Men Plead Guilty to $80 Million Conspiracy

The Justice Department announced, on Oct 11, that eight individuals have been charged in connection with an $80 million conspiracy to commit fraud against the Export-Import Bank of the United States (Ex-Im Bank). ^[1]

The scheme involved the fraudulent sale and shipment of U.S. exports to the Philippines, and was initially uncovered by Ex-Im Bank staff; after the Bank's investigation the matter was referred to the Department of Justice (DOJ).^[2]

The men charged in the case are Daniel Curran; Edward Chua; Jaime Galvez; Robert Delgado and David Villongco have all pleaded guilty in the case.^[3] Four of the men are exporters, and one is a freight-forwarder. The defendants have all agreed to serve time in prison, with maximum sentences of up to 40 years.^[4] Curran and Chua pleaded guilty to conspiracy to defraud the United States and mail fraud; Villongco pleaded guilty to conspiracy to defraud the government with respect to claims and mail fraud.^[5]

Galvez, pleaded guilty on Oct. 5, 2007, in U.S. District Court for the District of Columbia to destruction or concealment of records in a criminal investigation and perjury.^[6] Robert Delgado pleaded guilty to conspiracy to defraud the government with respect to claims and mail fraud.^[7]

Additional defendants have been charged, including Christina Song, who was charged with conspiracy to defraud the United States and mail fraud.^[8] Marilyn G. Ong and her nephew Ildefonso Ong Jr. both from the Philippines were charged with one count of conspiracy to defraud the United States and to commit offenses against the United States; four counts of submitting false statements to Ex-Im Bank; four counts of mail fraud; and nine counts of money laundering.^[9] The indictment also charged Marilyn Ong with obstructing Ex-Im Bank's investigation of the fraudulent scheme.^[10]

One of the most commonly charged Import-Export crime is covered under 18 U.S.C § 541, which is the entry of goods falsely classified. It is defined as occurring when a person knowingly effects any entry of goods, wares, or merchandise, at less than the true weight or measure thereof, or upon a false classification as to quality or value, or by the payment of less than the amount of duty legally due, shall be fined under this title or imprisoned not more than two years, or both.

However here the government has decided to charge the defendants with conspiracy, this allows the government to charge all of the defendants involved with similar crimes. Many times, a defendant will be charged with conspiracy along with the actual crime the defendant is accused of committing.

18 U.S.C. § 371 covers conspiracy and that law states that if two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each shall be fined under this title or imprisoned not more than five years, or both. If, however, the offense, the commission of which is the object of the conspiracy, is a misdemeanor only, the punishment for such conspiracy shall not exceed the maximum punishment provided for such misdemeanor.

Federal criminal defense attorney Douglas McNabb has previously written about the crime of conspiracy, here.

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^[1] U.S. Ex-Im Bank, Press Release, Eight Charged in $80 Million Conspiracy to Commit Fraud Against the Export Import Bank of the United States, U.S. Export Import Bank, October 11, 2007, available at http://www.exim.gov/pressrelease.cfm/94742A17-A0DB-D003-258FD334F7AA201C/ (last visited October 13, 2007).
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.
^[9] Id.
^[10] Id.