Federal Criminal Defense Lawyers

Sunday, June 19, 2011

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Fifth Member of CD and DVD Counterfeiting Ring in Atlanta Sentenced to 38 Months in Prison
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 7:14 AM June 19, 2011

The U.S. Department of Justice (DOJ) on June 17, 2011 released the following press release: WASHINGTON Ibrahim Diallo, 27, of Atlanta, was sentenced to 38 months in prison today by U.S. District Judge William S. Duffey Jr., in Atlanta for his involvement in a counterfeit DVD and CD ring, announced Assistant Attorney General Lanny A. Breuer of the Justice Departments Criminal Division and U.S. Attorney Sally Quillian Yates for the Northern District of Georgia. Diallo was also sentenced to three years of supervised release and ordered to pay $3,867 in restitution, jointly and severally with his co-defendants. Mr. Diallo and his co-conspirators trafficked in counterfeit CDs and DVDs that would have been worth millions of dollars on the open market, to the detriment of artists, retailers, producers and others, said Assistant Attorney General Breuer. The Justice Department has never been more committed than it is today to investigating and prosecuting these crimes, and this case exemplifies our determination to make sure that counterfeiters and other intellectual property criminals are appropriately punished. The victims in this case are the thousands of Americans who earn their livelihoods from the legitimate creation and performance of popular music and movies, said U.S. Attorney Quillian Yates. This group of defendants stole from them by mass-producing counterfeit music CDs and DVD movies in a pirating operation that may have been the largest of its kind in the Southeastern United

States. Diallo pleaded guilty on Sept. 1, 2009, to one count of conspiracy to commit criminal copyright infringement, to traffic in counterfeit goods and to traffic in counterfeit labels. At the plea hearing, Diallo admitted that he sold pirated CDs and DVDs along with counterfeit labels and packaging. Diallo admitted to selling, and conspiring to sell, thousands of pirated CDs and DVDs per week. Diallo was one of 13 individuals charged in a May 19, 2009, indictment alleging various copyright, trademark and counterfeit goods offenses. In February 2011, four of Diallos co-conspirators were sentenced for their involvement in the piracy ring. Mamadou Sadio Barry, 40, was sentenced to 60 months in prison; Moussa Baradji, 29, was sentenced to 50 months in prison; Sedikey Sankano, 42, was sentenced to 24 months in prison; and Won Ahn, 69, was placed on probation for one year. Barry, Baradji and Sankano also were ordered to serve three years of supervised release following their prison terms. Barry and Baradji were ordered to pay $70,894 in restitution and Sankano was ordered to pay $3,867 in restitution. The court found that these defendants were responsible for distributing illegal copies of products that, if legitimate, would have been valued at more than $2 million. The case was prosecuted by Assistant U.S. Attorney Brian Pearce in the Northern District of Georgia and Senior Counsel John H. Zacharia of the Criminal Divisions Computer Crime and Intellectual Property Section. The case was investigated by special agents of the FBI and the Department of Homeland Security, Immigration and Customs Enforcement, together with officers of the

Atlanta Police Department Organized Crime Unit; the College Park, Ga., Police Department; and the East Point, Ga ., Police Department. Assistance was provided by the Recording Industry Association of America and the Motion Picture Association of America. The sentence announced today is an example of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nations economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. 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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32 South Texas Residents Charged With Fraud as a Result of Operation Sitting Duck More Than 20,000 Allegedly False Insurance Claims Submitted to AFLAC
McNabb Associates, P.C. (Federal Criminal Defense Lawyers)
Submitted at 9:23 AM June 19, 2011

