Los Angeles Criminal Defense Lawyer Blog

San Bernardino County authorities allege a former Los Angeles police detective is involved in a theft and securities fraud scheme that involves millions of dollars and many fellow officers, The Los Angeles Times reports.

While this case will get a lot of media attention because the defendant is a former cop, it should be noted that many white collar crimes in California are difficult to prove in court. While they may be easy to prove in the public arena, Los Angeles white collar attorneys know the extensive research needed to defend someone from these types of serious crimes.

The Times article states the detective is charged with 10 felonies, including the sale of false investment securities, the sale of securities without a license and grand theft.
She is accused of violating state laws that establish the terms under which people can sell securities and real estate.

Prosecutors allege she illegally assured investors she would sell a piece of her own property to reimburse them if deals went sour. She also allegedly lied to investors about investment properties being secured by official deeds or trusts. Investors were promised a high rate of return, but they received nothing.

The detective said, according to The Times, she was duped by a 70-year-old bishop of a South Los Angeles church, who was arrested on an unrelated fraud charge. She said the bishop persuaded her to give him the cash she raised to help him catch up on payments on his church and other properties.

Los Angeles theft cases involving real estate can be especially tricky because the entire premise of investments is that they can go bad. With the country trying to bounce back from a recession and people losing money left and right, it's not uncommon for investors who are left sour after a transaction to claim the person making the investments is a crook.

Also in white collar crimes, judges can order the defendant to pay back restitution if the state proves the crime. That's on top of possible prison time, probation and other conditions. These are serious charges and they should be handled by attorneys that have decades of experience handling Los Angeles white collar crimes.

Continue reading "Ex-LAPD Detective Charged in Alleged Real Estate Scam" »

Two doctors are facing criminal charges in Los Angeles after authorities accuse them of a $5 million fraud scam involving mentally ill homeless patients, the Washington Post reported.

The Medicare and Medi-Cal fraud case is the latest in a long string of cases against doctors, home-health care businesses, clinics and others in the medical profession. These cases are frequently complex and can be devastating to the reputation of legitimate doctors and health care workers. Consulting an attorney at the earliest stage of a case -- even before charges are filed, is frequently your best course of action. The fact that the charges were filed as misdemeanors by city prosecutors likely means that state and federal authorities decline to pursue more serious charges. Whether the charges lack merit, we cannot say. But they still carry the possibility of substantial jail time. And the loss of professional reputation is often irreplaceable.

The doctors, ages 58 and 72, were charged along with five others of misdemeanor conspiracy, fraud and taking illegal kickbacks. Each faces up to 7 years in prison if convicted.

City prosecutors allege homeless people were recruited from throughout Los Angeles County. Each patient was given $100 to permit ultrasounds to be conducted and to allow blood to be drawn. The clinic then allegedly charged medical programs up to $1,000 per doctor for between 30 and 50 patients a day from December 2009 until June.

It is the latest patient-recruiting scam to be alleged in Los Angeles. Earlier this month, federal prosecutors charged more than 70 defendants with a scam they say defrauded Medicare of $163 million.

Earlier this year, a doctor was sentenced to 25 years in prison after being convicted of paying homeless people to fill prescriptions in exchange for cash.

Continue reading "Health care fraud allegations best handled by experienced White Collar criminal defense lawyer in Los Angeles" »

You heard it from our Los Angeles criminal defense lawyers first.

Last month we reported on the white collar theft charges facing city officials in Bell. And we said the real question was how many more Bells were out there. This month, the Los Angeles Times reports that three current and former Irwindale city officials have been charged with five felony counts of misappropriating city funds.

A councilman, the former city manager and the finance director are charged with taking lavish trips to New York City to discuss housing for the poor. The city spent $87 million in affordable housing funds over eight years, but built just 42 homes. A councilwoman also faces one criminal charge.

In the wake of the Bell incident -- in which city leaders were charged with paying themselves excessive salaries -- prosecutors will no doubt be quick to charge other public officials. While complex in nature, many of the investigations will not withstand an experienced defense.

