Federal Criminal Defense Lawyers

Thursday, August 4, 2011

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Attorney Kevin Harold Lewis Pleads Guilty in Federal Court to $47,000,000 Bank Fraud Scheme
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:59 AM August 4, 2011

The U.S. Attorneys Office Eastern District of Arkansas on August 3, 2011 released the following: ATTORNEY PLEADS GUILTY TO $47,000,000 BANK FRAUD SCHEME Little Rock Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Valerie Parlave, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today the waiver of indictment and plea of guilty to a felony Information by Kevin Harold Lewis, age 43, of Little Rock, Arkansas. The Information, which was filed in open court today, charges Lewis with one count of bank fraud in violation of Title 18, United States Code, Section 1344. This case demonstrates that the actions of one individual can have far-reaching, detrimental effects, including the collapse of a financial institution, stated Thyer The amount of fraud loss in this case is one of the highest in the history of our office. Fraud, whether of this magnitude or not, cannot be tolerated, and the Department of Justice will aggressively investigate and prosecute such schemes. With each creation of a fraudulent bond, Mr. Lewis added to his house of cards that ultimately collapsed, stated SAC Parlave. The FBI remains committed to rooting out such schemes, which threaten the stability of our financial institutions. Until around October 2010, Kevin Harold Lewis, a licensed attorney in the state of Arkansas, operated several businesses throughout the state in addition to running his law practice. Lewis primarily concentrated on developing property owners improvement districts and issuing special assessment bonds to fund these districts. These assessment bonds are also known as special improvement district bonds.

At the plea hearing held before United States District Judge James M. Moody, Lewis admitted that between December 31, 2008, and September 29, 2010, First Southern Bank, a federally insured financial institution located in Batesville, Arkansas purchased special improvement district bonds, totaling approximately $23 million from Kevin Lewis. Prior to the purchase of each bond, Lewis would provide the bank with offering documents describing the details of bonds. At the plea hearing, Lewis acknowledged that these bonds were fraudulent. On or around August, 2009, Lewis, through PA Alliance Trust, a trust he formed in February 2009, purchased a controlling interest, approximately 53%, in First Southern Bank. To facilitate this purchase, Lewis borrowed approximately $4.6 million from First State Bank in Lonoke. Lewis pledged the First Southern Stock as collateral for this loan. In or around September 2010, Lewis, through his PA Alliance Trust, purchased an additional $5.5 million in First Southern stock, which increased his ownership in the bank to 64.9%. To facilitate this purchase, Lewis, in part, used funds from the sale of two fraudulent bonds to First Southern Bank. In addition to the fraudulent bonds provided to First Southern Bank, a bank that was forced into FDIC receivership upon learning of the status of the bonds, the following financial institutions provided loans to Kevin Lewis which were collateralized, in whole or in part, by fraudulent bonds: Centennial Bank, Citizens, Liberty Bank, First Community, Allied, Simmons, and Regions Bank. The following banks currently hold fraudulent bonds which were originally sold by Kevin Lewis: Centennial Bank and Bank of Augusta. The intended loss amount in this case is approximately $47,000,000. The statutory penalty for bank fraud is

not more than thirty (30) years imprisonment and a fine of up to $1,000,000. Lewis remains free on his own recognizance pending sentencing, which will be set for a later date by the court. 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. The investigation was conducted by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation. It is being prosecuted by Assistant United States Attorneys Karen Whatley and Stephanie Mazzanti. 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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Federal Criminal Defense Lawyers

Darrick C. Boroczk Sentenced to 70 Years in Federal Prison for Producing and Possessing Child Pornography
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:53 AM August 4, 2011

