Yet another lawyer is alleged to have stolen money from clients January 29, 2009
Posted by whitecollarcrimenews in News.Tags: Crime, Fraud, Law, money laundering, News
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Steven Rondos, a New York attorney that lives in New Jersey is accused of stealing over 4.7 million from his clients. As if people didn’t hate attorneys enough, he allegedly stole from people with physical or mental disabilities; people he was suppose to help as their appointed guardian.
He is charged with money laundering, grand larceny and scheme to defraud. Another problem he has is that his best bargaining chip, money that he can pay back to the alleged victims, may already be frozen because a civil suit has also been filed against him and his wife (who is also his law partner in the firm Raia & Rondos). However, his wife will probably not be charged. It seems that the Government is pretty confident that they can find the money.
He also faces charges in New Jersey. Attorney David Frankel represents him in New York while Daniel A. D’Alessandro (who does not seem to practice criminal law, let alone white collar crime) represents him with regard to charges he may be facing in New Jersey. Based upon his New Jersey attorney’s statements, it seems like they are already working on a plea deal where they just throw him on the mercy of the court and blame everything on depression and other mental illnesses.
In these cases, attorneys are held to a higher standard and when you take advantage of victims who are more or less helpless, you are looking at a very tough sentence. I fully expect this case to plea out and plea out sooner rather than later; or without extensive litigation. With money frozen, he may not even have the money to litigate this case if he wanted to. He would probably need at least $1,000,000 to litigate both cases from start to finish and I doubt he has it.
NY Times article is here.
Internal investigations can lead to criminal indictments January 27, 2009
Posted by whitecollarcrimenews in Uncategorized.Tags: Crime, Fraud, Law, New Jersey, News
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I think I’ve addressed this issue before, but it never hurts to address it again and again and again. I have helped many people avoid ever being charged or indicted because they came to me early enough. When this happens, I can either resolve the case or I can throw a wrench into the prosecutor’s case. I have done this many times and it significantly reduces the money that I can make. While I may seem odd for an attorney to say, I am perfectly fine with that. Any criminal defense attorney knows this is the toughest area of the law with the least financial reward. You do this because it is your passion and not to become rich. To me, the best way to win a trial is to never have your client charged to begin with.
While the press release is vague, I have to think that a good attorney could have helped Mark Darby of the Bronx. He is charged in New Jersey with Health Care Claims Fraud and Medicaid Fraud. If convicted, he is looking at 5 to 10 years in prison all for allegedly stealing $4,173!
Lets assume he is guilty of a second. 5 to 10 years in prison? Is this really worth our tax dollars of prosecuting this case and then housing this man? Have you been to Camden lately? Think our tax money can be better spent elsewhere? Talk to any New Jersey state workers who have lost their jobs or had their wages frozen? Think they want this guy to do 5 to 10 years?
Back to the point of this post. This case started with an internal investigation by his employer, Innovative Specialists Inspirational Solutions. Darby was a behavioral services counselor who allegedly submitted false time sheets that indicated he provided services to four Medicaid patients when this did not actually occur.
Based upon my experience, I just find it hard to believe that there was no way to avoid an indictment in this case. We are talking about four patients and $4000. He could have paid this money back with a civil penalty and be done with the whole thing. I can only guess that he didn’t have an attorney for the internal investigation. If he did, he could have fought the termination which would have scared the company into a settlement. I know because I’ve done it before.
Moving on to the case itself. If you can work out a deal without prison time, he would be wise to take it. If he refuses and would be willing to risk a trial, I would attack the company itself. No company wants it dirty laundry exposed in court and if the heat it turned up enough, good things can happen. My prediction is that this guy will take a plea that calls for 3 years in prison.
AG’s press release is here.
