Department Of Veterans Affairs Official Sentenced To 11 Years In Prison For $2 Million Bribery Scheme Involving Program For Disabled Military Veterans

The U.S. Justice Department released the below information:

A former U.S. Department of Veterans Affairs (VA) official was sentenced today for demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools and facilitating over $2 million in payments from the VA using the veterans’ federal benefits. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.

James King, 63, of Baltimore, Maryland, previously pleaded guilty to an Information alleging one count of honest services and money/property wire fraud, one count of bribery of a public official, and one count of falsifying records to obstruct an investigation.  King was sentenced by U.S. District Judge John D. Bates of the District of Columbia to serve 132 months in prison to be followed by three years of supervised release, and to pay $155,000 in restitution to the VA.  Earlier this week, Judge Bates sentenced three school owners and employees who admitted to bribing King.  Albert Poawui, the owner of Atius Technology Institute, was sentenced to serve 70 months in prison and ordered to pay $1.5 million in restitution.  Sombo Kanneh, Poawui’s employee, was sentenced to serve 20 months in prison and ordered to pay $113,000 in restitution.  Michelle Stevens, the owner of Eelon Training Academy, was sentenced to serve 30 months in prison and ordered to pay $83,000 in restitution.

“James King and his associates exploited an important VA program that provides valuable services to our disabled military veterans,” said Assistant Attorney General Benczkowski.  “This prosecution once again demonstrates the Justice Department’s commitment to hold accountable those who seek to defraud government programs for their own personal enrichment.”

“James King blatantly betrayed his responsibility with the VA to provide job and educational counseling to disabled military veterans who turned to him for help,” said U.S. Attorney Liu.  “Instead of helping our veterans, he lined his own pockets by taking bribes to send them to three sham schools that brought them only pain and frustration. Today’s sentencing holds him accountable for this breach of trust and this waste of taxpayer money.”

“King tried to use his position to enrich himself at the expense of veterans who have honorably served our country,” said FBI Special Agent in Charge DeSarno.  “Today's sentencing makes it clear that such activity by anyone affiliated with the U.S. government will not be tolerated.  The FBI will work closely with our partners to continue to aggressively investigate allegations of corruption.”

“We are pleased to see Mr. King, a person who abused his position of trust and the veterans he was supposed to serve, sentenced today,” said VA OIG Special Agent in Charge Lampkins.  “This sentence sends a clear message that VA OIG is dedicated to prosecuting those that take advantage of VA programs that are intended to help our veterans and their families.”

According to King’s admissions made in connection with his plea, the Vocational Rehabilitation and Employment (VR&E) provides disabled U.S. military veterans with education and employment-related services.  VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.

From 2015 through 2017, King, using his position as a VR&E program counselor, demanded and received cash bribes from the owners of Atius Technology Institute (Atius), Eelon Training Academy (Eelon), and School A, a school purporting to specialize in physical security classes.  King facilitated over $2 million in payments to Atius, over $83,000 to Eelon, and over $340,000 to School A, all in furtherance of King’s separate agreements with the respective school owners to commit bribery and defraud the VA.  King agreed with Poawui and Stevens that they would each pay him, in cash, seven percent of the money they received from the VA in exchange for King steering veterans to their schools and facilitating VA payments.  King similarly accepted cash payments from the owner of School A, who is identified as Person A in the Information, in exchange for the same official acts.

In order to maximize the profits from their fraud, all three school owners sent King and other VA officials false information about the education being provided to veterans, and King facilitated payments to all three schools knowing this information was false.  King also admitted to repeatedly lying to veterans under his supervision in order to convince them to attend Atius, Eelon, or School A.  For example, King falsely instructed one veteran that, unless he attended School A, his VR&E program benefits would “lapse.”  King insisted that this veteran enroll in School A despite the veteran’s protests that he could not engage in physical security work due to a physical disability, and despite the fact that the veteran had enrolled in the VR&E program to pursue his dream of becoming a baker.

In early 2017, the VA initiated a fact-finding inquiry into Atius based on complaints by students as to the quality of education at the school.  In August 2017, after King became aware of the inquiry, he created a falsified site visit report and instructed Poawui to send it to another VA official, all in an effort to obstruct the VA’s inquiry into Atius.  In January 2018, King attempted to convince Poawui to lie to the grand jury about the purpose of the bribe payments.

