Defendant from Shirley Arrested for Aiming a Laser Beam at Aircraft Flying Over Long Island

Federal agents arrested a Shirley, Long Island man this morning on the charge of aiming a laser pointer at two aircraft in August 2012.
The arrest of Angel Rivas was announced today by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge of the Federal Bureau of Investigation, New York Field Office. The defendant is scheduled to be arraigned before the United States Magistrate Judge Arlene R. Lindsay at the United States Courthouse in Central Islip, New York, later today.
According to court filings, on August 21, 2012, the defendant used a laser pointer to direct a laser beam at a commercial aircraft and a Suffolk County Police Department helicopter sent up to investigate the initial incident. Investigators first determined that the beam of light came from the vicinity of the defendant’s residence on William Floyd Parkway in Shirley, New York, and then confirmed that the defendant himself had directed the laser beam at the aircraft and helicopter.
“Laser pointers aimed at aircraft pose many dangers, including disrupting the vision of pilots,” said United States Attorney Lynch. “Last February, President Obama signed the FAA Modernization and Reform Act of 2012, which specifically prohibited the conduct alleged in the complaint. The safety of American air travelers has been and will continue to be a priority for law enforcement.” Ms. Lynch expressed her grateful appreciation to the U.S. Department of Transportation, Office of Inspector General-Investigations, the FBI Joint Terrorism Task Force in New York, the Suffolk County Police Department, and the Port Authority Police Department for their participation in the investigation leading to today’s arrest.
FBI Assistant Director in Charge Venizelos stated, “On a night last summer, Rivas allegedly endangered the lives of passengers and crew of not one but two aircraft and, potentially, people on the ground. Pointing a laser at an aircraft is not a prank; it is a federal crime with penalties befitting its seriousness.”
If convicted of the charge, the defendant faces a maximum sentence of five years’ imprisonment and a maximum fine of $250,000.
The government’s case is being prosecuted by Assistant United States Attorney Charles N. Rose.
The charges contained in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Defendant
Angel M. Rivas
Age: 33

Former Consultant Wesley Wang Sentenced in Manhattan Federal Court for Insider Trading

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Wesley Wang, a former consultant with Trellus Management, was sentenced today to two years’ probation for his participation in insider trading schemes in which Wang provided material, non-public information (“inside information”) about various publicly traded companies to several individuals, including Doug Whitman, the president and founder of Whitman Capital. Wang pled guilty in July 2012 to two counts of conspiracy to commit securities fraud pursuant to a cooperation agreement with the government. He was sentenced in Manhattan federal court by U.S. District Judge Jed S. Rakoff.
According to the information, statements made during Wang’s guilty plea proceeding, Wang’s testimony during the criminal trial of Doug Whitman, and the government’s sentencing submission in Wang’s case:
From 2005 through 2008, Wang provided Whitman, among others, inside information on Cisco with the understanding that Whitman would use the information to trade securities. In exchange for this inside information, Whitman provided Wang with inside information on other publicly traded companies, including Marvell and Polycom, which Wangin turn provided to others. In addition, from 2002 to 2005, Wang was involved in a separate conspiracy in which he exchanged inside information about various publicly traded companies with other individuals, with the expectation the information would be used to trade securities.

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In addition to his probation, Wang, 39, was ordered to pay a $200 special assessment fee.
Whitman was convicted in a jury trial on August 20, 2012 of four counts of conspiracy and securities fraud.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission. This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force.
Assistant U.S. Attorneys Christopher L. LaVigne and Jillian Berman are in charge of the prosecution.

Former President of International Outdoor Advertising Company Sentenced in Manhattan Federal Court to Four Months in Prison for Orchestrating $19.75 Million Accounting Fraud Scheme

