1. Detroit: Two Japanese Companies, Four Executives Guilty in Automobile Parts Price-Fixing and Bid-Rigging Conspiracies

   Two Japanese suppliers of automotive electrical components, Yazaki Corporation and Denso Corporation, have agreed to plead guilty and to pay a total of $548 million in criminal fines for their involvement in multiple price-fixing and bid-rigging conspiracies in the sale of parts to automobile manufacturers in the United States; and four executives, all Japanese nationals, have also agreed to plead guilty and serve prison time in the U.S. Full Story

2. New York: Credit Suisse Employees Charged in Subprime Mortgage-Related Bond Manipulation Scheme

   A vice-president and two former managing directors at Credit Suisse were charged with fraudulently inflating subprime mortgage-related bond prices, which contributed to a more than $2.6 billion write-down in the bank’s reported net income. Full Story

3. Tampa: Florida Man Indicted for Attempting to Use Weapons of Mass Destruction

   Sami Osmakac, of Pinellas Park, Florida, was charged with attempting to use weapons of mass destruction against persons and property in the U.S., as well as possessing an unregistered machine gun. Full Story

4. New York: Seven Linked to Folk Nation Gang Indicted on Racketeering and Murder Charges

   Seven members, associates, and leaders of the violent Brooklyn street gang “Six Tre Outlaw Gangsta Disciples Folk Nation,” also known as the “Folk Nation,” were charged in a superseding indictment with crimes including racketeering, murder in aid of racketeering, murder conspiracy, attempted murder, robbery, assault, and illegal use of firearms. Full Story

5. Newark: Vending Company Executive Charged with Defrauding Pepsi of $2.9 Million

   Joseph Belasco, the chief financial officer of New Jersey vending company Culinary Ventures Vending, was charged with defrauding Pepsi Bottling Group of approximately $2.9 million through a decade-long scheme to receive commissions for customer referrals for which he was not responsible. Full Story

6. Los Angeles: Man Sentenced to 35 Years in Prison for His Participation in an Online Child Pornography Bulletin Board

   Billy Wade Carroll, of Dayton, Ohio, was sentenced to 35 years in prison and lifetime supervised release for his participation in the Lost Boy online bulletin board, which was dedicated to men who have a sexual interest in young boys and was established to provide a forum to trade child pornography. Full Story

7. San Antonio: FBI and Local Law Enforcement Announce Bandit Shield Initiative

   The Federal Bureau of Investigation and regional law enforcement announced the implementation of a new regional crime reduction venture, the Bandit Shield Initiative, which was developed to reduce bank robberies and to assist local, state, and federal law enforcement with their robbery investigations. Full Story

8. Chicago: Strip Club Operators Charged with Concealing More Than $4 Million of Income from the IRS

   The operators of an adult entertainment club were charged with conspiracy to impede the Internal Revenue Service in the collection of federal taxes, as well as separately operating an illegal Internet gambling business, in connection with allegedly diverting more than $4 million in unreported income to themselves from the two businesses. Full Story

9. New Orleans: Patient Recruiter Pleads Guilty in Louisiana Health Care Fraud Scheme

   A Georgia man pled guilty to his role in a Louisiana-based Medicare fraud scheme involving $1.15 million in fraudulent claims for unnecessary durable medical equipment. Full Story

10. Portland: $5,000 Reward Offered for Information in Fugitive Case

    The FBI is offering a reward of up to $5,000 for information leading to the arrest and conviction of Rick Devan Hendrix, age 56, and Sarah Candace Deswert-Hendrix, age 30, who are wanted in connection with an alleged Internet fraud scheme. Full Story

An indictment was unsealed today charging Ronald Miko, 37, of Reading, Pennsylvania, with one count of obstruction of a criminal investigation, announced United States Attorney Zane David Memeger. Miko was arrested this afternoon. According to the indictment, Miko, at the time a police officer in the City of Reading, utilized a room in a house at which convicted federal defendants Paul Sewell and Michael Johnson operated a prostitution business that trafficked females who were under the age of 18. The indictment alleges that between May 2, 2011 and June 7, 2011, Miko wired money to Johnson’s federal prison account to prevent the communication of information to criminal investigators regarding Miko’s involvement in that business.

If convicted, the defendant faces a maximum possible sentence of five years in prison, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.

An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.

Defendant Also Convicted of Using, Carrying, and Possessing a Firearm in Connection with the Drug Conspiracy

Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALFREDO RIVERA, a retired New York City Police Department (“NYPD”) officer, was found guilty yesterday on both counts of an indictment that charged him with participating in a conspiracy to distribute cocaine and using, carrying, and possessing a firearm in connection with that conspiracy. The verdict came following a four-day jury trial in Manhattan federal court before U.S. District Judge Katherine B. Forrest.

