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Showing posts with label US Grand Jury. Show all posts
Showing posts with label US Grand Jury. Show all posts

Former F.B.I. Agent Sues, Claiming Retaliation Over Misgivings in Anthrax Case

 

By SCOTT SHANEAPRIL 8, 2015
  WASHINGTON — When Bruce E. Ivins, an Army microbiologist, took a fatal overdose of Tylenol in 2008, the government declared that he had been responsible for the anthrax letter attacks of 2001, which killed five people and set off a nationwide panic, and closed the case.
Now, a former senior F.B.I. agent who ran the anthrax investigation for four years says that the bureau gathered “a staggering amount of exculpatory evidence” regarding Dr. Ivins that remains secret. The former agent, Richard L. Lambert, who spent 24 years at the F.B.I., says he believes it is possible that Dr. Ivins was the anthrax mailer, but he does not think prosecutors could have convicted him had he lived to face criminal charges.
In a lawsuit filed in federal court in Tennessee last Thursday, Mr. Lambert accused the bureau of trying “to railroad the prosecution of Ivins” and, after his suicide, creating “an elaborate perception management campaign” to bolster its claim that he was guilty. Mr. Lambert’s lawsuit accuses the bureau and the Justice Department of forcing his dismissal from a job as senior counterintelligence officer at the Energy Department’s lab in Oak Ridge, Tenn., in retaliation for his dissent on the anthrax case.
The anthrax letters were mailed to United States senators and news organizations in the weeks after the Sept. 11, 2001, terrorist attacks, causing a huge and costly disruption in the postal system and the federal government. Members of Congress and Supreme Court justices were forced from their offices while technicians in biohazard suits cleaned up the lethal anthrax powder. Decontamination costs nationwide exceeded $1 billion. At least 17 people were sickened, in addition to the five who died.
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The bureau’s investigation, one of the longest-running and most technically complex inquiries in its history, has long been seen as troubled. Investigators initially lacked the forensic skills to analyze bioterrorist attacks. For several years, agents focused on a former Army scientist and physician, Dr. Steven J. Hatfill, who was subsequently cleared and given a $4.6 million settlement to resolve a lawsuit. Reviews by the National Academy of Sciences and the Government Accountability Office faulted aspects of the F.B.I.’s scientific work on the case.
Photo

The late Bruce Ivins in 2003, when he was a microbiologist at Fort Detrick, Md.CreditSam Yu/Frederick News Post, via Assocaited Press
Mr. Lambert, who was himself criticized for pursuing Dr. Hatfill for so long, has now offered, in his lawsuit and in an interview, an insider’s view of what hampered the investigation.
“This case was hailed at the time as the most important case in the history of the F.B.I.,” Mr. Lambert said. “But it was difficult for me to get experienced investigators assigned to it.”
He said that the effort was understaffed and plagued by turnover, and that 12 of 20 agents assigned to the case had no prior investigative experience. Senior bureau microbiologists were not made available, and two Ph.D. microbiologists who were put on the case were then removed for an 18-month Arabic language program in Israel. Fear of leaks led top officials to order the extreme compartmentalization of information, with investigators often unable to compare notes and share findings with colleagues, he said.
Mr. Lambert said he outlined the problems in a formal complaint in 2006 to the F.B.I.’s deputy director. Some of his accusations were later included in a report on the anthrax case by the CBS News program “60 Minutes,” infuriating bureau leaders.
The F.B.I., which rarely comments on pending litigation, did not respond to requests for comment on Mr. Lambert’s claims.
Although the lethal letters contained notes expressing jihadist views, investigators came to believe the mailer was an insider in the government’s biodefense labs. They eventually matched the anthrax powder to a flask in Dr. Ivins’s lab at Fort Detrick in Maryland and began intense scrutiny of his life and work.
Photo

The police in Frederick, Md., spoke with a woman they identified as Diane Ivins, the wife of Bruce E. Ivins, 62, at the couple's home in Frederick, Md., in 2008. CreditRob Carr/Associated Press
They discovered electronic records that showed he had spent an unusual amount of time at night in his high-security lab in the periods before the two mailings of the anthrax letters. They found that he had a pattern of sending letters and packages from remote locations under assumed names. They uncovered emails in which he described serious mental problems.
The investigators documented Dr. Ivins’s obsession with a national sorority that had an office near the Princeton, N.J., mailbox where the letters were mailed. They detected what they believed to be coded messages directed at colleagues, hidden in the notes in the letters.
As prosecutors prepared to charge him with the five murders in July 2008, Dr. Ivins, 62, took his own life at home in Frederick, Md. Days later, at a news conference, Jeffrey A. Taylor, then the United States attorney for the District of Columbia, said the authorities believed “that based on the evidence we had collected, we could prove his guilt to a jury beyond a reasonable doubt.”

