US Atty Press Release|Sep 2010|ARIZONA BANK THAT RECEIVED TARP FUNDS AGREES TO FORFEIT PROFITS FROM PROCESSING ONLINE GAMBLING PAYMENTS

[Note: According to the Associated Press, this 2010 settlement was negotiated by Louis Freeh]

According to the Complaint and Stipulation and Order of Settlement filed in Manhattan federal court:

Between January and May 2009, more than $13,335,248.91 in funds traceable to Pokerstars, an online gambling company based in the Isle of Man, and other offshore online gambling companies were deposited in a bank account at GOLDWATER BANK held by ALLIED WALLET, INC. These funds were traceable to several sources, including wire transfers from outside the United States by individuals and entities who knew that (a) the funds involved represented the proceeds of the illegal transmission of gambling information and the operation of an illegal gambling business, (b) the transfers were made in order to promote the carrying on of an illegal gambling business, and (c) the transfers were designed in part to conceal or disguise the nature, location, source, ownership, and control of the proceeds of the illegal transmission of gambling information and operation of an illegal gambling business.

During this same time period, ALLIED WALLET, INC., paid GOLDWATER BANK for processing automated clearing house (“ACH”) transactions, including payments in the form of ACH transactions to and from the bank accounts of online gamblers located in the United States who were using Pokerstars.com and other gambling websites to engage in online gambling. These ACS transactions typically involved payments from players to the gambling websites for credits used in online gambling and payments to the playersfor their online gambling winnings.

* * *

On August 16, 2010, ALLIED WALLET, INC., ALLIED SYSTEMS, INC., and their owner AHMAD KHAWAJA entered into a settlement agreement requiring them to forfeit the $13,335,248.91 traceable to Pokerstars and other offshore online gambling companies.

Read the US Attorney press release

Mother Jones|Dec 2019|Who’s Really Behind a $1 Million Donation to Trump’s Inauguration?

by Dan Friedman, December 5, 2019

The Justice Department on Tuesday announced it had indicted eight men for conspiring to illegally funnel $3.5 million to political committees supporting Hillary Clinton’s 2016 presidential bid. Prosecutors say the money came from George Nader—a businessman who was was recently charged with trafficking a child for sexual purposes. Nader was a key figure in the Trump-Russia scandal. According to special counsel Robert Mueller, he helped arrange meetings between Trump advisers and Russian emissaries. But this week’s indictment leaves a key question unanswered: Was Nader also the source of a $1 million donation from one of the defendants to Donald Trump’s inaugural committee?

According to the indictment, Nader conspired with Andy Khawaja, the CEO of an embattled online payment processing company, in a plot to provide massive campaign donations to Democratic groups. Khawaja allegedly made the contributions in his own name and through his wife and his company, and was then reimbursed by Nader. Six Khawaja associates were also charged with acting as straw donors as part of the scheme. It’s illegal to make political campaign donations in someone else’s name. Such charges are among the 53 counts in Tuesday’s indictment.

In May, Khawaja and his firm agreed to pay the Federal Trade Commission $110 million to settle charges that the company knowingly processed payments for online firms—including sketchy debt collection and pornography outfits—that were engaged in fraud. Khawaja also faces an ongoing federal criminal investigation into his company’s conduct, according to people with knowledge of the probe. That investigation is apparently separate from the campaign finance case. Khawaja, who did not respond to questions about this probe, told Mother Jones in October that he had retained a high-powered legal team that includes former FBI director Louis Freeh and two former lawyers for OJ Simpson: Robert Shapiro and Alan Dershowitz. Dershowitz, a prominent defender of Trump, said Tuesday that he cannot comment on who he represents. Freeh and Shapiro did not respond to inquires.

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DOJ press release

Chicago Tribune|Aug 2018|Prominent political donor helps pornographers, payday loan debt collectors and offshore gambling operations

By JAKE PEARSON AND JEFF HORWITZ
ASSOCIATED PRESS |
AUG 02, 2018 | 6:33 AM
| NEW YORK

One customer was a debt collector that threatened to jail people if they didn’t pay back loans that they never took out. Another was an offshore gambling operation that hid bets behind innocuous-sounding websites, including one dedicated to orange cats. A third was a phone-sex business catering to men with diaper fetishes or fantasies of raping women.

Ahmad “Andy” Khawaja made his fortune in online payment processing for a host of companies, providing a key conduit in e-commerce for “high risk” merchants by helping route customers’ credit card purchases to banks. And recently Khawaja has shared that wealth in the form of multimillion-dollar political donations, first to Hillary Clinton and then to Donald Trump.

