The Anatomy of Public Corruption

CONTRA COSTA COUNTY LAW ENFORCEMENT Out with the bad and in with the better

Senior Contra Costa County Law Enforcement Official and Concord Private Investigator Indicted
Two Alleged to Have Engaged in a Spectrum of Corrupt Activities, Including Stealing Methamphetamine and Marijuana from Evidence and Selling it for Profit, Protection of a Prostitution Establishment, and Armed Robberies of Prostitutes

U.S. Attorney’s Office August 15, 2011
  • Northern District of California (415) 436-7200
SAN FRANCISCO—A federal grand jury in San Francisco indicted Norman Wielsch of Antioch, Calif., and Christopher Butler of Concord, Calif., on Aug. 8, 2011, for federal narcotics offenses, civil rights violations, and extortion, United States Attorney Melinda Haag announced.
According to the indictment, Wielsch, 50, and Butler, 50, are alleged to have participated together in criminal activities made possible by Wielsch’s position as the commander of the Contra Costa County Narcotics Enforcement Team (CNET). The indictment alleges the following abuses of Wielsch’s position, in which Butler, a private investigator based in Concord, participated and assisted:
  • Wielsch, aided and abetted by Butler, stole from county evidence facilities methamphetamine and marijuana that had been seized in CNET operations. Wielsch and Butler sold some of the stolen narcotics and intended to sell the remainder. The quantity of methamphetamine sold by Wielsch and Butler was sufficiently large to trigger a mandatory minimum term of 10 years’ imprisonment, if proven at trial.
  • Wielsch and Butler participated together in a phony “sting” operation in which they falsely detained a person under the guise of a legitimate law enforcement operation, conducted warrantless searches, and kept narcotics that were taken from the person during the “sting.”
  • Butler opened a massage parlor in Pleasant Hill, Calif., in which prostitution activities took place. He required the women working in the parlor to make weekly payments, which he shared with Wielsch, in exchange for Wielsch’s agreement to provide protection to the women from law enforcement action.
  • Wielsch and Butler together conducted “stings” directed at prostitutes. Wielsch and Butler identified individuals they believed to be prostitutes through online advertisements and arranged meetings with them, typically in hotels. Wielsch and Butler then staged what purported to be legitimate sting operations, but instead of seizing evidence and citing the prostitutes, they unlawfully took the prostitutes’ money and property for themselves.
“This indictment alleges a pattern of lawlessness that not only violated the trust of the people of Contra Costa County, but also brings dishonor to all the fine men and women in law enforcement who work hard, do the right thing, and risk their lives every day protecting our communities,” U.S. Attorney Haag said. In May 2011, the Contra Costa County District Attorney asked the U.S. Attorney’s Office to lead the investigation. “The District Attorney’s Office led the initial investigation and did a thorough and professional job,” U.S. Attorney Haag said. “When the extent of the alleged misconduct became apparent, however, District Attorney Mark Peterson asked our office and the FBI to take the lead. We took that responsibility without hesitation.”
Wielsch and Butler were arrested this morning by agents of the Federal Bureau of Investigation, who have been investigating the case since May 2011.
The defendants’ initial appearance took place this morning in federal court in San Francisco; they are currently being held without bail pending detention hearings. Butler’s detention hearing is scheduled for Aug. 18, 2011, at 9:30 a.m. before Magistrate Judge Nathanael Cousins in San Francisco. Wielsch’s detention hearing is scheduled for Aug. 22, 2011, at 9:30 a.m. before Magistrate Judge Laurel Beeler in Oakland, Calif.
The maximum statutory penalties for each count are as follows, although any sentence imposed by the court following conviction would take into consideration the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553:
Count 1 – Narcotics Conspiracy, 21 U.S.C. § 846 (Wielsch and Butler)
  • Life imprisonment (10-year mandatory minimum)
  • Five years’ supervised release
  • $10,000,000 fine
  • $100 special assessment
Count 2 – Methamphetamine Distribution, 21 U.S.C. § 841(a)(1) (Wielsch and Butler)
  • Life imprisonment (10-year mandatory minimum)
  • Five years’ supervised release
  • $10,000,000 fine
  • $100 special assessment
Count 3 – Methamphetamine Distribution, 21 U.S.C. § 841(a)(1) (Butler)
  • Life imprisonment (10-year mandatory minimum)
  • Five years’ supervised release
  • $10,000,000 fine
  • $100 special assessment
Counts 4 through 9 – Marijuana Distribution, 21 U.S.C. § 841(a)(1) (Butler)
  • Five years’ imprisonment (10-year mandatory minimum)
  • Three years’ supervised release
  • $10,000,000 fine
  • $100 special assessment
Counts 10 through 13 – Theft From Programs Receiving Federal Funds, 18 U.S.C.m § 666(a)(1) (Wielsch)
  • 10 years’ imprisonment
  • Three years’ supervised release
  • $250,000 fine
  • $100 special assessment
Count 14 & 16 – Civil Rights Conspiracy, 18 U.S.C. § 241 (Wielsch and Butler)
  • Life imprisonment
  • Five years’ supervised release
  • $250,000 fine
  • $100 special assessment
Count 15 & 17 – Extortion, 18 U.S.C. § 1951 (Wielsch and Butler)
  • 20 years’ imprisonment
  • Five years’ supervised release
  • $250,000 fine
  • $100 special assessment
Hartley M.K. West and John Hemann are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Alycee Lane, Rania Ghawi, and Cristhian Escobar.  The prosecution is the result of an investigation by agents of the Federal Bureau of Investigation and the Contra Costa District Attorney’s Office.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Wielsch and Mr. Butler must be presumed innocent unless and until proven guilty.
Further Information:
CASE #: CR—11-0529-SBA
A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.
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Investor Fraud Summit - Walnut Creek Police Detectives Are Visibly Absent

