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Thursday, July 31, 2014

Thune Discusses President Obama’s “Crisis of Competence” - YouTube

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Thune Discusses President Obama’s “Crisis of Competence” - YouTube

CORKER STATEMENT ON VETERANS AFFAIRS BILL

Senator Bob Corker News Release:

WASHINGTON – U.S. Senator Bob Corker (R-Tenn.) released the following statement today on the Veterans’ Access to Care through Choice, Accountability, and Transparency Act of 2014.
“Our veterans deserve solutions to the deep-rooted problems plaguing the VA, and they also deserve a Congress that has the discipline to pay for legislation it passes,” said Corker. “It’s embarrassing that Congress not only refuses to face today’s decisions with the courage our men and women in uniform have demonstrated for decades, but rushed through a piece of legislation without thoroughly reviewing its full fiscal impact on future generations and without knowing if it will address the systemic problems that exist at the VA. Congress should take time to work with the recently confirmed Secretary of the VA on cost-effective reforms that don’t put in place yet another long-term unfunded liability.”
According to the Congressional Budget Office (CBO), the $10 billion funding for a key provision of the bill would last only until the early part of fiscal year 2016 and require billions of dollars in additional funding each year if the program is not canceled.
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Senator Hatch Gives Third in a Series of Speeches on the State of the Senate - YouTube

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Senator Hatch Gives Third in a Series of Speeches on the State of the Senate - YouTube

Senator Hatch Speaks on Israel's Right to Self Defense - YouTube

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Senator Hatch Speaks on Israel's Right to Self Defense - YouTube

Cornyn: President Admits Problem, Refuses to Act

Senator John Cornyn News Release:

Jul 31 2014

U.S. Senator John Cornyn (R-TX) today addressed the President’s refusal to consider bipartisan reforms to a 2008 trafficking law at the center of the ongoing crisis on our southern border. The full speech can be seen here.  Excerpts of his remarks are below.
“This morning I was invited along with members of the House and the Senate to visit with the President about national security matters…and I used the opportunity to ask the President what he proposed that we do when this bill goes down this afternoon, this emergency supplemental.
“What is so confusing is to listen to the President talk in his conference room at the White House about this and acknowledge the nature of the problem and then to see that the White House threatened to veto the legislation that the House was considering.”

Sheila Jackson Lee Caught Lying About Attempt to Impeach Bush | The Federalist Papers

It’s interesting how Democrats are able to lie about positions they have taken in the past, and the willingness of the so called mainstream media to go along with it. Something they would NEVER do for Republicans.



Sheila Jackson Lee Caught Lying About Attempt to Impeach Bush | The Federalist Papers

Senator Hatch Speaks on the Importance of our Patent System and its Abuse by Patent Trolls - YouTube

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Senator Hatch Speaks on the Importance of our Patent System and its Abuse by Patent Trolls - YouTube

Barrasso: Families in Wyoming & Louisiana Face Higher Health Costs Under Obamacare - YouTube

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Barrasso: Families in Wyoming & Louisiana Face Higher Health Costs Under Obamacare - YouTube

Sen. McConnell Introduces Amendment to Halt The Flow of Unaccompanied Alien Minors into the Commonwealth

Press Releases

Jul 31 2014

Sen. McConnell Introduces Amendment to Halt The Flow of Unaccompanied Alien Minors into the Commonwealth

‘My amendment makes clear that these minors should be treated humanely and returned to their home country immediately, not shipped across the nation and housed at taxpayer expense.’

WASHINGTON, D.C. -- U.S. Senate Republican Leader Mitch McConnell filed an amendment that would require the Obama administration to consult with the governor of a state and satisfy specific criteria before transporting unaccompanied alien minors into a state.

