2d Circuit Majority and Concurring Opinions of Fraud and Sentencing

In United States v. Corsey , ___ F.3d ___, 2013 U.S. App. LEXIS 14897 (2d Cir. 2013), here free version , [ enhanced version available to lexis.com subscribers ], a per curiam decision, the Second Circuit opens its opinion: This appeal principally raises two issues: (1) whether the misrepresentations...

Organized Crime Insurance Fraud Ring Busted by California Department of Insurance Investigators

A joint investigation with the Contra Costa District Attorney’s office led Department of Insurance investigators to the arrest of five individuals for allegedly running an insurance fraud ring throughout northern California and northern Nevada. The insurers’ losses are estimated between ...

Federal Court in Arizona Permanently Bars Maricopa County from Arresting and Charging Immigrants with "Conspiracy to Transport Themselves"

"On September 27, 2013, a federal court in Arizona issued a permanent injunction stating "Defendants Maricopa County Sheriff Joseph M. Arpaio and Maricopa County Attorney William G. Montgomery, and their agents, employees, successors in office, and all other persons who are in active concert...

Judge: Maricopa County Can't Prosecute Migrants For Smuggling Themselves

"A federal district judge has ruled that one of Maricopa County's most controversial enforcement policies impacting undocumented immigrants must end. On Friday, Judge Robert Broomfield ruled the county of Sheriff Joe Arpaio must immediately stop its policy of prosecuting unauthorized migrants...

$1 Billion High-Yield Investment Fraud Leads Three Investment Advisers to Prison

Three former investment advisers – William J. Ferry, a former stock broker and investment adviser; Dennis J. Clinton, a former real estate investment manager; and Paul R. Martin, a former senior vice president and managing director of Bankers Trust – have been sentenced to prison for their...

How a Brokerage Firm’s Ex-CFO Stole $1 Million

The former chief financial officer of the Manhattan-based brokerage firm Needham & Co. has admitted that he stole $1 million from his former employer through an elaborate false invoicing scheme. Glen W. Albanese pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court...

Madoff Brother, Convicted and Jailed, Now is Disbarred

Peter Madoff – Bernard Madoff’s brother – has been disbarred. Just about five years to the day after Bernard Madoff’s Ponzi scheme came to light, just about one year to the day after Peter Madoff was sentenced to consecutive five year terms of imprisonment for each of his admitted...

Quoting E-Mails, Government Charges 3 Former Rabobank Traders with Manipulating Yen Libor

Two former Japanese Yen derivatives traders at Rabobank and the trader responsible for setting Rabobank’s Yen London InterBank Offered Rate (LIBOR) have been charged as part of the Justice Department’s ongoing criminal investigation into the alleged manipulation of LIBOR. And, once again...

$28 Million of Silk Road’s Bitcoins Are Forfeited, US Attorney Says

Approximately 29,655 Bitcoins, worth approximately $28 million, that had been seized from the Silk Road server have been forfeited to the U.S. government in what federal prosecutors called the largest ever forfeiture of Bitcoins. Preet Bharara, the U.S. Attorney for the Southern District of New York...

Credit Union’s Ex-CEO Charged with Conspiracy to Commit Bank Fraud

The former chief executive officer of Taupa Lithuanian Credit Union has been charged with engaging in a conspiracy that defrauded the credit union out of $15 million, some of which he used to build a home, obtain a luxury suite at Cleveland Browns games, and buy multiple vehicles and firearms. The...

The Intersection of Conspiracy and Tax Obstruction

In United States v. Floyd , ___ F.3d ___, 2014 U.S. App. LEXIS 253 (1st Cir. 2014), here , the First Circuit panel affirmed the defendants' convictions and sentencings arising from their tax evading payroll tax scheme and warehouse banking scheme [ enhanced version available to lexis.com subscribers...

‘SpyEye’ Creator Pleads Guilty to Conspiracy to Commit Wire and Bank Fraud

Aleksandr Andreevich Panin, a Russian national also known as “Gribodemon” and “Harderman,” has pleaded guilty to conspiracy to commit wire and bank fraud for his role as the primary developer and distributor of the malicious software known as “SpyEye,” which, according...

Bennington School’s Former President Sentenced to 18 Months in Federal Prison for Tax and Health Care Fraud

Matthew Merritt Jr., 82, of West Stockbridge, Massachusetts, has been sentenced to 18 months in federal prison after his guilty plea to charges that he engaged in a scheme to defraud a health care program and commit tax fraud. U.S. District Judge William K. Sessions, III, sitting in Burlington, also...

