http://fieldcases.blogspot.com/2013/04/former-nypd-officer-sentenced-in.html

Following a five-week trial, a federal jury in Brooklyn today found Bartolomeo Vernace, a member of the administration of the Gambino organized crime family of La Cosa Nostra (the “Gambino family”), guilty of a racketeering conspiracy spanning 1978 through 2011. As part of the racketeering conspiracy, the jury found that Vernace participated in all nine racketeering acts alleged in the indictment, including the 1981 double homicide of Richard Godkin and John D’Agnese, heroin trafficking, robbery, loansharking, and illegal gambling.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.
The evidence at trial established that Vernace, also known as “Bobby Glasses,” “Pepe,” and “John Canova,” had a long career in the mafia beginning in the early 1970s and culminating in his induction and rise to become a powerful Gambino family captain who served on the three-member ruling panel overseeing the family that was established in 2008. Vernace was arrested on January 20, 2011, as part of a national sweep of almost 100 members and associates of organized crime led by the U.S. Department of Justice and Federal Bureau of Investigation.
Among the crimes he committed for the mafia, Vernace, together with two Gambino associates, murdered Richard Godkin and John D’Agnese in the Shamrock Bar in the Woodhaven neighborhood of Queens on April 11, 1981, after a dispute arose between a Gambino family associate and others in the bar over a spilled drink. The associate left the bar and picked up Vernace and a third accomplice at a nearby social club. A short time later, the three men entered the bar and gunned down Godkin and D’Agnese—the owners of the bar—as the bar’s patrons fled for cover.
In the weeks after the murders, Vernace went into hiding while one of his close associates, Ronald “Ronnie One-Arm” Trucchio, a rising star in the Gambino family who would later become a powerful captain, sought to question witnesses from the Shamrock Bar that night, placing those witnesses in fear. While in hiding, Vernace was indicted under the alias “Pepe” in the Southern District of New York on heroin trafficking charges. Years later, Vernace, who had avoided state charges for the murders and who had never been identified in connection with the heroin trafficking indictment, returned to Queens and to an active role in the Gambino family. Over the next two decades, his power within the mafia grew as he became actively involved in robbery, loansharking, and gambling, while operating a large and profitable crew from a café on Cooper Avenue in the Glendale neighborhood of Queens.
In 1998, Vernace was charged in Queens County Supreme Court with the Godkin and D’Agnese murders but was acquitted after trial in 2002. During testimony from the first week of the federal trial, an eyewitness to the murders testified that he had lied during the state trial about Vernace’s role in the murders due to fear of retribution. In the federal case, the eyewitness testified he recognized all three assailants but that he had been afraid to testify against them because, in his words, “two men were dead over a spilled drink. I think that was reason enough to be afraid.” The eyewitness further described how, moments before the murders, he saw Vernace pointing a gun at Godkin’s head and taunting him and that he saw one of Vernace’s accomplices threatening D’Agnese with a gun. According to the medical examiner, Godkin was killed by a gunshot to the chest fired from point-blank range, and D’Agnese died from a gunshot to the face.
In addition to the Godkin and D’Agnese murders, the jury found the other seven racketeering acts proved, including heroin trafficking, robbery, loansharking, and gambling and found the defendant guilty of separate firearms and illegal gambling charges as well.
“Organized crime has been depicted by Hollywood as a group of criminals with honor. This case shows what organized crime is really all about—murder, mayhem, and making money off of the weaknesses and addictions of others. Today’s racketeering conspiracy conviction of a powerful Gambino family leader demonstrates, yet again, this office’s unwavering commitment to holding individuals who choose a life of organized crime accountable, regardless of the age of their crimes,” stated United States Attorney Lynch. “The defendant spent the last 40 years pursuing a career of crime, including the vicious double murder, as well as traditional mafia rackets. With this verdict, Vernace has finally been brought to justice and will be held to account for the destruction and pain he has inflicted on his victims and their families. We sincerely hope that today’s verdict helps bring a measure of closure for the families of Vernace’s murder victims, for whom justice has too long been denied.” Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation, and to the United States Marshals Service for its assistance during trial.
FBI Assistant Director in Charge Venizelos stated, “The 32 years since Vernace took part in the ruthless double murder of two good men represent half his lifetime. They have not been years spent atoning for those murders. It has been time spent living the life of a mob soldier, capo, and overseer—half a lifetime committing and directing crimes for the Gambino crime family. We expect that Vernace’s remaining years will be spent behind bars where he belongs. There is no expiration date on the FBI’s resolve to see justice done.”
When sentenced by United States District Judge Sandra L. Townes, Bartolomeo Vernace faces a sentence of up to life imprisonment.
The government’s case was prosecuted by Assistant United States Attorneys Evan M. Norris, Amir H. Toossi, and M. Kristin Mace.
Defendant:
Bartolomeo Vernace
Age: 64

