The NJ Unemployment Monetary Interview March 28, 2010
Posted by jefhenninger in News.Tags: unemployment fraud
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A monetary interview is used in New Jersey if there is any question about the amount of unemployment benefits you are entitled to receive. You will receive a notice in the mail that you will be scheduled for a telephone interview with a monetary representative. While the notice indicates that a representative will call you at the scheduled time, someone may not call you at all and you will receive another notice. If they do call you, it may be later so you must be available for two hours after the time scheduled.
While a monetary interview does not mean that you are suspected of fraud, anything you say could be used against you in a fraud prosecution. At the time of the interview, you will be questioned about your proof of employment (pay stubs, W-2, etc.) for the last 18 months prior to filing your unemployment claim. As part of the investigation, your former employer may be sent a request for wage and separation information to complete and return by the time of the interview.
After the monetary interview you will be sent a determination explaining the amount of benefits (if any) you are entitled to receive. If you disagree with the determination, you have the right to appeal. Instructions for filing an appeal are on your determination. If you are denied because of fraud, the investigation will start/continue.
While the representative may tell you that you don’t need an attorney or you cannot have an attorney to help you, they are wrong. You have the right to an attorney! If you think that there is any chance you are under investigation in New Jersey for unemployment fraud, give me a call right away.
Man Indicted on Charges That He Defrauded Investors of $1.7 Million March 25, 2010
Posted by jefhenninger in News.Tags: securities fraud
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Samuel M. Serritella, 65, of Garfield, has been charged with securities fraud, theft by deception, misapplication of entrusted property, money laundering, and misconduct by a corporate official, all in the second degree.
The charges resulted from an investigation by the New Jersey Bureau of Securities and the Division of Criminal Justice. Serritella was initially charged by complaint on July 21, 2009. Deputy Attorney General Francine S. Ehrenberg presented the case to the state grand jury for the Division of Criminal Justice Major Crimes Bureau.
Serritella was president, chief financial officer and chairman of International Surfacing Inc., based at 5 Erie Street in Garfield. Between February 2002 and May 2008, Serritella allegedly obtained in excess of $1.7 million from more than 300 investors by selling them shares of International Surfacing. The shares were not registered with the Bureau of Securities as required by law, and Serritella was not registered as an agent authorized to sell securities in New Jersey.
Most investors were from New Jersey, and many of them were police officers and firefighters. Serritella represented that he was manufacturing therapeutic horseshoes with a cushioning layer of rubber on them. He held investment conferences where he told investors they could get in on the ground floor by purchasing shares in a company he planned to take public. He allegedly told at least one group of investors during a hotel meeting that the venture’s clients included a prince in Dubai who purchased the shoes for his camels. He also falsely claimed that they were being used by Olympic competitors and would be used in the Olympics in Athens, Greece.
Serritella allegedly stole more than $350,000 in investor funds to pay for personal expenses. Although he used some funds for startup costs for the company, including renting a building and paying salaries, he never purchased the necessary equipment and tools to manufacture the horseshoes, and the venture failed.
Serritella allegedly deposited the investors’ funds into several bank accounts that he controlled. He allegedly wrote checks to himself, made cash withdrawals at ATMs, paid credit card bills, and made debit card purchases using investor funds in the accounts. He used the funds to pay for such personal expenses as airline and hotel bills, tavern bills, and medical costs. He also allegedly used investor funds to make personal loans to friends totaling $64,000.
At the time that Serritella was initially charged in July 2009, New Jersey Bureau of Securities Chief Marc B. Minor issued an order assessing a penalty of $20,000 against Serritella for violation of the New Jersey Uniform Securities Law. The Bureau Chief found that Serritella committed securities fraud and sold unregistered securities as an unregistered agent.
Couple Indicted on Charges They Stole $100,000 from an Elderly Relative March 25, 2010
Posted by jefhenninger in News.Tags: misapplication of entrusted property
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Nancy LaCorte, 49, and her husband, Robert LaCorte, 57, of Franklin Township, were charged in a five-count state grand jury indictment with conspiracy, theft by unlawful taking, theft by failure to make required disposition of property, and misapplication of entrusted property, all in the second-degree. They were also charged with third-degree money laundering. The indictment was voted yesterday and filed in court today.
The 88-year-old woman had granted a power of attorney over her financial accounts to Nancy LaCorte. Nancy LaCorte’s name was also added to the relative’s checking account, where her pension and Social Security checks were directly deposited. Nancy LaCorte was required to use the funds in the accounts for the benefit of the victim. However, it is alleged that between February 2005 and December 2007, the couple stole approximately $100,000 from the accounts.
