Month: September 2022

Source: United States Department of Justice News

          LOS ANGELES – An investigation into an international drug trafficking organization has resulted in the arrest of a Canadian man who allegedly orchestrated the shipment of narcotics from the Los Angeles area to Canada and who is directly linked in court papers to the seizure of more than 1,000 pounds of methamphetamine and 333 kilograms of cocaine, the Justice Department announced today.

          Sam Nang Bou, 40, of Edmonton, Canada, was arrested Thursday night by the FBI. Bou made his initial court appearance Friday afternoon and was ordered held without bond.

          A criminal complaint filed Friday in federal court alleges that, over the past year, Bou travelled to Southern California to personally handle the delivery of large shipments of drugs to long-haul semi-truck drivers.

          The criminal complaint specifically charges Bou with the distribution of cocaine in relation to a shipment of 105 kilograms of cocaine that was delivered to a semi-truck in Hesperia on June 28 and later seized by law enforcement in Arizona. That cocaine trafficking offense carries a mandatory minimum sentence of 10 years and a maximum sentence of life in federal prison.

          The affidavit in support of the complaint outlines a series of deliveries and subsequent seizures, most of which begin with Bou leaving one of two “stash houses” in Alhambra. Bou drove to various locations in Southern California, where he delivered boxes and duffel bags filled with narcotics that were loaded into the passenger compartments of semi-trucks, according to the affidavit.

          The complaint alleges that Bou made a total of eight deliveries of narcotics to semi-truck drivers, including a shipment of 500 pounds of methamphetamine that was seized on August 23. Additionally, in conjunction with Bou’s arrest, law enforcement conducted several searches and recovered 48 kilograms of suspected cocaine inside two sophisticated hidden compartments in a minivan that Bou had recently locked up in a storage facility in Pasadena.

          As a result of the seizures over the past year – a total of 1,008 pounds of methamphetamine and 333 kilograms of cocaine – the affidavit estimates that “Bou has distributed drugs with a value of at least $9.8 million in Los Angeles, and likely several times that amount if exported and resold in Canada.”

          A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

          Bou is scheduled to be arraigned on September 22.

          The FBI and the Los Angeles HIDTA Task Force are conducting the investigation into Bou and his alleged associates. The Royal Canadian Mounted Police, the Los Angeles Violent Transnational Organized Crime Task Force, the Las Vegas Metropolitan Police Department, the California Highway Patrol, the Barstow Police Department, the Mohave Area General Narcotics Enforcement Team, and the Kern County Sheriff’s Office have provided substantial assistance in this matter.

          The case against Bou is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks

          Assistant United States Attorney Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.

Source: United States Department of Justice Criminal Division

Two Marshall Island nationals, Cary Yan, 50, and Gina Zhou, 34, arrived in the United States today after being extradited from Thailand. Yan and Zhou are charged with allegedly violating the Foreign Corrupt Practices Act (FCPA), money laundering, and conspiracy to commit those offenses in connection with a scheme to bribe elected officials of the Republic of the Marshall Islands (RMI) in exchange for passing certain legislation. They are expected to make their initial court appearance on Sept. 6 before U.S. Magistrate Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York.

“Yan and Zhou allegedly engaged in a multi-year scheme to bribe elected officials in the Marshall Islands and to corrupt the legislative process,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department is committed to prosecuting individuals who participate in international corruption and undermine the integrity of democratic institutions and the free marketplace.”

On Aug. 10, 2020, Yan and Zhou were charged in a five-count indictment with one count of conspiring to violate the FCPA, two counts of violating the FCPA, one count of conspiring to commit international money laundering, and one count of committing international money laundering. The indictment alleges, beginning in or around 2016 and continuing until at least August 2020, Yan and Zhou, as the president and assistant to the president, respectively, of a New York-based non-governmental organization (NGO), conspired with others in connection with a multi-year bribery and money laundering scheme. Yan and Zhou allegedly offered and paid tens of thousands of dollars in bribes to elected RMI officials – including, among others, members of the RMI legislature – in exchange for supporting legislation creating a semi-autonomous region within the RMI called the Rongelap Atoll Special Administrative Region (RASAR) that would benefit the business interests of the defendants and their associates. The indictment alleges that the defendants carried out the bribery and money laundering scheme using the New York NGO, including the physical use of its headquarters in Manhattan, to meet with and communicate with RMI officials. 

“As alleged, Cary Yan and Gina Zhou’s bribery scheme was designed to influence and manipulate the legislative process of the Republic of the Marshall Islands in order to benefit themselves and their associates financially,” said U.S. Attorney Damian Williams for the Southern District of New York. “Yan and Zhou’s bribes blatantly flouted the sovereignty of the Republic of the Marshall Islands and its legislature, and the dedicated investigative work carried out by this Office and our partners signals that the Southern District of New York will not tolerate those who openly violate the integrity of democratic processes.”

“As alleged, the defendants conducted multiple illegal activities to benefit their personal interests at the expense of the people of the Marshall Islands,” said Assistant Director-in-Charge Michael J. Driscoll of the FBI New York Field Office. “The FBI, along with our global law enforcement partners, is committed to bringing to justice those who seek to use corruption and fraud as a means of doing business – regardless of where in the world they are located.”

On Nov. 17, 2020, Yan and Zhou were arrested in Thailand at the request of the United States pursuant to a bilateral extradition treaty. After extradition proceedings concluded in Thai courts, the Royal Thai Government ordered the defendants’ extradition, which resulted in their arrival in the United States on Sept. 2.

If convicted, Yan and Zhou each face a maximum penalty of 20 years in prison for each count of money laundering and conspiracy to commit money laundering and up to five years in prison for each count of violating the FCPA and conspiring to violate the FCPA. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Polite and U.S. Attorney Williams commended and thanked the Royal Thai Government for its assistance in the extradition of Yan and Zhou to the United States. The Embassy of the United States in Bangkok and the Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of the defendants.

The FBI’s New York Field Office investigated the case. The U.S. Marshals Service transported Yan and Zhou from Thailand to the United States.

Assistant Chief Gerald M. Moody, Jr. of the Justice Department’s Fraud Section and Deputy Chief of the Southern District of New York’s Criminal Division Daniel C. Richenthal, Assistant U.S. Attorneys Hagan Scotten, Lara Pomerantz and Derek Wikstrom for the Southern District of New York are prosecuting the case.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.   

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice News

CHICAGO — A consultant pleaded guilty in federal court today to offering and providing bribes to public officials in an effort to benefit his clients.

ROBERTO CALDERO, 69, of Chicago, pleaded guilty to one count of wire fraud.  The conviction is punishable by up to 20 years in federal prison.  U.S. District Judge Steven C. Seeger set sentencing for Dec. 15, 2022.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI.  The Chicago Public Schools Office of Inspector General participated in the investigation.  The government is represented by Assistant U.S. Attorney Michelle Kramer.

Caldero admitted in a plea agreement that in 2016 he offered and arranged for bribes to be provided to a City of Chicago alderman and a Chicago Public Schools employee in exchange for them taking official actions to benefit Caldero’s clients, who were seeking a custodial services contract at CPS, an honorary street name designation in Chicago, and the renaming of a parcel of property believed to be a Chicago Park District park.  The benefits Caldero offered the CPS employee included the prospect of future employment, champagne, discounted event space for a family event, and admission to an annual benefit for a museum.  To influence the alderman, Caldero arranged for campaign contributions to be made to political organizations affiliated with the alderman or his ward.  Unbeknownst to Caldero, the alderman was cooperating with the FBI.