Watchdog Bytes

Gas from beans scheme a scam, SEC says

There was more than one stinky thing about a Texas biofuel company's scheme to turn beans into gas, the Securities and Exchange Commission says. The central fraud, the SEC said, was the company's claim that it had a plant that could produce 5 gallons of gas from a single bushel of soybeans. He could produce said gas, the company claimed, for 50 cents a gallon. The company's CEO, John H. Rivera, also misled people into thinking that a prominent industry figure and investment banker were involved in the company, according to the federal agency. Rivera's claims were intended to "pump up" interest in his U.S. Sustainable Energy Corp. so he could dump stock and make a profit. A federal judge this week granted the SEC summary judgment against Rivera and barred him for life from trade in penny stocks, Forbes and other publications reported.  

Would a master criminal really take out fradulent loan for a laundromat?

Say, theoretically, you were going to take $3.2 million in a fake loan.
How high up on the list of things you’d buy would a laundromat be?
This is the question that will haunt Watchdog for some time. 
A federal grand jury in Dallas wrung out a four-count indictment this week charging three individuals, Vathany Teng, Lina Ma and Jerry Goh each with one count of conspiracy to commit bank fraud and two substantive counts of bank fraud in relation to a loan fraud scheme they allegedly ran in the Dallas area from August 2007 to April 2008.
In addition, defendant Jerry Goh, a lawyer, is also charged with one count of witness tampering.  All three defendants are expected to surrender, presumably in nicely laundered clothing, to federal authorities and appear before U.S. Magistrate Judge Irma C. Ramirez. 
The part we don’t get is that the federal indictment says they conspired together to get a bank loan for $1.835 million for a laundromat and two other loans for $1.3 million for 31 lots in an Irving subdivision.
While these folks are presume innocent, most of the laundromats we know aren’t worth a cool million.
           If convicted, the conspiracy to commit bank fraud and each of the substantive bank fraud counts carry a maximum statutory sentence of 30 years in prison and a $1 million fine.  The witness tampering count, upon conviction, carries a maximum statutory sentence of 20 years in prison and a $250,000 fine.  Restitution could also be ordered.

-- Darren Barbee

State veterinarian agency has been such a naughty board

The state vet board, like a cute little puppy not quite hitting the paper, made some mistakes when it  come to depositing enforcement actions against veterinarians in its records.
The Texas Board of Veterinary Medical Examiners didn’t know, as an example, how many of its  licensees are participating in a peer assistance program. The peer assitance program is for vets and students who have job-impairing mental health, illnesses, alcohol or drug problems. (The board says it has improved how it tracks folks in the program.)
A State Auditor’s Office report also found the board didn’t keep track the complaints it received and couldn’t say for sure whether what they reported was accurate.
Inaccuracies included:
*Number of jurisdictional complaints received
*Number of Complaints Resolved
*Average time for complaint resolution (in days)
*Percentage of complaints resulting in disciplinary action

The board says its improved all of that. Also, it’s such a good board, yes it is.

-- Darren Barbee

Seven Texans among recently killed military personnel

AIR FORCE

Tech. Sgt. Daniel L. Douville, 33, of Harvey, La., died June 26 as a result of injuries suffered from an  improvised explosive device on the border of the Nad 'Ali district of Helmand province, Afghanistan. He was assigned to the 96th Civil Engineer Squadron, Eglin Air Force Base, Fla. 

ARMY

Two soldiers died July 7 in Baghdad, Iraq, of injuries suffered when insurgents attacked their convoy using an improvised explosive device. They were assigned to 145th Brigade Support Battalion, 116th Cavalry Heavy Brigade Combat Team, Post Falls, Idaho. Killed were: Spc. Nathan R. Beyers, 24, of Littleton, Colo. and Spc. Nicholas W. Newby, 20, of Coeur d'Alene, Idaho.

