Examples of Significant Cases
Prosecuted by John Teakell
As an Assistant United States Attorney
1. U.S. v. Walter H. Cushman III, et al.(ND-TX)
This complex telemarketing and oil and gas fraud raised $10 million by selling interests in various oil and gas programs. The defendants made appearances of legitimately drilling for oil or gas by purchasing oil or gas leases that had little or no production potential. The defendants misrepresented the use of investor monies, production potentials and returns, and their expertise. Cushman contracted a person to either kill or break the legs of persons whom they feared would provide information to law enforcement. The defendants laundered money through houses of prostitution, utilizing shell companies and transfers of monies.
2. U.S. v. Ray Dell Devoll(ND-TX)
Devoll was the first bank fraud defendant in the nation to advocate insanity at trial. Devoll orchestrated a devious and complex scheme to purchase and control a set of financial institutions utilizing those institutions' own monies for the purchase(s). Devoll contacted institutions with offers to purchase the controlling interest of the respective institution, falsely claiming that a group of investors would finance the purchase(s). While negotiating with the respective institutions, Devoll attempted to obtain authority at the institutions in order to make unauthorized transactions. At one savings and loan, he obtained authority over functions that enabled him to transfer $2 million from its correspondent account at the Federal Reserve Bank. Devoll attempted to use the savings and loan's own money to purchase its majority ownership.
3. U.S. v. Michael Satz, et al.(ND-TX)
Satz orchestrated a fraudulent set of "boiler rooms" across the country that made misrepresentations to persons who were in desperate need of personal financing. His fraudulent companies promised that they would arrange/obtain financing for a "loan fee." Satz sent money to a few people for the appearances of legitimacy, and he raised $12 million.
4. U.S. v. Norman Eads, et al. (ND-TX)
Eads, the owner/manager of a fraudulent telemarketing "boiler room," sold chances to win "top" prizes. The defendants induced victims to purchase allegedly state-of-the-art products at reduced prices. Eads, et al. misrepresented the product values, the existence of prizes, the chance of winning prizes, and the number of prizes. Eads raised more than $13 million.
5. U.S. v. Lorenzo Sigala, et al.(ND-TX)
The Sigala brothers imported 250 kilograms of cocaine per month from Mexico. The cocaine was shipped through El Paso, Texas to the Dallas/Forth Worth area, where it was further distributed to other parts of the United States. The Sigala organization sent cash sales proceeds back to Mexico via couriers and semi-tractor/trailer trucks.
6. U.S. v. Linda McCanless (ND-TX)
McCanless was convicted of solicitation of interstate murder-for-hire. McCanless was convicted of her solicitations to have her husband and sister killed, due to jealousy, hate and monetary considerations.
7. U.S. v. Jorge Alicea Serrano, et al. (Puerto Rico)
Jorge Alicea Serrano was the largest mover of cocaine in and through Puerto Rico in the late 1980s through the mid-1990s. Alicea Serrano moved thousands of kilograms of cocaine, via his contacts in South America, to the States of Florida and New York. Alicea Serrano and others were convicted for activities in the mid-1990s with telephone calls that were taped pursuant to a Title III wiretap. Alicea Serrano, et al. couriered hundreds of thousands of dollars per trip to South America as payment for the cocaine, and to Caribbean countries for deposit.
8. U.S. v. Jaime Rosado Rosario, et al. (Puerto Rico)
Rosado Rosario was a trafficker in huge quantities of cocaine through Puerto Rico to the United States. Rosado Rosario's sources of cocaine were in South America, and Rosado Rosario, et al. transported thousands of cocaine kilograms to the mainland United States. During one conspiracy, two boatloads of kilograms were interdicted, and a member of the organization began to cooperate. After Rosado Rosario, et al. were indicted, Rosado Rosario had others kill the cooperating defendant, who was scheduled to testify at the cocaine trafficking trial. Rosado Rosario, et al. were further indicted for tampering with a government witness by murder.
9. U.S. v. Luis Gines Perez, et al. (Puerto Rico)
Luis Gines Perez and others trafficked in heroin and cocaine in Puerto Rico and laundered sales proceeds in Puerto Rico and foreign countries. Gines and his organization lieutenant murdered an organization employee, who transported heroin and cocaine and who wire transferred money to launder sales proceeds. This case was certified by the Attorney General to seek death as a sentence.
10. U.S. v. Edilberto Perez Manjarres, et al. (Puerto Rico)
Perez Manjarres and other Colombian nationals attempted to import over 1,100 kilograms of cocaine via boat from Colombia into Puerto Rico for further distribution. When the U.S. Coast Guard boarded the defendants' vessel miles offshore, no controlled substances were on board. The next day, relatively near where the vessel had been stopped, the U.S. Coast Guard found 36 bales containing over 1,100 kilograms of cocaine.
11. U.S. v. Hernan Perez Perez (Puerto Rico)
Perez Perez was a stockbroker who embezzled approximately $3 million from his securities firm. Perez Perez was able to perpetuate the scheme by transferring monies between clients' accounts to conceal the embezzlements and by utilizing false account statements.