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But Mr. Lambert says the bureau also gathered a large amount of evidence pointing away from Dr. Ivins’s guilt that was never shared with the public or the news media. Had the case come to trial, he said, “I absolutely do not think they could have proved his guilt beyond a reasonable doubt.” He declined to be specific, saying that most of the information was protected by the Privacy Act and was unlikely to become public unless Congress carried out its own inquiry.
After retiring from the F.B.I. in 2012, Mr. Lambert joined the Energy Department. But an F.B.I. ethics lawyer ruled that because Mr. Lambert had to work with F.B.I. agents in his new job, he was violating a conflict-of-interest law that forbade former federal employees from contacting previous colleagues for a year after they had left their government jobs.
That ruling led to his dismissal, Mr. Lambert said, and he has not been able to find work despite applying for more than 70 jobs. His lawsuit asserts that several other former F.B.I. agents were able to take identical intelligence jobs with the Energy Department and that he was singled out for mistreatment.





























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Seeno company charged with bank fraud; judge criticizes family members for not attending hearing

CONCORD -- Six years after federal agents raided the Seeno homebuilder headquarters, a visibly annoyed federal judge on Friday excoriated family members for failing to attend a hearing where one of their companies was expected to plead guilty to criminal bank fraud charges. PG_mcfadden

 

 

 

 

Judge Yvonne Gonzalez Rogers refused to agree to the plea deal because she said she did not have enough evidence to accept a fine and restitution of $11 million for Discovery Sales. Earlier in the day, the company was formally charged for its role in the "builder bailout" scam that allowed the Seeno companies to continue selling properties at high prices during the housing market downturn by obtaining mortgages for homebuyers through illegal means.

Gonzalez Rogers focused her ire on the absence at the plea hearing of Discovery Sales President Albert Seeno III, who along with his father, Albert Seeno Jr., operates a Bay Area homebuilding empire.

"It's his company, and he's not here to take responsibility for what his company has done?" the judge asked two attorneys representing the Seeno company. "I find that a little odd. I don't find it particularly appropriate."

Gonzalez Rogers, who in recent years accepted plea deals from three former Seeno employees implicated in the scam, said she would not "rubber stamp" the agreement that would spare Seeno family member from individual criminal charges.


"The American people, rightly so, are very frustrated with the conduct which was criminal ... which led to the financial disaster in this country," the judge said. "(Seeno III) shows an unwillingness to publicly take accountability for his company's actions, and that says something for me whether the company is entitled (to the agreed-upon fine)."

In its plea agreement, the Seeno company acknowledged that through incentive programs, mortgage payment assistance and other means it fraudulently got banks to approve loans for unqualified buyers. In some cases, the homes were worth less than their inflated loans at the time of purchase.

Gonzalez Rogers asked why Seeno III was not charged.

"In the judgment of the U.S. Attorney's Office ... we don't have sufficient evidence to convict (Seeno III)," Assistant U.S. Attorney John Hemann said.

Seeno's attorneys, who declined to comment outside court, told the judge that company officials are not required to appear at such plea agreements and reminded her that not all the homes sold by Discovery Sales during that period were involved in the scheme.

The agreement, if approved, would end the six-year investigation that netted indictments against three company employees and a half dozen Seeno associates. As a result of the homes they sold through the bailout scheme, the Seenos continued receiving large lines of credit from banks to remain operational.

"It allowed Discovery to stay in business over a difficult economic period in time," Hemann told the judge. "They staved off what was potentially bankruptcy or an enormous loss."

During a 16-month period in 2008 and 2009, when the alleged scam transpired, various Seeno companies opened at least $1.24 billion in construction lines of credit, according to an investigation by this newspaper.

More than 325 Seeno and Discovery homes sold from 2006 to 2008, exceeding $200 million in sales, used a series of illegal schemes, according to the charging document. The total loss is estimated at $75 million, but despite the bank fraud charge, Wells Fargo and JP Morgan Chase -- the two preferred lenders of Discovery Sales -- were hardly innocent victims, Hemann said.

"In this case, the banks are not fully without blame," Hemann said. "Wells Fargo made a lot of money. In fact, it may not have lost money at all through their relationship with Discovery Sales, and the same with JP Morgan Chase."

Prosecutors allege Wells Fargo and JP Morgan Chase would issue the loans, receive origination fees and quickly sell the loans, which would continue being sold and eventually packaged in securities.

"Everyone was making money gaming the system, or at least trying to do so: the builders, the buyers, the real estate agents, the mortgage brokers and the originating banks, and the banks who securitized the bad loans," Hemann wrote in his sentencing memorandum.

"The losers are way downstream and essentially the American people," Hemann told the judge.

Seeno attorney William Goldman told the judge that determining the actual losses in this case would be difficult and time-consuming because tracing the loans as they went deeper downstream was "basically impossible."

As part of the tentative agreement, the Seenos had agreed to pay $3 million in restitution to Fannie Mae and Freddie Mac, two taxpayer-sponsored financial services companies, according to court documents. Discovery Sales will also be placed on probation for five years.

Two of three former Seeno employees who cooperated with FBI investigators have yet to be sentenced for their guilty pleas as part of this scheme. In February, Jason Sterlino was sentenced to six months in prison for what Hemann called "minor fraud" done to further the scheme.

Former Discovery Sales Vice President Ayman Shahid and sales executive Carey Hendrickson have also pleaded guilty and were supposed to be sentenced this month, but their attorneys said those hearings have been postponed.

Contact Matthias Gafni at 925-952-5026. Follow him at Twitter.com/mgafni.

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