King’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General.  Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section, former Assistant U.S. Attorney and current Fraud Section Trial Attorney Sonali D. Patel and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.

Justice Department Announces First Criminal Illegal Entry Prosecutions Of Suspected Caravan Members

The U.S. Justice Department released the below information:

The Department of Justice today filed criminal charges against eleven different suspected members of the so-called “caravan” in the United States District Court for the Southern District of California, announced Attorney General Jeff Sessions and U.S. Attorney for the Southern District of California Adam Braverman. All defendants are alleged to have illegally entered the country in violation of 8 U.S.C § 1325, and one defendant is also alleged to have been previously deported and was charged with 8 U.S.C § 1326 (illegal reentry).

“When respect for the rule of law diminishes, so too does our ability to protect our great nation, its borders, and its citizens,” said Attorney General Jeff Sessions. “The United States will not stand by as our immigration laws are ignored and our nation’s safety is jeopardized. U.S. Attorney Adam Braverman and his team should be commended for quickly filing illegal entry charges for individuals apprehended along the southwestern border. We will continue to work with our partners in each U.S. Attorney’s Offices to aggressively pursue prosecutions of criminal illegal entry.”

“The American Dream has beckoned immigrants from across the globe because of the promise that prosperity and success are within reach for all,” said United States Attorney for the Southern District of California Adam L. Braverman. “Those immigrants have contributed their voices and perspectives to make up our uniquely American experience. But the foundation for the American Dream, and what allows our democracy to flourish, is commitment to the rule of law.  These eleven defendants face charges now because they believed themselves to be above the law. Those seeking entry into the United States must pledge fidelity to the law, not break them, or else face criminal prosecution.”

According to the complaints, defendants were apprehended by Border Patrol in the following areas known as: Goat Canyon, 35 Draw, Eucci Grove, and W-8. Goat Canyon, 35 Draw, and Eucci Grove are approximately four miles west of the San Ysidro, California Port of Entry, and W-8 is approximately two miles west of San Ysidro.

The complaints allege that the defendants knowingly and willingly entered into the United States at a time and place other than as designated by Immigration Officers, and eluded examination and inspection by Immigration Officers.

A complaint contains allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Obama Nominee Slammed For Legal Aid To Convicted Cop Killer Abu-Jamal

 

Robert Moran at the Philadelphia Inquirer offers a piece on the controversal nomination of Debo Adegbile to the Department of Justice.

Longtime Seseme Street viewers may remember him as Debo, the little boy who chatted with Grover about the letter S in the 1970s.

But to the National Fraternal Order of Police, Debo Adegbile is a civil rights lawyer who "turned the justice system on its head" by providing legal assistence for Mumia Abu-Jamal.

The Police group is fighting Adegbile's nomination by President Obama to head voter-rights enforcement at the Department of Justice.

You can read the rest of the piece via the below link:

http://www.philly.com/philly/news/politics/20140109_Obama_voter-rights_nominee_slammed_for_legal_aid_to_Abu-Jamal.html

You can also read my Greathistory.com review of Murdered by Mumia via the below link:

http://www.pauldavisoncrime.com/2009/04/american-crime-blog-widow-of-slain.html

And you can read my Crime Beat column on the Abu-Jamal case via the below link:

http://www.pauldavisoncrime.com/2012/11/crime-beat-column-cop-killer-look-back.html

New FBI Director Confirmed by Senate

The FBI web site offers a piece on the new FBI director's Senate confrmation yesterday:

On July 29, the U.S. Senate voted to confirm James B. Comey, Jr. as the next FBI Director.

“Jim’s experience, judgment, and strong sense of duty will benefit the Bureau and the country as a whole,” said current Director Robert S. Mueller. “He is excited about the prospect of leading an agency of individuals who are united by a fierce desire to do something good for their country.”

In his early career, Comey worked as an assistant U.S. attorney for the Southern District of New York and later became the managing assistant U.S. attorney in charge of the Richmond Division in the Eastern District of Virginia. In 2002, he returned to the Southern District of New York as the U.S. attorney.