Three soldiers died July 5 in Paktia province, Afghanistan of injuries suffered when enemy forces attacked their unit with an improvised explosive device.  The soldiers were assigned to the 709th Military Police Battalion, 18th Military Police Brigade, 21st Theater Sustainment Command, Hohenfels, Germany. Killed were: Staff Sgt. Joshua A. Throckmorton, 28, of Battle Creek Mich.; Spc. Jordan C. Schumann, 24, Port Saint Lucie, Fla.; and Spc. Preston J. Suter, 22, Sandy, Utah.

Three soldiers died June 29 in Badrah, Iraq, of wounds suffered when enemy forces attacked their unit with indirect fire. They were assigned to 2nd Squadron, 3rd Armored Cavalry Regiment, Fort Hood, Texas. Killed were: Capt. David E. Van Camp, 29, of Wheeling, W.Va.; Capt. Matthew G. Nielson, 27, of Jefferson, Iowa; and Spc. Robert G. Tenney Jr., 29, Warner Robins, Ga.

Two soldiers died June 25, at Kunar province, Afghanistan of wounds suffered when enemy forces attacked their units with small arms fire. Killed were: 1st. Lt. Dimitri A. Del Castillo, 24, of Tampa, Fla.  He was assigned to the 2nd Battalion, 35th Infantry Regiment, 3rd Brigade Combat Team, 25th Infantry Division, Schofield Barracks, Hawaii; and Staff Sgt. Nigel D. Kelly, 26, Menifee, Calif. He was assigned to 3rd Brigade Special Troops Battalion, 3rd Heavy Brigade Combat Team, 25th Infantry Division, Schofield Barracks, Hawaii.

Two soldiers died June 26, in Diyala province, Iraq, of wounds suffered when enemy forces attacked their unit with an improvised explosive device.  They were assigned to the 4th Squadron, 9th Cavalry Regiment, 2nd Brigade Combat Team, 1st Cavalry Division, Fort Hood, Texas. Killed were: Staff Sgt. Russell J. Proctor, 25, of Oroville, Calif.; and Pfc. Dylan J. Johnson, 20, of Tulsa, Okla.

Four soldiers died June 18 in Uruzgan province, Afghanistan of injuries suffered during a vehicle roll-over.  The soldiers were assigned to the 4th Battalion, 70th Armor Regiment, 170th Infantry Brigade Combat Team, Baumholder, Germany. Killed were: Sgt. 1st Class Alvin A. Boatwright, 33, of Lodge, S.C.; Sgt. Edward F. Dixon III, 37, of Whiteman Air Force Base, Mo., Sgt. Alan L. Snyder, 28, Worcester, Mass., and Spc. Tyler R. Kreinz, 21, Beloit, Wis.

Two soldiers died June 13 in Wasit province, Iraq, of wounds suffered when enemy forces attacked their unit with an improvised explosive device.  They were assigned to the 6th Squadron, 9th Cavalry Regiment, 3rd Brigade Combat Team, 1st Cavalry Division, Fort Hood, Texas. Killed were: Staff Sgt. Nicholas P. Bellard, 26, of El Paso, Texas; and Sgt. Glenn M. Sewell, 23, of Live Oak, Texas.

Sgt. Christopher P. Soderlund, 23, of Pineville, La., died July 9 in Logar province, Afghanistan, of wounds suffered when  enemy forces attacked his vehicle with rocket-propelled grenade fire.  He was assigned to 2nd Battalion, 30th Infantry Regiment, 4th Brigade Combat Team, 10th Mountain Division, Fort Polk, La.

Spc. Rafael A. Nieves Jr., 22, of Albany, N.Y., died July 10 in Paktika province, Afghanistan, of wounds suffered when enemy forces attacked his vehicle with small-arms and rocket-propelled grenade fires.  He was assigned to 1st Battalion, 506th Infantry Regiment, 4th Brigade Combat Team, 101st Airborne Division (Air Assault), Fort Campbell, Ky. 

