Detective Chief Superintendent of Intelligence for New Scotland Yard, Lucinda Stubbs Woollcombe, meeting with ASAC Bill Priestap and SIA Albert Banke (far right). Photo credit: FBI

FBI Special Agents have welcomed their counterparts from Manchester, England and New Scotland Yard in London to New York for briefings and discussions concerning counter-terrorism activity.

Special Agent in Charge (SAC) Gregory Fowler of New York’s Counterterrorism Division, Acting Special Agent in Charge (A/SAC) Lauren Anderson, Assistant Special Agent in Charge (ASAC) Bill Priestap, Supervisory Intelligence Analyst (SIA) Albert G. Banke (all from New York’s Intelligence Division), FBI Assistant Legal Attaché (ALAT) from London Dan Morrison and other members of the FBI’s New York Office welcomed Detective Chief Superintendent of Intelligence for New Scotland Yard, Lucinda Stubbs Woollcombe, along with other detectives and members of New Scotland Yard and the Greater Manchester Police Department Counterterrorism Unit. The representatives of New Scotland Yard and the Greater Manchester Police Department Counterterrorism Unit visited the FBI New York Field Office for briefings and discussions coordinated by Supervisory Special Agent (SSA) Michael A. D‘Alonzo. Topics of discussion included an overview of the FBI’s Intelligence Division as well as cooperation between the law enforcement agencies in both countries. ALAT Dan Morrison and Detective Superintendant Keith Surtees of New Scotland Yard provided a briefing to FBI Counterterrorism and Joint Terrorism Task Force agents.

Superintendant Keith Surtees reviewed the relationship between the different branches of United Kingdom law enforcement (Scotland Yard, MI-5 and MI-6) and the historic transition during the last 30 years. Superintendant Surtees noted the adjustments from the period of the Irish Republican Army (IRA) conflicts and the numerous car bombings in the 1970s and 80s. ALAT Morrison commented on the subway bombings in 2005 where he made the distinction that terrorists are “now indiscriminate, causing mass civilian casualties and seeking martyrdom.” This requires a change of focus for both the UK law enforcement and their global partners including the FBI. Morrison also discussed the CCTV camera system in Britain and its usefulness in preventing and solving terrorism and other crimes.

Detective Chief Superintendent Woollcombe welcomed the direct interaction with the FBI in New York, “Our relationship with the FBI is longstanding as we work together on countless cases all with the goal of keeping our countries safe. These visits only go to improve information and intelligence sharing on our joint efforts. I look forward to continued cooperation and coordination between our agencies in our common goal to protect our citizens.

SAC Fowler said, “Meeting with our partners from London improves cooperation between our organizations on a wide variety of issues. Many of our investigations focused on terrorism have an international nexus, and the best way to deter such activity is to work together with our partners from foreign nations to neutralize threats to our societies. We have a long established relationship with our partners at New Scotland Yard and the Greater Manchester Police Department and we will continue to work together to ensure the security of our countries and protection of our citizens.”

ALAT Dan Morrison and Detective Superintendant Keith Surtees Photo credit: Rebecca Callahan, FBI

A/SAC Anderson added, “I thought it was an excellent mutual exchange with Detective Chief Superintendent Woollcombe. I know she enjoyed meeting with us and took away some very useful information. We look forward to continuing our excellent relationship with everyone at New Scotland Yard as we move forward.”

ALAT Dan Morrison, Detective Superintendant Keith Surtees and Counterterrorism Supervisory Special Agent Michael A. D’Alonzo Photo credit: Rebecca Callahan, FBI

ALAT Morrison stated, “We have an excellent relationship with our law enforcement and intelligence agency partners in the United Kingdom and welcomed this opportunity to combine our teams in discussion of issues that affect both our countries and our citizens collectively. We look forward to strengthening and maintaining a collaborative relationship with our fellow law enforcement partners so that we may continue to fulfill our mutual objectives in safeguarding the infrastructure of our nations and eradicating threats from individuals and or groups that wish to do us harm.”

SSA D‘Alonzo noted, “The globalization of jihad and terrorist groups has made it absolutely vital that we all keep our intelligence as up to the moment and accurate as possible. That would be impossible without the constant coordination and assistance of our allies. This relationship with UK intelligence services is vital.”

FBI Assistant Director in Charge (ADIC) Joseph Demarest added to the above statements by saying, “We partner every day on all types of national security and criminal matters. These visits will help to fortify our relationships with international intelligence and law entities who share our common goal of protecting both of our nation’s most valuable resources.”

Family Cyber Alert screen showing the danger signs

Posing as a fifteen year old girl, undercover detectives for Westchester County PD trapped a predatory pedophile using AOL’s messenger service to entice young girls into participating in sexual activity with him.

In early January 2009, Luis Antonio Rebutti, using instant messaging, contacted an America Online profile maintained by an undercover detective with the Westchester County Police Department. In the profile, the detective posed as a 15-year-old girl.

Over the course of several weeks, the defendant communicated, using instant messaging and e-mails, with the detective. During those communications, Rebutti attempted to persuade, induce, and entice the undercover detective to engage in sexual activity with him.