In this case, records dating back to 2003, allege less than 8 hours of meetings were scheduled during a six-night-stay at the Ritz-Carlton. While this might be bad business. And it is no doubt bad politics. It is unlikely that it is a crime.

Unfortunately, defendants charged with embezzlement in Los Angeles are often unfamiliar with the legal system. As shoddy as many such cases are when brought by prosecutors, they count on defendants making statements against other alleged co-conspirators or just generally sticking their foot in their mouths. Your chances of matching wits with professional investigators is virtually zero -- although those odds are still better than your chances of talking yourself out of trouble once you have been brought in for questioning or arrested.

You have the right to remain silent: Use it.

Continue reading "White collar crimes, embezzlement charges in Los Angeles not unlike Irwindale case" »

Dozens have been arrested in what the federal government is calling the largest Medicare fraud scam in U.S. history, the Associated Press reports.

Seventy-three people have been arrested in New York City, Los Angeles, New Mexico and Ohio and charged with cheating the federal health care program out of $163 million.

The Daily News reports that 10 of the defendants were charged with fraud in Los Angeles as part of a scam to steal $8 million from the taxpayer-funded Medicare program.

Federal authorities continue to crackdown on health care fraud, which they have labeled the nation's most lucrative federal crime. "Health care fraud that targets the Medicare program makes victims of all Americans," said Steven Martinez, assistant director in charge of the FBI's Los Angeles office. "The identity theft of the elderly and the disabled that facilitates many health care schemes is particularly depraved."

The suspects are accused of using the stolen identities of doctors and patients to bill Medicare for services never rendered. Bank accounts were also opened so that Medicare could deposit money.

These cases are incredibly complex and being wrongly accused can have a devastating impact on the reputation of a doctor or legitimate health care facility. While federal authorities have put more emphasis on such cases, they have not always dedicated more manpower and resources. A report by 60 Minutes found that health care fraud was more lucrative than the drug trade in South Florida and yet the federal government had dedicated fewer than 5 investigators to handle the entire southern region of the state.

Anyone facing such charges should consult a Los Angeles federal criminal defense lawyer immediately. Only a defense firm with experience handling financial fraud crimes in federal court should defend clients facing these types of complex charges.

Continue reading "10 charged with fraud in Los Angeles as part of largest Medicare fraud case in U.S. history" »

The City of Bell is certainly up in arms over the revelation that its administrative staff were extremely well compensated. As the New York Times reported, the mayor and former city manager were among eight current and former city officials of the working class town south of Los Angeles, who were arrested this week amid allegations that they were drawing salaries of as much as $800,000.

Those charged with white collar crimes or embezzlement in Los Angeles or the surrounding area need immediate access to an aggressive and experienced Los Angeles criminal defense attorney who can protect their rights. Frankly, as despicable as many find the situation, we have yet to see any evidence of illegality. And we suspect that is precisely what has made it so newsworthy. It is not against the law to pay yourself an insane salary if the proper safeguards were in place, such as approval by an elected council. Throwing people out of office and electing new officials is one thing. Throwing them in jail because no one was minding the store is quite another.

L.A. District Attorney Steve Cooley is no dummy. Being a candidate for Attorney General, he was quick to jump aboard the media train with the announcement of felony charges. "This is corruption on steroids," he said. And the Los Angeles Times is busy tooting its own horn about exposing the alleged corruption. The city's police chief resigned last month, having been paid a salary of $457,000 a year.

Yet these salaries happened because of a lack of attention. Likely the result of hefty raises approved over a period of years by a council that was permitted to act with autonomy and with little or no oversight from the media. The Los Angeles Times last cut hundreds of staffers from its newsroom in recent years. Was there a Bell reporter among them?

The real question is how many more Bells are out there?

Continue reading "White collar criminal charges against Bell City officials little more than posturing" »

The head of a Los Angeles staffing agency is facing federal charges accusing him of operating one of the largest human-trafficking rings in U.S. history, the Associated Press reported.

White collar criminal charges in Los Angeles always require an experienced criminal defense lawyer. Federal authorities are going after business leaders in an increasing number of cases. Frequently, they are not responsible for wrongdoing within a company and should not be charged. But reputations are often destroyed, regardless of guilt or innocence, without an experienced and aggressive defense.

