FROM: COMMODITY FUTURES TRADING COMMISSION
CFTC Obtains Federal Court Order against Nicholas Cosmo for Engaging in Unauthorized Futures Trading that Resulted in Tens of Millions of Dollars in Investor Losses
Cosmo ordered to pay a $240 million penalty and permanently barred from the commodities industry
In a related criminal case, Cosmo sentenced to 300 months in prison and ordered to pay over $179 million in restitution to defrauded investors
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Leonard D. Wexler of the U.S. District Court for the Eastern District of New York entered a default judgment and permanent injunction order against defendant Nicholas Cosmo, formerly of Lake Grove, N.Y., charged with defrauding investors of tens of millions of dollars in a commodity futures trading scheme (see CFTC Press Release 5606-09, January 27, 2009).
The court’s order finds that, from at least January 2004 through December 2008, Cosmo engaged in a fraudulent scheme in which tens of millions of dollars were solicited from investors to invest in bridge loans and merchant advances. Instead, Cosmo used investors’ funds, in part, to engage in unauthorized commodity futures trading that resulted in tens of millions of dollars in trading losses, according to the order. The order also finds that Cosmo’s futures trading and trading losses were never disclosed to investors.
The order requires Cosmo to pay a $240 million civil monetary penalty, imposes permanent trading and registration bans, and permanently bars Cosmo from engaging in any commodity-related activity, including trading, and from registering or seeking exemption from CFTC registration.
In a related criminal case, United States of America v. Nicholas Cosmo, Docket No. CR-09-255 (DRH), Judge Denis R. Hurley sentenced Cosmo to 300 months in prison and ordered him to pay restitution to investors in the amount of $179,195,232.63.
The CFTC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the U.S. Securities and Exchange Commission.
The CFTC Division of Enforcement staff members responsible for the action are Elizabeth C. Brennan, Philip Rix, Steven Ringer, Lenel Hickson, Jr., Stephen J. Obie, and Vincent McGonagle.
Showing posts with label ALIEN SMUGGLING FOR FINANCIAL GAIN. Show all posts
Showing posts with label ALIEN SMUGGLING FOR FINANCIAL GAIN. Show all posts
Sunday, October 28, 2012
Sunday, September 16, 2012
DOMINICAN NATIONAL PLEADS GUILTY TO PART IN IDENTITY THEFT RACKET
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, September 4, 2012
Foreign National Pleads Guilty to Leading Role in Trafficking the Identities of Puerto Rican U.S. Citizens
Co-Defendant Pleads Guilty to Conspiracy to Commit Alien Smuggling for Financial Gain
WASHINGTON – A Dominican national pleaded guilty today in connection with his leading role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Rosa E. Rodríguez-Vélez for the District of Puerto Rico; Director John Morton of U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI); Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); Scott P. Bultrowicz, Director of the U.S. State Department’s Diplomatic Security Service (DSS); and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Rafael Joaquin Beltre-Beltre, 35, formerly of Caguas, Puerto Rico, pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and one count of international money laundering. He also agreed to forfeit $422,793 in illegal proceeds and deportation after serving his sentence. The plea took place in the District of Puerto Rico before U.S. Magistrate Judge Marcos E. Lopez.
Beltre-Beltre was charged in a superseding indictment returned by a federal grand jury in Puerto Rico on Mar. 22, 2012. To date, a total of 53 individuals have been charged for their roles in the identity trafficking scheme.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico (Savarona suppliers) obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States (identity brokers) allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that identity brokers ordered the identity documents from Savarona suppliers, on behalf of the customers, by making coded telephone calls. The conspirators are charged with using text messages, money transfer services and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some identity brokers assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers allegedly generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, Ill.; DeKalb, Ill.; Aurora, Ill.; Seymour, Ind.; Columbus, Ind.; Indianapolis; Hartford, Conn.; Clewiston, Fla.; Lilburn, Ga.; Norcross, Ga.; Salisbury, Md.; Columbus, Ohio; Fairfield, Ohio; Dorchester, Mass.; Lawrence, Mass.; Salem, Mass.; Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington, N.C.; Hickory, N.C.; Hazelton, Pa.; Philadelphia; Houston; Abingdon, Va.; Albertville, Ala.; and Providence, R.I.
Beltre-Beltre admitted that he operated as a Savarona supplier and was a leader and organizer in the conspiracy. At sentencing, Beltre-Beltre faces a maximum sentence of 15 years in prison for conspiracy to commit identification fraud, 10 years in prison for conspiracy to commit alien smuggling for financial gain and 20 years in prison for international money laundering. Beltre-Beltre is also subject to a maximum fine of $250,000 for each charge.
