Indiana Man Sentenced to More Than 29 Years in Prison for Attempted Robbery of Springboro Bank

CINCINNATI—Anthony Marquette Phillips, 44, of Fort Wayne, Indiana was sentenced to 235 months in prison for his role in the armed robbery of a bank in Springboro on April 27, 2012, plus an additional 120 months for using and discharging a firearm during the course of the robbery.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati (FBI); and Springboro Police Chief Jeffrey Kruithoff announced the sentence handed down June 12 by U.S. District Judge Michael Barrett.
According to court documents, Phillips and Anton Jevon Alexander, 36, of Indianapolis, Indiana, approached the bank manager as he was entering the building’s rear door at 8:30 in the morning and pushed him inside. Springboro police officers received a 911 call and arrived at the bank around 8:40. The would-be robbers attempted to flee when they heard police arriving. Phillips fired a shot at the manager. The manager escaped safely. The men remained in the bank until approximately 1:30 Friday afternoon when they emerged and were taken into custody.
Each defendant pleaded guilty on October 12, 2012. Alexander was sentenced on May 7, 2013, to 15 years in prison.
U.S. Attorney Stewart commended the prompt response and investigation by Springboro Police and FBI agents, as well as District Criminal Chief Kenneth L. Parker and Special Assistant U.S. Attorney Greg Stephens with Butler County Prosecutor Mike Gmoser’s Office, who represented the United States in the case. Stewart also commended the cooperative response and investigation by the Warren County Sheriff’s Office-Tactical Response Unit, Hostage Negotiation Team; the police departments in Miami Township, Franklin, Lebanon, Dayton, Clearcreek Township; the Clearcreek Township Fire Department; and the Ohio State Highway Patrol.

Rancho Santa Fe Consultant Pleads Guilty to Securities Fraud

David Bahr, a self-employed Rancho Santa Fe consultant, pleaded guilty today to conspiracy to commit securities fraud in connection with the Florida-based penny stock company “iTrackr.”
As set forth in his plea agreement, Bahr admitted that he agreed with others to fraudulently manipulate and artificially inflate the price of iTrackr shares in order to make money for himself and his client-investors whom he advised. Bahr admitted that he had bought shares of iTrackr and advised others to do so in order to keep up the price of iTrackr stock and had arranged for the dissemination of promotional material that overstated the likelihood of iTrackr’s success and future profits.
The guilty plea coincides with charges filed today by the Securities and Exchange Commission in connection with the same conduct.
In late November, Bahr spoke on the telephone with an undercover FBI agent posing as a businessman who could arrange for stockbrokers to secretly invest their clients’ money in iTrackr in return for a 30 percent kickback. The undercover officer told Bahr that the kickback would not be disclosed to the brokers’ clients and that he could ensure that the shares would be held for approximately one year, thus keeping the shares off the market and avoiding any sales that would decrease the price.
Bahr agreed to the plan and agreed to pay the kickback. Bahr told the undercover officer that in order to reach his desired share price, he wanted the brokers to buy 10 million shares of iTrackr at an average price of 25 cents per share, for a total investment of $2.5 million. Bahr agreed to pay a total kickback of $750,000.
Bahr and the undercover officer agreed to do a test run. On various days in December 2012, the undercover officer, using FBI funds, made an initial purchase of iTrackr stock, and Bahr purchased a total of 135,000 shares of iTrackr stock. Bahr was satisfied with the purchases and wired a $3,000 kickback to the undercover officer’s bank account. Days later, federal agents searched his Rancho Santa Fe home and seized documents and electronic evidence.
United States Attorney Duffy reiterated her continuing support for the stiff enforcement of federal securities laws and cautioned the public to be vigilant against stock manipulators, especially in the penny stock markets. Duffy praised the hard work of the agents from the Federal Bureau of Investigation and the Internal Revenue Service for their efforts in this fraud investigation and the continuing support of the Securities and Exchange Commission for their expertise and guidance.
Sentencing was set for September 3, 2013, before U.S. District Judge Larry A. Burns. Bahr was released on bond.
Defendant in Case Number 13cr2198-LAB
David Bahr
Summary of Charge
Title 18, United States Code, Section 1349-conspiracy to commit securities fraud.
Maximum penalty: 25 years’ imprisonment and $250,000 fine.
Participating Agencies
Federal Bureau of Investigation
Internal Revenue Service

