Articles Tagged with white collar crime

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Corporate white-collar criminals enjoyed the lowest prosecution rate in history under former President Trump. But there is a new sheriff in town. According to Deputy Attorney General Lisa Monaco, about 15% of these significant white-collar crimes involve repeat offenders. Now the Department of Justice (DOJ) is toughening its posture toward these corporate offenders. Under Monaco’s direction, a Corporate Crime Advisory Group is conducting a wide-ranging review of policies related to corporate criminal activity and developing new policies aimed at delivering both incentives and consequences when dealing with white-collar crime. If you have been charged with such crimes, you need an aggressive local criminal defense attorney sooner rather than later.

Investigations Expedited

In an attempt to intensify personal accountability when white-collar crimes occur, the DOJ is more focused on prosecuting the top dogs in the corporate world than on merely punishing the corporation itself. New DOJ policies fixate on identifying repeat offenders and prosecuting them. That means the DOJ must look at misconduct within a company more expansively, install more monitors to stay on top of possible issues and make more persuasive demands for collaboration in these cases. Offenders will have to share evidence of crimes and actually name names across the board, not simply point out those involved to a substantial degree. Immediately upon discovering evidence of misconduct, the government will require notification, which eliminates the previous custom of gamesmanship and delay from corporate entities. Companies who continue with their old practices will soon discover that the penalties are delivered more quickly and more heavily than what they may have expected in previous years.

Required Self-Disclosure 

The DOJ has developed policies that definitively outline the expectations of corporate self-disclosure, along with the benefits of doing so. Speedier disclosures result in greater accompanying benefits. Explicitly, collaboration and voluntary remediation by companies could lead the DOJ to forgo efforts to seek a guilty plea or the use of independent compliance monitors, which will result in huge savings for the companies. And we all know money speaks volumes and can be a huge incentive for cooperation. 

Past Behavior Matters

Additionally, a thorough review of the offender’s civil, regulatory, and criminal history will now be weighed as the DOJ considers resolving cases of wrongdoing. That is a difference worth noting, as only conduct similar to current law-breaking was considered when determining how to proceed in the past.

More Prosecutions

There is another potential change worth noting when it comes to repeat offenders. The DOJ is studying the elimination — or, at a minimum, a significant reduction — of allowing lawbreakers to “weasel out” of criminal prosecutions by simply paying fines and making promises that the illegal behavior will not happen again. An entirely new group of FBI agents will be tasked with pursuing corporate crimes and seeking criminal prosecutions when appropriate. Continue reading

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If you think that you will get away with giving out services or products from your job without your employer knowing, you may have some success. But you also could face serious repercussions if you are caught. Any product or service that is worth more than $1,000 that you unlawfully provide to another party under the table could result in commercial bribery charges. This behavior is commonly called providing kickbacks. The state of California punishes individuals arrested, charged, and convicted of commercial bribery with jail time. 

To defend against bribery charges in California, you will need a knowledgeable and competent defense. David M. Boertje is a San Diego criminal defense attorney who has extensive experience helping individuals charged with crimes fight to overcome them and secure the most favorable outcome possible.

What Happens if You are Charged with Bribery in California?

When an employee knowingly takes a product or service to their own benefit without the consent and permission of the owner of the business they work for and offers it to another party this is considered bribery. It is not just the person who is fraudulently offering the valued product or services that can be arrested and charged. The parties that accept these products or services can also be arrested and charged.

For a commercial bribe to take place, an individual intentionally tries to insert influence with the goal of defrauding the business for which they work. Commercial bribery is considered to be a corrupt act and the value of the property that was used in the dishonest transaction will determine how severe the penalties are.

Products or services that are $1,000 or more can result in a misdemeanor-level crime. This crime comes with prison time that can be as long as one year. When the products or services are high-value, the crime can be moved up to the felony level. Felony bribes can put a person in state prison for up to three years.

Successfully combating bribery charges can be done with a targeted and strategic approach. A talented San Diego criminal defense attorney will be able to scrutinize your case and find areas that can be advantageous for your defense. Some of the arguments that could potentially be made include:

  • Your employer knew that the transactions were taking place.
  • You did not have corrupt intent when you were engaging in the transactions.
  • The amount of the product or service in question was under $250 and therefore does not incur criminal penalties.

