Posts Tagged With Perjury / Obstruction of Justice

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Former CEO and Former Chief Loan Officer of Failed Sonoma Valley Bank Convicted After Trial of Bank Fraud and Other Crimes

On December 18, 2017, three individuals, including the former CEO and former Chief Loan Officer of defunct Sonoma Valley Bank (“SVB” or the “Bank”) were convicted by a federal jury of multiple criminal charges that stemmed from a series of schemes carried out between 2004 and the Bank’s collapse in August 2010.  Former SVB CEO Sean Clark Cutting and former CLO Brian Scott Melland were convicted following an eight-week trial in U.S. District Court for
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ZTE Corporation Agrees to Plead Guilty and Pay over $430.4 Million for Violating U.S. Sanctions by Sending U.S.-Origin Items to Iran

On March 7, 2017, Attorney General Jeff Sessions announced that ZTE Corporation agreed to plead guilty for conspiring to violate the International Emergency Economic Powers Act (“IEEPA”), obstructing justice and making a material false statement.  ZTE’s agreement to plead guilty is the DOJ component of a series of settlements that ZTE reached with U.S. agencies, which totals to an agreement to pay the U.S. Government $892,360,064.  On the criminal side, ZTE will enter a guilty
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Man Sentenced to 78 Months in Prison for Fraudulent Investment Companies and Obstructing SEC Investigation

On March 3, 2017, Stanley Jonathan Fortenberry was sentenced in the Northern District of Texas to 78 months in prison, as well as $890,310 in restitution and $311,254 in forfeiture, for running two investment fraud schemes and obstructing an SEC investigation.  The schemes, which ran for more than four years and defrauded investors out of approximately $900,000, raised funds for social media projects and an oil and gas drilling project but misled investors about the
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Former RMBS Trader Convicted of Securities Fraud After Retrial

On January 27, 2017, a Connecticut jury returned a guilty verdict on one count of securities fraud, and a verdict of not guilty on nine counts of securities fraud in the retrial of Jesse Litvak.  In 2014, Litvak was tried and convicted on 10 counts of securities fraud, one count of Troubled Asset Relief Program (“TARP”) fraud, and three counts of making false statements to the government based on misrepresentations about the price paid for
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Former New York State Senator John Sampson Sentenced to Five Years in Prison for Obstruction of Justice and Making False Statements to FBI Agents

On January 18, 2017, former New York State Senator John Sampson was sentenced to five years in prison and ordered to pay a $75,000 fine after his conviction at trial for obstruction of justice and making false statements to the FBI.   Sampson had served in the New York State Senate from 1997 until he was convicted by a jury on July 24, 2015.  According to the evidence at trial, Sampson, an attorney, borrowed $188,500 from
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Volkswagen AG Agrees to Plead Guilty and Pay $4.3 Billion in Criminal and Civil Penalties; Six Volkswagen Executives and Employees Are Indicted in connection with Conspiracy to Cheat U.S. Emissions Tests

On January 11, 2017, Volkswagen AG agreed to pay a $2.8 billion criminal penalty and plead guilty to conspiracy to defraud the United States and U.S. consumers and violate the Clean Air Act, obstruction of justice, and importation by means of false statements.  In its guilty plea, which has not yet been accepted by the court, Volkswagen admitted that it made misstatements to the EPA and U.S. customers about Volkswagen, Audi, and Porsche branded diesel
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Man Pleads Guilty in connection with Operating Unlawful Bitcoin Exchange

On January 9, 2017, Anthony Murgio pled guilty to charges related to operating Coin.mx, an unlawful Internet-based Bitcoin exchange that Murgio used to process more than $10 million in illegal Bitcoin transactions.  According to the Superseding Indictment and statements made during court proceedings, Murgio operated Coin.mx between 2013 and July 2015.  Murgio and his co-conspirators used a phony front company, “Collectables Club,” in order to avoid detection of the Bitcoin exchange.  Murgio used Collectables Club
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Tax Attorney and CPA Indicted for Tax Evasion and Diversion of Tax Shelter Fees from Major Manhattan Law Firm

On October 26, 2016, Harold Levine, a Manhattan tax attorney and former head of the tax department at a major Manhattan law firm (“Law Firm”), and Ronald Katz, a Florida certified public accountant, were indicted for allegedly engaging in a multi-year tax evasion scheme to divert millions of dollars in fees from the Law Firm and to conceal that income from the IRS.  According to the indictment, Levine diverted over $3 million in fee income
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Managing Director of Venture Capital Firm Sentenced in Manhattan Federal Court in Connection with Multimillion-Dollar Ponzi Scheme