Sgt. Steven L. Talamantez, 34, of Laredo, Texas, died July 10, in Al Amarah, Iraq, of injuries suffered when enemy forces attacked his unit with indirect fire.  He was assigned to the 3rd Battalion, 8th Cavalry Regiment, 3rd Brigade Combat Team, 1st Cavalry Division, Fort Hood, Texas.

Sgt. 1st Class Terryl L. Pasker, 39, of Cedar Rapids, Iowa, died July 9 in Panjshir province, Afghanistan, when enemy forces attacked his unit with small arms fire.  He was assigned to the 334th Brigade Support Battalion, 2nd Brigade Combat Team, 34th Infantry Division, Cedar Rapids, Iowa.

Sgt. Nicanor Amper IV, 36, of San Jose, Calif., died July 5 in Khowst, Afghanistan, of wounds suffered when enemy forces attacked his unit with a rocket propelled grenade.  He was assigned to the 6th Squadron, 4th Cavalry Regiment, 3rd Brigade Combat Team, 1st Infantry Division, Fort Knox, Ky.

Staff Sgt. Michael J. Garcia, 27, of Bossier City, La., died July 4 in Logar province, Afghanistan, of wounds suffered when insurgents attacked his unit using an improvised explosive device.  He was assigned to the 63rd Ordnance Battalion, 52nd Ordnance Group (Explosive Ordnance Disposal), 20th Support Command (CBRNE), Fort Polk, La.

Capt. Matthew G. Nielson, 27, of Jefferson, Iowa, died June 29, in Badrah, Iraq, of wounds suffered when enemy forces attacked his unit with indirect fire. He was assigned to 2nd Squadron, 3rd Armored Cavalry Regiment, Fort Hood, Texas.

Pfc. James A. Waters, 21, of Cloverdale, Ind., died July 1 at Kandahar province, Afghanistan, of wounds suffered when insurgents attacked his unit using an improvised explosive device. He was assigned to 1st Battalion, 32nd Infantry Regiment, 3rd Brigade Combat Team, 10th Mountain Division, Fort Drum, N.Y.

Spc. Nicholas P. Bernier, 21, of East Kingston, N.H., died June 25 at Landstuhl Regional Medical Center, Landstuhl, Germany, of injuries suffered June 22 when insurgents attacked his unit using small arms fire in Kherwar, Afghanistan.  He was assigned to the 2nd Battalion, 30th Infantry Regiment, 4th Brigade Combat Team, 10th Mountain Division, Fort Polk, La.

Staff Sgt. Donald V. Stacy, 23, of Avondale, Ariz., died June 28 in Kandahar, Afghanistan, of wounds suffered when insurgents attacked his unit with an improvised explosive device.  He was assigned to the 1st Battalion, 505th Parachute Infantry Regiment, 3rd Brigade Combat Team, 82nd Airborne Division, Fort Bragg, N.C.

Spc. Kevin J. Hilaman, 28, of Albany, Calif., died June 26, in Kunar province, Afghanistan, of wounds suffered when insurgents attacked his unit using small arms fire.  He was assigned to the 2nd Battalion, 35th Infantry Regiment, 3rd Brigade Combat Team, 25th Infantry Division, Schofield Barracks, Hawaii.

Spc. Matthew R. Gallagher, 22, of North Falmouth, Mass., died June 26 in Wasit province, Iraq, of injuries suffered from a non-combat related incident.  He was assigned to the 6th Squadron, 9th Cavalry Regiment, 3rd Brigade Combat Team, 1st Cavalry Division, Fort Hood, Texas. The circumstances surrounding the incident are under investigation.

Spc. Nicholas C. D. Hensley, 28, of Prattville, Ala. died June 24, in Landstuhl, Germany from injuries sustained in Kandahar, Afghanistan, on June 15 when enemy forces attacked his unit with an improvised explosive device.  He was assigned to the 4th Squadron, 4th Cavalry Regiment, 1st Heavy Brigade Combat Team, 1st Infantry Division, Fort Riley, Kan.