In 2003, Comey became deputy attorney general at the Department of Justice (DOJ). As second in command, he ran the day-to-day operations of the department. In 2005, he left DOJ to become general counsel and senior vice president at Lockheed Martin. Five years later, he joined Bridgewater Associates, a Connecticut-based investment fund, as its general counsel. Last year, he became the senior research scholar and Hertog Fellow on national security law at Columbia Law School.

“I have had the opportunity to work with Jim at the Department of Justice,” said Director Mueller. “He is a man of honesty, dedication, and integrity. These core values make him the right person for this job.”

Comey will periodically visit FBI Headquarters over the next few weeks to ensure a smooth and efficient transition on September 4, Director Mueller’s last day in office. 

You can read Comey's bio via the below link:

http://www.fbi.gov/news/stories/2013/june/president-nominates-new-fbi-director/james-comey-biography

Note: The above FBI photo shows Comey at the Senate confirmation.

High-Ranking Member Of "Los Zetas" Crime Cartel Pleds Guilty To Drug Conspiracy Charges

 

The U.S. Justice Department and the DEA released the below information today:

Jesus Enrique Rejon Aguilar, aka “Mamito” and “Caballero,” a high ranking member of the “Los Zetas” drug cartel, pleaded guilty today to conspiracy to import multi-ton quantities of cocaine and marijuana into the United States, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
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Rejon Aguilar, 36, pleaded guilty before U.S. District Judge Barbara J. Rothstein in the District of Columbia. Rejon Aguilar was extradited to the United States in September 2012 and was ordered detained in federal custody pending trial.
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On Nov. 4, 2010, Rejon Aguilar and 19 co-defendants were charged in a superseding indictment with conspiracy to manufacture and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation into the United States. The indictment charges that between 2000 and 2010, members of Los Zetas, including Rejon Aguilar, engaged in a conspiracy with members of the Gulf Cartel in an arrangement referred to as the “Company” to import drugs into the United States. Rejon Aguilar was an original member of Los Zetas and held a high ranking position with the Company.
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“As a leader of the Company’s drug trafficking operation, Rejon Aguilar ensured that mass quantities of cocaine and marijuana were brought into the United States for distribution,” said Assistant Attorney General Breuer. “The Justice Department is committed to working with its law enforcement partners to bring cartel members and associates to justice for their crimes.”
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“As an original and high-ranking member of the Los Zetas cartel, Jesus Enrique Rejon Aguilar was responsible for funneling massive amounts of marijuana and cocaine into the United States while using violence to intimidate anyone that stood in his way,” said DEA Administrator Leonhart. “Rejon Aguilar’s plea today was possible only with the strength and power of international law enforcement cooperation. DEA, along with our Mexican counterparts, are committed to bringing violent criminals like Rejon Aguilar, to justice.”
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According to the indictment, the Company transported shipments of cocaine and marijuana by motor vehicles from Mexico to cities in Texas for distribution to other cities within the United States. The indictment alleges that Rejon Aguilar, his co-defendants and others organized, directed and carried out various acts of violence to retaliate against and to intimidate anyone who interfered with, or who were perceived to potentially interfere with, the cocaine and marijuana trafficking activities of the Company.
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On April 15, 2009, under the Foreign Narcotics Kingpin Designation Act, the President identified Los Zetas as a Significant Foreign Narcotics Trafficker. On March 24, 2010, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) named Rejon Aguilar as a Significant Foreign Narcotics Trafficker. On July 25, 2011, an executive order was issued that blocks the transfer, payment or export of property belonging to certain transnational criminal organizations, including Los Zetas.
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The department expressed its gratitude and appreciation to the government of Mexico for its assistance in this matter.
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At sentencing, Rejon Aguilar faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
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The case is being prosecuted by trial attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The investigation in this case was led by the DEA’s Houston Field Division and the DEA Bilateral Investigation Unit.

International Drug Trafficker Extradited From Czech Republic To United States

The DEA released the below information yesterday.

Shiraz Malik, 34, an alleged international drug trafficker, has been extradited from the Czech Republic to the United States to face charges filed in the Eastern District of California. 
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Malik, a Pakistani national who resided in Poland, is alleged to have controlled a wide-ranging drug trafficking organization that used the Internet and front companies in Europe to sell various drugs and controlled substances to customers worldwide.
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He was arrested at the Prague International Airport on September 8, 2011, following a lengthy investigation that included undercover meetings in three European countries.
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His extradition to the United States, which took place June 22, 2012 was announced today by Drug Enforcement Administration Special Agent in Charge Anthony D. Williams; United States Attorney for the Eastern District of California Benjamin B. Wagner; Special Agent in Charge, IRS Criminal Investigation, Marcus Williams; ICE Homeland Security Investigations Special Agent in Charge Clark Settles; and El Dorado County Sheriff John D’Agostini.
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Malik made his first appearance before U.S. Magistrate Judge Gregory G. Hollows today for arraignment and pleaded not guilty. He was ordered detained pending trial.
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“This transnational drug trafficking organization had tentacles that extended across multiple continents, where they operated without regard for life or law. We will continue to fully investigate the extent of this organization and its operations. The success of this case would not be possible without the outstanding assistance and support received from our foreign and domestic counterparts,” stated DEA Special Agent in Charge Williams.
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U.S. Attorney Wagner said: “The indictment alleges that Shiraz Malik controlled a worldwide organization that trafficked in a variety of dangerous drugs. But if Mr. Malik believed that his movement among multiple countries would protect him from law enforcement, he was mistaken. Just as his operation was international, so was the effort to apprehend him. We are grateful for the cooperation of Interpol and law enforcement authorities in several countries who assisted in the investigation, and we are pleased that Malik will be facing justice in Sacramento.”
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“Upon conviction of the drug related offenses, Malik is subject to forfeit all property, real and personal, involved in the violations,” said IRS-CI Assistant Special Agent in Charge Goss. “One of the government’s most powerful weapons in fighting crime is the ability to seize a criminal’s assets through asset forfeiture. By taking away their assets and profits, we deprive criminals of the proceeds of their illicit activity.”
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“The sale of controlled substances over the Internet by unlicensed vendors like this defendant poses a serious health threat to those who shop for prescription drugs online,” said Daniel Lane, assistant special agent in charge for ICE Homeland Security Investigations in Sacramento. “This extradition shows how law enforcement agencies worldwide are working together to protect consumers by dismantling these illegal and highly dangerous criminal enterprises.”
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According to the 40-count indictment filed in the Eastern District of California on September 28, 2011, from June 1, 2008 through September 8, 2011, Malik sold pharmaceuticals, drugs, and highly regulated chemicals to customers in the United States, Europe, Mexico and other countries and conspired to launder the profits of that activity. According to court documents, Malik was in charge of an operation that involved persons in multiple countries who collected and shipped his products and assisted in money laundering.
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In May 2008, DEA agents learned of two business-to-business Internet websites on which businesses were offering to sell and illegally import into the United States pharmaceutical drugs such as Oxycontin, which are Controlled Substances under U.S. law, and regulated chemicals such as ephedrine HCL, which is a precursor chemical used to manufacture methamphetamine. Two businesses that were offering controlled substances through the websites were Shama Medical Store in Karachi, Pakistan and Good Luck Trading Company in the United Kingdom. Both businesses referred customers to email addresses associated with Shiraz Malik.
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According to court documents, undercover agents, primarily using email communications, made numerous purchases of pharmaceutical drugs, ephedrine, ketamine (a commonly abused anesthetic), and heroin from both Shama Medical and Good Luck Trading. Malik had the drugs shipped to the agents in Sacramento. Malik also sent them numerous samples of various pharmaceutical drugs, heroin, and methamphetamine in order to obtain their business. Malik maintained at least two bank accounts in Poland that he used to receive payments for Internet drug purchases from undercover agents.
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According to documents filed in the case, undercover agents met with Malik on three separate occasions in Milan, Italy (June 2009), Vienna, Austria (November 2009), and in Budapest, Hungary (August 2010). During those meetings, with the cooperation of law enforcement officials in the host countries, the agents posed as U.S.-based illegal drug dealers and had discussions with Malik about future purchases and possible collaborative efforts. In the meetings, Malik explained that his operation sold a variety of pharmaceutical and controlled substances including: steroids, OxyContin, ketamine, diazepam, lidocaine, illegal drugs including heroin from Pakistan, Ecstasy from Holland, methamphetamine (believed to be made in the Czech Republic), and ephedrine from India or China.
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According to court documents, Malik took the orders from customers via the Internet and coordinated with his people in Pakistan to fill the orders. The drugs were sent from Pakistan to the customers, and Malik emailed to the customers the tracking numbers that his co-conspirators in Pakistan gave him. Malik sold large quantities of ephedrine to one or more customers in Mexico, the country of origin for most of the methamphetamine sold in the United States.
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This case is the product of an extensive investigation by the Drug Enforcement Administration and the IRS Criminal Investigation, with assistance from the U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the El Dorado County Sheriff’s Department. The Office of International Affairs in the Justice Department’s Criminal Division provided invaluable assistance. Assistant United States Attorneys Richard J. Bender and Daniel S. McConkie are prosecuting the case.
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If convicted of the charges, Malik faces a maximum penalty of life in prison. The actual sentence, 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.
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The charges in the indictments are merely allegations and a defendant is presumed innocent until proven guilty.

