McNabb in the News

Senior Principal Douglas McNabb is quoted in the San Diego Union-Tribune in a story about Randy “Duke” Cunningham.

"If the other four gentlemen are indicted, the government is going to call on Mr. Cunningham to testify against one or more of these people, any one that goes to trial," said Douglas McNabb, a federal criminal defense lawyer with offices in Texas and Washington, D.C.^[1]

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[1] Onell R. Soto, Bribe Probe Likely Will Snare Others, Sand Diego Union-Tribune, Dec. 2, 2005.

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Immigration Fraud—Guilty Plea

A Bethesda, Maryland attorney, along with his law firm, has pleaded guilty to conspiring to commit immigration fraud in Maryland, Washington, DC, and Virginia.^[1] Irwin Jay Fredman admitted that from April 2001 to May 2005, he and others at his law firm “submitted fraudulent immigration documents to assist aliens in getting ‘green cards’ through an employment-based visa program.”^[2] Through this program, an employer can sponsor an alien for employment in the US if the employer has been unable to find qualified US workers to fill the position.^[3]

More than 100 Applications for Alien Employment Certification and/or Immigrant Petitions for Alien Workers were prepared and submitted to the Department of Labor.^[4] These applications contained material misrepresentations including false assertions that certain sponsoring employers had authorized the firm to file the applications; false statements about purported offers of employment; false statements about the work experience of the alien applicants; and/or forged signatures of sponsoring employers.^[5]

While Mr. Fredman’s firm typically charged US$3,000 to $6,000 for legitimate green card applications, his firm charged as much as $25,000 to file a fraudulent application.^[6]

In pleading guilty, Mr. Fredman has agreed to two sentencing enhancements, to forfeit US$200,000 to the government, to cooperate with law enforcement authorities, and to surrender his law license.^[7] He is scheduled to be sentenced on February 22, 2006.

Mr. Fredman was charged under 18 U.S.C. § 371 (conspiracy) and 1546(a) (visa fraud). Under section 371, it is a crime for a person to conspire to commit an offense against the United States, or to defraud the United States, and do an overt act in furtherance of the conspiracy. The punishment for a violation of section 371 is a fine, imprisonment for up to 5 years, or both.

Under section 1546(a), it is a crime for a person to knowingly present any application that is required by the immigration laws that contains any false statement. The punishment for a violation of section 1546(a) is a fine, imprisonment for up to 10 years, or both.

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[1] ICE, Bethesda Lawyer And Washington, D.C. Law Firm Plead Guilty To Immigration Fraud, Dec. 1, 2005; see also District of Maryland Press Blog, Bethesda Lawyer and Washington, D.C. Law Firm Plead Guilty to Immigration Fraud, US Attorney’s Office, Dec. 1, 2005.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.

Fraud--Lord Conrad Black

Lord Conrad Black has appeared at his arraignment and it appears his extradition will not be required at this time.^[1] Barring any surprises, any future discussion of Lord Black's fraud case will be done on this blog, instead of on our international extradition blog.

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[1] Conrad Black Arrives at Chicago Court, CBC News, Dec. 1, 2005.

Jose Padilla—Transfer to DOJ Delayed

As if being held for three years in solitary confinement as an enemy combatant, and then being charged for criminal acts which are substantially unrelated to the supposed reasons for the captivity weren’t bad enough. Now it turns out that Jose Padilla’s transfer from his military brig to the Department of Justice has been unexpectedly delayed.^[1]

The 4th Circuit Court of Appeals has declined to authorize the transfer of Mr. Padilla, whose criminal indictment we discussed here, until the government “elaborates on ‘the different facts that were alleged by the President to warrant [Mr.] Padilla’s military detention’ as compared with ‘the alleged facts on which [he] has now been indicted.”^[2] If the Court is not satisfied with the government’s answer, it could block the transfer entirely, or even vacate its controversial opinion, which we discussed here, that affirmed the president’s power to detain citizens as enemy combatants.^[3]

The order apparently notes that the Court would like both the government and Mr. Padilla’s attorneys “to explain whether [the Court’s] earlier ruling should be withdrawn following [Mr.] Padilla’s indictment last week.”^[4]

