Category: White Collar Crime

Strategies that were once reserved to gather evidence on drug rings are now being employed to expose those individuals and organizations committing fraud and hiding assets. According to a recent Forbes article, recent federal agency cases have used wiretaps, informants and even undercover sting operations to provide evidence on key individuals. A case that targeted Steven Zinnel in the Eastern District of California shows the extent that federal agents are willing to go in order to build a case against those breaking white collar crime laws.

It Begins with Bankruptcy and Divorce

Federal authorities were given information from a third party that Steven Zinnel, an entrepreneur, had failed to provide information on all of his assets during a 2008 bankruptcy filing. Their theory was that Derian Eidson, both his girlfriend and an attorney in Orange Country California, had aided him in hiding his assets. She began a romantic relationship in 2001 after his divorce and represented his interests in various business concerns.

The Trap Was Set

System 3’s sole owner, Tom Wilbert, cooperated with the Feds and arranged a one-time payout for Zinnel. In 2008, Wilbert offered Zinnel $4 million to server all ties. Zinnel accepted. Eidson was involved in that her assistance was requested in putting together the final agreement in Sacramento. In unusual undercover tactics, the parties representing System 3 during that meeting were also assisting the federal government.

The Indictment Conclusion

In June 2011, a federal indictment determined that that Zinnel was not forthcoming about all of his assets, including his stake in a company called System 3. In October of 2001, Zinnel invested $170,000 into System 3. His name appeared on none of the documentation and only in 2007, 2 years after his bankruptcy, did he, via a company called Done Deal that was owned by Eidson and employed Zinnel, begin receiving monthly “consulting fees” from System 3.

Both Eidson and Zinnel refused a plea deal and went to trial. Eidson was sentenced to 121 months and Zinnel to 18 years.

A California Criminal Defense Lawyer Can Help

Non-violent offenders face stiffer sentences and unusual tactics. The law offices of Lawrence Wolf have been practicing criminal law for more than 40 years. A complimentary consultation with a California criminal defense lawyer at the Law Offices of Lawrence Wolf  can help individuals determine next steps. Contact us today at [number type=”1″].

California attorneys recently gathered together for a round table series on white-collar defense. The roundtable was moderated by California Lawyer and reported by Cherree P. Peterson of Barkley Court Reporters. Thanks to the February 2015 publication source, California Lawyer, below are a few of the highlights from this very informative discussion on criminal law in Los Angeles.

Highlights from the California Lawyer 2015 Round Table Series

In 2014 there was a much-publicized white-collar incident, where two hedge fund managers had their insider trading convictions overturned by the U.S. Court of Appeals for the Second Circuit in U.S. v. Newman, No. 13-1837 (Dec. 10, 2014). During the roundtable, participants were asked about the rationale regarding this decision. Timothy P. Crudo of Coblentz Patch Duffy & Bass; Eugene Illovsky of Morrison & Foerster; John F. Libby of Manatt, Phelps & Phillips; and Kyle Waldinger of the U.S. Attorney’s Office, Northern District of California all shared their insights. However, Eugene Illovsky, a white collar crime attorney, concluded discussions saying, “The end result is that cases with more remote tippees may not be charged criminally, but will be handled by the Securities and Exchange Commission. And districts other than the Southern District of New York will get involved and start to flex their securities muscle.”

Important Current And Future Trends Are Revealed

The round table discussions revealed a game changing decision on insider trading. The participants also discussed the new sentencing guidelines for fraud convictions. It was revealed that there will soon be more robust options for filing charges under the bank fraud statutes. Incredibly informative insights from the Department of Justice were provided on health care billing.

In addition, long-term trends are beginning to produce more administrative hearings from the Securities and Exchange Commission. These trends have lead to the “virtual death” of joint defense for both corporations and their insiders. In this vein, John Libby commented that, “Deferred prosecution agreements have been helpful, especially for corporations in regulated industries who can’t afford to go to trial.”

A few of the roundtable’s additional highlights included Timothy Crudo comments on the recent developments in white-collar criminal law. Mr. Crudo responded that, “Justice Scalia is wary of regulations applicable in both civil and criminal cases that stretch criminal liability to reach conduct that the underlying statute doesn’t clearly cover.”

In conclusion, the California Lawyer 2015 Roundtable Series: White-Collar Defense provided many informative insights into the current trends within this niche sector. To learn more about the California Lawyer 2015 Round Table Series: White-Collar Defense and how it will affect California laws, visit www.youareinnocent.com to contact a knowledgeable Los Angeles criminal law attorney, or call [number type=”1″].

A former city manager, his assistant, the city’s mayor, and a city councilman from Bell have been ordered to stand trial on a variety of charges related to taking public funds, according to My Fox LA.

The individuals have been charged with over 50 counts of misappropriation of public funds, conflict of interest, and falsification of public records. Prosecutors claim that the city officials legally inflated their salaries and then falsified public records to hide those salaries. The city manager was found to have a salary and compensation package of $1.5 million. In order to pay those salaries, prosecutors allege, they diverted property taxes and other funds. They also allege that the city manager loaned almost $2 million of public money to himself and others. Defense attorneys argue being well-paid is not a crime.