But thousands of internal company documents obtained by The Associated Press reveal that Khawaja’s company, Allied Wallet Inc., has profited from guiding dubious businesses past the gates of the banking system. The records, which include email conversations as well as business and financial documents, show Allied Wallet executives helped deploy sham websites and dummy companies to hide these businesses’ tracks, even in cases where Allied Wallet’s own staff deemed the underlying business activities to be “very, very illegal.”

The records show that Allied Wallet also took extraordinary steps to disguise how it processed payments for online gamblers — a bold foray back into an industry that just years earlier had involved Khawaja in an FBI investigation.

To settle claims from a 2010 federal probe involving the website PokerStars, Khawaja enlisted former FBI Director Louis Freehto negotiate with federal prosecutors in New York and write anti-money laundering policies for Allied Wallet, according to court records.

Since then, Khawaja appears to have avoided processing payments for U.S. bettors, the records show. But the documents show that his company has accepted and obscured international business from GVC Holdings PLC, one of the most prominent gambling outfits in the online industry, often in places where online gambling is prohibited or highly regulated.

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FTC press release

 

 

Law.com|Jan 2020|VW Declined to Hire Louis Freeh for $15M. Now He’s on the Other Side—and VW Is Crying Foul

By Jenna Greene | January 15, 2020 at 01:29 AM

Four years ago, former FBI Director Louis Freeh was on the verge of being hired by Volkswagen to run its diesel emissions litigation—work for which he wanted a guaranteed $15 million over three years, plus 10% of the “savings the company and its subsidiaries yield and/or the costs saved by settlements,” according to a draft engagement letter.

In the end, he didn’t get the job—nor did VW bite a year later when he suggested that the automaker “keep me in mind for any future role, such as a monitor.”

Now, Freeh—founder and chairman of consulting firm Freeh Group International Solutions and senior managing partner of affiliated law firm Freeh Sporkin & Sullivan—has turned up on the other side. He’s serving as an expert witness for plaintiffs who opted out of VW’s overarching civil settlement in 2016 and are suing the company instead.

VW lawyers from Sullivan & Cromwell are crying foul.

In a motion to disqualify filed on Monday in San Francisco federal court, the VW team led by Robert Giuffra Jr., Sharon Nelles, William Monahan, John McCarthy and Michael Steinberg argue that “Mr. Freeh’s conflict of interest and receipt of confidential information disqualify him from serving as an expert adverse to defendants.”

Freeh “engaged in extensive privileged and confidential discussions with Volkswagen’s senior-most executives and counsel about the same diesel matters underlying this lawsuit, including discussing key documents and legal strategy,” they continued. “Mr. Freeh’s contemplated mandate would have included a role overseeing both this case and the exact same criminal matter that is the subject of his expert opinion.”

Freeh in an email said he was out of the country this week and “can only refer you to my counsel here. As with any motion, there are two sides to the matter.”

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El Mundo|Dec 2019|Fridman ficha a un ex jefe del FBI para su defensa en el ‘caso ZED’

[Unfortunately Freeh’s work for Alfa Bank founder Mikhail Fridman in Spain has not been covered by the English-language press]
ESTEBAN URREIZTIETA / RAQUEL VILLAÉCIJA
Madrid
Lunes, 23 diciembre 2019 – 02:41

El magnate ruso Mikhail Fridman ha contratado al ex director del FBI Louis J. Freeh para reforzar su defensa en la investigación que sigue contra él la Audiencia Nacional en el marco del denominado caso Zed.

El empresario, propietario de la cadena de supermercados Dia, con un 70% del capital, ha encomendado a Freeh, máximo responsable de la Oficina Federal de Investigación de Estados Unidos entre 1993 y 2001, un extenso informe en el que analiza las acusaciones de la Fiscalía Anticorrupción contra él por delitos contra el mercado, administración desleal e insolvencia punible.

Según el peritaje elaborado por el bufete Freeh Sporkin & Sullivan LLP (FSS), dirigido por el ex jefe del FBI durante el mandato de Bill Clinton, que llegó a calificarlo públicamente cuando lo nombró como «una leyenda en la defensa de la ley», el dueño de Dia no urdió ninguna trama para forzar la quiebra de la empresa tecnológica Zed Worldwide.

