On an order issued by a judge in New Zealand, Kim Dotcom, the founder of a site for file-sharing, will be held in custody for copyright infringement. The judge stated that the alleged internet pirate was a flight risk. Dotcom will remain in custody till February 22. The US is currently doing its best to extradite Dotcom who faces money laundering and copyright infringement charges.
$175 Million brought in by Megaupload
US officials stated that Megaupload, the file-sharing site, has brought in $175 million since its launch in 2005. Some of the illegal activities that were carried out on the site were distribution and copying of copyrighted material like movies and music without getting the authorization required. According to Dotcom's lawyers, Megaupload only offered storage options on the internet. They also clarified that he will do everything possible to fight extradition even though it will take time to do this.
Four others have also been arrested in connection with the alleged Megaupload piracy. They were caught when police raided a country estate rented by Dotcom in New Zealand. This was done after the FBI made a request. According to the extradition laws in New Zealand, the prosecution should produce evidence to substantiate the charges made against the accused.
New Zealand Judge to Decide whether Prima Facie Case will Hold
The judge will decide whether a prima facie case can be filed. This will be based on whether putting the accused on trial will be justified if the offence had been committed in New Zealand. According to Grant Illingworth, a senior lawyer in New Zealand, in case the evidence is not sufficient to support pursuing this as a prima facie case based on the laws in the country, Dotcom and the others will walk away. An extradition treaty signed between New Zealand and the US allows the latter to take 45 days from Dotcom's arrest to make a request for extradition.
To find out more about copyright infringement and other white collar crimes, get in touch with Christopher Morales, a San Francisco Criminal Law Specialist.
Raymond Foakes, Sonoma Chapter Hell's Angels' former president, will have to serve nearly 6 years jail time for allegedly being involved in a $10 million mortgage fraud scheme. Foakes has been accused of getting mortgage loans illegally between 2006 and 2007. He supplied false documents to buy many homes. Foakes also altered bank statements to do this. One or more of the illegally acquired homes were used to grow marijuana.
In addition to spending time in prison, Foakes will have to make a restitution payment of $1,085,000. Hell Angels, a motorcycle gang, maintains that their former president is innocent. Foakes will not be able to comment on this, because following the sentence, his communication with the gang will be limited.
Foakes Charged in September 2011
Foakes' conviction can be traced back to September last year. He and seven others were charged with fraud. Among the others was one other leader of Hells Angels. The seven were accused of committing fraud by falsifying documents and altering bank statements. This is not the first instance of a Hells Angels member being accused of mortgage fraud.
In July 2011, Hells Angels Sydney Chapter's leader turned himself in for a mortgage fraud scheme. It was a $150 million worth scheme in which the leader financed equipments for earthmoving and motorcycles. A house in a suburb in Sydney was also financed through the scheme. The leader was accused of fraud and money laundering.
Mortgage Fraud could be on the Rise
A few reports suggest that mortgage fraud is on the rise. Cases related to the crime hit a record high in 2010. The reason was the remnants of the housing market that was at its peak in 2006 and 2007. Lee Farkas, the former owner of Taylor Bean and Whitaker, a mortgage company, was accused of being involved in a highly systemic mortgage fraud case. Since he was accused, he has been charged with taking $3 billion illegally from clients.
For more information about mortgage fraud and other crimes, contact Mr. Christopher Morales.
Allen Stanford, a former billionaire from Texas, was indicted by prosecutors for investment fraud two and a half years ago. He is supposed to appear for trial at the federal courthouse in Houston on the 23rd of January, 2012.
Before he was indicted in 2009, Stanford appeared in court with a lawyer and agreed to surrender. At that time, US marshals refused to arrest the founder of the Stanford Group Co., who was worth approximately $2.2 billion (by Forbes). The group was comprised of a number of companies that offered financial services under the control of Stanford.
Accusation: Billions of Dollars Skimmed
Stanford has been accused of skimming over a billion dollars in deposits made by investors. Prosecutors stated that he used the money to pay for his lavish lifestyle which included a private island in the Caribbean, cricket teams, yachts and several jets. Stanford was allegedly able to do this by misinforming depositors that their money was secure in liquid, conservative investments.