Rebutti told the detective to pretend that she was 18 years old, instead of 15. On January 20, 2009, the defendant went to the Eldorado Diner on the border of Elmsford and Tarrytown, New York, to meet the 15-year-old girl for the purposes of engaging in sexual activity with her, and was arrested.

Rebutti is charged with one count of enticement of a minor to engage in sexual activity and faces of a maximum sentence of life in prison and a mandatory minimum sentence of 120 months in prison.

Preet Bharara, the United States Attorney for the Southern District of New York, announced that Rebutti, 43, pleaded guilty before United States District Judge Cathy Seibel in White Plains federal court to a charge of using the Internet to attempt to entice, induce, and persuade an undercover officer posing as a 15-year-old girl to meet Rebutti for the purpose of engaging in sexual activity. He is scheduled to be sentenced by Judge Seibel on March 12, 2010.

Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Westchester County Department of Public Safety.

Assistant United States Attorneys SARAH R. KRISSOFF and MARCIA S. COHEN are in charge of the prosecution.

Meanwhile, another pedophile was caught by Westchester County PD using similar methods.

From October 20, to December 1, 2009, Alfred Doty had numerous instant message exchanges and telephone conversations with undercover law enforcement officers from the Westchester County Police Department posing as a 15-year-old girl.

PREET BHARARA, the United States Attorney for the Southern District of New York, JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and THOMAS BELFIORE, the Commissioner of the Westchester County Department of Public Safety, announced that Doty, 54, of Monroe, Connecticut, was arrested yesterday on charges of enticing a minor to engage in sexual activity.

During the recorded telephone conversations and instant message exchanges, Doty and the undercover law enforcement officers discussed meeting to engage in sexual activity. Doty was arrested yesterday morning in Elmsford, New York, as he was driving to meet up with the undercover officer.

Doty was presented in White Plains federal court before United States Magistrate Judge PAUL E. DAVISON yesterday afternoon. He was detained pending a hearing scheduled for today at 2:30 p.m. If convicted, Doty faces a mandatory minimum of 10 years in prison and a maximum of life imprisonment.

Joseph L. Bruno, the Former Majority Leader of the New York State Senate.

Joseph L. Bruno, the Former Majority Leader of the New York State Senate was charged with carrying out a scheme to defraud the State of New York and its citizens of the right to his honest services by soliciting private business from, and entering into direct and indirect financial relationships with, persons or entities who were pursuing interests before the New York State Legislature or other state agencies. The indictment further alleged that Bruno concealed and failed to disclose the existence and true nature of such financial relationships, and the resulting conflicts of interest while taking discretionary official actions benefitting parties with whom he had those relationships. While New York State legislators are part-time officials permitted to pursue other employment or business activities, the indictment alleged that Bruno improperly exploited his official position and concealed conflicts of interest, contrary to state ethics and reporting laws, with respect to his private “consulting” business. Each count of the indictment alleged particular uses of the mails or the interstate wires in furtherance of the alleged scheme.

United States Attorney Andrew T. Baxter and Special- Agent-in- Charge John F. Pikus of the Albany Division of the Federal Bureau of Investigation announce the verdict of a federal jury in Albany following the three-week trial of Joseph L. Bruno, the Former Majority Leader of the New York State Senate. After seven days of deliberation, the jury convicted Bruno on two felony counts, acquitted on five counts, and were unable to reach a verdict on one count of the indictment. The jury found Bruno guilty on the following “honest-services” mail fraud charges:

• Count 4, which involved Bruno’s dealings with two entities related to Jared E. Abbruzzese—Communication Technology Advisors LLC and Capital & Technology Advisors LLC—that made “consulting” payments to Bruno, which the government contended were not commensurate with legitimate services provided by Bruno; and
• Count 8, which related to Abbruzzese’s $80,000 “purchase” of a virtually worthless horse from Bruno, which the government contended was a disguised gift to Bruno to compensate him for “consulting fees” that another entity related to Abbruzzese stopped paying to Bruno.

The jury acquitted Bruno on five wire/mail fraud counts, which involved Bruno’s activities relating to other entities with which Bruno had private business arrangements—Wright Investors’ Service (Count 1), Asentinel (Count 2), two other entities related to Jared E. Abbruzzese (Counts 5 and 6), and BB Gardner Management Corporation (Count 7). The jury deadlocked on Count 3, which involved the activities of Bruno relating to Leonard J. Fassler and various related entities that made “consulting” payments to Bruno, which the government contended were not earned by Bruno for legitimate services.

U.S. District Judge Gary L. Sharpe declared a mistrial with respect to the one count on which the jury was deadlocked. The United States Attorney’s Office will consider whether to re-try Bruno on that count following post-trial motions and after appropriate internal deliberation. Sentencing was scheduled for March 31, 2010 before Judge Sharpe. Joseph L. Bruno faces a sentence of up to 20 years in prison and a fine of up to $250,000 for each count on which he was convicted. The parties consented to a bench trial on the government’s asset forfeiture demand.

