Bankrupt Banker

Sara Shea, 30, who admitted money laundering, was jailed for two years by Liverpool Crown Court.

Shea sashayed through Liverpool society draped head-to-toe in designer labels alongside her husband Keith, 36, a bullet-headed gangster who moved drugs worth millions around the country. In two years they spent £100,000 on his and hers diamond-encrusted watches, thought nothing of blowing £850 on Cristal champagne, and were planning a move to an £800,000 mansion in Caldy, Wirral, known as Footballers' Row. Sara Shea, 30, who admitted money laundering, was jailed for two years by Liverpool Crown Court. The judge said he hoped that the sentence would deter other families of criminals from encouraging and supporting their activities. “Your husband was a drug trafficker on a huge scale yet you chose to turn a blind eye and to ask no questions,” David Harris, QC, said. Shea's life of luxury ended in June 2007 when her husband was arrested in the act of moving cocaine and Ecstasy with a street value of £4.5 million. He was convicted of drug trafficking and jailed for 15 years. When police raided their home in Wallasey, Merseyside, they recovered a Scorpion machine pistol and other firearms but were astonished by the treasure trove of goods amassed from the world's fashion houses. Officers found boxes of Rolex, Patek Philippe and Chopard watches and Christian Dior and Chanel jewellery worth hundreds of thousands of pounds scattered from room to room. All had been bought in cash so as not to leave a paper trail. Stuffed into a cupboard were designer handbags worth £12,000. <blockquote>Detectives pieced together a life of spending, with holidays in Monte Carlo, Mexico and Marbella. A photograph showed the couple enjoying a honeymoon stroll on a beach beside the Sandy Lane Hotel in Barbados. Flights alone cost £12,500. They once took a chauffeur-driven Mercedes from their home to Claridge's in London where they spent £6,000 on a weekend stay. The bill for a meal at the Oxo Tower came to £1,095. </blockquote> Merseyside Police hope that the prosecution of drug dealers' partners will send out a message that officers will pursue not only criminals but their wives and wider families who have been happy to enjoy the fruits of their criminality. Diane Smith, 52, the lover of another drug trafficker, Silvano Turchett, has already been given a 45-week prison sentence, suspended for two years, on a similar charge of looking after watches worth £42,000 for her boyfriend. Detective Constable Elaine Moore, in charge of the money-laundering inquiry codenamed Operation Rockwood, said that the police were determined to strip the couple of the proceeds of crime, even if they had to wait until Shea was released from prison. “We want to show that crime does not pay,” she said. “Instead of going to a restaurant at the top of the Oxo Tower, Shea is now eating off a tin plate ... Anybody, whether family member or partner, should remember one thing – Merseyside Police will be relentless in hunting them down and bringing them to justice.” The Sheas' detached home, with its wall-mounted Bang & Olufsen television in the steam room, has long been repossessed, along with their collection of high-performance cars. A forthcoming confiscation case is expected to strip the couple of their remaining fortune. Shea made it clear to the court before she was jailed that she intended to divorce her husband and find a job on her release. She worked in Debenhams in the run-up to her court appearance. Merseyside Police have seized more criminals' assets than any other force apart from the Metropolitan Police, securing nearly £5.5 million cash and confiscating goods worth £12 million in the past two years. <blockquote>The ill-gotten gains Among the items found at the Sheas' home was a collection of designer handbags worth £12,000 The couple once took a chauffeur-driven Mercedes from their home to Claridge's in London where they spent £6,000 on a weekend stay and a meal in Gordon Ramsay's in-house restaurant They ran up a £1,095 bill at the Oxo Tower restaurant in Central London, including £850 on a bottle of Cristal champagne On their driveway stood a £110,000 Aston Martin, a £46,500 4x4 BMW X5 and a Range Rover They took guests to £5,000 hospitality packages at the Open golf at Hoylake, rock concerts at the MEN Arena and other events Shea was arrested before they took a £33,000 cruise to the World Cup cricket in Barbados and a grand prix trip to Monaco for which a £6,000 cash deposit was paid They spent £100,000 on his and hers watches that were encrusted with diamonds. Police officers also found boxes packed full of Rolex, Patek Philippe and Chopard watches </blockquote>

Sara Shea, 30, who admitted money laundering, was jailed for two years by Liverpool Crown Court.

