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Archive for January 11th, 2013

Weekend Series on Crime: Danny Greene and the Cleveland Mafia

“I stressed that’s the way we’ve got to approach the first

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DEA Agent Is Accused of Sending a Prostitute to Visit Secret Service Agent in Colombia?

Steve Neavling
ticklethewire.com

 A DEA agent is accused of sending a prostitute to a Secret Service agent in Colombia while the pair were in the country working, the Huffington Post reports, citing a Justice Department report.

The reports says a Secret Service supervisory agent received a massage and sex while preparing for President Obama’s visit.

The investigation is part of a wider investigation into the use of prostitutes by Secret Service employees who were in Columbia, the Huffington Post wrote.

An inspector general for the Homeland Security Department said that at least 13 Secret Service employees had “personal encounters with female Colombian nationals,” Huffington Post reported.

FBI Probes Shooting of Agent at Police Training Center in Oklahoma

Steve Neavling
ticklethewire.com 

The FBI is investigating a shooting of one of its own at a police training center in Oklahoma Thursday, News 9 Oklahoma reports.

Agents are tight-lipped about what happened, but sources told News 9 that the agent did not shoot himself.

The agent was being treated Thursday evening for a gunshot wound to the leg and was in stable condition, News 9 reported.

The shooting is “certainly very rare, very unusual [and] very unfortunate,” special agent Rick Rains told News 9. “The agent was rendered aid at the time by our own EMTs who were on scene [as] part of the training exercise.”

The FBI described the probe as a routine investigation.

DEA Agent in New Orleans Retiring Following Newspaper Report on Potential Conflict of Interest

Steve Neavling
ticklethewire.com

Jimmy S. Fox,  the special agent in charge of the DEA’S office in New Orleans,  is retiring after a newspaper report exposed a potential conflict of interest, the Times-Picayune reports.

The newspaper wrote that Fox was bidding to oversee a consent decree between the Justice Department and the city of New Orleans.

Fox was part of a joint venture to bid on the oversight, which is a potential conflict of “revolving door” laws that govern side employment of federal authorities.

Fox also can’t lobby the DEA as part of the oversight process, the Times-Picayune reported.

Jeff Schlanger, president and CEO of KeyPoint, which is pursuing the bid, said Fox may not do the job.

“He’s deciding right now whether he wants to pursue the opportunity,” Schlanger told the Times-Picayune. “As of today, he’s still on the team. But he’s indicated he’s thinking of withdrawing.” Schlanger said Fox may pursue “another opportunity.”

Critics: FBI Violates Federal Law with Cell Phone Tracking Technology

Steve Neavling
ticklethewire.com 

New records show the FBI is using a controversial cell phone tracking technology that dupes phones into using a fake network, Slate reports. The idea is to track the movements of suspects in real time, Slate reported. But communication is not intercepted.

The technology, called “Stingray,” is controversial because it collects data from the phones of innocent bystanders and can interrupt phone service.

Critics charge that the practice violates federal communications law, Slate wrote.

“There are clearly concerns, even within the agency, that the use of Stingray technology might be inconsistent with current regulations,” says attorney Alan Butler, of the Electric Privacy Information Center. “I don’t know how the DOJ justifies the use of Stingrays given the limitations of the Communications Act prohibition.”

The Headache Named Bobby Ferguson: A Pain to Everyone Except Ex-Detroit Mayor Kwame Kilpatrick

Bobby Ferguson pictured above. Art by Lauren Davies for Deadline Detroit.

By Allan Lengel
Deadline Detroit

DETROIT — He was Mayor Kwame Kilpatrick’s good buddy, his confidante, his favorite city contractor.

But Bobby Ferguson managed to turn off many in Kilpatrick’s inner circle.

Contractors and city officials — including Victor Mercado, the head of the water department — complained about Ferguson.

Even Kilpatrick’s sister, Ayanna, found Ferguson a big headache who wouldn’t go away.

“Here we go with the Bobby bull again,” Ayanna texted mayoral insider Derrick Miller, complaining that her brother kept feeding Ferguson city business — at the expense of her the clients she represented.

As the Kwame Kilpatrick trial moved into the New Year, prosecutors this week homed in on Ferguson, a co-defendant, who the feds have portrayed as a bully who illegally conspired with Kilpatrick to rig city construction contracts and extort contractors for a piece of their action.

In turn, the feds allege that Ferguson gave Kilpatrick kickbacks from the demolition and excavation work. Kilpatrick’s father, Bernard, a business consultant, is the other co-defendant in the trial that began in September and is likely to go at least into February.

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FBI’s Washington Field Office Investigates Manipulation of Interest Rates

D.C. Field Office/gov photo

Steve Neavling
ticklethewire.com 

The FBI’s Washington field office is best known for investigating terrorism and public corruption.

Now, the office is leading an investigation of the manipulation of interest rates, Bloomberg reports.

The work has paid off so far, with two international resolutions, including a $1.5 billion settlement with UBS AG in December and the arrests of two of the bank’s former traders.

“We’ve got an enormous amount of resources devoted to this,” Timothy Gallagher, the head of the Washington criminal division who is overseeing the probe, told Bloomberg.

Investigations of corporations and security fraud often was the job of the bureau’s New York office, Bloomberg wrote.

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