Some people think that no one should be defended January 27, 2009
Posted by whitecollarcrimenews in Misc..add a comment
Isn’t is scary that some people read a news story and think that the person should not be defended because they know that the person is 100% guilty? Check this out:
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and if u ever find urself in T. Child’s position, hire this guy: but then again, who can believe who in a case like this. it reminds of me of postal workers of the ’80s going postal. this is just another way to do it without a gun. currently, the Californian unions for city workers and other government employees are holding the entire state hostage over the budget. they want the dems to get taxes raised to insure their pensions and salaries and whatnot, in exchange for a budget. most Californians (of which i would say that I am an EX) would agree that taxes are too high already, and that spending reductions would be better, even if it means a few workers go postal or wifi-al. yet as an ex-postal worker (over 4 decades ago, for just a few months) i can see how an employee would go nuts within that working environment, and hold passwords hostage or mail out white powder. it’s an insane way to live. to all independent designers and artists, count ur blessings u are not caught up in that samsara. to all Californians, Buddha help you in the years to come, u have been Terminatered and should prepare for SkyNet. |
This was from http://photoshopcafe.com/cafe/viewthread.php?tid=48632
Ponzi scheme hits Long Island, New York January 26, 2009
Posted by whitecollarcrimenews in News.Tags: Crime, Fraud, Law, Madoff, mail fraud, News, Ponzi scheme
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This is really starting to get out of hand. Arrests for Ponzi schemes are just exploding in the past few weeks. It is actually getting a little boring, at least for me as it is an old scam and not a very creative one. Nevertheless, I’ll continue to blog about the more interesting stories and since I’m in the NY media market, I feel compelled to discuss this one.
Authorities allege that Nicholas Cosmo, founder of Agape World Inc in Hauppauge. New York stole over $380 million from investors by using a Ponzi scheme. He has a big problem as he is a convicted felon.
In 1997, Cosmo was working as a stockbroker at Continental Broker-Dealer Corp. where he was accused of misappropriating funds. He pleaded guilty to a federal charge in 1999 and was sentenced to serve 21 months in prison. Not only will this increase his exposure for sentencing but the Government may be able to use this prior conviction against him in what is known as 404(b) evidence. As if his attorneys didn’t have it hard enough huh?
I’m sure there will be many reasons why it will be difficult for his attorneys to find legitmate excuses for his actions. Besides his prior conviction, another one will be that he said Agape started in 1999 even though he didn’t get out of prison until 2000.
Story is here.
Yet even more arrests for Ponzi schemes January 24, 2009
Posted by whitecollarcrimenews in News.Tags: Crime, Fraud, Law, mail fraud, News, Ponzi scheme, theft
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This is getting pretty crazy huh? The media made it seem like Madoff invented the Ponzi scheme. Now, there are too many arrests in a day to cover. I’m sure there are plenty others to follow.
Many of these cases begin with a civil suit. I’m concerned that the attorneys working these civil suits are not skilled in handling white collar crime cases. Otherwise, they will be able to see the criminal case long before the arrest and as a result, they can use the civil case to start building a defense. Discovery in a civil case is more or less wide open whereas a Federal criminal case is much more limited.
However, this works both ways. So, the client can be deposed whereas in a criminal case, they have the right to remain silent. I believe that this scares many attorneys into throwing in the towel when it comes to the civil case. While this would normally make sense, the chances of winning a Federal criminal case is remote if the client is indicted. Thus, if the attorney can develop some good evidence at the civil case, they could put some doubt in the minds of the US Attorney’s office before the client is even arrested. Due to the way they pick and choose cases (which accounts for the high conviction rate), they may never arrest the client in the first place. We have done this with many Federal and State cases. This saves our clients’ reputation not to mention a substantial amount of legal fees.
Two of the more recent Ponzi scheme arrests are:
1. Vander Tuig, Jonathan Carman, Mark Sostak, Soren Svendsen, Scott Yard and Robert Waldman have been charged with grand theft and securities fraud. All six men were affiliated with the Carolina Development company and were alleged to have defrauded over 1000 victims out of a total of $52 million. The alleged scam was to promise big returns to clients investing in luxary property next to golf courses in California. Like many of these cases, this alleged fraud came to light during a 2006 SEC investigation which resulted in a 2007 judgment. Story is here.