Former NYPD Officer Sentenced in Manhattan Federal Court to 46 Months in Prison for Conspiring to Distribute Firearms and Stolen Goods

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Ali Oklu, a former New York City Police Department (NYPD) officer, was sentenced today to 46 months in prison for participating in a scheme to illegally transport firearms, including M-16 rifles and handguns, and stolen goods across state lines. Oklu was sentenced by U.S. District Judge William H. Pauley, III.
Manhattan U.S. Attorney Preet Bharara said, “Ali Oklu betrayed the NYPD and the fine men and women who serve there so honorably, even going so far as to conspire to bring firearms into New York where his brother and sister officers—as far as he knew—might have been potentially in the firing line. With his sentence today, he will now be punished for his crimes.”
According to the court filings and statements made in court:
From September 2010 to October 2011, Oklu participated in the transportation of firearms and what he believed were stolen goods across state lines. He was an active duty NYPD officer at the time he committed the offenses. The firearms Oklu helped transport included three M-16 rifles, one shotgun, and 16 handguns, the majority of which had been defaced to remove or alter the serial numbers and all of which had been rendered inoperable. The goods he helped transport, and that he thought were stolen, included 12-slot machines and thousands of cartons of cigarettes, as well as various counterfeit merchandise. In total, the goods that Oklu and his co-conspirators illegally transported carried a street value of approximately $1 million.
Oklu was recruited to join the conspiracy in early October 2010 by its leader and organizer and fellow NYPD Officer William Masso. The trips in which Oklu participated included two trips to transport purportedly stolen slot machines from Atlantic City to New York; multiple trips to transport hundreds of cases of purportedly stolen cigarettes from New Jersey to New York; a trip to Virginia to take part in the purported theft of hundreds of cases of cigarettes from trucks parked outside a warehouse; and the final trip during which 20 firearms, many of which were defaced, and all of which were rendered inoperable, were transported interstate. In total, Oklu was paid $35,000 for his role in the transport of the firearms and purportedly stolen goods.
Oklu specifically discussed with his co-conspirators using their law enforcement credentials and applying their law enforcement expertise in preparing for and carrying out these schemes. For example, in a meeting in March 2011, Masso explained that they should carry their law enforcement badges during the operation and, if stopped, say they were police officers working off-duty to deliver items that had been purchased at an auction. The group also discussed using their specialized knowledge as law enforcement officers in determining the ideal vehicles to rent to transport the goods. Oklu specifically recommended that the group not travel together in the rental vehicles they used to transport the purportedly stolen goods in order to avoid raising the suspicion of law enforcement. During his guilty plea, OKLU admitted that he had knowingly transported what he believed were stolen cigarettes, slot machines, and other merchandise across state lines and had willfully transported firearms across state lines.
In addition to the prison term, Judge Pauley sentenced Oklu, 36, of Sunnyside, New York, to three years of supervised release and ordered him to pay a $7,500 fine and a $200 special assessment fee. Judge Pauley also imposed on Oklu an agreed upon forfeiture amount of $35,000, representing his share of the crime proceeds. Pursuant to Oklu’s guilty plea, Oklu relinquished his interests in guns seized from him at the time of his arrest.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Internal Affairs Bureau of the NYPD.
This prosecution is being handled by the Office’s Public Corruption and Complex Frauds Units. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.