Sixteen Individuals Arrested In The United States For Alleged Roles In Cyber Attacks

The U.S. Justice Departmant released the below information yesterday:

WASHINGTON - Fourteen individuals were arrested today by FBI agents on charges related to their alleged involvement in a cyber attack on PayPal’s website as part of an action claimed by the group “Anonymous,” announced the Department of Justice and the FBI. Two additional defendants were arrested today on cyber-related charges.

The 14 individuals were arrested in Alabama, Arizona, California, Colorado, the District of Columbia, Florida, Massachusetts, Nevada, New Mexico and Ohio on charges contained in an indictment unsealed today in the Northern District of California in San Jose. In addition, two individuals were arrested on similar charges in two separate complaints filed in the Middle District of Florida and the District of New Jersey. Also today, FBI agents executed more than 35 search warrants throughout the United States as part of an ongoing investigation into coordinated cyber attacks against major companies and organizations. Finally, the United Kingdom’s Metropolitan Police Service arrested one person and the Dutch National Police Agency arrested four individuals today for alleged related cyber crimes.

According to the San Jose indictment, in late November 2010, WikiLeaks released a large amount of classified U.S. State Department cables on its website. Citing violations of the PayPal terms of service, and in response to WikiLeaks’ release of the classified cables, PayPal suspended WikiLeaks’ accounts so that WikiLeaks could no longer receive donations via PayPal. WikiLeaks’ website declared that PayPal’s action “tried to economically strangle WikiLeaks.”

The San Jose indictment alleges that in retribution for PayPal’s termination of WikiLeaks’ donation account, a group calling itself Anonymous coordinated and executed distributed denial of service (DDoS) attacks against PayPal’s computer servers using an open source computer program the group makes available for free download on the Internet. DDoS attacks are attempts to render computers unavailable to users through a variety of means, including saturating the target computers or networks with external communications requests, thereby denying service to legitimate users. According to the indictment, Anonymous referred to the DDoS attacks on PayPal as “Operation Avenge Assange.”

The defendants charged in the San Jose indictment allegedly conspired with others to intentionally damage protected computers at PayPal from Dec. 6, 2010, to Dec. 10, 2010.

The individuals named in the San Jose indictment are: Christopher Wayne Cooper, 23, aka “Anthrophobic;” Joshua John Covelli, 26, aka “Absolem” and “Toxic;” Keith Wilson Downey, 26; Mercedes Renee Haefer, 20, aka “No” and “MMMM;” Donald Husband, 29, aka “Ananon;” Vincent Charles Kershaw, 27, aka “Trivette,” “Triv” and “Reaper;” Ethan Miles, 33; James C. Murphy, 36; Drew Alan Phillips, 26, aka “Drew010;” Jeffrey Puglisi, 28, aka “Jeffer,” “Jefferp” and “Ji;” Daniel Sullivan, 22; Tracy Ann Valenzuela, 42; and Christopher Quang Vo, 22. One individual’s name has been withheld by the court.

The defendants are charged with various counts of conspiracy and intentional damage to a protected computer. They will make initial appearances throughout the day in the districts in which they were arrested.

In addition to the activities in San Jose, Scott Matthew Arciszewski, 21, was arrested today by FBI agents on charges of intentional damage to a protected computer. Arciszewski is charged in a complaint filed in the Middle District of Florida and made his initial appearance this afternoon in federal court in Orlando, Fla.