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Google translate

Washington Times|Dec 2019|Louis Freeh is the real culprit in the Richard Jewell story

– – Wednesday, December 18, 2019

If you want to know what really happened in the controversial case of Richard Jewell, who was a suspect in the 1996 bombing at the Olympics in Atlanta, don’t watch the new movie produced by Clint Eastwood.

Gripping though “Richard Jewell” is, it wrongly blames FBI case agents for bullying Jewell and leaking his name to the press as a suspect. The real culprit, whose misguided intervention and stubbornness led to the Richard Jewell debacle, was Louis Freeh, then the FBI director.

When a pipe bomb exploded at Centennial Olympic Park in Atlanta, the FBI became interested in Jewell, a security guard who had alerted police to a suspicious green backpack. Jewell appeared on TV to describe how he tried to evacuate the area before the bombing, which killed two people and injured over 100.

Citing unnamed sources, the Atlanta Journal-Constitution published a story saying Jewell was a suspect in the FBI’s investigation. That afternoon, FBI agents Don Johnson and Diader Rosario drove to Jewell’s apartment and asked him to come to the field office. If Jewell could clear up questions to the agents’ satisfaction, they planned to drop their interest in him.

Jewell agreed. But as the agents were reviewing Jewell’s background with him, Mr. Freeh called David W. “Woody” Johnson Jr., the FBI’s special agent in charge in Atlanta. Mr. Johnson was in his office down the hall from the room where Jewell was being questioned. With him were other SACs and Kent B. Alexander, the U.S. attorney in Atlanta.



Mr. Freeh said the agents should read Jewell his Miranda rights.

Any fresh agent out of the FBI Academy at Quantico knows that, based on a long line of court rulings, a suspect must be read his Miranda rights if he is in custody or is about to be arrested. Yet in Jewell’s case, neither was true.

As revealed in my book “The Secrets of the FBI,” Mr. Johnson pointed this out to Mr. Freeh, and Mr. Alexander told Mr. Freeh on the speaker phone he agreed with Mr. Johnson. But the director was adamant.

Robert M. “Bear” Bryant, who was about to be named deputy director under Mr. Freeh, was with the director when he made the call. A lawyer, Mr. Bryant also made the point to Mr. Freeh that Miranda rights were not required. Mr. Freeh wouldn’t listen and demanded that agents read Jewell his rights.

Woody Johnson walked down the hallway and pulled out the two agents who were successfully interviewing Jewell. He passed along Mr. Freeh’s instruction. The agents went back to the conference room and read Jewell his rights. Jewell said he would like to call an attorney, and that ended the interview.

“If we could have continued with Jewell, we could have confirmed what he told us and cleared him more quickly,” Woody Johnson told me.

Not until seven months after the incident did Mr. Freeh acknowledge in congressional testimony his own role in the fiasco. Pointing out that he had been a federal judge, Mr. Freeh said, “It is a matter of legal speculation whether a court would have ruled that Miranda warnings were required in Mr. Jewell’s case.”

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Politico|Mar 2019|Fresh court battle could expose more details in Acosta’s controversial Epstein plea deal

By JOSH GERSTEIN 03/06/2019 11:56 AM EST Updated 03/06/2019 11:04 PM EST

NEW YORK — A federal appeals court panel signaled Wednesday that it is strongly inclined to set in motion a process likely to expose more sordid details in the politically charged scandal surrounding Jeffrey Epstein, the wealthy financier and philanthropist whose relatively cushy plea deal on underage-sex charges a decade ago has become a political liability for Labor Secretary Alex Acosta.

Sparks flew during arguments before the 2nd Circuit Court of Appeals in Manhattan as a lawyer for Virginia Roberts Giuffre, an Epstein accuser, repeatedly reiterated his client’s claim leveled several years ago that the Harvard law professor Alan Dershowitz not only defended Epstein but also had sex with some of the women Epstein victimized.

Dershowitz says records produced during the civil litigation — but still under seal — will show both women to be serial fabricators who have repeatedly lied about him and others and whose stories are often so outlandish that they cannot possibly be true.

“I categorically and unequivocally deny it all,” Dershowitz said in an interview Tuesday. “I have volunteered to testify … to prove in court that they were perjurers.”

Dershowitz is still fuming that Giuffre’s lawyers included her allegation against him in a court filing in 2014 that was first discovered and published by POLITICO. He retained former FBI Director Louis Freeh to investigate the claims. Freeh said evidence “directly contradicted” several of the accusations against him.