The full significance of the Court’s order is, at this time, unclear, but it certainly seems to be made out of some sort of irritation with the Bush administration.^[5] In any event, Mr. Padilla will remain in military custody until at least December 16, which is the last deadline for legal filings under the order.^[6]

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[1] Jerry Markon, Appeals Court Balks at Approving Padilla Plan, Wash. Post, Dec. 1, 2005, available here.
[2] Id.
[3] Id.
[4] Mark Sherman, Padilla’s Transfer to Jail Delayed by Court, Chicago Tribune, Dec. 1, 2005, available here.
[5] See Id.; Neil A. Lewis, Terror Trial Hits Obstacle, Unexpectedly, NY Times, Dec. 1, 2005, available here; Markon, supra note 1.
[6] Sherman, supra note 4.

McNabb in the News

Senior Principal Douglas C. McNabb has been quoted in a San Diego Tribune story^[1] about Congressman Randy “Duke” Cunningham’s guilty plea:

The plea agreement indicates that Cunningham already has begun talking, said Douglas McNabb ... who has represented public officials accused of corruption.

"What this says to me is that he decided pretty quickly that he wanted to cooperate," McNabb said. "This guy, in my view, has had multiple debriefings with the government and they have found him, in their view, to be very credible and very helpful. This case is not ending here."

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[1] Onell R. Soto, “Overwhelming Case” Forced Cunningham to Accept Deal, San Diego Union-Tribune, Nov. 30, 2005, available here.

Marriage Fraud—“Operation Newlywed Game”

Yesterday, when we discussed the Mak Brothers, we mentioned that Tai Wang Mak’s wife--Fuk Heung Li--had been arrested and charged for allegedly helping foreign nationals gain citizenship through phony marriages. Yesterday, a seemingly un-related marriage fraud ring was broken up.^[1]

11 individuals, mostly from China and Vietnam, were arrested as part of “Operation Newlywed Game.”^[2] The investigation lasted three years, and has resulted in the indictments of 44 people.^[3] It began when Citizenship and Immigration Services employees discovered that US citizens were petitioning for more than one spouse to receive green cards.^[4]

According to authorities, the marriage fraud ring “was unusually sophisticated,” involving fake wedding photographs, joint tax returns, and even love letters.^[5] Recruiters were paid US$1,000 for each US citizen they referred to marry a foreigner and submit a visa petition; the citizens would receive between US$3,000 to US$5,000, in addition to travel expenses, to fly to Vietnam or China for an arranged marriage and to apply for visas for their spouses.^[6]

Those who have been indicted have been charged with conspiracy, visa misuse, and marriage fraud.

Conspiracy
Under 18 U.S.C. § 371, it is a crime for a person to conspire with at least one other person to commit an offense against the United States and do an overt act in furtherance of that offense. The punishment for a violation of section 371 is a fine, imprisonment for up to 5 years or both.

Visa Misuse
Under 18 U.S.C. § 1546(a), it is a crime for a person to obtain an entry document that has been procured by fraud or by false statements. The punishment for violating section 1546(a) in this manner is a fine, imprisonment of not more than 15 years, or both.

Marriage Fraud
Under 8 U.S.C. § 1325(c), it is a crime for a person to enter into a marriage for the purpose of evading any provision of the immigration laws. The punishment for a violation of section 1325(c) is a fine of up to US$250,000, imprisonment for not more than 5 years, or both.

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[1] Anna Gorman et al., 11 Held in Alleged Marriage Scam, LA Times, Nov. 30, 2005, available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.

Fraud—Conrad Black Arraignment Postponed

Lord Conrad Black’s arraignment, scheduled for tomorrow morning, has been postponed again.^[1] He is now scheduled to appear in federal court in Chicago on Thursday, December 1; he had originally been scheduled to appear last week, but received permission to delay his appearance until tomorrow to line up his defense.^[2] The reason he will appear on Thursday instead of tomorrow is because one of his new lawyers has a conflict.^[3]

We previously discussed the charges Lord Black is facing here.

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[1] Black Arraignment Postponed to Thursday, Associated Press, Nov. 29, 2005, available here.
[2] Id.
[3] Id.