The measure, filed as an amendment to Senate border legislation, says that U.S. policy should be to treat unaccompanied alien minors humanely and return them to their home country immediately. The amendment would prohibit the transportation of unaccompanied alien minors across state lines unless the Secretary of Health and Human Services (HHS), in consultation with the governor of the affected state, certifies that the minors will not have a burdensome economic impact or negative public health impact on the state or affected communities. The amendment also would prohibit the transportation of unaccompanied alien minors unless the Secretaries of HHS and the Department of Homeland Security certify that transporting them will not delay their immediate repatriation.  

“My amendment makes clear that these minors should be treated humanely and returned to their home country immediately, not shipped across the nation and housed at taxpayer expense,” Senator McConnell said. “I hope that we will have an open amendment process on the Senate floor so that my amendment can be considered.”

Congress Can’t Fix the Border Crisis without Presidential Leadership

Press Releases

Jul 31 2014

Congress Can’t Fix the Border Crisis without Presidential Leadership

WASHINGTON, D.C. – U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate Floor calling on the President to lead on the border crisis:
“The ongoing humanitarian crisis at our nation’s Southern Border demands a solution.
“It just boggles the mind that the President of the United States would rather fundraise in Hollywood than work with the members of his own party to forge a legislative response to this tragic situation — and to do something to prevent more young people from making the perilous and potentially life-threatening journey across the desert.
“The President initially laid out reforms that, while modest, represented a step in the right direction.
“But evidently, the politicos who increasingly have the President’s ear these days couldn’t go along with that.
“So the President stopped defending his own policy reforms.
“Instead, he demanded a blank check that would preserve the status quo.
“A blank check he knew wouldn’t fix the problem. A blank check he knew couldn’t pass Congress. And a blank check that he knew members of his own party in Congress didn’t even support.
“Faced with a national crisis, he listened once again to his most partisan instincts instead of uniting Congress around a common solution — so he could lay blame for that crisis on somebody else. Apparently no crisis is too big to be trumped by politics in the Obama White House.
“It’s exasperating for those of us who want to work toward bipartisan solutions. It’s confusing, I’m sure, to Democrats who share our desire to get something done. And it’s emboldening to the Democrats who don’t.  Including the Senate’s Democrat leadership.
“When faced with a crisis, a President’s job is to show presidential leadership and get his party on board with the reforms necessary to address it. Scuttling reform and prolonging a crisis are not a part of the job description.
“So what I’m suggesting, Mr. President, is that you spend a little more time actually doing the job you were elected to do. Press pause on the nonstop photo-ops and start demonstrating some real leadership instead. The BBQ joints and pool halls will still be there after we solve the problems.
“It’s a dangerous journey to the border. Children are suffering at the hands of some seriously bad actors down there.
“News reports suggest you even knew about all this long before it starting making national news.
“You could have intervened before this turned into a full-blown humanitarian crisis. You didn’t. You could have worked with us to get a bipartisan solution. You didn’t.
“Mr. President: You have a special responsibility to help us end this crisis in a humane and appropriate way. Congress can’t do it without your leadership or your engagement. It’s impossible to do this without you.
“So pick up that phone you keep telling us about. Call us. Call your fellow Democrats and lobby them to get on board. Work with us. And let’s address this crisis.”

