GCIS INTELLIGENCE BRIEFING: CEO of Telecommunications Company Pleads Guilty in Foreign Bribery Conspiracy

 

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

19May2011 6:25pmEST

GCIS INTELLIGENCE UPDATE:  WASHINGTON—Jorge Granados, the former chief executive officer of Miami-based telecommunications company Latin Node Inc. (LatiNode), pleaded guilty today to conspiring to pay bribes to government officials in Honduras, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division. To date, four former senior executives of LatiNode have pleaded guilty to conspiring to pay bribes to the Honduran officials.

Granados, 54, pleaded guilty before U.S. District Judge Joan A. Lenard in U.S. District Court in Miami to conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA).

"Jorge Granados today admitted to authorizing illegal bribe payments to Honduran officials, and now he must pay for his crime," said Assistant Attorney General Lanny A. Breuer of the Criminal Division. "Foreign bribery undermines competition in the marketplace and weakens democratic institutions. CEOs and other corporate executives should know that now, more than ever, violating the Foreign Corrupt Practices Act will lead to criminal prosecution."

"Today's plea reflects the FBI's commitment to aggressively pursue individuals and businesses that engage in corruption around the globe," said Special Agent in Charge John V. Gillies of the FBI's Miami Field Office. "Those who elect to pay illegal bribes to further their business interests in the United States or abroad should know that they are not beyond the reach of the FBI. We will work with our law enforcement partners and prosecutors to bring these corrupt individuals to justice."

"Business executives should beware that paying bribes in foreign countries leads to prosecution in the United States," said U.S. Immigration and Customs Enforcement (ICE) Director John Morton. "Our Foreign Corruption Investigative group will continue to provide resources and support to our international partners in an effort to fight corrupt business practices.

According to court documents, LatiNode provided wholesale telecommunications services using Internet protocol technology to countries throughout the world, including Honduras. In December 2005, LatiNode learned that it was the sole winner of an "interconnection agreement" with Empresa Hondureña de Telecomunicaciones (Hondutel), the wholly state-owned telecommunications authority in Honduras. The agreement permitted LatiNode to use Hondutel's telecommunications lines in order to establish a network between Honduras and the United States, and to provide long distance services between the two countries.

According to court documents, Granados and other LatiNode executives, including Manuel Salvoch, the chief financial officer; Manuel Caceres, the vice president for business development; and Juan Pablo Vasquez, the chief commercial officer, agreed to a secret deal to pay bribes to Hondutel officials, including the general manager, a senior attorney for Hondutel, and a minister of the Honduran government who became a representative on the Hondutel board of directors. According to court documents, between September 2006 and June 2007, LatiNode executives paid more than $500,000 in bribes to the Honduran officials, concealing many of the payments by laundering the money through LatiNode subsidiaries in Guatemala and to accounts in Honduras controlled by the Honduran government officials. Granados admitted that he authorized bribe payments.

At sentencing, scheduled for Aug. 22, 2011, Granados faces up to five years in prison and a fine of the greater of $250,000, or twice the value gained or lost.

On April 7, 2009, LatiNode pleaded guilty to a one-count information charging the company with a criminal violation of the FCPA. As part of the plea agreement, LatiNode agreed to pay a $2 million fine. The resolution of the criminal investigation of LatiNode reflected, in large part, the actions of eLandia International Inc. in disclosing potential FCPA violations to the department after eLandia's acquisition of LatiNode in 2007 and discovery of the improper payments. Granados and Caceres were charged in a Dec. 14, 2010, indictment with violations of the FCPA and international money laundering. On Dec. 17, 2010, criminal informations were filed against Salvoch and Vasquez, charging them with conspiracy to violate the FCPA. Salvoch, Vasquez, and Caceres pleaded guilty to conspiracy to violate the FCPA on Jan. 12, 2011, Jan. 21, 2011, and May 18, 2011, respectively. The three defendants face prison sentences of up to five years.