United States Attorney Baxter made the following statement regarding the Bruno verdict: “We commend the jury for their dedicated and patient service. The jury’s guilty verdict on two felony counts reflects their unanimous determination that Joseph L. Bruno deprived of the citizens of New York of his honest and faithful services, contrary to federal law. I am extremely proud of Assistant United States Attorneys Elizabeth C. Coombe and William C. Pericak, who made a fair and cogent presentation of the government’s case, reflecting the highest principles of federal prosecutors. We appreciate the efforts of the Federal Bureau of Investigation and the Inspector General of the U.S. Department of Labor in developing this seminal case and assisting with the prosecution.”

United States Attorney Baxter continued: “As the Senate Majority Leader, Joseph L. Bruno had a fiduciary relationship with the State of New York and its citizens requiring disinterested decision making and candid disclosure of the potential motivation behind his official acts. We established at this trial that Bruno exploited his office by concealing the nature and source of substantial payments that he received from parties that benefitted from his official actions and the resulting conflicts of interest.”

“The prosecutors and agents involved in this case take no pleasure from what the trial revealed about the culture of the New York State Senate, under the leadership of Joseph L. Bruno. Federal law enforcement in the Northern District of New York will continue to strive to ensure that public officials who breach their public trust will be held accountable, notwithstanding the challenges presented by the state’s inadequate legislative ethics and disclosure laws.”

The New York Office hosted the annual training conference for the FBI’s Art Crime Team. Established in 2004, the team is composed of 13 special agents, each responsible for addressing art and cultural property crime cases in an assigned geographic region. The Art Crime Team is coordinated through the FBI’s Art Theft Program in the Criminal Investigative Division (CID) located at FBI Headquarters in Washington, D.C. Art Crime Team agents receive specialized training in art and cultural property investigations and assist in art-related investigations worldwide in cooperation with foreign law enforcement officials and FBI legal attaché offices. The U.S. Department of Justice has assigned three Special Trial Attorneys to the Art Crime Team for prosecutive support.

Since its inception, the Art Crime Team has recovered more than 2,750 items of cultural property with a value exceeding $142 million. As a means of raising public awareness of art theft and its impact on the local community, the FBI Art Crime Team has identified the Top Ten Art Crimes. One such crime occurred in October 1995 in New York. It was reported that a $3 million Stradivarius violin had been stolen from the New York City apartment of Erica Morini, a noted concert violinist. Made in 1727 by Antonio Stradivari, the violin is known as the Davidoff-Morini Stradivarius. “This remains an open investigation in the New York office,” said Special Agent Richard Kolko.

Bonnie Magness-Gardiner, program manager of the Art Theft Program at FBIHQ. Photo credit: Rebecca Callahan, FBI

Bonnie Magness-Gardiner, program manager of the Art Theft Program at FBIHQ, said, “Our team of dedicated special agents is prepared to assist in art-related investigations worldwide. Art Crime Team agents have the specialized skills, knowledge, and experience that are requested by our law enforcement partners both nationally and internationally. We are proud of their accomplishments and look for continued support of our program and its objectives.”

Special Agent (SA) James Wynne from the New York Office has specialized in art crime investigations in New York for 23 years. He is widely regarded as the FBI’s most experienced and successful art crime investigator. During the conference today, SA Wynne noted, “Art Crime investigative skills are unique. This opportunity to meet with other members of our crime team program helps us refine our skills and combine ideas for continuing success.”

SA Matthew J. Bertron and Criminal Division Assistant Special Agent in Charge Belle Chen. Photo credit: Rebecca Callahan, FBI

FBI Assistant Director in Charge Joseph Demarest gave opening remarks at the conference and added, “The Art Crime Team shines a positive light on the resources and abilities the FBI has to offer and highlights our dedication to preserving historical and cultural heritage. Your specialties cannot be stood up overnight and we commend you for your talents and dedication.”

The FBI also maintains the National Stolen Art File (NSAF), a computerized index of reported stolen art and cultural properties for the use of law enforcement agencies across the world.

The former employee of a art collector has surrendered and been charged with mail and wire fraud in Manhattan federal court, in connection with a joint investigation conducted by the FBI and the Westchester County Police Department into James Biear’s possession of numerous pieces of notable artwork believed to have been stolen from his former employer. The federal charges relate to Biear’s sale of one of those pieces of artwork, a Heinz 57 box created by the artist Andy Warhol, to an unwitting collector in New York City.

The stolen Warhol

According to the Complaint unsealed today in Manhattan federal court: In July 2008, Biear sold a Andy Warhol silkscreen on a wooden crate mimicking a Heinz 57 case of ketchup (the “Warhol Heinz 57 box”) to an art collector in New York City for approximately $220,000. In connection with the sale, Biear claimed that the Warhol Heinz 57 box had been gifted to him from his uncle who had legal title to it. In truth, Andy Warhol had gifted the Warhol Heinz 57 box to an art collector in 1964. In or around April 2007, the Warhol Heinz 57 box was noticed to be missing from the collector’s New York residence after a birthday party. Biear had been employed by the Art Collector at the time that the Warhol Heinz 57 box was believed to have been stolen.

Biear is charged with one count of mail fraud and one count of wire fraud. If convicted, he faces a maximum sentence of 40 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss caused by his crimes.