No Intention to Defraud
Attorneys from Houston, who are the lead defense counsel in Stanford's case, have stated that they will use thousands of business and bank records that will show that the former billionaire did not have the intention of defrauding people.
Weeks before Stanford was charged, he claimed that he was not a swindler. He even made a promise that he would clear the charges against his name. Stanford was also sure that he will reclaim assets which securities regulators had seized and repay investors who he had allegedly defrauded by providing bogus CDs. However, today Stanford suffers the setbacks that came about when he was indicted.
In 2009, he was beaten by an inmate and he sustained broken bones on his face. Later in prison, he got addicted to prescription medicines for anxiety. He then spent 8 months at a rehabilitation unit in prison. But according to Stanford, he does not remember parts of his life and the business empire he ran.
For a consultation regarding a white collar crime like investment fraud, contact Mr. Christopher Morales.
Seven men have been accused of being involved in an insider trading scheme in the US. This group of men has been charged with forming a team of co-workers and friends who made about $62 million through Dell Inc. shares' insider trading. Among the accused, are analysts and fund managers.
Preet Bharara - Insider Trading Ring Includes Investment Firms and Hedge Funds
US attorney, Preet Bharara commented on the white collar crime. According to him, it is an example of a grand level organized crime. The insider trading ring included 5 different investment firms and hedge funds - the largest scheme to have been involved in one stock, according to reports by the federal authorities. The alleged include California based Whittier Trust Co’s fund manager Danny Kuo, a New York based hedge fund analyst Jon Horvath and a former portfolio manager of Diamondback Capital Management LLC Todd Newman. These men have been taken into custody, according to Federal Bureau of Investigation's head, Janice Fedarcyk's report.
Preet Bharara added that the crime involves a group of friends who formed a club. The sole motive of the club was to make profit. The club members had been involved in a business of bartering inside information.
Profits Earned through Scheme of Same Magnitude as Galleon Group Insider Trading Scheme
Bharara pointed out that the profit earned through the scheme is of a similar magnitude as the insider trading scheme of the Galleon Group. Bharara’s office had been involved in a 5-year old probe of insider trading at the Galleon Group. Charges were brought against more than 63 people and about 50 pleaded guilty in the trial. Galleon Group LLC’s co-founder was also convicted for his involvement in the case. He is serving 11 years in imprisonment.
To discuss crimes of this level, get a consultation with San Francisco criminal lawyer, Christopher Morales.
A former sheriff’s deputy has been alleged to have been involved in bribery. The accused, Gilbert Michel, smuggled goods into the Men's Central Jail. According to reports from the office of a US attorney, the 38 year old Michel was snared in a sting operation conducted by the FBI last fall.
Michel got Illegal Goods for Prison Inmates in Exchange of Cash
In exchange for cash, Michel got illegal goods for a prison inmate. According to prosecutors, the accused brought cigarettes, cell phone and a note for a prisoner.
Michel had resigned last year after charges were brought against him. Michel has been charged with bribery of public official. Those accused of this crime are sentenced to imprisonment upto 10 years under the federal law. The accused accepted all charges and has agreed to cooperate in the matter. Michel’s court appearance will be next week.
Decision on Michel’s Penalty Pending
A decision regarding the penalty for Gilbert Michel has not yet been taken by the federal court. According to Michel’s attorney, Robert Brode, if a person realizes his mistakes and understands its consequences, the court takes it into consideration when declaring penalty. However, the matter is uncertain till the sentence is actually pronounced by a federal judge. Brode added that his client was not entrapped. However he refused to discuss the details of the case in fear of facing further charges.
Case Stemmed from FBI Probe on a Different Matter
The case stemmed from a probe by the FBI on a matter which involved guards brutalizing inmates. It has been reported that deputies practice racism inside prisons. A prisoner reportedly was injured by a deputy. A statement regarding this issue was released by Southern California’s American Civil Liberties Union in September 2011. In the statement, deputies have been accused of misconduct inside prisons.
In order to discuss crimes like this, call White Collar Criminal Lawyer, Christopher Morales.