McConnell Wants President to Address Israel/Gaza, ISIL at White House Meeting

Press Releases

Jul 31 2014

McConnell Wants President to Address Israel/Gaza, ISIL at White House Meeting

WASHINGTON, D.C. – U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate Floor today regarding the President’s national security policy and the White House meeting today:
“Recently I’ve expressed deep concern that the President has pursued a foreign policy based on withdrawing from America’s forward presence and alliance commitments, hollowing out our nation’s conventional military forces, placing an overreliance upon personal diplomacy and international organizations, and abandoning the war on terror. I believe this will leave his successor to deal with a more dangerous world, and with fewer tools to meet the threats.
“Later this morning, several members of Congress charged with leading national security committees and policymaking will meet with President Obama to discuss national security. I don’t expect the President to brief us on his plan for rebuilding the military, especially in a way that would allow us to meet our commitments in Europe and the Middle East, or that would allow for an effective strategic pivot to Asia. Nor do I expect the President to lay out for us his plans to provide the intelligence community with all the tools it will need to deal with the threat of international terrorism from Al Qaeda and its affiliated groups over the next decade.
“Those are strategic threats best addressed by integrating all the tools of our nation’s power and, candidly, it would require the President to revisit the policy stances he took as a candidate in 2008.
“I do hope, at a minimum, that the President will discuss two near term issues. First, I hope he will explain his plan or efforts to assist the Israelis in demilitarizing Gaza and ensuring that Hamas is not left with the ability to launch indirect fire attacks against the civilian populace or to infiltrate Israel through tunnels. In coordination with Israel, we can assist the Palestinian Authority with any programs to assume responsibility for monitoring access points into Gaza. Absent any active efforts by the Administration, I would at least like assurances that the President is not working to impose a ceasefire upon Israel that is harmful to the objectives of the current military campaign.
“Second, earlier this month a group of Republican Senators wrote to the President imploring him to craft a plan for containing the threat posed to Iraq and Jordan by the Islamic State of Iraq and the Levant. Specifically, we asked the President to deploy an assessment team to Jordan to develop a plan to prevent the spread of ISIL in a way that threatened our ally Jordan. Although Ambassador Susan Rice responded to our letter, her answer did not address how the administration intends to combat ISIL.
“Instead, Ambassador Rice renewed the administration’s request for a new Counterterrorism Partnership Fund. To this point, the administration has failed to provide the Congress with any plan for how this new Counterterrorism Fund would assist our allies, further our own interests, or train and equip a moderate opposition within Syria. That would be a good starting point for today’s discussion with the President.”

McConnell Introduces Bill to Help Combat Maternal Addiction and Infant Opiate Dependency

Press Releases

Jul 31 2014

McConnell Introduces Bill to Help Combat Maternal Addiction and Infant Opiate Dependency

WASHINGTON, D.C. – U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate Floor today regarding his legislation, the Protecting Our Infants Act:
“Prescription drug and heroin abuse have risen to epidemic levels in my home state of Kentucky.
“More Kentuckians now lose their lives to drug overdose – largely driven by painkillers – than to car crashes.
“It’s a huge problem.
“Earlier this year, I convened a listening session in the commonwealth to hear from those closest to the problem – from professionals across the medical, public-health, and law-enforcement spheres – as well a brave young man who managed to break his heroin addiction after watching his own friends overdose.
“We discussed the extent of the problem, and one issue in particular that grabbed my attention was the increasing number of infants in Kentucky being born dependent on opiates.
“Researchers estimate that “more than one baby every hour” is now born dependent on drugs and suffering from withdrawal – a number that’s increased in my home state by more than 3,000 percent since the year 2000. We’ve gone from 29 infants identified as suffering from drug withdrawal annually to more than 950, and experts believe there are even more cases that go unreported.
“It’s just heart-breaking. I say that especially as the father of three daughters. These children are the most innocent members of our society. We have to protect them.
“Thankfully, the commonwealth is taking this problem seriously. Both the Kentucky Perinatal Association and the Kentucky Perinatal Quality Initiative Collaborative have made as their primary focus reducing the number of infants born dependent on opiates and other drugs.
“I commend their efforts. But there’s more we can do here at the federal level. Maternal addiction and infant opiate dependency are epidemics that can best be overcome by effective coordination between stakeholders at the state and federal levels.
“One bill that was recently introduced in the House, the CRIB Act, would help address the need for greater coordination between doctors, nurses, hospitals, and governments at the state and federal level. I commend the sponsors of that legislation for their leadership.
“And today in the Senate, I will introduce the Protecting Our Infants Act, which seeks to address not only infants suffering from opiate withdrawal, but maternal opiate addiction as well. It would help identify and disseminate recommendations for preventing and treating maternal addiction so that we can reduce the number of infants born dependent on opiates and other drugs. My bill would also promote recommendations as to how to pinpoint those babies suffering from withdrawal – and how best to treat them. And because I’ve heard from so many experts in Kentucky on the need for more research into infant withdrawal and its long-term effects, my bill would shine a light on those areas as well.
“The Protecting Our Infants Act would also encourage the Centers for Disease Control and Prevention to work with states to improve the availability and quality of data so that they can respond more effectively to this public health crisis.
“My legislation is no silver bullet, but it is a step in the right direction. And it will help ensure that our public health system is better equipped to prevent and treat opiate addiction in mothers and their newborn children.
“Together, we can overcome this tragic problem. I’m going to remain focused on it until we do.”