Shea sashayed through Liverpool society draped head-to-toe in designer labels alongside her husband Keith, 36, a bullet-headed gangster who ...

Lawrence B. Salander, 59, owner of the now-defunct Salander-O'Reilly Galleries, was indicted on multiple charges

Lawrence B. Salander, 59, owner of the now-defunct Salander-O'Reilly Galleries, was indicted on multiple charges, including grand larceny, securities fraud, forgery, criminal possession of a forged instrument, falsifying business records and perjury. He defrauded 26 victims, Manhattan District Attorney Robert Morgenthau said in a statement."Salander stole from his victims in two primary ways: He sold artwork not owned by him and kept the money, and lured investment money in fraudulent investment opportunities," Morgenthau said.In other cases, Salander inflated the estimated cost of artwork, oversold shares in works, claimed to own works he did not, and misrepresented or failed to pay the full return on sales when money came in, authorities said.In one instance, to secure a $2 million personal loan from Bank of America, Salander offered pieces owned by others, including McEnroe, as security by providing phony documents to establish that he and his wife owned the art, Morgenthau said.Salander's lawyer Charles Ross told CNN affiliate NY - One that his client is trying to raise money for bail, which was set at $1 million."He has been aware that there is an investigation for quite some time and he has prepared for this day," Ross told NY - One. "And as I said, he entered a not-guilty plea and we're gonna fight the charges." The scheme funded a lifestyle that included trips to Europe by private jet, and the purchase of a Manhattan townhouse and a 66-acre estate in upstate New York, officials said.Salander's indictment points to dealings dating to 1994. If convicted, he would face up to 25 years in prison for grand larceny and additional time for other charges.Salander-O'Reilly Galleries went bankrupt in 2007 after more than 30 years of operation.

Lawrence B. Salander, 59, owner of the now-defunct Salander-O'Reilly Galleries, was indicted on multiple charges

Lawrence B. Salander, 59, owner of the now-defunct Salander-O'Reilly Galleries, was indicted on multiple charges, including grand larcen...

Brent Mueller, of Edmond, had pled guilty to failing to report the illegal taking of $1 million from Oklahoma City’s Quest Resources Corporation.