Spc. Levi E. Nuncio, 24, of Harrisonburg, Va., died June 22 in Kunar province, Afghanistan, of wounds suffered when enemy forces attacked his unit with small arms fire.  He was assigned to the 2nd Battalion, 35th Infantry Regiment, 3rd Brigade Combat Team, 25th Infantry Division, Schofield Barracks, Hawaii.

Sgt. Steven L. Talamantez, 34, of Laredo, Texas, died July 10, in Al Amarah, Iraq, of injuries suffered when enemy forces attacked his unit with indirect fire.  He was assigned to the 3rd Battalion, 8th Cavalry Regiment, 3rd Brigade Combat Team, 1st Cavalry Division, Fort Hood, Texas.

Pfc. Joshua L. Jetton, 21, of Sebring, Fla., died June 20 in Kunar province, Afghanistan, of wounds suffered when insurgents attacked his unit with small arms fire.  He was assigned to the 2nd Battalion, 27th Infantry Regiment, 3rd Brigade Combat Team, 25th Infantry Division, Schofield Barracks, Hawaii.

Sgt. James W. Harvey II, 23, of Toms River, N.J., died June 20 in Ghazni province, Afghanistan, of wounds suffered when insurgents attacked his unit with small arms fire.  He was assigned to the 2nd Battalion, 2nd Infantry Regiment, 3rd Brigade Combat Team, 1st Infantry Division, Fort Knox, Ky.

Pfc. Gustavo A. Rios-Ordonez, 25, of Englewood, Ohio, died June 20 in Kandahar province, Afghanistan, of wounds suffered when insurgents attacked his unit with an improvised explosive device.  He was assigned to the 4th Squadron, 4th Cavalry Regiment, 1st Heavy Brigade Combat Team, 1st Infantry Division, Fort Riley, Kan.

Pfc. Brian J. Backus, 21, of Saginaw Township, Mich., died June 18, in Kandahar province, Afghanistan, of wounds suffered when insurgents attacked his unit with small arms fire. He was assigned to the 2nd Battalion, 87th Infantry Regiment, 3rd Brigade Combat Team, 10th Mountain Division, Fort Drum, N.Y.

Spc. Scott D. Smith, 36, of Indianapolis, Ind., died June 17 at Khowst province, Afghanistan, of injuries suffered in a non-combat related incident.  He was assigned to the 81st Troop Command, Indiana Army National Guard, Indianapolis, Ind.

Spc. Marcos A. Cintron, 32, of Orlando, Fla., died June 16 at a medical facility in Boston, Mass., of wounds suffered June 6 at Baghdad, Iraq, when insurgents attacked his unit with indirect fire.  He was assigned to the 1st Battalion, 7th Field Artillery Regiment, 2nd Brigade Combat Team, 1st Infantry Division, Fort Riley, Kan.

Pvt. Ryan J. Larson, 19, of Friendship, Wis., died June 15 at Kandahar province, Afghanistan, of wounds suffered when insurgents attacked his unit with an improvised explosive device.  He was assigned to 1st Battalion, 5th Infantry Regiment, 1st Stryker Brigade Combat Team, 25th Infantry Division, Fort Wainwright, Alaska.

Pfc. Eric D. Soufrine, 20, of Woodbridge, Conn., died June 14 in Farah province, Afghanistan, of wounds suffered when insurgents attacked his unit using an improvised explosive device.  He was assigned to the 4th Battalion, 42nd Field Artillery Regiment, 1st Brigade Combat Team, 4th Infantry Division, Fort Carson, Colo.

Staff Sgt. Jeremy A. Katzenberger, 26, of Weatherby Lake, Mo., died June 14 in Paktika province, Afghanistan, of wounds suffered when insurgents attacked his unit with small arms fire.  He was assigned to the 1st Battalion, 75th Ranger Regiment, Hunter Army Airfield, Ga.

