South Carolina Criminal Lawyer Blog

U.S. Attorney Bill Nettles announced that Robert Daniel Kelly of Branford, Conn., has pled guilty before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, Conn., to two counts of filing a false loan application. Kelly has been connected to a mortgage on property that he obtained through false applications in North Myrtle Beach, S.C. Accroding to the court documents and statements, Kelly applied for and received loans to purchase and refinance homes in Myrtle Beach.

He told the bank that his income was over $83,000 per month, when in reality his income is much less. As a result of Kelly filing false loan applications, Bank of America lost hundreds of thousands of dollars. Kelly is now facing a fine up to $1 million and a maximum prison sentence of 30 years. According to the article, "Kelly also faces an order of restitution in the amount of at least $959,002.03. He was originally investigated in and indicted on Jan. 25, 2011 by a federal grand jury in the District of South Carolina. The U.S. Attorney’s Office in South Carolina transferred the indictment to the District of Connecticut for entry of a guilty plea."

This is not the first time the Myrtle Beach area has been targeted for mortgage fraud cases. Earlier this year, eleven area residents were charged with mortgage fraud over the past year in an ongoing investigation that alleges a tight-knit network of real estate and financial professionals participated in a conspiracy to steal money from banks by filing fraudulent loan documents. Seven of those charged have pleaded guilty and are awaiting sentencing. The participants in this scheme overstated the sales price of homes and buyers' incomes to obtain inflated loans from banks, according to indictments and court records. The participants then split the proceeds from those loans while letting the homes fall into foreclosure, leaving banks with millions of dollars in losses and contributing to the collapse of this area's real estate market.

Here are some facts about mortgage fraud according to the FBI:

■Mortgage fraud continued at elevated levels in 2010, consistent with levels seen in 2009. Mortgage fraud schemes are particularly resilient, and they readily adapt to economic changes and modifications in lending practices.

■Mortgage fraud perpetrators include licensed/registered and non-licensed/registered mortgage brokers, lenders, appraisers, underwriters, accountants, real estate agents, settlement attorneys, land developers, investors, builders, bank account representatives, and trust account representatives.

■Total dollar losses directly attributed to mortgage fraud are unknown.

■A continued decrease in loan originations from 2009 to 2010 (and expected through 2012), high levels of unemployment and housing inventory, lower housing prices, and an increase in defaults and foreclosures dominated the housing market in 2010. RealtyTrac reported 2.9 million foreclosures in 2010, representing a 2 percent increase in foreclosures since 2009 and a 23 percent increase since 2008.

■With elevated levels of mortgage fraud, the FBI has continued to dedicate significant resources to the threat. In June 2010, the Department of Justice (DOJ), to include the FBI, announced a mortgage fraud takedown referred to as Operation Stolen Dreams. The takedown targeted mortgage fraudsters throughout the country and was the largest collective enforcement effort ever brought to bear in combating mortgage fraud.

■The current and continuing depressed housing market will likely remain an attractive environment for mortgage fraud perpetrators who will continue to seek new methods to circumvent loopholes and gaps in the mortgage lending market. These methods will likely remain effective in the near term, as the housing market is anticipated to remain stagnant through 2011.

If you or someone you know is being charged with mortgage fraud, you will need to speak with a good mortgage fraud attorney. Our Myrtle Beach criminal lawyers are ready to discuss your case. Call one of our criminal lawyers in Myrtle Beach to schedule your free consultation.

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Eight NYPD officers and one New Jersey corrections officer were arrested because they were running a gun-smuggling ring that trafficked more than $1 million in illegal weapons and stolen goods. The officers arrested include five active-duty officers assigned to Brooklyn and three retired NYPD officers. They were picked up by FBI agents and NYPD Internal Affairs investigators early Tuesday. The criminal complaint accuses several officers of smuggling M-16 rifles and weapons that had their serial numbers removed. Just last month, three of the officers smuggled the firearms from New Jersey to New York.

Of those arrested, several were accused of illegaly transporting other stolen goods such as machine guns, cigarettes and slot machines. 12 people have been charged with federal conspiracy counts which will be formally announced later this week. The arrests on Tuesday were based on charges that include conspiracy to transport firearms across state lines, conspiracy to transport defaced firearms across state lines, conspiracy to sell firearms across state lines and conspiracy to transport and receive stolen property across state lines. The alleged NYPD corruption arrests come as other officers could also be charged this week in a separate ticket-fixing investigation headed by the Bronx District Attorney's office. Officials have said more than a dozen NYPD officers could face charges, including some police union delegates.

In recent weeks, testimony at the trial of narcotics detective has featured accusations that he and his colleagues in Brooklyn and Queens planted drugs or lied under oath to meet arrest quotas and earn overtime, leading to the arrests of eight officers, the dismissal of hundreds of drug cases because of their destroyed credibility and the payout of more than $1 million in taxpayer funds to settle false arrest lawsuits. This gun-smuggling case did not begin as a sting, according to the four-count criminal complaint unsealed in the case, and indeed one of the officers, along with two co-defendants, sold a shotgun to an undercover F.B.I. agent. But as the investigation continued, it became a sting operation, with the undercover agent selling inoperable weapons, including the M-4 assault rifle, to the defendants. The defendants are expected to be arraigned today in United States District Court in Manhattan.