Brent Mueller, of Edmond, had pled guilty to failing to report the illegal taking of $1 million from Oklahoma City’s Quest Resources Corporation.Mueller is the former purchasing director for Quest. In court, Mueller admitted that in the summer of 2008, he learned that a now former senior Quest executive had illegally wired $1 million out of Quest to use for personal investment in Oklahoma Hydrogen Gas Technologies.Upon learning of that illegal conduct Mueller admitted he took several steps to cover up that crime, including lying to Oklahoma Hydrogen about the source of the investment and trying to recover the $1 million to prevent Quest from learning about it, court officials said.Mueller also finds himself a defendant in a lawsuit filed by Quest earlier this month in Oklahoma County District Court. The suit also names David E. Grose, of Edmond, among others. It sought an asset freeze and damages related to the kickbacks and the misappropriation.Grose, Quest’s former chief financial officer, also is a defendant in a lawsuit filed last month in Oklahoma County District Court by the Oklahoma Department of Securities. The lawsuit alleges that Grose directly participated and/or materially aided Jerry Cash, the company’s former chief executive offer, in connection with the unauthorized transfer of $10 million to an entity controlled by Cash. The lawsuit alleges that Grose and Mueller received kickbacks from several related suppliers during a two-year period. The lawsuit also alleges that in the third quarter of 2008, Grose and Mueller engaged in the direct theft of $1 million for their personal use. Bill Price, Mueller’s attorney, said he does not comment on pending litigation.James McMillin, Grose’s attorney, also declined comment for the same reason. In court, Grose stated that because there was an ongoing investigation, he invoked his Fifth Amendment privilege against self incrimination.Mueller will be sentenced in about 90 days. He faces up to three years in prison and, as part of the plea agreement, he must pay restitution to the victims of his crime. Dan Webber, Cash’s attorney, said his client asserts that he is innocent until proven guilty. Webber said Cash is working with the Oklahoma Securities Commission to clarify the underlying facts.Webber said Cash is not connected to the kickback scheme associated with Grose and Mueller.According to court papers, Grose has 25 years of financial experience, primarily in the exploration, production and drilling sectors of the gas and oil industry, and his positions with Quest and Quest Energy included CFO and principal accounting officer.Grose and Mueller entered a conspiracy with defendant Rodger H. Brooks in which they would place orders for Quest to buy pipe from Brooks’ companies — Reliable Pipe and Equipment, Mid Continent Pipe and Equipment, RHB Global and RHB, the Quest lawsuit alleges. Grose and Mueller would mark up the price of the pipe and they would split the amount.Grose received about $850,000 in kickbacks and Mueller about $860,000, Quest alleges. Grose and Mueller used the kickbacks and funds they wrongfully converted and fraudulently obtained for their personal use and to support an extravagant lifestyle, including the purchase of homes, boats and cars, Quest alleges. Attempts to identify Brooks’ attorney by press time were not successful. Beginning in at least 2005, Cash caused Quest money to be transferred to a bank account in the name of Rockport Energy, the Oklahoma Securities Commission lawsuit alleges. Grose allegedly assisted Cash with the transfers into the Rockport account by authorizing and/or effecting the wire transfers. By July 2008, transfers to the account from Quest totaled $10 million.Cash had sole signatory authority over the Rockport account, and he allegedly spent the Quest money from the account for personal expenses and/or other business activities not related to Quest.To create the illusion that the money transferred to Rockport Energy was returned to Quest, Cash directed a series of suspicious financial transactions between the two companies, the lawsuit alleges.Specifically, on or within a day of the end of each Quest fiscal quarter, Cash allegedly issued a check drawn on the Rockport account, made payable to a Quest entity. The check would then be deposited into the bank account of the payee. At all times, the balance on the Rockport account at the time each check was issued contained insufficient funds, according to court papers. The balance on the account rarely exceeded $2,000.Within days of the end of each Quest fiscal quarter, Cash directed that Quest funds, in an amount identical to the amount of the recent check from Rockport Energy, be wired to the Rockport account enabling each of the account checks to clear the bank.Grose directly participated in the fraudulent quarter-end transactions by authorizing and/or effecting the wire transfers from Quest to the Rockport account, the Oklahoma Securities Commission alleges. The transactions between Rockport Energy and Quest were not disclosed in filings by Quest with the Securities and Exchange Commission, court papers show.

Brent Mueller, of Edmond, had pled guilty to failing to report the illegal taking of $1 million from Oklahoma City’s Quest Resources Corporation.

Brent Mueller, of Edmond, had pled guilty to failing to report the illegal taking of $1 million from Oklahoma City’s Quest Resources Corpora...

Sentenced Ahmad Kanan, 37, of Essex Junction to 37 months' imprisonment for bank, wire and tax fraud

Sentenced Ahmad Kanan, 37, of Essex Junction to 37 months' imprisonment for bank, wire and tax fraud, according to a news release from t...

Agency liquidating Bernard Madoff’s brokerage says the $2.6 billion it has on hand is enough to satisfy all legitimate claims by victims of the money

