Las Vegas Man Pleads Guilty to Federal Stolen Goods Charges

LAS VEGAS—A man pleaded guilty today to federal charges that he stole over $300,000 in expensive jewelry from persons at golf courses in multiple states, including Nevada, and sold it at trade shows, jewelry stores, and pawn shops, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jeffrey Cochran, 47, of Las Vegas, pleaded guilty before U.S. District Judge Gloria M. Navarro to two counts of possession and sale of stolen goods, and he is scheduled to be sentenced on October 18, 2013, at 9:00 a.m. Cochran faces up to 10 years in prison and a $250,000 fine on each count.
According to the plea agreement, from about September 15, 2010 to March 10, 2012, Cochran stole jewelry, including Tag Heuer and Rolex watches, from individuals at golf courses in other states and transported the goods to Las Vegas for sale at jewelry and pawn stores. Cochran also stole jewelry from individuals at golf courses in Las Vegas and transported the stolen jewelry to other states to sell at trade shows and jewelry and pawn stores. The plea agreement states that the government and defendant agree that the readily provable loss associated with Cochran’s theft is $300,895.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section and was part of a federal and local law enforcement effort to combat organized retail theft. The case is being prosecuted by Assistant United States Attorney Christina M. Brown.

Las Vegas Agent Convicted in Mortgage Fraud Scheme

WASHINGTON—A Las Vegas mortgage agent has been convicted for his role in a “cash back at closing” mortgage fraud scheme that netted $1.43 million in fraudulent mortgage loans, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada, and Acting Special Agent in Charge William C. Woerner of the FBI’s Las Vegas Field Office.
After a three-day trial before U.S. District Judge Larry Hicks in the District of Nevada, a federal jury convicted Jawad “Joe” Quassani, 42, on July 10, 2013, of one count of conspiracy to commit wire fraud and mail fraud, two counts of wire fraud, and two counts of mail fraud.
According to court documents and evidence presented at trial, Quassani participated in a scheme in which the prices of two homes were falsely inflated, mortgage loans were obtained through the submission of loan applications containing false and fraudulent information about the buyer’s income and intent to occupy the homes as primary residences, a portion of the loan proceeds was diverted at the close of escrow to the defendant’s co-conspirators, and commissions on the fraudulent loans were paid to Quassani and his co-conspirator. Evidence at trial established that Quassani, a licensed mortgage agent at Rapid Funding Group, conceived the scheme together with two of his co-conspirators, prepared one of the loan applications and arranged for the preparation of the other, and shared in the commissions generated by transactions that had no purpose other than to generate profits for the co-conspirators.
Co-conspirators Anita Mathur and Shirjil “Sean” Qureshi previously pleaded guilty in related cases in Las Vegas to one count of conspiracy to commit bank fraud, wire fraud and mail fraud. Both are awaiting sentencing.
This case was investigated by the FBI. Trial Attorneys Stephen J. Spiegelhalter and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case.
Today’s conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state, and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

Chillicothe Woman Indicted for Embezzling $4 Million from Employer

KANSAS CITY, MO—Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Chillicothe, Missouri woman has been indicted by a federal grand jury for a wire fraud scheme in which she embezzled nearly $4 million from her employer, Burdg, Dunham, & Associates Construction Corp. in Hamilton, Missouri.
Donna M. Preszler, 60, of Chillicothe, was charged in a 20-count indictment returned under seal by a federal grand jury on June 20, 2013. That indictment was unsealed and made public today upon Preszler’s arrest and initial court appearance.
Preszler was employed at Burdg, Dunham, & Associates (BDA) from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico, and Canada, primarily building for national retail organizations.
The indictment alleges that Preszler embezzled $3,912,000 in a wire fraud scheme from June 30, 2006 through June 15, 2012. Preszler allegedly used her employer’s accounting software to create payroll data files that contained unauthorized false and fictitious payments to her bank accounts and others.
Preszler allegedly utilized her role as accounting manager to add false and fictitious non-taxable pay, such as expense reimbursements to herself. Over a six-year period, the indictment says, Preszler transferred approximately $3,912,000 in false and fictitious payments to herself and her family.
Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll, the indictment says. Preszler allegedly initiated approximately $76,000 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts, and otherwise manipulating BDA’s payroll and accounting records.
The federal indictment charges Preszler with six counts of wire fraud and 14 counts of money laundering.
The indictment also contains a forfeiture allegation, which would require Preszler to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $3,912,000, and her residence on a 3.44-acre tract in Chillicothe, as well as three other residential properties, two 14kt diamond rings, 10 vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2007 Nissan Altima, a 2011 Ford F150, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer, and a 2012 Nissan Rogue), three 2011 Yamaha ATVs, and several bank accounts and funeral trust accounts. Most of those items have been seized by law enforcement agents.
Dickinson cautioned that the charges contained in this indictment are simply accusations and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the FBI.

