The 32-count indictment charges Mendelsohn with mail and wire fraud, aiding and abetting mail and wire fraud, and making false statements to federal agents.  Mendelsohn will make his initial appearance today at 11 a.m. before U.S. Magistrate Judge Lurana Snow in Ft. Lauderdale.

According to the indictment, beginning in approximately 1999, Mendelsohn, a practicing physician, was involved in lobbying members of the Florida legislature and other state officials for legislation and budget expenditures of importance mainly to ophthalmologists.  The indictment alleges that in approximately late 2002, Mendelsohn was asked by various lobbyists and businesspeople if he would use his political connections to assist their clients in obtaining and defeating legislation and in obtaining other favorable government action.  According to the indictment, beginning in approximately 2002, Mendelsohn allegedly created a series of political organizations and corporations for the purpose of soliciting and then transferring contributions between the entities in ways that would be difficult to trace.

Beginning in approximately 2002, through a pattern of false representations and promises, Mendelsohn allegedly solicited and received more than $2 million in donations to the political organizations he controlled from persons for whom he agreed to provide lobbying and other services.  According to the indictment, Mendelsohn allegedly represented to the contributors that their funds would be used for media and other campaigns on political issues of importance to them and to support political candidates.  In fact, the indictment alleges that Mendelsohn secretly diverted more than $350,000 in contributed funds to his personal use and benefit through payments made in ways that were misrepresented or concealed entirely in required public disclosure reports for the political organizations.  The indictment alleges that Mendelsohn used the diverted funds, in part, to purchase a residence and a car, to pay for tutors and tuition for his children, to pay his personal credit card bills, and to pay bonuses to an employee of his medical practice.

The indictment also alleges that Mendelsohn falsely represented to a contributor that he secured bribery agreements with senior government officials.  During 2003 and 2004, the indictment alleges that Mendelsohn falsely represented to the contributor that he had brokered an agreement with senior government officials to close an ongoing criminal investigation by state officials in Florida of the contributor and others in exchange for campaign donations and other payments totaling more than $1 million.  The indictment also alleges that in subsequent conversations in 2007, Mendelsohn falsely told the contributor that senior government officials had agreed to exert pressure on federal prosecutors investigating the contributor to close the investigation in exchange for $400,000 in contributions.  As a result of Mendelsohn’s false representations, the contributor caused more than $1 million in payments to be made, as directed by Mendelsohn.  The indictment states that, in fact, no such unlawful agreements to close
any investigations had been made with any public officials.

The indictment alleges that in order to increase his power and influence as a lobbyist so that he could obtain more contributions and consequently more funds for himself, Mendelsohn made approximately $87,000 in payments to a now-former public official. These payments, which were made from the political organizations Mendelsohn controlled, were disguised as payments for consulting services rendered by an intermediary to whom the checks were written. In addition, the indictment alleges that Mendelsohn undertook or directed others to undertake actions to conceal the true source of certain campaign contributions.  The indictment also alleges that Mendelsohn caused income and expense amounts to be falsely characterized or omitted in the books and records of political organizations and corporations he controlled and from public disclosure reports that required the accurate reporting of income and expenditures.

Mendelsohn also allegedly made several material false statements to federal agents investigating these allegations beginning in late May 2007.  For example, according to the indictment, Mendelsohn falsely denied that he had represented to one of the contributors that he had secured an agreement with senior government officials to terminate the state investigation involving the contributor.  Mendelsohn also falsely claimed that he did not receive any personal benefit from using his political connections.  In addition, the indictment alleges he falsely denied that he ever received any financial benefit from the political organizations for which he solicited contributions and controlled.

An indictment is merely an accusation. All defendants are innocent until proven guilty.

The charges of mail and wire fraud each carry a maximum penalty of 20 years in prison and a $250,000 fine.  The charges of false statements each carry a maximum penalty of five years in prison and a $250,000 fine.

This case is being prosecuted by Senior Trial Attorney Mary K. Butler and Trial Attorneys Justin V. Shur and Eric G. Olshan of the Criminal Division’s Public Integrity Section, headed by William M. Welch, II, Chief.  This case is being investigated by the FBI’s Miami Field Office.

A one-count indictment, handed up in the Southern District of California on Sept. 1, 2009, and unsealed on Sept. 15, 2009, charges seven defendants each with one count of conspiracy to commit several offenses against the United States, including conspiracy to steal money and other property from Indian tribal casinos, and conspiracy to travel in interstate and foreign commerce in aid of racketeering.  Defendants charged in this indictment include Jason Cavin, Connie Marie Holmes, Brandon Pete Landry, Nedra Fay Landry, Geraldo Montaz, Jesus Rodriguez and Mike Waseleski.