Capt. Michael W. Newton, 30, of Newport News, Va.,died June 11 at Faryab province, Afghanistan,of injuries suffered in a non-combat related incident. He was assigned to 1st Battalion, 84th Field Artillery Regiment, 170th Infantry Brigade Combat Team, Baumholder, Germany.

MARINES

Lance Cpl. Norberto Mendez Hernandez, 22, of Logan, Utah, died July 10 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 1st Battalion, 5th Marine Regiment, 1st Marine Division, Camp Pendleton, Calif.

Staff Sgt. Thomas J. Dodds Dudley, 29, of Tega Cay, S.C., died July 7 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to Marine Air Group 26, 2nd Marine Air Wing, II Marine Expeditionary Force, Marine Corps Air Station New River, Jacksonville, N.C.

Sgt. Chad D. Frokjer, 27, of Maplewood, Minn., died June 30 while conducting combat operations in Helmand province, Afghanistan. He was assigned to 1st Battalion, 5th Marine Regiment, 1st Marine Division, I Marine Expeditionary Force, Camp Pendleton, Calif. 

Cpl. Kyle R. Schneider, 23, of Phoenix, N.Y., died June 30 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 2nd Battalion, 8th Marine Regiment, 2nd Marine Division, II Marine Expeditionary Force, Camp Lejeune, N.C.

Lance Cpl. Mark R. Goyet, 22, of Sinton, Texas, died June 28 while conducting combat operations in Helmand province, Afghanistan. He was assigned to 3rd Battalion, 4th Marine Regiment, 1st Marine Division, I Marine Expeditionary Force, Twentynine Palms, Calif.

Lance Cpl. John F. Farias, 20, of New Braunfels, Texas, died June 28 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 1st Battalion, 5th Marine Regiment, 1st Marine Division, I Marine Expeditionary Force, Camp Pendleton, Calif.

Cpl. Michael C. Nolen, 22, of Spring Valley, Wis., died June 27 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 3rd Battalion, 2nd Marine Regiment, 2nd Marine Division, II Marine Expeditionary Force, Camp Lejeune, N.C. 

Gunnery Sgt. Ralph E. Pate Jr., 29, of Mullins, S.C., died June 26 while conducting combat operations in Helmand province, Afghanistan. He was assigned to 2nd Explosive Ordnance Disposal Company, 8th Engineer Support Battalion, 2nd Marine Logistics Group, II Marine Expeditionary Force, Camp Lejeune, N.C. 

Sgt. Marlon E. Myrie, 25, of Oakland Park, Fla., died June 25 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 2nd Battalion, 8th Marine Regiment, 2nd Marine Division, Camp Lejeune, N.C. 

Cpl. Gurpreet Singh, 21, of Antelope, Calif., died June 22 from wounds received while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 1st Battalion, 5th Marine Regiment, 1st Marine Division, Camp Pendleton, Calif.

Lance Cpl. Jared C. Verbeek, 22, of Visalia, Calif., died June 21 from wounds received while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 1st Battalion, 5th Marine Regiment, 1st Marine Division, Camp Pendleton, Calif.

Pfc. Josue Ibarra, 21, of Midland, Texas, died June 19 from wounds received while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 1st Battalion, 12th Marine Regiment, 3rd Marine Division, Kaneohe Bay, Hawaii.

Sgt. Mark A. Bradley, 25, of Cuba, N.Y., died June 16 while conducting combat operations in Helmand province, Afghanistan. He was assigned to 3rd Battalion, 2nd Marine Regiment, 2nd Marine Division, II Marine Expeditionary Force, Camp Lejeune, N.C.

Lance Cpl. Jason D. Hill, 20, of Poway, Calif., died June 11 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 3rd Battalion, 4th Marine Regiment, 1st Marine Division, I Marine Expeditionary Force, Camp Pendleton, Calif.