Biear also faces charges brought by the Westchester District Attorney’s Office. According to the Felony Complaint filed in Westchester County court, Biear is charged with Criminal Possession of Stolen Property in the second degree in connection with Biear’s possession of artwork also believed to have been stolen from his prior employer, specifically, an ink drawing by Francis Picabia titled, “Jean Cocteau par Francis Picabia.” If convicted, Biear faces a maximum sentence of 15 years in prison.

Biear, 49, of Ossining, New York, is expected to be presented today before United States Magistrate Judge HENRY B. PITMAN and is expected to appear later today in state court in Ossining, New York.

Preet Bharara, the United States Attorney for the Southern District of New York, praised the FBI and the Westchester District Attorney’s Office for their work in the investigation and thanked the Westchester County Police Department for its assistance.

The federal case is being prosecuted by the Office’s Complex Frauds Unit. Assistant United States Attorney LISA P. KOROLOGOS is in charge of the prosecution. The state case is being handled by Assistant District Attorney BRIAN FITZGERALD for the Investigations Division at the Westchester District Attorney’s Office.

After a coordinated strike beginning last night involving more than 200 federal and local law enforcement officers, 37 defendants are in custody. Six defendants are still being sought. The defendants taken into custody today are expected to be presented in White Plains federal court later this afternoon.

Preet Bharara, the United States Attorney for the Southern District of New York; Joseph M. Demarest, JR., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”); Thomas Belfiore, the Commissioner of the Westchester County Department of Public Safety; Edmund Harnett, the Commissioner of the City of Yonkers Police Department; Gene Tumolo, the Chief of the City of Peekskill Police Department; and Joseph Burton, the Chief of the Village of Ossining Police Department, announced today the unsealing of an Indictment charging 43 members of a cocaine trafficking ring with conspiracy to distribute approximately $1 million worth of crack and powder cocaine across Westchester County.

Left to Right: ADIC Joseph Demarest; USA SDNY Preet Bharara; Thomas Belfiore, Commissioner, Westchester County Dept. of Public Safety; Edmund Hartnett Commissioner Yonkers Police Department; and Detective Lieutenant William Sullivan of Village of Ossining Police Department. Photo credit: James Margolin, FBI

In connection with these arrests, federal and local law enforcement officers also executed court-authorized search warrants on seven locations tied to many of the named defendants. During the arrests and searches, agents and officers seized, among other evidence: (1) a gun; (2) hollow point bullets; (3) approximately $40,000 in cash: and (4) approximately one kilogram of crack cocaine.

According to the Indictment unsealed today in White Plains federal court:

Between February 2009 and October 2009, a cocaine trafficking organization led by ELVIS SANTANA (the “Santana Organization”) distributed at least 22 kilograms of crack cocaine and 6.5 kilograms of powder cocaine across Westchester County, primarily in Yonkers and Peekskill. The Santana Organization collected approximately $1 million in criminal proceeds from its alleged cocaine trafficking crimes during this nine-month period.

Captain Thomas Gleason of the Westchester County Department of Public Safety reviewing operational specs with ADIC Joseph Demarest. Photo credit: Rich Kolko, FBI

ELVIS SANTANA was the leader of the Santana Organization. As the leader, SANTANA oversaw the transportation of the Santana Organization’s cocaine, the cooking of cocaine into crack cocaine, the delivery of the drugs, and the collection of drug proceeds. EMMANUEL MARTINEZ, DANNY BUENO, and ANGEL DELACRUZ were core members of the Santana Organization, and were responsible for supplying cocaine to the other members of the organization who distributed the drugs. More specifically, EMMANUEL MARTINEZ delivered crack and powder cocaine to other Santana Organization members in Yonkers and other communities in southern Westchester. DANNY BUENO and ANGEL DELACRUZ delivered crack and powder cocaine to other Santana Organization members in Peekskill and other communities in northern Westchester and Rockland Counties. Deliveries of cocaine were arranged by telephone conversations and text messages and were usually made either inside buildings or apartments or on the street, often inside cars that had been used to transport the drugs.

In addition to delivering cocaine, EMMANUEL MARTINEZ, ANGEL DELACRUZ, and DANNY BUENO collected proceeds from the sales of cocaine from other Santana Organization members. The cocaine proceeds were temporarily stored in locations in and around Westchester County before being brought to ELVIS SANTANA.