<blockquote>“I have confidence there is sufficient money at SIPC to satisfy all claims,” he said in a phone interview.</blockquote> Agency liquidating Bernard Madoff’s brokerage says the $2.6 billion it has on hand is enough to satisfy all legitimate claims by victims of the money manager’s $65 billion Ponzi scheme. The Securities Investor Protection Corp. is using a formula that investors may challenge in court. The agency has the money in an industry-financed fund and from recovered assets to reimburse Madoff’s 5,000 customers to the maximum allowed by its charter, Stephen Harbeck, SIPC president, said in an interview. The SIPC has $1.6 billion in a fund designed to reimburse customers as much as $500,000 on lost investments, plus $1 billion recovered by brokerage trustee Irving Picard from Madoff firm bank accounts and desk drawers, Harbeck said. Madoff, 70, is in jail facing a 150-year sentence after pleading guilty March 12 to using money from new investors to pay off old ones in a global fraud that snared investors as varied as filmmaker Steven Spielberg and New York University. Prosecutors are seeking $170 billion in forfeitures from him, representing funds that flowed through his company. They have identified more than $100 million of his houses, cars, boats and jewelry they intend to seize. Some Madoff investors are up in arms about SIPC’s decision, announced by Picard at a Feb. 20 creditors’ meeting, to limit victim claims to “net equity” -- cash invested minus sums taken out. That formula ignores profit reported on customer brokerage statements for the past 20 years, gains that were fictitious because Picard found no evidence Madoff had made any trades or profits going back decades. Customers paid taxes on those phantom profits and “legitimately expected” that they owned the securities listed in official brokerage statements, said Helen Chaitman, a Madoff victim and lawyer with Phillips Nizer LLP who is advising 350 investors in the fraud without charge. The Securities Investor Protection Act, passed in 1970 to safeguard investor accounts and maintain confidence in the market, encourages SIPC to honor customers’ “reasonable expectations” by compensating them for lost profit as well as principal, said Chaitman, other victims and legal experts. In a similar case, involving a fraud at bankrupt New Times Securities Services Inc., a federal judge in New York, where Madoff’s firm is based, ordered SIPC in 2002 to pay $500,000 to customers whose statements reported nonexistent trades by actual mutual funds. An appeals court reversed that ruling in a 2004 precedent that Picard relies on. “Picard is behaving like a true insurance representative,” said Chaitman, who said she lost her “entire retirement” by investing with Madoff. “SIPC is being creative about not having to pay people the money to which they’re entitled.” Groups of victims and their lawyers are debating whether to seek a declaratory judgment in court that Picard is misinterpreting the law or a lawsuit to bar him from using his current formula to pay claims, said Lawrence Velvel, a customer who is dean of the Massachusetts School of Law. “There will be challenges to what Picard is doing,” said Velvel, who said he lost “a large chunk of savings” in the Ponzi scheme. “The only question is timing.” <blockquote>The Biondi family partnership, which lost “under $1 million” with Madoff, hasn’t filed a claim with SIPC yet, said Adriane Biondi, 41, who lives with a friend in Florida after losing all her money. “We need to understand our strategies,” said Biondi, part of a group being advised by Chaitman. </blockquote> Leading Precedent In the New Times case, a federal district court said investors were entitled to maximum $500,000 payments from SIPC if statements reflected investments in genuine mutual funds, while customers whose records cited fictitious mutual funds were only entitled to $100,000, the SIPC limit for cash initially invested. In its 2004 ruling, the federal appeals court disagreed, finding customers should get back money they invested and not “artificial” returns reported in “fictitious account statements.” It adopted an argument by the U.S. Securities and Exchange Commission, which exercises oversight, that SIPC would be “unacceptably exposed” if it had to pay customers “arbitrary amounts that necessarily have no relation to reality.” Biondi said she understood SIPC protection as a form of insurance that covered her family partnership losses. “Now they’re going to deduct money from my claim,” she said. “If you were to pay her based on fictitious, phony profits, there would be less money to distribute to someone who has lost principal,” Harbeck said. To date, Picard has authorized payments to 12 claimants of $500,000 each, according to his Web site, www.madofftrustee.com. Chaitman asked Picard and Harbeck, in a March 26 e-mail, “that you post on your Web site on a daily basis the number of claims that you have received, the number of claims you have processed, and the amount of funds SIPC has paid out.” <blockquote>“In view of the desperate financial circumstances of many of the investors, we would like to know your position on establishing an expedited procedure for paying investors the sums to which they are entitled,” she said in the e-mail. </blockquote> Sharon Lissauer, a multilingual former model for Leggs Pantyhose who lost her savings from modeling and her inheritance from her mother in a Madoff account, is seeking work to pay her bills while waiting for a letter from Picard that will entitle her to some payment. “There’s been no letter yet,” she said. “Modeling is slow, and I’m having trouble paying my bills.” Jonathan Landers, a lawyer with Milberg LLP, which represents more than 70 victims, said he’ll probably wait until Picard rejects a client’s claim before taking legal action. Courts are reluctant to render advisory opinions and “often get bogged down in questions of whether the case is ripe for decision,” he said. “We are going to wait until we have an actual case with a flesh and blood person to present to the court,” he said. “The court will then face the issue squarely.” He isn’t planning a group lawsuit, or class action, although some groups may join his clients’ effort later, he said. Meanwhile, Milberg plans to file a petition to force Bernard Madoff into personal bankruptcy, Landers said. While Madoff’s company is being liquidated by Picard, the convicted fraudster isn’t in his own bankruptcy proceedings. Lander’s theory: Under bankruptcy law, it may be easier to reach Madoff’s assets that have been transferred to his family or friends, he said. Landers’ advice to his clients has been to file a claim for what is owed according to the last customer statement, including reinvested profits. One of his clients, part of an informal committee of victims, has a $30 million claim. 31 Picard’s rule that payouts will equal cash invested minus cash taken out would unfairly penalize Madoff clients who withdrew funds to pay taxes on reported profit, as well as older investors with IRAs who were forced by law to start withdrawing money when they turned 71, he said. Some customers are “petrified” of Picard’s plan to seek so-called clawbacks on money they took out over the years that exceeded their principal, Chaitman said. “In dire need,” such customers aren’t filing claims in case information they provide gives Picard a “roadmap to clawbacks”, she said. Under New York law, Picard can seek return of redeemed false profits going back six years. Picard’s counsel David Sheehan said at the February creditors’ meeting. “It was all made-up profit” he said. “So you got somebody else’s money.” Kevin McCue, a spokesman for Picard at the law firm Baker Hostetler LLP in New York, didn’t have an immediate response to requests for comment on investor complaints.