The time spent behind bars and the establishment of a criminal record can be very damaging to one’s life after they serve their time. Being able to have your charges dropped, or at the very least reduced is the ultimate objective.  Continue reading

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Maybe you used another person’s credit card because you believed that you had permission to do so. The problem is that when a credit card or debit card is used without permission, the purchases are considered a form of theft by the California court system. This is unlawful activity, and if you are charged with using another person’s credit card to make purchases, you could be charged with credit card fraud in California.

A California credit card fraud charge can be prosecuted at both the state and federal level depending on the details of the case. As a white-collar crime, there are stiff penalties associated with credit card fraud. If you are facing penalties, it is vital to protecting your freedom and your future that you have the very best San Diego criminal defense attorney representing you. A first-rate attorney will know how to examine your San Diego fraud case at every angle to devise an effective strategy that will make it difficult for the prosecution to prove their case against you.

What Type of Defense Strategies Can be Used in a San Diego Credit Card Fraud Case?

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White collar crimes happen each day among professionals – doctors, accountants, research analysts, human resources representatives, government employees and other business people who have jobs in office or administrative settings. Boertje & Associates are called on to defend individuals who face white collar crime charges. The following will discuss some of the common white collar crimes in San Diego.

What is White Collar Crime?

White collar crimes are illegal but non-violent acts involving lying, cheating, concealing, or stealing. White collar crimes are usually financial in nature and are motivated by financial gain.

The punishments for white collar crimes include jail time, fines, and the requirement to pay the stolen money back. Often times, those who are accused of white collar crimes are good, law-abiding citizens who simply made a mistake.

Common White Collar Crimes

  • Fraud. An act of fraud occurs when someone harms someone else to gain an unfair advantage. This includes tricking or deceiving someone, as well. California recognizes different types of fraud such as insurance fraud, real estate fraud, financial fraud, and identity theft.
  • Embezzlement. California law defines embezzlement as misappropriation of funds or property that belongs to another. When an employee uses funds in a way that was unauthorized, and the funds were entrusted to that employee, the employee is guilty of embezzlement.
  • Money Laundering. Money laundering is hiding the sources of money that was illegally obtained. This is a white collar crime that can be difficult for the prosecution to prove. Many money laundering cases fail based on lack of intent.
  • Perjury. Perjury is intentionally providing false information or misrepresenting yourself while under oath. More information can be found under California Penal Code 127.

Defending Against White Collar Criminal Charges

There are several strategies that an experienced criminal defense attorney will use to fight white collar accusations. These strategies include:

  • Working with experts such as forensic accounting specialists
  • Collecting records and following the paper trail
  • Proving lack of intent
  • Showing lack of sufficient evidence on the part of the prosecution
  • Contending mistaken identity
  • False accusations

A knowledgeable criminal defense attorney knows the ins and outs of white collar crimes and how to defend against these charges. The attorney should work creatively and as quickly as possible in the cases. With an attorney by your side, you will be able to move forward with your life and clear your name. Continue reading

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The Federal Bureau of Investigation (FBI) estimates insurance fraud to add up to more than $40 billion per year. Because fraud accounts for 10% of the money that insurance companies pay out each year, insurance premiums are higher for everyone. In the event you are accused of insurance fraud, seek legal representation from an experienced insurance fraud lawyer due to impact the accusation will have on your life.

What is Insurance Fraud?

Insurance fraud is when someone intentionally gives wrong or dishonest information for financial gain. Insurance fraud comes in several forms and include the following:

  • Auto insurance fraud
  • Unemployment insurance fraud
  • Medical or health insurance fraud
  • Committing arson or setting property on fire to collect insurance money
  • Homeowner’s insurance fraud
  • Life insurance fraud

Insurance fraud involves any act of making a false statement relating to an insurance claim. A prime example of insurance fraud is contacting the insurance company with a false accident claim on a vehicle in order to recover funds.

Insurance fraud is a serious offense and the State of California takes it as such. California laws evoke strict punishments for offenders of fraud such as fines and imprisonment.

Fraud Accusations

If you are intentionally making false statements in order to gain something that you would not have otherwise had, you are committing insurance fraud.

Sometimes when a person loses money, they will point the finger at someone else and accuse them of insurance fraud. An investigation will be launched. Then, investigating authorities and law enforcement will gather evidence such as audio recordings, cameras, cell phones, and interviewers’ others.