New York Special Agent in Charge David Cardona, On-Scene Commander, in mobile command vehicle with FBI personnel. Photo credit: Lynda Obi, FBI

The defendants charged in the Indictment unsealed today were as follows: ELVIS SANTANA, 27, Yonkers, New York; DANNY BUENO, 25, Bergenfield, New Jersey; ANGEL DELACRUZ, 27, Peekskill, New York; EMMANUEL MARTINEZ, 26, Bronx, New York; HAROLD ROMAN, 28, Yonkers, New York; JOEL NORWOOD, 23, Yonkers, New York; LAMONT MASON, 26, Yonkers, New York; ANDRE RODRIGUEZ, 36, Yonkers, New York; HECTOR BARBOSA, 26, Yonkers, New York; JESSIE FONSECA, 20, Yonkers, New York; DENNIS MANCUSI, 28, Yonkers, New York; FRED CANNON, 31, Yonkers, New York; DONTAE DEGREE, 23, Ossining, New York; PABLO RIVERA, 22, Yonkers, New York; MARK HAMMARY, 42, Yonkers, New York; ROBERT BENEDITTINI, 25, Yonkers, New York; JULIO GARCIA, 28, Brooklyn, New York; FRANK VACCARIELLO, 37, Hopewell Junction, New York; DONALD TAYLOR, 40, Peekskill, New York; ROBERT CURRY, 32, Peekskill, New York; JAMES McCRAE, 35, Peekskill, New York; BLAINE SCOTT, 43, Peekskill, New York; ERIC McKENZIE, 49, Peekskill, New York; BYRON OVERBY, 37, Peekskill, New York; ROBERT BARNES, 27, Peekskill, New York; OMARI NELSON, 22, Peekskill, New York; WILLIAM ANDERSON, 29, Peekskill, New York; JERMAINE GILLEO, 19, Peekskill, New York; MICHAEL CUNNINGHAM, 20, Peekskill, New York; PIERRE MYKE, 26, Waterbury, Connecticut; JAI PATTERSON, 26, Ossining, New York; KADEMA NELSON, 26, Peekskill, New York; DONIEL THOMAS, 26, Peekskill, New York; JAMES SKAGGS, 24, Peekskill, New York; TYRELL MOSLEY, 27, Peekskill, New York; TAINA VALENTINE, 24, Peekskill, New York; PRINCE MARSH, 26, Peekskill, New York; TAWAN HINES, 30, Peekskill, New York; SAM SHULER, 28, Peekskill, New York; CHRIS CURRY, 30, Peekskill, New York; SHAUN BROOKS, 22, Ossining, New York; ROBERT EVANS, 26, Peekskill, New York; and MORGAN STOKES, 27, Peekskill, New York.

SSA Edward M. McCabe briefing ADIC Joseph Demarest on arrests and operations. Photo credit: Rich Kolko, FBI

Mr. BHARARA praised the investigative work of the FBI, the Westchester County Department of Public Safety, the Yonkers Police Department, the Peekskill Police Department, the Village of Ossining Police Department, and the Rockland County Narcotics Task Force. He added that the investigation is continuing.

United States Attorney Preet Bharara said, “Cocaine is poison. It is a poison that affects our schools, our communities, and our economy. The antidote to that poison is the kind of tough law enforcement action that we have taken today. Families throughout Westchester County have the right to live in neighborhoods free from the poison of drugs and the violence that inevitably accompanies it. That is the right we protect today.”

FBI Assistant Director-in-Charge JOSEPH DEMAREST said, “We combined forces to cut off the toxic supply of drugs to Westchester neighborhoods. Experience also tells us that guns and violence often go hand-in-hand with drug trafficking. The thing that unites us is simple but certain: the determination to make our neighborhoods safe and secure for law-abiding New Yorkers, wherever they live.”

FBI personnel in front of mobile command vehicle during operation against drug ring. Photo credit: Lynda Obi, FBI

All 43 of the defendants are charged in Count One of the Indictment with conspiring to distribute 50 grams and more of crack cocaine and five kilograms and more of powder cocaine. If convicted, the defendants all face maximum sentences of life and mandatory sentences of 10 years in prison on Count One. ELVIS SANTANA and EMMANUEL MARTINEZ are charged in Count Two with possession of 50 grams and more of crack cocaine. They each face a maximum sentence of life in prison and a mandatory sentence of 10 years in prison on Count Two. ANGEL DELACRUZ and DANNY BUENO are charged in Count Three with possession of five grams and more of crack cocaine. They each face a maximum sentence of 40 years in prison and a mandatory sentence of five years in prison on Count Three.

Assistant United States Attorneys NICHOLAS L. McQUAID, DOUGLAS B. BLOOM, and ANNA M. SKOTKO are in charge of the prosecution.

The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

FBI agent stands on top of mobile command vehicle. Photo credit: Lynda Obi, FBI

After two-and-a-half years of exhaustive investigation into more than 100 civil rights-era cold cases, the FBI has announced the next phase of their Cold Case Initiative: looking for the next-of-kin in 33 cases to let families know what happened to their loved ones and to possibly obtain additional investigative information.

If you’re a family member of one of the victims or think you may know the whereabouts of a family member, contact your local FBI office.

These cases—announced today in Baton Rouge, Louisiana by FBI Civil Rights Unit Chief Cynthia Deitle, along with cold case documentary filmmaker Keith Beauchamp—represent the last remaining investigations from our original list of 108 cold cases released in February 2007.

Special Agent Deitle

The FBI has done a tremendous amount of work since February 2007, locating victims’ families in 75 cases, enabling them to investigate and assess each one.

“Our agents have worked tirelessly, reaching out to victims’ families and interviewing witnesses, along with police officers, prosecutors, and judges,” says Deitle. “They’ve combed through old police records, grand jury transcripts, and court transcripts to piece together a story that may have happened decades ago.