Bridgestone to Plead Guilty to Price Fixing on Automobile Parts and Will Pay $425 Million Criminal Fine

Bridgestone Corp., a Tokyo, Japan-based company, has agreed to plead guilty and to pay a $425 million criminal fine for its role in a conspiracy to fix prices of automotive anti-vibration rubber parts installed in cars sold in the United States and elsewhere. According to a one-count felony charge...

Stamford Attorney Admits Role in $7 Million Mortgage Fraud Scheme

Christopher Brecciano, an attorney in Stamford, Connecticut, has pleaded guilty in Bridgeport federal court to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of Connecticut properties. According to court documents and statements made in...

Family that Commits Identity Theft Together Goes to Prison Together

Mary Young and her husband, Christian Young, and her son, Octavious Reeves, have been sentenced to prison for their involvement in a stolen identity refund fraud scheme. Mary Young was sentenced to serve 87 months in prison, Christian Young was sentenced to serve 70 months in prison, and Octavious...

Party Relationships: Contract Form Can Dictate

Virginia Construction Law News and Notes When parties go into relationships they often think the relationship is one thing; but legally the relationship may be another. Judge Hughes' recent decision in the case of PEAC Consulting, LLC v. The Ridley Group & Associates, et al., decided September...

CA9 Rejects Matter of Richardson: USA v. Garcia-Santana (Conspiracy Requires Overt Act)

"... [ Matter of] Richardson [25 I&N Dec. 226 (BIA 2010) ] interpreted “conspiracy” under § 1101(a)(43)(U) as referring to the common-law definition, and thus as omitting any overt-act requirement. ... We cannot accept this interpretation. ... We conclude ... that the BIA’s...

Strange Behavior Even by Tax Protestor / Defier Standards - Mens Rea for the Crime and Competence for Trial

In United States v. McQuarry , 2014 U.S. Dist. LEXIS 9529 (D MN 2014), here , the defendant "was indicted for conspiracy to defraud the United States in violation of 18 U.S.C. § 286 [ enhanced version available to lexis.com subscribers ] and for making false, fictitious, or fraudulent claims...

‘Real Housewives of New Jersey’ Stars Plead Guilty to Conspiracy, Bankruptcy Fraud and Tax Crimes

Two of the stars of the Bravo TV show “The Real Housewives of New Jersey” have admitted committing a string of crimes as part of a long-running financial fraud conspiracy. Teresa Giudice, 41, and Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., pleaded guilty before U.S. District...

4 from Dewey & LeBoeuf Indicted on Fraud and Grand Larceny Charges

Steven Davis, Stephen DiCarmine, and Joel Sanders – the former chairman, executive director, and chief financial officer at the now-bankrupt law firm Dewey & LeBoeuf LLP – have been indicted in Manhattan. Also indicted was Zachary Warren, a former client relations manager at the firm...

Insurance Fraud Scheme Charged as Conspiracy: Cop Guilty Of Extortion In Auto Fraud

Insurance fraud is not a charge prosecutors like. Although it is an easy crime to prove since all it requires is a single document used with an intent to defraud an insurer, prosecutors prefer to deal with more complex issues and criminal charges. An example of how simple insurance fraud charges were...

Accountant Sentenced For Tax Crimes; Conduct Included FBAR Violations

The United States Attorney's office has announced the sentencing of "Dennis Duban, a Los Angeles-based accountant and tax return preparer." The press release is here . He was sentenced to 24 months in prison pursuant to his plea for one count of conspiracy to defraud (Klein conspiracy)...

Fraud Mastermind Uses Straw Buyer To Pull Off $2.1 Million Mortgage Theft

A six-count indictment has been filed in federal court charging Derryl L. Tanner and Julie A. Becker with engaging in a $2.1 million mortgage-fraud scheme. Tanner and Becker are accused of conspiring in 2006 to defraud several lending institutions related to transactions involving a home at 1517 Fitzroy...

CA9 on Conspiracy; Nevada; Burglary; Aggravated Felony: U.S. v. Garcia-Santana

"The government appeals the dismissal of Xochitl Garcia-Santana’s indictment for unlawful reentry in violation of 8 U.S.C. § 1326. The district court determined that Garcia’s prior removal order was constitutionally inadequate because Garcia was denied her right to seek discretionary...