South Carolina Criminal Lawyer Blog

The Federal Bureau of Investigation in Columbia has confirmed that former state representative, Robert Kohn, has been convicted of insurance fraud. Kohn worked as an insurance consultant and assisted companies on worker's compensation claims. Between the years of 2002 and 2004, Kohn helped a company by the name of Knight's Services prepare its annual insurance submissions. When submitting the information to Companion Property & Casualty Insurance Company, the payroll figures were exaggerated in order to avoid higher premiums. There was approximately $370,000 in premiums that both the company and Kohn saved. Kohn could face up to $250,000 in fines and a term of imprisonment of twenty (20) years. He is currently awaiting sentencing.

When an individual is being tried or has been convicted of fraud, the penalties are usually quite substantial depending on the amount of currency involved and the extensiveness of the conspiracy. It is important to hire a criminal defense lawyer that will be able to protect your best interests and advise you on any precautions you may need to take. Until you have spoken with an attorney knowledgeable in the field of fraud, you should not speak with anyone about the case. Our criminal defense lawyers in South Carolina are very experienced with federal indictments and can help you with your case.

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According to the Associated Press, federal authorities have arrested thirty-six individuals from five states who are allegedly involved in a Medicare scheme that totals approximately $251 million. This is reported as "the largest Medicare bust ever." Most of the suspects were arrested in Miami, Florida, which is considered the center for most of the medicare fraud investigations. There have been ninety-four (94) suspects indicted in this conspiracy and it is anticipated that there may be several more. There are also doctors and nurses that are accused with being involved in billing Medicare for unnecessary equipment, therapy and treatments.

There were more than 360 agents participating in these arrests and several have provided details relating to the indictment. Investigators have confirmed that patients were being recruited in the schemes, so that the information submitted to Medicare appeared reliable. These individuals are paid for allowing the companies to use their name and are never provided any of the services that are submitted to Medicare. They were even given additional payments for recruiting other members. As a result, researchers report that this type of crime has expanded and become even more widespread.

Since this indictment includes several suspects, the government will likely try to offer plea agreements to the lower level individuals charged in the conspiracy in exchange for information relating to the higher level offenders. Due to the large amount of defendants involved in this case, many will probably attempt to cooperate in order to receive a lesser term. This is the reason it is important to hire an experienced medicare fraud attorney to protect your best interests and determine the options that are available within your case. Our fraud lawyers in Miami, Florida are knowledgeable about these types of offenses and can assist if you are being charged with a crime.

Continue reading "Medicare Fraud Attorney" »

The F.B.I. has settled a criminal and civil case against a large pharmaceutical company that marketed specific drugs to doctors and paid the doctors to push those drugs. The company promoted the use of the drugs for medical conditions that the F.D.A. had not approved them for other uses and doses. This is know as off label marketing. This is illegal even if there are no side effects from the use of the drug. The company agreed to pay $2.3 billion to settle the criminal and civil violations. This is a classic example of how the criminal justice system works. No one is going to jail. Someone made a decision at this company to allow this program to go forward, that person is not indicted and is not in jail. The company was able to buy its way out of trouble and out of breaking the law. No matter how great the federal defense lawyer, this is not the case where the prosecutor is even looking to put someone in jail. This sends a message to other drug manufacturers that you can try any of these tricks and the worst that happens is you are fined.
Some of these drug were provided through Medicare and Medicaid, but still no one goes to jail for health care fraud. The government waits until they can get a doctor or a small provider that is over billing the government. The doctor is a small target compared to the larger hospitals that continually over bill the federal government for services. The small lawyer must get a good defense attorney with experience in federal court and defending fraud cases. There is no time to waste in preparing to fight the federal government.

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South Carolina law enforcement is now investigating the Democratic senatorial candidate Alvin Greene. Greene won the primary for the Democratic party earlier this year. There has been much speculation regarding where Mr. Greene allocated the money he used to pay for his application for the senate race. Mr. Greene is currently facing criminal charges in South Carolina state court. What can be done to Greene based on this investigation? Greene will be investigated by local law enforcement agencies (South Carolina Law Enforcement Division; SLED) and possibly the local sheriff's department. These agencies have the power to subpoena Greene's bank account information in order to determine if someone gave Greene the money to enter the senate race. The real danger for Greene will come from any statements he makes during the investigation.
If Greene decides to speak with the investigators and he lies, he will have opened the door to a federal indictment. A state charge of fraud would most likely not mean that Greene would be facing any incarceration. However, if Greene were indicted by the United States Justice Department, he would most certainly be exposed to some type of incarceration. Greene needs to have an experienced federal defense attorney representing him during the pendency of this investigation. Any misrepresentation can be reexamined by the government to form a basis of a fraud indictment.
Any federal indictment will end Greene's run for the senate. Several other candidates have now appeared to run for this senate seat in anticipation that Greene will be charged with either election fraud or fraud in his application for a public defender related to his state obscenity charge.

Continue reading "Alvin Greene Invetigation" »

According to the Federal Bureau of Investigation in Miami, Florida, Ernesto Angel Montaner was federally indicted on April 22, 2010 in the Southern District of Florida for conspiracy charges pertaining to health care fraud, in violation of 18 U.S.C. § 1349 and § 1347. Mr. Montaner’s son was also allegedly involved in the conspiracy. The indictment claims that the defendants were operating several physical and occupation (PT/OT) clinics in the Miami-Dade area. It is further speculated that Mr. Montaner would make payments to those who had recruited patients for the clinics. He supposedly made these cash payments to an undercover officer posing as a recruiter in exchange for information regarding Medicare beneficiaries. The indictment states that the conspirators paid these bribes without determining the Medicare beneficiaries’ health condition and whether the services of the physical and occupation clinics was needed. It is alleged that they submitted more than $2.5 million worth of false claims to Medicare.

