Criminal attorneys understand that fraud allegations -- not just convictions -- can ruin an individual's reputation, personal relationships, career or Union County business. A powerful defense is required to repel false accusations.
]]> A New Jersey dentist stands to lose his practice over charges he altered patient records and submitted false claims to Medicaid. The Metuchen man's case is tied to a 2012 fire in South Plainfield where three children, ages 5 to 12, and the children's grandmother, lost their lives.Dental records were required to confirm the children's identities. The records were seized from the dentist who listed the children among his Medicaid patients. The medical examiner claims the records and X-rays taken after the children's deaths were incompatible.
The unmatched records delayed the release of the children's bodies to the family. The incongruousness of the evidence led the government to believe the records were falsified.
A grand jury indictment claims the 47-year-old dentist manipulated the children's records to scam Medicaid for at least $1,000. The defendant is suspected of sending at least five false claims to the government health care agency for dental work that was not performed.
The owner of Healthy Smiles Dental Associates pleaded not guilty to charges of insurance and health care fraud, obstruction of justice and records' tampering. The dentist was released on bail.
Mistakes in medical coding, recordkeeping and billing can raise the suspicions of federal agents. The government can be unforgiving whether errors are accidental or intentional.
Panicked suspects often make matters worse by trying to purge files or business records. Instead, fraud suspects are encouraged to contact an attorney immediately.
Source: nj.com, "Metuchen dentist charged with faking records of children killed in 2012 South Plainfield fire" Sue Epstein, May. 10, 2013
]]>A tax fraud charge is extremely serious for a Westfield business person. They stand to lose freedom and relationships along with assets, a reputation, and customers or clients. A conviction can wipe out the efforts of a lifetime, which is why tax crime suspects require early, expert criminal defense.
]]> A Toms River man will be sentenced in late summer for federal income tax evasion. The 57-year-old was accused of keeping money hidden in a business subaccount under his spouse's name. The defendant also pleaded guilty to payroll tax violations.Unfortunately, the businessman was already in debt to the Internal Revenue Service at the time of his alleged misdeeds. The government filed a levy against the man's assets for 2002 federal taxes that were overdue.
Federal prosecutors in New Jersey said the asset seizure prompted the small business owner to start hiding money. A trust account in the name of the defendant's wife allegedly became the repository for all other business and personal accounts.
Records showed the defendant used the account to pay tens of thousands of dollars in mortgage, credit card and insurance payments. The IRS said the defendant never declared or paid taxes on the secret income.
The accused man had three employees and deducted taxes properly from the workers' paychecks; however, the money was never sent to the federal government.
A prison term of up to five years and a $250,000 fine are possible. Between now and sentencing, a defense attorney may be able to negotiate a last-minute reduction of penalties. The earlier an attorney is notified that IRS tax problems are possible, the more time a criminal lawyer has to build a formidable defense.
Source: app.com, "Toms River attorney admits tax evasion" Anthony Panissidi, May. 01, 2013
]]>The Marlton couple allegedly operated eight travel companies between 2007 and 2011, as customers’ complaints mounted. The pair attracted business with postcards offering free vacation flights and cruises.
]]> Interested parties were subject to a hard sales pitch and bought vacation packages for up to $6,500. Extra fees from $50 to $249 were tacked on for incidentals like surcharges, port fees and taxes. Customers said they were unable to book the promised vacations.An investigation led to a state lawsuit against the 41—year--old male defendant. A $3 million settlement was reached in early 2011 on the condition that the man stayed out of the travel business for at least five years.
Prosecutors said the man wasted no time joining up with the female codefendant to continue the vacation package scam. The businessman was charged with theft in July 2011. The state also placed a lien on the couple’s Burlington County residence and seized expensive cars and bank accounts. The civil forfeiture case is pending.
Some gaps appear in the story. Reports failed to state why the man’s business partner wasn’t a defendant in the civil action or implicated in the earlier theft charge. What was the result of the state theft charge almost two years ago? Officials also did not say why it took so long to bring formal criminal charges against the couple they called “old-school con artists.”
Is it possible the government did not find as much evidence as it hoped? The male defendant still proclaims his innocence. If a jury is persuaded to believe that evidence is thin or unbelievable, the business owners could walk free. Innocence is presumed until guilt is proven in a court of law.
Source: courierpostonline.com, "Marlton couple accused in $700,000 vacation scam" Jim Walsh, Apr. 24, 2013
]]>Prosecutors said from the time the first Nifty Fifty establishment was opened in 1986, owners conspired to commit fraud and cheat the government of tax revenue. The accused group allegedly failed to report more than $15 million in restaurant receipts through 2010, evading $2.2 million in taxes.