Because of previous publicity efforts, Deitle adds, “We’ve also received tips and other help from the public, the media, academia, and our partners at organizations like the NAACP, the Southern Poverty Law Center, and the National Urban League.”

To date, three of 108 cases have been referred for state prosecution. In other cases, there may be no charges filed because many involve:

• deceased suspects (47 percent of cases);
• individuals who were already tried in state court and can’t be prosecuted again in federal court because of double jeopardy;
• deceased witnesses and old evidence that’s been destroyed; or
• deaths that weren’t racially-motivated homicides (19 percent).

The FBI will continue to probe civil rights-era cases. Photo courtesy of Keith Beauchamp.

However, several additional cold cases have been prosecuted federally in recent years, including the 1964 murders of Henry Dee and Charles Moore. And we’re pursuing leads in other cases, including the 1964 murder of Frank Morris.

Among the 36 victims whose families we’re currently looking for:

Arthur James Hill: shot and killed in August 1965 in Villa Rica, Georgia during an altercation with a group of white men.

Clarence Horatious Pickett: beaten to death by a police officer in December 1957 in a jail in Columbus, Georgia.

Ann Thomas: sexually assaulted and shot four times in the head in April 1969 in San Antonio, Texas.

William Lewis Moore: a postal worker and former U.S. Marine shot and killed in April 1963 near Attalla, Alabama while marching to deliver a letter to the governor of Mississippi urging the integration of the University of Mississippi.

Ernest Jells: shot to death in October 1963 in Clarksville, Mississippi, by police after he allegedly pointed a rifle at officers attempting to arrest him for stealing a banana.

Once we officially close all 108 cases, we’ll continue to look into racially-motivated homicides from the civil rights era that come to our attention. Protecting the rights of all Americans—whether in 1959 or 2009—remains one of our top criminal investigative priorities.

A pair of computer experts helped conceal Bernie Madoff’s $65 billion ripoff – and took the Ponzi schemer for hush money two years before his arrest, court records revealed Friday.

PREET BHARARA, the United States Attorney for the Southern District of New York, JOSEPH M. DEMAREST, JR., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), ALAN D. LEBOWITZ, the Deputy Assistant Secretary of the United States Department of Labor, Employee Benefits Security Administration (“DOL-EBSA”), and PATRICIA J. HAYNES, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service (“IRS”), announced that JEROME O’HARA and GEORGE PEREZ—former computer programmers for Bernard L. Madoff Investment Securities, LLC (“BLMIS”)—were arrested this morning at their residences by agents of the FBI. O’HARA and PEREZ are charged in a criminal Complaint with conspiracy, falsifying books and records of a broker-dealer, and falsifying books and records of an investment adviser.

Madoff

For decades, BERNARD L. MADOFF ran an elaborate Ponzi scheme through BLMIS, purported to be an investment advisory business, that defrauded thousands of clients of billions of dollars.

O’HARA and PEREZ were employed as computer programmers at BLMIS beginning in 1990 and 1991, respectively. They primarily were responsible for developing and maintaining computer programs that supported the operation of the BLMIS IA business. Many of those programs were run on an IBM server known within BLMIS as “House 17.”

As a broker-dealer and investment adviser, BLMIS was required, under the federal securities laws and regulations, to keep certain books and records in the ordinary course of its business, including: trade blotters containing an itemized daily record of details about all of BLMIS’s purchases and sales of securities; documents reflecting each order underlying the purchases and sales of securities and the times at which the orders were received and executed; and the name and address of the beneficial owner of each account held at BLMIS. Between 2004 and 2008, BLMIS was subject to at least five reviews by the United States Securities and Exchange Commission (“SEC”) and a European accounting firm which was conducting a review of BLMIS’s operations on behalf of a European IA client. As part of a concerted effort overseen by MADOFF and his then employee, FRANK DIPASCALI, JR., to deceive both the SEC and the European accounting firm, O’HARA and PEREZ developed and maintained computer programs that generated numerous false and fraudulent books and records.

For example, O’HARA and PEREZ created special computer programs that, among other things:

Created books and records for a small subset of BLMIS IA clients to help hide the scope and nature of the IA business;

Changed the names of account holders to help explain why the SEC would not find IA client securities custodied at the Depository Trust Company (“DTC”);

Altered details about the number of shares, execution times, and transaction numbers for trades reported on BLMIS trade blotters, by employing random algorithms that produced false and random results;

Changed the names of the parties from which BLMIS bought securities and to which BLMIS sold securities;

Created false and fraudulent order entry and execution reports that included fictitious times at which orders for equities transactions purportedly were placed;

Generated false and fraudulent commission reports;

Created fraudulent IA client account statements in a format different from those sent to clients;

Produced fraudulent DTC monthly reports and other fraudulent DTC documents that were used to deceive representatives of the European accounting firm about where their client’s securities were custodied;

Generated fraudulent documents that could be used to make it appear that the IA business bought and sold securities on the London Stock Exchange in Europe; and

Allowed DIPASCALI and other BLMIS employees to alter computer programs necessary to create additional false and fraudulent books and records to respond to the European accounting firm’s requests for information in 2008.

