EXTRADITION AND TRANSNATIONAL DEFENSE NEWS

Americans Abroad Accused of Crimes: Rhode Island Man Sentenced to 25 Years in British Virgin Islands

2009-11-10T15:19:00.001-08:00

The AP reports that there was no direct evidence against David Swain, but relied on expert testimony as to how Mr. Swain's wife might have been attacked by Swain while they were scuba diving. November 10, 2009.

Foreign Corrupt Practices Act: Bourke Sentenced to One Year and One Day

2009-11-10T15:14:00.000-08:00

Update. Bloomberg, November 10, 2009. Bourke sentenced to one year and one day and $1 Million Fine.
******

Juror's Views of the Case Against Bourke, see Courthouse News.

"Although Bourke had read the Fortune article about Kozeny's Czech adventure at the time, he decided to invest anyway in Kozeny's scheme to privatize Azerbaijan's state-run oil industry SOCAR by buying vouchers from the country's citizens - and paying off senior officials, all the way up to then-Azeri President Haydar Aliyev. Throughout the trial, Bourke had maintained that he was just one of the many investors in Kozeny's failed scheme that lost his money when it derailed two years later and said he was ignorant of the bribes. However, jurors found there were too many "red flags" for Bourke not to have known."

Editor's Note: Frederic Bourke was convicted on July 10, 2009. New York Times reports:

"Frederic Bourke, a founder of the handbag maker Dooney & Bourke, was convicted Friday of conspiring to pay bribes to government leaders in Azerbaijan in a 1998 oil deal. The federal jury in Manhattan returned its verdict after a monthlong trial. Jurors found that Mr. Bourke conspired with a Czech expatriate, Viktor Kozeny, to pay bribes to the former president of Azerbaijan, Heydar Aliyev, and other leaders. The verdict is a victory for federal prosecutors as they step up enforcement of the Foreign Corrupt Practices Act, which bars payments to foreign officials. Few criminal cases under the law ever go to trial."

Previously posted:
The trial is underway in US District Court, New York. Co-defendant Czech national Viktor Kozeny is currently living in the Bahamas. The US request for Kozeny's extradition was rejected.

The allegations are that Frederic Bourke conspired with Kozeny and others to bribe government leaders in Azerbaijan in a bid to buy the state oil company. Bourke invested $8 million and brought his friend George Mitchell into the deal. Bourke's former Swiss attorney plead guilty and has testified for the prosecution.

OffShore Banking: Swiss Claims that Bank Secrecy is not Dead

2009-11-10T05:26:00.000-08:00

Wall Street Jounal, November 9, 2009. " When UBS, the Swiss bank, agreed in August to hand over some 4,450 names of U.S. account holders as part of a tax settlement between the Swiss and U.S. authorities, it appeared to sound the death knell for banking secrecy in Switzerland – one of the main selling points for the country's financial institutions.

However, Swiss politicians and local bankers said that the agreement did not mean the U.S. authorities would be given information on all the offshore accounts held by Americans in Switzerland. Instead, information would only be supplied when tax authorities from another country had provable evidence of a tax fraud by an offshore account holder. Swiss foreign minister, Micheline Calmy-Rey, was instrumental in negotiating a settlement between the US and UBS."

Bond and Failure to Extradite: Tennessee Court Rules Against Bond Company

2009-11-09T05:15:00.000-08:00

Can a bond company defend forfeiture on the basis that the State refuses to seek extradition? Apparently not, according to a Tennessee Appeals Court: State of Tennessee v Yussuf. In re Radar Bonding Company, Inc.; No. M2008-01161-CCA-R3-CD. Feb. 11, 2009 Session.Nov. 5, 2009. The Court declined to impose an obligation on the State of Tennessee to seek extradition of the defendant from Sweden, or discharge the bond company. It should be noted that the primary reasons discussed in declining to seek extradition for attempted murder were the time and expenses required in submitting an extradition request.

Film: "Comedy of Power", When a Woman Rattles a Man's World of Fraud

2009-11-08T06:46:00.000-08:00

New York Times. "When a Woman Rattles a Man's World of Fraud. “Comedy of Power” is the name of Claude Chabrol’s latest film to be released in the United States, but the phrase could describe much of this director’s work. Though his films tend to be witty and ironical rather than laugh-out-loud funny, they often concern themselves with the behavior and misbehavior — both intimate and public — of the French ruling classes. Criminality plays a large role in Mr. Chabrol’s view of the world, but rather than moralize, he treats his characters with a wry mixture of sympathy and cynicism. " Editors: *****

Extradition: Rule of Specialty Issue May Arise in Saxena Thai Extradition

2009-11-08T05:54:00.001-08:00

The Rule of Specialty generally protects an accused, from extradition on one charge, but prosecution for others. However, in the age of "superseding indictments" and complex fraud investigations, this is a challenging area of international extradition law.

According to the Thai press, an attorney for accused bank embezzler Rakesh Saxena, who was just recently returned from Canada to Thailand, claim that if additional charges are added for prosecution, this would be in violation of the extradition process. The Nation. One question is whether Saxena would have standing in the Thai court to complain or would the complaint have to come from the Canadian Courts?

"The lawyer, who asked to remain anonymous, dismissed a comment by a public prosecutor, who was behind the successful extradition of Saxena, that prosecutors would file 20 more cases against him by notifying the Canadian government first as they are offences of a similar nature.
The lawyer threatened that Saxena would file complaints in a Thai court and with the Canadian government if he were to face legal action in other cases. He said Thai prosecutors could not seek permission from Canada to press other charges against Saxena.

He said the right of the suspect is protected by the treaty that Siam ratified with the United Kingdom (Canada was a part of the British Empire at the time). He must not be pressed with charges other than what is stated in the request for his extradition. "

International Money Laundering: SB 569 will Require More Transparency in Business Formation

2009-11-06T05:43:00.001-08:00

The written testimony of David S Cohen re SB 569. Senate Committee on Homeland Security and Governmental Affairs“Business Formation and Financial Crime: Finding a Legislative Solution”.

SB 569 "A bill to ensure that persons who form corporations in the United States disclose the beneficial owners of those corporations, in order to prevent wrongdoers from exploiting United States corporations for criminal gain, to assist law enforcement in detecting, preventing, and punishing terrorism, money laundering, and other misconduct involving United States corporations, and for other purposes."

Obtaining Foreign Evidence: US Court's Authority to Require Deposition of American Citizen Living Abroad, in the United States

2009-11-06T05:30:00.000-08:00

The case of S.E.C. v. Sabhlok N.D.Cal., October 30, 2009 might be a good starting point for practitioners to understand the jurisprudential underpinnings of a Court's authority to require an American citizen living abroad, to travel to the United States to provide testimony. The Magistrate in the Sabhlok case, ordered an American living in Hong Kong to testify in the United States in a SEC investigation.

"The Walsh Act, 28 U.S.C. § 1783, was enacted in 1926 in order to compel Americans living abroad to return to the United States to testify at a trial in a criminal case, if the testimony was deemed by the court issuing the subpoena to be of sufficient importance. The Supreme Court upheld the statute shortly thereafter, including the provision for contempt for failure to appear, stating: “Nor can it be doubted that the United States possesses the power inherent in sovereignty to require the return to this country of a citizen, resident elsewhere, whenever the public interest requires it, and to penalize him in case of refusal.” Blackmer v. United States, 284 U.S. 421, 437, 52 S.Ct. 252, 76 L.Ed. 375 (1932)The Court further stated: “It is also beyond controversy that one of the duties which the citizen owes to his government is to support the administration of justice by attending its courts and giving his testimony whenever he is properly summoned. And the Congress may provide for the performance of this duty and prescribe penalties for disobedience.”

Extradition: Russian Foreign Minister Pushes for Treaty with US

2009-11-05T04:31:00.000-08:00

On his visit to the United States, Russian Foreign minister urges the United States to enter into an extradition treaty between the two countries. Russian Press.
" Russia has reiterated its proposal to the United States to sign a bilateral extradition agreement, the Russian justice minister said. Although Moscow and Washington agreed in 2007 to draft an agreement on the extradition of crime suspects, further progress on the deal is still pending. "We have reiterated our earlier proposal to the U.S. on the bilateral extradition agreement. In our opinion, it is wrong that countries such as the United States and Russia do not have even a basic normative document on extradition," Alexander Konovalov said after his recent visit to the U.S."

Foreign Trials of US Nationals: 23 Americans Convicted in Italy of Kidnap

2009-11-04T15:49:00.000-08:00

Update: Verdict of Guilty for 23 Americans. New York Times. November 4, 2009. An Italian court has convicted the Americans in abstentia for their role in the kidnap of Nasr, and transport or rendition of Nasr to Egypt, where he claims to have been tortured.

Previous Posts:
Prosecutor Begins Closing Arugment in the CIA Rendition trial in Italy. New York Times September 23, 2009; April 22, 2008 with new link to Mother Jones article, "I was Kidnapped by the CIA". Also, link to article in Congressional Quarterly: The CIA's Odd Man Out." ; Link to the United Nations Convention Against Torture.

Italian news "Nasr, the former head of Milan's main mosque, disappeared from the northern city on February 17, 2003. Prosecutors say he was snatched by a team of CIA operatives with SISMI's help and whisked off to a NATO base in Ramstein, Germany, on board a Gulfstream jet belonging to the Boston Red Sox baseball team. From there, he was taken to Egypt to be interrogated under duress. Nasr, who was under investigation in Italy on suspicion of helping terrorists, was released early last year from an Egyptian jail where he says he was tortured and threatened with rape."

Link to the Council of Europe's report on Extraordinary Rendition.

Extradition: US and Mexico Engage in Talks

2009-11-03T04:20:00.001-08:00

BBC News, November 2, 2009." Mexico's attorney general is meeting his American counterpart in Washington, a day after the US announced a record number of extraditions from Mexico.
Arturo Chavez and US Attorney General Eric Holder are expected to discuss further co-operation in the extradition of suspected criminals to the US. Eleven fugitives were transferred over the Mexican border on Sunday, bringing the total extradited this year to 100. "

Transnational Crime: Former Argentine President and Generals Trial Underway

2009-11-03T03:55:00.001-08:00

New York Times, November 3, 2009. The former President of Argentina is accused of kidnapping and murder.

" A trial began on Monday for Argentina’s last dictator, Reynaldo Bignone, a retired general, as well as for five former generals and two others who are accused of kidnappings and murders that prosecutors say took place in the Campo de Mayo military base.
General Bignone is accused of holding ultimate responsibility for myriad cases of torture, illegal break-ins and deprivations of human rights from 1976 to 1978, before he was appointed president by the military junta in the waning years of the dictatorship.
As president from 1982 to 1983, General Bignone protected the military as Argentina returned to democracy; he granted amnesty to human rights violators and ordered the destruction of documents related to torture and the disappearances of political opponents before he agreed to transfer power to a democratically elected president, Raúl Alfonsín.
Argentina’s courts and Congress later overturned the amnesty, and President Cristina Fernández de Kirchner has made a high priority of prosecuting leaders of the dictatorship. General Bignone was charged in 2003, but the trial was delayed until now. "

Extradition: Accused Submits to Extradition from Malaysia

2009-11-03T03:14:00.000-08:00

The Channelnewsasia Press reports that .....who is facing terrorism charges in the United States, has submitted to extradition. "A Singaporean wanted in the United States on six terrorism-related charges submitted himself on Monday to prison authorities here to await extradition, pending an order by the law minister. District Judge Roy Neighbour ordered Balldev Naidu Ragavan, 47, to be remanded after he ruled there was sufficient evidence for Naidu to answer to the charges he faces in the American courts. "

International Money Laundering: OECD Handbook for Tax Auditors

2009-11-01T04:44:00.000-08:00

This publication Money Laundering Awareness Handbook for Tax Examiners and Tax Auditors, October 2009 is a primer on the mechanics and means to detect money laundering, with a discussion of how money laundering can be carried out through transfers to offshore banks, credit cards as well as international trade.

