“Ex-JPMorgan Trader Released, Opposing U.S. Extradition”

August 28, 2013

Bloomberg on August 27, 2013 released the following:

By Charles Penty & Patricia Laya

“Former JPMorgan Chase & Co. (JPM) trader Javier Martin-Artajo was released from police custody after telling a Madrid court he opposed attempts by U.S. prosecutors to extradite him on charges he hid trading losses that cost the bank $6.2 billion.

The former trader turned himself in yesterday morning after being contacted by investigators, a Spanish police official said. He was released after a hearing in Madrid yesterday in which he said he was unwilling to be extradited, according to a spokeswoman for the National Court.

The U.S. this month charged Martin-Artajo, a Spanish citizen, and Julien Grout, a French citizen, with trying to hide the losses stemming from trades by Bruno Iksil, the Frenchman at the center of the case who became known as the London Whale. Grout and Martin-Artajo face up to 20 years in jail if convicted of the most serious counts, including conspiracy and wire fraud.

“The likelihood is fairly significant that he would go back,” said Ivan Mercado, managing partner at Mercado & Rengel, a law firm in Spain that works on U.S. extradition cases. “Spain and the U.S. have an extradition agreement. He can’t just say he doesn’t want to go.”

Bank’s Negotiations

JPMorgan’s losses prompted investigations on two continents, U.S. congressional hearings and an internal review that led to a 50 percent pay cut for Chief Executive Officer Jamie Dimon, who the board said bore some responsibility for lapses. Regulators in the U.K. and U.S. are preparing to impose fines on the bank as soon as mid-September, a person with direct knowledge of the matter said last week.

The bank is in talks with various authorities to settle its part of the case for about $500 million to $600 million combined, the Wall Street Journal reported, citing unidentified people close to the situation. Not all agencies have agreed to numbers and the total may end up outside that range, it said.

Martin-Artajo, 49, oversaw trading strategy for Iksil’s synthetic portfolio at JPMorgan’s chief investment office in London, while Grout was a trader who worked for him.

“The arrested person is presumed responsible for manipulating and inflating the value of positions in the synthetic credit portfolio of his firm with the aim of achieving specific objectives of daily losses and gains,” Spanish police said in a statement.

‘Fair Reconstruction’

Martin-Artajo’s lawyer, Lista Cannon, didn’t respond to a call seeking comment on his client yesterday. He “is confident that when a complete and fair reconstruction of these complex events is completed, he will be cleared of any wrongdoing,” a spokeswoman for his law firm said earlier this month. Jennifer Zuccarelli, a spokeswoman for JPMorgan, declined to comment.

At a hearing yesterday, Martin-Artajo’s lawyer filed documents in which his client denied the allegations, according to a court official who asked not to be identified because they weren’t authorized to speak publicly. The U.S. now has 40 days to file sworn statements in support of its extradition request.

Martin-Artajo will then be able to contest those arguments at a further hearing before a judge decides whether to grant the request, said Mercado, who isn’t involved in the case. The process can take up to several months, he added.

‘Very Difficult’

“When there is a bilateral agreement between two countries on certain crimes, it’s very difficult for a country to refuse extradition because the accord implies the crime is viewed comparably,” Carlos Vazquez, a criminal lawyer and partner at Vazquez & Vazquez in Madrid, said by telephone.

The spokeswoman for the court said Martin-Artajo’s passport has been confiscated. Another court official said that wasn’t the case, but that he can’t leave Spain without court approval.

Grout is living in France and isn’t a fugitive, his lawyer, Edward Little, a partner at Hughes Hubbard & Reed LLP in New York, said in an Aug. 12 interview, two days before his client was charged.

“He visited the U.S. last month with confidence he was not being indicted and moved to France to save money and look for a job,” Little said at the time. France has no obligation under its extradition treaty with the U.S. to send Grout to New York. Little declined to comment yesterday.

Martin-Artajo and Grout are charged with conspiring to falsify securities filings from March to May of 2012. The U.S. sought to keep the charges secret while arrests were attempted before unsealing them on Aug. 14. Jennifer Queliz, a spokeswoman for U.S. Attorney Preet Bharara, declined to comment.

‘Embarrassing Situation’

Dimon characterized the loss as “the stupidest and most embarrassing situation I have ever been a part of.” First disclosed in May 2012, the bad bets led to an earnings restatement, a U.S. Senate subcommittee hearing and probes by authorities including the Securities and Exchange Commission and U.K. Financial Conduct Authority.

