December 2009 Archives

The U.S. Chamber Institute for Legal Reform (ILR) announced today the top five vote getters of its 1st Annual Most Ridiculous Lawsuit of the Year Poll. Nominees were drawn from the monthly Most Ridiculous Lawsuit poll winners, chosen by visitors to FacesofLawsuitAbuse.org, a public awareness campaign Web site that aims to show how abusive lawsuits affect small businesses and average families in very real ways.

"While ridiculous lawsuits may be easy fodder for late-night television hosts, they are no laughing matter for the defendants targeted," said ILR President Lisa Rickard.

The top five Most Ridiculous Lawsuits of 2009 are:

5. Neighbor sues woman for smoking in her own home;

4. Double-murderer sues to claim his victims' classic Chevy pickup;

3. Holocaust denier sues Auschwitz survivor, alleging memoir contains "fantastical tales;"

2. Tourist sues hotel, claiming swimming pool got daughter pregnant;

1. Illegal immigrants sue rancher who stopped them on his property at gunpoint and turned them over to the Border Patrol.

Links to the news stories about these lawsuits can be found at: http://facesoflawsuitabuse.org/polls-archive/.

Throughout the year, the monthly and annual polls collectively received more than 50,000 votes.

ILR seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the national, state, and local levels.

When David Goldman applied for the return of his son from Brazil under the Hague Convention for Abducted Children he surely could not have imagined the five-year ordeal that would unfold. On December 23, 2009, two days before Christmas, a federal court in Rio ordered the stepfamily to return Sean Goldman to his father by 9:00 a.m. The stepfamily says that they will no longer fight and it looks like Sean Goldman will finally be returned to his only living parent.

The Hague Convention on the Civil Aspects of International Child Abduction provides for the prompt return of children. Under article 11, if a court decision is not made within six weeks, the court can be required to explain the delay. In the case of Sean Goldman, the mother flew to Brazil in 2004 for what was to be a two-week vacation. She then announced to father, David Goldman, that she would be getting a divorce and would not be returning. In a strange twist, the mother died in childbirth and Sean Goldman was left in the care of his stepfather, who refused to return custody to David Goldman. According to court records, David Goldman filed his application for the return of his son within 50 days of being informed that he would not return. The courts in Brazil did not finally determine the matter until five years later.

Mark Gouras, an attorney with the law firm of Gouras & Amis P.L.L.C. is an expert in the area of international child abductions. Mr. Gouras says, "It is not supposed to be this way under the Hague Convention. The whole point of the Hague Convention is to quickly determine which jurisdiction is the habitual residence and to promptly return that child to that jurisdiction. The Hague Convention specifically states that it is not supposed to be a custody battle. What happened to Mr. Goldman is the exact opposite of what should have happened under the Hague Convention. While the child will ultimately be returned, I can only describe the process of returning this child under the Hague Convention to be a failure."

Brazil became a signatory to the Hague Convention on Parental Abductions on December 1, 2003. In the U.S. State Department's April, 2009 Compliance Report to Congress, Brazil is listed as one of seven countries that are not in compliance with the Hague Convention. "The Hague Convention has been a tremendous tool in the recovery of children abducted by one of the parents, but the whole system envisioned by the treaty breaks down if the court won't promptly return the child," according to Mr. Gouras.

Donald Mathias of Davie, Fla., pleaded guilty today to engaging in sex tourism in the Philippines, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Acting U.S. Attorney for the Southern District of Florida Jeffrey H. Sloman and U.S. Immigration and Customs Enforcement (ICE) Assistant Secretary John Morton.

Mathias, 64, pleaded guilty before U.S. District Judge William Peter Dimitrouleas in Ft. Lauderdale, Fla., to four counts of traveling in foreign commerce and engaging in illicit sexual conduct. He was indicted on those charges on Oct. 27, 2009.