There are seven (7) counts in the federal indictment associated with the health care fraud charge and the defendants are subject to a considerable amount of time. This type of case is considered to be a white collar crime because it is an economically motivated and committed within the corporate market. When these individuals involved in this case are prosecuted, they will not only face a term of imprisonment, but also significant fines. If a person is charged in a case relating to fraud, it is important to hire an experienced federal defense attorney to protect their best interests. It is frightening to be indicted in the federal system and having a good lawyer on your side to explain your options will make all the difference in your case.

Continue reading "Fraud - Federal Indictment" »

In these difficult economic times, more americans have been filing for bankruptcy under Chapter 7 and Chapter 11 compared to previous years. As a result, the government has increased the number of bankruptcy fraud indictments in South Carolina. Bankruptcy fraud is covered in 18 U.S.C. section 152 and includes a variety of offense conduct, including concealment of assets, lying during a bankruptcy proceeding, false claims, knowingly receiving property from the debtor and omission of assets on a bankruptcy petition.

The corresponding United States Sentencing Guideline is 2B1.1(b). Under this guideline, the amount of loss is an important sentencing factor because it can greatly increase a defendant's base offense level. For example, the base offense level for bankruptcy fraud is a level 6, however, a ten-level increase is applied if the amount of loss is more than $120,000.00. The amount of loss is the amount of loss caused by the fraud. A federal defense attorney will want to calculate this figure as early as possible in the case so that it can be decreased or capped at a certain amount. When calculating an offender's amount of loss, the sentencing court considers the amount of debt discharged or the amount that was intended to be discharged, as well as the value of any concealed or omitted assets from the bankruptcy proceedings. In certain circumstances, the district court may also consider intended loss when calculating this figure.

Other sentencing enhancements for bankruptcy fraud include the use of sophisticated means, multiple victims affected by the fraud and misrepresentation during the course of a bankruptcy proceeding, which is almost always applied in these types of cases. If the offense involved 10 or more victims, a two-level enhancement is applied to a defendant's base offense level. Victims may include creditors. If a defendant uses sophisticated means to perpetrate the fraud, another two-level increase is applied during the sentencing hearing. Sophisticated means is especially complex acts or methods which assist in concealing the offense conduct. This includes using offshore accounts or shell corporations as well as setting up fictitious entities.

A federal attorney will object to these enhancements which are listed in a offender's pre-sentence investigation report. A probation officer prepares the pre-sentence investigation report, but the ultimate decision to apply these enhancements rests with the District Court judge. Therefore, an experienced federal lawyer will file written objections to these enhancements in order to save their clients substantial prison time at the sentencing.

Continue reading "Indictments for Bankruptcy Fraud in South Carolina " »

The Federal Bureau of Investigation has several programs in South Carolina that they have instituted to combat white collar crime. Their white collar crime program covers a variety of related federal offenses.

The following are examples of what is covered by the White Collare Crime Program:
Insurance Fraud
Money Laundering (Usually Related to Drugs)
Financial Institution Fraud (FIF, i.e. Bank Fraud)
Telemarketing Fraud (Especially against Seniors)
Environmental Crimes (Dumping and Polution)
Public Corruption (Bribes)
Health Care Fraud (Medicare Fraud)(Medical Over Billing)
Bankruptcy Crimes (Usually Business Related)
Securities Fraud (Mortgage Fraud could be included here)

These criminal investigations in South Carolina are prosecuted by the United States Attorney in South Carolina. Walter Wilkins is the current United States Attorney in South Carolina. There is also a Federal Public Defender in South Carolina. Parks Smalls is the Federal Defender for South Carolina. The FBI has field offices in most of the cities in South Carolina. The FBI has offices in Myrtle Beach, Florence, Charleston, Columbia (Main Office), Greenville, Aiken and several other smaller cities in South Carolina.

Most of the high profile cases are listed on the FBI's website and the United States Attorney website for South Carolina. These press releases give the public a view as to what is being investigated and prosecuted by the government. All of these listed investigations have been indicted by the government. Defendants are indicted in the region in which the government feels the crime has been committed. Our office defends federal indictments all across the country. Defending a federal indictment takes experience, hard work and a willingness to communicate with a client about the government and its policies on white collar crime. A good Federal Defense Attorney in Columbia can help minimize your exposure to a federal indictment.

Continue reading "FBI and White Collar Crime in South Carolina" »

The Charleston Post Courier is reporting that economist Al Parish was sentenced to 10 years in state prison this week. This means that Parish would mostly likely serve no more than 4 years on this case. The real sentence is his pending 24 year federal sentence. Parish will not be able to be released on parole from the federal sentence. Parish had claimed amnesia when he realized the broad exposure he faced in the federal indictment for fraud.
Parish received a large prison sentence on his federal fraud indictment in Charleston because of the amount of money he is alleged to have taken. Fraud charges with very little monetary exposure will yeld a small prison sentence. Parish's sentencing guidelines increased dramatically based on the large amount of money he defrauded his client's out of over the years.
A federal fraud indictment usually involves millions of dolllars lost investments. The United States Attorney will not usually seek an indictment for a fraud case with very little money being taken. Under the United States Sentencing Guidelines, a defendant would not face much prison time for fraud if very little money is taken. A defendant could face more prison time in State Court on many fraud charges.

Continue reading "Parish Give 10 Years on State Fraud Charges " »

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" »

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" »

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.

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.

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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.

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.

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