New Jersey Money Laundering Attorney November 28, 2009
Posted by jefhenninger in Misc..Tags: money laundering
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Money Laundering is commonly charged on the Federal level but New Jersey has its own state money laundering offense that is starting to be used by prosecutors in drug and tax crimes. If you have been charged with any money laundering offense or if you think you may be a target of a money laundering investigation, call the team of tough, smart attorneys that will fight for you!
Money laundering is defined as the process whereby the origin of dishonest and/or illegally obtained money is concealed so that it appears to come from a legitimate source. On the Federal level, money laundering is prosecuted under 18 USC 1956 and 18 USC 1957. On the New Jersey State level, it is prosecuted under NJSA 2C:21-25. Regardless of whether it is prosecuted at the Federal or State level, our New Jersey money laundering defense lawyers will defend and protect you, your family and your reputation.
You can meet with our New Jersey money laundering attorneys in any one of our offices: Newark, Jersey City, New Brunswick, Woodbridge, East Brunswick, Red Bank, Freehold, Eatontown and Toms River. Call our lawyers today to discuss your money laundering case or investigation.
NJ woman wanted in theft from auto dealership found in Florida September 24, 2009
Posted by whitecollarcrimenews in News.Tags: money laundering
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Last November, workers at Lynnes Nissan in Bloomfield that were performing an internal audit discovered that money was missing from the dealership’s accounts payable department. An apparent theft had occurred in multiple stages from 2007 to 2008. Karen Sosa, an accounts payable clerk at the business left her job shortly after the audit.
The dealership notified the Essex County Prosecutor’s Economic Crimes Unit who sought to interview Sosa in June. However, she allegedly skipped town and was on the run. This Wednesday, members of the U.S. Marshals tracked her down to at an apartment in Broward County.
She is now facing charges of first-degree money laundering and second-degree theft by deception for the alleged theft of $545,000. I’d like to know more about the case. That money laundering charge has to be the harshest white collar crime in New Jersey. Thus, her attorney should focus on getting around that charge one way or the other.
Story is here.
PNC Bank teller and others charged with identity theft September 13, 2009
Posted by whitecollarcrimenews in News.Tags: money laundering, theft by deception
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Babatune Ibironke, a PNC bank teller, his wife, Eryn Brown, and John Caldwell Jr., an accomplice, were charged with several counts of identity theft, theft by deception and conspiracy to commit those crimes. The State alleges that Ibironke created two bogus bank accounts to steal $66,000 from a legitimate account. Caldwell was charged with conspiring with Ibironke to use a debit card to collect the money. Ibironke is also charged with money laundering and computer theft for accessing accounts while he worked at the bank. If that wasn’t bad enough, he is also charged with witness tampering for allegedly asking two witnesses not to identify him.
The second indictment charged Ibironke with attempted theft by deception for allegedly trying to collect federal income tax returns that were filed by eight other people. He is also alleged to have provided information to his wife, who also worked at the same PNC Bank branch which enabled her to open five other fraudulent accounts. They were both charged with conspiracy, attempted theft by deception and identity theft. Brown was also charged with computer theft.
Yet even a third indictment charged Ibironke with trying to apply for a passport using Caldwell’s name in Roselle. He was charged with two counts of false swearing, two counts of falsifying records and two counts of presenting a fraudulent driver’s license as a result. In addition, Ibironke and Caldwell were also charged with identity theft, conspiring to commit identity theft and presenting false identification.
Ibironke is really facing a gauntlet here with the three indictments. He also faces a huge risk by taking all three cases to trial. The money laundering charge is going to be the biggest problem. He needs an attorney that will wrap this up sooner rather than later.
Story is here.
Alleged pill selling Doctors face even more criminal charges August 17, 2009
Posted by whitecollarcrimenews in News.Tags: Fraud, money laundering
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Every now and then as an attorney, you get a client that is in it really, really deep. The Sharma’s are those clients for two attorneys. At 59 years old, they both face enough charges that could result in a de facto life sentence. This is why it is important for attorneys to examine all financial documents to check for any possible money laundering and the extent of it. Clients have a way of minimizing the situation and leaving out important details. While you don’t want to call your client a liar, you don’t want to just accept their word for it either.