RIVERA’s co-defendant, Rafael Jimenez, a former auxiliary police sergeant with the NYPD, previously pled guilty on November 2, 2011, to participating in the cocaine distribution conspiracy.

According to the Indictment and the evidence at trial:

During a January 12, 2010, meeting with a government informant (the “First Informant”), Jimenez said he would use an armed retired NYPD officer to assist in the transportation of cocaine. In February of 2010, Jimenez and RIVERA met with a second government informant (the “Second Informant”), whom Jimenez and RIVERA believed to be a large-scale cocaine distributor. During this meeting, RIVERA—who was armed with an NYPD-issued nine millimeter handgun—told the Second Informant that if stopped by the police, “I just show my I.D. and my shield…they always say, ‘get out of here.’” Jimenez and RIVERA subsequently agreed to transport a 10 kilogram load of cocaine from a warehouse in Long Island to a narcotics customer in the Bronx, New York. RIVERA agreed to be paid $1,200 per kilogram of cocaine transported, for a total of $12,000 for 10 kilograms of cocaine, and further agreed to use a portion of that money to pay Jimenez for his role in the transaction.

On March 23, 2010, RIVERA, while armed with the handgun, drove to a warehouse in Long Island, where he was observed by law enforcement agents picking up a duffel bag that contained approximately 10 kilograms of a white substance consistent with the appearance of cocaine. RIVERA then drove the bag from the warehouse to the Bronx.

* * *

RIVERA, 53, of the Bronx, New York, is scheduled to be sentenced on May 18, 2012. He faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison.

Jimenez, 58, of New York, New York, is scheduled to be sentenced on March 9, 2012. He faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.

Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and the NYPD’s Internal Affairs Bureau.

This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Brian A. Jacobs and Howard S. Master are in charge of the prosecution.

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a fourth superseding indictment charging six additional members and associates of the 10th Street Gang. The Indictment specifically accuses the defendants of racketeering conspiracy, multiple violent crimes in aid of racketeering, narcotics trafficking, and firearm offenses.

In September 2009, the grand jury charged six 10th Street Gang members and associates with violent crimes in aid of racketeering and other charges. Since that time, three additional indictments have been returned charging an additional 32 10th Street Gang members and associates with a variety of federal criminal offenses.

The six men charged in the most recent indictment were arrested early this morning in a coordinated effort led by the FBI’s Safe Streets Task Force. The defendants are identified as Jonathan Delgado, 23, Sam Thurmond, 23, Domenico Anastasio, 24, Ismael Lopez, 24, Darnell McIntosh, 28, and Christopher Pabon, 23, all of Buffalo N.Y.

Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the latest Indictment accuses the newly charged defendants of multiple acts of violence. These incidents consist of:

• Jonathan Delgado, Sam Thurmond, Ismael Lopez, Domenico Anastasio, Christopher Pabon, and Matthew Smith (previously charged) are accused of participating in the murders of Brandon McDonald and Darinell Young and the attempted murder of three others on April 17, 2006;
• Jonathan Delgado, Tony Peebles, and Hector Rodruguez (both previously charged) are accused of participating in a May 22, 2006 home invasion of rival drug dealers on Hudson St.;
• In addition, Darnell McIntosh is accused of narcotics conspiracy.

The latest superceding indictment also identifies new incidents committed by previously charged defendants. These incidents consist of:

• Tony Peebles and Justin Augus are accused in a shooting on August 11, 2009 on Pennsylvania Ave.;
• Cody Busch is accused of a shooting on August 13, 2009 on Prospect Ave.;
• Tony Peebles, Saul Santana, Desmond Ford, and Cody Busch are accused of shootings on August 17, 2009 on Virginia St. and Fargo Ave.;
• Nourooz Ali is accused of a shooting on October 21, 2009 on Virginia St.;
• Michael Hernandez is accused of drug trafficking and attempting to facilitate the sale of a gun in December 2009;
• Tony Peebles and Omar Hernandez are accused of participating in the shooting of Rival M&T gang members on June 15, 2007;
• Derrick Yancey, Brandon Bobbitt, and Desmond Ford are accused of participating in the September 15, 2008 murder of Omar Fraticello Lugo and the shootings of two others

Today’s indictment also continues to include incidents charged in earlier Indictments. These include:

• the murder of Christian Portes on June 13, 2009 on Whitney Place;
• the murder of Anthony Colon on June 26, 2009 on Ullman and Esser;
• 10 attempted murders of rival gang members and rival gang associates;
• multiple instances of witness intimidation, assault and robbery.