In this case, the CEO of Global Horizons Manpower, Inc., surrendered to federal authorities in Honolulu after the Federal Bureau of Investigations could not locate and arrest him at his Southern California home. He has pleaded not guilty.

Three other employees and two Thailand-based recruiters were also charged in the indictment. The government claims the company exploited 400 Thailand workers by forcing them to work on U.S. farms.

He appeared in court in chains and faces up to 70 years in prison if found guilty of the charges. An Israeli national, he was ordered deported last year for unknown reasons but is appealing the deportation order. Federal authorities also accuse the defendant's public relations agency of providing misleading information about his location, including stories that he was in Los Angles, Texas and Albuquerque.

The agency issued a statement criticizing the FBI for breaking windows and doors in the defendant's Los Angeles home while he was away on business in Texas.

Continue reading "White collar crime in Los Angeles: Staffing agency facing federal charges over human trafficking allegations" »

Three-and-a-half years after the death of Anna Nicole Smith, two doctors are facing trial in Los Angeles Superior Court on charges of conspiracy to furnish drugs to an addict, according to the Beverly Hills Courier.

It is particularly critical for medical professionals facing California drug charges to hire a Los Angeles criminal defense lawyer experienced in handling white-collar crime and other criminal allegations against working professionals. The consequences in such cases go far beyond jail time, and frequently include professional and personal liability, the loss of professional licensing and the inability to continue to work as a doctor or other professional.

In this case, as in the case of Michael Jackson, the alleged victim is no longer alive to testify or to question and authorities will rely heavily upon medical records and other paperwork. The six-man, six-woman jury has been sworn in after the questioning of about 120 prospective jurors in Los Angeles Superior Court. The charges accuse Smith's former companion, Howard K. Stern, and two doctors, of providing controlled substances to an addict from June 2004 until Smith's death on Feb. 8, 2007. The 39-year-old actress died of a prescription drug overdose in a Florida hotel room.

Stern, 41, is charged with 11 felonies, including prescribing, administering or dispensing a controlled substance to an addict, obtaining a prescription for opiates by deceit, fraud or misrepresentation and conspiracy to commit a crime.

The doctors are each charged with six felony counts, including unlawfully prescribing a controlled substance, prescribing, administering or dispensing a controlled substance to an addict and conspiracy to commit a crime.

Continue reading "Cases of Anna Nicole Smith & Michael Jackson are high-profile examples of Los Angeles doctors facing drug charges " »

Los Angeles white collar crime attorneys will tell you, you do not have to use violent force to commit a crime. In fact, some of the most notorious criminals in history never physically hurt anyone--they got someone else to do it for them. There are a host of non-violent crimes that get people thrown in prison literally every day. These are called white collar crimes.

White collar crimes in California include (but are not limited to): bribery, embezzlement, racketeering, fraud, perjury, identity theft and computer crimes. All of which are possible without throwing punches, pulling out a knife or waving a gun around. They are all also felony criminal offenses that can land you in state prison for a long time. Supermarket mogul George Torres is finding this out the hard way. Torres is currently being tried for hiring illegal workers, bribing a public official, tax evasion and arranging to have several people killed.

After weeks of Torres's defense team painting a portrait of a hard-working business man who became the target of an overzealous Los Angeles Police Department investigator, the jury is currently trying to decide if Torres is, in fact, a criminal, or a legitimate businessman who somehow surrounded himself with criminals.

The prosecution's two key witnesses are long-time associates of Torres. Derrick Smith is currently serving a lengthy prison sentence for distributing cocaine and testified to being present when Torres talked about having someone killed. Raul Del Real is a convicted drug trafficker who admitted to importing two tons of cocaine and marijuana into the United States and who testified that Torres twice asked him to murder someone. Defense attorneys for both witnesses have argued that each man was promised reduced prison sentences, cash payments and various favors in exchange for their testimony against Torres.

While George Torres may, himself, have never lifted a gun to anyone's head, he may have asked others to do it for him. Torres's racketeering offenses stretch all the way back to 1985. Whether you are being charged with a violent crime or a white collar crime, you need a strong criminal defense attorney at your side.