As part of his plea agreement, Mathias admitted that from 2005 until December 2008, he communicated and arranged with the mother of two minor females located in the Philippines, to travel to the Philippines and engage in sexual conduct with the minors. During this time, Mathias and the mother exchanged hundreds of e-mails regarding sexual activity between Mathias and the minor females, recording those sexual acts with a video camera and making payments to the mother in exchange for the sexual acts.

Mathias admitted that he traveled to the Philippines in April 2007 and again in December 2007, engaged in sexual conduct with the minors on those trips and recorded those acts with a video camera. Mathias also admitted that he made the minors sign a contract in December 2007, requiring the minors to be his sex slaves. Money transfer and e-mail records showed that Mathias sent thousands of dollars to the mother between 2005 and December 2008. Mathias also admitted that he traveled to the Philippines in December 2008 to engage in sexual conduct with the minors again. However, Filipino law enforcement detained Mathias and he was not successful in meeting the minors. On Oct. 14, 2009, the defendant was arrested by U.S. law enforcement in Miami.

As part of the plea agreement, the defendant and the government both agreed to recommend a sentence of 20 years in prison and a lifetime period of supervised release. The defendant also agreed to pay $200,000 in restitution to the victims of his crimes located in the Philippines, and agreed to transfer his real property to the United States in order to satisfy the restitution.

Sentencing has been set for March 2, 2010. At sentencing, Mathias faces a maximum sentence of 30 years in prison, up to a $250,000 fine and the possibility of a lifetime period of supervised release.

This case was investigated by ICE's Office of Investigations in Miami and the U.S. Postal Inspection Service, with assistance from the Philippines Department of Justice. This case is being prosecuted by Trial Attorney Anitha Ibrahim of the Criminal Division's Child Exploitation and Obscenity Section and Assistant U.S. Attorney Marlene Rodriguez of the U.S. Attorney's Office for the Southern District of Florida.

Three Massachusetts men and an Arkansas man were charged today in U.S. District Court in Boston with racketeering conspiracy.

Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts; Jane Duke, U.S. Attorney for the Eastern District of Arkansas; Warren T. Bamford, Special Agent in Charge of the FBI - Boston Field Division; and Thomas J. Browne, Special Agent in Charge of the FBI - Little Rock Field Office, announced today that Ralph F. Deleo, age 66, of Somerville, Mass.; Franklin M. Goldman, age 66, of Randolph, Mass.; Edmond Kulesza, age 56, of Somerville, Mass.; and George Wylie Thompson, age 54, of Cabot, Ark., were charged in an indictment with criminal conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

The Indictment alleges that Deleo, who was the "street boss" of the Colombo Family of La Cosa Nostra (LCN), directed and controlled the operations of the Deleo Crew, which included but was not limited to Deleo, Goldman, Kulesza and Thompson. According to the indictment, members and associates of the Deleo Crew engaged in the importation, trafficking and distribution of narcotics and controlled substances, including cocaine and marijuana; extortion; loan sharking; and interstate and foreign travel in aid of racketeering. It is alleged that the Deleo Crew operated principally in the areas of Massachusetts, Arkansas, Rhode Island, New York and Florida.

As detailed in the indictment, LCN, also known as the "Mafia," is a criminal organization that operates in various parts of the United States and Canada through entities known as "families." The five most powerful families of LCN are based in New York City. The Colombo Family is one of the five families of LCN in New York. Deleo's alleged membership in, and leadership of, the Colombo Family facilitated the affairs of the Deleo Crew and enhanced the ability of its members to make money by illegal means. Conversely, Deleo allegedly used the criminal activities of the Deleo Crew to increase and maintain his status in the Colombo Family.