Robert LaCorte, a licensed insurance agent, allegedly used $162,552 in funds from the victim’s IRAs without her knowledge to open two annuity accounts with a life insurance company. Robert LaCorte earned more than $11,000 in commissions for opening the accounts. The defendants allegedly stole a total of approximately $100,000 from the annuity accounts and two bank accounts of the victim by making withdrawals and transfers to their personal accounts. The thefts were uncovered after another relative learned the victim did not have funds to pay her rent.
Two New Jersey Men Charged with Insurance Fraud March 25, 2010
Posted by jefhenninger in News.Tags: Insurance Fraud
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Shannon Daney, 34, of Pine Hill, and Nicola (aka Nick) Bellapingna, 34, of Deptford, were charged this week with conspiracy to commit insurance fraud, insurance fraud, and attempted theft by deception, all in the third degree.
The Gloucester County grand jury indictment alleges that between Nov. 2, 2006 and Feb. 26, 2007, Daney and Bellapingna conspired to falsely report to the Glassboro and Washington Township Police Departments that Daney’s 2006 Honda Civic had been stolen. The indictment further alleges that the defendants reported the purported theft to the Liberty Mutual Insurance Company and attempted to obtain approximately $13,000 from Liberty Mutual by creating the false impression that the Honda had been stolen.
The investigation by the Office of the Insurance Fraud Prosecutor revealed that earlier in the evening on Nov. 2, 2006, the Honda had been involved in an automobile accident in Washington Township and could not have been stolen from a parking lot in Glassboro later that evening.
Cherokee Investment Partners Under Investigation March 22, 2010
Posted by jefhenninger in News.Tags: federal investigation
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Federal investigators have subpoenaed documents from the New Jersey Senate Democratic Office and Pennsauken Township seeking records and communications concerning the developer of two failed Camden County, New Jersey redevelopment projects. The subpoenas have brought to light a probe that is focusing on Cherokee Investment Partners of Raleigh, N.C. The firm was also behind the defunct plan to build homes and a golf course atop landfills in North Jersey.
I am sure the company has a team of attorneys but whether they know how to properly handle this type of case is a different story.
Story is here.
Two Former Computer Programmers for Bernard L. Madoff Indicted March 18, 2010
Posted by jefhenninger in News.Tags: Bernie Madoff
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JEROME O’HARA and GEORGE PEREZ — former computer programmers for Bernard L. Madoff Investment Securities, LLC (“BLMIS”) — were indicted today by a federal grand jury in Manhattan on charges of conspiracy, falsifying records of a broker-dealer, and falsifying records of an investment adviser.
As alleged in the Indictment returned today in Manhattan federal court, as well as statements made in the course of relevant court proceedings:
Beginning in 1990 and 1991, respectively, O’HARA and PEREZ were employed as computer programmers at BLMIS. They primarily were responsible for developing and maintaining computer programs that supported the operation of the BLMIS investment advisory business (the “IA business”). Many of those programs were run on an IBM server known within BLMIS as “House 17.”
Under the federal securities laws and regulations, BLMIS was required to keep certain books and records in the ordinary course of its business. Between 2003 and 2008, BLMIS was subject to at least five reviews by the United States Securities and Exchange Commission (“SEC”) and a European accounting firm that was conducting a review of BLMIS’s operations on behalf of a European IA client. As part of a concerted effort overseen by MADOFF and his employee, FRANK DIPASCALI, JR., to deceive both the SEC and the European accounting firm, O’HARA and PEREZ developed and maintained computer programs that generated numerous false and fraudulent records.
O’HARA and PEREZ are alleged to have known that the special programs they developed contained fraudulent information and that they were used in connection with the SEC and European accounting firm reviews.
Two Denver Men Indicted for Mortgage Fraud March 18, 2010
Posted by jefhenninger in News.Tags: money laundering, Mortgage Fraud
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Shawn R. Tieskotter, age 36, of Greenwood Village, Colorado, and Craig D. Patterson, age 30, of Littleton, Colorado, were indicted by a federal grand jury in Denver on March 10, 2010, on charges of money laundering, wire and mail fraud. Patterson was arrested by federal agents without incident. He appeared in U.S. District Court in Denver on March 12, 2010, for an initial appearance where he was advised of the charges pending against him.
According to the indictment, between March 26, 2005, and continuing through June 30, 2005, in Colorado and elsewhere, Shawn Tieskotter and Craig Patterson knowingly executed and attempted to execute a scheme to defraud various financial institutions as well as commercial mortgage lenders. The scheme was executed in connection with residential mortgage loan applications relating to 13 properties in the Denver, Colorado metropolitan area. The neighborhoods included Aurora, Centennial, Littleton, Parker and Castle Rock.