O’HARA and PEREZ allegedly knew that the special programs they developed contained fraudulent information and that they were used in connection with the SEC and European accounting firm reviews. In April 2006, O’HARA and/or PEREZ attempted to delete 218 of 225 special programs from House 17 and also closed their own BLMIS IA accounts, withdrawing hundreds of thousands of dollars each.

In August or September 2006, O’HARA and PEREZ met with MADOFF and told him, in substance, that they would no longer lie for him. Handwritten notes found by the FBI in O’HARA’s desk stated, among other things: “I won’t lie any longer. Next time, I say ‘ask Frank.’” After MADOFF directed DIPASCALI to pay O’HARA and PEREZ whatever they wanted in order to keep them happy, O’HARA and PEREZ each received pay increases of about 25 percent and net bonuses of approximately $60,000.

O’HARA, 46, of Malverne, New York, and PEREZ, 43, of East Brunswick, New Jersey, each face a maximum sentence totaling 30 years in prison: five years on Count One (Conspiracy) and a maximum fine of $250,000 or twice the gross gain or loss from the offense; 20 years on Count Two (Falsifying Books and Records of a Broker-Dealer) and a maximum fine of $5 million or twice the gross gain or loss from the offense; and five years on count Three (Falsifying Books and Records of an Investment Adviser), and a maximum fine of $10,000 or twice the gross gain or loss from the offense.

The defendants will be presented later today before United States Magistrate Judge RONALD L. ELLIS in Manhattan federal court.

United States Attorney BHARARA said: “Jerome O’Hara and George Perez allegedly helped construct Bernie Madoff’s house of cards. The computer codes and random algorithms they allegedly designed served to deceive investors and regulators and concealed Madoff’s crimes. Today they have been charged for their roles in Madoff’s epic fraud, and the investigation remains ongoing.”

FBI Assistant Director-in-Charge DEMAREST stated: “O’Hara and Perez are charged with being instrumental in facilitating the Ponzi scheme that was the Bernard Madoff investment advisory business. Their subterfuge was designed to conceal the fraud from regulators and others, and when they told Madoff they would no longer lie for him, their continued complicity was bought for a price.”

Mr. BHARARA praised the work of the FBI in this case, as well as DOL-EBSA and the IRS for their roles in the ongoing investigation. He also thanked the SEC for its assistance.

Assistant United States Attorneys MARC LITT, LISA A. BARONI, WILLIAM J. STELLMACH, BARBARA A. WARD and SHARON FRASE are in charge of the prosecution.

U.S. Senator Kirsten Gillibrand has introduced new legislation that would improve nutrition for more than 3 million young children nationwide.

U.S. Senator Kirsten Gillibrand has introduced new legislation that would improve nutrition for more than 3 million young children nationwide.

Good nutrition is vital for all children, particularly infants and young children at a critical point in their development: Gillibrand

The Access To Nutritious Meals For Young Children Act would improve the quality of federally funded meals at day care and Head Start programs and expand eligibility to provide access to thousands more children. This is a key part of Senator Gillibrand’s comprehensive agenda to improve childhood nutrition.

“Good nutrition is vital for all children, particularly infants and young children at a critical point in their development,” said Senator Gillibrand, a member of the Senate Agriculture Committee. “If our children are going to have the opportunity to reach their full potential, they need a healthy start. This legislation would increase the quality and access of school meals for our youngest children. I will continue to fight in the Senate to overhaul child nutrition standards and make sure New York children have access healthy foods at school.”

The Access To Nutritious Meals For Young Children Act would strengthen the Child And Adult Care Food Program (CACFP), a program funded by the Child Nutrition Act, which provides meals to children enrolled in Head Start, Early Head Start and child care programs in both day care centers and family child care homes.

Currently, CACFP reimburses providers for up to two meals and one snack per day. Senator Gillibrand’s legislation would expand the program to allow three meals and one snack each day.

Currently, the program is only available in areas where 50 percent of the population is low-income. Senator Gillibrand’s proposals would expand the program to areas where 40 percent of the population is low-income.

Senator Gillibrand is the first New York Senator in nearly 40 years to serve on the Senate Agriculture Committee. In her time in the Senate, Senator Gillibrand has established herself as a leader in efforts to combat childhood obesity and promote healthy nutrition for children and families. She has launched a comprehensive strategy to improve the quality of school lunches, eliminate junk food from our schools, and provide more physical exercise opportunities to school age children.

U.S. Senator Kirsten Gillibrand is making a personal pitch to New York business to hire veterans

With unemployment among young veterans in New York topping 14.6 percent, U.S. Senator Kirsten Gillibrand is making a personal pitch to New York business to hire veterans and receive a tax break from the federal government in return.

The Work Opportunity Tax Credit, which was expanded earlier this as part of the Economy Recovery Plan, can help thousands of veterans who are returning home from Iraq and Afghanistan to find a still-reeling economy and scarce jobs.

Too many veterans are coming home to a very bad job market and unable to find work

To provide additional economic assistance for veterans, Senator Gillibrand is also introducing the Veterans’ Business Center Act of 2009 – legislation that would help veterans gain access to capital and federal grant money to start new businesses and grow existing ones, as well as new a proposal to provide assistance for homeless veterans.