These people will need an experienced federal criminal lawyer to help them with their case. If you or someone you know is facing federal criminal charges, call one of our South Carolina federal criminal lawyers. Our criminal defense lawyers at The Mace Firm would like to speak with you about your case.

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Actress Lindsay Lohan was sent back to jail this week when a judge revoked her probation pending a hearing to determine whether she violated her probation on drunk-driving and jewelry theft convictions. Lohan's bail was set at $100,000 and L.A. County Superior Court Judge Stephanie Sautner told Lohan that if she wanted to "mitigate any further punishment, she should complete 16 hours of community service at the county coroner's office between now and her Nov. 2 probation violation hearing." Earlier this year, Lohan served 35 days house arrest at her home in Venice instead of spending 120 days in jail because her misdemeanor shoplifting conviction was a nonviolent offense.

Judge Sautner reviewed Lohan's probation progress and said Lohan deliberately "blew off" the 360 hours of community service that she had been ordered to complete at the Downtown Women's Center, missing nine appointments and logging only 21 hours. "I thought she could be of value to downtown women's center but obviously not" Saunter said. "She has to do 56 of 60 days [of community service] with six months already gone. How many violations have there been? Probation is a gift not a right." The judge said she never approved of Lohan performing community service with the American Red Cross rather than the women's shelter and those hours won't count toward her sentence. Lohan's criminal defense attorney, Shawn Holley, said the actress "had to earn a living to support herself and her family" and her opportunities are in Europe. However, the Judge also said that jail was no place for Lohan because felons are being sent there by the State.

This isn't the first time Lindsay Lohan has been in trouble with the law, not even close. In the summer of 2010, Lindsay was sentenced to 90 days in jail and 90 days of in-patient rehab when she violated her probation for her DUI conviction. She only ended up serving a portion of her sentence because female, non-violent prisoners only do about 25 percent of their sentence in Los Angeles County. If Lohan would have gone to rehab months prior to her DUI, it could have been avoided. Her criminal defense lawyer stated that "incarceration is [not the best] place for addicts." The prosecutor for this case, Danette Meyers, went to great lengths to show the degree to which Lohan violated her probation by failing to attend weekly alcohol education classes according to the schedule set by Judge Revel.

Criminal charges can really take a toll on you and your family. If you or someone you know has been charged with a crime, call one of the Myrtle Beach criminal defense lawyers at The Mace Firm for a free consultation.

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A Texas appeals court has formally exonerated a man set free last week after he spent nearly 25 years in prison for his wife’s 1986 killing. He was exonerated because DNA tests indicate another man committed the murder. DNA was found this summer during testing on a bloody blue bandanna recovered near the crime scene soon after the killing matched that of a man who authorities say has a criminal record in several states. Morton’s appeal lawyers have accused John Bradley, the local district attorney, of suppressing evidence that would have helped clear Morton. That evidence included a transcript of a police interview indicating that Morton's son said the attacker was not his father. They argue that the district attorney's office withheld a transcript of a conversation between Rita Kirkpatrick, Christine Morton's mother, and a sheriff's investigator in which she told the officer that Morton's 3-year-old son saw a "monster" who was not his father attack and kill his mother.

Morton's appeal attorney also alleged that prosecutors and investigators repeatedly hid non-DNA evidence from Morton’s original defense attorney, including evidence that one of his wife's credit cards was used and one of her checks cashed days after her slaying.

Morton remains on parole and won’t be allowed to leave Texas until the appeals court’s ruling takes effect in 30 days. Morton is very excited to be out of prison, but he also has questions as to why he was wrongfully convicted in the first place. Morton was exonerated due to this new DNA evidence revealed in the case. Morton's appellate lawyers allege that there was much more evidence besides the DNA that could have exonerated Morton from the outset.

If you are found guilty after a trial, you have the right to appeal both your conviction and your sentence. In both state or federal courts there are time limits for filing a "notice to appeal" a conviction or sentence. In state courts, the time limits are usually different in each state. If you pled guilty, you may not be able to appeal your conviction. But you can appeal your sentence if the sentence is illegal or if it was higher than you and the prosecutor agreed to in a plea bargain, and the court agreed to the terms of the bargain before sentencing you. For a sentence to be illegal (which is rare), it has to be higher than that allowed by law.

Winning on an appeal doesn't necessarily mean that your conviction will be thrown out or that you will get out of jail. Although that can happen, typically what will happen is your case will be sent back ("remanded") to the judge or court where you were convicted and/or sentenced. After that, you may:

◦Be given a new trial on the criminal charges, or the chance to negotiate a plea with the prosecution

◦Have a new sentencing hearing, where, usually, the judge or court will fix the sentence so that it's no longer illegal or follows the terms of your plea agreement. In many cases, the court on appeal will give specific instructions to judge about how to fix the sentence

If you or someone you know would like to start the appeals process, call one of the experienced Myrtle Beach appeal lawyers at The Mace Firm for a free consultation.