This case began in the Eastern District of Arkansas (EDAR) as an investigation into illegal activities involving Thompson and others. The investigation has resulted in two indictments charging Thompson in the EDAR with drug trafficking; illegal possession and sale of firearms, ammunition and silencers; the operation of an illegal gambling business; marriage fraud; and wire fraud scheme involving a local elected official in Arkansas. During the course of the investigation into Thompson in the EDAR, search warrants executed by the FBI and ATF resulted in the seizure of approximately 147 firearms, over 80,000 rounds of ammunition and five illegal silencers. Since Thompson was previously convicted of a felony offense, the pending charges against him include charges of being a felon in possession of these items. (See EDAR Press Releases dated Nov. 16, 2009 and Dec. 2, 2009.)

Shortly after the execution of these warrants, Thompson fled the country. He was eventually apprehended in Bangkok, Thailand and deported to the United States, and is currently in custody awaiting trial in Arkansas. As is set forth in the indictments, while Thompson was out of the United States, he maintained contact with Deleo.

U.S. Attorney Ortiz said, "Each of these defendants and their alleged crimes posed a serious threat to the public. I want to commend the exemplary coordination among law enforcement officials in multiple jurisdictions and agencies for bringing this case to fruition. I would also like to thank and acknowledge the U.S. Attorney's Office for the Eastern District of Arkansas for their assistance in investigating this case."

"The crimes that the defendants are charged with pose a threat to American society. The FBI has made enormous progress against La Cosa Nostra and is not letting up. We will continue to work closely with our law enforcement partners and use all of the tools at our disposal to eliminate the mob's influence," said Special Agent Warren Bamford.

U.S. Attorney for the Eastern District of Arkansas Jane W. Duke commented, "The FBI office in Arkansas, and the U.S. Attorney's Office in Little Rock, worked diligently to bring those charges that took place in Arkansas and to facilitate the pursuit of the broader racketeering charges now being brought in Boston. The fact that our investigation has worked into a much larger scenario involving a significant crime family operating in other parts of the United States is a great example of what can be accomplished when U.S. Attorney's Offices and law enforcement agencies work together to combat crime. We are pleased to be a part of this case."

If convicted on the RICO charge, Deleo, Goldman, Kulesza and Thompson each face up to 20 years in prison, to be followed by three years of supervised release and a $500,000 fine.

The U.S. Attorney's Office would like to acknowledge the cooperation and assistance of the U.S. Attorney's Offices for the Eastern District of Arkansas, the Eastern District of New York, the Southern District of Florida and Organized Crime and Racketeering Section of the Criminal Division of the Department of Justice.

The District of Massachusetts case is being investigated by the FBI's Organized Crime Task Force, which includes representatives of the Boston Police Department, Medford Police Department, Quincy Police Department, Massachusetts Department of Corrections and the Internal Revenue Service. The FBI Task Force was also assisted by the Massachusetts State Police, Somerville Police Department and the Middlesex County District Attorney's Office.

The Eastern District of Arkansas case is being investigated by the FBI - Little Rock Field Office, the Bureau of ATF - Little Rock Field Office and the Arkansas State Police.

The Massachusetts case is being prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Peter K. Levitt of Ortiz's Organized Crime Strike Force Unit. The Eastern District of Arkansas case is being prosecuted by Assistant U.S. Attorney Laura G. Hoey.

The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The Business Software Alliance (BSA), which represents the world's commercial software industry, announced today that BSA, on behalf of its member company Autodesk, Inc. has won a $540,115 judgment in the U.S. District Court for the Northern District of California against two individuals and their businesses alleged to have been producing and selling counterfeit software (Case #C09-02337). The lawsuit was originally filed on behalf of plaintiff Autodesk by the BSA in May 2009.

The individual defendants named in the case are Sean Saad of Manchester, New Hampshire, and Mehran Tabatabayee of Missouri City, Texas. The corporate defendants are HS Squared International, LLC, based in Manchester, New Hampshire and BuyPCSoft.com, Inc., based in Missouri City, Texas.