Federal Bureau of Investigation (FBI) on June 17, 2011 released the following press release: McALLEN, TX Operation Sitting Duck, an ongoing investigation into fraudulent insurance claims filed with the American Family Life Assurance Company (AFLAC), has resulted in the return of eight separate but related sealed indictments, charges of conspiracy and wire fraud and the arrest of 32 South Texas residents for their alleged involvement in a scheme to defraud AFLAC of millions of dollars by allegedly filing false injury claims, United States Attorney Jos Angel Moreno announced today along with Special Agent-in-Charge Cory B. Nelson of the FBI San Antonio field office. Simply put, this fraud scheme is a robbery without a gun of the self-insured American taxpayer, said Nelson, and as such, the FBI considers it to be a direct threat to the critical U.S. health care infrastructure designed to be available for Americans in their time of medical need. According to the indictments, which were returned under seal on Tuesday, June 14, 2011, the defendants-who include a local police officer, county employees and school teachers-purchased policies under the AFLAC Accident-Only Insurance Plan from several area insurance agents at various times beginning in July 2001. Under the plan, a policyholder could file a claim with AFLAC and obtain a cash benefit if he or she received treatment from a physician for a legitimate, accident -caused injury including lacerations, bruises, burns, fractures or dismemberment. Greed, simple and pure, has allegedly driven a police officer, teachers, county government employees and others to participate in a multi-million dollar insurance fraud, said Moreno. That same greed now makes them participants in our criminal justice system and subject to participation in our prison rehabilitation system. Insurance fraud affects every legitimate provider and beneficiary of our healthcare system, and we will vigorously pursue those who seek to profit illegally from it. The indictments allege that, from July 2001 through April 2010, the defendant policyholders routinely delivered lists of fake accidents and injuries to two physicians who worked together at a clinic

in Reynosa, Tamaulipas, Mexico. The physicians allegedly prepared an accident report for each fake injury in exchange for a cash kickback of approximately $15 per accident report. In each report, the indictment alleges the physicians falsely claimed they had provided treatment and prescribed medication for the purported injury. In addition, the physicians and defendants allegedly attempted to conceal their scheme in numerous ways including agreeing to use injuries such as lacerations and minor burns as opposed to more serious injuries that paid higher cash benefits and could potentially attract a greater level of scrutiny by AFLACs claims department. Over time, the defendants-many of whom allegedly recruited one another to purchase policies and join the alleged scheme-submitted approximately 21,600 allegedly false and fraudulent insurance claims, each accompanied by the physicians accident reports, to AFLACs claims department in Columbus, Ga. Based on the claims, AFLAC disbursed a total of approximately $3 million in insurance proceeds to the defendants. Each count of conspiracy and wire fraud carries a sentence of up to 20 years in federal prison without parole, a $250,000 fine and mandatory restitution. The indictments listed below have been unsealed as to each of the following defendants who were arrested by FBI agents yesterday and today: Indictment #1 Name Age City of Residence Lucila Alcala 40 Edinburg, Texas Lilly Perez 32 La Villa, Texas Desiree Rodriguez 34 Edinburg, Texas Jose D. Rodriguez 27 Edinburg, Texas Steven Betancourt 39 Edinburg, Texas Maria C. Alaniz 39 Elsa, Texas Patricia Cerda-Flores 44 Palmview, Texas Dalia Cerda-Delgado 39 Palmview, Texas Leonor B. Salinas

46 Elsa, Texas Maria Guzman 40 Edinburg, Texas Rebecca Castillo 41 Edinburg, Texas Ninfa Reyes 38 Edcouch, Texas Noemi Villareal 60 Edinburg, Texas Indictment #2 Idaleen Sanchez 34 Edinburg, Texas Norma Sanchez 41 Edinburg, Texas Valerio Ramos 55 Edinburg, Texas Jose Guerra, Jr. 37 La Joya, Texas Eddie Guerra 34 Alamo, Texas Indictment #3 Mary Cedillo 65 Edinburg, Texas Martha Ortega 57 McAllen, Texas Yolanda Segovia 55 McAllen, Texas Candida Chavez 34 McAllen, Texas Lori Chavez 30 McAllen, Texas Anissa Chavez 31 McAllen, Texas Homer Cedillo, Jr. 41 Edinburg, Texas Indictment #4 Norma Flores 54 Palmview, Texas Nora Palacios 53 La Joya, Texas Georgina Flores 33 SOUTH page 3

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Mission, Texas Indictment #5 Nancy Rodriguez 31 Pharr, Texas Maria Cantu 56 McAllen, Texas Indictment #6 Beatriz Carreon 42 Edinburg, Texas Indictment #7 Minerva Murguia 43 Sullivan City, Texas The defendants have either made or are awaiting an initial appearance before a U.S. Magistrate Judge in McAllen federal court and either have or are expected to be ordered released on bond pending trial. Four indictments remain partially sealed and warrants remain outstanding for others charged but as yet not in federal custody. The ongoing investigation is being conducted by the McAllen office of the FBI. Assistant United States Attorney

Greg Saikin is prosecuting the cases. 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. 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.