A Palisades Parkman confessed that he had been involved in identity fraud and bank fraud. An identity-theft ring was run by the accused. He peddled social security cards to a large number of Korean clients. They used the fake IDs to steal millions of dollars through credit cards and fraudulent bank loans.
Sang-Hyun's Confession
The 45 year old Sang-Hyun confessed that he had been involved in a large number of fraudulent practices. The organization run by Sang-Hyun, fraudulently obtained social security numbers and made fake IDs. The organization ripped-off financial institutions and retailers with the unlawfully produced identification documents. Millions of dollars were sent to oversees clients. According to Paul J. Fishman, a U.S Attorney, the dismantling of this particular ring is a key step in fighting the growing issue of international organized crime.
Michael B. Ward - Park’s Illegal Activities Resulted in Big Losses for US Economy
The head of the Newark Division of the FBI, Michael B. Ward stated that the criminal enterprise run by Park carried out a number of frauds. These resulted in wide-scale losses in the US economy. The organization was involved in the fast building of credit histories and opening credit accounts with banks. According to Michael B, Sang-Hyun did not carry out the operations on its own. He was assisted by people who had been involved in such deceitful businesses for long.
Sang-Hyun Park Pleaded Guilty to 5 Felony Counts
Park pleaded guilty to 5 felony counts. He was accused of being involved in conspiracy to produce fake identification documents, conspiracy to commit bank fraud and wire fraud which affected financial institutions significantly. He has also been accused of money laundering and conspiring against the Internal Revenue Service. Park has been sentenced to 12 years of rigorous imprisonment.
To discuss white collar crimes like this, get a consultation with San Francisco criminal lawyer, Christopher Morales.
A federal court sentenced Eric Omar Jones - a resident ofClinton- to 13 years in confinement. The charges brought against the accused are that of committing bank fraud. Eric had been involved in sending fake statements to banks to get loans. In addition to 13 years in prison, the court also imposed restitution worth $150,000 on Eric Omar Jones.
The Accused Mislead People to Purchase Properties
Eric Omar Jones reportedly had been involved in misleading people to buy properties. Eric’s company,University of Hard Knocks InvestmentsInc., used credits from customers to buy properties. Customers in return, were made fake promises of getting big profits from the sale of the properties.
Jones stayed in a house owned by one of his clients. He stayed there without paying rent. The house owner had no knowledge about it. He continued to stay there for a while till the owner found out. Jones was convicted after this.
Jones Received $1 million from Financial Institutions
It was found out by the court that Jones received more than a million from financial institutions by providing false statements. It was also found that Jones abused a private trust position by interacting with unsophisticated investors. He deceived the law through false testimony.
Jones had been in the real estate business for over a decade. He used straw purchasers’ credit to buy properties through his firm. The properties were sold to the straw purchasers immediately after that. The purchasers were promised handle repairs, mortgage payments and large profits. However, as found by the court, all promises were fraudulent.
Straw Purchasers gave Testimony at Jones’ Trial
About six straw purchasers gave testimony against Jones. Along with Jones, David Pikul, the closing attorney, had also been involved in the fraud. David Pikul conspired with Jones in making false statements to federal banks.
For a consultation with a San Francisco criminal lawyer, call Christopher Morales.
A hospice care company owned partially by a San Francisco based private equity firm has been accused of cheating Medicare of a large amount of money. A legal complaint has been filed against the hospice, called AseraCare, by the US Department of Justice for the fraud.
AseraCare Illegally Certified Patients for Medicare Payments
According to the charges brought against AseraCare, it illegally certified patients to collect payments from Medicare. The hospice care company has been involved in such fraudulent activities since 2007. Through its deceitful business, AseraCare admitted patients and retained those who were not eligible to receive Medicare payments. AseraCare's auditor alerted the company regarding the illegal activities it had been carrying out. But AseraCare continued with its fraudulent business. Millions of Medicare dollars have been spent illegally.
