The man used to operate a business called Dana Island Yacht Sales and Charters. Authorities say that he would take money from clients for the purchase of pricey boats, place it in escrow and then take the money for himself. Authorities believe most of these fraudulent transactions happened between 2007 and 2009.
]]> The man is now charged with 19 felony counts of using untrue statements in the purchase or sale of a security, 14 felony counts of issuing non-sufficient checks with the intent to defraud, 16 felony counts of grand theft and eight counts of felony theft from an elder.Friends and acquaintances of the yacht broker described him as someone who had a passion for travel and what seemed to be an addiction to a lavish, high-priced lifestyle.
If this man did indeed bilk his clients out of money and then try to flee from justice, let there be no mistake: That was wrong.
In our experience working with those accused of white-collar crimes, though, we have found that a familiar theme is that people fall into the trap of thinking they can "borrow" money that is not theirs to get themselves out of a temporary pinch. The "pinch" isn't "temporary" of course, and the money often does not get paid back.
Again, we offer that not as an excuse, but as an explanation for what sometimes happens in cases like these.
Source: Trade Only Today, "Former California broker charged with fraud," May 13, 2013
]]>The claims arose from a 2008 whistleblower lawsuit filed by two doctors who objected to the practice. Since they called federal regulators’ attention to the misconduct, they are entitled to share in the settlement and will likely receive a financial windfall. About $11.5 million will be returned to the federal government and $2.6 million will be paid to the California Department of Healthcare Services. It was not immediately clear how much the two doctors will receive.
]]> It does not seem that White Memorial Medical Center just handed the doctors a check. Allegedly, it would provide them with compensation for things like teaching and seminars that was out of proportion with the value of services rendered. It also allegedly paid for travel expenses and forgave loans to doctors who recruited other medical professionals to join the arrangement.What interests us about that is the determination that the compensation to doctors for their services is being seen as so disproportionate as to amount to a kickback. One would think White Memorial Medical Center is the best party to determine what the services it needs are worth, not some outsider who is looking in a long time after the fact.
Healthcare fraud claims like this are almost unvarying complex. Although it is good to be vigilant and ensure that patients are not being put at risk by profit-seeking behavior, it can be difficult for healthcare organizations to overcome the assumption that they did something wrong.
Source: Los Angeles Times, “White Memorial Medical Center in L.A. settles kickback allegations,” Chad Terhune, May 4, 2013
]]>They also searched the offices of a company that had recently proposed a 41 million square-foot warehouse in the city.
]]> Although spokesmen for the agencies involved have not said much, it is believed they were acting to investigate alleged fraud on the part of city officials, who, it has been implied, may have acted improperly in getting clearance for the warehouse. The warehouse has been vehemently opposed by some members of the public, who are concerned that it will complicate traffic and add to air pollution.So far, formal charges have not been announced.
Owings said he had been advised not to speak to the media, but he did say he was "confident that he had done nothing wrong."
Allegations of fraud or misconduct in office are very serious. Not only do they threaten to derail or possibly evecn end a public servant's career, they may taint the rest of his or her life by sullying his or her reputation.
Whether a person is accused of fraud, embezzlement or some other white collar crime, it is imporatnt to defend onself against the accusations vigorously and thoroughly. No one can afford to face these claims with a blithe attitude.
Many criminal defendants find it helpful to work with a criminal defense attorney whom they trust and respect. Oftentimes, this affords them a sense of reassurance and confidence.
Source: The Los Angeles Times, "Federal agents search homes of Moreno Valley City Council members," Phil Willon, April 30, 2013
]]>How much money, however, is still a point of dispute.
]]> The man signed up for a program with eBay that paid him for referring Internet traffic and sales to the website. Essentially, the man devised an Internet-based scheme that made it look as though he was directing more users to eBay. In actuality, however, the man's program only gave that appearance; many of the users were not visiting or making purchases from eBay.Between 2006 and 2007, federal investigators claimed, the man earned $5.2 million from this program. Even though he pleaded guilty, he published a statement on his personal blog saying that most of that money was earned by an affiliate, not himself.
The man will be sentenced in August. He faces up to two decades in federal prison.
Although we summed up this man's crime in a paragraph, a fully detailed explanation of the program scheme could easily have gone on for several pages. The reason we say this is that program that got this man in trouble is complicated to explain, let alone understand.
In many white-collar crime cases, the information and evidence are not easily understood by the average layperson. Often, it takes a skilled, trained mind to look at what has been presented and then make sense of it.
If you are ever accused of a white-collar crime, like fraud, you would want to consider your choice of representation very carefully.
Source: Business Insider, "How This Man Cheated eBay out of $5 Million And Now Faces 20 Years in Federal Prison," Jim Edwards, April 19, 2013
Duran had been under scrutiny after some questioned the validity of meals he charged to his city-issued credit card.
]]> In 2011, prosecutors opened their inquiry into Duran after assembling hundreds of pages of receipts, expense reports and credit card statements that showed he spent over $7,000 at Los Angeles-area restaurants over the preceding three years.Duran and his legal team reacted with puzzlement. They said the councilman had been conducting city business during those working meals, so it was not clear why he was being investigated.
On Tuesday, Duran said he was relieved that the inquest was over. He said he was looking forward to getting "back to doing the work of the city of West Hollywood."
The city of West Hollywood has said it it has tightened oversight over city officials' spending and has taken away council members' credit cards. It has also said it will no longer pay for meals for council members or third parties within city limits.
Although we think it is wise to be vigilant to a degree as to what our public officials are using tax dollars for, this whole episode carries a faint whiff of a fruitless witch hunt. The complainant who instigated the inquest has never been revealed and one does have to wonder why this seemed worth looking into in the first place, given that Duran seems to have had a perfectly good explanation all along.
Source: The Los Angeles Times, "L.A. County closes probe into West Hollywood official's spending habits," Richard Winton and Hailey Branson-Potts, April 16, 2013
That is what his attorney told a Los Angeles jury on Monday.
]]> The 52-year-old man is accused of killing a 27-year-old man after the man learned of his true identity. The deceased man's wife is also missing, but the man is not accused of anything in connection with her disappearance.The man's defense attorney has admitted that his client had "a portfolio of illegal behavior," including a sham marriage so he could legally emigrate to the U.S. from his native Germany, use of other people's Social Security numbers and forgery of government documents.
However, he said "the stupidest murder in California history" does not fit with his client's profile.
The attorney pointed out that the deceased man was buried in his own backyard, along with evidence that may have provided more insight to the crime if it had been found earlier (his body was discovered in 1994).
The attorney instead suggested that the missing wife may have killed the man. She had a motive -- she disliked both the man and his mother -- whereas his client had none.
This case has attracted quite a bit of interest, given the intrigue in the man's past and the "cold case" nature of the other man's death. We are interested to see how it turns out. If there are any noteworthy developments in the future, we will make certain to update this blog with a post covering those developments.
Source: The Los Angeles Times, "Defense: Rockefeller impostor was a con man but not a killer," Hailey Branson-Potts and Jack Leonard, April 8, 2013
Although he won't be sentenced until this summer, it is already known that he will spend at least 10 years in federal prison and will have to forfeit millions of dollars' worth of assets as part of a plea agreement he struck with prosecutors. In addition to forking millions of dollars over to the IRS, he must also give up his rental properties in Long Beach, his mobile homes in Mammoth Lakes, his principal residence in San Clemente and an interest he owns in two gentlemen's clubs.
]]> The man has admitted that he deliberately underreported how much his nine marijuana dispensaries were making and destroyed evidence that would have undermined his false tax reports. Authorities believe he concealed more than $25 million from them over the past six years.Authorities who raided the man's properties found large amounts of cash and weapons, including what appears to be an AK-47.
The man could have been sentenced to up to 20 years in prison, but he was able to come to an agreement with prosecutors. Under the terms of that agreement, his sentence could not stretch beyond 15 years.
The man was one of 14 people who were indicted by a federal grand jury in October. The 14 were accused of conspiring to traffic in drugs because they were transporting and selling drugs in a clandestine fashion. Selling marijuana is legal in California, but a vendor must be licensed and must be completely honest and forthcoming with authorities in terms of how much marijuana is being sold and to whom, as well as how much money is being made.
Source: The Los Angeles Times, "Owner of marijuana stores pleads guilty to $25 million scheme," April 2, 2013
The case before the court pertained to whether it was permissible for police to bring a drug-sniffing dog onto a suspect's property without a search warrant.
]]> In this case, a drug-sniffing dog had alerted police that it had detected drugs from outside a home's closed front door. The dog's findings were used to obtain a warrant, and some $700,000 worth of marijuana was seized from the home.In a 5-4 vote, the Justices held that the Fourth Amendment protection against unreasonable search and seizure would not have much meaning if police were able to stand immediately outside a person's home (in the yard or on the porch, for example) and gather evidence.
The four justices who dissented said it the majority's opinion stretched the idea of privacy too far. They also advocated for a strict, literal interpretation of "home" that would not include a porch or yard.
It's a natural assumption that police do everything correctly. After all, they often come off as very organized and professional, and officers are deservedly well-respected in our society. However, this case shows that even police sometimes make mistakes.
If you are ever arrested and charged with a crime, please do not feel as though you are powerless. Criminal defense attorneys can review your case and make sure all the law enforcement authorities involved acted as they should have.
Source: The Los Angeles Times, "Supreme Court rules against drug-sniffing police dogs," March 26, 2013
From 2006 to 2011, the 38-year-old El Cajon man used a tribe credit card and access to the tribe's checking account to pay for personal expenses, including:
]]>As executive director, the man was responsible for upkeep of the tribe's financial records, monitoring the tribe's checking account and paying off the tribe's credit card. He has not said what led him to misuse the tribe's fund in this manner.
So far, the tribe has not issued a public statement about the former executive director's conviction.
The man could spend up to five years in prison when he is sentenced and might be fined up to $250,000. A sentencing date has not yet been announced. It is not clear if he will be ordered to pay restitution.
The La Posta Band is composed of Kumeyaay Indians who live in the Laguna Mountains in eastern San Diego County, adjacent to the Cleveland National Forest. Its business and administrative headquarters is in Boulevard. There are just 18 individuals living on the 3,556-acre reservation.
Source: The Los Angeles Times, "Former official with San Diego County Indian tribe admits embezzling $57,000," Mar 8, 2013
You may have heard about this case before. It has been quite a hot topic on many California media outlets, many of which have whipped the tale into a frothy sensation about a ravenous rapist who found his helpless victims on a website for single Christians. Some of the stories we have read have been nothing short of lurid, and that makes us worry that the sensationalism around the accusations against the man may color his chances of getting a fair trial.
]]> Let's cut away all the hype and look at the facts: The man was arrested Feb. 11 after a woman from the San Diego area told police that he forced himself on her. He has been charged with penetration by force involving a woman, rape and burglary. The woman said she had several Internet conversations with the man before they met in person.This time, the man has been charged in connection with an incident that allegedly occurred in 2009. The woman who has brought the allegations this time claims that he raped her. He is also being charged with attempting to intimidate a witness. It isn't known of a dating website was involved in this circumstance.
At this point, we do not know if this man is innocent or guilty. In fact, no one does, because he has not gone to trial yet. We wish more people would recognize that. In the U.S., you are innocent until proven guilty, no matter which way public opinion swings.
Source: The Los Angeles Times, "Second rape charge filed against man linked to Christian dating site," March 5, 2013
The investigation, the results of which were published yesterday, also found that some of the sex offenders went on to commit new crimes.
]]> Naturally, we understand that people care about safety and want to make sure that justice is served, not subverted. That being said, we hope the fact that the people involved here once committed a sex crime does not distract citizens from higher-level questions of fairness and humane treatment.In the course of its investigation, the Los Angeles Times found that more than 3,400 warrants have been issued since October 2011 for sex offenders who tampered with or removed the GPS devices they are required to wear. (In 2006, Californians voted to require certain sex offenders to wear GPS monitors on their bodies for the rest of their lives.)
The newspaper also found that state prisons and county jails seem to be trying to push violators on each other and questioned whether this tug-of-war was resulting in some violators falling through the cracks.
To our eyes, there is initial cause for concern. People should not violate terms of their parole and must obey all applicable laws.
However, we hope that as our state processes this information and begins discussing what, if anything, to do about it, everyone involved can keep a cool head and use logic and reasoning. Giving in to hysteria or panic will not result in a workable solution.
Source: The Los Angeles Times, "Paroled sex offenders removing tracking devices," Feb. 25, 2013
Prosecutors claim that the ex-mayor, 66, pilfered the money over an eight-year span, during which she won and lost over $1 billion in various gambling ventures. The money was left to the foundation by the woman's late husband, who had started the Jack-In-The-Box chain of fast-food restaurants.