HOUSTON—A federal grand jury has returned a superseding indictment adding 35 more counts to the previously returned 29-count indictment against Dr. Arun Sharma and his wife, Dr. Kiran Sharma, M.D., United States Attorney Tim Johnson announced today. Drs. Arun and Kiran Sharma, both 59, operated the Allergy, Asthma, Arthritis and Pain Centers located at on Cole Street in Webster, Texas, and another on Garth Road in Baytown, Texas.
In the original 29-count indictment, the Sharmas were accused of conspiracy to defraud Medicare/Medicaid and private health care providers of more than $31 million by falsely claiming to have administered facet joint injections and blocks to patients and routinely prescribing excessive amounts of hydrocodone, Soma and Xanax to patients that were not for a legitimate medical purpose in exchange for cash payments. The doctors were alleged to have stored large amounts of cash received from the sale of hydrocodone prescriptions at their home. Kiran Sharma allegedly transported large amounts of cash received from the sale of the hydrocodone prescriptions to two safe deposit boxes—one each at Bank of America and Prosperity Bank.
The superseding indictment was returned late Thursday, Aug. 13, 2009. It charges Drs. Arun and Kiran Sharma with three new counts of illegally distributing controlled substances for hydrocodone and methadone prescriptions written to specific patients, four new counts of health care fraud, nine counts of mail fraud, conspiring to launder illegal proceeds and 18 counts of laundering their illegal proceeds by hiding the drug cash in their safe deposit boxes, moving the fraud proceeds between several accounts they controlled and sending fraud proceeds back to India. It is alleged Kiran Sharma visited the two safe deposit boxes a total of 61 times and transported more than $816,000 in cash to the boxes.
The new charges include accusations against the Sharmas of prescribing more than 8,000 tablets of hydrocodone to one patient over an eight-month period. In two other counts, they are charged with prescribing 540 tablets of hydrocodone to one patient on May 23, 2005, and another 540 tablets to the same patient on Dec. 5, 2005.
Additionally, the forfeiture notice provision of the original indictment has been expanded to include the following assets which the government intends to forfeit as proceeds/property derived from their alleged illegal activity: 12 pieces of real estate including the defendants’ Kemah residence and both of their clinics, 32 investment accounts, 23 bank accounts and the $1.5 million in cash seized from the defendants’ home and safe deposit boxes for a total of $31 million.
The court has ordered the Sharmas, who are free on bond, to appear in federal court on Aug. 21, 2009, for arraignment on the new charges.
Upon conviction, health care fraud carries a maximum penalty of 10 years in a federal prison and a $250,000 fine. The fraud conspiracy charge and the mail fraud counts each carry a maximum penalty of 20 years in a federal prison and a $250,000 fine. The drug conspiracy and the 10 Schedule III drug distribution counts carry a penalty of five years imprisonment and a $250,000 fine. The three new Schedule II drug distribution counts carry a penalty of 20 years imprisonment and a $1 million fine. The money laundering conspiracy and the individual money laundering counts carry a maximum penalty from 10 to 20 years and a fine of $250,000 to $500,000.
The criminal charges are the result of a joint investigation being conducted by agents of the FBI, Drug Enforcement Administration, the Department of Health and Human Services-Office of Inspector General and the Medicare Fraud Control Unit of the Texas Attorney General’s Office in conjunction with the Webster, League City and Baytown Police Departments. The case will be prosecuted by Assistant United States Attorney Al Balboni.
Former Bordentown, NJ car dealership owner arrested on bank fraud charges August 10, 2009
Posted by whitecollarcrimenews in News.Tags: bank fraud, money laundering, wire fraud
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I actually had a case like this, just on a smaller scale; but still involving a ton of money. My client ran a small dealership and became in debt to a several customers. My client called me at the first sign of trouble and as a result, law enforcement never called. We just worked everything out. In this case, it sounds like everything just went out of control.
This is one of those cases where you have to look into her personal finances and determine if he is just a bad businessman who got in over his head or a greedy scammer who thought he could just get away with it. With a nice house on the water, he certainly wasn’t living a frugal lifestyle on the surface.
TRENTON – The former operator of a Bordentown car dealership was arrested today on a federal Indictment in connection with his check-kiting scheme that resulted in losses of more than $7 million to banks, Acting U.S. Attorney Ralph J. Marra, Jr., announced.
Denis Kelliher, 39, who resides in both Toms River and Monroe Township, was arrested at his home in Toms River by Special Agents with the FBI and IRS Criminal Investigation early this morning. Kelliher is scheduled to make his first appearance in federal court and be arraigned on the 11-count Indictment today at 1:00 p.m., before U.S. District Court Chief Judge Garrett E. Brown, Jr., in the federal courthouse in Trenton.
On August 6, 2009, a federal grand jury returned the Indictment which charges Kelliher with two counts of bank fraud, one count of wire fraud, and eight counts of money laundering. ccording to the Indictment, Kelliher was the principal operator of Cartec Motors, LLC, (“Cartec”) located on Route 206 in Bordentown, which was in the business of buying and selling both new and used motor vehicles, including recreational vehicles.
The Indictment describes a scheme in which Kelliher attempted to create artificial balances in checking accounts that he controlled, including Cartec accounts at KeyBank, Commerce Bank (now known as TD Bank), 1 his personal account at 1st Constitution, by transferring monies between these accounts.
Kelliher allegedly wrote checks on accounts that he controlled, and deposited these checks into other accounts that he controlled, while knowing there were insufficient funds in the accounts against which the checks were drawn – a scheme commonly known as “check kiting.” The Indictment charges that as a result of the defendant’s check kiting activity, Cartec’s account at KeyBank was overdrawn by more than $6.9 million, and that its account at Commerce was overdrawn by more than $200,000.
In addition, the wire fraud count charges Kelliher in connection with a separate scheme in which he approached a prior Cartec customer for a $410,000 loan purportedly to be used to purchase recreational vehicles for re-sale. The Indictment alleges that Kelliher provided the former customer, identified only as “Victim-1” in the Indictment, with a personal financial statement which claimed that as of Dec. 31, 2008, Kelliher’s net worth exceeded $6.2 million. The Indictment alleges this financial statement was false and that it failed to disclose that, in September 2008, KeyBank obtained a judgment for approximately $27 million against Cartec and Kelliher individually.
Counts One and Two of the Indictment, charging Kelliher with bank fraud, each carry a maximum penalty of 30 years in prison and a fine of $1 million. Count Three, which
st Constitution Bank and Roma Bank, and charges wire fraud, carries a maximum penalty of 20 years in prison and a fine of $250,000 or twice the aggregate loss to the victims or gain to the defendant. Counts Four through Eleven, charging money laundering, each carry a maximum penalty of 10 years in prison and a fine of $250,000 or twice the aggregate loss to the victims or gain to the defendants.
44 arrested in massive Federal corruption sweep July 23, 2009
Posted by whitecollarcrimenews in News.Tags: Bribery, Corruption, Crime, Fraud, Law, money laundering, New Jersey, News, Politics
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Today is a huge day for politics, New Jersey and criminal justice. 44 people have been arrested by Federal Authorities on charges of political corruption and money laundering. This does not seem to be a small time case either. All stories indicate that this is a high-volume case that may likely expand beyond the 44 people that have been charged. In other words, it could be one of the most serious public corruption cases in New Jersey’s history.
The case started as a bank fraud case against a member of the Syrian Jewish community in Deal, N.J. That man became a federal informant and posed as a crooked real estate developer offering cash bribes to obtain government approvals and in the end, it apparently ensnared a lot of people.
Just some of the people arrested include:
– Peter Cammarano III, the newly elected mayor of Hoboken and an attorney, charged with
accepting $25,000 in cash bribes, including $10,000 last Thursday, from an undercover
cooperating witness.
– L. Harvey Smith, a New Jersey Assemblyman and recent mayoral candidate in Jersey City, charged along with an aide of taking $15,000 in bribes to help get approvals from high-level state agency officials for building projects.
– Daniel Van Pelt, a New Jersey Assemblyman, charged with accepting a $10,000 bribe.
– Dennis Elwell, mayor of Secaucus, charged with taking a $10,000 cash bribe.
– Anthony Suarez, mayor of Ridgefield and an attorney, charged with agreeing to accept a $10,000 corrupt cash payment for his legal defense fund.
– Louis Manzo, the recent unsuccessful challenger in the Jersey City mayoral election and former state Assemblyman, and his brother and political advisor Robert Manzo, both with taking $27,500 in corrupt cash payments for use in Louis Manzo’s campaign.
– Leona Beldini, the Jersey City deputy mayor and a campaign treasurer, charged with taking $20,000 in conduit campaign contributions and other self-dealing in her official capacity.
– Eliahu Ben Haim, of Long Branch, N.J., the principal rabbi of a synagogue in Deal, N.J., charged with money laundering of proceeds derived from criminal activity.
– Saul Kassin, of Brooklyn, N.Y., the chief rabbi of a synagogue in Brooklyn, New York, charged with money laundering of proceeds derived from criminal activity.
– Edmund Nahum, of Deal, N.J., the principal rabbi of a synagogue in Deal, charged with money laundering of proceeds derived from criminal activity.
While not yet arrested, Federal authorities also searched the office and home of Joseph Doria who is the commissioner of the Department of Community Affairs. Doria previously served a the Democratic mayor of Bayonne for nine years and represented Hudson County in the State Senate.
This case is going to create a lot of work for many lawyers in New Jersey. These defendants have to make sure that these lawyers 1) know what they are doing, 2) have a plan and 3) have the time and ability to make it happen. Of course, the clients just need one thing: money as it is going to take a lot of it to dig them out from the whole that they are in.
A lawyer really needs to put life on hold (including weekends) at the moment and dig into this case right away. You need to determine if your client has any real exposure here. Then, you need to determine if any of these 44 people can flip on your guy. If so, its a race to see who can be first in the door for the best deal. If any of them have a lawyer that doesn’t know how to break down a case quickly but completely, they will either wait and thus get a bad deal or quickly sell out for a bad deal.
I suggest that as many of the lawyers on this case get together so that everyone is on the same page. I want to know who is saying what about my client. I also would want to look into entrapment issues and wiretaps and other recordings.
Should be very interesting to watch this play out.
Numerous stories from the Star Ledger are here.
Indictment for $1.7 million in securities fraud illustrates an important first step for attorneys July 22, 2009
Posted by whitecollarcrimenews in News.Tags: Attorney, Crime, Fraud, Law, Lawyer, misapplication of entrusted property, misconduct by a corporate official, money laundering, New Jersey, News, securities fraud, theft by deception
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I often say that, in the context of white collar crime, the difference between a criminal case and a civil case is thin, usually blurry line. One of the key factors that pushes a case over to the criminal side of the line is personal use of money. In other words, if the money at issue was used solely for business purposes, it will likely be a civil case. Likewise, as soon as you use the same money to enrich yourself, you will be looking at criminal charges.
Thus, the first thing I do in any case that could turn into a white collar crime case is to get my client’s financial records to assess their criminal exposure. The attorney’s actions at the first sign of trouble could impact the entire case. If this is a civil case but the State thinks otherwise, you may have to play this card now. If there is some serious criminal exposure, trying to get a favorable resolution early on may we worth considering.
A good example of a white collar crime case where the defendant’s personal expenses will be at the heart of the State’s case is found in the press release below:
TRENTON – Attorney General Anne Milgram announced that a Bergen County man was charged today with defrauding hundreds of investors of more than $1.7 million by selling unregistered shares of stock in his startup horseshoe manufacturing company, which he claimed already had a prince from Dubai as a client.
The man allegedly stole more than $350,000 in investor funds to pay for personal expenses. Although he also spent funds in an effort to launch the company, the venture failed.
According to Director Deborah L. Gramiccioni, the Division of Criminal Justice filed a criminal complaint today in Superior Court in Bergen County charging Samuel M. Serritella, 64, of Garfield, with the crimes of 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. Also today, 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.
“This defendant sold $1.7 million in fraudulent and unregistered securities to trusting investors,” said Attorney General Milgram. “He repaid their trust by stealing hundreds of thousands of dollars of their money and leaving them with worthless shares in a failed company.”
Serritella was president, chief financial officer and chairman of International Surfacing Inc., which was based at 5 Erie Street in Garfield. It is charged that between February 2004 and May 2006, Serritella fraudulently obtained in excess of $1.7 million from more than 300 investors, most of whom were New Jersey residents, 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.
Serritella 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.
Serritella allegedly deposited the investors’ funds into several bank accounts that he controlled. He allegedly misappropriated funds totaling approximately $354,720 for personal expenses. Seritella 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 three friends totaling $84,000.
Serittella used some funds for startup costs for the company, such as rent for a building, salaries, and payments to a company contracted to assist in manufacturing horseshoes.
“The Division of Criminal Justice is focusing on more complex white collar crime cases, including securities fraud cases such as this one,” said Director Gramiccioni. “In prosecuting this case, we are working closely with the Bureau of Securities, which thoroughly investigated the alleged fraud and thefts committed by Serritella.”
“Investors need to protect themselves by remembering that an offer which seems too good to be true is often precisely that – untrue. Investment fraud is on the rise in these difficult economic times and investments that promise ‘guaranteed results’ or offer unusually high profits should be carefully scrutinized before any investment is made,” Bureau Chief Minor said.
The Bureau of Securities investigation was conducted by Acting Chief of Investigations Rudolph Bassman. Deputy Attorney General Victoria Manning represented the Bureau in its investigation.
Serritella has been ordered to appear before Superior Court Judge Harry G. Carroll in Bergen County on Wednesday, July 29 at 10 a.m.
Ohio attorney charged in 40 count indictment May 26, 2009
Posted by whitecollarcrimenews in News.Tags: Attorney, Bribery, Crime, Fraud, Law, Lawyer, money laundering, News
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Columbus Attorney Mark Shelnutt faces 31 counts of money laundering, three counts of false statements, one count of attempted bribery, and one count of witness tampering. All of this stems from his representation of convicted drug dealer Torrance Hill.
According to U.S. Attorney’s Office, Shelnutt was allegedly aiding and abetting Hill’s drug organization, as well as laundering money for him. Specifically, the indictment cites to several transactions that allegedly involve drug money to the CB&T account of Shelnutt’s wife, as well as cash payments for a mortgage on a house in Florida.
This is tough. There is a good chance that Shelnutt’s career is over and that the defense of this case is going to be very tough on him. I know little about the facts but it at least sounds like this is a defensible case. I see nothing that indicates incredibly eggregious conduct. When it comes to white collar crime, the line between normal conduct and criminal conduct is often very, very fine.
Representing a fellow criminal defense attorney would be interesting. One one hand, it would be nice to have a client that can help you. On the other hand, you don’t want to have your client run the whole case. Finding that balance could be tough.
Story is here.
Ex-congressman faces long fight in fraud charges March 3, 2009
Posted by whitecollarcrimenews in News.Tags: Crime, Fraud, Law, money laundering, News, Scams
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Wes Cooley, a former Congressman from Oregon has been charged with filing false tax returns and several counts of money laundering. Authorities allege that Cooley and two other men who were associated with the former auction site, bidbay.com used the Internet to get investors to buy unregistered stock. Cooley is also alleged to have lied to investors when he claimed that eBay would buy the company for $20 per share.
The unregistered stock issue is usually a red flag here and it will likely be a major issue if this case goes to trial. An example of whay may have happened here is that Cooley and/or others may have registered the stocks with Form S-8, which is for securities issued by a company to employees or certain types of consultants. This is a short-form document that is not as detailed as registration forms required for a public offering of stock. As a result, a public sale of the stock can done without informing the public about the company’s true condition or status.
While not the end of the world, I think Cooley’s biggest problem will come from the money laundering charges. When it comes to white collar crimes like this, the case is usually very circumstantial. For example, no one witnessed a person stealing money out of a safe. The Government will take various business transactions and other activities and argue that everything put together shows that the activity is illegal.
The claim that eBay would buy the company for $20 could have been a misunderstanding or could have come from someone else. After all, everyone can make a mistake or be a bad businessman. Getting people to buy stock; that’s what you do as an officer of the company. However, if all of your activities are legit, why hide the source of the money? That is the problem here.
However, like many of the Ponzi scheme defendants I have blogged about, Cooley is old. At 76 years old, where is he really going here? His best defense may be to flip and secure a four year sentence to he can get out in his 80′s. However, this could be tough due to the was the Federal sentencing schemes work. But, if it doesn’t happen, there is nothing else to do but fight all the way.
Story is here.
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.