Call the attorneys at Rodriguez, Lewis & Kahn today to fight for you.

Simply put, embezzlement or employee theft is stealing from your employer. Embezzlement is considered a white collar crime. It's the type of crime that has to involve someone with inside knowledge of someone's finances, because it usually involves moving money around in different accounts which need passwords and so forth. A crime that can accompany embezzlement is identity theft.

Few people, regardless of the amount of money you make, are immune to embezzlement. Even the wealthy can have problems with family members when it comes to embezzlement. The half brother of comedian Dane Cook has pleaded not guilty to embezzling millions from the comedian and was ordered held on $3 million bail. Darryl McCauley was arraigned Wednesday at Woburn District Court on charges including forgery and larceny. Prosecutors alleged that McCauley, 43, stole the money from Cook while being paid $12,500 a month to act as business manager for Great Dane Enterprises, Inc. Prosecutors accused McCauley of transferring funds from Cook's business accounts to his personal accounts between July 2007 and December 2008. In one instance, McCauley forged a $3 million check written from Cook's account to himself, investigators said.

By definition, embezzlement is the "illegal transfer of money or property for personal use." The significant difference between embezzlement (employee theft) and other kinds of theft is that embezzled property is legally possessed or accessed by the person doing the embezzling; usually as part of the job responsibilities.

America's economy is in a state of flux, and many investigations have begun into the seemingly underhanded financial deals that have gone on, particularly in the mortgage industry. While the media has been paying attention to Wall Street, Los Angeles criminal attorneys know that smaller embezzlement infractions have happened in smaller towns as well.

• In Connecticut, a wife and husband were charged with conspiring to embezzle about $250,000 from Northeast Mortgage Corp. on Main Street South, police said.


• Also in Connecticut, a former prosecutor received a 22-month prison sentence for using his position to embezzle $28,000 from his own union and to steal more than $55,000 intended for charities and crime victims.


• In Maine, a woman was sentenced to 36 months in federal prison after pleading guilty to one count of bank fraud in connection with a scheme to embezzle more than $300,000 from her employer, Multinational Resources Inc.


• In California, an attorney, who is now ineligible to practice law, is being prosecuted in Placer County for allegedly embezzling money from eight people between 2003 and 2007.

• In most cases, first offenses involving less than $400 are punishable by a small fine, community service, restitution and 3 years of informal probation.


• A second offense is a much more serious matter. It can be charged as Felony Theft (also called petty theft with a prior) and is punishable by a year in county jail or even 16 months to 3 years in state prison.


• When a person steals goods worth over $400 or money exceeding $400, it is a serious Grand Theft offense and can be charged as either a misdemeanor or a felony. With Grand Theft, you could be facing:
  
  
  
  • At least 16 months in state prison.
  
  
  • Probation or parole
  
  
  • Restitution (paying back victims for their loss)
  
  
  • Court-ordered counseling
  
  
  • Fines
    
  
  

Leland Wong, once known as a power broker in City Hall, is under investigation for bribery and his defense attorney is claiming that there is a steamroller of an investigation pitted against him.

Prosecutors are alleging that Wong accepted bribes of up to $100,000 by a Taiwanese company looking to make some headway in a lease negotiation. Wong's attorney is claiming that there is merely an "illusion of evidence" and that the prosecution is distorting Wong's relationship with the company.

Wong has been tied together with a "witch-hunt" that seeks to take down people who were part of former Mayor James K. Hahn's administration.

White collar crimes such as bribery, and related crimes such as extortion and embezzlement are taken very seriously in Los Angeles. These crimes are taken especially seriously if they are tied to any sort of local or state government, government entity or political organization. Bribery, fraud, embezzlement and extortion are also great fodder for the media, because it makes a great headline if a school principal is arrested for stealing money from a school (even if the principal has been wrongly accused).

Crimes such as embezzlement can be treated as either a misdemeanor or a felony, depending upon the severity of the crime and the skill of the defense attorney handling the matter. First offenses may bring fines, but continued offenses will almost definitely bring jail time and other serious consequences. Depending upon the dollar amount involved in the crime, a Grand Theft charge may even come into play, which carries serious jail time and more.

