Law Enforcement

Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Guilty Pleas of Yahoo Executive and California Hedge Fund Portfolio Manager for Inside Trading

Preet Bharara, the United States Attorney for the Southern District of New York; and Janice K. Fedarcyk, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced that Robert Kwok and Reema Shah pled guilty today in Manhattan federal court to one count of conspiracy to commit securities fraud in connection with an insider trading scheme in which Kwok, an executive with Yahoo!, provided material, non-public information to Shah, a portfolio manager at an asset management firm that managed billions of dollars in mutual funds and a hedge fund, concerning Yahoo!’s quarterly earnings and potential business transactions. Shah, who then executed trades in Yahoo!, also pled guilty to one count of securities fraud.

Campaign Official Pleads Guilty to Charges for Activities Involving 2010 District of Columbia Mayoral Election

Admits Obstructing Justice by Destroying Documents, Making False Statements to FBI

Thomas W. Gore, the former assistant treasurer for a District of Columbia mayoral campaign, pled guilty today to obstruction of justice and other charges stemming from his activities involving the 2010 election, announced U.S. Attorney Ronald C. Machen, Jr. and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.

Former City Clerk of Thayer Pleads Guilty to Embezzling $120,000 in City Funds

A former city clerk of the city of Thayer in Neosho County, Kansas has pleaded guilty to embezzling $120,000, U.S. Attorney Barry Grissom said today.

Corporate Lawyer Pleads Guilty in New York to Money Laundering and Conspiracy to Commit Securities Fraud

Martin Weisberg, a former corporate partner in the New York office of an international law firm, pleaded guilty today to one charge of money laundering and one charge of conspiracy to commit securities fraud.

North Carolina Department of Corrections Probation Officer Indicted for Civil Rights Violations

The Department of Justice announced that North Carolina Department of Correction’s Division of Community Corrections Probation Officer Willie James Steele, Jr., 47, was indicted yesterday on civil rights charges for violating the constitutional rights of a female probationer that he was supervising by coercing her into sexual acts on two separate occasions. Steele was indicted by a federal grand jury on two counts of deprivation of rights under color of law and one count of using and carrying a firearm during and in relation to a crime of violence.

Seattle Financial Advisor Indicted in $46 Million Investment Fraud Scheme

Former Head of the National Association of Personal Finance Advisors Diverted Client Funds to His Own Risky Start-Up Ventures

A long-time Seattle financial advisor was indicted today by a federal grand jury with 23 criminal counts, including wire fraud, money laundering and investment advisor fraud, announced U.S. Attorney Jenny A. Durkan. Mark F. Spangler, 57, of Seattle is accused of diverting investor money from accounts he managed to risky start-up ventures in which he or his investment firm had an ownership interest. Spangler allegedly diverted more than $46 million to two companies, one of which is now shut down after failing to generate any positive revenue. Those who invested in the funds managed by Spangler, as part of The Spangler Group Inc.(TSG), were not told that their money was being invested in risky start-up companies. Spangler and several of his companies went into receivership last year. Today, the Securities and Exchange Commission filed a civil suit against Spangler as well. Spangler is scheduled to appear in U.S. District Court in Seattle on May 18, 2012 at 2:30.

Former New Orleans Traffic Court Deputy Clerk Charged with Theft

James E. Singleton, age 45, a resident of New Orleans, Louisiana, was charged in a bill of information with theft, announced U.S. Attorney Jim Letten.

Owner of Houston Health Care Company Convicted of Defrauding Medicare

An owner of a Houston health care company was convicted yesterday by a jury in the Southern District of Texas in connection with a $750,000 Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS).

Local Restaurant Chain Owners Charged with Cheating the IRS of Millions of Dollars

Robert Mattei, Leo McGlynn, Brian Welsh, Joseph Donnelly, and Elena Ruiz—the owners and managers of the Nifty Fifty’s restaurant chain—were charged today by information in a tax evasion conspiracy that cheated the Internal Revenue Service by failing to properly account for more than $15 million in gross receipts.

Former Investment Advisor Sentenced to Three Years in Prison for Stealing More Than $233,000 from Clients

David B. Fein, United States Attorney for the District of Connecticut, today announced that Michael Brady, 37, of Newington, formerly of Bolton, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 36 months of imprisonment, followed by three years of supervised release, for stealing more than $233,000 from clients of his investment business.