Rubio Discusses Foreign Policy With John Hinderaker - YouTube

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Rubio Discusses Foreign Policy With John Hinderaker - YouTube

Senator Kirk Testifies on Importance of Ex-Im Bank to American Aviation - YouTube

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Senator Kirk Testifies on Importance of Ex-Im Bank to American Aviation - YouTube

Enzi speaks on importance of AML program for Wyoming - YouTube

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Enzi speaks on importance of AML program for Wyoming - YouTube

Senator Coats Shares Hoosier Obamacare Stories on Senate Floor - YouTube

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Senator Coats Shares Hoosier Obamacare Stories on Senate Floor - YouTube

Ayotte Helps Introduce Legislation to Prevent Campus Sexual Assault - YouTube

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Ayotte Helps Introduce Legislation to Prevent Campus Sexual Assault - YouTube

Specially Designated Global Terrorist al Haramain Islamic Foundation Inc. Pleads Guilty to Tax Fraud

FBI Portland Division Press Release:

Specially Designated Global Terrorist al Haramain Islamic Foundation Inc. Pleads Guilty to Tax Fraud
Conviction Relates to Distribution of $150,000 for Chechnya

U.S. Attorney’s OfficeJuly 29, 2014
  • District of Oregon(503) 727-1000
EUGENE, OR—Amanda Marshall, United States Attorney for the District of Oregon, announced that on July 29, 2014, the Al-Haramain Islamic Foundation (AHIF), Inc., a tax exempt charity registered in Oregon, pleaded guilty in U.S. District Court in Eugene, Oregon to one count of filing a false tax return with the Internal Revenue Service.
The conviction relates to a $150,000 donation AHIF’s parent organization in Saudi Arabia received in 2000, intended to be sent to Chechnya. The $150,000 was wire transferred by the donor from an overseas bank account into an AHIF-US bank account in Ashland, Oregon. An employee of AHIF flew from Saudi Arabia to Oregon and, together with the head of AHIF-US, they withdrew the $150,000, and the funds were transported to Saudi Arabia.
Under U.S. law, tax exempt charities must file a return with the Internal Revenue Service, known as a Form 990, reporting the receipt and distribution of all its donations. An accountant in Medford, Oregon was retained by AHIF-US to prepare the Form 990. This accountant was not told by AHIF that the $150,000 was sent overseas. Instead, AHIF-US representatives informed the accountant that most of the funds were used as part of the purchase price for a building in Missouri, and that a portion of the funds were refunded to the donor. This information was false.
Relying on the information provided to him by AHIF representatives, the accountant prepared a Form 990, which falsely reported how the $150,000 was distributed, and made no mention that the funds were sent overseas. A representative of AHIF-US signed the return and it was filed with the IRS.
In its guilty plea today, AHIF, acting through its attorney, acknowledged that it filed the Form 990 with the IRS, knowing it was false as to a material manner.
Prior to entering the plea agreement, AHIF paid the IRS $121,275.00 to satisfy all taxes, penalties and interest due as a result of the false return. At sentencing, AHIF was placed on probation for three years. During that time, AHIF agreed that it will make no attempt to resume operations as a tax exempt charity in the United States.
In return, the United States agreed to dismiss criminal charges pending against Pirouz Sedaghaty (Pete Seda), the former head of AHIF in the United States. A third defendant, Soliman Al-But’he, remains under indictment. An arrest warrant is outstanding for Al-But’he and he is a fugitive.
“This conviction sends an important message to charities such as Al-Haramain that they need to carefully scrutinize donations to ensure they are used for proper purposes,” said U.S. Attorney Amanda Marshall. “When they fail, and lie to the Internal Revenue Service about where charitable funds are sent, there will be consequences.”
“We have a duty to protect the sanctity of our nation’s charitable donations”, said Special Agent in Charge Kenneth Hines of IRS Criminal Investigation. “When an organization misrepresents the cause and destination of pledged funds, IRS Criminal Investigation, together with our partners at the FBI and Homeland Security Investigations, will be there to bring it to justice. We will not tolerate any organization that exploits its’ exempt status.”
This case was investigated by the IRS, the FBI and Homeland Security Investigations. Assistant U.S. Attorney Chris Cardani, Assistant U.S. Attorney Charles Gorder and First Assistant U.S. Attorney Kent Robinson handled the prosecution of the case.
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Carbon County Man Charged with Producing Child Pornography