The case is being prosecuted by Acting Senior Deputy for Litigation Jeffrey H. Knox and Trial Attorney Amanda Aikman of the Criminal Division's Fraud Section. Significant assistance was provided by Trial Attorney James M. Koukios. The case was investigated by the FBI's Miami Field Office and ICE Homeland Security Investigation's Foreign Corruption Investigations Group in Miami.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: India and Pakistan – foreign conspiracy myths

 

ISSUED BY: GCIS Communications Command Center

SOURCE: Strategy Page

02April2011 1:45pmEST

GCIS INTELLIGENCE UPDATE: Pakistan's biggest problem is not the threat of attacks by Islamic terrorists, but the nationwide attitude of victimization by foreigners. Everything, even the widespread corruption, is blamed on some foreign conspiracy to bring Pakistan down. Every country has some of these myths, but some more than others. In Pakistan, the conspiracies are numerous and crippling. The worst examples of these involve India, and the overall theme that India is plotting to destroy Pakistan from within (via sponsoring terrorism and separatism) and without (modernizing armed forces that are already much larger than Pakistans). Other major conspirators are Israel, the United States and former colonial ruler Britain. Pakistani media and politicians have been blaming the foreign conspirators for decades, and many Pakistanis just take these beliefs for granted. After all, it was what they were raised on. At the same time, many Pakistanis, especially those who travel outside the country a lot, or have lived in the West, are exposed to other versions of history and have doubts. But to express these doubts back in Pakistan can get you in big trouble. The truth can get you killed.  (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Former Bank President and Senior Loan Officer Indicted in Multi-Million-Dollar Fraud Conspiracy

Failed Stockbridge Bank Allegedly Fleeced Before Being Seized By Feds

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

21March2011 8:19pmEST

GCIS INTELLIGENCE UPDATE: ATLANTA—An indictment unsealed today charges two former top officers of FirstCity Bank of Stockbridge, Georgia—MARK A. CONNER, 44, formerly of Canton, Georgia, and CLAYTON A. COE, 44, of McDonough, Georgia—with a variety of offenses, including conspiracy to commit bank fraud and bank fraud in connection with misconduct at FirstCity Bank in the years before the bank’s seizure by state and federal authorities on March 20, 2009. In addition to the conspiracy and bank fraud charges, the indictment charges CONNER with conducting a continuing financial crimes enterprise at the bank between February 2006 and February 2008, during which CONNER’s and his co-conspirators’ crimes allegedly generated over $5 million in unlawful gross proceeds.

A federal grand jury in Atlanta returned the sealed indictment against CONNER and COE on March 16, 2011. CONNER was arrested on the charges and taken into custody by federal agents at Miami International Airport yesterday morning, the two-year anniversary of FirstCity Bank’s failure, upon his arrival in Miami from the Turks and Caicos Islands in the West Indies. CONNER made his initial appearance today before a federal magistrate judge in Miami, who preliminarily ordered CONNER to be detained as a flight risk pending his transfer by Deputy U.S. Marshals from Miami to Atlanta for trial. A formal detention hearing will take place in Miami on Thursday, March 24, 2011, at 1:30 p.m. COE’s initial appearance on the indictment in the Northern District of Georgia has not yet been scheduled.

United States Attorney Sally Quillian Yates said, “The entire country has felt the deep economic impact of failed banks. At the heart of this indictment is an abuse of power by key insiders, who are charged with tricking their own colleagues into approving millions of dollars in commercial loans to fund the defendants’ own personal business activities, and to enrich themselves at the bank’s expense. Along the way, these defendants also allegedly defrauded state and federal bank regulators and examiners, and at least 10 other federally insured banks in Florida and Georgia that invested in the fraudulent multi-million-dollar loans.”

FDIC Inspector General Jon Rymer said, “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) is pleased to join the United States Attorney’s Office for the Northern District of Georgia and our law enforcement colleagues in announcing this indictment. We are particularly concerned when former senior bank officials, who have held positions of trust within their institutions, are alleged to have been involved in criminal activity. We will continue to aggressively pursue bank officials and others who victimize financial institutions.”