“Too many veterans are coming home to a very bad job market and unable to find work,” Senator Gillibrand said. “They fulfilled their duty to our country, and now it’s time for us to fulfill our duty to them by making sure they have access to a good-paying job. The tax breaks we put in place earlier this year are a win-win for businesses and veterans, but we need to make sure businesses know they are available and take advantage of them by hiring more veterans. I’m making a personal pitch to the business owners I meet to hire a vet and take advantage of the tax credit.”

According to a new report from Senator Gillibrand, 7.3 percent of all veterans across New York State are unemployed.

In New York City, an estimated 17,300 veterans are unemployed. Unemployment among New York City veterans increased by an estimated 4,700 over the last year.

In Western New York, an estimated 8,800 veterans are unemployed. Unemployment among Western New York Veterans increased by an estimated 2,400 over the last year.

In the Rochester/Finger Lakes Region, an estimated 6,600 veterans are unemployed. Unemployment among all Rochester-Finger Lakes Region veterans increased by an estimated 1,800 over the last year.

In Central New York, an estimated 5,800 veterans are unemployed. Unemployment among Central New York veterans increased by an estimated 1,600 over the last year.

In the Southern Tier, an estimated 4,500 veterans are unemployed. Unemployment among Southern Tier veterans increased by an estimated 1,200 over the last year.

In the Capital Region, an estimated 7,200 veterans are unemployed. Unemployment among Capital Region veterans increased by an estimated 2,000 over the last year.

In the North Country, an estimated 3,000 veterans are unemployed. Unemployment among North Country veterans increased by an estimated 800 over the last year.

In the Hudson Valley, an estimated 9,500 veterans are unemployed. Unemployment among Hudson Valley veterans increased by an estimated 2,600 over the last year.

On Long Island, an estimated 12,200 veterans are unemployed. Unemployment among Long Island veterans increased by an estimated 3,300 over the last year.

To honor our veterans and give them the resources they need during these difficult economic times, Senator Gillibrand is launching a legislative agenda to provide economic assistance for veterans.

Jobs for Veterans, Tax Cuts for Businesses

The American Recovery and Reinvestment Act that Senator Gillibrand helped pass earlier this year expanded the Work Opportunity Tax Credit to include new incentives for businesses to hire returning veterans, and extended them through the end of 2010. But with so few businesses aware of the tax credit, the opportunity has gone under-utilized. Senator Gillibrand has been partnering with local Chambers of Commerce across New York State throughout this year to raise awareness among New York businesses of the tax credit, and encourage them to hire New York veterans returning home.

With Veteran’s Day this week and unemployment among New York veterans remaining high, Senator Gillibrand is writing to every single Chamber of Commerce in New York, urging them to work with their members and encourage area businesses to hire veterans and utilize the federal tax break.

In return for hiring a veteran, businesses may write off 40 percent of the first $6,000 paid to a veteran. The veteran needs to be out of the service for no more than five years, and must have spent at least 4 weeks of the previous year on unemployment.

Additionally, Senator Gillibrand is writing to the Assistant Secretary for the U.S. Department of Labor, Jane Oates, requesting that the Labor Department’s Web site be updated with current information about the Work Opportunity Tax Credit to make sure businesses and veterans know about the opportunities available to them.

New Veterans Business Centers

Nationwide, 14 percent of all small businesses are owned by veterans. But like all entrepreneurs, veterans face the challenge of getting access to the capital they need to get new business ideas off the ground. To help give them the start-up money they need, Senator Gillibrand is introducing the Veterans’ Business Center Act of 2009 – legislation that would establish a national network of Veterans Business Centers (VBCs) to serve as a one-stop-shop for veterans trying to start a business.

Based on effective Women Business Center models, the new national network of VBCs would help veterans navigate federal grant programs to start new businesses, and offer expert guidance for veterans working to start or grow their businesses. The legislation would provide each VBC with up to $150,000 each year for up to five years, leveraging at least 50 percent from private investments or other sources.

The VBCs would be targeted for areas with high numbers of returning veterans with the ability to assist over 100,000 businesses nationwide within their first two years. Based on New York’s share of all small businesses, that means more than 10,000 businesses assisted in New York

Veterans Homeless Fund

Over 130,000 veterans are homeless, according to estimates from the Department of Veterans Affairs. With more and more veterans returning from Iraq and Afghanistan, and with the economic downfall keeping them out of the job market, veterans are at increasingly high risk of living in poverty and homelessness. In fact, according to a study by the National Alliance to End Homelessness, over 70,000 veterans recently home from Iraq and Afghanistan spend over half of their income on housing, despite not having access to a new job once they get home – putting them at extreme risk of going homeless.

To help give homeless veterans the resources they need, Senator Gillibrand is co-sponsoring legislation that would allow American taxpayers the opportunity to provide $3 of their taxes for homeless veterans by creating a new check-off box on federal tax returns, similar to the Presidential Election Campaign fund.

The $3 check-box would not be required, but would simply give every taxpayer the chance to send some much-needed help to homeless veterans.