Two Defendants Charged in Connection with Alleged Multimillion-Dollar Investment Fraud Scheme

Two individuals were charged in an indictment filed today for their alleged roles in a multimillion-dollar scheme involving purported investments in a start-up financial technology company.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Halsey B. Frank of the District of Maine, Special Agent in Charge Joseph Bonavolonta of the FBI’s Boston Field Office and Special Agent in Charge Kristina O’Connell of the IRS Criminal Investigation (IRS-CI) in Boston made the announcement.

Michael A. Liberty, 58, of Windermere, Florida, and Paul E. Hess, 63, of Braintree, Massachusetts,

were each charged in an indictment filed in the District of Maine with one count of conspiracy to commit wire fraud, four counts of wire fraud and one count of securities fraud. In addition, Liberty was charged with one count of conspiracy to commit money laundering and three counts of money laundering.

The indictment alleges that, beginning in 2010, Liberty and Hess solicited investments in Mozido, a privately held financial technology start-up company that offered users an ability to make payments using their mobile phones. Liberty and Hess allegedly raised millions of dollars from investors telling them, among other things, that their money would be used to fund Mozido’s business operations and that Hess was not being paid to raise the money. The indictment alleges that a substantial amount of the money did not go to Mozido, that a portion of the money was diverted to pay Liberty’s personal expenses, and that Hess received commissions and other payments in return for the money he raised from investors.

The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI’s Portland, Maine Resident Agency and IRS-CI are investigating the case. Trial Attorneys Michelle Pascucci and Matthew Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Donald Clark of the District of Maine are prosecuting the case.

Individuals who believe they may be a victim in this case should contact the Victim Witness Services Unit of the U.S. Attorney’s Office for the District of Maine at (207) 780-3257 for more information.

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https://www.justice.gov/opa/pr/two-defendants-charged-connection-alleged-multimillion-dollar-investment-fraud-scheme

75 Individuals Charged With Drug Trafficking In Puerto Rico Project Safe Neighborhoods Enforcement Effort

SAN JUAN, Puerto Rico –

Victor Rivera-Galindez, a.k.a. “Bin Laden”; Luis B. Louzao, a.k.a. “Panda/Benji”;

Ivette M. Rosado-Pantojas, a.k.a. “La Pata/ISIS”

The indictment alleges that beginning in or about the year 2006, the organization distributed crack, heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Villa Kennedy, Las Casas, El Mirador and

Las Margaritas Public Housing Projects, and other areas, and within 1,000 feet of schools and playgrounds located in the Municipality of San Juan, Puerto Rico, all for financial gain and profit.

The object of the conspiracy was the large-scale distribution of controlled substances for significant financial gain and profit.

Members of the organization also possessed and distributed kilogram quantities of controlled substances, mainly cocaine, in Puerto Rico, for further distribution in the continental United States.

This drug trafficking organization was known as “Las FARC,” (Las Fuerzas Armadas Revolucionarias de Cantera).

Las FARC operated out of Barrio Obrero Ward, including but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about the year 2006.

The goal of Las FARC was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.

The 75 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, runners, suppliers, enforcers, drug processors, sellers, and facilitators. Twenty-seven defendants are also charged with possession of firearms in furtherance of a drug trafficking crime.

https://www.justice.gov/usao-pr/pr/75-individuals-charged-drug-trafficking-puerto-rico-project-safe-neighborhoods