The Most Fraudulent States in America
With the nation emerging from an economic depression, battling stagnant wages and job growth, Americans have dealt with their fair share of financial pressures. As a result, they have become victims of criminals all too eager to take advantage of their misfortune. In a study conducted in 2012, the Federal Trade Commission reported 1.8 million complaints of fraud, identity theft, and other deceptive financial crimes -a 40% increase from 2010. Below are the top 10 states with the most complaints in proportion to population size:
10. New Jersey – 538 complaints/100,000 pop. | 47,336 total complaints | 86.4 Identity Theft Complaints/100,000 (8th most)
9. Washington – 546 complaints/100,000 pop. | 36,685 total complaints | 72.2 Identity Theft Complaints/100,000 (18th most)
8. Georgia – 568 complaints/100,000 pop. | 55,020 total complaints | 120 Identity Theft Complaints/100,000 (2nd most)
7. Virginia – 595 complaints/100,000 pop. | 47,581 total complaints | 67.7 Identity Theft Complaints/100,000 (21st most)
6. Arizona – 602 complaints/100,000 pop. | 38,561 total complaints | 98.5 Identity Theft Complaints/100,000 (4th most)
5. Nevada – 620 complaints/100,000 pop. | 36,561 total complaints | 89.9 Identity Theft Complaints/100,000 (7th most)
4. Maryland – 633 complaints/100,000 pop. | 36,561 total complaints | 86.3 Identity Theft Complaints/100,000 (9th most)
3. Delaware – 636 complaints/100,000 pop. | 5,708 total complaints | 83.5 Identity Theft Complaints/100,000 (10th most)
2. Colorado – 656 complaints/100,000 pop. | 33,010 total complaints | 82.6 Identity Theft Complaints/100,000 (11th most)
1. Florida – 694 complaints/100,000 pop. | 130,449 total complaints | 178.7 Identity Theft Complaints/100,000 (the most)
States targeted by fraudulent mortgage scams had the highest amount of debt and suffered the biggest decline in home value.
MacDowell & Associates, P.C.
Fairfax criminal defense law firm
4031 University Drive, Suite 500
Fairfax, Virginia 22030
(703) 591-1336
How Does an IRS Criminal Investigation Begin?
The Internal Revenue Service Criminal Investigation Division serves the American public by conducting criminal investigations regarding alleged tax violation and various money laundering statutes. There is a long, complicated investigation process involving many levels of personnel that goes into prosecuting these types of criminals.
IRS criminal investigations begin when an auditor or collections officer detects possible fraud. The first part of the preliminary process is a primary investigation, in which questionable information is further explored reevaluated. An IRS supervisor will then decide whether or not the investigation should be continued and further delved into. The next part of the process is called the “subject criminal investigation.”
During the subject criminal investigation, multiple techniques are used to determine when and how fraudulent activity occurred, as well as the level of impact that the alleged criminal activity has created. Investigators may interview third party witnesses, conduct video surveillance, get search warrants for a home or office, subpoena bank records and review financial data.
If the criminal investigation results in sufficient evidence to continue a case, the evidence will be reviewed by the supervisory special agent, Centralized Case Review, the criminal investigation assistant special agent in charge and the criminal investigation special agent in charge. Lastly, the special agent in charge will make the final determination as to whether or not the case should be prosecuted with the Department of Justice, Tax Division or the United States Attorney for all other investigations.
If you believe you are being investigated by the IRS it is imperative that you speak with a lawyer. The impact of an IRS investigation and prosecution can be immense, and without an experienced attorney you may be subjecting yourself to a financial catastrophe and public embarrassment.
Barnes Law LLP
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Largest Tax Evasion Case in US History
American telephone entrepreneur Walter C. Anderson is convicted of the largest tax evasion case in United States history.
Anderson started his telecommunications career in sales at MCI communications in the late 70s. Later in his career during the 80s and 90s he heavily invested in several telecommunication companies, which he later sold and turned into his fortune. The most high-profile investment Anderson was involved in was the MirCorp, the company that dealt in the privatization of Russian space station MIR. Anderson is thought to have invested nearly thirty million dollars into the venture.