Iksil, dubbed the “London Whale” because his portfolio was so large, signed a non-prosecution agreement with the U.S. in June, the government said. He pledged to cooperate with investigators as part of the deal. Martin-Artajo’s lawyer submitted documents with details of Iksil’s agreement with the U.S., the court official said yesterday.

The cases are U.S. v. Grout, 13-MAG-01976, and U.S. v. Martin-Artajo, 13-MAG-01975, U.S. District Court, Southern District of New York (Manhattan). The SEC case is Securities and Exchange Commission v. Martin-Artajo, 13-cv-05677, U.S. District Court, Southern District of New York (Manhattan).”

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Douglas McNabb – McNabb Associates, P.C.’s
International Extradition Lawyers Videos:

International Extradition – When the FBI Seeks Extradition

International Extradition – Wire Transfer – Email – Telephone Call

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We previously discussed the extradition treaty between the United States and Spain and the extradition treaty between the United States and France here.

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To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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“US Revokes Extradition Request for Bulgarian Mother-of-Two”

July 23, 2013

novinite.com on July 23, 2013 released the following:

“The US has revoked its request for the extradition of Gergana Chervenkova, a Bulgarian mother of two, who was charged in a US court with illegal online drug sales and participating in a crime group specialized in money laundering.

“The United States has withdrawn its request for the extradition of Ms. Gergana Ilieva Pavlova Chervenkova, who is charged in the U.S. District Court for the Southern District of New York with federal narcotics and fraud offenses,” the US Embassy in Bulgaria said in a statement.

“The request was withdrawn in part because of new information obtained by the prosecution, and not because of any deficiency in the request under the terms of the Extradition Treaty between the United States and Bulgaria. When a request is withdrawn, the Extradition Treaty permits the submission of a new request for an individual’s extradition,” the statement says.

The statement came four days after the Sofia Appellate Court yet again postponed its conclusive ruling on the extradition request, according to reports of mediapool.bg.

Gergana Chervenkova faced the prospect of being extradited to the US on charges of participating in a group involved in unauthorized online drug trade in her capacity of financial manager for the British company “Euromedonline Ltd.”

She faced a penalty of 68 years of imprisonment for the offenses.

The US authorities sent statements indicating that Drug Enforcement Administration (DEA) agents had solid evidence that the Bulgarian had been involved in illegal drug sales.

Chervenkova worked at “BG Global Services”, a company servicing British firm “Euromedonline Ltd.”

Her job was to process weekly reports from the sales system and to calculate the accumulated fees and commissions for doctors and pharmacies based on sales realized through the site. Cherevenkova’s responsibilities did not involve selling drugs.

While waiting for the court ruling on the extradition request, she spent several months in custody, until she was released by the Sofia Appellate Court on a bail of BGN 1000 on July 2.”

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Douglas McNabb – McNabb Associates, P.C.’s
International Extradition Lawyers Videos:

International Extradition – When the FBI Seeks Extradition

International Extradition – Wire Transfer – Email – Telephone Call

————————————————————–

We previously discussed the extradition treaty between the United States and Bulgaria here.

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

————————————————————–

International criminal defense questions, but want to be anonymous?

Free Skype Tel: +1.202.470.3427, OR

Free Skype call:

           Office Locations

Email:


Kozeny Won’t Be Sent to U.S., U.K. Privy Council Rules

March 28, 2012

BusinessWeek.com on March 28, 2012 released the following:

“By David Glovin

Viktor Kozeny, the Czech-born businessman wanted in the U.S. where he’s accused of orchestrating a massive bribery scheme, won’t be extradited to New York from the Bahamas, the U.K.-based Privy Council ruled.

The Privy Council, the final court of appeal for some British Commonwealth countries, today affirmed a 2010 ruling by a Bahamas court refusing extradition. Kozeny, dubbed “the Pirate of Prague” in media reports, has been sought by U.S. prosecutors since 2005. He also faces unrelated fraud charges in the Czech Republic.

“We have prevailed on all points,” Kozeny, 48, said today in an interview from the Bahamas, which he hasn’t left since 1999.

The unanimous ruling by the five-judge council probably eliminates any chance that Kozeny will be returned to the U.S., where he faces federal charges for organizing a 1998 scheme to bribe government officials in Azerbaijan in return for rights to buy Socar, the state oil company.