Members of International Sports Gambling Ring Charged with Racketeering and Extortion

Eighteen members of a violent gambling ring located principally in California and Peru have been charged in an indictment unsealed today with operating “Macho Sports”—an illegal Internet and telephone gambling business.
Participants in the scheme were accused of taking millions of dollars in illegal sports wagers over the last decade in the San Diego and Los Angeles areas. Earlier today, FBI agents arrested 14 of the defendants in coordinated actions in San Diego and Los Angeles while foreign counterparts arrested defendant Erik Portocarrero in Oslo, Norway. FBI agents also executed seizure warrants seeking the forfeiture of at least $5 million in property associated with Macho Sports, including a La Jolla property obtained by conspirators with proceeds from the illegal gambling conspiracy. The FBI investigation, which started in 2011, employed wiretaps and undercover agents to infiltrate the organization and uncover the defendants’ illegal gambling activities and extortionate debt collection.
According to the indictment, Jan Harald Portocarrero and Erik Portocarrero ran Macho Sports from Lima, Peru, using the Internet and toll-free telephone lines to accept bets from customers in California. The organization ensured the prompt payment of gambling debts through the use of intimidation, threats, and violence, as well as fostering a violent reputation as to its treatment of delinquent customers. The co-conspirators avoided detection by laundering their illegal proceeds and maintaining a company headquarters and the physical platform for its Internet operations outside the United States. Although originally from California, the Portocarrero brothers set up Macho Sports first in Panama and later in Peru after suffering previous gambling arrests or convictions in the United States.
In addition to its telephone and Internet operations. Macho Sports used teams of bookies—such as Amir Mokayef (operating primarily in the San Diego area) and Joseph Barrios (operating primarily in the Los Angeles area)—who were responsible for recruiting customers, paying off winning bets, and collecting on losing bets.
Macho Sports’ bookies often managed their own network of “sub-bookies,” who both recruited customers and delivered payments to the managing bookie. For example, San Diego-area bookie Mokayef managed the sub-bookies Michael Christopher Iaco, Howard Alan Blum, Michael John Massey, Salvatore Giacomo Groppo, Nilesh Kumar Ambubhai Patel, and Benjamin John William Weber. Los Angeles-area bookie Barrios managed the sub-bookies Charles Edward Sullivan, Emed G. Sidaros (aka Action Ed), Isaac Pete Gharibeh, and Todd Michael Heflin.
Macho Sports supplied their customers with an account number and password for accessing their gambling accounts on its websites. Bookies instructed their customers that they could place bets with their bookmaker or by calling Macho Sports’ toll-free numbers or through their online accounts on the Macho Sports websites. Typically, Macho Sports would extend credit to new customers, so they could begin sports betting without pre-funding their accounts. Macho Sports also provided further extensions of credit to existing customers, so that those customers could wager larger amounts of money than their prior extensions of credit allowed.
The enterprise also used “runners,” such as Randall Lee Irwin and Larry Neil Gold, who dealt directly with customers on behalf of its various bookies. These runners handled customer payments and collections. To ensure prompt payment, Macho Sports fostered a violent reputation about its treatment of delinquent customers. To this end, and because Macho Sports could not rely on the legal system for debt collection, the enterprise used intimidation, threats, and violence against its customers, especially when customers were late in paying their gambling debts.
United States Attorney Duffy observed that billions of dollars are being made outside the law now that technology has made illegal gambling more accessible: “Illegal gambling is a thriving illegal business hiding in plain sight. The department is committed to combating this crime, which too often is characterized by organized criminals, shady bookies, serious violence, and lives in shambles because of gambling addiction.” FBI Special Agent in Charge, Daphne Hearn, commented, “This case highlights the connection between illegal Internet gambling operations and the violence associated with this type of racketeering activity. Criminal enterprises like ‘Macho Sports’ and their U.S.-based ‘bookmakers’ prey on the gambling addictions of their betting customers, wreaking havoc on people’s lives and the lives of family members.”
Some defendants are expected to be arraigned on the indictment this afternoon before U.S. Magistrate Judge William McCurine, Jr.
An indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Defendants in Case Number 13CR2196-JLS:

Name	Age	Residence
Jan Harald Portocarrero	40	Los Angeles, California
Erik Portocarrero	42	Lima, Peru
Amir Mokayef	37	La Jolla, California
Joseph Barrios	47	Marina Del Ray, California
Randall Lee Irwin	51	Los Angeles, California
Larry Neil Gold	53	North Hollywood, California
Charles Edward Sullivan	40	Canyon Country, California
Michael Christopher Iaco	30	San Diego, California
Emed G. Sidaros	43	Los Angeles, California
Isaac Pete Gharibeh	42	Los Angeles, California
Todd Michael Heflin	45	West Hills, California
Howard Alan Blum	51	Carlsbad, California
Michael John Massey	44	San Diego, California
Salvatore Giacomo Groppo	37	San Diego, California
Nilesh Kumar Ambubhai Patel	26	Los Angeles, California
Benjamin John William Weber	27	La Mesa, California

Corporate Dedendant:
Macho Sports International Corp.
Panama and Peru
Summary of Charges
Count 1: Racketeering conspiracy to conduct enterprise affairs (RICO conspiracy), in violation of Title 18, United States Code, Sections 1962(c)&(d)
Maximum penalties: 20 years in prison, three years’ supervised release, and a $250,000 fine
Count 2: Illegal gambling business, in violation of Title 18, United States Code, Section 1955
Maximum penalties: five years in prison, three years’ supervised release, and a $250,000 fine
Investigating Agencies
Federal Bureau of Investigation
Internal Revenue Service-Criminal Investigation

FBI to Participate in Youth Criminal Justice Academy

Daphne Hearn, Special Agent in Charge (SAC) of the San Diego FBI Field Office, announces the FBI will be participating in a Youth Criminal Justice Academy, presented by the San Diego Learning for Life and Exploring Program. The event will be held on Thursday, June 20, 2013, from 9:00 a.m. to 12:00 p.m., at Camp Balboa, 1207 Upas Street in San Diego, California, 92103.
The FBI, through its Community Outreach Program, is partnering with the Learning for Life and Exploring Program to provide information to young people on career choices and qualifications for law enforcement careers. The event will also provide a chance for participants to receive hands-on-training related to evidence collection techniques. The FBI’s half-day program on June 20th is one of a week-long schedule of programs. The other four days include both federal and local law enforcement programs.
The Youth Criminal Justice Academy event supports the Learning for Life and Exploring mission of enabling young people to become responsible individuals by teaching positive character traits, career development, leadership, and life skills so they can make ethical choices and achieve their full potential. This mission also falls in line with the FBI’s goal of providing positive learning opportunities, career awareness, and safety information to young people.
Learning for Life programs are designed for all age groups from kindergarten through age 20. For more information on the Learning for Life and Exploring Programs, contact Marilyn Copeland at (619) 298-6121 ext. 232 or Marilyn.copeland@lflmail.org. For more information concerning the FBI’s Community Outreach Program, please contact Public Affairs Specialist Emily Yeh at (858) 320-8312 or emily.yeh@ic.fbi.gov or Community Outreach Specialist Erin MacKinnon at (858) 320-8313.