According to the complaint, on June 21, 2011, Arciszewski allegedly accessed without authorization the Tampa Bay InfraGard website and uploaded three files. The complaint alleges that Arciszewski then tweeted about the intrusion and directed visitors to a separate website containing links with instructions on how to exploit the Tampa InfraGard website. InfraGard is a public-private partnership for critical infrastructure protection sponsored by the FBI with chapters in all 50 states.

Also today, a related complaint unsealed in the District of New Jersey charges Lance Moore, 21, of Las Cruces, N.M., with allegedly stealing confidential business information stored on AT&T’s servers and posting it on a public file sharing site. Moore was arrested this morning at his residence by FBI agents and is expected to make an initial appearance this afternoon in Las Cruces federal court. Moore is charged in with one count of accessing a protected computer without authorization.

According to the New Jersey complaint, Moore, a customer support contractor, exceeded his authorized access to AT&T’s servers and downloaded thousands of documents, applications and other files that, on the same day, he allegedly posted on a public file hosting site that promises user anonymity. According to the complaint, on June 25, 2011, the computer hacking group LulzSec publicized that they had obtained confidential AT&T documents and made them publicly available on the Internet. The documents were the ones Moore had previously uploaded.

The charge of intentional damage to a protected computer carries a maximum penalty of 10 years in prison and a $250,000 fine. Each count of conspiracy carries a maximum penalty of five years in prison and a $250,000 fine.

An indictment and a complaint merely contain allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

To date, more than 75 searches have taken place in the United States as part of the ongoing investigations into these attacks.

These cases are being prosecuted by Assistant U.S. Attorneys in the U.S. Attorneys’ Offices for the Northern District of California, Middle District of Florida and the District of New Jersey. The Criminal Division’s Computer Crime and Intellectual Property Section also has provided assistance.

Today’s operational activities were done in coordination with the Metropolitan Police Service in the United Kingdom and the Dutch National Police Agency. The FBI thanks the multiple international, federal and domestic law enforcement agencies who continue to support these operations.

South Philly Mob Talk: The Big Bust

Fox 29's Dave Schratwieser discusses the federal government's takedown of the Philadelphia Cosa Nostra organized crime family with George Anastasia, The Philadelphia Inquirer's veteran organized crime reporter.

You can watch the video via the below link:

http://www.myfoxphilly.com/dpp/news/mob_talk/mob-talk%3A-the-big-bust

You can also read the Justice Department's May 23rd announcement of the indictment below:

WASHINGTON – A superseding indictment was unsealed today against 13 members and associates of the Philadelphia organized crime family of La Cosa Nostra (LCN), including its current boss and underboss. The indictment charges various crimes involving racketeering conspiracy, extortion, loan sharking, illegal gambling and witness tampering.

The charges were announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania; William H. Ryan Jr., Acting Attorney General for the Commonwealth of Pennsylvania; George C. Venizelos, Special Agent in Charge of the FBI’s Philadelphia Field Division; Special Agent in Charge Eric Hylton of the Philadelphia office of Internal Revenue Service (IRS)-Criminal Investigations; Philadelphia Police Commissioner Charles H. Ramsey; Pennsylvania State Police Commissioner Frank Noonan; and Superintendent of the New Jersey State Police Colonel Rick Fuentes .

The defendants charged in the 50-count superseding indictment are Philadelphia LCN family boss Joseph Ligambi, Philadelphia LCN family underboss Joseph Massimino, George Borgesi, Martin Angelina, Anthony Staino Jr., Gaeton Lucibello, Damion Canalichio, Louis Monacello, Louis Barretta, Gary Battaglini, Robert Verrecchia, Eric Esposito and Robert Ranieri.

All but two of the defendants were arrested today and will make initial court appearances in U.S. District Court in Philadelphia at 1:30 pm. EST. Borgesi and Canalichio are already serving federal prison sentences for previous convictions.

“Today’s arrests and charges are the largest enforcement action in a decade against La Cosa Nostra in Philadelphia,” said Assistant Attorney General Breuer. “We have pried loose La Cosa Nostra's grip on power and influence in the United States. But there is still work to be done. We will continue use all the tools at our disposal – including wiretaps, undercover operations and consensual recordings - to build cases against these individuals, and to bring them to justice.”