The case against these individuals and companies revolved around Autodesk's flagship product AutoCAD(R) and includes allegations of copyright infringement, circumvention of copyright protection measures, and trademark infringement. The judgment from the Honorable Ronald M. Whyte, U.S. District Court Judge for the Northern District of California, follows an intensive investigation by BSA involving purchases of suspicious software by BSA investigators and reports by members of the public submitted to BSA and Autodesk. Despite the price tag of up to $3,995 per software title, in each instance counterfeit product was received.

Along with the $540,115 judgment, the defendants are permanently enjoined from committing future acts of infringement involving Autodesk software products and Autodesk trademarks. Additionally, they have been ordered to destroy immediately any and all infringing copies of such software in their possession or control.

"This action is still another reminder that the theft of intellectual property such as software will not be tolerated," said Jenny Blank, Senior Director of Legal Affairs for BSA. "Although the BSA works hard to educate and inform people about the dangers of selling or acquiring illegal software, we sometimes need to take stronger actions to stop blatantly illegal activity."

"This particular investigation began as part of BSA's overall efforts against online sales of illegal software. As part of our global Internet program, we have focused attention on Web sites and individuals who profit illegally from the sale of products which they have no right to reproduce and sell. Ultimately, such fraudsters are duping unsuspecting consumers with substandard and potentially dangerous products," said Blank.

In part to reaffirm the growing severity of the consequences involved in participating in software piracy, BSA recently released "Faces of Internet Piracy," a revealing look at the human side of software piracy. Through this campaign, BSA spotlights true stories of people affected by piracy. According to Blank, "These stories are a wake-up call for distributors and users of illegal software. "Don't take our word for it; just listen to these software pirates explain how they made money by duping thousands of people into purchasing or downloading illegal software from the Internet. Hear how their actions ended up costing them serious fines and prison sentences."

Captain Michael Dung Nguyen, 28, of Ft. Lewis, Wash., pleaded guilty today before U.S. District Court Judge Ancer L. Haggerty to the crimes of theft of government property and structuring financial transactions. Nguyen is scheduled for sentencing on March 1, 2010 at 9:30 a.m.

In pleading guilty to the offenses, Nguyen admitted that while on deployment to Iraq, he stole and converted to his own use approximately $690,000 in U.S. currency.

Nguyen gained access to the currency in his capacity as the Project Purchasing Officer in the 1st Battalion, 23rd Infantry Regiment of the U.S. Army. The currency was derived from Commander's Emergency Response Program (CERP) funds. CERP funds are the property of the United States and are managed by the Department of Defense. The currency was intended as payment for security contracts with the Sons of Iraq as well as humanitarian relief and reconstruction programs.

Nguyen transported the stolen currency into the District of Oregon by mailing it to himself at his family's Oregon residence prior to his return from Iraq. Shortly after he returned from Iraq, Nguyen opened new bank accounts at Bank of America, Washington Mutual Bank, America's Credit Union and Heritage Bank, and proceeded to deposit $387,550 of the stolen CERP currency into those accounts in Oregon and elsewhere. Between June 9, 2008 and Sept. 26, 2008, Nguyen made repeated deposits of stolen currency in a manner that was intended to evade federal reporting requirements for the deposit of large amounts of money.

After depositing the money in the accounts, Nguyen purchased a 2008 BMW and a 2009 Hummer H3T, in addition to purchasing computers, firearms, electronics and furniture. During the execution of a search warrant, investigators discovered over $300,000 in stolen CERP currency hidden in the attic of Nguyen's Portland family home.

At sentencing, the maximum penalty for each of the crimes of conviction is ten years in prison and a maximum fine of $500,000. In addition to pleading guilty, Nguyen agreed to forfeit all the stolen currency, as well as all of the personal property purchased with the stolen funds.

The investigation was initiated by the Portland office of the Internal Revenue Service, Criminal Investigation, following the discovery of large and frequent currency deposits and substantial expenditures above Captain Nguyen's legitimate income level. The investigation was joined by the FBI, the U.S. Army Criminal Investigation Division's Major Procurement Fraud Unit, and the Department of Defense's Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Scott Erik Asphaug.