As part of the scheme, Tieskotter and Patterson prepared, submitted and caused to prepare and submit applications for residential mortgage loans and related documents in Tieskotter’s name. The applications included a first mortgage and second mortgage for each of the 13 properties. Each of these applications contained materially false and fraudulent representations that Tieskotter intended to use the property as his primary residence and most of the applications contained materially false and fraudulent representations about the extent of Tieskotter’s liabilities related to the other residential mortgage loans.
It was further part of the scheme for Tieskotter and Patterson to hide from lenders the extent of Tieskotter’s liabilities for the other mortgages, before such liabilities would appear on Tieskotter’s credit reports. At the time of closing, Tieskotter and Patterson caused additional disbursements of monies to PK Design Group, LLC, an entity controlled by Patterson, or Dream Design, a trade name for an entity controlled by Tieskotter. Tieskotter and Patterson concealed from the lenders and other parties associated with the transactions their control of these entities.
Upon conviction of the alleged offenses, Tieskotter and Patterson shall forfeit to the United States all property constituting or derived from proceeds traceable to the commission of the offense, including but not limited to a sum of money equal to $219,566 for money laundering and $4,710,666.86 for wire and mail fraud charges.
Father and Son Indicted on Federal Charges Relating to Operation of 4 Aces Bail Bonds March 18, 2010
Posted by jefhenninger in News.Tags: wire fraud
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A federal grand jury has indicted Milton Tillman, Jr., age 53, and his son, Milton Tillman, III, a/k/a “Moe,” age 35, both of Baltimore, Maryland, for conspiracy to defraud the Treasury Department, making false statements on tax returns, and unlawfully engaging in the business of insurance. Milton Tillman, Jr. is also charged with wire fraud in connection with a scheme to defraud Ports America Baltimore, Inc., where he worked as a member of the International Longshoremen’s Association AFL-CIO (ILA).
“The indictment alleges that Milton Tillman, Jr. and Milton “Moe” Tillman, III conspired to defraud the IRS and operate a bail bond business in violation of federal law, while Milton Tillman, Jr. collected pay for a no-show job at the Port of Baltimore,” said U.S. Attorney Rod J. Rosenstein. “Because the bail bond industry plays a major role in Maryland’s criminal justice system, the integrity of the system is jeopardized by corrupt bail bondsmen.”
According to the 28 count indictment, Moe and Milton Tillman operated 4 Aces Bail Bonds, Inc. (4 ACES) with offices at 2332 E. Monument Street in Baltimore and 1101 North Point Boulevard, Suite 121 in Baltimore. 4 ACES engaged in the bail bonding business, securing the release of individuals who were charged in the District and Circuit Courts of Maryland and elsewhere. Beginning on December 28, 2004, 4 ACES also did business as Global Surety, incorporated by Moe Tillman. In return for assuming the risk of an arrestee’s future appearances in court, 4 ACES collected a fee, usually a percentage of the bail amount set by the court. A percentage of each fee collected by 4 ACES was forwarded to the surety insurance company insuring the bond. 4 ACES’ share of the fees constituted virtually all of the company’s gross receipts. Between 2001 and 2006, the number of bail bonds written increased quickly, so that the company’s gross receipts reported to the IRS went from $188,337 in 2000, to $5,822,588 in 2006.
The indictment alleges that from 2001 through October 2007, Milton and Moe Tillman structured the ownership and business operations of 4 ACES in ways that concealed from the IRS Milton Tillman’s control of the company and the amount and disposition of the income Moe and Milton Tillman derived from the company. The indictment alleges that Moe and Milton Tillman failed to report to the IRS the use of 4 ACES funds to pay some of Milton Tillman’s personal expenses, such as payments on life insurance policies, car payments on his 2004 BMW, and payment of his personal income taxes. In addition, Milton and Moe Tillman allegedly transferred 4 ACES funds to themselves or corporations they controlled and used the funds for their personal gain. The Tillmans allegedly used the pretense that some of the transfers were non-taxable loans, then used the funds to invest in real estate through the payment of earnest money deposits, closing costs and monthly mortgage payments, as well as for other purposes.
Milton Tillman was also a member of the International Longshoremen’s Association AFL-CIO and was assigned to particular shifts to unload or load cargo vessels on behalf of Ports America Baltimore, Inc., a stevedoring company. The indictment alleges that in addition to misrepresenting to the IRS the extent to which he worked as a longshoreman, Milton Tillman allegedly defrauded Ports America, obtaining wages and fringe benefit payments for hours that he did not work at his job. The indictment alleges that Tillman obtained approximately 64 payroll checks that included payment for hours he did not work, including hourly wages and benefits he received while on vacation in Brazil, Spain and Las Vegas.