Hospices Receive Medicare Payment worth $13 Billion Every Year
Hospices offer spiritual and psychological services to patients who will live for less than 6 months. Medicare funding worth $13 billion is spent on hospice care per year. About 1.5 million Americans approach hospice care centers every year. Among them, around 91,000 are based in California.
Former AseraCare Hospice Executive Filed Lawsuit against the Organization
A lawsuit was filed against AseraCare Hospice by its former executive and a nurse who was associated with the company. According to attorneys involved in the case, fraudulent practices take place throughout the organization.
More cases have been filed regarding fraudulent practices that took place in AseraCare Hospice. The organization is a subsidiary of Golden Living. It is a company providing health care services to nursing homes as well as home health care. 1% of Golden Living shares are owned by a private equity firm based inSan Francisco. 99% of Golden Living is owned by Washington State Investment Board.
Cases have been filed against Golden Living. It has about 3 hospice services in Concord,Stockton and Fresno.
Contact San Francisco Criminal Lawyer Christopher Morales for help with cases related to white collar crimes like fraud.
An employee of the Fire Department in New York Cityhas been accused of taking bribes. The employee, Carlos Montoya took thousands of dollars as bribes and compromised the safety standards of day care centers in New York City. Montoya helped day care centers in obtaining fake paperwork which certified the organizations as being eligible to take care of infants.
Montoya appeared before a federal magistrate judge on Friday in a US District Court in Manhattan. The judge, Henry B. Pitman, ordered a bail of $100,000 for Montoya’s release.
Preet Bharara on the White Collar Crime
US attorney, Preet Bharara stated that the crime committed by the accused is severe. Montoya was responsible for ensuring that all day care centers in New York City complied with the fire safety standards of the state. The accused instead overlooked the flaws in safety measures adopted by the institutions.
Investigation Started in August 2010
An investigation was announced by the Department of Investigation in August 2010. The body described a scheme in which a group of immigrants, who spoke Russian, controlled over thirty day care centers across Staten Island and Brooklyn. This group of Russians paid around $100,000 in bribes to city workers so that they would overlook the loopholes in safety regulations adopted by the organizations.
The city workers had worked for the Human Resource Administration, Department of Health and Mental Hygiene and Administration for Children’s Services. These organizations play significant roles in benefit programs related to child care. Such programs pay for child care related expenses to low income families.
The first employee of the Fire Department to be arrested as a part of the investigation process is Mr. Montoya. He had been involved with the department since 1993. Montoya had been a supervising inspector since 2005.
For a consultation with a White Collar Criminal Lawyer, contact Christopher Morales.
A few days ago, James Fleishman, a manager at a hedge fund, was sentenced to two and a half years prison time. He was accused of insider trading and was convicted for wire fraud and conspiracy. This was following a trial that lasted for two and a half weeks. According to the judge, the crime is one that appears to be on the rise. This is despite the fact that crackdowns are done on people who engage in the crime.
Over $800,000 in Earnings
In the role of an executive at Primary Global Research, a firm based in California, he made over $800,000 in three years. When James Fleishman was being sentenced for his actions, the District Judge of the United States of America, Jed Rakoff, said that there was a requirement for deference. This happened in September. Based on a statement by Ethan Balogh, the defense lawyer, Fleishman had worked openly and honestly without intentions of stealing.
In a government probe that was carried out a few weeks ago, many, including James Fleishman were charged. The probe was done on consultants who were considered experts in their area of work. One of their key responsibilities was to connect those working in public companies with powerful managers of hedge funds.
Balogh States Fleishman was an Honest Salesman
Balogh stated that James Fleishman had no reason to believe people were misappropriating information or stealing. He continued to work as an honest salesman. According to prosecutors, the conspiracy in which Fleishman was involved, gave managers of hedge funds, the chance to find out about confidential sales forecast at Apple and features of the iPhone. In addition, they also uncovered details about K48, the name used at Apple for the iPad.
US Attorney Preet Bharara mentioned that people formed a corrupt network on the inside of a few of the leading companies in the technology industry. These people took on the role of consultants who eventually sold out employers. They resorted to stealing of important inside information and selling it.
To get a free consultation with Attorney Christopher Morales, regarding White Collar Criminal Defense, call us now.