Unregistered Foreign Agents—Mak Brothers

The case of two Chinese brothers who had been arrested earlier this month for allegedly trying to pass military technology information to China, and which we discussed here, has taken a very curious turn. The men, Tai Wang Mak and Chi Mak, were refused bond because they were deemed to be flight risks.^[1]

Chi Mak was originally granted a $300,000 bond on November 18, but remained in custody.^[2] At yesterday’s hearing, federal prosecutors argued that his bond should be revoked because he was planning to retire in four months and was making plans to leave the US; why, they argued, would he stay in the US to face criminal charges that carry a maximum penalty of ten years in prison?^[3] US District Judge Cormac Carney apparently agreed. Noting that there is no extradition treaty between the US and China, if Chi Mak made it to China, Judge Carney said “I ain’t going to get him back.”^[4]

Tai Mak was denied bond because two FBI agents testified that he had pictures of himself in a Chinese military uniform, might be in the country to provide intelligence to China, and was generally “just plain not being truthful.”^[5]

The curious aspect to this case hinges on what the brothers were originally accused of doing, and what they are ultimately facing now. When they and their wives were arrested, the government charged them with possession of stolen US government property.^[6] However, in a superseding indictment, those charges were dropped, and new charges of failing to register as foreign agents were brought against the brothers and Chi Mak’s wife, Laiwah Chiu.^[7] Tai Mak’s wife, Fuk Heung Li, was named in a separate criminal complaint for allegedly helping foreign nationals gain citizenship through phony marriages; the wives are free on bond.^[8] While the brothers are no longer formally accused of possessing the secret information, those accusations still linger as questions concerning the necessity of encrypting data on a CD-ROM disc were raised at the hearing.^[9]

There was some hope yesterday that some light could be shed on why the initial accusations were dropped and replaced by the seemingly less nefarious charge.^[10] Those questions, however, were not answered in the hearing.^[11]

Acting as an Unregistered Foreign Agent
Under 18 U.S.C. § 951(a), it is a crime for a person to act in the United States as an agent of a foreign government without prior notification to the Attorney General. Violating this section is punishable by a fine, imprisonment for up to 10 years, or both.

“Agent of a foreign government” is defined as “an individual who agrees to operate within the United States subject to the direction or control of a foreign government or official.”^[12]

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[1] Claire Luna et al., Judges Refuse to Free Brothers in Chinese Spy Case, LA Times, Nov. 29, 2005, available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] See Jeremiah Marquez, FBI Official Due to Testify in Spy Case, San Jose Mercury News, Nov. 28, 2005, available here.
[11] See Gillian Flaccus, Judge Overrules Bond for Engineer Accused of Being China Agent, Monterey Herald, Nov. 29, 2005, available here.
[12] 18 U.S.C. § 951(d).

Piracy at Sea—Somali Pirates

A Ukrainian cargo ship seized over a month ago off the coast of Somalia has been freed.^[1] The roving band of pirates, whom we have covered most recently here, captured the Panahia, a cargo vessel with 22 crew members, on October 18.^[2] It is unclear whether the $700,000 ransom demanded by the pirates was paid, but Ukrainian officials in Kiev said that the shipping company that operated the vessel had been ready to pay it.^[3]

While the Somali pirates have garnered the most amount of attention in recent months, piracy is actually rampant across the globe, though it is down from previous years. In the first 9 months of 2005, there were 205 pirate attacks reported globally, compared to 251 in the same period of 2004.^[4] The coastal waters between Indonesia and Australia have seen 61 pirate attacks this year, while the Malacca Straits—which is between Malaysia and Indonesia—have seen 10.^[5] Furthermore, there have been reports of attacks on ships near the Basra, Iraq, oil terminal, and on ships around the Bonny River in Nigeria.^[6] There were ten attacks off the coasts of South America, and a number off of Africa's coasts.^[7]

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[1] Pirates Free Ukrainian Ship; Crew Safe, Associated Press, Nov. 27, 2005, available here.
[2] Id.
[3] Id.
[4] International Chamber of Commerce [hereinafter ICC], ICC Appeals for Naval Protection Against Pirates, ICC Commercial Crime Services [hereinafter ICC CCS], Nov. 7, 2005, available here.
[5] Id.
[6] Id.
[7] ICC, Piracy and Armed Robbery 1 January – 30 September 2005, ICC CCS, last visited Nov. 28, 2005, available here; see also ICC, Weekly Piracy Report, ICC CCS, Nov. 15-22, 2005, available here.