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Despite the bankruptcy reforms of 2005, bankruptcy filings have remained high over the last three years due to the housing crisis and general economic downturn. With an increase in bankruptcy cases, comes an increase in instances of bankruptcy fraud. Some U.S. Attorney’s Offices have put investigating and prosecuting bankruptcy fraud as a top priority. Celebrities, including baseball great, Lenny Dykstra have recently been indicted on bankruptcy fraud charges.

Investigating Bankruptcy Fraud From the Top Down

The U.S. Department of Justice, which oversees the United States Trustee Program, has devoted pages of their website as well as a special email account for reporting instances of bankruptcy fraud. The federal government actively encourages peers to report bankruptcy fraud whenever possible or suspected. As a result of their fiduciary duty to creditors as well as their payment structure, chapter 7 bankruptcy trustees are encouraged to sniff out potential concealment of assets. Debtors who are found to intentionally hide assets from the bankruptcy court can be sued civilly or have the matter referred to the U.S. Attorney’s Office for criminal prosecution.

Know the System

It is important for bankruptcy debtors to understand how the bankruptcy system works before filing a case. Filing for bankruptcy is not nearly as much about debts as it is about assets. Bankruptcy trustees are paid 25% of all the property they liquidate, meaning their business model depends upon searching for assets.

When you file a bankruptcy case, you swear under oath and penalty of perjury that you have made an accurate and full disclosure as to all your assets and debts. Bankruptcy fraud cases often begin with a trustee realizing that a debtor has not been entirely forthcoming as to required disclosures and filing a civil lawsuit known as an adversary proceeding. An adversary proceeding gives the bankruptcy trustee the opportunity to engage in discovery which can put debtors in an uncomfortable position if they’ve intentionally tried to hide assets. Part of the civil discovery process involves taking depositions (testimony) making it entirely possible for a debtor to incriminate themselves criminally while being deposed.

When to Retain Criminal Counsel

If you’ve filed for bankruptcy and find yourself being accused by a bankruptcy trustee of fraud, especially in the form of concealing assets, contact a criminal defense attorney. Many people believe filing for bankruptcy is nothing more than organizing a few forms. Nothing could be further from the truth. There is more to chapter 7 than reaffirmation agreements and creditors meetings. Even a basic consumer bankruptcy case can quickly become an extremely litigous process in which you, the debtor, can quickly find yourself under oath testifying about matters that could escalate to a criminal level very quickly. Protect your rights and invest in a good criminal defense lawyer if your trustee is accusing you of fraud.

John S. O’Connor is a NC litigator with prior experience as a consumer bankruptcy attorney. The O’Connor Law Firm practices in the areas of mass tort litigation, IRS Tax Help and Real Estate Workouts. The firm represents clients with federal tax debts before the IRS nationwide.

Amanda Knox and her former boyfriend were convicted in 2009 of killing roommate Meredith Kercher in Perugia. Yesterday, the appeals court overturned the conviction and Knox is scheduled to return to the United States this week. The verdict was a severe embarrassment to the Italian justice system. The verdict came after independent forensic investigators criticized police scientific evidence in the original investigation, concluding it was unreliable. The court upheld a conviction against Knox for slander because she had falsely accused Patrick Lumumba of the murders. The court sentenced her to three years in prison which she has already served. Knox's appeals lawyer Carlo Dalla Vedova said his client "would be marked by the case for life and by the memory of her friend Meredith but wanted to get back to normal life."

After all this, the Italian public prosecutor said that he would appeal against the acquittal. The prosecution can't file their appeal until the court publishes their explanation of its decision, which wont be available for a few months. The prosecution plans to appeal to Italy's highest appeals court, the Court of Cassation. The prosecutor mentioned, "if the two who were released yesterday were not the guilty parties, we are left wondering who are the other person or people and for us it feels very much like back to square one." An appeal to Italy's supreme court is open to both sides in a case. But Lyle Kercher, a family member of the victim, noted that the prosecutor would need authorization from his superiors to move forward.

What's next for Amanda Knox? Her stepdad,Chris Mellas, said that their family's priority is to live together normally for a while, "so that she can get used to not being in prison, which is going to take some time". Of course there are rumours of at least one T.V. interview in the United States with a major news network to tell her story. Her family says that Amanda would like to publish a book about her experiences that should reveal more about her personal character. "She'll write, because that's her way of dealing with things," said Mellas. He added, "her experiences since the death of Meredith Kercher have made her pretty wary of journalists."

Without Amanda Knox's appellate attorney, she may have had to spend much much longer in prison for a crime she claims she did not commit. If you or someone you know would like to appeal a criminal conviction, call one of the experienced appellate lawyers at The Mace Firm to help you with your case.

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