Agency liquidating Bernard Madoff’s brokerage says the $2.6 billion it has on hand is enough to satisfy all legitimate claims by victims of the money

“I have confidence there is sufficient money at SIPC to satisfy all claims,” he said in a phone interview. Agency liquidating Bernard Madof...

Five clerks are accused of saying the tickets were losers and offering to throw them away

Five clerks are accused of saying the tickets were losers and offering to throw them away. They then tried to cash in the tickets, either th...

Indictments for Donald Joseph Dean, 44, of Tyler; Michael Day Lamont, 30 ,of Allen; and Carl Tinsley Ratner, 52,

Indictments for Donald Joseph Dean, 44, of Tyler; Michael Day Lamont, 30 ,of Allen; and Carl Tinsley Ratner, 52, address unknown. Hunt County District Attorney Noble D. Walker Jr. said his office did not handle the investigations and that the grand jury was presented with the cases by a special prosecutor associated with the Securities Commission of Texas.All three individuals received indictments for engaging in organized criminal activity, acting as an unregistered dealer and selling unregistered securities. Dean and Ratner was also indicted for securities fraud.The engaging in organized criminal activity indictments allege that the three defendants, three more people named in the indictments, “and others”, between March 21, 2006 and Nov. 14, 2007, were involved in theft of property offenses in which the aggregate amount of the value of the stolen property totaled $200,000 or more; were involved in securing execution of document by deception offenses of which the aggregate affected the pecuniary interest of others in the amount of $200,000 or more; and also were involved in money laundering offenses in which the aggregate criminal proceeds totaled $200,000 or more.The unregistered dealer or agent indictments allege the three offered to make or made sales of securities to three individuals on three occasions during 2006, “without being duly registered as a securities dealer or agent by and with the Securities Commission of Texas.”The final indictment against all three defendants allege the securities they offered for sale were also not registered with the Commission. Under the securities fraud indictments, Dean and Ratner were alleged to have on Aug. 24, 2006 offered for sale interests in the Mack Diamond Energy LLC, Honey Grove Single Well Joint Venture, an oil or gas mining lease or title, while not disclosing the funds raised were not used for those purposes. Mack Diamond Energy is a company based in Wolfe City, which was the basis of two recent lawsuits. Cypress Consulting of Houston sued Mack Diamond Energy Group in August 2006, claiming the seismic data it provided, for which it charged Mack Diamond $183,436.45, was paid for by a check which bounced. The company was initially suing for more than $265,000 in damages and interest, then later adjusted the suit to credit Mack Diamond for $184,000 in payments. The two parties were reported to have reached an agreement in May 2007 and the suit was dropped. Joe R. Owen of Dallas, one of the persons named as a victim in the grand jury indictments issued Friday, filed suit against Mack Diamond in Dallas County, with the venue later transferred to Hunt County.Owen said he was offered investments over the Internet and telephone and invested $137,500. Owens wanted the investment rescinded, alleging Mack Diamond provided misrepresentations concerning purchases of oil and gas securities.The company issued a general denial of Owens’ claims. The suit indicated C. Mack Hays, the founder of Mack Diamond Energy, died on March 5, 2008 and the complaint was dismissed in January of this year.