A skilled attorney will assist you in navigating the tricky waters in a case like the one mentioned, whether it's discussing a trial or a settlement. Embezzlement is a serious crime, as is bribery, and it's necessary to invest in a skilled defense attorney to handle such matters.

Embezzlement is defined as "the fraudulent conversion of property of another by a person in lawful possession of that property". America has had its share of famous embezzlers, including Robert Vesco, who in the 1970's stole tens of millions after he took over Investors Overseas Services, a struggling mutual fund company. This past September in El Paso, TX a woman created fake social security numbers after she was put in charge of distributing funds to people in need, allowing her to make purchases for herself.

Southern California has been no stranger to embezzling, and its affects have damaged or even ruined both the reputations of public institutions, but public trust as well. Take the city of Irvine. There they have a project known as the "Great Park" which is a site purchased from the federal government after a military base was closed down. The site is a billion-dollar operation as construction and development are on-going. An individual known as Matt Bryant was appointed to be a major leader in the development and organization of the entire project. However, only recently has it been discovered that he embezzled funds in 1989 from San Juan Capistrano and used it for cocaine. Bryant in fact pleaded guilty and was convicted of embezzlement for stealing almost $23,000 in public funds to buy cocaine and go on weekend benders. Individuals guilty of this crime always have access to public funds through a bank account and are able to manipulate the system.

Another individual whose embezzlement not only infuriated others, but threatened lives is Bo Steffan Eriksson. Mr. Eriksson was the Swedish national who crashed a $3 million Ferrari Enzo and first blamed it on an unknown assailant and then claimed responsibility. Apparently, a British bank had purchased three high end sports cars and Eriksson never paid a cent back. He pleaded guilty to embezzling funds and was sentenced to three years in prison.

Like most white-collar crimes, the jail time varies with each individual. In public cases the judge may offer a stiffer sentence in order to make an example of the individual. In smaller matters, there may be only a few months in jail, along with a hefty fine.

Edwin H. Sutherland, who is one of the most influential criminologists of the first half of the twentieth century defined white collar crime as "a crime committed by a person of respectability and high social status in the course of his occupation."

According to the IRS website, fraud on the corporate level, encompasses violations of the Internal Revenue Code (meaning mostly taxes) and related statues committed by large, publicly or privately traded corporation and/or by the senior executives. There are incredibly strict laws governing such crimes, and high profile cases such as Wesley Snipes recent tax evasion case have grown in scope of late.

Just this week, a French Bank, Societe Generale, lost $7.1 Billion from fraud, all to one trader. Fraud affects not only employees at such major corporations as Enron, but the corporations themselves. In fact, current presidential candidate and former Mayor of New York City, Rudy Giuliani had a close friend, ally and employee of the City of New York Bernard B. Kerik indicted on federal charges of fraud and tax evasion. Cases like these, white collar crimes, are being more frequent and due to public pressure are being prosecuted with greater zeal than ever before.

President Bush established a Presidential Fraud Task Force in 2002, which includes the IRS Commissioner as a board member. The task force is intended to provide direction for the investigation and prosecutions of significant cases involving securities and accounting fraud.

Fraud is a major issue which has plagued American business institutions for many years. Sources show that in 1996, fraud cost businesses in America six percent of annual revenue, that's $60 million out of every billion, meaning Microsoft (which grosses tens of billions annually) had an estimated loss greater than the value of many pro sports teams.

The IRS has even set up a website that informs citizens of not just laws, but potential penalties of tax and securities fraud.

Beyond just having to pay the money's owed (in the case of tax fraud) or fines (in the case of securities fraud) penalties always include jail time.

In January of this year, a man in St. Louis was sentenced to 44 months in jail for defrauding lenders of more than $500,000. Also in January of this year, a man was sentenced to 18 months in prison and pay $185,000 to the IRS for income tax evasion.

The jail sentences tend to be major, and in fact Wesley Snipes is facing years in jail for evading his taxes. Al Capone, the famous mobster, was never throw in jail for murder or robbery, but for tax fraud. The IRS is a mean institution, and enforces their laws down to the T.