South Carolina Criminal Lawyer Blog

A bank teller from Sumter, South Carolina was found guilty last week of bank fraud. The teller, Robin Davis, defended the case by telling the jury that the money was placed into her account by God. This is one of the worst defenses to fraud I have ever seen. There should have been a psychological evaluation performed on Ms. Davis. Bank fraud is a specific intent crime and the mens rea required for a conviction cannot be overcome through religion. Bank fraud usually involves so called straw customers opening accounts and transferring non-existent funds from one account to the other. Many times fake identification is used to open the accounts and make deposits. On federal bank fraud indictments, the amount of prison exposure is based on the amount of money fraudulently obtained. Once the million dollar mark is reached, the prison time increases dramatically. Our attorneys defend bank fraud indictments from Miami to Charleston to New York. There is usually a conspiracy count included in the indictment.

Defending bank fraud and conspiracy indictments takes a tremendous amount of time. The criminal defense attorney may have to hire an accountant and a forensic accountant to properly prepare a defense to a federal fraud indictment. Understanding the flow of the monetary transactions is critical to preparing for defending a fraud indictment.

Continue reading "South Carolina Bank Fraud Arrest and Conviction" »

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Economist Al Parish was in the news again after the accounting firm Legare & Bailey agreed to pay 952,000.00 to potential claims from investors. The firm has stated that it was unaware of any investor fraud by Parish, but there were indicators that should have raised "red flags." It is rare for a party that is not indicted to contribute to loses created by one of its clients. Usually, for this to occur, there is a possible threat of prosecution. Many times the lead defendant will also implicate the accounting firm in the fraud prosecution. This sharing of the blame will allow the defendant to cut his time and any possible fine. Enron and its' accounting practices were one of the first large scale examples of this type of federal indictment.

Parish has appealed his sentence arguing that it is to high for a fraud indictment. His appeal will go to the Fourth(4th) Circuit Court of Appeals in Richmond, Virginia. The appeal of his sentence will be based on the Federal Sentencing Guidelines. His prison exposure is based in large part on the amount of money he is alleged to have taken in the fraud scheme. In this case, if he plead guilty to 66 million there is very little the appellate court will change on appeal. His key appellate issue will be to argue that the trial court failed to consider mitigating factors. Our appellate attorneys in South Carolina have over 14 appeals currently docketed with the 4th Circuit Court of Appeals. This Court is one of the more conservative appellate courts, but they do review each appeal in great detail. We have had great success appealing verdicts and trial court rules in Florida, South Carolina and Georgia.

Continue reading "Charleston Man Sentenced for Investor Fraud" »

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In recent news, Anne Hathaway's former boyfriend, Raffaello Follieri, has been arrested in Manhattan, New York on federal criminal charges. He was arrested on conspiracy to commit wire fraud and money laundering. When a person is indicted on counts of wire fraud and conspiracy, it is usually a federal criminal case. Therefore, an excellent federal criminal defense attorney is needed to defend the case.
Mr. Follieri should be able to get a bond on these charges, and will most likely plead not guilty to these federal crimes. Reports have indicated that he has been the subject of an extensive investigation by federal authorities in New York. A good criminal defense lawyer will demand to be notified of all the evidence, reports, and records linking the defendant to the crime.
In order to be convicted of conspiracy, whether it is in New York, the Eastern District of Michigan, the Southern District of Florida or the District of South Carolina, the government must prove that there was an agreement between two or more individuals to participate in some kind of illegal activity. The government will not have to prove that the defendant actually committed wire fraud, but will only have to prove that there was an agreement to commit wire fraud.
If a person in Myrtle Beach, Garden City, Surfside beach or Conway was charged in federal Court with conspiracy to commit wire fraud or money laundering, the case would be heard in District of South Carolin, Florence Division. If a person was charged with conspiracy, wire fraud or money laundering in Charleston, the case would be heard in the District of South Carolina, Charleston Division.
If there is a great deal of evidence linking Mr. Follieri to these charges, he may plead guilty to these charges. If he pleads guilty, he will attend his sentencing hearing in federal court shortly thereafter. Although the sentencing guidelines are advisory pursuant to the landmark case of Booker, the District Court Judge still uses them as a reference. The sentencing guidelines take into consideration a personís criminal history. Mr. Folleri most like has a criminal history of zero, meaning he was never been convicted of a crime. However, if he lies or impedes the ongoing investigation, he may face additional charges of perjury or obstruction of justice. His sentencing guideline range may be enhanced if he also does not fully cooperate with authorities.
Mr. Follieri should hire an attorney as soon as possible, to ensure that he receives proper defense in all aspects of his case.