Law enforcement authorities will use tactics during interrogation to get you to admit that you committed insurance fraud by telling you that they have evidence against you. For these reasons, you should have a skilled insurance fraud lawyer by your side. Your lawyer will be able to fight the accusations with one word – intent.

Intent is the primary defense in insurance fraud. For you to be convicted of insurance fraud, intent must be proven. You must have intended to defraud. You must also be aware or knowledgeable of the fact that you are defrauding the insurance company. Your lawyer will work to dispute the allegation and prove your innocence by using the intent defense as well as any other defenses and strategies that apply to your unique accusation.

I am Facing Charges for Insurance Fraud. What do I do?

Get legal advice immediately. Do not try to handle insurance fraud alone. Contact an experienced insurance fraud defense attorney now. Remember, law enforcement will use anything you say can be used against you in court. Continue reading

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It was recently reported that Rep. Duncan Hunter (R-Alpine) is currently under criminal investigation by the federal Department of Justice for allegedly misspending tens of thousands in campaign funds. According to a report by the Office of Congressional Ethics, Rep. Hunter may have appropriated the money from his congressional campaign committee for personal use to pay for family travel, tuition, jewelry, groceries, and other personal expenses. The Committee on Ethics then deferred its investigation at the request of the Justice Department.

At a town hall in Ramona, California, Hunter was asked about his alleged personal use of campaign funds. In response, the congressman said his campaign had made a “mistake” and that the funds had been paid back. He has reimbursed his campaign fund approximately $62,000.

As of March 23rd, Hunter has been under criminal investigation by the Department of Justice/ Federal Bureau of Investigation for the misspending. Federal election officials and the San Diego Union-Tribune have repeatedly raised questions over the last year about his unusual spending.  These spending issues reach back over a year, when the Federal Election Commission (FEC) first questioned Hunter for using campaign funds to pay for video games on 68 occasions.

The Citizens for Responsibility and Ethics in Washington, the group that filed the original ethics complaint against Hunter, said in a statement that “Hunter has shown a blatant disregard for the rules.” The FBI has looked at the financial dealings of more than a half dozen House members in the last decade.

Federal Campaign Rules

Political action committees or campaign committees are organized for the purpose of raising and spending money to elect and defeat candidates. They must register with the FEC within 10 days of formation and abide by disclosure rules and federal limits on contributions. Candidates are not allowed use the funds in these committees for personal use.

California Campaign Rules

California’s Political Reform Act was adopted as a statewide initiative (Proposition 9) by an overwhelming vote in 1974. The state has been a leader in promoting transparency in elections since. The law requires candidates and committees to file campaign statements disclosing contributions received and expenditures made. These documents are public and can be audited by the Fair Political Practices Commission  and Franchise Tax Board. However, the law only applies to state and local elections, and not federal (ie. Congressional ones).

Additionally many cities have adopted local ordinances on the city level that may also have additional regulations and restrictions. Continue reading

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It has been reported by the San Diego Union Tribune that the amount of computer extortion crimes has significantly increased. Victims are getting notices that they have downloaded a virus and will have to pay X amount to ‘get rid of it.’ Victims are accidentally downloading ransomware. Hackers load malicious software onto people’s computers via emails, decoy ads, bogus news stories, and code embedded through websites. They then charge money to “remove” this ransomware. It is a form of extortion.

According to Special Agent Chris Christopherson, who investigates cyber crimes out of the FBI’s field office in San Diego, it is “entirely possible that we’ll have far in excess of $1 billion in losses” worldwide related to ransomware.” The final tally for 2016 has not been completed yet. The FBI claims that every hour, about 4,000 computers around the world become infected with ransomware. This is an exponentially larger problem for the city of San Diego, which faces daily attacks against its 14,000 desktop and laptop computers.

According to cyber experts, many victims never report the extortion because they feel ashamed for getting duped, or are worried that others will know they visited a pornography website or some other questionable page. Others do not know where to report the attack and doubt that law enforcement will investigate the incident.

Lately, there is increasing concern about the innovations seen in ransomware software. The new codes will offer to decrypt infected victim’s computers as long as they are willing to ‘infect someone else’ in their contact list.

Internet Crime

Internet crime is a blanket crime that generally describes fraud crimes involving the use of the internet or computers. These encompass fraudulent schemes carried through email, “phishing” (using email to obtain sensitive information), or accessing a computer or its data without permission.