Yonkers Man Arrested on Charges of Impersonating an FBI Agent

Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced today that Ayman Rabadi , 52, of Yonkers, New York, was arrested yesterday by agents of the Federal Bureau of Investigation on charges of impersonating a special agent of the FBI. According the complaint, filed in federal district court in White Plains today, from November 2010 to date, Rabadi has, in at least three separate instances, falsely represented to others that he was a special agent with the FBI and offered them various forms of assistance including obtaining identification documents and obtaining the release of their relatives from jail.
Manhattan U.S. Attorney Bharara stated, “Rabadi’s ability to prey on vulnerable victims by pretending to be a federal agent came to an end today when he tried to extract money from a real federal agent.”
FBI Assistant Director in Charge Venizelos stated, “Rabadi took the easy road to fast money by impersonating an FBI agent. But the easy road was the crooked path that ultimately led to his arrest by the FBI.”
According to the allegations in the complaint unsealed today in White Plains federal court:
An undercover FBI agent acting as the niece of one of Rabadi’s victims paid Rabadi $10,000 cash yesterday at a Yonkers restaurant. The money was, purportedly, a down payment towards the $300,000 Rabadi had asked for in exchange for obtaining the release of one of the victim’s relatives from jail. Rabadi was arrested immediately after leaving the restaurant and was in possession of the $10,000 cash. Also, Rabadi has an extensive criminal history including a 2008 conviction in the state of New Jersey for the felony of theft by deception. In that case, Rabadi created the false impression that there were criminal charges pending against the victim, that Rabadi was connected to law enforcement and that he could cause the dismissal of the charges against the victim for $75,000.

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At his arraignment before U.S. Magistrate Paul E. Davison in White Plains this afternoon, Judge Davison ordered that Rabadi be held without bail pending his next court appearance, a bail hearing on Tuesday, April 23, 2013, at 10 a.m.
If convicted on the charge in the complaint, Rabadi faces a maximum sentence of three years’ imprisonment and a $250,000 fine.
Mr. Bharara praised the work of the FBI in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Elliott B. Jacobson 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

Former New York Fund Manager Pleads Guilty in Connection with Multi-Million-Dollar Commodities Fraud Scheme

NEW YORK—Thomas Hampton, formerly the managing director of Hampton Capital Markets LLC, pleaded guilty today in New York federal court to commodities fraud in connection with an investment scheme in which Hampton concealed millions of dollars in losses he incurred trading various securities, including S&P 500 futures contracts tied to the S&P 500 stock index, announced U.S. Attorney for the Southern District of New York Preet Bharara. Hampton was charged in December 2012 and pleaded guilty today before U.S. Magistrate Judge James C. Francis, IV.
U.S. Attorney Bharara said, “Thomas Hampton blatantly deceived his investors in a scheme that resulted in millions of dollars in losses for scores of people. His guilty plea today ensures that he will be punished for those deceptions and that, to the extent possible, his investor victims will be made whole.”
According to the charging instruments in this case and statements made in open court today at the plea proceeding:
From September 2010 through September 2011, Hampton was the managing director of Hampton Capital, an Arizona limited liability company that had more than $4 million in assets under management. Hampton Capital engaged in the business of buying and selling exchange traded funds (ETFs). An ETF is an investment fund that holds assets such as stocks, commodities or bonds and typically tracks—or attempts to replicate the performance of—an underlying benchmark or index, such as the S&P 500 equities market index. Hampton Capital purported to utilize specially designed computer software to trade ETFs based on pricing inefficiencies. In his role as managing director, Hampton bought and sold various securities, including futures contracts, on behalf of Hampton Capital.
When Hampton Capital began to suffer substantial losses as a result of Hampton’s trading, he concealed those losses from investors by, among other things, falsely representing that the investments continued to earn profits. For example, Hampton provided monthly statements to investors as early as April 2011 that falsely reflected a positive return for Hampton Capital instead of disclosing the actual losses suffered. Based on his misrepresentations and omissions, Hampton Capital investors did not seek to redeem or withdraw their investments. In fact, some investors provided additional investment capital. As a result of the scheme, more than 50 investors lost millions of dollars in the aggregate.
Hampton, 44, of St. Louis, pleaded guilty to one count of commodities fraud. He faces a maximum sentence of 10 years in prison and a fine of the greater of $1 million or twice the gross gain or gross loss from the offense. In connection with his guilty plea, Hampton agreed to forfeit the illegal proceeds of his crimes and will be ordered to pay restitution to the victims of his offense.
U.S. Attorney Bharara praised the investigative work of the FBI. He also thanked the U.S. Commodity Futures Trading Commission for their assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney 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 Jillian B. Berman and Emil J. Bove, III are in charge of the prosecution.