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In Columbia, South Carolina, 3 defendants were freed on bond after being indicted on mail fraud charges. The 3 defendants (Tony Pough, Tim McQueen, and Joseph Brunson) are each charged with one count of conspiracy to commit mail fraud. The defendants allegedly were presenting an investment plan called "3 Hebrew Boys." The United States Attorney Office in Columbia has stated that the total loss is around $80 million with over 7000 victims. This is the major problem with a mail fraud indictment. The government is most likely over exaggerating the actual loss that may have occurred in this case. The mail fraud count is charged under the conspiracy doctrine. This is a concept that most Americans and Europeans do not understand because it would seem to go against the traditions of our countries.

Under the conspiracy indictment, any company or person that participates or furthers the interest of a crime is guilty of conspiracy to commit the crime. In practical terms, this means that even if you do not know what your are helping someone do or loaning money for, you could be charged as a coconspirator by the federal government. I have defended many clients for mail fraud and each time the amount of loss given by the government is never correct. The amount is always higher than my client was responsible for in the case. The reason that the numbers are always increased is because it increases the amount of exposure to prison time and the amount of asset forfeitures that may occur. One of the best ways to defend a mail fraud indictment is to contest the amount of loss attributable to a client. In this Columbia indictment, there is no way each of these defendants is responsible for this $80 million. The other avenue to pursue in defending this case is the Legally Compelled Mailing Doctrine. This doctrine is a defense to mail fraud.

Lastly, if there was an actual loss of $80 million, there will be superseding indictment filed against these defendants for other charges. These charges will include wire fraud, bank fraud, money laundering and possible tax fraud.

Continue reading ""3 Hebrew Boys"" »

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FBI Agent Joe Gordwin was indicted in Arizona last week for wire fraud, making false statements and witness tampering. The agent was arrested inside the Federal Bureau of Investigation office in Phoenix. Agent Gordwin was having an affair with the wife of a defendant in a robbery case. The relationship was hidden from his FBI supervisors for 3 years. This type of case is not uncommon for many of the governments law enforcement agencies. The agents get so involved in the case that they spend more time with suspects than they do with their own private life. I have defended law enforcement officers for various crimes and they are always treated more harshly than a regular defendant.
The press is reporting that Agent Gordwin is facing up to 285 years in prison. Although I do not know the specifics of the indictment, that number is extremely high for a non violent crime. The United States Attorney does not tolerate any violations of the law by federal agents, unless it is in the best interest of the government. This type of indictment usually occurs in major cities and not in areas like Myrtle Beach or Charleston. I have seen these indictments in New York and Miami several times. This could be attributable to the larger number of agents in these larger cities and the increased number of investigations. Defending an agent is very tricky. Luckily I have a former FBI agent as a key partner in defending police officers and federal agents.

