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Archive for February, 2012

Rules on Terror Suspects Change for FBI

By Danny Fenster

New rules have been outlined by the Obama administration regarding when the FBI, as opposed to the military, can retain custody of al-Qaida terrorism suspects who are not U.S. citizens but are arrested by federal law enforcement agents, reports the Associated Press.

The new rules from the White House came about from a December agreement amongst congressmen and the Obama administration seeking broader military control and reduced civilian court rule for terrorism suspects, according to the AP.

Non-US citizen members of al-Qaida involved in planning or attempting to target US or coalition forces require military custody, according to the new law. The president maintains the ability to waive that provision, however.

To read more click here.

FBI Continues Insider Trading Investigations Using Stable of Informants

By Danny Fenster
 There’s apparently no shortage of snitches on Wall Street.

The FBI said Monday that it plans to continue investigating alleged insider trading using its current “stable of informants” for the next five years,  reports

The FBI has been running “Perfect Hedge” since 2009,  an operation that has resulted in charges against numerous traders, executives and research consultants.

David Chaves, a FBI supervisory special agent, securities and commodities fraud investigations, said on Monday, ‘We have cooperators set up for years to come,” FBI agent David Chaves said Monday, according to the news website.

He said some of the witnesses included traders who were busted and are looking to get reduced sentences.

To date, 59  of the 64 people arrested have been convicted or pleaded guilty ,  according to

To read more click here.

Motions Alleging ATF Racism Given More Time

By Danny Fenster

A Wichita federal judge has granted more time for  motions related to charges that a federal firearms sting was racially motivated,  reports

Defense lawyers are seeking to drop charges against black defendants charged in the ATF investigation, claiming the charges were racially motivated. At least 43 of 51 defendants in the case are black.

The government claims the race arguments against the suspects are bogus.

FBI Changes Mind; Will Keep La Crosse, Wisc. Office Open

By Allan Lengel

The FBI has backed off a little on its plans and will keep open its La Crosse, Wisc. office, U.S. Sen. Herb Kohl announced Tuesday.

Kohl had been fighting to get the FBI’s plan to close half of its office in the western district of Wisconsin.

The original plan called for the closure of Kenosha, Wausau and La Crosse offices to save money.

“Local law enforcement officials convinced us that having an FBI presence in western Wisconsin is a crucial layer in their efforts to fight drug trafficking, gang violence and other serious criminal enterprises,” Kohl said in a statement. “While I support streamlining operations, we have to consider whether distance challenges in our state would compromise the FBI’s mission and risk neglecting some of our rural communities. I’m gratified that Director Mueller and Attorney General Holder kept an open mind to our concerns and reevaluated their plans.”


Atty. Gen. Holder Defends the Way he Handled ATF’s Fast and Furious

Ex-Detroit Treasurer Indicted for Taking Bribes in Case that Cost Pension Funds $84 Million

By Allan Lengel

DETROIT — In this cash-strapped city on the brink of financial collapse, seeing public corruption run wild is tough.

On Tuesday, the feds struck back, indicting the city’s former treasurer Jeffrey Beasley for taking bribes and kickbacks in return for approving more than $200 million in investments for two city of Detroit pension funds that lost $84 million from investments associated with the bribes.

Interestingly, Beasley is the former appointee and frat brother of ex-Detroit Mayor Kwame Kilpatrick, who is already under indictment for public corruption.

The indictment against Beasley alleges that he conspired with others to personally enrich himself and his co-conspirators between 2006 and 2008 by accepting bribes in the form of cash, travel, meals, golf clubs, drinks, gambling money, hotel stays, entertainment, Las Vegas concert tickets, massages, limousine service, private plane flights, and other things of value.

Authorities said that the bribes came from people who had  business before the General Retirement System and the Police and Fire Retirement.

The indictment alleges that Beasley personally received more than $100,000 in cash from people having business before the two pension funds. Another part of the scheme included demands by Beasley and others that individuals having business before the pension funds contribute tens of thousands of dollars to the Kilpatrick Civic Fund in order to receive approval for their investment requests.

“Employees of the City of Detroit are entitled to honest services from the trustees of their pension funds. We will prosecute public officials who abuse their positions of trust to personally enrich themselves at the expense of the people they were intended to serve,” said U.S. Attorney Barbara McQuade said in a statement.

Detroit’s top FBI agent Andrew Arena added:  “This is another example of a once trusted public official abusing their power for personal gain. The FBI remains dedicated to rooting out this type of corruption and reminding public officials they serve the citizens not themselves.”


ATF to Ditch the Blackberry

By Allan Lengel

By Bye Blackberry.

Daid Saleh Rauf of Politico reports that ATF plans to ditch the Blackberry phone “largely in favor of the iPhone.”

“We’re going to delete the BlackBerry from the mix,” Rick Holgate, ATF’s chief information officer, said in an interview, according to Politico.

To read more click here.


Mich. Sen. Office Receives Letter with White Powder

By Danny Fenster

The FBI announced on Monday that US Senator Carl Levin’s downtown Detroit  office was evacuated after an employee came across a letter filled with a “suspicious white powder,” reports the Detroit News. The powder was later determined to be harmless.

Levin’s office, located in the McNamara Federal Building, has since been reopened, according to the Detroit News. The senator was in Washington when the letter and the powder were discovered.

The Michigan senator is the latest across the nation to receive letters with the powder over the last week, though none have yet proved to be dangerous.

To read more click here.