In order to convict someone of internet fraud under federal law (18 U.S. Code § 1343), prosecutors have to prove that the defendant intended to commit fraud and that he or she used electronic communication to further that scheme. A conviction of internet fraud under the federal wire fraud statute is punishable by up to 20 years of imprisonment and a hefty fine.

Other criminal laws implicated in cyber crimes are identity theft statutes and credit card fraud (as they pertain to phishing schemes). Continue reading

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U.S. and European authorities just announced they have dismantled “Avalanche,” a worldwide computer network that criminals have used to steal hundreds of millions of dollars from online banking customers around the world. The network enabled crime networks to send various types of spam and malicious software to banking customers who would open these messages and have their computers become infected with malware. The malware installed would then allow criminals to steal the bank account emails and passwords. With this information the criminals were able to transfer money from the victims’ accounts to various other worldwide accounts.  According to Europol, over 1 million emails were sent out. This happened in the U.S. and 180 other countries.

Europol says it spent four years investigating the case with the help of the U.S. Department of Justice, FBI, and ESET, a global security company based out of San Diego. ECET has been reportedly helping law enforcement for years.

What is Money Laundering?

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A month after the national news broke that 5,300 Wells Fargo employees were fired for opening two million phony accounts, the California Department of Justice just announced it is investigating the bank on allegations of criminal identity theft over the creation of these accounts. The California DOJ sent over a search warrant to Wells Fargo’s San Francisco headquarters on October 5. The New York Times, through a public records request, has discovered that California Atty. Gen. Kamala Harris, in the final weeks of a run for U.S. Senate, has joined the growing list of public officials and agencies investigating Wells Fargo for the scandal.

Harris’ office has demanded the bank turn over the identities of California customers who had unauthorized accounts opened in their names, information about fees related to those accounts, the names of the Wells Fargo employees who opened the accounts, the names of those employees’ managers and emails, and other communication related to those accounts. The search warrant says that there is probable cause to believe Wells Fargo violated two sections of the state penal code — one outlawing identity theft, and the other outlawing the unauthorized use of personal information. Both are felonies.

It is unclear whether Harris will be pursuing criminal charges against individual bank employees or the bank itself. Federal regulators had revealed last month that bank employees had been secretly creating unauthorized bank and credit card accounts without their customers’ permission or knowledge since 2011. The phony accounts earned the bank boosted fees and sales figures to make the bank more money and to make employees bonuses. The bank has agreed to pay $185 million in fines along with refunding their customers $5 million.  $50 million of those fines were paid out to Los Angeles County.

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In the latest controversy surrounding Republican presidential nominee Donald Trump, the New York Times reportedly published Trump’s tax documents without his permission. The story that ran concluded that Trump declared $916 million in losses in 1995. This amount is large enough to wipe out more than $50 million a year in taxable income over a span of 18 years.

While Trump has obviously threatened legal action against the media outlet, legal experts are saying that there isno clear-cut criminal case against the newspaper. For one, it is not clear who leaked the information. The Times claims it received the documents anonymously in the mail. If this source was accurate, the Times should be protected on First Amendment grounds, since they did nothing illegal to obtain the information. Being a media outlet, the Times has a defense in that its job is to report on matters of public concern.

Trump has so far been the only presidential candidate that has refused to turn over his tax records. His opponent, Hillary Clinton, has stated that Trump refuses to turn over his taxes because he has paid none. It is reported that he has stated “That just makes me smart.”  The Times presented the leaked documents to Jack Mitnick, who was Trump’s accountant for over 30 years. Now retired, he has verified that the documents appear to be authentic copies of portions of Trump’s returns.

Consequences of Tax Evasion in California

Tax evasion is considered a white collar crime, even if it seems as though many corporate conglomerates seem to get away with it. Tax evasion in California is a serious crime subject to serious penalties.

Under California Revenue and Taxation Code §19706, it is illegal for any person or employee of a corporation to: knowingly fail to file any tax return or falsify information to evade taxes, or to willfully and intentionally make false statements on a tax return. Underpaying taxes, which is still considered tax evasion also includes but is not limited to:

  • Not reporting all income earned;
  • Failing to file a tax return;
  • Lying or making false statements on a return;
  • Claiming to be a resident of another state to avoid California taxes.

Violation of the California tax code is punishable by up to one year in jail and a fine up to $20,000. Continue reading

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