Ralph Lauren Corporation Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $882,000 Monetary Penalty

WASHINGTON—Ralph Lauren Corporation (RLC), a New York-based apparel company, has agreed to pay an $882,000 penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in Argentina to obtain improper customs clearance of merchandise, announced Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the agreement, the manager of RLC’s subsidiary in Argentina bribed customs officials in Argentina over the span of five years to improperly obtain paperwork necessary for goods to clear customs; permit clearance of items without the necessary paperwork and/or the clearance of prohibited items; and on occasion, to avoid inspection entirely. RLC’s employee disguised the payments by funneling them through a customs clearance agency, which created fake invoices to justify the improper payments. During these five years, RLC did not have an anti-corruption program and did not provide any anti-corruption training or oversight with respect to its subsidiary in Argentina.
In addition to the monetary penalty, RLC agreed to cooperate with the Department of Justice, to report periodically to the department concerning RLC’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations. If RLC abides by the terms of the agreement, the Department will not prosecute RLC in connection with the conduct.
The agreement acknowledges RLC’s extensive, thorough, and timely cooperation, including self-disclosure of the misconduct, voluntarily making employees available for interviews, making voluntary document disclosures, conducting a worldwide risk assessment, and making multiple presentations to the Department on the status and findings of the internal investigation and the risk assessment. In addition, RLC has engaged in early and extensive remediation, including conducting extensive FCPA training for employees worldwide; enhancing the company’s existing FCPA policy; implementing an enhanced gift policy and other enhanced compliance, control, and anti-corruption policies and procedures; enhancing its due diligence protocol for third-party agents; terminating culpable employees and a third-party agent; instituting a whistleblower hotline; and hiring a designated corporate compliance attorney.
In a related matter, the U.S. Securities and Exchange Commission today announced a non-prosecution agreement with RLC in which RLC agreed to pay $$734,846 in disgorgement and prejudgment interest.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Sarah Coyne, Chief of the Business and Securities Fraud Section of the Eastern District of New York. The case was investigated by the FBI’s New York Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Former Hickory Resident Sentenced to More Than Five Years in Prison for Wire Fraud and Money Laundering Offenses

STATESVILLE, NC—A former Hickory, North Carolina resident was sentenced to 65 months in prison on Monday, April 8, 2013, for wire fraud and money laundering offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Court Judge Richard Voorhees also ordered Andrew Geiger, 48, of South Amboy, New Jersey, to serve two years of supervised release following his prison term.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), joins U.S. Attorney Tompkins in making today’s announcement.
In March 2012, Geiger pleaded guilty to one count of wire fraud and one count of money laundering for carrying out an eight-year scheme to defraud his employer, Bernhardt Furniture Company (“Bernhardt) of over $563,000. The stolen money represented a 41 percent increase in the legitimate compensation he received from Bernhardt in the same time period.
According to filed court documents and yesterday’s sentencing hearing, from approximately June 1996 until January 2008, Geiger was employed by Bernhardt as the director of Manufacturing, Casegoods-Bernhardt Contract Division. In that capacity, Bernhardt had the authority to negotiate and enter into contracts with third party manufacturers on behalf of Bernhardt. Court records show that in approximately December 1999, Geiger negotiated an agreement with a Canadian company for the manufacture of an office furniture line for Bernhardt and negotiated an agreement to pay the Canadian company a rate of 34 percent of the product’s list price.
Court documents indicate that shortly after thereafter, and unbeknownst to Bernhardt, Geiger created a company, Furniture Works International (“FWI”), and directed the Canadian manufacturer to ship the office furniture products to FWI. In reality, FWI was a sham entity that was owned and controlled by Geiger and utilized solely to advance his fraud scheme. Court records show that in fraudulent communications, Geiger told the Canadian manufacturer that the product would be sent to FWI so it could be “re-packaged.” According to filed documents, Geiger falsely advised the Canadian company that Bernhardt had authorized an increase in its payment from 34 to 39 percent, with the additional difference being paid to FWI and then later funneled to Geiger. To further his scheme, Geiger caused the Canadian company to receive bogus correspondence from FWI asserting, among other things, Bernhardt approved FWI’s involvement in the transaction and that Bernhardt approved the payment of FWI’s fee to be paid from the proceeds of the Bernhardt’s payment to the Canadian company. Moreover, beginning in approximately October 2006, Geiger directed all shipments directly to Bernhardt’s factory in Lenoir, but he still collected the bogus fees through FWI. Geiger’s fraud scheme was discovered by Bernhardt when he left the company for another position in the furniture industry, court records show.
In pronouncing the sentence, Judge Voorhees noted the “very egregious nature of the offense” and ordered Geiger to pay restitution to his Bernhardt in the amount of $563,164.
Geiger was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and IRS. The prosecution was handled by Assistant U.S. Attorneys Mark T. Odulio and Maria K. Vento, of the U.S. Attorney’s Office in Charlotte.