"In international literature, money laundering through trade is known as ‘Trade Based Money Laundering’. It is seen by various organisations, such as the FATF and the World Customs Organization as a key method to move and/or launder large amounts of money derived from crime. The movement of money can be visible through the payment of expenses and visible or not, by moving money via air transportation, road transportation or by smuggling with goods.
Criminal proceeds often need to be transferred to another country, a criminal transaction must be settled or funds must at some time come back to the criminal. These are reasons for criminals to move capital with the capabilities and constructed legitimacy of international trade. The techniques are discussed hereafter."

Transnational Crime: The Business of Bribery

2009-10-31T08:57:00.000-07:00

Resource of Note, PBS Front Line reports on Montesinos, BAE and more at the Business of Bribery.

Foreign Evidence: Obtaining Injunction in Foreign Court Leads to Obstruction Enhancement

2009-10-31T05:43:00.000-07:00

The Ninth Circuit affirmed the imposition of an enhancement for obstruction, based on the defendant's successful efforts to obtain an injunction in a foreign court to prevent testimony in the US during trial.

U.S. v. Kilbride--- F.3d ----, 2009 , 9th Circuit. .October 28, 2009.

"On June 8, 2007, several days prior to Law’s testimony, Defendant Kilbride filed an action in the courts of Mauritius against Law and other entities, alleging the illegal disclosure of Ganymede documents. He obtained a temporary injunction prohibiting Law and the other respondents from testifying concerning the affairs of Ganymede and related entities and beneficiaries. Kilbride filed his action shortly prior to the time for Law’s scheduled testimony, despite the fact that the Ganymede documents at issue in the action were obtained by the Government in 2005, and had been disclosed in discovery, and the fact that the the description of the events underlying the application of the obstruction of justice enhancement are drawn from the district court’s findings at sentencing, which are uncontested by Defendants.

Government had made arrangements in May 2007 for Law to travel and testify. In addition, in filing the action, Kilbride asserted an interest in Ganymede in contradiction to his attempts at trial to distance himself from Ganymede. Law subsequently declined to testify out of fear that he would be held in contempt in Mauritius. On June 11, 2007, in light of the injunction, the Government filed an emergency motion requesting that the district court enter a protective order determining the scope of Law’s testimony. When confronted by the district court at a hearing on the matter, Kilbride’s trial counsel agreed to take action that eventually led to the lifting of the injunction as to Law, allowing Law to testify. Rejecting Kilbride’s explanations for obtaining the order, the district court found that Kilbride filed the action as an intentional tactical maneuver to prevent Law from testifying and, therefore, merited application of the obstruction of justice enhancement. "

Extradition: Will Jamaica Extradite Alleged Crime Boss?

2009-10-30T05:12:00.000-07:00

The opposition party in Jamaica accuses the Government of delaying extradition of accused drug crime boss to the United States. The Olympian.

Foreign Evidence: Pitfalls of Cross Border Investigations

2009-10-29T04:44:00.000-07:00

Law.com October 28, 2009.

Extradition: New EU-US Treaty Signed on Mutual Legal Assistance

2009-10-29T01:46:00.000-07:00

Update: Attorney General Holder Speaks at EU/US Justice and Home Affairs Ministerial Meeting for Signing of Agreement: Washington, D.C. ~ Wednesday, October 28, 2009 (excerpt)

" The extradition agreement will modernize the existing bilateral extradition treaties with each of the Member States, in many cases replacing lists of offenses that are deemed extraditable with a dual criminality standard.

The mutual legal assistance agreement contains cutting edge provisions for future legal cooperation. These include authority:

to identify the existence of bank accounts associated with the subjects in the other’s jurisdiction in terrorism and other serious crimes,
to conduct joint task forces across national lines directed against terrorism and serious crime cases rather than merely "coordinating’ inquiries;
to obtain assistance in administrative matters that may lead to criminal investigations in matters involving terrorism and serious crimes;
to acquire evidence, including testimony, by means of video conferencing,
to use data acquired via the agreement for additional serious offenses other than just the one triggering the initial request.
But beyond their important practical value, these treaties symbolize the joint resolve of Europe and the United States to fight terrorism and transnational crime."