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Investor Fraud Summit


On October, 9, 2012, United States Attorney Melinda Haag along with the United States Attorneys for the Eastern, Central and Southern Districts of California; Western District of Washington; Alaska; and Oregon; in addition to representatives from the U.S. Department of Justice, FBI, and the Securities and Exchange Commission hosted an Investor Fraud Summit at the Rossmoor retirement community in Walnut Creek California.
Investor fraud is a serious national problem.  The FBI reports that our country’s recent financial crisis has resulted in an unprecedented rise in investment fraud schemes, involving thousands of victims and staggering losses.  The Western United States is no exception.  In an effort to raise public awareness about this crime, the Department of Justice is hosting a series of investment fraud summits in select cities across the United Sates.  Because of the volume, nature, and size of investment fraud schemes prosecuted by the United States Attorney’s Office for the Northern District of California, the Northern District of California was selected to host one of these summits.  The agenda for the October 9 Summit included the following presentations and panels:
  • Welcome Remarks
    Melinda Haag, United States Attorney, Northern District of California Marc Fagel, Regional Director, Securities and Exchange Commission, San Francisco Donald Liddle, Rossmoor President
  • It Happens Everywhere: Investor Fraud from a National Perspective
    Moderated by Ben Wagner – United States Attorney, Eastern District of California
  • It Could Happen to You: Stories of Recent Federal Prosecutions in California
    Moderated by S. Amanda Marshall, United States Attorney, District of Oregon
  • Red Flags and Warning Signs – How to Avoid Being Victimized
    Moderated by Andre Birotte, United States Attorney, Central District of California
  • In Conversation: Victims of Investor Fraud Scheme Share Their Story
    Moderated by Brian Stretch, First Assistant United States Attorney, Northern District of California.
  • Closing Remarks
    Karen Loeffler, United States Attorney, District of Alaska Jenny Durkan, United States Attorney, Western District of Washington Laura Duffy, United States Attorney, Southern District of California
Other participants in the Summit included:
  • Denis McInerney, Chief, Fraud Section, U.S. Department of Justice Criminal Division
  • Christian Parker, Supervisory Special Agent, FBI Headquarters, Washington, D.C.
  • Marc Fagel, San Francisco Regional Director, Securities and Exchange Commission
  • Nicholas Colucci, Financial Crimes Enforcement Network (FinCEN), Washington, D.C.
  • Doug Sprague, Chief, Economic Crimes and Securities Fraud Section, USAO, NDCA
  • John Owens, former Criminal Division Chief, US Attorney’s USAO SDCA
  • Jina Choi, Assistant Regional Director of Enforcement, SEC, San Francisco
  • Sandy Samuels, Executive Director, Bet Tzedek, Los Angeles
  • Nicole Jones, Counsel for Information and Network Security, Google
  • Mike West, Executive Producer of American Greed, CNBC
This Summit was part of the ongoing efforts of the Financial Fraud Enforcement Task Force which was created in 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  For more information on the task force, visit www.stopfraud.gov.
Attorney General Eric Holder announced the Investor Fraud summits during a speech he made at the AARP Life at 50+ conference in New Orleans on Sept. 22, 2012.
The Department of Justice and the United States Attorneys are holding six regional Investor Fraud Summits to Educate Consumers throughout the United States.  For more information about the Investor Fraud Summits, visit: http://blogs.justice.gov/main/archives/2511.

 

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Photos from Investor Fraud Summit in Walnut Creek California


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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