“It goes without saying that Philadelphia has a rich and vibrant history steeped in government, law and order,” said U.S. Attorney Memeger. “Indeed, the documents which form the basis of our government and the rule of law in this country were signed here. Unfortunately, there continues to exist within Philadelphia a criminal element which refuses to abide by our laws and continues to use force and violence to instill fear and exert power in order to make money. Today, we make clear that such activity will not be tolerated by my office and that La Cosa Nostra remains a priority for the Department of Justice.”

“The significance of the extensive and long-term investigative effort that has resulted in the unsealing of this indictment and the arrests today is that it represents our continuing commitment to the dismantling of the Philadelphia LCN crime syndicate family,” said FBI Special Agent-in-Charge Venizelos. “The FBI in Philadelphia and all of its law enforcement partners will remain focused on identifying and destroying the elements of organized crime that have long victimized Philadelphia and its surrounding communities.”

According to the superseding indictment, the Philadelphia LCN family is one of a number of LCN families based in various cities throughout the United States. The Philadelphia LCN family is led by a boss, who has authority over the activities of the members and associates of organization. If a boss is sent to prison, he appoints an “acting boss” to direct the organization’s affairs. In addition to the boss, the administration of the Philadelphia LCN includes an underboss and consigliere who together oversee crews of criminals led by captains, who in turn supervise organized crime soldiers and associates.

The superseding indictment alleges that for more than a decade, 10 of the defendants, including Ligambi as the boss and Masimino as the underboss, as well as other members and associates of the Philadelphia LCN family, conspired to conduct and participate in the affairs of the Philadelphia LCN family through a pattern of racketeering activity and through the collection of unlawful debts. The alleged racketeering activity includes numerous acts involving extortion, extortionate extensions of credit through usurious loans, extortionate collections, illegal gambling and witness tampering. The organization’s collection of unlawful debts allegedly relates to its loan sharking operations and debts that arose from their illegal gambling businesses.

For example, according to the superseding indictment, Ligambi, Massimino, Staino and other conspirators allegedly ran illegal electronic gambling device businesses, providing video poker machines and other gambling devices for bars, restaurants, convenience stores, coffee shops and other locations in Philadelphia and its suburbs, and then collected the illegal gambling proceeds. After federal law enforcement agents seized 34 of their illegal electronic gambling devices, Ligambi, Massimino and Staino allegedly forced the owners of another illegal electronic gambling device business to sell their illegal businesses to them, including 34 machines.

In another example, the superseding indictment charges that from 2002 to 2006 Massimino extorted yearly tribute payments from a bookmaker to the Philadelphia LCN family so that the bookmaker could avoid personal harm and disruption of the illegal bookmaking business.

According to the superseding indictment, the defendants promoted and furthered their illegal money-making activities through violence, actual and implied threats of violence, and the cultivation and exploitation of the Philadelphia LCN family’s long-standing reputation for violence. The defendants also used this reputation for violence to intimidate and prevent victims and witnesses from cooperating with law enforcement. The indictment alleges various instances where defendants used phrases such as “chop him up” and “put a bullet in your head” when threatening victims. In one instance, Canalicho allegedly used a bat to beat a victim for not paying a loan debt.

The superseding indictment alleges that some of the defendants continued their racketeering activities even after being sent to prison. For example, Borgesi and Massimino, while in prison, allegedly generated criminal proceeds for themselves and the Philadelphia LCN family by using intermediaries to operate criminal businesses and to make extortionate demands at their direction.

Each charge of racketeering conspiracy, collection of unlawful debt, collection of extensions of credit through extortionate means, making extortionate extensions of credit, financing extortionate extensions of credit and witness tampering carries a maximum penalty of 20 years in prison and a $250,000 fine. The illegal gambling charges each carry a maximum penalty of five years in prison and a $250,000 fine.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section, Assistant U.S. Attorneys David E. Troyer and Frank A. Labor III for the Eastern District of Pennsylvania, and Senior Deputy Attorney General Heather A. Castellino of the Pennsylvania Office of Attorney General.

The case is being investigated by the FBI, the IRS-Criminal Investigations, the U.S. Department of Labor Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, the Pennsylvania State Police, the New Jersey State Police and the Philadelphia Police Department. Additional assistance was provided by the New Jersey Department of Corrections.