* * *

Previously posted:

The US and the European Union will sign a treaty on October 28, 2009, which will facilitate the extradition for serious crimes, prevent the imposition of the death penalty for extraditions to the US, and provide for information sharing. European Voice.

Offshore Banking: Former UBS Client Receives Home Detention

2009-10-28T16:30:00.000-07:00

USA Today October 28, 2009. " Steven Michael Rubinstein, the first American client of Swiss banking giant UBS charged in this year's federal crackdown on offshore tax evasion, was sentenced to one year of house arrest Wednesday."

Extradition: Defendant Brought under New Latvia Treaty

2009-10-27T03:10:00.000-07:00

Update: A Cuban national extradited from Latvia, has now been arraigned in US District court in Las Vegas. The charges related to the sale of counterfeit slot machines, LasVegasSun.

Previously posted.

"On 15 April, Foreign Minister Maris Riekstins and the Chargé d'Affaires of the U.S. Embassy in Latvia, Bruce Rogers, signed a protocol to exchange ratification instruments regarding the Treaty on Extradition between the Republic of Latvia and the United States of America. With the formal signing of the protocol, the series of internal procedures that had progressively been carried out have now been concluded so that the 7 December, 2005 Treaty on Extradition between Latvia and the U.S. can come into force. "

Extradition: Federal Court Judge in Pa.Dismisses Appeal re Peru

2009-10-25T03:58:00.000-07:00

Update: A federal judge has dismissed the habeas petition citing evidence, which supports probable cause. Philly.com

Update: Federal Court issues emergency stay while Petition for Habeas Relief is litigated.
Pennlive.com
Editor's Note: Because federal statutes do not provide for direct appeal of certification for extradition, an accused who seeks to prevent extradition must seek relief in the form of a writ of habeas corpus.
Previously Posted: Extradition has been certified in the case of an American charged with murder in Peru. July 15, 2009. Penn Live.com The defendant is alleged to have traveled to Peru, and after having killed his wife Jana Claudia Gomez, to have disposed of her body in a suitcase. The suitcase was later washed ashore. Peruvian authorities submitted emails between the defendant and a second woman, with whom the defendant was having a romantic relationship.

Extradition: Mexico Supreme Court Authorizes Extradition of Felix Arellano

2009-10-24T05:43:00.000-07:00

The Latin American Herald reports that the Supreme Court of Mexico has rejected the appeal of accused drug trafficker Felix Arellano, and has authorized his extradition to the United States. According to the LAH, the appeal was grounded on a claim that the US-Mexico Extradition Treaty had never been signed by the President of Mexico.

Transnational Crime: US arrests more than 300 Accused of Participating in Mexican Drug Trafficking Organization

2009-10-23T05:44:00.000-07:00

The US Department of Justice coordinated the arrests of more than 300 individuals in 19 states, accused of participating in a Mexican drug trafficking organization, La Familia. New York Times.

"Calling it the largest strike ever undertaken against a Mexican drug cartel, Attorney General Eric H Holder announced the arrests of 303 people in the past two days, the latest action in a four-year investigation."

International Money Laundering: Venezuela Deports Colombian to US to Face Money Laundering Charges

2009-10-23T05:26:00.000-07:00

According to the Associated Press October 23, 2009, Venezuela has deported a Colombian accused of money laundering in the United States.

"A Colombian man with links to a pyramid scheme that bilked Colombians out of hundreds of millions of dollars was deported by Venezuela on Thursday to the United States, where he is wanted on money-laundering charges. Venezuelan authorities took Luis Cediel to Caracas' main airport for the flight to the U.S. Justice Minister Tareck El Aissami said Cediel would be handed over to the U.S. Drug Enforcement Administration."

"The Colombian was indicted by U.S. authorities in New York earlier this year along with three co-defendents, accused of coordinating the collection of millions of dollars in drug proceeds in Mexico City beginning in February 2008."

"The indictment unsealed in March says Cediel worked primarily out of Mexico for DMG Group Holdings SA, a business that promised fantastic interest rates but collapsed last November, prompting hundreds of angry investors to storm the company's office in Colombia. Authorities arrested DMG's principals and shuttered the company."