Neil Barofsky, SIGTARP Special Inspector General for the Troubled Asset Relief Program said, “Today’s indictment marks yet another occasion where bank executives are alleged to have turned to criminal fraud in the midst of the financial crisis, including an attempt to obtain millions of dollars from the American taxpayer through the Troubled Asset Relief Program. SIGTARP will continue to work with our law enforcement partners to bring those who engage in such crimes to justice.”

IRS-Criminal Investigation Special Agent in Charge Reginael McDaniel said of the case, “Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money. Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”

According to United States Attorney Yates, the charges, and other information presented in court: CONNER served in a variety of top positions at FirstCity Bank between 2004 and 2009, including as vice-chairman of the board of directors, as a member of the banks’ loan committee, as president, and later as acting chairman and chief executive officer. COE served as a vice-president and as FirstCity Bank’s senior commercial loan officer. While serving in these positions, CONNER, COE, and their co-conspirators allegedly conspired to defraud FirstCity Bank’s loan committee and board of directors into approving multiple multi-million-dollar commercial loans to borrowers who, unbeknownst to FirstCity Bank, were actually purchasing property owned by CONNER or COE personally.

The indictment charges that CONNER, COE, and their co-conspirators misrepresented the essential nature, terms, and underlying purpose of the loans and falsified documents and information presented to the loan committee and the Board of Directors. CONNER, COE, and their co-conspirators then allegedly caused at least 10 other federally insured banks to invest in, or “participate in” the fraudulent loans based on these and other fraudulent misrepresentations, shifting all or part of the risk of default to the other banks. COE’s bonus compensation was tied to the origination of FirstCity Bank loans, including the fraudulent loans with which he and CONNER allegedly assisted each other.

In the process of defrauding FirstCity Bank and the “participating” banks, CONNER, COE, and their co-conspirators allegedly routinely misled federal and state bank regulators and examiners to conceal their unlawful scheme. They also unsuccessfully sought federal government assistance through the U.S. Treasury Department’s Troubled Asset Relief Program (“TARP”) and engaged in other misconduct in an attempt to avoid seizure by regulators and prevent the discovery of their fraud.

The charge against CONNER for conducting a continuing financial crimes enterprise carries a mandatory minimum sentence of 10 years in federal prison, a maximum sentence of life in prison, and a potential fine of up to $10 million. The conspiracy and bank fraud charges against CONNER and COE, and a remaining charge against COE for fraudulently influencing the actions of a federally insured bank, carry a maximum sentence of 30 years in prison and a potential fine of up to $1 million on each count. In determining the actual sentences for each defendant, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial. (read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: Puerto Rico Senator and Businessman Convicted in Bribery Scheme

ISSUED BY: GCIS Communications Command Center

SOURCE: FBI

08March2011 10:19pmEST

GCIS INTELLIGENCE UPDATE: WASHINGTON—Puerto Rico Senator Hector Martinez Maldonado and Juan Bravo Fernandez, the former president of one of the largest private security companies in Puerto Rico, were convicted by a jury in San Juan, Puerto Rico, for their roles in a bribery scheme involving legislation beneficial to Bravo Fernandez’s business, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.

Martinez Maldonado , 42, of Carolina, Puerto Rico, and Bravo Fernandez, 55, of San Juan, were each convicted late yesterday of federal program bribery. In addition, Bravo Fernandez was convicted of traveling in interstate commerce in aid of racketeering and conspiracy to commit to travel in interstate commerce in aid of racketeering. Martinez Maldonado was acquitted of conspiracy, traveling in interstate commerce in aid of racketeering, and obstruction of justice.

“By participating in a brazen scheme involving the exchange of cash and lavish trips for votes and official acts, these defendants subverted the democratic process,” said Assistant Attorney General Breuer. “Now they are seeing the consequences. As these convictions show, the Justice Department is committed to investigating and prosecuting public corruption wherever we find it.”