Although some view California white-collar crimes, such as the misappropriation of public funds, as not as serious as other types of crimes, white collar crimes can have serious legal consequences. There are both state and federal white collar crimes. Penalties for white collar crimes can include prison or house arrest, as well as fines and restitution. They can be charged as felonies or misdemeanors.

If you are facing charges for a white collar crime in California, contact the Los Angeles white collar crime defense lawyers at the Law Offices of Lawrence Wolf. Our attorneys have extensive experience in all aspects of criminal law, including successfully defending clients on a variety of white collar crime charges. Call today at 866-390-7373 to learn more.

For the first time, companies are reporting they are losing more due to the electronic theft of data than from a physical stealing of assets, according to Reuters. A poll of over 800 senior executives showed that electronic theft is usually done by a company’s own employees. Fears over data theft are preventing many companies from expanding internationally.

Businesses lost $1.7 million per billion dollars of sales to fraud. China is the emerging market with the highest level of fraud. Ninety-eight percent of businesses in China are affected by fraud. Colombia has 94 percent of its businesses affected and 90 percent of Brazil’s businesses are affected.

Although electronic theft is at an all-time high, the physical theft of cash and business assets is by far the most widespread form of fraud. Physical theft accounts for 27.2 percent of fraud losses, and electronic fraud is 27.3 percent of losses.

Not surprisingly, firms that were information-based rather than products-based had the highest levels of electronic theft. The study found that the most likely employees to commit fraud are junior employees and senior management. Despite this big rise in electronic theft, less than 50 percent of companies are planning on boosting their spending on information security in the next year, which may be in part to the current economic climate.

Many people have the mistaken impression that a conviction for electronic theft has less serious consequences than a conviction for a crime relating to burglary or grand theft. However, stealing a company’s electronic assets is a very serious crime that can carry a harsh punishment. If you have been charged with a California theft offense, contact the Los Angeles theft crime defense attorneys at the Law Offices of Lawrence Wolf today at [number type=”1″]. Our attorneys will help you navigate the criminal justice system as painlessly as possible.

While white collar crimes may not be as widely publicized as other types of illegal activity, the repercussions can be very serious. According to claimsjounal.com, a Huntington Park insurance agent faces one felony count of grand theft after she allegedly used a homeowner’s insurance premium payment for her own personal use. Reportedly, the woman provided the homeowner with a quote for homeowners insurance, issued the homeowner a counterfeit insurance certificate, and received automatic payment checks from the homeowner in the amount of $823.00 over the course of two years.

The California Department of Insurance (CDI) received a complaint from the wronged homeowner after he had contacted his previous insurance company to inquire why he had not received a new policy for the 2009 calendar year. The CDI informed the homeowner that he was not in fact covered by homeowner’s insurance and further investigation into the matter proved the statement to be true. The woman who sold the homeowner the coverage has previous convictions of grand theft on her record, and allegedly did not hold a valid license to sell insurance at the time she was previously convicted.

The Press Enterprise, pe.com, recently ran an article that talked about a pastor that has been accused of embezzlement and money laundering. The Compton-area pastor pled not guilty to both counts. The Double Rock Baptist Church has accused the former pastor of diverting funds from church bank accounts and using the funds for personal projects in his Corona home. If convicted, the pastor could face more than seven years in prison.

The Los Angeles County Sheriff’s Office has been investigating the preacher for some time now, even searching his home in 2008 and confiscating financial records that may have aided in securing his arrest. After the search, members of the church were threatened not to cooperate with the investigation at the risk of being barred from the church. While evidence collected and witness testimony will more than likely procure a conviction against the pastor, not all cases of white-collar crime in Los Angeles are as clear cut.

The trust given to those in charge of finances is tremendous. However, just because a person has access to funding does not mean that the person is going to, or already has, embezzled it.

A latimes.com report from May 13, 2009 stated that an investigation into the offices of former assessor Bill Postmus has prompted the San Bernardino County Supervisors to file suit against Postmus and five of his co-workers in an attempt to recover hundreds of thousands of dollars. The report was done by former federal prosecutor John Hueston who gained fame for prosecuting Kenneth Lay and Jeffrey Skilling of Enron. The investigation revealed that crime, fraud, and drug use were a common occurrence in Postmus’s office. In addition, the 30 page document states that people not qualified for the job were hired and did not do any assessor related jobs but instead conducted unauthorized political campaigning. The investigation’s most shocking accusations are related to Postmus’s drug use. His assistant said he, “looked like he fell off a park bench.”

Colleagues even suspected him of inhaling canisters of DVD cleaner. Soon afterwards, Postmus was arrested on suspicion of possession of methamphetamine. He resigned in February.

Gary Ovitt, board Chairman, said, “As a taxpayer and as a public official, I find the activities detailed in the report deeply disturbing. There is certainly enough information in this report to compel the Board of Supervisors to pursue legal action against these individuals and seek damages for the taxpayers.”

Officials have arrested three of those mentioned, who have posted bail. Postmus has been charged with six felonies and former assistant assessor Erwin is facing 10 felonies, mostly for failing to properly report gifts while in office.

In today’s world of politics and business, the line between what is ethical is sometimes misinterpreted and can lead to serious accusations of white collar crime. If you or a loved one has been accused of a white collar crime in San Bernardino, contact the skilled lawyers at the Law Offices of Lawrence Wolf. We have helped our clients win for over 30 years. Please call [number type=”1″] for a free consultation.