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The New Yorker|Jul 2019|ALAN DERSHOWITZ, DEVIL’S ADVOCATE

By Connie Bruck, July 29, 2019

When Giuffre’s allegations [that Dershowitz sexually assaulted her] first became public, the Daily News quoted Dershowitz as saying that he never had a massage at Epstein’s home. After the story came out, he quickly asserted that he did have a massage there—though he said that it was given by a “fifty-year-old Russian woman named Olga,” and added, “I kept my underwear on.” In any case, he says, during the years that Giuffre lived with Epstein, he never met her; his travel records demonstrate that it was impossible. I examined the records for a few hours, though I wasn’t allowed to copy them. Every day had been accounted for, and in most cases there was documentation—a credit-card bill, a public appearance. But some of the dates were supported by only a handwritten datebook entry (“New York”), or by a telephone call from a landline, which could have been made by anyone at the address. And Dershowitz lived in New York from September, 2000, to June, 2001, when Giuffre was often with Epstein at his mansion. His schedule contains notations about meetings with “Jeffrey.”

In 2015, Dershowitz hired a security firm, led by the former F.B.I. director Louis Freeh, to look into Giuffre’s claims. Dershowitz provided a one-page summary of the inquiry, which said that investigators had “found no evidence to support the accusations.” The summary notes that Giuffre described seeing Al Gore and Bill Clinton on Epstein’s island, and said that Secret Service records showed no evidence of such a visit. (Gore and Clinton deny visiting the island, although Clinton has acknowledged taking multiple trips on Epstein’s plane.) The summary points to no other specific discrepancies. When The New Yorker asked Dershowitz to see supporting documentation for the report, he said that he didn’t have it; Freeh’s firm did not respond to requests for substantiation. Giuffre told me that Freeh’s investigators had never interviewed her.

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Haaretz|Nov 2019|Alan Dershowitz, Former FBI Director Lobbying for Sanctioned Israeli Billionaire

Nov 06, 2019 8:50 PM

Alan Dershowitz, an ally of U.S. President Donald Trump, and former FBI director Louis Freeh have officially registered with the U.S. government as lobbyists for Dan Gertler, an Israeli billionaire known for shady deals and corruption accusations.

The filing, which was first reported by U.S. network CNBC, will allow the two major Washington figures to advocate on behalf of Gertler, who has been under sanctions from the U.S. treasury since 2017.

The decision to hire lobbyists is not surprising in itself. “He’s an international businessman and it’s very difficult to do business internationally” when under sanctions, Peter Jones, a campaign leader at international NGO Global Witness, told Al-Monitor.

The place of both Dershowitz and Freeh in Washington and their relationship to the current administration are significant, however.

Louis Freeh, who is also an attorney, was FBI director between 1993 and 2001. He registered to act as a lobbyist for the first time in March this year, but is known to have ties with other controversial figures. This includes former New York mayor and Trump lawyer Rudy Giuliani, whom Freeh hired to pressure the Romanian president, according to a report in The Independent, in connection with Hunter Biden.

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Bloomberg|Nov 2019|Dershowitz, Freeh Register to Lobby for Sanctioned Billionaire

High-profile defense attorney Alan Dershowitz and Louis Freeh, a former FBI director, have registered to lobby for an Israeli billionaire investor who’s been sanctioned by the U.S. government.

Dan Gertler, who the Treasury Department said amassed his fortune through “corrupt deals” in the Democratic Republic of Congo, hired Freeh Sporkin & Sullivan LLP to lobby Treasury’s Office of Foreign Assets Control, according to a registration statement it filed with Congress today. The filing was first reported by CNBC.

The Trump administration included Gertler in a crackdown it announced in December 2017 on human rights abusers and corrupt actors around the world. OFAC has also sanctioned 34 individuals and entities it says are tied to him, freezing their assets and shutting them out of the U.S. financial system.

The lobbying registration was required because his attorneys will be making legal arguments before a federal agency rather than a court, Dershowitz said. “You have to register,” he said, adding that he will be acting as a legal consultant. “I’m not a lobbyist.“

Freeh’s office declined to comment. A call made after business hours to Gertler’s office in Israel was not immediately returned.

For Freeh, a former federal judge who served as director of the Federal Bureau of Investigation from 1993 to 2001, Gertler is his second lobbying client, federal records show. He also lobbies for KGL Investment Co., a Kuwait-based private equity firm whose chief executive officer, Marsha Lazareva, faces ongoing legal difficulties in the Gulf country. She was freed from prison in May after a 2018 sentence for misusing and embezzling public funds was overturned, but still faces other charges in the emirate, and remains on bail in the country.

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