FBI Philadelphia Division Press Release:

Carbon County Man Charged with Producing Child Pornography

U.S. Attorney’s OfficeJuly 29, 2014
  • Middle District of Pennsylvania(717) 221-4482
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Todd Kowar, age 24, Kidder Township, Carbon County, was indicted today by a federal grand jury in Scranton on charges of producing child pornography and possessing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Kowar persuaded and induced a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. The indictment alleges that Kowar committed the crimes between 2008 and December 2012.
The charges stem from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Kidder Township Police.
Kowar faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison if he is convicted of the production of child pornography charge; and faces a maximum sentence of 10 years in prison if he is convicted of the possession of child pornography charge.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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KOLR10: Senator Blunt Calls On President Obama To Show Leadership 7/30/14 - YouTube

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KOLR10: Senator Blunt Calls On President Obama To Show Leadership 7/30/14 - YouTube

KMBC-TV: Senator Blunt Reacts To President Obama's Campaign Style Speech In Kansas City 7/30/14 - YouTube

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KMBC-TV: Senator Blunt Reacts To President Obama's Campaign Style Speech In Kansas City 7/30/14 - YouTube

Former U.S. Navy Military Sealift Command Manager Sentenced for Receiving Bribes

FBI Norfolk Division Press Release:

Former U.S. Navy Military Sealift Command Manager Sentenced for Receiving Bribes

U.S. Attorney’s OfficeJuly 29, 2014
  • Eastern District of Virginia(757) 441-6331
NORFOLK, VA—Kenny E. Toy, 54, the former Afloat Programs Manager at the United States Navy Military Sealift Command, was sentenced today to serve 96 months in prison for receiving bribes.
United States Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today after sentencing by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
On Feb. 12, 2014, Toy pleaded guilty to a criminal information charging him with one count of bribery. According to the statement of facts filed with Toy’s plea agreement, Toy was employed as the Afloat Programs Manager in the N6 Command, Control, Communication, and Computer Systems Directorate at the Military Sealift Command, which is the leading provider of transportation for the United States Navy. In approximately November 2004, Toy joined an extensive bribery conspiracy that spanned five years, involved multiple co-conspirators, including two different companies, and resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Toy and to Scott B. Miserendino Sr., a former government contractor who performed work for the Military Sealift Command.
At his plea hearing, Toy admitted that he accepted monthly cash bribes of approximately $3,000, as well as a flat screen television and a paid vacation to the Outer Banks in North Carolina, from co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail, and Adam C. White, all of whom were employed at a government contracting company referred to as Company A in court documents. Toy also admitted that he accepted a $50,000 cash bribe in May 2009 from Hardman and another co-conspirator, Timothy S. Miller, both of whom were employed at a government contracting company referred to as Company B in court documents. In exchange for the bribes, Toy provided favorable treatment to Company A and Company B in connection with Military Sealift Command related business.
As part of his guilty plea, Toy also admitted to engaging in a scheme to conceal his criminal activity. Toy admitted to causing more than $88,000 to be paid to Hardman in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.
Toy was also ordered to serve a supervised release term of three years following his prison sentence, and ordered to forfeit $100,000.
Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to providing bribes to Toy and Miserendino. On Feb. 19, 2014, McPhail, a former employee at Company A, pleaded guilty to conspiracy to commit bribery. On April 4, 2014, White, a former vice president at Company A, pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith, the former president of Company A, pleaded guilty to conspiracy to bribe public officials. On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to 48 months in prison followed by one year of supervised release and ordered him to forfeit $175,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith.
Charges contained in an indictment are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, NCIS and DCIS. The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia and Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section of the Justice Department.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