]]> Prosecutors say the ex-mayor burned through her personal fortune of $40 to $50 million, then sold belongings and real estate to further feed her gambling compulsion.When those funds were insufficient, they say, the ex-mayor then dipped into the R.P. Foundation's funds and helped herself to $2.09 million, which she also spent on gambling.
The ex-mayor's attorney has said that her gambling addiction spiraled out of control in 1994, when her husband died. He also said a brain tumor, for which the ex-mayor underwent treatment in 2011, was a contributing factor.
It seems the ex-mayor has acknowledged that she used the money improperly and has agreed to pay restitution; in exchange, she will not be required to plead guilty.
In our work as criminal defense attorneys, we have come across stories similar to this one before. It is quite easy for you and I, people who don't cope with an unmanageable addiction, to wonder why this woman did not just stop. However, for people like the ex-mayor, putting a stop to behavior they know to be wrong and harmful is not so easy.
Sourc: The Los Angeles Times, "Ex-mayor who gambled away $1 billion to pay restitution," Feb. 16, 2013
]]>Authorities are alleging the man corresponded with young men over Facebook, masquerading as an attractive blonde woman, and inspired the young men to send him explicit pictures of themselves.
]]> The felony charges he now faces include contacting a child with intent to commit a lewd act, using a minor for sex acts, bringing obscene material into California and distributing pornography to a minor.Police are taking a special interest in this case because the man is a high school history teacher and baseball coach in Anaheim. As of right now, authorities have absolutely no evidence that the man decided which young men to contact based on his work in education or athletics.
In our law office, we have focused on Internet crimes for many years. Over time, we have noticed a trend; in many cases, it seems clear that the conduct that ends up getting someone in trouble began as a joke, a prank or a mere dalliance taken out of curiosity that then went much, much too far.
Something about the Internet, we have noticed, encourages people to go places, metaphorically speaking, that they would not normally go. Psychologists have long noted that anonymity or the illusion of anonymity inspires personality and behavior changes in people. We have to imagine the imagined anonymity of the Internet generates something similar.
Source: The Los Angeles Times, "Baseball coach posed as woman on Facebook to lure boys, D.A. says," Feb. 12, 2013
In case you have not been following the news yourself, an accurate summary of the case thus far would be that the city, which has a population of a bit over 35,000, was allegedly wildly mismanaged, with certain city employees being paid in excess of six figures and others receiving a paycheck for doing little to no work. Prosecutors are trying to present evidence that such misconduct went on for years.
]]> The trial is currently in the stage where witnesses are giving testimony. That testimony has yielded some scandalous allegations, including:All in all, the portrait that is being painted of the six former city councilors, who are all defendants, is that the city's resources were grossly mismanaged.
Now, we in no way approve of the misuse of public funds. However, we do know that municipalities are expected to have checks and balances, as well as systems in place to ensure that everything is above-board. Based on what we know, it sounds like the city of Bell did not have those things. If that is true, do you think some of the fault for what happened lies with the failure to have such systems?
We also always advocate forming an opinion cautiously, at all, in such salacious cases as these. Media interest can sometimes generate feelings that are unwarranted by the facts.
Source: The Los Angeles Times, "Bell trial: Witnesses say city leaders deceived them for years," Feb. 5, 2103
•· White collar crime cases are among those we practice in our Los Angeles law firm. For more information, a good place to start might be our Fraud page.
]]>The 27-year-old man allegedly hacked into the Skype, email and social media accounts of several women. He then searched through their electronic documents for naked or semi-nude photos of the women, according to the FBI.
]]> After that, the man would then pose as the women on Facebook and dupe their friends into sending him nude images as well.The man used the photographs he obtained to blackmail some of his victims, threatening to release them if the women did not expose themselves to him again, typically over webcam. At least once, the man is accused of posting a topless photo of a woman to her Facebook account after she refused to comply with his demands.
Authorities said the man had 3,000 images of an estimated 350 women when he was arrested. Not all the woman have been identified or contacted by the FBI.
The man is facing 15 federal charges of aggravated identity theft and 15 federal charges of computer intrusion. If he is convicted on all counts, he could spend up to 105 years in federal prison.
Source: The Los Angeles Times, "Glendale man targeted 350 women in 'sextortion' scheme, feds say," Jan. 30, 2013