Lance Cpl. Sean M. N. O'Connor, 22, of Douglas, Wyo., died June 12 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 1st Battalion, 5th Marine Regiment, 1st Marine Division, I Marine Expeditionary Force,Camp Pendleton, Calif.

Lance Cpl. Joshua B. McDaniels, 21, of Dublin, Ohio, died June 12 while conducting combat operations in Helmand province, Afghanistan.  He was assigned to 2nd Combat Engineer Battalion, 2nd Marine Division, II Marine Expeditionary Force, Camp Lejeune, N.C.

Lance Cpl. Nicholas S. O'Brien, 21, of Stanley, N.C., died June 9 while conducting combat operations in Helmand province,Afghanistan.  He was assigned to the 1st Battalion, 5th Marine Regiment, 1st Marine Division, I Marine Expeditionary Force, Camp Pendleton, Calif.

-- Darren Barbee

Is U.S. cash safe? $5.4 billion protected by the equivalent of a condom

Take a lesson from the Bureau of Printing and Engraving: If you’re going to make a mistake, might as well make it one on a collosal scale.
The federal money makers left 54.4 million “NexGen” $100 notes sitting around unprotected (apart  from a nice plastic wrap), according to a report by the Treasury Department’s inspector general. That’s $5,440,000,000 worth of Benjamins, some of which were sitting there for nine months at a plant in Washington, D.C.
The inspector general noted deficiencies in physical security over the NexGen $100 notes and work-in-process sheets at both the Eastern Currency Facility in D.C. and Western Currency Facility in Fort Worth.
Still, this is the government we’re talking about. It’s not like they’re that interested tight controls on money. The cash at Washington’s printing facility should have been stored in a locked security cage, the IG said. BEP said the bills were stored in a production area because of limited storage capacity.
At the Fort Worth printing center, officials didn’t keep security videos long enough. The bureau requires recordings to be kept for seven years, but Fort Worth kept them for one to three years.

NOTE: There seems to be some confusion about how much money is involved here. There were 54.4 million bills that are each worth $100. When we (meaning BARBEE) multiply 54.4 million by 100, we get 5.4 billion. However, we (again, Barbee) have the math skills of a person without math skills. 

-- Darren Barbee

Sexy black dancers not good enough for Texas club manager, feds say in discrimination suit

A nightclub manager didn’t want African American women as waitresses or dancers at a Houston club and they were forced to quit because of racism, the U.S. Equal Employment Opportunity Commission contends in a lawsuit.
In fact, the club was more interested in Hispanics. In its print advertisements, Michael’s International Club markets itself as “Houston’s Premier Latin Club,” featuring “Chicas Locas.” (That’s Spanish for Crazy Girls or maybe crazy chickens. Our Spanish is a little rusty.)
The EEOC claims the company official violated federal law when he discriminated against black waitresses.
Cue the Tarantino dialogue: The company official directly called at least one of the black waitresses “a n----, and told her “We don’t need any more n-----s in this club, we have enough,” the EEOC claims.
According to the EEOC’s suit, beginning at least in September 2007, the management of Michael’s International Club prevented African-American waitresses from working their scheduled shifts when the company official visited the club from corporate headquarters near Dallas.
“Bert Stair, vice president  and secretary of both Michael’s and parent corporation Burch Management, did  not like African-American waitresses and dancers in his club,” the EEOC said in a press release. Burch Management Company runs about a dozen clubs in Texas and has held local job fairs including, a couple of years ago, one called from "Jobless to Topless."
Michael's International MySpace page says it “recently changed its theme to Latin due to popular demand. In doing so we now play the best in reggaeton, latin pop, latin rock, salsa, merengue, bachata and cumbia. But of course we still play all the best in 80's music every third girl. We have the sexiest dancers in all of Houston waiting to entertain your needs.” 

A message left at the company’s Dallas office was not returned.

(Note: Scientific research, we have heard, has shown that black women are extremely hot.)

-- Darren Barbee