“Corruption relies on connections, forcing businessmen to forge questionable relationships with government officials, who facilitate their requests and grant them favors. This corrupt behavior, ingrained so deeply in the Puerto Rican government's fabric, allows money and power to become one. Law abiding citizens must denounce those dishonest government officials in order to weed out corruption from our society,” said Luis Fraticelli, Special Agent in Charge of the FBI-San Juan Field Office.

Martinez Maldonado was elected to the Puerto Rican Senate in 2004 and began serving a four-year term in January 2005. He was reelected in 2008. Bravo Fernandez was the president and chief executive officer of Ranger American, one of the largest private security firms in Puerto Rico.

The jury convicted the defendants for their role in a bribery scheme in which Bravo Fernandez conspired to secure the passage of two bills favorable to his business interests by bribing Martinez Maldonado and Jorge de Castro Font, a former Puerto Rican senator. De Castro Font served in the Puerto Rico House of Representatives from 1989 to 2004, and served in the Puerto Rico Senate from 2005 to 2008. Beginning in 2005, De Castro Font served as Chairman of the Committee on Rules and Calendars, exercising significant control over which bills, confirmations and other matters were brought to a vote on the floor of the Senate and when they were brought to a vote. Beginning in 2005, Martinez Maldonado served as Chairman of the Puerto Rico Public Safety Committee, exercising significant control over legislation related to the security and community safety.

According to court documents and evidence presented at trial, Martinez Maldonado and De Castro Font exercised significant control over the fate of the legislation benefitting Bravo Fernandez’s business interests. Specifically, Martinez Maldonado’s committee had jurisdiction over Bravo Fernandez’s two bills and was required to approve the legislation before De Castro Font could schedule them for a vote before the entire Senate. Evidence at trial showed that in order to secure passage of the two bills, Martinez Maldonado and De Castro Font made an agreement with Bravo Fernandez to take official acts supporting the legislation benefitting his business interests in exchange for things of value provided by Bravo Fernandez. Specifically, Bravo Fernandez provided numerous cash payments to De Castro Font.

According to court documents and evidence presented at trial, Bravo Fernandez also agreed to provide to Martinez Maldonado and De Castro Font a trip to Las Vegas to watch the May 14, 2005, championship boxing match between Winky Wright and Felix “Tito” Trinidad, a popular Puerto Rican boxer. As part of this agreement, Bravo Fernandez provided, among other things, first-class airfare, hotel rooms at the Mandalay Bay Resort and Casino, tickets to the Trinidad vs. Wright boxing match worth $1,000, hotel rooms in Miami for the return trip, as well as meals and drinks. Evidence at trial showed that on March 2, 2005, the day that Bravo Fernandez paid for the boxing tickets, Martinez Maldonado submitted one of the bills for consideration by the Puerto Rico Senate. Also, on April 21, 2005, Bravo Fernandez used his personal credit card to reserve a hotel room at the Mandalay Bay Resort and Casino. The deposit for this hotel room was credited to Martinez Maldonado’s hotel room. According to court documents, the reservation was made the day after Martinez Maldonado presided over a Public Safety Committee hearing for one of the two bills at which Bravo Fernandez was the only representative from the private security industry to testify. Martinez Maldonado authorized a committee report in support of Bravo Fernandez’ bill immediately after the hearing. According to evidence at trial, on May 17, 2005, the day after the three men returned from their trip to Las Vegas, Martinez Maldonado and De Castro Font both cast their vote in support of one of Bravo Fernandez’ bills in front of the entire Puerto Rico Senate. On May 18, 2005, the other bill was approved by the Puerto Rico Public Safety Committee, Chaired by Martinez Maldonado. That bill was passed by the Puerto Rico Senate on May 23, 2005.

De Castro Font pleaded guilty on Jan. 21, 2009, to 20 counts of honest services wire fraud and one count of conspiracy to commit extortion. He is currently awaiting sentencing.

Bravo Fernandez faces a maximum penalty of five years in prison and a $250,000 fine for each count of conspiracy and travel in aid of racketeering and 10 years in prison and a $250,000 fine for the bribery count. Martinez Maldonado faces a maximum penalty of 10 years in prison and a $250,000 fine for the bribery count. Sentencing has been scheduled for June 7, 2011.