2. Frank Castaldi is alleged to have stolen tens of millions of dollars from about 200 to 300 clients. Since 1985, he allegedly promised investors returns of 10 percent to 15 percent on six-month promissory notes. Unlike the six men in the other story, Castaldi is not locked up with a multi-million dollar bail. Why? Because he is cooperating. That’s the real interesting part of this story. His attorney is obviously doing a good job for him.
He owns several businesses and thus, has several business partners. Anyone connected to this guy is in big trouble and needs a good attorney ASAP because the more people he brings in, the better of a deal he will get.
The story is here.
My client escapes prison and a criminal record in theft by deception case January 22, 2009
Posted by whitecollarcrimenews in My Cases.Tags: Crime, Fraud, Law, New Jersey, News, theft by deception
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This case took years to resolve. I’m happy that it ended well and that I can finally talk about it. First, the article is here. However, the article only tells you a small part of the story. I’ll tell you the rest. Second, I’m not going to use her name in this post even though it appears in the article. I assume the article will be deleted at some point, so I don’t want her name on my blog.
The gist of the case is that my client and her boyfriend were alleged to have created a fake construction company. They then used that company to buy various high end merchandise, lease apartments, buy and/or lease luxury cars and lead a luxury lifestyle. Her boyfriend was alleged to have then used this fake company to set up accounts with payroll companies. The companies gave them checks in large amounts (one company gave $464,000) and then they were reimbursed with checks that would eventually bounce. Once you added it all up, the total fraud would probably total over $1 million. They had their house raided by the Secret Service and they were subsequently arrested by New Jersey State law enforcement.
When I first went to visit my client in jail, she had quite the story to tell. Her boyfriend had engaged in approximately $1 million of theft and fraud and she knew little to nothing about it. However, everything was in her name! To be honest, I didn’t believe any of it at first. Since I am an open and honest attorney (yes, a few of us exist) I called her on right then and there. After discussing the case with her further, I was sold. It was my opinion that she was suffering from a type of battered women’s syndrome. In other words, she was subject to so much abuse and control that she shut a lot out and didn’t question anything. Of course, it would be tough to sell this to anyone else, including the jury.
The first job was to get her out of jail; which I did fairly quickly after I first met with her. At that point, I knew that trial prep had to start right away. This would be a very complicated case and there isn’t exactly a play book that I could consult for this type of case. The prosecutor was looking to put her in prison for 14 years. I also soon learned that she was facing possible Federal charges as well. So, I had two trials to prepare for!
I knew that her story was not going to change so it wouldn’t really matter if law enforcement heard it now or at the trial. Thus, I made the rather unorthodox decision to have her make a statement without any real discovery and without any plea offers. Even after she made a statement, the State wasn’t swayed. So, I had to think of something else.
The Secret Service was incredibly professional. The agents I dealt with were great even though they were looking to prosecute my client. Because the Federal case was far broader than the State’s case, they wanted to take a statement from her even though they had the one she gave to the State.
After many months of going back and forth, I finally convinced the Secret Service to consider my client’s story. As a result, they flew in a polygraph specialist from DC. My client was hooked up to the machine for the better part of the day. In the end, she passed with flying colors. To say that everyone (besides me) was shocked is a huge understatement. At that point, any Federal charges against her were no longer an issue. That just left the State charges.
After a couple of years later, I finally got a call that the case would be resolved so that my client would not get a criminal record. That was last summer. We made it official this week. The news article doesn’t properly explain what occurred. My client, although she pled guilty to one count of conspiracy, will not have a criminal record. She was entered into the pre-trial intervention program which is a diversion program here in New Jersey. When she completes the program, the charges will be dismissed. Thus, no criminal record and no prison.