Indictments for Donald Joseph Dean, 44, of Tyler; Michael Day Lamont, 30 ,of Allen; and Carl Tinsley Ratner, 52,

Indictments for Donald Joseph Dean, 44, of Tyler; Michael Day Lamont, 30 ,of Allen; and Carl Tinsley Ratner, 52, address unknown. Hunt Count...

Lance K. Poulsen, a founder of National Century Financial Enterprises, had nothing to say as he stood in prison garb and shackles

Lance K. Poulsen, a founder of National Century Financial Enterprises, had nothing to say as he stood in prison garb and shackles before U.S. District Judge Algenon L. Marbley and heard that he'd likely spend the rest of his life in federal prison. "Mr. Poulsen was the architect of the fraud," Marbley said before sentencing the 65-year-old Poulsen to 30 years. The scheme he masterminded stole $2.4 billion from investors, shut down 275 health-care providers and enriched its conspirators by millions of dollars.Poulsen was the last major executive of the Dublin-based company to be sentenced, and he got the stiffest term.Marbley also sentenced National Century founder Rebecca S. Parrett, who disappeared after her trial last March, to 25 years for nine fraud-related charges yesterday. Officials said the hunt for Parrett, 60, continues."For the victims in this case, with these verdicts, there is a sense of justice," said an exuberant Assistant U.S. Attorney Douglas W. Squires after five hours of sentencing hearings yesterday.Those actions ended the bulk of a several-year investigation into National Century fraud.Poulsen, who was chief executive officer of National Century, was convicted in October of fraud and money laundering. He also was found guilty last year of witness tampering and obstruction of justice, along with his friend Karl A. Demmler, for trying to persuade key prosecution witness Sherry Gibson to feign amnesia when questioned in court.Gibson was wearing a wire during conversations with Demmler, who owned the Bogey Inn restaurant in Dublin.Yesterday, Marbley sentenced Demmler, 57, to seven years in prison for his actions. The judge had sentenced Poulsen to 10 years in that case, and that sentence will be served at the same time as his 30-year sentence.Demmler, also in shackles and prison garb, apologized in court for his actions and statements, which included saying that he'd like to cut up a bankruptcy judge "and feed him to the fish."He said his comments had been "taken entirely out of context" and that he had been "misled" by many people."I don't believe I was evil in this case," he said.Of the three sentenced yesterday, Demmler was the only one whose friends and family made statements in court. His mother, Norma Demmler, 76, begged the judge to give him probation."I just want my son home. I hope you can help me," she said.However, Marbley said that although Demmler was "used and manipulated" by Poulsen, his "culpability was not inconsequential or slight" and his offense "goes to the very core of our system of justice."Demmler will get credit for 18 months in jail and on house arrest.The judge saved his harshest words for Poulsen, who said throughout his trial that he knew nothing of the fraud. Poulsen blamed investors for not catching the illegal acts."That's like the wolf blaming the hens for getting out of the hen house," Marbley chided him. "Nothing happened at National Century without your blessing."Marbley said it's impossible to know why Poulsen, a successful entrepreneur with children and a wife, went down the wrong path."Avarice and greed apparently took hold and clouded his judgment," the judge said. "He amassed significant wealth and thousands of investors suffered."Besides the prison time, the sentence for Poulsen and the others found guilty in the fraud case includes restitution of $2.4 billion.Squires said the federal government will be aggressively seeking that money by seizing goods, property, investments and pensions from the guilty. This week, the government seized nearly $400,000 from an account Parrett had in Arizona.In sentencing Parrett, Marbley said she is the only defendant in his 12 years on the bench who absconded after he presided over their trial."I believe, as justice is always served, she will be found," he said.National Century bought accounts receivable from health-care providers and charged a fee to collect what was owed. It raised money by selling bonds to investors. The fraud took place for seven years, beginning in 1995, when the company paid out millions of dollars without purchasing the accounts to back the loans. The company went bankrupt in 2002. Squires said agents from the FBI and several other agencies "sifted through a warehouse of documents" to piece together the evidence in the case.Marbley said he meted out long sentences not just as punishment for those involved but to discourage other white-collar criminals.One National Century defendant, Brian J. Stucke, pleaded guilty to one count in 2003 and has not yet been sentenced.