Federal prosecutors in New York said he paid millions of dollars and promised billions more to spur the sale. A U.S. businessman, Frederic Bourke, is fighting his 2009 conviction on charges that he conspired with Kozeny. Socar was never sold.

Carly Sullivan, a spokeswoman for U.S. Attorney Preet Bharara in New York, declined to comment on the ruling.

Privy Council
The Privy Council said in a 22-page decision that it lacked jurisdiction to hear the case. It said Kozeny may not be extradited for bribery crimes that “would not constitute offenses against the law of the Bahamas if they took place within the Bahamas.”

The panel didn’t rule on the merits of the U.S. bribery case. The appeal of the prior extradition ruling was pursued by Bahamas prosecutors and supported by U.S. authorities.

Kozeny says the U.S. Foreign Corrupt Practices Act, which outlaws bribes to non-U.S. officials for business, didn’t cover him. U.S. prosecutors say the law applies to Kozeny, who brought American investors into the deal.

After the charges were unsealed in 2005, Kozeny spent 19 months in a Bahamas prison before being released to his family’s seaside estate, from where he’s fought extradition.

Benjamin Brafman, a New York lawyer who represents Kozeny in the U.S., said he doubted Kozeny would ever face charges in New York “unless he decides to come back.” The U.S. case is pending.

Feeling ‘Truly Vindicated’
Kozeny today expressed gratitude toward his lawyers and said he “felt truly vindicated” by the ruling. “They said it’s not a crime in the Bahamas,” he said. “They said it’s not a violation of the code over here.”

Kozeny, who may still face arrest if he leaves the Bahamas, said he will leave it to his lawyers to seek resolution of the charges. “At the most,” he said, the case should be settled with a “$10,000 civil violation.”

“This is obviously not a transaction that I would think about coming close to or repeating,” he said. Still, “it’s not much different from what happens all over the world.”

“It’s very painful to be accused that you crossed the line when you didn’t,” he added.

New York State prosecutors separately have accused Kozeny of stealing hundreds of millions of dollars from his U.S. investors in the Azerbaijan deal. Czech prosecutors have presented evidence to a court trying Kozeny in absentia on charges of embezzling $1.1 billion from mutual funds he established in the Czech Republic in the early 1990s.

A U.S. federal appeals court in December upheld Bourke’s conspiracy conviction. He has asked the Court of Appeals in Manhattan to reconsider and remains free pending the outcome.

The U.S. case is U.S. v. Kozeny, 05-cr-00518, U.S. District Court, Southern District of New York (Manhattan). The U.K. case is Superintendent of Her Majesty’s Foxhill Prison and the Government of the U.S. v. Kozeny, No. 73 of 2010.”

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Douglas McNabb – McNabb Associates, P.C.’s
International Extradition Lawyers Videos:

International Extradition – When the FBI Seeks Extradition

International Extradition – Wire Transfer – Email – Telephone Call

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We previously discussed the extradition treaty between the United States and the United Kingdom here and the extradition treaty between the United States and Bahamas here.

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To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Extradition of Russian Citizen to Face Charges for International Cyber Crimes

January 17, 2012

The Federal Bureau of Investigation (FBI) on January 17, 2012 released the following:

“Nine-Count Indictment Charges Defendants with Stealing Personal and Financial Information and Stock Market Manipulation

Preet Bharara, the United States Attorney for the Southern District of New York, and Janice K. Fedarcyk, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a nine-count indictment charging VLADIMIR ZDOROVENIN and his son, KIRILL ZDOROVENIN, two Russian citizens, with conspiracy, mail fraud, wire fraud, computer fraud, aggravated identity theft, and securities fraud. They were indicted under seal in May 2007. VLADIMIR ZDOROVENIN was apprehended on March 27, 2011, in Zurich, Switzerland, and arrived in New York yesterday following his extradition by Swiss authorities. He will be presented and arraigned before U.S. Magistrate Judge Gabriel W. Gorenstein in Manhattan federal court later today. KIRILL ZDOROVENIN remains at large.

Manhattan U.S. Attorney Preet Bharara said: “Cyber crime is a pandemic that makes geography meaningless. From far away, with the click of a mouse, the cyber criminal can victimize millions of people in the U.S. As alleged, Vladimir Zdorovenin and his son did exactly that; they engaged in serial cyber crimes in Russia that targeted Americans and wrought havoc with their personal and financial information, using it to make phony purchases and to manipulate stock prices. As the unsealing of today’s Indictment demonstrates, we will reach out across the globe, and wait as long as it takes to bring cyber criminals to justice.”