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Todd Hansen, the former president of the United States division of an international outdoor advertising company (the “company”), was sentenced today in Manhattan federal court to four months in prison in connection with his participation in a five-year, $19.75 million accounting fraud scheme designed to make it appear that the company was meeting certain performance targets so that he could receive higher salary increases and bonuses. Hansen pled guilty in June 2012 to one count of conspiracy to commit wire fraud and one substantive count of wire fraud. He was sentenced by U.S. District Judge Jed S. Rakoff.
According to the complaint and the indictment filed in Manhattan federal court:
From 2004 until 2009, Hansen served as president of the company, a wholly owned subsidiary of a United Kingdom corporation, with its common stock listed on the London Stock Exchange. Hansen, together with Finance Director James Buckley, directed the company’s controller (the “controller”) to make fictitious accounting entries in the company’s books and records in order to give the appearance that the company was meeting its monthly performance targets. To create these inflated income figures, Hansen directed the controller to record higher monthly revenues from either false client billings or rebates on certain goods and services that the company was purportedly receiving from some of its vendors.
The false accounting entries resulted in the preparation of financial statements that reflected artificially inflated monthly income amounts for the company. Hansen was thereby able to create the misimpression that the company was meeting its projected financial performance goals. During this five-year period, the fraudulent entries Hansen requested resulted in a total overstatement of the company’s net income by approximately $19.75 million. As a result of meeting these fictitious performance goals, Hansen was paid approximately $1.1 million in salaries and bonuses over the five-year period.
In addition to the accounting fraud scheme, during this same time period, Hansen misused tens of thousands of dollars of company funds to pay for expenses and fees that directly benefitted him, his family, and friends and that were unrelated to the Company’s legitimate business.
In addition to the prison term, Judge Rakoff sentenced Hansen, 49, of Bakersfield, California, to three years of supervised release. Hansen was also ordered to pay $231,000 in restitution and forfeit $173,450.90.
James Buckley, 49, of Westwood, New Jersey, was sentenced by Judge Rakoff on October 16, 2012, to time served, followed by one year of supervised release, and ordered to pay $26,872.22 in restitution.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Christopher D. Frey and Nicole Friedlander are in charge of the prosecution.

Russian Citizen Sentenced in Manhattan Federal Court to Three Years in Prison for Sophisticated International Cyber Crimes

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Vladimir Zdorovenin, a Russian national, was sentenced today in Manhattan federal court to three years in prison in connection with a series of sophisticated international cyber crimes. Zdorovenin, who was initially charged in January 2012 with his son, Kirill Zdorovenin, pled guilty in February 2012 to one count of conspiracy to commit wire fraud and one count of wire fraud for his involvement in the schemes. He was sentenced today by U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said, “From his perch halfway across the globe, Vladimir Zdorovenin engaged in a slew of cyber crimes that left multiple victims in the United States. Cyber crime is particularly insidious because there is no need for geographic proximity between perpetrators and their victims, and Zdorovenin’s sentence today should serve as a reminder to others that law enforcement does not require geographic proximity to prosecute these crimes either.”
According to documents filed in Manhattan federal court and statements made during court proceedings:
While in Russia between 2004 and 2005, Zdorovenin engaged in a series of crimes that victimized citizens of the United States through the use of stolen credit card information, multiple phony websites, and bank accounts in Russia and Latvia. Specifically, he conspired to steal victims’ personal identification information, including credit card numbers, through the use of computer programs that were surreptitiously installed on victims’ computers and that recorded the information as it was entered by the victims. He also conspired to purchase stolen credit card numbers from other individuals and to use the stolen credit card information to make what appeared to be legitimate purchases of goods from various Internet businesses, including Sofeco LLC, Pintado LLC, and Tallit LLC. However, the purchases were fraudulent and were used as a means of deceiving banks, credit card service processors, credit card holders, and others. In fact, Zdorovenin stole the money directed to the websites through the fraudulent and unauthorized charges he and a co-conspirator caused to be made on the stolen credit cards.
Additionally, Zdorovenin conspired to use the Internet to unlawfully access the financial services accounts of victims located in the United States and then transferred or attempted to transfer hundreds of thousands of dollars from those accounts to bank accounts under his and a co-conspirator’s control. Finally, after taking over victims’ online brokerage accounts, Zdorovenin and a co-conspirator bought and sold thousands of shares of certain companies’ stock in an effort to manipulate the prices of those stocks. Zdorovenin and the co-conspirator realized profits through this scheme by simultaneously purchasing or selling shares of the same stocks through an online brokerage account maintained in the name of Rim Investment Management Ltd.

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In addition to his prison term, Zdorovenin, 55, of Moscow, Russia, was ordered to forfeit up to $1 million and pay restitution in an amount to be determined within 90 days.
Mr. Bharara praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys James J. Pastore, Jr. and Thomas G.A. Brown are in charge of the prosecution.
Kirill Zdorovenin, Zdorovenin’s son and co-conspirator, remains at large. The charges against Kirill Zdorovenin are merely accusations, and he is presumed innocent unless and until proven guilty.

