizona. “We appreciate the diligence of the Software & Information Industry Association for bringing this case to the attention of our law enforcement partners.”
“Software counterfeiters cost legitimate businesses billions in lost revenue,” said FBI Special Agent in Charge James L. Turgal, Jr. “Investigating intellectual property theft is a top priority of the FBI’s Cyber Program and we will continue to work with our partners in law enforcement to combat these types of crimes.”
Between November 2003 and February 2006, Walters and his co-defendant, Matthew Purse, deceived consumers by mass producing counterfeit copies of brand-name software, from companies such as Adobe, Symantec, and others, and selling them for a discounted price over the Internet while claiming to be authorized distributors. They sold the counterfeit software using various eBay merchant accounts and commercial websites such as SoftwareDiner.com. Walters often used an alias to set up merchant and bank accounts in order to conceal his involvement in the criminal activity. Purse was sentenced in January 2010 and served approximately 13 months in federal prison for his role in the conspiracy.
“Software piracy impacts consumers, hurts American businesses and damages our economy,” said Keith Kupferschmid, General Counsel and Senior Vice President for Intellectual Property Policy & Enforcement at the Software & Information Industry Association (SIIA)—which launched the initial investigation into Walters’ piracy schemes. “For these reasons, SIIA leads the industry’s most aggressive anti-piracy campaign, identifying and shutting down sites that peddle illegal software. The Walters case is a prime example of SIIA’s commitment to fighting software piracy. And as Walters found out, software piracy is a serious crime that can land you in federal prison.”
The investigation in this case was conducted by the Federal Bureau of Investigation and the U.S. Postal Inspection Service and stemmed from a referral from the Software & Information Industry Association (SIIA). The prosecution was handled by Peter Sexton and Jennifer Levinson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-08-1359-PHX-GMS
RELEASE NUMBER: 2011-233(Walters)
Source: FBI - Phoenix
On June 28, 2011, Clear Channel Outdoor, in conjunction with ETS, a Texas based leader in asset tracking and location systems, and the FBI Phoenix Field Office’s Bank Robbery Task Force, unveiled digital billboards highlighting wanted bank robbers on BanditTrackerArizona.com. These digital billboards, provided by Clear Channel Outdoor as a public service, will serve to expand the public’s awareness of BanditTrackerArizona.com and the rewards associated with identifying bank robbery suspects.
WHERE:
Digital Billboard located south of Chase Field At 7th Street and Lincoln (parking lot) Phoenix, Arizona
Since 2007, Clear Channel Outdoor and the FBI have worked together to form a partnership that would take advantage of the new digital outdoor networks ability to react to local conditions quickly and inform the public of important community information.
Source: FBI - Phoenix Division
This initiative addresses a vital public safety and public health issue. More than seven million Americans currently abuse prescription drugs, according to the 2009 Substance Abuse and Mental Health Administration’s National Survey on Drug Use and Health. Each day, approximately, 2,500 teens use prescription drugs to get high for the first time according to the Partnership for a Drug Free America. Studies show that a majority of abused prescription drugs are obtained from family and friends, including the home medicine cabinet.
In an effort to address this problem, DEA, in conjunction with state and local law enforcement agencies throughout the United States, conducted the first ever National Prescription Drug Take Back Day on Saturday, September 25, 2010. The purpose of this National Take Back Day was to provide a venue for persons who wanted to dispose of unwanted and unused prescription drugs. This effort was a huge success in removing potentially dangerous prescription drugs, particularly controlled substances, from our nation’s medicine cabinets. There were approximately 3,000 state and local law enforcement agencies throughout the nation that participated in the event. All told, the American Public turned in more than 121 tons of pills on this first National Take Back Day.
Due to the overwhelming success of the first event, DEA has scheduled the second National Prescription Drug Take Back Day which will take place on Saturday, April 30, 2011, from 10:00 am - 2:00 pm. This is a great opportunity for those who missed the first event or who have subsequently accumulated unwanted, unused prescription drugs, to safely dispose of them.
The closest location to the Phoenix Central Neighborhood is:
DEVONSHIRE SENIOR CENTER
2802 EAST DEVONSHIRE AVENUE
PHOENIX AZ, 85016
Source: DEA
Dear community members,
Mortgage fraud scam artists know just what to say to give people false hope in saving their homes, especially consumers who are having trouble making their payments. When faced with the possibility of losing a home, anyone can fall prey. Don’t let yourself, or someone you know, be the next victim of a scam.
I am the United States Attorney for the District of Arizona; investigating and prosecuting mortgage fraud is a top priority for my office. My office is the chief federal law enforcement agency in Arizona and is responsible for prosecuting violations of federal law, including mortgage fraud and related fraud. As an example, we recently prosecuted an individual that received a 17-year prison sentence for leading a mortgage fraud scheme that exceeded $9 million dollars.
To raise awareness of these scams, my office is reaching out to the community and civic groups like yours to help us combat mortgage fraud. Our consumer awareness initiative gives groups the information needed to identify these scams and the resources to combat them. Enclosed you will find a brochure that highlights the information you need to get involved in stopping fraud in your neighborhood.
If you need assistance with a mortgage fraud matter. Please contact my Community Outreach Director at (602) 514-7629 or email him at manuel.tarango@usdoj.gov if you have any questions related to this effort.
For more information visit: http://www.justice.gov/usao/az/mortgagefraud.html.
Source:
Dennis K. Burke
United States Attorney for the District of Arizona