The U.S. Attorneys Office Northern District of Illinois on August 3, 2011 released the following: FORMER WHEELING RESIDENT SENTENCED TO 70 YEARS IN FEDERAL PRISON FOR PRODUCING AND POSSESSING CHILD PORNOGRAPHY CHICAGO A former Wheeling resident was sentenced to 70 years in federal prison for producing and possessing child pornography, including images he manufactured while sexually molesting two small children, a girl and a boy, federal law enforcement officials announced today. The defendant, Darrick C. Boroczk, 34, has been in federal custody since he was arrested on July 30, 2009. No civilized society can permit [conduct like this] no matter what the circumstances, U.S. District Judge Ronald Guzman said in imposing the sentence late yesterday in Federal Court in

Chicago. Under federal law, Boroczk must serve at least 85 percent of his sentence before he is eligible for release, and the judge ordered lifetime supervision in the event he is released from custody. The sentence was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Gary J. Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago. According to court documents, child pornography seized in April 2009 on a computer in New Castle, Pa., depicted a man sexually molesting a young girl. Further investigation resulted in law enforcement identifying Boroczk as the suspect, leading to his arrest and prosecution. In March 2010, Boroczk pleaded guilty to four counts of manufacturing child pornography and one count of possessing child pornography. The manufacturing counts involved his sexual abuse of a girl between ages 3 and 5 that occurred between 2006 and 2009. The government

also established as relevant conduct that Boroczk sexually molested a 2-year-old boy in 2006. Judge Guzman sentenced Boroczk to the mandatory minimum of 15 years on each manufacturing count and imposed the maximum of 10 years on the possession count and ordered each prison term to be served consecutively, totaling 70 years. The government was represented by Assistant U.S. Attorney Jeffrey Perconte. 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.

FBI Busts Alleged Mortgage Fraud Ring

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:36 AM August 4, 2011

Attorney General Eric Holder Speaks at the National Association of Black Journalists Annual Convention
(USDOJ: Justice News)
Submitted at 10:09 AM August 4, 2011

Fox News on August 4, 2011 released the following: 10 Charged in $60 Million Mortgage Fraud Scheme By Jana Winter The FBI has arrested 10 people for allegedly participating in a $60 million mortgage fraud ring early Thursday morning in the New York area, FoxNews.com has learned. Three more suspects are expected to be in custody by the end of the day, an FBI official said. The 13 alleged members of the mortgage fraud ring include real estate attorneys, title closers, appraisers and straw buyers. They were arrested on conspiracy to commit bank fraud and wire fraud charges. All are expected to appear before a judge in the Southern District federal court on

Thursday. One of the main subjects created numerous mortgage brokerages, including FCE and TAT Mutual Capital. Through these brokerages, the subject allegedly facilitated fraudulent real estate loan transactions throughout the New York metropolitan area. The scheme involved more than 100 properties in New York and Florida. 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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Justice Department Reaches Settlement with VeriFone and Hypercom After Gores Group is Determined to be Acceptable Buyer for Point-of-Sale Terminals Business
(USDOJ: Justice News)
Submitted at 9:53 AM August 4, 2011

The Department of Justice announced today that, in order for VeriFone Systems Inc. to complete its acquisition of Hypercom Corp., it must divest Hypercoms U.S. point-of-sale terminals business to an entity sponsored by Gores Group LLC, a private equity fund.

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Federal Criminal

FBI Raids Wagner Chiropractic Clinic in Daytona Beach

McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:14 AM August 4, 2011

The Daytona Beach News Journal on August 4, 2011 released the following: DAYTONA BEACH FBI agents teamed up with the Volusia Bureau of Investigation this morning to serve a search warrant on the Wagner Chiropractic Clinic, 542 N. Ridgewood Ave. That information was confirmed by Gary Davidson, spokesman for the Volusia County Sheriffs Office, who said units have been on-scene since about 7:54 a.m. Since the search is pursuant to an ongoing federal investigation and VBI is merely assisting and not the lead agency, Im unable to comment further or provide any additional information, he said in an

e-mail. Joseph Wagner, a chiropractic physician and licensed acupuncturist, is the owner of the clinic, according to Volusia County Property Appraisers records. 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.