Columbia Woman Pleads Guilty in $576,000 Mortgage Fraud, Embezzlement Schemes

JEFFERSON CITY, MO—Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Missouri woman pleaded guilty in federal court today to charges of bank fraud and money laundering, which were part of a $576,000 mortgage fraud and embezzlement scheme at the title company where she was employed.
Terri Lynn Johnson, 48, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a December 13, 2012 federal indictment.
Johnson was hired for a clerical position with Guaranty Land Title Company in 2001 and was eventually promoted to become the branch manager of the Fulton, Missouri office after the company was acquired by Landchoice Company LLC. She remained in that position until her termination on December 4, 2008.
Johnson admitted that she engaged in a $300,000 mortgage fraud scheme while she was employed as the Fulton branch manager. Johnson refinanced the mortgage on her residence twice. As a result of the false and fraudulent information provided by Johnson, two banks approved mortgage loans for $175,000 in 2007 and for $125,000 in 2008. The combination of those two loans clearly exceeded the appraised value of Johnson’s residence, which was used to secure both loans.
Johnson also admitted that she embezzled $276,173 from Landchoice. Johnson diverted income checks from Landchoice into a bank account that had been opened for Guaranty Land Title Company and which her employer did not know existed. She also diverted escrow funds which had been obtained by Landchoice for loan closings into that account.
Johnson then wrote checks to herself that she deposited into her personal checking account. Johnson wrote checks totaling approximately $59,465 payable to herself or to cash. Johnson also wrote checks to Johnson Gardens (her personal business) totaling approximately $12,500. Johnson also wrote checks believed to be for her personal use totaling approximately $19,916. In addition, Johnson utilized a debit card issued for the account, which she used to access $184,292 from that account for her personal benefit. The total personal benefit realized by Johnson from this embezzlement scheme is estimated to be approximately $276,173.
Under federal statutes, Johnson is subject to a sentence of up to 40 years in federal prison without parole, plus a fine and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI; IRS-Criminal Investigation; the Fulton, Missouri Police Department; the Missouri State Highway Patrol; and the Missouri Department of Insurance.

Kansas City, Missouri Man Pleads Guilty to Bank Robbery

KANSAS CITY, KS—A Kansas City, Missouri man has pleaded guilty to bank robbery in Kansas, U.S. Attorney Barry Grissom said today.
Edward Davis, 31, Kansas City, Missouri, pleaded guilty to one count of bank robbery. In his plea, he admitted that on July 13, 2012, he and other accomplices robbed Bank Midwest, 3500 Rainbow Blvd., in Kansas City, Kansas. Brandishing a firearm, he yelled that a robbery was taking place and ordered bank customers and employees to the floor. He pointed his gun at a bank teller. After the robbery, investigators released surveillance photos of the defendant and his accomplice, resulting in information that led to Davis’ arrest.
Sentencing is set for October 7. The parties have agreed to recommend a sentence of 12 years in federal prison. Grissom commended the FBI, Assistant U.S. Attorney Jabari Wamble, and Special Assistant U.S. Attorney Trent Krug for their work on the case.

Boston-Area Pimp Charged with Murdering a Rival Pimp in the Bronx in Dispute Related to Criminal Prostitution Business