Specifically, the indictment charges that Milton Tillman filed false tax returns for 2002 through 2006, substantially underrreporting his total income, and that Moe Tillman did the same with his 2005 and 2006 tax returns. In addition, the indictment charges that Moe Tillman filed false corporate tax returns for 2004 through 2006. Furthermore, the indictment charges that Milton Tillman was prohibited from engaging in the business of insurance due to a previous conviction involving dishonesty and that Moe Tillman was aware that his father was prohibited from engaging in the business of insurance, but still permitted his father to participate in the bail bond business. Finally, Milton Tillman is charged with wire fraud in connection with the scheme to defraud Ports America.
Former Owners of Temporary Employment Agency Charged in Massive Cash Payroll Scheme March 18, 2010
Posted by jefhenninger in News.Tags: false tax returns
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Two former owners of a temporary employment agency in Stoughton were charged today with paying more than $24 million dollars in unreported cash to employees of their temporary employment agency as part of a conspiracy to avoid paying more than $7 million dollars in taxes, and hundreds of thousands dollars in workers compensation insurance premiums.
MICHAEL POWERS, age 45, of Wesport, and JOHN MAHAN, age 46, of Stoughton, were charged with one count of conspiracy to defraud the Internal Revenue Service (IRS) and their workers compensation insurers, one count of mail fraud, and two counts of false tax returns, all arising out of their operation of a temporary employment agency.
According to the Indictment, between 2000 and 2004, POWERS and MAHAN owned and operated Commonwealth Temporary Services, Inc. It is alleged that in order to avoid paying employment taxes, such as Social Security and Medicare, and to fraudulently reduce the businesses’ insurance premiums, POWERS and MAHAN arranged to pay more than $24 million of their payroll in cash, under the table.
Commonwealth Temporary Services, Inc. supplied hundreds of temporary laborers to businesses throughout Eastern Massachusetts. The amount an employer pays in payroll taxes (FICA) and workers compensation insurance premiums is largely dependent on the size of their payroll. POWERS and MAHAN allegedly lied to both the IRS and their insurers about the size of their payroll, and paid the majority of their employees in cash to make their fraud more difficult to detect.
Two Executives of Aircraft Leasing Companies Indicted March 18, 2010
Posted by jefhenninger in News.Tags: commercial bribery
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The owner of an aircraft leasing company was ordered released from federal custody this evening after he was arrested yesterday for allegedly engaging in a commercial bribery scheme with an executive of another commercial airplane sale and leasing company. Brian Hollnagel, owner, president and chief executive officer of the BCI Aircraft Leasing, Inc., formerly of Naperville and later Chicago, was charged in a federal grand jury indictment that was returned on March 10.
Also indicted, but not arrested, was Brian Olds, 67, of Kildeer, former vice president of the Aircraft Group of AAR Corp., of Wood Dale, who was also involved in the sale and leasing of commercial aircraft. He was charged with wire fraud, two counts of tax evasion and filing a false federal income tax return.
The indictment seeks forfeiture of at least $400,000 representing alleged bribe payments from Hollnagel to Olds, as well as unspecified proceeds from the sale or purchase of airplanes by BCI as a result of the alleged bribe payments.
According to the indictment, in 2004 and early 2005, Hollnagel and Olds agreed that in exchange for a bribe payment of approximately $250,000, Olds would use his position at AAR to ensure its purchase from BCI of two commercial aircraft, which were then under lease to US Airways. In negotiating for AAR’s purchase of the two planes from BCI, Olds allegedly provided Hollnagel and BCI with confidential information regarding the price that AAR was willing to pay and negotiated knowing that he was not trying to obtain the lowest price possible for AAR. Olds also allegedly provided Hollnagel and BCI with AAR’s confidential financial analysis of its proposed purchase of the two planes. As a result, Hollnagel and BCI were able to sell the two planes to AAR for $15.4 million. Olds undisclosed corrupt assistance enabled Hollnagel and BCI to earn a profit of nearly $4 million above what they had paid for the planes, one of which BCI had purchased about four months before the sale and the other about two weeks before the sale, the indictment alleges.
In late 2004, Hollnagel and Olds further agreed that in exchange for a bribe payment of approximately $180,000, Olds would use his position to ensure that AAR would sell to BCI three commercial planes that AAR had leased to Continental Airlines. Again, Olds allegedly concealed from AAR his corrupt relationship with Hollnagel and BCI.
The tax counts allege that in 2004 and 2005 Olds evaded his tax obligations by concealing the fraudulent income he received from BCI, and that he filed a false federal income tax return for 2005 that under-reported the total income he earned from a company he used to receive the BCI payments, as well as overstated the business’s deductions.