Former Sanger Bank Employee Sentenced to Prison for Embezzling $250,000 from Bank

FRESNO, CA—Mary Helen Perez, 50, of Sanger, was sentenced today by U.S. District Judge Lawrence J. O’Neill to two years and three months in prison for stealing and embezzling from a federally insured bank, announced United States Attorney Benjamin B. Wagner. Judge O’Neill also ordered Perez to pay $249,793 in restitution to the bank.
According to court documents, Perez was the assistant customer service manager at Westamerica Bank in Sanger, where she had been employed for 29 years. Over a four-year period, Perez made approximately 78 cash withdrawals from seven customers’ bank accounts without their knowledge or authorization. Perez targeted customers she believed trusted her and covertly withdrew funds from their bank accounts by filling out withdrawal slips and forging their signatures or writing an “X” on the signature line. Perez spent the overwhelming majority of the embezzled funds at casinos and for other personal expenses.
Perez took several steps to hide her embezzlement from the bank and her victims, including telling some of the customers who questioned her about the unauthorized withdrawals that there would be fees charged for investigating the account discrepancies. Perez also sought to conceal her embezzlement by putting some of the victims’ bank statements on hold status so she would receive them at the bank, where she destroyed them.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christopher Baker prosecuted the case.

Former Fresno Investment Adviser Sentenced to Prison for Defrauding Investors

FRESNO, CA—United States District Judge sentenced Janamjot Singh Sodhi, 35, of Fresno, a former investment adviser, today to four years and nine months in prison for four counts of mail fraud and one count of wire fraud in connection with a scheme to defraud investors, announced United States Attorney Benjamin B. Wagner. The court ordered Sodhi to pay $2,386,000 in restitution to victims.
According to court documents, from 2005 through September 2011, Sodhi carried out a scheme to defraud investors through his business Elite Financial Inc. Sodhi solicited investments from individuals using false pretenses, promising various investment opportunities with high rates of return in a relatively short period of time. He did not use the investors’ funds for the stated investment purpose but instead paid returns to other investors and personal expenses for himself and others. To lull investors into believing that their funds were secure and were being used for their intended purpose, Sodhi periodically sent them false financial statements purportedly showing the investments made on their behalf. When investors requested a return of their investments, Sodhi stalled and delayed by using a variety of falsehoods. In some cases, he repaid certain investors with funds from newly acquired investors. In other cases, he provided investors with repayment checks that were insufficient, counterfeit, or drafted on a closed account.
In January 2006, the New York Stock Exchange permanently debarred Sodhi, and in January 2009, the California Department of Corporations ordered Sodhi to cease and desist from engaging in the business of an investment advisor in California. Despite his debarment and lack of state certification, he continued to hold himself out to clients as an investment/financial adviser who could buy and sell securities on behalf of clients.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorneys Kirk Sherriff and Christopher Baker prosecuted the case.

Bakersfield Couple Pleads Guilty in $6 Million Mortgage Fraud Scheme

FRESNO, CA—Eric Ray Hernandez, 37, and Monica Marie Hernandez, 32, of Bakersfield, pleaded guilty today before Senior United States District Judge Anthony W. Ishii to conspiracy to commit mail fraud, wire fraud, and bank fraud in connection with a mortgage fraud scheme, announced United States Attorney Benjamin B. Wagner.
According to court documents, between October 2005 and May 2007, Eric Hernandez and Monica Hernandez conspired with three other defendants to defraud mortgage lenders by submitting false loan applications and fraudulent documentation to lenders, thereby causing lenders to fund mortgage loans for the defendants’ benefit on the basis of false and misleading information. During this time, Eric Hernandez was employed at a mortgage brokerage in Bakersfield. The defendants caused losses of approximately $6,037,541 for the lenders.
This case is the product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff and Henry Carbajal, III are prosecuting the case.
Eric Hernandez is scheduled to be sentenced on September 9, 2013, at 10:00 a.m. Monica Hernandez is scheduled to be sentenced on November 4, 2013, at 10:00 a.m. They face a maximum statutory penalty of 30 years in prison, a $1 million fine, and five years of supervised release. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Patricia King previously pleaded guilty in the case to three counts of mail fraud and was sentenced to three years and one month in prison. Co-defendants Evelyn Sanchez and Darling Montalvo have pleaded not guilty and are currently set for trial on August 13, 2013. The charges as to Sanchez and Montalvo are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.