Bergen County Couple Sentenced to Prison for Defrauding Mortgage Lenders of More Than $3 Million

FBI Newark Division Press Release:

Bergen County Couple Sentenced to Prison for Defrauding Mortgage Lenders of More Than $3 Million

U.S. Attorney’s OfficeJuly 29, 2014
  • District of New Jersey(973) 645-2888
NEWARK, NJ—A husband and wife from Bergen County, New Jersey, were both sentenced today to prison for lying about their employment, income, and other financial information in order to fraudulently obtain millions in mortgages, U.S. Attorney Paul J. Fishman announced.
Linda Yarleque, 44, was sentenced to 24 months in prison and her husband, Fabio Moreno Vargas, 47, was sentenced to 18 months in prison. They were previously convicted by a federal jury of one count each of bank fraud and conspiracy to commit wire fraud. Yarleque and Moreno, of Westwood, New Jersey, were convicted in November 2013 following a one-week trial before U.S. District Judge William H. Walls, who imposed the sentences today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Yarleque and Moreno obtained 10 fraudulent loans over three years. They falsified their employment and income, failed to disclose their debts and other properties that they owned, and lied about where they lived. They fraudulently obtained a total of $3.4 million in mortgages and personally pocketed approximately $269,000 through “cash out” refinancings that they directed to their own bank accounts. Then they spent that money on vacations, cars, and to buy more properties.
The defendants made up a phony business where Moreno was supposedly employed (My Limousine). They then obtained a phone line in the name of My Limousine and had it forwarded to their personal cell phones. When mortgage lenders called to verify Moreno’s employment, the defendants lied, posing as fictitious employees, using names such as “Janet Alvarez” and “Casandra Sterling.”
In addition to the prison term, Judge Walls sentenced Yarleque and Moreno to serve three years of supervised release and ordered them to pay restitution of $716,353 and forfeit $262,198.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the general crimes unit and Rachael A. Honig, counsel to the U.S. Attorney.
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Owner and Employee of Illegal Online Gambling Website Admit Conspiring wth Genovese Organized Crime Family

FBI Newark Division Press Release:

Owner and Employee of Illegal Online Gambling Website Admit Conspiring wth Genovese Organized Crime Family