Greer Husband and Wife Sentenced for Filing False Tax Returns

SPARTANBURG, SC—A husband and wife from Greer, South Carolina were sentenced on Thursday, April 11, 2013, for filing false tax returns, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division (IRS-CI); David A. Thomas, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Columbia Division, in South Carolina; and James Ward, Special Agent in Charge, Department of Homeland Security-Office of the Inspector General in Atlanta join U.S. Attorney Tompkins in making today’s announcement.
U.S. District Court Judge Mary G. Lewis sentenced Julie Greene Tucker, 52, of Greer to 33 months in prison, to be followed by three years of supervised release. Tucker’s husband, James Dean Tucker, 54, also of Greer, was sentenced to eight months of house arrest and five years of probation. The Tuckers were ordered to pay $191,049 restitution to IRS, jointly and severally. Julie Tucker was ordered to pay an additional $590,128 as restitution to her former employer.
“For approximately 15 months, the Tuckers used stolen money to fund a luxurious lifestyle way above their means. Today’s sentence sends a clear message that my office will work with our law enforcement partners to hold accountable those who break the law and to ensure the only rewards crooks get are stiff penalties and prison sentences,” said U.S. Attorney Tompkins.
“The IRS fosters confidence in the American tax system through the prosecution and conviction of individuals who intentionally conceal income and evade taxes. We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS,” stated Jeannine A. Hammett, Special Agent in Charge of the Charlotte Field Office.
“The Tuckers funded their lavish lifestyle of luxury cars and expensive vacations with embezzled money. The FBI and our law enforcement partners remain committed to holding those accountable who abuse their positions for their own personal profit,” said David A. Thomas, Special Agent in Charge of the Columbia Division of the FBI.
In November 2012, James and Julie Tucker pleaded guilty to a criminal bill of information charging them with two counts of filing false tax returns. In addition, Julie Tucker pleaded guilty to one count of wire fraud. According to filed court documents and yesterday’s sentencing hearing, from in or about 1996 through in or about July 2011, Julie Tucker was employed at Trendset Inc. (“Trendset”), a freight audit business located in Greenville, South Carolina. Her last position at Trendset was director of Administration. Court records show that in that capacity, Julie Tucker had access to Trendset bank accounts and had the authority to write checks and initiate wire transfers from these accounts on behalf of Trendset. From April 1986 through July 2012, James Tucker was employed with the Department of Homeland Security and stationed in Greenville.
According to filed documents and court proceedings, beginning in or about 2010 and continuing until her resignation in July 2011, Julie Tucker embezzled money from Trendset bank accounts. Unbeknownst to Trendset, Julie Tucker used her access to the company’s bank accounts to wire money to her name and into accounts held jointly by her and her husband. Court records indicate that Julie Tucker also wired funds and wrote checks from these accounts to make direct payments on several automobile loans and a credit card in the couple’s name.
Based on filed court documents and statements made in court, Julie and James Tucker used the embezzled funds to perform major home renovations, purchase a second home, and buy three luxury vehicles for themselves and an additional vehicle for the daughter of a Trendset co-worker. Court records indicate that the couple joined a local country club where they hosted a lavish Christmas party for family and friends. The couple also used the embezzled funds to pay for several personal vacation trips. According to yesterday’s sentencing hearing, Julie Tucker also spent well over $100,000 in jewelry purchases. The couple failed to include taxable income derived from Julie Tucker’s embezzlement scheme in their joint tax 2010 and 2011 tax returns, court records show.
Court records indicate that James Tucker lied to co-workers when he was asked about the couple’s lifestyle improvements and spending. Court records indicate that James Tucker sometimes would say that the couple received the money from James Tucker’s father after a profitable sale of Hormel stock. Other times, James Tucker would say his wife had received a big promotion at Trendset and that she was making a lot more money than he was, court records indicate.
Julie Tucker was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the IRS, FBI, and DHS-OIG. The prosecution was handled by Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville.