Arrest of Bank Robbery, Carjacking Suspect Pedro Luis Valdes

The FBI announces the arrest of Pedro Luis Valdes, 48, of Miami, Florida, for his alleged involvement in two recent bank robberies and a carjacking involving a 3-year-old child (the child was returned safely).

The arrest was made without incident by the FBI, U.S. Secret Service, Miami-Dade PD, Hialeah PD, City of Miami PD, Miami Beach PD, and the South Florida Violent Crime Fugitive Task Force (SFVCFTF) around 9:45 p.m. last night at 3141 SW 8th Street in Miami, Florida.

Valdes is in federal custody and is expected to face federal charges. It is anticipated that his initial appearance will be today (Friday) in federal court in Miami.

The FBI, the U.S. Secret Service, Miami-Dade PD, Hialeah PD, City of Miami PD, and all members of the SFVCFTF continue their investigation. No further information will be released at this time.

President of Broward Title and Escrow Company Sentenced in Two Separate Multi-Million-Dollar Mortgage Fraud Schemes

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Paula Reid, Special Agent in Charge, United States Secret Service, Miami Field Office; and Linda Charity, Interim Commissioner, State of Florida’s Office of Financial Regulation, announced the sentencing of defendant Michelle Austin-Wilks, 38, of Parkland, Florida, for her participation in two separate mortgage fraud schemes in Broward and Palm Beach Counties.

At this morning’s hearing, U.S. District Judge James I. Cohn sentenced Austin-Wilks to 63 months in prison, to be followed by five years of supervised release. Austin-Wilks was also ordered to pay $6,269,547 in restitution to the victims of her fraud. Austin-Wilks previously pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and four counts of wire fraud, in violation of Title 18, United States Code, Section 1343, for her participation in the mortgage fraud schemes.

Austin-Wilks participated in two schemes. The first scheme was charged in U.S. v. Gaith Al Nahar et. al, Case No 11-60183-CR-COHN. In that case, from February to November 2007, Ghaith Al Nahar, 40, a mortgage broker, formerly of Boynton Beach, identified residential properties and paid individuals to act as straw buyers for the properties. These straw buyers submitted false loan applications and supporting documents containing false information to various mortgage lenders across the United States. After the lenders approved the loans based on the false information provided, defendant Austin-Wilks, then president and director of Direct Title & Escrow Services Inc., prepared false HUD-1 Settlement Statements that contained false information. For example, the forms falsely represented to the lenders that the straw buyers were bringing their own money to closing. Austin-Wilks also falsely represented to the lenders that she had disbursed the loan proceeds in accordance with the lenders’ instructions. Instead, Austin-Wilks made unauthorized disbursements from the loan proceeds to one of her companies as “processing fees.” Based on these false statements and documents, the mortgage lenders issued more than $9 million in loans.

Ghaith Al Nahar pled guilty and was sentenced on January 27, 2012 to 63 months in prison and was ordered to pay $1,863,109.30 in restitution. An employee at Al Nahar’s office, Romy Defay, 28 of West Palm Beach, also pled guilty and was sentenced on January 27, 2012 to 33 months in prison and was ordered to pay $441,747 in restitution. The straw buyers, Jeffery Gilbert and Philip Jay Newman, pled guilty. Gilbert was sentenced to three years of probation and was ordered to pay $441,747 in restitution. Newman was sentenced to 21 months in prison and was ordered to pay $662,051.42 in restitution.

In the second case, U.S. v. Michelle Austin Wilks, Case No. 12-60054-CR-COHN, defendant Austin-Wilks and others, through Direct Title & Escrow Services Inc., engaged in a scheme to enrich themselves from June to October 2007 by fraudulently buying and selling residential real estate property in Broward County through straw buyers. These straw buyers obtained high value mortgages based on fraudulent mortgage loan applications and closing statements that contained false information. After the lenders approved the loans based on the loan applications, Austin-Wilks prepared HUD-1 Settlement Statements that, among other things, falsely represented to the lenders that the straw buyers were bringing their own money to closing. Austin-Wilks also created and submitted duplicate HUD-1 Settlement Statements for the same real estate transaction to the mortgage lenders, reflecting different sales prices to the seller and to the lender. The lender’s version reflected a significantly higher purchase price than the seller’s version of the HUD-1 Settlement Statement. After closing, the lenders wired a total of approximately $3 million in mortgage loan proceeds into a bank account controlled by Austin-Wilks.

Thereafter, Austin-Wilks made numerous wire transfers, including transfers of $68,562 and $382,000, respectively, to a mortgage broker and a straw buyer for their assistance in the mortgage fraud scheme. The mortgage broker, Jinnie Mathurin, pled guilty to one count of wire fraud and was sentenced on March 7, 2012 to one year and one day in prison, and was ordered to pay $1,170,443.71 in restitution. The straw buyer, Guhier Florvilus, also pled guilty to one count of wire fraud and was sentenced on May 17, 2012, to 14 months in prison and was ordered to pay $1,421,233 in restitution. In addition to these wire transactions, Austin-Wilks was also convicted of two additional wire fraud transactions for two wires sent by national mortgage lenders.

Mr. Ferrer commended the investigative efforts of the FBI, the U.S. Secret Service, and Florida’s Office of Financial Regulation. Mr. Ferrer noted the assistance of the U.S. Marshals Service for their substantial efforts in locating defendant Austin-Wilks in Jamaica and returning her to United States. These cases were prosecuted by Assistant U.S. Attorneys Randy Katz and Armando Rosquete.

Alleged International Credit Card Trafficker “Badb” Extradited from France to the United States

WASHINGTON – Vladislav Anatolievich Horohorin, aka “BadB” of Moscow, an alleged international credit card trafficker thought to be one of the most prolific sellers of stolen credit card data, has been extradited from France to the United States to face criminal charges filed in the District of Columbia and in the Northern District of Georgia. 

 The extradition was announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. for the District of Columbia, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia, U.S. Secret Service (USSS) Assistant Director for Investigations David J. O’Connor, and Special Agent in Charge Brian D. Lamkin of the FBI’s Atlanta Field Office.

 Horohorin, 27, made his first appearance before U.S. District Judge Ellen Segal Huvelle in the District of Columbia yesterday.  He was extradited to the United States on June 6, 2012, and was arraigned before U.S. Magistrate Judge Alan Kay in the District of Columbia on June 7, 2012.  He was ordered detained pending trial.

 “According to the indictment, Mr. Horohorin was one of the most notorious credit card traffickers in the world, transacting in stolen credit information across the globe,” said Assistant Attorney General Breuer.  “Due to our strong relationships with our international law enforcement partners, we secured his extradition to the United States, where he now faces multiple criminal counts in two separate indictments.  We will continue to do everything we can to bring cybercriminals to justice, including those who operate beyond our borders.”

 “Our indictment alleges that this young man used his technological savvy to profit by selling stolen credit card information over the Internet on a massive scale,” said U.S. Attorney Machen.  “We are pleased that he has been extradited to the United States to face these criminal charges in a District of Columbia courtroom.  This prosecution demonstrates that those who try to rip off Americans from behind a computer screen across an ocean will not escape American justice.”

 “The Secret Service is committed to identifying and apprehending those individuals that continue to attack American financial institutions and we will continue to work through our international and domestic law enforcement partners in order to accomplish this,” said USSS Assistant Director O’Connor.

 “International cyber criminals who target American citizens and businesses often believe they are untouchable because they are overseas,” said U.S. Attorney Yates.  “But as this case demonstrates, we will work relentlessly with our law enforcement partners around the world to charge, find and bring those criminals to justice.”

 “Horohorin’s extradition to the United States demonstrates the FBI’s expertise in conducting long-term investigations into complex criminal computer intrusions, resulting in bringing the most egregious cyber criminals to justice, even from foreign shores,” said Special Agent in Charge Lamkin.  “The combined efforts of law enforcement agencies to include our international partners around the world will ensure this trend continues.”

 Horohorin was indicted by a federal grand jury in the District of Columbia in November 2009 on charges of access device fraud and aggravated identity theft.  In a separate investigation, a federal grand jury in the Northern District of Georgia returned a superseding indictment against Horohorin in August 2010, charging him with conspiracy to commit wire fraud, wire fraud and access device fraud.  In August 2010, French law enforcement authorities, working with the U.S. Secret Service, identified Horohorin in Nice, France, and arrested him as he was attempting to board a flight to return to Moscow.

 According to the indictment filed in the District of Columbia, Horohorin was the subject of an undercover investigation by USSS agents.  Horohorin, who is a citizen of Israel, Russia and Ukraine, allegedly used online criminal forums such as “CarderPlanet” and “carder.su” to sell stolen credit card information, known as “dumps,” to online purchasers around the world.  According to the indictment, Horohorin, using the online name “BadB,” advertised the availability of stolen credit card information through these web forums and directed purchasers to create accounts at “dumps.name,” a fully-automated dumps vending website operated by Horohorin and hosted outside the United States.  The website was designed to assist in the exchange of funds for the stolen credit card information.  Horohorin allegedly directed buyers to fund their “dumps.name” account using funds transferred by services including “Webmoney,” an online currency service hosted in Russia.  The purchaser would then access the “dumps.name” website and select the desired stolen credit card data.  Using an online undercover identity, USSS agents negotiated the sale of numerous stolen credit card dumps.