The United States government began to investigate Anderson after he founded MirCorp and made arrangements to make the MIR space station a commercial project. The investigation was an extensive look into the business and personal activities that Anderson was involved in.
On February 26, 2005 Anderson was arrested at Dulles International Airport while on his way back from a trip to London. He was accused of hiding his wealth in offshore companies in the British Virgin Islands as well as Panama in a direct attempt to avoid taxation on his income. Anderson was held in a Washington DC Jail for nearly 2 years with out bail since he was considered a flight risk.
On September 8, 2006 Anderson pleaded guilty to two felony counts of evading federal income tax. Anderson failed to claim over $126 million in 1998 and $238 million in 1999. In his plea agreement, Anderson admitted to hiding $365 million of income by using aliases, offshore tax havens, shell companies, and secret accounts. The US tax court decided that Anderson would have to pay over $141 million in tax deficiencies, another 100 million in penalties, and addition interest for a grand total of $248,962,929 and the reigning record for the largest tax evasion case in US history. Walter Anderson is set to be released from jail December 29th 2012.
Tax evasion is under the umbrella of white-collar crime but the crime can carry severe penalties. Anderson was sentenced to 9 years in prison for his crime. If you are being investigated for a white collar crime it is advisable to speak with an attorney once you come under investigation. Contacting an attorney is the best move you can make if you are arrested and questioned about an ongoing investigation. The police only have 72 hours to charge you or they must release you, If you are not charged it is likely the investigation will continue and you may be charged at a later time.
The Top 10 Embezzlement Cases In Modern US History
Massive Meatpacking Misappropriation
Victim Organization: Day-Lee Foods, Inc., Santa Fe Springs, California
Amount: $132 million in 2010 dollars ($85 – $95 million actual)
Perpetrator: Yasuyoshi Kato
Position: Chief Financial Officer
Year Discovered: 1997
Duration: 6+ years (1991 – 1997)
Scheme: Fraudulent/forged checks
Age Scheme Began: 33
Beverly Hills Bank Blowout
Victim Organization: Guarantee Building & Loan Association, Hollywood, California
Amount: $100 million in 2010 dollars ($7,661,793 actual)
Perpetrator: Gilbert H. Beesemyer
Position: Founder, General Secretary and Manager
Year Discovered: December 1930
Duration: Undetermined, but believed to be less than one year
Scheme: Took overdrafts for himself
Age Scheme Began: 45
BankBoston Carrasco Fiasco
Victim Organization: BankBoston Corp., Boston, Massachusetts
Amount: $97.7 million in 2010 dollars ($73 million actual)
Perpetrator: Ricardo S. Carrasco
Position: Head of BankBoston International in NYC
Year Discovered: 1998
Duration: Undetermined
Scheme: Fraudulent loan scheme
Age Scheme Began: 41
Treacherous Taking from Ayer’s Heirs
Victim Organization: Tenens Corp., dba Essex Street Associates, Beverly, Massachusetts
Amount: $72.3 million in 2010 dollars ($61 million actual)
Perpetrator: John F. “Jack” Doorly
Position: Chief Operating Officer
Year Discovered: March 2006
Duration: 7 years (1999 – 2006)
Scheme: Fraudulent transfers and vendor fraud
Age Scheme Began: 48
Extraordinary Electronics Embezzlement
Victim Organization: Fry’s Electronics, San Jose, California
Amount: $69 million in 2010 dollars ($65.6 million actual)
Perpetrator: Ausaf Umar Siddiqui
Position: Vice President of Merchandising and Operations
Year Discovered: 2008
Duration: 4 years (1/05 – 11/08)
Scheme: Vendor fraud; kickbacks
Age Scheme Began: 39
Wells Fargo Float Fraud (or Beverly Hills Bank Blowout II)
Victim Organization: Wells Fargo Bank, San Francisco, California
Amount: $64 million in 2010 dollars ($21.3 million actual)
Perpetrator: Lloyd Benjamin Lewis
Position: Operations Officer (Beverly Drive branch, LA)
Year Discovered: January 1981
Duration: 3 years (1977 – 1981)
Scheme: Fraudulent electronic funds transfers
Age Scheme Began: 44
Engineering an Enormous Embezzlement
Victim Organization: PBS&J Corp., Miami, Florida
Amount: $49 million in 2010 dollars ($36.6 million actual)
Perpetrator: William Scott Deloach & Co-conspirators
Position: Chief Financial Officer & Controller
Year Discovered: March 2005
Duration: 13 years (1992 – 2005)
Scheme: Unauthorized/fraudulent checks
Age Scheme Began: 34
Sandhogs Piggishly Pilfered
Victim Organization: NYC Laborers Sandhogs Union Local 147, New York, NY
Amount: $47.6 million in 2010 dollars ($42.6 million actual)
Perpetrator: Melissa G. King
Position: Employee Benefits Manager
Year Discovered: December 2008
Duration: 7 years (2002 – 2008 inclusive)
Scheme: Fraudulent funds transfers
Age Scheme Began: 50
Koss Corp. Coffers Co-Opted
Victim Organization: Koss Corporation, Milwaukee, Wisconsin
Amount: $ 40.9 million in 2010 dollars ($34.5 million actual)
Perpetrator: Sujata “Sue” Sachdeva
Position: Chief Finance Officer
Year Discovered: December 2009
Duration: 12 years (1997 – 2009)
Scheme: Fraudulent funds transfers
Age Scheme Began: 40
Minnie Mangum Misappropriates Millions
Victim Organization: Commonwealth Building & Loan Association, Norfolk, Virginia
Amount: $ 37.5 million in 2010 dollars ($2,884,957 actual)
Perpetrator: Minnie Mangum
Position: Assistant Secretary-Treasurer
Year Discovered: November 1955
Duration: 22 years (1933 – 1955)
Scheme: Theft from reserve accounts
Age Scheme Began: 29
By Christopher T. Marquet
April 22, 2011
What is Corporate Embezzlement?
What is Corporate Embezzlement?
Corporate embezzlement is a kind of financial fraud that often involves employees who have been wrongfully appropriating funds that have been entrusted to them, but which are owned by the corporation. Because intensive security measures are put in place in the corporate world, corporate embezzlement is a premeditated and methodical criminal action with the intent of concealing the activities from the corporation. In order for a person to successfully embezzle funds, he or she must be a trusted member of the business. This person must also embezzle only a fraction of the funds in their charge. If done properly and undetected, over time the embezzler could continue with unlawful gains without ever being noticed.
Is Corporate embezzlement a misdemeanor or felony?
When executives, directors, board members or trusted employees of a business engage in malicious acts like that of corporate embezzlement, the integrity and financial health of the businesses is compromised. Depending on the severity of the crime (length of time, amount of funds misappropriated, employees involved), embezzlement may qualify as a misdemeanor or a felony. In some cases, criminal defense lawyers are able to reduce the sentences despite the wealth of evidence against the embezzler.
Defense Against Embezzlement Accusations
If you have been accused of diverting company funds for personal use it is essential to your case that you consult with a skilled phoenix criminal defense lawyer to discuss your legal options. A skilled criminal attorney can negotiate with the prosecution and prove that they do not have sufficient evidence, or that the alleged embezzler has been wrongfully accused. Failure to prove one’s innocence has serious penalties. Felony convictions in grand theft cases (crimes over $400) result in a county jail prison sentence with fines exceeding thousands of dollars. Additionally, the convicted person must pay back all the funds to the victim.
How White Collar Crime Compares to Other Types of Crime
“White-collar” work was originally used to describe clerical and administrative job functions. Such workers are generally associated with jobs that don’t require strenuous physical labor. Conversely, “blue-collar” work refers to skilled and unskilled manual labor. These two contrasting classifications of workers typically commit equally dissimilar types of crimes.
Although people generally associate white-collar crime with social status, respectability, sophistication and wealth, the Federal Bureau of Investigation does not take any of these factors into consideration. The FBI defines white-collar crime as “. . . those illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence. Individuals and organizations commit these acts to obtain money, property, or services; to avoid the payment or loss of money or services; or to secure personal or business advantage.” White-collar crimes can include the following: insider trading, securities fraud, bribery and embezzlement. Basically such crimes are characterized by lying, cheating, stealing and similarly unfaithful behaviors. They involve complex deceit with the intent of capital gain.
White collar crimes are investigated by four different federal agencies: the Internal Revenue Service (IRS), Securities and Exchange Commission, FBI and the Department of Homeland Security. White-collar crimes may be charged at both the state and federal level, can vary from jurisdiction to jurisdiction and depend on the severity of the offense. For example, in a case of embezzlement the value of the embezzled property will be factored into the punishment, along with any prior record, the relationship the individual has with the company and the duration of the crime. If you are facing criminal charges, it is essential to hire a seasoned Jacksonville criminal attorney who specializes in white collar crimes defense. The typical punishment for embezzlement if a prison sentence, restitution to the victim, and a possible payment of interest and period of supervised release. Criminal penalties for insider trading can warrant up to a 20 year prison sentence, and as high as a $5 million fine for each willful violation of the Securities Exchange Act. However, if the individual being charged with insider trading can prove that they were unaware of any violations of rules and regulations imprisonment can be reconsidered and thrown out. Criminal penalties for white-collar crimes vary, but most laws will demand a (usually hefty) monetary fine, a prison sentence or both.
Blue-collar crimes are usually crimes against others in which there is a direct victim. They are known to involve an element of violence, although that does not necessarily need to be the case. These crimes include kidnapping, shoplifting, vandalism, murder and rape. “Victimless” blue-collar crimes include substance abuse, gambling and prostitution.
Blue-collar crimes generally cause more immediate and visible damage to society, therefore they are punished more quickly and usually more harshly than white-collar crimes. Depending on the severity of the crime and the amount of damage that has been done, one may be charged with a misdemeanor or a felony. Examples of blue-collar misdemeanors are petty theft, simple assault and public intoxication. Punishment for such crimes will typically include a short sentencing (less than one year) or alternative sentencing such as community service or a rehabilitation program. Felonies, on the other hand, are more serious crimes that can include arson, battery rape and murder. Such crimes warrant harsher penalties of a prison sentence to exceed one year, and can even result in the death penalty.
What is RICO?
The Racketeer Influenced and Corrupt Organizations Act (RICO), created as part of the Organized Crime Control Act of 1970, is a federal law designed to assist law enforcements in combatting organized crime, public corruption cases and street gangs. Originally created to fight against dangerous organized crimes like those in the Mafia, RICO has become a tool more recently that is used to prosecute white collar criminals as well. RICO allows prosecution and civil penalties for racketeering performed as part of an ongoing criminal enterprise and makes it illegal for criminal organizations to profit from any legitimate business operations.
Under the act, a person can be charged with racketeering (including bribery, extortion, illegal drug sales, loan sharking, murder and prostitution) if the individual is a member of an organization that has committed 2 or more of the 27 federal and 8 state crimes under U.S. legislation within a 10-year period. An important feature of RICO is that the act gives the government power to criminally prosecute and imprison an organized crime leader, even if he or she has never personally committed a crime, but has knowledge of the criminal activity of the group and many times demands criminal activity of the group.
Penalties under RICO include fines up to $25,000 and 20 years of imprisonment for each count of racketeering, plus the restitution of all involved incidents. RICO crimes can be civil or criminal, depending on the type of activity and enforcement under state laws. The civil suit component is for the victims (or relatives of murdered victims) in which they can sue for any damages. RICO imposes harsh criminal penalties for those involved in organized crime, and if you are being charged with racketeering you should speak with an attorney who can help you avoid these penalties.
Federal Crimes
The difference between federal and state crimes is that federal crimes break federal legal code and state crimes break state laws. The U.S. Constitution allows states to govern themselves and most crimes in the U.S. fall under the jurisdiction of the state in which the offense occurs, but when the nation’s welfare is at risk Federal laws rule over state laws. The federal government has the authority to determine which crimes can constitute a federal crime. Federal offenses are investigated by government agencies such as the FBI, IRS or DEA.
Most federal offenses are defined under title 18 of the U.S. code. A federal crime is usually an illegal action that is committed across state lines. Example of these types these include kidnapping across state lines and interstate drug trafficking. Other federal crimes are bank robbery, counterfeiting, acts of terrorism, postal fraud, immigration violations, insider trading, identity theft, gun crimes, computer crimes, credit card and ATM fraud, organized crime and public corruption.
There are differences in trial and punishment for federal and state crimes. Federal trials are held in federal courthouses in the district in which the crime occurred, while a state trial is held in a county courthouse in the county in which the crime occurred. Sentencing is based on two factors: the conduct associated with the offense, and the defendant’s criminal history. Most judges are bound by what is called the “Federal Sentencing Guidelines” which assigns different points to each violation and calculates the punishment of the crime accordingly. Federal crimes are taken very seriously and come with harsher penalties than state crimes. It is important to speak with an Alabama federal crime defense lawyer about your case if you have been charged with a federal crime.
Embezzlement Law
Embezzlement is a type of financial fraud that can range in severity from a few misappropriated dollars to a multi-billion dollar complex financial scheme. Embezzlement is defined as, “a criminal offense which involves the fraudulent and secret misappropriation of money or assets by an agent to whom the property has been entrusted.”
In order for embezzlement to occur the original acquisition of the finances or goods must not be trespassory and there must be a conversion. Unlike larceny, embezzlement only occurs when the person facing criminal charges was the entrusted caretaker of the funds. This means that the funds were obtained in a legal and sound manner. A conversion occurs when the funds are not simply relocated, but used in a manner that interferes with them in some way. An example would be a financial adviser taking the funds of his client that were intended to go in to their retirement accounts, and using them to fund his own lifestyle or investments.
The largest embezzlement ever recorded was by American Businessman, stockbroker, and investment adviser Bernard “Bernie” Madoff. In the year 1960 he used the money saved from college jobs to start Bernard L. Madoff Investment Securities LLC, where he remained the chairman until his arrest on December 11, 2008. The firm was one of Wall Street’s top market maker businesses for decades, and managed assets in excess of $50 billion dollars. Records indicate that the Ponzi scheme began as early as the 70s, but probes in to the company’s validity didn’t begin until as late as 1999. Many large investment firms and mathematicians questioned the validity of the company and its extravagant payouts, but their concern was largely ignored by the SEC. On December 10, 2008 in his New York penthouse, Madoff confided to his sons that he was struggling to pay back investors, that he had no money left and that the business was a huge Ponzi scheme and was just, “one big lie”. Madoff’s sons reported him to authorities and he was arrested the next day. In March 2009 he pleaded guilty to 11 federal felonies and admitted to turning his wealth management company in to a massive Ponzi scheme and was sentenced to 150 years imprisonment- the maximum allowed.
In America embezzlement is a statutory offense, so definitions and punishments can vary. Generally speaking those who are found guilty of embezzlement can face penalties ranging from simply having to pay back their investors to serving lifetime jail sentences and fines of billions of dollars. If you or someone you love is facing charges for embezzlement, contact an Phoenix embezzlement lawyer immediately. An attorney specializing in white collar crime will be able to find weaknesses in the charges you are facing and uncover evidence that will support your defense. In situations where going to court will not be in your favor, an attorney will negotiate to have the charges you are facing reduced.
What Is A Target Letter?
In white-collar crime cases it is common for a “target letter” to be delivered by the prosecutor during the course of the investigation. These letters are sent to people who are witnesses, and provide a date and time for these witnesses to appear before the Grand Jury. The recipient of such a letter is the “target” of the investigation. They are usually sent out during the pre-indictment stage of the criminal process, however if a target letter has been received by a party the investigation has already reached a point in which the prosecutor can link the recipient to the crime. The target letter will identify each alleged offense along with the statute, as well as the days and counties in which the offenses occurred. The implications of a target letter are severe, so if you were to receive one it is crucial that you see legal representation from an experienced attorney that can understand and explain the complexities of such an investigation.