FBI Assistant Director in Charge Janice K. Fedarcyk stated: “Mr. Zdorovenin’s egregious behavior illustrated the true colors of the cyber underground, as he and his son allegedly defrauded consumers of hundreds of thousands of dollars using methods that included compromised credit cards, all fronted through fictitious companies they had created. In addition, Zdorovenin allegedly installed malware to access victims’ brokerage accounts, trading victims’ securities and manipulating the price of stocks Zdorovenin already owned. This should serve as a stark reminder to anyone who believes he can commit cyber crime and hide behind the safety and anonymity of a Russian IP address; you are not beyond the reach of the FBI.”

According to the indictment unsealed today in Manhattan federal court:

At various times between 2004 and 2005, VLADIMIR ZDOROVENIN and his son KIRILL ZDOROVENIN allegedly engaged in a series of crimes in Russia that victimized citizens of the United States through the use of stolen credit card information, multiple phony websites, and bank accounts in Russia and Latvia. Specifically, the indictment alleges that the ZDOROVENINs stole victims’ personal identification information, including credit card numbers, through the use of computer programs that were surreptitiously installed on victims’ computers and that recorded the information as it was entered. The ZDOROVENINs also allegedly purchased stolen credit card numbers from other individuals, and used the stolen credit card information to make what appeared to be legitimate purchases of goods from various Internet businesses that they ran. However, as alleged, the purchases were fraudulent and were used as a means of deceiving banks, credit card service processors, credit card holders, and others, thereby enabling the ZDOROVENINS to steal the money they directed to their websites.

Additionally, as alleged in the indictment, the ZDOROVENINs, used the Internet to unlawfully access the financial services accounts of victims located in the United States and then transferred or attempted to transfer hundreds of thousands of dollars from those accounts to bank accounts under the ZDOROVENINs’ control. Finally, the Indictment charges that after taking over victims’ online brokerage accounts, the ZDOROVENINs bought and sold thousands of shares of certain companies’ stock in an effort to manipulate the prices of those stocks. The ZDOROVENINs allegedly realized profits through this scheme by simultaneously purchasing or selling shares of the same stocks through their own online brokerage account, maintained in the name of Rim Investment Management, Ltd.

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VLADIMIR ZDOROVENIN, 54, of Moscow, Russia, faces a maximum sentence of 142 years in prison in connection with the charges in the indictment. The case has been assigned to U.S. District Judge Paul G. Gardephe.

Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Office of International Affairs in the U.S. Department of Justice’s Criminal Division for its assistance with the extradition.

This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys James J. Pastore, Jr. and Thomas G.A. Brown are in charge of the prosecution.

The charge and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.”

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Douglas McNabb – McNabb Associates, P.C.’s
International Extradition Lawyers Videos:

International Extradition – When the FBI Seeks Extradition

International Extradition – Wire Transfer – Email – Telephone Call

————————————————————–

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Viktor Bout’s Family Seeks Justice in Thailand

August 11, 2011

Ria Novosti (Russia) on August 11, 2011 released the following:

“The family of the alleged international arms trafficker Viktor Bout is hoping that the Thai judicial authorities will rule the decision to extradite him to the United States illegal, his wife Alla Bout said on Thursday.

Bout, 44, who was arrested in a U.S. sting operation in Thailand in 2008 and extradited to the U.S. in November 2010, denies all the charges against him. He could face anything from 25 years to life in prison if convicted.

The Thai Criminal Court in Bangkok is currently reviewing Bout’s extradition case.

“We are seeking justice, and we believe it should prevail,” Alla Bout said in an exclusive interview with RIA Novosti.

Bout’s wife said if the court deems the extradition decision illegal, the Bout family could sue the former and current Thai officials who allowed the extradition. The list includes Thai Cabinet members, Justice Ministry officials and the head of the jail where Bout was held.

“In addition, we will have legal grounds to appeal [Bout’s case] in the UN Human Rights Committee or in the European Court of Human Rights,” she said.

Bout is being held in a New York prison while he awaits trial in the U.S. District Court for the Southern District of New York in October on charges including conspiring to supply arms to terrorist groups and conspiring to kill U.S. nationals.

A U.S. judge recently denied a request to drop the arms trafficking case against Bout and his trial will begin as scheduled, on October 11.”

To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN List Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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