Lance K. Poulsen, a founder of National Century Financial Enterprises, had nothing to say as he stood in prison garb and shackles

Lance K. Poulsen, a founder of National Century Financial Enterprises, had nothing to say as he stood in prison garb and shackles before U.S...

Denver District Attorney Mitch Morrissey announced that he will use the state's organized-crime law to prosecute the gang members

Denver District Attorney Mitch Morrissey announced that he will use the state's organized-crime law to prosecute the gang members. He said weapons and narcotics charges also would be filed. "This is an organized gang," said Morrissey. "Like any other organized crime group, they were using guns and drugs to generate the money they needed to keep the organization going." With their activities came violence and rip-offs, said the district attorney. Among the narcotics seized today were more than 2,600 Ecstasy pills as well as cocaine, methamphetamine and mushrooms. During the nine-month investigation, agents seized numerous weapons used by the gang, including four semi-automatic pistols and two assault rifles, said Luke Franey, assistant special agent in charge of the ATF office in Denver. "One of those pistols was stolen from a federally licensed firearms dealer in Wyoming during a burglary of that establishment," said Franey. "I think it is common when you work with groups like this that you recover stolen firearms and assault weapons." Kevin Paletta, the Lakewood police chief, said that arresting the group has made the streets safer. "This is a very active group, particularly along the Denver-Lakewood border. They are a violent group," said Paletta. "Getting these folks off the street not only prevented future crimes, but I'm confident they prevented future acts of violence." The officials said that they have increasingly seen taggers develop into violent crime gangs in the metropolitan area. Deputy Denver Police Chief Michael Battista said that investigators have noticed tagging crews that "graduate into the criminal activity of narcotics and then into the more violent crimes." "I think one of the messages with this group — to see a tagger group evolve into violent organized crime like this — is that it is very concerning," said Morrissey. "I think a lot of people think they can just walk up to a tagger, and it's just going to be a kid who they can stop from tagging their fence. I think they need to understand that there is a potential that a tagger may be armed and that a tagger would get violent," said Morrissey. Morrissey said the investigation nine months ago started as the result of an investigation of another group of taggers, who were rivals. Authorities quickly decided they needed to start an investigation of the first group and were able to "develop the evidence, make the buys, get the guns and recover the narcotics" necessary to make the arrests made today, said Morrissey. Arrested today were Joshua Yarmon, 20; Guadalupe Trujillo, 38; Gabriel Sears, 20; Stephanie Johnson, 23; Jesse Romero, 23; Rodrigo Padilla, 26; alleged ringleader Isaiah Lunas, 22; and Merina Valenzuela, 19. Police are still searching for Anthony Bernard, 32, and Stephen Oliver, 21. Bail was set for six of those arrested: Four are being held on $1 million bail, two on $250,000 bail.

Denver District Attorney Mitch Morrissey announced that he will use the state's organized-crime law to prosecute the gang members

Denver District Attorney Mitch Morrissey announced that he will use the state's organized-crime law to prosecute the gang members. He sa...

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