On October 25, 2016, Gregory Gray, senior managing director of Archipel Capital, LLC, was sentenced in the Southern District of New York to two years in prison, three years supervised release and ordered to forfeit $5,000,000 and pay $5,000,000 in restitution for securities fraud and perjury in connection with his scheme to defraud an investor of approximately $5 million to cover up mismanagement of other investors’ funds.  Between June 2012 and November 2013, Gray raised
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Three Individuals Charged in $1 Billion Medicare Fraud and Money Laundering Scheme

On July 22, Philip Esformes, Odette Barcha and Arnaldo Carmouze, were charged with conspiracy, obstruction, money laundering and healthcare fraud for their roles in connection with a $1 billion Medicare Fraud scheme.  Announcing the indictment, Assistant Attorney General Leslie R. Caldwell said it was “the largest single criminal healthcare fraud case ever brought against individuals” by DOJ.  Esformes, who operated over 30 skilled nursing homes and assisted living facilities, is alleged to have been at
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U.S. Navy Admiral Pleads Guilty to Lying to Federal Investigators about His Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud Investigation

On June 9, U.S. Navy Admiral Robert Gilbeau pled guilty to charges of making false statements to law-enforcement officers.  Gilbeau lied to federal authorities investigating Leonard Glenn Francis, owner of Glenn Defense Marine Asia, a foreign defense contractor at the center of a massive bribery and fraud scandal.  Gilbeau admitted that he lied to DCIS and NCIS agents when questioned about whether he ever received gifts from Francis, a man with whom he was carrying
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Former Investment Manager Employee Pleads Guilty to Obstruction of Justice and Perjury Charges

On March 13, Steven Hart, a former portfolio manager at an investment management firm headquartered in Englewood Cliffs, New Jersey, pled guilty to obstruction of justice and perjury relating to an SEC investigation into his trading practices.  Hart made materially false statements in testifying before the SEC; when the SEC called the firm, Hart also impersonated other employees, including the firm’s president.  Impersonating the latter, Hart claimed to the SEC that the president was aware
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Former ArthroCare Executives Sentenced for $750 Million Securities Fraud Scheme

On August 29, Michael Baker, the former CEO of ArthroCare Corporation, and Michael Gluk, ArthroCare’s former CFO, were sentenced in the Western District of Texas to 20 years and 10 years in prison, respectively, following their June 2014 convictions for wire fraud and securities fraud and Baker’s conviction for making false statements to the SEC during its investigation of the conduct.  Baker and Gluk were also ordered to forfeit approximately $22 million in profit from
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CEO of Broker-Dealer Charged with Obstructing Regulatory Examination and Making False Statements and False Filings

On August 8, U.S. Attorney for the Southern District of New York Preet Bharara announced charges against Charles Moore, the CEO of Crucible Capital Group, Inc., an SEC-registered broker-dealer, for obstructing a regulatory examination and making false statements and filings.  Moore allegedly caused Crucible, which he controlled, to report its net capital above the threshold mandated by SEC regulation despite the firm’s net capital deficiency.   Moore is also alleged to have supported these false filings
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French Citizen Sentenced to Two Years for Obstructing FCPA Probe

On July 25, Frederic Cilins, a French citizen who pled guilty in March to obstructing a federal criminal investigation into alleged bribes of officials of the Republic of Guinea, was sentenced to 24 months in prison.   The investigation related to allegations that a mining company with which Cilins was affiliated had bribed state officials to obtain mining concessions in the Simandou region of Guinea.  According to the government, Cilins sought to induce a witness to
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Former Qualcomm Executive Pleads Guilty to Insider Trading and Money Laundering

On July 21, Jing Wang, a former senior executive of Qualcomm Inc., pled guilty to insider trading in shares of Qualcomm and Atheros Communications Inc., and laundering the proceeds (totaling approximately $250,000) using an offshore shell company.  According to court documents, Wang purchased Atheros stock hours after Qualcomm’s board made a non-public offer to purchase Atheros and bought Qualcomm stock one day before Qualcomm announced record earnings results.  Wang also pled guilty to obstructing justice
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Former Investment Banker Pleads Guilty to Insider Trading

On April 2, a former investment banker in Evercore Group LLC’s mining and metals group, Frank Perkins Hixon Jr., pled guilty to insider trading.  With knowledge of information he received advising Evercore clients on nonpublic transactions and in internal firm meetings, Hixon executed trades in brokerage accounts belonging to the mother of his child and his father, earning over $500,000 in profits.  Hixon also made false statements to FINRA and the FBI.  In 2013, Hixon
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French Citizen Pleads Guilty to Obstructing FCPA and Money Laundering Inquiry

On March 10, Frederic Cilins pled guilty to obstructing a federal criminal investigation into allegations of bribes paid to secure valuable mining rights in the Simandou region of the Republic of Guinea.  According to court papers, a federal grand jury in the Southern District of New York was investigating allegations that a mining company with which Cilins was affiliated paid bribes to government officials of the former regime in the Republic of Guinea.  Cilins agreed
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