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A father and daughter in Jackson, Mississippi were indicted last week for a mortgage fraud scheme. The indictment included 12 counts of wire fraud and 4 counts of money laundering. There were also another 8 counts related to money laundering offenses. The father and daughter will face a significant amount of time under the United States Sentencing guidelines. The father, Mark Calhoun, was a mortgage broker for Professional Mortgage Consultants Corporation and also worked as the operator of New World Mortgage. New World Mortgage was working with Silver Cross Financial Group LLC. Mark Calhoun's daughter April was employed by Silver Cross Financial Group. The indictment charges Mark Calhoun with preparing loan documents that contained false information and with receiving a fee if the loans were successful.
What the Calhouns probably did not realize? They are going to be held liable for all the money that was obtained in these fraudulent loans. Although the Calhouns did not receive the $8.5 million that was loaned out based on fake documents, they will be held accountable for this amount. Under the Sentencing Guidelines, there will be an increase or upward departure based on the amount of money that was fraudulently obtained. This could increase their prison exposure by many years. The key witnesses against the Calhouns will be the very people they assisted in getting these loans. As I have mentioned many times before, the federal case is centered on the "flip witness." With the fall of the real estate market there are going to be many more mortgage fraud indictments in the coming months. The Federal Bureau of Investigation, the Internal Revenue Service, U.S. Postal Inspection Service, Federal Deposit Insurance Corporation (Inspector General), and the Housing and Urban Development Office will are just some of the federal agencies that will be investigating mortgage fraud cases.
Realtors, mortgage brokers, lenders, and borrowers will all be possible defendants in a mortgage fraud indictment. Depending on the alleged illegal conduct defendants will lose property(forfeiture), be exposed to extreme fines and prison time. It is important to have a defense attorney in a mortgage fraud case that is willing to prepare a timeline of events and go over each and every element of the case. Depending on the alleged victim and the monetary loss, a plea offer from the United States Attorney may include several years of prison. You and your attorney must be ready to go to trial. The real estate market in Miami, Ft. Lauderdale, Ft. Myers, Orlando, Charleston, and Myrtle Beach grew very rapidly in the past 5 years. Now with deals failing, there will be investigations into the basis of the loans and the information provided. We are able to defend individuals and companies in most jurisdictions around the country.

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The South Carolina legislature is in the process of passing new legislation that would require a state license for mortgage lenders. South Carolina and Indiana are the only two states that do not require a license for mortgage lenders. This new law will also provide for criminal penalties. The FBI has previously ranked South Carolina as one of the top ten states for mortgage fraud. Although this new law, The Mortgage Lending Act, will provide state law enforcement with a new tool, there are still federal mortgage laws that can affect mortgage brokers and mortgage lenders for their actions in the past several years. Mortgage fraud will be a target for the United States Attorney in the coming months. The more foreclosures and mortgage defaults that occur, the more the government will be investigating the lending practices of mortgage companies. These mortgage fraud indictments will be hard for a criminal defense attorney to defend. Most juries will not have sympathy for mortgage brokers or lenders. The borrower will be extremely sympathetic to a jury. With the mortgage fraud indictment there may also be the conspiracy count, a possible RICO count, and a wire or mail fraud count depending on how the mortgage was completed. Recent over developed areas will be targets for federal investigations. Myrtle Beach, Charleston, Miami Beach, and Miami have suffered losses with recent real down cycles.
Criminal defense lawyers representing mortgage companies or lenders must be aware of possible forfeiture counts and defenses to fraud. The key witness to this case will be the borrower who is seeking to get out of a substantial debt. Many borrowers over extended during the real estate boom of the past 10 years. The legitimate mortgage broker or mortgage company may be the scapegoat to a troubled borrower. The mortgage broker decisions will be evaluated by what information is provided to banks and lenders. Any false statements on mortgage or loan documents that a broker or mortgage company was aware of or had a duty to investigate will form the basis for an investigation. Once major lenders begin complaining about false statements they were provided in the lending process, the mail or wire fraud indictment becomes a real possibility.
A Federal Court in Atlanta sentenced five defendants to federal prison for mortgage fraud in April of this year. One defendant was from Hilton Head, South Carolina. The indictment charged bank fraud, wire fraud, conspiracy and money laundering. The group used inflated mortgage loans to unqualified straw borrowers. These unqualified borrowers were paid hundreds of thousands of dollars for their participation in the fraud. The use of false qualifying information is key to these indictments. The lending information passed on to the lending company will be the star exhibit in the trial. This case is just the beginning of the United States Attorney aggressively prosecuting mortgage fraud cases. Just as when Enron cost the public millions of dollars, the more the real estate market hurts the country, the more indictments will be served. Mortgage fraud and wire fraud defenses can be presented by prior actions of the defendants in their lending process and the very hard defense of lack of knowledge. Federal case law provides for a deliberate ignorance instruction. This instruction allows the prosecutor to tell the jury that a defendant charged with fraud intentionally ignored facts that would have lead a normal person to question the information being provided. In other words a mortgage broker or company would need to almost polygraph the borrower on the information they provide on the loan. If the borrower comes in with fake documents, false tax returns and other documents to support the loan, the mortgage broker may still be held accountable. I have been the defense lawyer for individuals charged with fraud and know very well the difficulties with fighting the government on these charges

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