12. U.S. v. Eladio Santiago Sanchez, et al. (Puerto Rico)
Santiago Sanchez, other employees, and supervisors of the Department of Veterans Affairs were convicted of extorting monies from veterans and falsifying records of that agency. The veteran benefits counselors and supervisors extorted money from veterans for whom they created eligibility for benefits. The defendants demanded and took one-half of the check amounts in cash from the veterans.
13. U.S. v. Ruben Caicedo Bustamante, et al. (Puerto Rico)
Bustamante, et al. attempted to import 660 kilograms of cocaine from South America.
14. Unindicted matter (Puerto Rico)
Complex money laundering/cocaine and marijuana trafficking between the mainland United States and Puerto Rico.
15. U.S. v. Acosta-Martinez, et al. (Puerto Rico)
Kidnapping-for-ransom and murder case in which the defendants murdered and dismembered the victim, and threatened witnesses for suspected cooperation. This case was certified by the Attorney General to seek death as a sentence.
II. Complex Issues and Other Matters
A. Prosecution related experience
1. From 1990 to 1993 I was designated as a "FIRREA" (Financial Institution Reform and Recovery Act) prosecutor, exclusively prosecuting financial institution crimes.
2. I was a member of the Department of Justice's Working Group for fraud cases at the Department's Office of Legal Education in 1997.
3. I have taught several times at the Attorney General's Advocacy Institute (National Advocacy Center), instructing there as a "group leader" teaching the realistic application of rules of evidence and conducting courtroom-setting exercises.
B. Legal issues examples
1. First bank fraud case in nation wherein the defendant advocated insanity at trial.
2. First indictment of violation of federal agency orders.
3. First indictment in a full-fledged investigation and prosecution of adulteration of food products (milk) pursuant to Title 21, United States Code, Sections 331 and 333.
4. Several death penalty eligible cases, and two cases certified for seeking death.
5. I have successfully admitted into evidence, prior statements of a murdered witness, under the revised Federal Rules of Criminal Procedure rule that allows hearsay, if the witness is unavailable and the defendant(s) caused the unavailability.
6. Constitutional question regarding the applicability of the federal death penalty in the Commonwealth of Puerto Rico.
C. Leadership and mentoring
1. In the Northern District of Texas, and especially in the District of Puerto Rico, I was assigned to instruct new Assistant U.S. Attorneys and assist them in prosecutions, and to evaluate their case preparation and advocacy.
2. I was designated as a mentor for the junior Assistant United States Attorneys in the District of Puerto Rico. The mentor program is designed to have a mentor available to provide advice about indictments, the use of certain statutes, procedures in hearings and trials, etc.
3. I was the Office of Professional Responsibility contact in the U.S. Attorney's Office for the District of Puerto Rico. I functioned at times as the head of the Misdemeanor Division in the district attorney's office. As a bank officer, I supervised two to three trainees at a time who were detailed to the Loan Review division.
4. In early 1997, I was selected to be the Assistant Director in the Office of Legal Education for criminal programs.
III. Civil Enforcement Litigation
The following enforcement actions are examples of the type of civil cases that I litigated as a Trial Attorney for the Securities and Exchange Commission:
1. SEC v. Digital Lightwave, Inc., MD-FL, involved an earnings management scheme, that is, a fraudulent scheme to wrongfully recognize revenue to inflate the company's earnings and thus its stock value.
2. SEC v. Internet Capital Holdings, Inc., et al., SD-FL, involved a fraudulent scheme to raise monies by representing that it was an "Internet incubator" that held equities in various Internet/high technology companies. The defendants claimed that these companies were going public (to soon be traded on the stock market) and thus would increase the investment in Internet Capital Holdings.
3. In re W.R. Grace Company, Inc. defendants, SEC Administrative Proceeding, Washington, D.C., wherein the defendants created reserves in one of Grace's subsidiary companies, utilizing the reserves to manage its earnings and thus affect the value of the company stock.
4. SEC v. Medical Research Industries, Inc., SD-FL, wherein the defendants fraudulently touted purported medical industry-breakthrough cures for various illnesses and concerns, and raised $52 million via several private placement memorandum offerings.
5. SEC v. Physicians Guardian, Inc., et al., MD-FL, involved fraud in the offer and sale of unregistered securities in the form of undivided interests in an investment trust, which was allegedly purchasing a medical malpractice insurance company. The defendants misrepresented a variety of points about the insurance company, including its viability, financial condition, and engagements and contracts.
6. SEC v. Christopher Hanna, SD-FL, in which a stockbroker engaged in an unauthorized trades/embezzlement scheme regarding clients' funds at a stock brokerage, by transferring monies to South American and Caribbean accounts and laundering monies by a series of further transfers. Hanna utilized fictitious account statements to conceal the scheme, and as a further cover, engaged in unauthorized trades to generate profits to return a portion of embezzled funds to clients' accounts.
7. SEC v. Americash-Inc.com, Inc., et al., SD-FL, defendants raised approximately two million dollars in five months by misrepresenting that investments would fund "payday advance" loans. The corporate defendants and the principal are enjoined from fraudulent offerings or sales of securities, and their assets are frozen pending accountings from the court-appointed Receiver for the companies.
8. SEC v. AFG, Inc, et al., SD-FL, defendants raised and took over $50 million from investors in scheme involving promissory notes and international transfer of funds.