Man Indicted for Obstructing and Impeding the IRS by Filing False IRS Forms Claiming $36 Million in Refunds

Richard S. Hartunian, United States Attorney, Northern District of New York, announces that a federal grand jury in Syracuse has returned a seven-count indictment charging Glenn Richard Unger (62, of Ogdensburg, New York) with obstructing and impeding the Internal Revenue Service (IRS) by filing numerous false and fraudulent IRS forms seeking refunds. Specifically, the indictment alleges that Glenn Richard Unger obstructed and impeded the IRS between 2007 and 2011 by filing numerous false and fraudulent claims with the IRS for payment of a refund of taxes totaling approximately 36 million dollars. Upon receiving the false IRS forms, the IRS realized that they were fraudulent and did not issue any refund checks to Glenn Richard Unger. The indictment also alleges that the defendant filed false claims for refunds, evaded paying income taxes, and filed a fictitious obligation. If found guilty, the defendant faces a statutory maximum sentence of 20 years, a term of supervised release of up to three years, and a maximum fine of $250,000. The defendant was arraigned in Albany, New York, on January 2, 2013, before United States Magistrate Judge Randolph F. Treece and is currently detained.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office; the Federal Bureau of Investigation, Albany Field Office; the New York State Police; and the Treasury Inspector General for Tax Administration. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.

New York Woman Arrested for Lying to Federal Agents Investigating Newtown Fundraising Fraud

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that NOUEL ALBA, 37, of the Bronx, New York, was arrested today on a federal criminal complaint charging her with lying to FBI agents in connection with their investigation into a fraudulent fundraising scheme related to the Newtown school shooting tragedy.
The complaint alleges that ALBA used her Facebook account, telephone calls, and text messages to falsely claim to be a relative of a shooting victim and solicited money from donor-victims who wanted to donate, claiming the money was for the child’s “funeral fund.” At ALBA’s instruction, donor-victims sent money to a PayPal account controlled and accessed by ALBA. When contacted by FBI special agents investigating fundraising and charity scams related to the Newtown tragedy, ALBA falsely stated that she did not post information related to Newtown on her Facebook account, solicit donations, or recently access her PayPal account. ALBA also falsely claimed to have immediately refunded any donations that she received.
“This arrest should serve as a warning to anyone who attempts to profit from this tragedy by contriving fraudulent schemes that exploit the many victims, their families and individuals who sincerely want to help,” stated U.S. Attorney Fein. “Investigators continue to monitor the Internet to uncover other fundraising scams arising from this tragedy, and the individuals operating them face federal or state prosecution to the fullest extent permitted by law.”
“It is unconscionable to think that the families of the victims in Newtown and a sympathetic community looking to provide them some sort of financial support and comfort have become the targets of criminals,” stated FBI Special Agent in Charge Mertz. “Today’s arrest is a stern message that the FBI will investigate and bring to justice those who perpetrate Internet fundraising scams, especially those scams that exploit the most vulnerable in their time of shared sorrow.”
Following her arrest, ALBA appeared before United States Magistrate Thomas P. Smith in Hartford and was released on a $50,000 bond.
If convicted of making false statements to federal agents, ALBA faces a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Fein stressed that a complaint is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individuals with knowledge of Newtown-related fundraising schemes are encouraged to contact the FBI in Connecticut at 203-777-6311.
U.S. Attorney Fein noted that potential federal charges associated with fraudulent fundraising and charity schemes include wire fraud (18 USC 1343, 20-year maximum prison term), access device fraud (18 USC 1029, 10-year maximum prison term), and interstate transportation of stolen property (18 USC 2314, 10-year maximum prison term).
This case is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jonathan Francis.

Kimber Pleads Guilty to Using Mercury as a Chemical Weapon at Albany Medical Center

ALBANY—Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Martin S. Kimber, 59, of Ruby, New York, pled guilty before Senior U.S. District Judge Lawrence E. Kahn to all three counts of an indictment that charged him with using a toxic chemical, mercury, as a weapon (counts one and two), and tampering with consumer products (count three). Kimber admitted that on four occasions, he spread mercury, a potentially fatal neurotoxin, throughout various areas of the Albany Medical Center in ways which could lead to inhalation or absorption of the mercury, to retaliate for what he thought were unfair hospital bills.
In pleading guilty, Kimber admitted that:

• $ On or about December 10, 2010 and December 23, 2010, Kimber received medical treatment at the Albany Medical Center, Albany, New York. On various dates thereafter, including on January 24, 2011, Kimber wrote to express concern about having to pay for his medical care. On February 22, 2011, the Albany Medical Center Associate Medical Director wrote back and explained why the bills were appropriate and discussed the outcome associated with Kimber having provided inaccurate information about his injury and his decision not to complete the care prescribed by his treating physician.
• On or about March 28, 2011, April11, 2011, June 23, 2011, and March 2, 2012, patients, visitors, and hospital personnel discovered liquid mercury deposited in sundry locations throughout the Albany Medical Center. On March 28, 2011, mercury was found in the level D basement, the hallway outside the Post-Operative Care Unit, the Triage window in the emergency room, and in the tracks to the door of the center elevator for Building D. Hospital; emergency response units identified and collected several pounds of mercury. On April 11, 2011, mercury was found in the men’s bathroom on the AI level and in the main hallway in Building E, extending from the M doors to the elevator lobby. Approximately one to two pounds of mercury was collected by emergency response personnel. On June 23, 2011, mercury was found on the pedestrian ramp leading from the main lobby up to the pedestrian parking garage bridge and in the E-1 corridor exiting the Choice Cafe and the center elevator of Building A elevator triplex. Approximately two pounds of mercury was collected. On March 2, 2012, mercury was found in the cafeteria at Albany Medical Center, in the salad bar, in an apple bowl, in a banana basket, in a toaster, on a table by the coffee station, in the cooler for the packaged salad dressing, in the ice cream freezer, and in a container of chicken tenders that were being warmed under heating lamps and were available for purchase and consumption by cafeteria customers.
• Kimber was responsible for each of these mercury disposals and for tampering with the described products, including the mercury, each item of food, and the restaurant equipment, to include the fruit, bowl, toaster, table, cooler, freezer, and heating lamps. The food products and food containers into and near which the defendant deposited mercury affected interstate commerce.
• Kimber’s purpose in disposing of the mercury throughout the Albany Medical Center and cafeteria on multiple occasions was to retaliate for hospital bills that he felt were unfair by causing panic at the hospital/cafeteria and an attendant loss of business when people became fearful of gaining treatment and eating there.
• On March 29, 2012, Kimber possessed two canisters of mercury, one stored in his car and the other stored in his house. A search by law enforcement officers resulted in the seizure of both canisters. Kimber engaged in computer searches at sites where more mercury could be purchased.

Mercury is a well-documented hazardous substance. Among other things, mercury is a neurotoxin that can kill human nerve cells. Mercury is readily absorbed through unbroken skin. Inhalation and other forms of absorption can lead to death, brain, and lung damage; impairment of speech; constriction of the visual field; hearing loss and somatosensory change; and other serious bodily injuries. Having been a licensed pharmacist for 36 years, Kimber well understood these dangers and that the heating of mercury, including the placing of mercury on or in toasters, and on or around heated food, greatly increased the likelihood that mercury would vaporize into the air and be inhaled by individuals consuming such food or using or near such heating devices.
As part of his plea agreement, Kimber agreed to abandon his computer and consented to the entry of an order directing him to:

• Pay restitution to the Albany Medical Center in the amount of $200,451.48;
• Pay restitution in full to the United States for any expenses incurred incident to the seizure, storage, handling, transportation, and destruction of any property seized in connection with an investigation of his use of mercury as a chemical weapon;
• Pay restitution to any other victims;
• Forfeit the residence at 8 Lena Lane, Ruby, New York; and
• Forfeit his 2007 Pontiac Solstice.

Kimber was arrested on April 25, 2012, by special agents of the United States Environmental Protection Agency. On March 2, 2012, following a hearing, Kimber was detained as a danger to the community. He remains in jail pending imposition of sentence.
Each count charging the use of mercury as a chemical weapon carries a maximum possible term of life imprisonment and a fine of $250,000 or twice the gross loss to any victim. The consumer product tampering charge carries a maximum possible penalty of 10 years in prison and a fine of $250,000, or twice the gross loss to any victim.
Sentencing in this matter has been set for March 7, 2013 at 11:00 a.m. in Albany.
United States Attorney Hartunian said, “Congratulations and thank you to the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food and Drug Administration-Office of Criminal Investigations, whose cooperative investigation quickly brought the defendant to justice for this very dangerous conduct; to the patients, visitors, and hospital personnel who discovered the mercury; and to the emergency response units who collected it. Their alertness and professionalism prevented the dire consequences that could have resulted from the defendant’s use of several pounds of mercury as a chemical weapon and contaminating food and food service items at a hospital.”
“There are honest accidents and there are clear cases of criminal conduct,” said William V. Lometti, Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendant’s action threatened public health and safety and sent an innocent victim to the hospital. Today’s plea demonstrates that this kind of behavior will not be tolerated. EPA is encouraged by the level of partnership shown by the local, state, and federal law enforcement agencies involved in this joint investigation.”
The defendant demonstrated a disregard for the potentially life-threatening consequence of his actions and for the potential harm that he could have inflicted,” said Special Agent in Charge Mark Dragonetti of the FDA’s Office of Criminal Investigations, New York Field Office. “We will continue to work with our law enforcement counterparts to aggressively pursue those who place the public health at risk and harm others by tampering with food, drugs, or other FDA-regulated products.”
This case was investigated by special agents of the Environmental Protection Agency, the Federal Bureau of Investigation, and the Food & Drug Administration-Office of Criminal Investigations. Assistance has been provided by the Towns of Albany and Ulster Police Departments. The case is being prosecuted by Assistant United States Attorney Craig Benedict, to whom questions may be directed at 315-448-0672 or cell phone 315-391-1110.