Preet Bharara, the United States Attorney for the Southern District of New York; George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Raymond W. Kelly, the Police Commissioner of the City of New York (NYPD), announced that Samuel L. Whiteside was presented today in Manhattan federal court on charges that he traveled interstate to Whiteside murder to further his prostitution business. Whiteside was arrested in Rockford, Illinois, on June 14, 2013, and initially presented in the Northern District of Illinois. He arrived in the Southern District of New York yesterday and was presented today before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said, “As alleged, Samuel Whiteside traveled to New York with the cold-blooded intent to murder a rival in the unlawful prostitution business. Thanks to the efforts of our law enforcement partners, he will now face justice in the Southern District of New York.”
FBI Assistant Director in Charge George Venizelos said, “As alleged, a business dispute between two men ended with one brutally murdering the other. Given that the business in question was the exploitation of women and trading them like livestock, it is not surprising that a dispute would be resolved by violence. While not surprising, it is intolerable.”
NYPD Commissioner Raymond W. Kelly said, “I commend the detectives of the NYPD’s Bronx Homicide squad and their counterparts in the 47th Precinct for helping return this pimp to face federal prosecution for murder.”
According to the allegations in the complaint filed in Manhattan federal court:
During the course of the evening of June 4, 2012, and early morning hours of June 5, 2012, Whiteside, a Boston-area pimp, had an argument over the telephone with Victor Martino (the victim). The victim, who at the time was staying at the Metro Motel in the Bronx, New York, was also a pimp, and the argument between Whiteside and the victim related to their respective prostitution businesses.
Specifically, Whiteside and the victim had a dispute about a woman who had worked for Whiteside as a prostitute. Whiteside believed that the victim owed Whiteside money related to that woman, who had been traded and sold between Whiteside and the victim. During a telephone conversation that evening, the victim told Whiteside that Whiteside could settle the dispute in person and provided Whiteside with the address of the Metro Motel.
During the course of that evening, Whiteside traveled from New England to the Metro Motel. When he arrived, Whiteside went to the motel room where the victim was staying and attacked and stabbed the victim with a knife, killing him.

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Whiteside, 30, of Dorchester, Massachusetts, is charged with one count of traveling interstate to commit murder to further his prostitution business. He faces a maximum sentence of life in prison.
Mr. Bharara praised the investigative work of the FBI and NYPD and stated that the investigation is ongoing.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorney Kan M. Nawaday is in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Manhattan Business Owner Pleads Guilty in Manhattan Federal Court to Multi-Million-Dollar Ponzi Scheme

Preet Bharara, the United States Attorney for the Southern District of New York, announced today that Jason Konior, the founder and manager of a number of related business entities in New York City, collectively referred to as “Absolute,” pled guilty today in Manhattan federal court in connection with his operation of a multi-million-dollar Ponzi scheme in which he stole at least $2.9 million from small hedge fund investors and used the funds to pay off prior investors and to pay himself. Konior was originally charged in February 2013 and pled guilty today before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Preet Bharara said, “In the space of less than a year, Jason Konior managed to take at least $2.9 million that he had solicited from his investors and then use it to settle up with previous investors and to pay himself. Today’s plea ensures that he will be punished for perpetrating this Ponzi scheme on his victims.”
According to the Information, statements made during today’s guilty plea proceeding, and a complaint previously unsealed in Manhattan federal court:
From late 2011 through May 2012, Konior organized and managed a Ponzi scheme in which he misappropriated at least $2.9 million in funds he had solicited from hedge fund investors. He represented to these investors that Absolute would provide additional trading funds of up to nine times the investment they made in Absolute. As part of Absolute’s “first loss” investment program, Konior claimed that he would place the combined funds—the investors’ funds and the additional funds to be provided by Absolute—in a brokerage account designated by Absolute. According to Konior, the hedge fund investors would then be able to trade securities utilizing that brokerage account. Under the arrangement, the hedge funds would be responsible for trading losses, and they would share any profits with Absolute.
Instead of establishing brokerage accounts for the victim hedge funds, however, Konior misappropriated the funds they provided by paying redemptions to prior investors, making payments to himself, and paying various personal and business expenses. In e-mails, text messages, and telephone conversations, Konior pretended that he was establishing brokerage accounts for the three hedge fund investors, when he had already stolen their money. For example, in one case, after Konior repeatedly failed to set up a brokerage account for one of the hedge fund investors, the manager of the hedge fund investor sent him a text message stating, “I want my money back. What did you do to it anyway? Are you going to tell me or do you want the SEC to find out?” Konior responded with a text message, stating, “We have your funds in our acct. Where else would they be?” At the time Konior wrote the message, he had already used that hedge fund’s investment to pay off other investors and his own expenses.

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Konior, 39, of New York, New York, pled guilty to one count of wire fraud, which carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. He is scheduled to be sentenced by Judge Hellerstein on November 8, 2013, at 11:00 a.m.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud.
Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John T. Zach and Jason H. Cowley are in charge of the prosecution.