Today’s indictment brings to 38 the total number of 10th Street Gang members and associates charged to date. Thirteen of these defendants have been convicted thus far in connection with this investigation.

In addition to the violent crimes, the 10th Street Gang is also accused of being involved in trafficking various controlled substances, including cocaine, cocaine base, heroin, marijuana, ecstasy, and hydrocodone. During the course of the investigation, law enforcement officers seized approximately 150 grams of crack cocaine, approximately 200 grams of cocaine and quantities of heroin, marijuana, hydrocodone, and ecstasy as well as several firearms.

“Today’s arrests of six additional, alleged members of the 10th Street Gang is further proof of this office’s commitment to ferret out violent, gang-driven crime,” said U.S. Attorney Hochul. Those who join a gang or engage in gun violence should realize their days are numbered. Federal law, and the jail terms they authorize, were specifically designed to protect the community from this type of conduct. We along with all of our law enforcement partners intend to vigorously enforce those laws in order to keep our citizens safe and our streets gang-free.”

“This morning’s arrests represent the FBI Safe Streets Task Force’s continued enterprise approach toward dismantling and defeating gang activity in the Buffalo area,” said Christopher M. Piehota, FBI Special Agent in Charge. “This unified law enforcement strategy leverages all available resources, skills, and authorities to combat crime. As a result of the shared intelligence developed through the ongoing 7th and 10th Street Gangs investigation, the Safe Streets Task Force has arrested numerous associated gang members and associates. Subsequent gang activity in the Buffalo West Side has diminished, community members feel safer in their homes, and can better enjoy their historic neighborhoods. The continued success of this investigation would not be possible without major contributions from the New York State Police, the Buffalo Police Department, and other Safe Street Task Force partners.”

“The investigation that resulted in the dissolution of the 7th and 10th Street gangs, that were operating in the City of Buffalo, is a textbook example of how resources from city, state and Federal Law enforcement and prosecutors combined with the citizens within a community to reclaim peace and security for its residents,” said Major Christopher Cummings of the NYS Police. “This level of cooperation will always be a key factor to success against organized criminal activity.”

The superseding indictment is the culmination of an investigation on the part of special agents of the FBI Safe Streets Task Force, under the direction of Special Agent in Charge Christopher M. Piehota, New York State Police under the direction of Major Christopher Cummings, the Buffalo Police Department under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Frank Christiano.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

The New York State Police is currently investigating a cruelty to an animal case in which a dog was found alongside a roadway with its legs bound with duct tape

CAMDEN, NJ—An East Greenwich, N.J., man was sentenced today to 240 months in prison for advertizing child pornography for others to download over the Internet, including videos of infants being sexually assaulted, U.S. Attorney Paul J. Fishman announced. Robert J. Paratore, 47, previously pleaded guilty to an information charging him with one count of advertising and offering to share child pornography. Paratore entered his guilty plea before U.S. District Judge Jerome B. Simandle, who also imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made during Paratore’s guilty plea proceeding:

From at least as early as May 29, 2009, Paratore, who was then the CFO of Akers Biosciences, Inc., used his work computer in Thorofare, N.J., to download computer files that contained child pornography—including images of prepubescent children and infants engaged in sexually explicit conduct. Paratore then advertised his 76 gigabyte collection and shared the images with others over the Internet using peer-to-peer file-sharing—communication via special software which makes it possible for computers to link together over the Internet to form a network for sharing digital files between users.

Law enforcement officials who executed a search warrant at Paratore’s place of employment in Thorofare found child pornography on his work computer and over 100 CDs or DVDs of the material in his truck parked outside.

Paratore acknowledged that the images and videos he made available included depictions of children who were clearly minors. The titles of the files offered by Paratore, such as “!!!NEW tod rape.1. mpg,” graphically described the ages of the victims and the acts of sexual assault which had been recorded.

In addition to the prison term, which took into account Paratore’s prior federal conviction for possession of child pornography, Judge Simandle sentenced Paratore to a lifetime of supervised release. As part of his guilty plea, Paratore agreed to forfeit the computers that he used to commit the offense as well as 167 CDs and DVDs and a two gigabyte thumb drive containing child pornography. Paratore has also agreed to disclose information to law enforcement about eight individual victims he personally sexually abused. Those investigations are continuing. Paratore is also required to register as a sex offender.

U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge George C. Venizelos; investigators with the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; and the West Deptford and Monroe Township Police Departments with the investigation leading to the sentence.

The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel:
Assistant Federal Public Defender Maggie F. Moy Esq., Camden