U.S. Attorney’s OfficeJuly 29, 2014
  • District of New Jersey(973) 645-2888
NEWARK, NJ—Two Union County, New Jersey, men, including the owner of an illegal online sports betting website, today admitted to conspiring with the Genovese organized crime family, U.S. Attorney Paul J. Fishman announced.
Joseph Graziano, 77, and Dominick J. Barone, 44, both of Springfield, New Jersey, each pleaded guilty before District Judge Claire C. Cecchi in Newark federal court to separate informations charging them with one count of racketeering conspiracy. Graziano agreed to forfeit $1 million to the United States and Barone agreed to forfeit $100,000.
According to documents filed in this case and statements made in court:
Graziano was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Barone worked with Graziano in carrying out the daily activities of the website and both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle. Joseph Lascala, 80, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
This organized crime crew and Graziano and Barone joined forces to allow traditional organized crime members and associates to use the Internet and current technology to conduct traditional organized crime by engaging in and profiting from illegal sports betting through the website. Associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” or bookies, under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.
To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gamblin losses, the crew used their LCN status and threats of violence to collect on these debts.
The agent or sub-agent paid a fee to the website for each bettor added to a package. Barone and others made weekly collections of cash in furtherance of the scheme.
The count of racketeering conspiracy carries a maximum potential punishment of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Barone is scheduled for Nov. 12, 2014, and for Graziano, Nov. 18, 2014.
To date, John Breheney, a/k/a “Johnny Fugazi, Fu, Johnny Fu,” 49, and Salvatore Turchio, 48, both of Little Egg Harbor, New Jersey; Patsy Pirozzi, a/k/a “Uncle Patsy,” 75, of Suffern, New York; and José Gotay, 76, New Milford, New Jersey, have pleaded guilty to their respective roles in this racketeering conspiracy and await sentencing.
As to the remaining defendants, the charges and allegations contained in a criminal complaint sworn in May 2012 are merely accusations and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Serina M. Vash and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
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Real Estate Developer Admits Diverting Money from Trenton Affordable Housing Projects

FBI Newark Division Press Release:

Real Estate Developer Admits Diverting Money from Trenton Affordable Housing Projects

U.S. Attorney’s OfficeJuly 29, 2014
  • District of New Jersey(973) 645-2888
TRENTON, NJ—The developer of three Trenton affordable housing projects admitted today that he made false statements to a financial institution to divert project money for personal and other unauthorized purposes, and to conducting a transaction with the proceeds of this crime, U.S. Attorney Paul J. Fishman announced.
Robert Kahan, 68, of Sunny Isles Beach, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to two counts of an indictment charging him with making false statements in a loan application (Count 8) and to transacting in criminal proceeds that resulted from those false statements (Count 12).
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Kahan was a developer of three affordable housing projects in Trenton—the Canal Plaza Homeownership Project, the Southwest Village II Project and the Catherine S. Graham Project—for which he obtained both private and public funding.
The Southwest Village II Project was a project to construct 52 affordable housing units. Kahan diverted substantial portions of the project’s financing from a $6,435,000 construction loan from Roma Bank to his own personal use, his other development projects and other uses that were outside of the project budget. In October 2008, Kahan diverted $343,354 of Southwest Village II project financing and applied it as a down payment to purchase a Florida condominium. In numerous payment applications made to the loan administrator for the project financing requesting advances of loan and subsidy money, Kahan falsely stated that all money that he was previously paid had been used to pay costs for labor, materials and other obligations for the Southwest Village II Project.
The count of making false statements in a loan application carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of transacting in criminal proceeds carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Kahan has agreed to forfeit $989,901 in criminal proceeds. Sentencing is scheduled for Nov. 18, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Christina Scaringi, Special Agent in Charge, Northeast Region, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Eric Moran in Trenton and Senior Litigation Counsel Mark J. McCarren in Newark, both of the U.S. Attorney’s Office Special Prosecutions Division.

Former New York City Council Member Daniel Halloran Found Guilty in Federal Court on Bribery and Fraud Charges Connected to 2013 Mayor’s Race

FBI New York Field Office Press Release:

Former New York City Council Member Daniel Halloran Found Guilty in Federal Court on Bribery and Fraud Charges Connected to 2013 Mayor’s Race
Halloran Also Found Guilty of Bribery and Fraud Related to Awarding City Funds