 According to the indictment filed in the Northern District of Georgia, Horohorin was one of the lead cashers in an elaborate scheme in which 44 counterfeit payroll debit cards were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide in a span of less than 12 hours.  Computer hackers broke into a credit card processor located in the Atlanta area, stole debit card account numbers, and raised the balances and withdrawal limits on those accounts while distributing the account numbers and PIN codes to lead cashers, like Hororhorin, around the world.

 Horohorin faces a maximum penalty of 10 years in prison for each count of access device fraud, 20 years in prison for each count of conspiracy to commit wire fraud and wire fraud and a statutory consecutive penalty of two years in prison for the aggravated identity theft count.

 The charges in the indictments are merely allegations and a defendant is presumed innocent until proven guilty.

 The District of Columbia case is being prosecuted by Trial Attorneys Carol Sipperly, Ethan Arenson and Corbin Weiss of the Computer Crime and Intellectual Property Section (CCIPS) in the Justice Department’s Criminal Division.  Weiss also serves as a Special Assistant U.S. Attorney for the District of Columbia.  The District of Columbia case is being investigated by USSS.  Key assistance was provided by the French Police Nationale Aux Frontiers and the Netherlands Police Agency National Crime Squad High Tech Crime Unit.  The FBI Atlanta field office provided information helpful to the investigation.

 The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorneys Nick Oldham and Lawrence R. Sommerfeld and Trial Attorney Sipperly of CCIPS.  The Atlanta case is being investigated by the FBI.  Assistance was provided by numerous law enforcement partners.  U.S. Secret Service provided information helpful to the investigation.

 The Office of International Affairs in the Justice Department’s Criminal Division provided invaluable assistance.

North Carolina Man Indicted on Federal Charges in Assault Against Ambassador, Fires at Gabonese Embassy

Defendant Was Arrested After Demonstration Turned Violent

WASHINGTON - Leon Obame, 44, of Raleigh, N.C., was indicted today on federal charges stemming from two arsons in 2009 at the Gabonese Embassy and a 2011 assault against the country's ambassador, U.S. Attorney Ronald C. Machen Jr. announced.

Obame has been in custody since his arrest Dec. 9, 2011 during a demonstration at the Gabonese Embassy in which he allegedly struck the ambassador. He earlier was indicted on a charge of assault against a foreign official for that attack.

Today, a grand jury returned a superseding indictment in the U.S. District Court for the District of Columbia. In addition to the earlier assault charge, the superseding indictment adds charges in connection with the fires at the embassy in Northwest Washington. The new charges include two counts each of arson and damage to property occupied by a foreign government. According to the indictment, Obame set one fire on Aug. 30, 2009 at the embassy, which is located in the 2000 block of 20th Street NW. He set a second fire on Dec. 25, 2009, the indictment alleges. No one was injured in either of the blazes.

The assault allegedly took place on Dec. 9, 2011 at the embassy’s temporary location, in the 1600 block of Connecticut Avenue NW. That morning, Obame allegedly punched the ambassador, Michael Moussa-Adamo, knocking him to the ground.

If convicted, Obame faces a maximum penalty of five years in prison for the charge of assault against a foreign official, up to five years in prison for each count of damage to property occupied by a foreign government, and up to 20 years in prison on each arson count.

An arraignment date will be set for Obame on the new charges. He earlier pleaded not guilty to the assault offense.

An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

This case is being investigated by the District of Columbia Fire and Emergency Medical Services Department, the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, and the Diplomatic Security Service. It is being prosecuted by Assistant U.S. Attorneys Frederick W. Yette and Patrick Martin of the U.S. Attorney’s Office for the District of Columbia.

Metairie Man Arrested for Illegal Sawed Off Rifle, Sale of Counterfeit Money and Methamphetamine

NEW ORLEANS, LOUISIANA — DAVID OUTLAW, age 32, a resident of Metairie, Louisiana, made his first court appearance on an indictment unsealed today charging him with selling an illegal sawed off 9 mm rifle, counterfeit federal reserve notes and a quantity of methamphetamine, announced U. S. Attorney Jim Letten. OUTLAW was arrested yesterday on a capais issued in connection with the indictment.

The indictment charges OUTLAW with illegally possessing and selling a sawed off rifle, counterfeit federal reserve notes and methamphetamine in November 2011.

U. S. Attorney Letten reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

This case was investigated jointly by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the United States Secret Service along with detectives from the Jefferson Parish Sheriff’s Office and the Kenner Police Department. This case is being prosecuted by Tony Sanders of the Violent Crimes Unit.