While the result was great, I think it would have been much easier if my client would have called me at the first sign of trouble. I also wonder how many other attorneys would have put in so much effort into the case instead of just trying to sell her out. A good white collar crime attorney should know that some of these cases take many years to resolve. Problem is, it can be hard to find a good attorney!
Joseph Forte, yet another alleged Ponzi scheme January 20, 2009
Posted by whitecollarcrimenews in News.Tags: Crime, Fraud, Law, Madoff, News, Ponzi scheme
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Another day, another Ponzi scheme. Is this getting boring yet? I would really like to see some of these cases get litigated but it’ll probably never happened.
Anyway, this latest allegation involves Joseph Forte, a Philadelphia based fund manager. He is alleged to have stolen $50 million from 80 investors over 10 years. He has two big problems that others like Madoff and Art Nadel don’t have. One is his age. At only 53, a lengthy prison sentence will actually mean something to him. With an older defendant, it is hard to scare them with a long prison sentence since they will likely die in prison if it is 5 years or 20.
His other problem is that he admitted to the scam. I can understand that average person not understanding how the police work, but how does this guy admit guilt here? He must have a team of attorneys working for him. How did they ok that? I’d really like to know more as that makes no sense at all.
Story is here.
Is Art Nadel the Madoff of Florida? January 19, 2009
Posted by whitecollarcrimenews in News.Tags: Crime, Fraud, Law, Madoff, News, theft
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As the economy continues to go down hill, white collar crimes will increase because desperate people will turn to fraud to make money while existing cases will get exposed. A good example of the latter appears to be Art Nadel, a Florida hedge fund manager with Scoop Management.
Although there are no charges, he is suspected of defrauding his investors out of $350 million. Problem is, he went missing last week. Although he left a suicide note, he called his wife from Louisiana. Authorities are looking for but without a warrant, they can do little when they find him.
Although law enforcement states that no one else appears to be involved, his wife, who is a principal in the company, along with any other management figures need attorneys right now. While I’m sure they have various business attorneys, they should get some good criminal defense attorneys that actually know how to represent real people. As both a wife and business partner, Mrs. Nadel will be answering many, many questions. How she handles those questions will not only help her stay out of trouble, but it will help her keep the money that she still has.
Article is here.
Update on fake vet (with pic!) January 15, 2009
Posted by whitecollarcrimenews in Uncategorized.Tags: Crime, Fraud, Law, New Jersey, News
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You knew someone would write a good article about this story at some point. Didn’t take long. Daniel C. Tyce aka Danielle Smith may be facing even more charges according to this article. It seems like the possible defense I discussed in last night’s post might be a little more difficult than I originally thought if these allegations are true.
The website for his business is http://sjsar.webs.com. The staff lists three people, with two of them probably the same person. Regardless, anyone that worked there should get an attorney right away.
Official Misconduct strikes again! January 14, 2009
Posted by whitecollarcrimenews in News.Tags: Crime, Law, New Jersey, News, official misconduct
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I’ve been saying that New Jersey’s official misconductstatute has been going too far for quite some time now. A local reporter just interviewed an attorney about a man that was sentenced last week. That story is here. Its a really great article as a non-lawyer with an audience agrees with me. As this statute ensnares more and more people that it was never intended to hurt, maybe the public will start to ask for something be done.
Here’s the latest victim. Elbert Reid of Irvington, New Jersey has been charged with official misconduct and three counts of forgery. Prosecutors allege that he sold at least three fraudulent inspection stickers. Here’s the best part, he doesn’t even work for the State! He works for Parsons, a private company that has been running New Jerseys inspection stations since 1998. The press release is here.
So, this guy, who works for a private company, gets less than $300 total for three stickers and he should go to prison for 5 to 10 years? If this was your friend, husband, brother, father, etc, you would be ok with that? Meanwhile, much of Camden looks like a third world country. We really have our priorities in order huh?