According to the indictment, from approximately March 2002 through July 2006, the defendants and co-conspirators allegedly formed and participated in a conspiracy, defined in the indictment as the “Tran Organization,” to cheat at gambling in casinos across the United States.  The indictment lists 10 casinos that were allegedly targeted by members of the conspiracy, including five casinos that are owned and operated by Indian tribes.

An additional defendant, Jimmy Ha, was charged in a superseding indictment that was returned in the Southern District of California on Sept. 1, 2009, and unsealed on Sept. 3, 2009, for an alleged conspiracy, defined in the indictment as the “Tran Organization,” to cheat the Barona Valley Ranch Casino and Resort in Lakeside, Calif., in 2005.  James Root, who was previously indicted in connection with this case, was also charged in the superseding indictment.

If convicted on the conspiracy charge, defendants face a maximum five-year prison sentence.

According to both indictments, the defendants and others executed a “false shuffle” cheating scheme at casinos during blackjack and mini-baccarat games.  The indictments allege that members of the criminal organization bribed casino card dealers and supervisors to perform false shuffles during card games, thereby creating “slugs” of un-shuffled cards.  After tracking the order of cards dealt in a card game, a member of the organization would signal to the card dealer to perform a “false shuffle,” and then members of the group would bet on the known order of cards when the slug appeared on the table.  By doing so, members of the conspiracy won thousands of dollars during card games.

There were two previous indictments in connection with the Tran Organization’s alleged casino-cheating conspiracy.

Nineteen alleged members of the Tran Organization were charged in a three-count indictment returned in San Diego on May 22, 2007, and unsealed on May 24, 2007, including Phuong Quoc Truong, Van Thu Tran, Tai Khiem Tran, Anh Phuong Tran, Phat Ngoc Tran, Martin Lee Aronson, Liem Thanh Lam, George Michael Lee, Tien Duc Vu, Son Hong Johnson, Barry Wellford, Willy Tran, Han Truong Nguyen and Ha Thuy Giang. Each were charged with one count of conspiracy to participate in the affairs of a racketeering enterprise, defined in the indictment as the Tran Organization; one count of conspiracy to commit several offenses against the United States, including conspiracy to steal money and other property from Indian tribal casinos; and one count of conspiracy to commit money laundering.

Eleven additional defendants were charged in a separate indictment for conspiring to commit offenses on behalf of the Tran Organization.  A one-count indictment, unsealed in the Southern District of California on Sept. 11, 2008, charged Bryan Arce, Don Man Duong, Hogan Ho, Thang Viet Huynh, Outtama Keovongsa, Leap Kong, Qua Le, Khunsela Prom, James Root, Darrell Saicocie, and Dan Thich each with one count of conspiracy to commit several offenses against the United States, including conspiracy to steal money and other property from Indian tribal casinos, and conspiracy to travel in interstate and foreign commerce in aid of racketeering.

To date, 31 defendants have pleaded guilty to charges relating to the casino-cheating conspiracy including: Phuong Quoc Truong, Tai Khiem Tran, Anh Phuong Tran, Phat Ngoc Tran, Martin Lee Aronson, Liem Thanh Lam, George Michael Lee, Tien Duc Vu, Son Hong Johnson, Barry Wellford, John Tran, Willy Tran, Tuan Mong Le, Duc Cong Nguyen, Han Truong Nguyen, Roderick Vang Thor, Sisouvanh Mounlasy, Navin Nith, Renee Cuc Quang, Ui Suk Weller, Phally Ly, Khunsela Prom, Hop Nguyen, Hogan Ho, Darrell Saicocie, Bryan Arce, Qua Le, Outtama Keovongsa, Leap Kong, Thang Viet Huynh, and Don Man Duong. These defendants admitted to targeting, with the aid of co-conspirators, a combined total of approximately 26 casinos in the United States and Canada during the course of the conspiracy, including:

1) Beau Rivage Casino in Biloxi, Miss.;
2) Casino Rama, in Orillia, Ontario, Canada;
3) Foxwoods Resort Casino in Ledyard, Conn.;
4) Gold Strike Casino in Tunica, Miss.;
5) Horseshoe Casino in Bossier City, La.;
6) Horseshoe Casino and Hotel in Tunica, Miss.;
7) Isle of Capri Casino in Westlake, La.;
Majestic Star Casino in Gary, Ind.;
9) Mohegan Sun Resort Casino in Uncasville, Conn.;
10) Palace Station Casino in Las Vegas;
11) Resorts East Chicago Hotel and Casino in East Chicago, Ind.;
12) Sycuan Casino in El Cajon, Calif.
13) Cache Creek Indian Bingo and Casino in Brooks, Calif.;
14) Emerald Queen Casino in Tacoma, Wash.;
15) Imperial Palace Casino in Biloxi, Miss.;
16) Argosy Casino in Baton Rouge, La.;
17) Trump 29 Casino in Coachella, Calif.;
18) Isle of Capri Casino in Bossier City, La.;
19) Agua Caliente Casino in Rancho Mirage, Calif.;
20) Spa Resort Casino in Palm Springs, Calif.;
21) Pechanga Resort and Casino in Temecula, Calif.;
22) L’Auberge du Lac Casino in Lake Charles, La.;
23) Nooksack River Casino in Deming, Wash.;
24) Barona Valley Ranch Casino and Resort in Lakeside, Calif.;
25) Caesars Indiana Hotel and Casino in Elizabeth, Ind.;
26) Monte Carlo Resort and Casino in Las Vegas.

Two other defendants, Ha Thuy Giang and Tammie Huynh, pleaded guilty to tax offenses stemming from the investigation, and Khai Hong Tran admitted to the offenses alleged in the 2007 U.S. indictment when he pleaded guilty to casino cheating offenses in Canada.

The prosecution of the case is led by the Criminal Division’s Organized Crime and Racketeering Section.  Department of Justice Trial Attorneys Joseph K. Wheatley and Robert S. Tully are prosecuting the case in San Diego.  The case is being investigated by the FBI’s San Diego Field Office, the Internal Revenue Service-Criminal Investigation, the San Diego Sheriff’s Department and the California Department of Justice’s Bureau of Gambling Control.  The investigation has received assistance from federal, state, tribal and foreign authorities, including: the Ontario, Canada, Provincial Police; the National Indian Gaming Commission; the U.S. Attorney’s Office for the Western District of Washington; FBI Resident Agencies in Gulfport, Miss., Tacoma, and Toledo, Ohio; the Indiana State Police; the Rumsey Rancheria Tribal Gaming Agency; the Sycuan Gaming Commission; the Barona Gaming Commission; the Mississippi Gaming Commission and the Washington State Gambling Commission.

An indictment is merely an allegation and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Anyone with information relating to the investigation may contact the FBI’s San Diego Field Office at (858) 565-1255.

A federal grand jury in San Francisco has returned an indictment against a former executive of a large Taiwanese color display tube (CDT) manufacturing company for participating in a global conspiracy to fix prices of CDTs, a type of cathode ray tube used in computer monitors and other specialized applications, the Department of Justice announced today.

The indictment, filed last night in the U.S. District Court in San Francisco, charges Wen Jun (Tony) Cheng, a former Assistant Vice President of Sales and Marketing, with conspiring with unnamed co-conspirators to suppress and eliminate competition by fixing prices, reducing output, and allocating market shares of CDTs. The Department alleges that Cheng participated in the conspiracy beginning at least as early as January 1999 until at least September 2004.

Cheng was previously indicted on Feb. 3, 2009, for his participation in a global conspiracy to fix prices of Thin Film Transistor-Liquid Crystal Display (TFT-LCD) panels.

The indictment alleges, among other things, that Tony Cheng and co-conspirators carried out the CDT conspiracy by attending meetings and engaging in conversations and communications in Taiwan, Korea, Malaysia, China and elsewhere to discuss and agree on the prices, output and market shares of CDTs. Cheng and co-conspirators are also alleged to have implemented an auditing system to verify that production lines had been shut down as agreed, and to have taken steps to conceal the conspiracy.

Cheng is charged with violating the Sherman Act, which carries a maximum penalty of 10 years imprisonment and a fine of $1 million for individuals for violations occurring after June 22, 2004. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either or those amounts is greater than the Sherman Act maximum fines.

This case is part of an ongoing joint investigation by the San Francisco Office of the Antitrust Division of the U.S. Department of Justice and the Federal Bureau of Investigation in San Francisco. Anyone with information concerning illegal conduct in the cathode ray tube industry is urged to call the San Francisco Field Office of the Antitrust Division at 415-436-6660.