]]> Nifty Fifty business practices were never questioned until a Sovereign Bank employee picked up on a disparity in a loan application. One of the restaurants' owners had applied for a mortgage for a New Jersey beach property claiming $200,000 in income. The applicant's tax returns reflected a $78,000 income.The bank employee combed through related bank accounts and discovered that $2 million was embezzled from the restaurants. The loan officer told the Nifty Fifty owner about the series of cash transactions made to an accountant but was told to take no action.
The businessman said the matter would be handled internally. Shocked by the owner's response, the bank contacted the IRS.
Federal investigators said the accountant had been used to create fraudulent tax returns. Prosecutors told the court the owners failed to pay employment and personal taxes while hiding receipts in safety deposit boxes and personal safes.
The five defendants of the Nifty Fifty's chain pleaded guilty to federal charges. Possible consequences include decades of prison time and millions of dollars in fines.
The work of a defense lawyer does not end with a plea or verdict. An appeal may be advised after a defendant's conviction during a jury trial. A guilty plea is often the result of compromise negotiations with prosecutors about a reduction of charges and sentencing terms for the defendant.
Source: delconewsnetwork.com, "Bank investigator testifies against Nifty Fifty's owners," Cindy Scharr, April 9, 2013
]]>White collar crime and tax evasion are gentle terms for what the Internal Revenue Service considers fraud. Taxpayers who try to hide or keep money that governments believe belongs to them can face hard punishments -- fines, penalties and even imprisonment. Sometimes the IRS cannot tell whether a tax return contains a deliberate or innocent mistake.
]]> Tax laws are complicated, which is why many individuals trust tax preparation services. Most professional tax preparers are reliable. When taxes are inaccurate, it is not usually the tax preparer who suffers penalties. The blame is placed upon the taxpayer who signs the return.The IRS's Newark office recently publicized several criminal prosecutions, including the case of a Jersey City man who ran a tax preparation business. The tax preparer found all sorts of deductions for his clients. Unfortunately, the deductions were falsely inflated. The man also admitted he never reported his business income.
IRS audits strike fear in the hearts of taxpayers, not necessarily because they are guilty of a serious crime. It is frightening to be suspected or accused of a felony. It is also costly for an individual to defend a tax position when he or she had no part in preparing a tax return.
The IRS wants to prosecute "willful" tax violators, not taxpayers who make mistakes. Government officials recommend that taxpayers thoroughly review tax returns before signing and filing them, whether the returns are personally prepared or handled by a third party.
To ensure that a tax return is correct, many New Jersey taxpayers take the extra step to have the form reviewed by a tax attorney before filing the document.
Source: accountingtoday.com, "IRS Criminal Investigation Warns about Tax Preparer Fraudsters," Michael Cohn, April 5, 2013
]]>Prosecutors said the defendants, including the 69-year-old retired CEO, used employees to get around New Jersey's pay-to-play law. The statute forbids most businesses with government contracts from donating more than $300 to politicians.
]]> According to allegations, Birdsall funneled $686,000 in influence money to public officials over six years.Birdsall officers are charged with encouraging employees to write personal checks for campaigns up to the legal donation limit. Workers were reimbursed through company bonuses. The checks were allegedly sent in piles to unidentified bipartisan public officials and election campaign organizations in five counties.
Authorities said the money went to public officials who could help direct contracts to the engineering firm. Records showed the business received over $86 million in government contracts since 2008. The alleged political contribution scheme began in 2006 and continued through last year.
The defendants range in age from 51 to 73. Each man faces possible prison terms of up to 20 years for first-degree money laundering and conspiracy. Fines could add up to as much as $1 million per defendant. Additional charges were filed for corporate misconduct, record falsification and false government contract representation.
A company attorney seemed to admit the company, or at least some of its executives, had engaged in wrongdoing. The lawyer told the court that Birdsall underwent a voluntary restructuring within the last year to make certain "such actions could never occur again."
The government will require volumes of evidence and a clear money trail to prove conspiracy and money laundering charges. A seasoned criminal defense lawyer can refute charges by showing investigators made mistakes. An attorney's goal is the most favorable outcome for the defendant.
Source: nj.com, "Seven leaders of N.J. engineering firm accused of illegal campaign contributions," Christopher Baxter, March 27, 2013
]]>Auernheimer then sent roughly 114,000 of the discovered email addresses to a journalist along with the story on how he'd obtained them. While many within the technology arena praised Auernheimer's action considering it to be a public service, AT&T and state and federal prosecutors chose to pursue felony criminal charges.
Auernheimer's defense team, much of which is comprised of legal and technology experts working the case pro bono, has appealed the sentence. Many believe the sentence to be too harsh and an overreaching interpretation of the Computer Fraud and Abuse Act.
The email addresses which Auernheimer accessed were in fact contained within a publically accessible website. He did not, therefore, even "hack" an AT&T website. Furthermore, similar computer crimes have always been treated by the courts as a misdemeanor. Many legal and technology experts believe that the court's decision to pursue felony charges sets a dangerous precedent.
Individuals who stand accused of computer crimes would be wise to seek legal representation. In many cases, such criminal charges are serious in nature and can result in hefty fines, jail time and a permanent criminal record.
Source: TechCrunch, "Andrew 'weev' Auernheimer Obtains New Lawyer, Files Appeal," Jordan Crook, March 22, 2013
]]>The so-called "Internet cafes" that were owned and run by the organization's members were actually illegal gambling centers. Police believe that profits from these centers totaled more than $300 million and allowed the four heads of the operation to walk away with $90 million each in pure profit.
Over the course of four years, those involved in the operation used several real and fake businesses to hide the illegal funds they earned. The four individuals believed to be in charge of the organization currently face several criminal charges including money laundering, racketeering, conspiracy, influencing corrupt organizations and keeping gambling houses.
The criminal charges these individuals face are serious and will likely result in hefty fines and years behind bars. In matters where an individual is facing similar charges, a criminal defense attorney can be an invaluable resource in helping to navigate the criminal justice system and provide for the best possible legal outcome.
Source: Seminole Chronicle, "2 more arrested in Seminole for racketeering," Emon Reiser, March 28, 2013
]]>Today, prosecutors are attempting to build a case against Raj's younger brother; Rajarengan Rajaratnam who they believe was a co-conspirator in several insider trading actions. Currently, no formal charges have been brought against the younger Rajaratnam, and time is quickly running out to bring charges as the statute of limitations on such securities and fraud charges will expire soon.
Evidence against the younger Rajaratnam, includes conversations recorded via wiretaps where he can be heard talking to his older brother. In these conversations, Rengan is heard telling his older brother that he spoke with a consultant who is "a little dirty" and "finally spilled the beans".
The eldest Rajaratnam brother is currently serving an 11-year prison sentence for federal crimes. Currently, no charges have been filed against the younger brother who now lives in Brazil.
Individuals who face potential criminal charges related to insider trading or securities fraud would be wise to consult with an attorney. In many cases, a skilled criminal defense attorney can successfully ensure such serious charges are reduced or dismissed altogether.
Source: The New York Times, "Prosecutors Weigh Insider Trading Case Against Brother of Rajaratnam," Peter Lattman, March 21, 2013
]]>A 51-year-old New York man is currently facing nine felony charges related to tax evasion. According to the prosecution, the 51-year-old city builder failed to claim a total of $61,800 in income between 2005 and 2008. The man's defense attorney, however, contends the man is simply not astute when it comes to financial matters and that the reporting tax errors were not made with criminal intent, but rather inexperience in dealing with such financial matters.
If convicted, the 51-year-old could potentially be sentenced to between three to 12 years in prison. Additionally, he would likely be forced to pay fines in the amount of taxes he allegedly owes the state. Moreover, he would lose his business and livelihood.
While the specifics of this case are not known, in many cases small business owners who are accused of white collar crimes like tax evasion made honest mistakes. This case proves why it's important for small business owners to consult with a legal and tax professional. Doing so can help ensure financial filings are accurate and prevent an individual from incurring additional costs in the future.
Source: The Saratogian, "Grand Jury to hear tax evasion case," Lucian McCarty, March 5, 2013
]]>During a recent national effort, IRS agents identified nearly 400 individuals throughout 32 states who they believed to be guilty of identity theft. After further investigation into these matters, nearly 200 of these individuals were indicted and 109 arrested on federal identify theft and tax fraud charges.
Being accused and charged with crimes such as identify theft and tax fraud is serious and can result in an individual paying hefty fines and spending months or years in prison. Miller asserts that the IRS is aggressively pursuing cases related to potential identity theft and tax fraud and the agency is throwing an enormous amount of money and man power into investigating every potential case.
The IRS is also aggressively pursuing legal action against those individuals found guilty of tax fraud with some sentences resulting in 20 years in prison. These aggressive efforts are likely to continue as IRS officials contend their hard work has resulted in $20 billion dollars in fraudulent tax returns being saved.
Individuals who are facing charges related to identify theft and tax fraud would be wise to secure a skilled criminal defense attorney. An attorney who is experienced in handling such matters will fight for your rights and help provide for the best possible legal outcome.
Source: The Norman Transcript, "IRS is fighting ID theft: Tax season has the agency on high alert," Michael Kinney, Feb. 11, 2013
]]>Once tax refund checks were issued for the fraudulent tax returns, another individual named in the lawsuit who worked as a bank teller cashed the checks using bank accounts of existing customers. All parties allegedly involved in the tax fraud scheme then split the proceeds of their efforts which totaled roughly $200,000.
The 45-year-old defendant was recently found guilty for her role in the tax and ID theft ring. In addition to the time she will spend in federal prison and years on probation, she and her co-defendants must also repay the total amount of funds accrued back to the Internal Revenue Service.
Criminal charges including those related to tax fraud and identity theft are serious and often carry with them stiff penalties and fines. This case is a good example of why individuals facing such criminal charges would be wise to ensure they enlist the assistance of an experienced criminal defense attorney. Failure to do so can otherwise result in more serious charges and years spent behind bars.
Source: Stamford Patch, "Stamford Woman Sentenced to 2 Years for Tax Fraud, ID Theft," DJ McAneny, Feb. 26, 2013
]]>The Securities and Exchange Commission and Federal Bureau of Investigation are investigating several options trades that were made the week prior to the deal being announced. The suspicious trades allowed those placing the bets to purchase Heinz stocks at a set price through June. Prior to this event, trading of Heinz stock had been nominal so the timing of the trades alerted officials that insider trading may have been a factor.
Currently, authorities are attempting to identify the individual traders involved in the transactions. From there, they will seek information related to those individuals at Heinz, Berkshire Hathaway or 3G Capital may have been responsible for leaking information related to the acquisition.
So-called white collar crimes like insider trading are serious and often result in those accused facing felony criminal charges. For these individuals, having a criminal defense attorney who is well-versed in financial matters is critical. Oftentimes a skilled defense attorney is able to negotiate a settlement that allows the accused to avoid felony charges and jail time.
Our New York criminal defense law firm helps individuals who face charges related to insider trading and embezzlement. Our attorneys are skilled and adept legal professional who help provide for the best possible legal outcome.
Source: The New York Times, "F.B.I. Said to Be Looking at Suspicious Heinz Trades," Ben Protess, Feb. 19, 2013
]]>Failing to keep accurate financial records often harms a small business owner's bottom line. Without accurate financial statements, records and receipts; business owners have a difficult time claiming expenses which they are able to write off. Additionally, if no paper trial exists and the IRS questions the authenticity of a business's tax return, hefty fines or criminal charges may result.
Another mistake many small business owners make with regard to taxes revolves around mixing business and personal finances. Again, if a small business owner faces an IRS audit, trying to establish and document which expenses are business v. personal can be nearly impossible.
Many business owners are well-intentioned and simply lack the financial skills and tax knowledge necessary to complete tax returns. It may, therefore, make sense for a small business owner to hire an individual who is experienced in handling tax matters.
Our law firm helps individuals and small business owners who are facing criminal charges related to tax fraud, tax evasion and payroll fraud.
Source: Business 2 Community, "16 Ways Bad Bookkeeping Hurts Business," Robyn Bolt, Feb. 14, 2013
]]>Speaking at the man's trial, his defense attorney pleaded with the judge claiming the man's mistakes stemmed from a desire to provide for his family. Further, the defense attorney contended the 62-year-old man didn't live beyond his means or flaunt his wealth.
When an individual faces charges related to tax fraud or tax evasion, the burden of proof falls on the government and Internal Revenue Service. In this case, government prosecutors were able to determine the man kept several financial records and books which he used to falsify tax-related documents.
The man was ordered to pay fines in excess of $260,000, which he was able to do. His omission of guilt, repayment of fines and public apology were not, however, sufficient in keeping him out of prison. He was sentenced to serve six months in prison and an additional three years of probation.
When facing criminal charges related to tax fraud or tax evasion, individuals would be wise to secure a criminal defense attorney experienced in handling such matters. A skilled defense attorney who is experienced in dealing with the IRS can be an invaluable resource and help provide for the best possible outcome.
Source: CPA Practical Advisor, "Pennsylvania man gets 6 months for tax evasion," David Hurst, Feb. 5, 2013
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