U.S. Attorney’s OfficeJuly 29, 2014
  • Southern District of New York(212) 637-2600
Preet Bharara, the United States Attorney for the Southern District of New York, announced that former New York City Council Member DANIEL HALLORAN was found guilty in federal court of arranging the bribery of New York City Republican leaders to allow New York State Senator Malcolm Smith, a Democrat, to run as a Republican candidate for New York City Mayor in 2013. In addition, HALLORAN was found guilty of accepting a $15,000 cash bribe in exchange for designating up to $80,000 in New York City funds to a non-profit entity that would allow the money to be embezzled through a no-show job. HALLORAN was convicted in White Plains federal court after a two-month jury trial before U.S. District Judge Kenneth M. Karas.
U.S. Attorney Preet Bharara stated: “With today’s verdict of guilty reached by an impartial and independent jury, the clean-up of corruption in New York continues in courtrooms. As the jury unanimously found, Daniel Halloran played a key role in two distinct political corruption schemes: first, for $20,000, Halloran was willing and able to serve as a go- between to deliver bribes to political party officials, and second he also took nearly $25,000 in cash and illegal campaign contributions to steer $80,000 in City Council money to other bribe payers. Dan Halloran was the lone defendant in the trial that just ended in his conviction, but he is unfortunately not alone in a crowded field of New York officials who are willing to sell out their offices for self-enrichment. This Office will continue the vigorous prosecution of political corruption to secure for the people of New York—regardless of party affiliation—what they deserve: the honest labors of their elected representatives. And we will continue to partner with the FBI, whose outstanding investigative work in this case was instrumental to achieving a just result.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
HALLORAN was elected to the New York City Council in 2009, representing a district in Queens, New York. While a member of the city council, HALLORAN participated in two overlapping criminal schemes that involved the payment of bribes to obtain official action. First, HALLORAN arranged for $110,000 in cash bribes to be paid to leaders of the Republican Party so that they would allow Smith to run for mayor on the Republican Party’s ballot line. Second, HALLORAN accepted an up-front kickback of $15,000 for designating up to $80,000 of New York City Council discretionary funding to a company he believed was controlled by those who paid him the bribes.
The Bribery of Republican Party Leaders
From in or about November 2012 until his arrest in April 2013, HALLORAN agreed with Smith, an undercover FBI agent posing as a wealthy real estate developer (the “UC”), and a cooperating witness (“CW”) to bribe New York City Republican Party leaders in exchange for their authorization of Smith to appear as a Republican candidate for New York City Mayor in 2013, even though Smith is a registered Democrat.
In furtherance of the scheme, HALLORAN arranged for the UC and the CW to meet Vincent Tabone, the Vice Chairman of the Queens County Republican Party, Joseph Savino, the Chairman of the Bronx County Republican Party, and other party leaders so they could be paid bribes in exchange for supporting Smith’s bid to compete for the Republican nomination. HALLORAN also negotiated the size of bribes that the party leaders required in order to authorize Smith to run on the Republican ballot line. During a meeting with the UC, Tabone accepted a $25,000 cash bribe and agreed to accept another $25,000 after his committee authorized Smith to compete in the Republican primary. Savino similarly accepted a $15,000 cash bribe and agreed to accept another $15,000 after he voted to authorize Smith to compete for the Republican ballot line. In return for his efforts, HALLORAN accepted $15,500 as a down payment on a “broker’s” fee of at least $75,000 and expected to be appointed First Deputy Mayor if Smith was elected mayor.
Bribery for City Council Discretionary Funding
From in or about August 2012 until his arrest in April 2013, HALLORAN accepted a bribe of $15,000 cash from the UC and the CW in exchange for agreeing to steer up to $80,000 in New York City Council discretionary funding to a consulting company he believed was controlled by the UC and the CW (the “Company”). In furtherance of this scheme, HALLORAN wrote two letters on New York City Council letterhead about this funding, one to civic organizations and the other to the Company. Despite suggesting in these letters that work would be done by the Company to support the allotment of taxpayer money, HALLORAN agreed with the UC and the CW that the Company would provide no services.
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HALLORAN, 42, of Queens, New York, was found guilty of one count of conspiracy, which carries a maximum sentence of five years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and two counts of Travel Act bribery, each of which carries a maximum sentence of five years in prison. Each of the counts of conviction also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HALLORAN is scheduled to be sentenced by Judge Karas on December 12, 2014, at 2:00 p.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom and Justin Anderson are in charge of the prosecution.