This case is being prosecuted by Trial Attorneys Peter Koski and Deborah Sue Mayer of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI.

(read full report)

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.

GCIS INTELLIGENCE BRIEFING: IRAN IN THE NEWS

Police disperse Iranian protesters with tear gas

ISSUED BY: GCIS Communications Command Center

SOURCE: The Independent

14February2011 1:43pmEST

GCIS INTELLIGENCE UPDATE: (AP) – Clashes between Iranian police and tens of thousands of protesters wracked central Tehran today with security forces beating and firing tear gas at opposition supporters looking to evoke Egypt's recent popular uprising.

The opposition called for a demonstration today in solidarity with Egypt's popular revolt that a few days earlier forced the president there to resign after nearly 30 years in office. The rally is the first major show of strength for Iran's cowed opposition in more than a year. (read full report)

 

Iran court to target 'media crimes,' spurring fears of fresh crackdown

SOURCE: CNN

GCIS INTELLIGENCE UPDATE: Iranian officials said Sunday that the Middle Eastern nation will create a court focusing on "media crimes," according to state-run media reports, a move that has fueled fears Tehran is further intensifying its crackdown on journalists.

Abbas Zagholi, the head of Iran's Government Employees Court, said the new judicial branch "was necessitated by the special media crimes," according to a report in Khabar, a conservative publication run by backers of parliamentary Speaker and Tehran Mayor Ali Larijani.

"For certain reasons, such as great developments in mass media, the Tehran prosecutor felt the need to create a more independent court to deal with media affairs," Zagholi said.

Omid Memarian, a native Iranian and U.S.-based freelance journalist who said he talks regularly with journalists in Iran, said the new apparatus could spell greater attention, and prosecution, of those who don't mimic Tehranian government positions. (read full report)

 

Iran: West Is Conspiring in Demonstrations

SOURCE: Newsmax

GCIS INTELLIGENCE UPDATE:

TEHRAN — Western spies are conspiring to ignite an uprising in Iran by recruiting a candidate willing to set himself on fire in an anti-regime protest, the Islamic republic's volunteer militia warned on Sunday.

Basij commander Mohammad Reza Naghdi's accusation came as Washington and Tehran engage in a war of words over Egyptian president Hosni Mubarak's ouster under the weight of a popular uprising.

"Western intelligence agencies are searching for a mentally challenged person who can set himself on fire in Tehran to trigger developments like those in Egypt and Tunisia," Naghdi said, quoted by Fars news agency.

"They (the West) are very retarded and think by imitating such actions they can emerge victorious," said the powerful Islamist volunteer militia's commander. (read full report)

 

'This may be the first spark of revolution in Iran’

SOURCE: JPOST

GCIS INTELLIGENCE UPDATE: The protesters of Egypt, who brought down Hosni Mubarak over the weekend after 18 days of sustained demonstrations, have given the Iranian public a clear lesson, according to Menashe Amir, the veteran Israeli expert on Iranian affairs: When you take the streets, don’t go home again.

Amid minor, but spreading clashes in Iran on Monday afternoon, with news agencies reporting Iranian forces using sticks and tear gas as several thousand people headed into major squares, the question of the hour is whether Iranians have learned from the Egyptian precedent and are willing to try and replicate it. Monday’s protests were initiated by Iranian opposition figures in ostensible solidarity with the popular protests in Egypt and elsewhere, but were plainly intended, after months of relative quiet, to revive the anti-regime demonstrations of 2009, and the Iranian authorities did their best in recent days to discourage them. (read full report)

 

"GCIS INTELLIGENCE UPDATE" is an intelligence briefing presented by Griffith Colson Intelligence Service, and provided to the public for informative purposes only. All subject matter is credited to it's source of origin, and is not intended to represent original content authored by GCIS, it's partners or affiliates. All opinions presented are those of the author, and not necessarily those of GCIS or it's partners.