Another defendant involved in the scheme, Alma Yesenia Garcia-Ramirez, 28, a foreign national formerly of Crystal Lake, Ill., pleaded guilty today to one count of conspiracy to commit alien smuggling for financial gain and agreed to forfeit $35,900 in illegal proceeds as well as to deportation to Mexico after serving her sentence. According to court documents, Garcia-Ramirez assisted an Illinois-based identity broker and transferred money on behalf of the organization. Additionally, she used a Puerto Rican identity herself to commit financial fraud and traffic the identities. Garcia-Ramirez also admitted to obstructing justice in relation to the investigation by attempting to hide evidence from law enforcement investigators. Garcia-Ramirez’s plea took place in the District of Puerto Rico before U.S. Magistrate Judge Bruce J. McGiverin. At sentencing, Garcia-Ramirez faces a maximum sentence of 10 years in prison and a maximum fine of $250,000.
Beltre-Beltre and Garcia-Ramirez are the 14th and 15th defendants to plead guilty in this case.
The charges are the result of Operation Island Express, an ongoing, nationally-coordinated investigation led by the ICE-HSI Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic, and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable assistance.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Sarah Chang, Christina Giffin and Courtney B. Schaefer of the Justice Department Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of Trial Attorney Jeannette Gunderson of the Justice Department Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Southern District of Ohio and Western District of Virginia provided substantial assistance.
Tuesday, September 4, 2012
Foreign National Pleads Guilty to Leading Role in Trafficking the Identities of Puerto Rican U.S. Citizens
Co-Defendant Pleads Guilty to Conspiracy to Commit Alien Smuggling for Financial Gain
WASHINGTON – A Dominican national pleaded guilty today in connection with his leading role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Rosa E. Rodríguez-Vélez for the District of Puerto Rico; Director John Morton of U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI); Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); Scott P. Bultrowicz, Director of the U.S. State Department’s Diplomatic Security Service (DSS); and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Rafael Joaquin Beltre-Beltre, 35, formerly of Caguas, Puerto Rico, pleaded guilty to one count of conspiracy to commit identification fraud, one count of conspiracy to commit alien smuggling for financial gain and one count of international money laundering. He also agreed to forfeit $422,793 in illegal proceeds and deportation after serving his sentence. The plea took place in the District of Puerto Rico before U.S. Magistrate Judge Marcos E. Lopez.
Beltre-Beltre was charged in a superseding indictment returned by a federal grand jury in Puerto Rico on Mar. 22, 2012. To date, a total of 53 individuals have been charged for their roles in the identity trafficking scheme.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico (Savarona suppliers) obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States (identity brokers) allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that identity brokers ordered the identity documents from Savarona suppliers, on behalf of the customers, by making coded telephone calls. The conspirators are charged with using text messages, money transfer services and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some identity brokers assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers allegedly generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, Ill.; DeKalb, Ill.; Aurora, Ill.; Seymour, Ind.; Columbus, Ind.; Indianapolis; Hartford, Conn.; Clewiston, Fla.; Lilburn, Ga.; Norcross, Ga.; Salisbury, Md.; Columbus, Ohio; Fairfield, Ohio; Dorchester, Mass.; Lawrence, Mass.; Salem, Mass.; Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington, N.C.; Hickory, N.C.; Hazelton, Pa.; Philadelphia; Houston; Abingdon, Va.; Albertville, Ala.; and Providence, R.I.
Beltre-Beltre admitted that he operated as a Savarona supplier and was a leader and organizer in the conspiracy. At sentencing, Beltre-Beltre faces a maximum sentence of 15 years in prison for conspiracy to commit identification fraud, 10 years in prison for conspiracy to commit alien smuggling for financial gain and 20 years in prison for international money laundering. Beltre-Beltre is also subject to a maximum fine of $250,000 for each charge.
Another defendant involved in the scheme, Alma Yesenia Garcia-Ramirez, 28, a foreign national formerly of Crystal Lake, Ill., pleaded guilty today to one count of conspiracy to commit alien smuggling for financial gain and agreed to forfeit $35,900 in illegal proceeds as well as to deportation to Mexico after serving her sentence. According to court documents, Garcia-Ramirez assisted an Illinois-based identity broker and transferred money on behalf of the organization. Additionally, she used a Puerto Rican identity herself to commit financial fraud and traffic the identities. Garcia-Ramirez also admitted to obstructing justice in relation to the investigation by attempting to hide evidence from law enforcement investigators. Garcia-Ramirez’s plea took place in the District of Puerto Rico before U.S. Magistrate Judge Bruce J. McGiverin. At sentencing, Garcia-Ramirez faces a maximum sentence of 10 years in prison and a maximum fine of $250,000.
Beltre-Beltre and Garcia-Ramirez are the 14th and 15th defendants to plead guilty in this case.
The charges are the result of Operation Island Express, an ongoing, nationally-coordinated investigation led by the ICE-HSI Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic, and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable assistance.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Sarah Chang, Christina Giffin and Courtney B. Schaefer of the Justice Department Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of Trial Attorney Jeannette Gunderson of the Justice Department Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Southern District of Ohio and Western District of Virginia provided substantial assistance.
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