White Collar Crimes

March 30, 2009

Boston-Area White Collar Suspect Found Guilty Of Embezzlement

Late 2008 and 2009 (so far) may go down in history as one of the worst times nonprofit organizations have had in terms of thievery. The daily Boston Criminal Law Blog has spent a great deal of time discussing the Bernie Madoff nightmare as well as other white collar fiasco’s which have targeted individuals as well as charities.

Here’s another one for your collection.

Last Tuesday, Andrew M., 33, of Weymouth (hereinafter, the “Defendant”) was sentenced to two years in prison by federal court judge George A. O’Toole. He has been convicted on Massachusetts white collar crimes of stealing $130,202 from a non-profit Boston community health center over a two-year period. Specifically, he pleaded guilty to embezzling the money from Dimock Community Health Center Boston in October, 2008.

After he has served his time in custody, the Defendant will begin a three years of supervised probation.

As you may recall from earlier postings, the crime of embezzlement involves the intentionally mishandling of funds entrusted to you for your own personal gain. In the Defendant’s case, his duties had required him to maintain various financial accounts that included checking, savings, money market and payroll for Dimock. He was also responsible for conducting daily cash transactions for business purposes, maintaining financial reports and cash deposit slips.

Not a bad job for a guy who already had an extensive criminal record.
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March 16, 2009

Embezzlement In Stoneham Results In Guilty Plea

by Altman & Altman

Massachusetts white collar crimes are often investigated without the target of that investigation having any idea that they have come under scrutiny. There are a number of business-related crimes that are prosecuted all the time. Often, it is that Attorney General’s Office, rather than the District Attorney’s Office that performs these investigations and resulting prosecutions. Last Wednesday, one such prosecution came to an end. It involved an alleged embezzlement in Boston’s neighbor, Stoneham.

The matter was not simply prosecuted in the local district court, however. The AG’s Office indicted Patrice M., 51, of Somerville (hereinafter, the “Defendant”) and pursued the matter in Middlesex Superior Court.

The Defendant pleaded guilty to various crimes including False Entries in Corporate Books, Forgery, and Larceny over $250 by Continuous Scheme. The allegations of theft were brought by the Defendant’s former employer, for whom she had worked as the company’s senior accountant.

The Attorney General’s Office began its investigation after the matter was referred by the Defendant’s former employer. Investigators determined that while working as the senior accountant for the Stoneham-based non-profit organization, the Defendant stole $126,000 between June, 2001, through October, 2004. This was apparently done by stealing company checks and making them payable to herself, either by forging the signatures of authorized company officers or using a signature stamp, and then depositing the checks into her personal bank account. She then made false entries on the company’s financial records to conceal the theft.
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March 13, 2009

The Boston Criminal Lawyer Blog Reviews The Madoff Nightmare’s Engagement In Federal Court

by Altman & Altman

Unless you were in media-deprived seclusion yesterday, you have already heard that Bernie Madoff went to court and never went back home. While Bernie adjusts to his new multi-million dollar residence (paid for, like his penthouse apartment, by others), The Boston Criminal Lawyer Blog now reviews the star swindler’s performance as his “15 minutes of fame” seems to near its end.

Don’t misunderstand me…the results of his white collar crime will be with us much longer than said 15 minutes.

What once was considered a well-respected investment professional now had to wear a bulletproof vest to court.

Bernie pleaded guilty yesterday. He has not yet been sentenced. However, in play was the issue of whether or not he would be allowed to stay home pending sentencing. Apparently, he would not have the prosecutors to help him with that issue as everyone says that no deal has been struck between the federal prosecutors and the defense.

So how to try to stay home and get as gentle treatment from the System as possible? Well, if your “golden tongue” helped you outsmart the world for many years, why not go with what works?

So, Bernie made a speech.
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March 6, 2009

The Boston Criminal Lawyer Blog Checks In With The Bernie Madoff Nightmare

by Altman & Altman

It’s been awhile since we checked in on the Bernie Madoff, the latest superstar of the Boston-created ponzi scheme. Once a larger-than-life society figure, he is now reduced to spending his time in his larger-than-life New York apartment, talking to his attorneys and hoping to avoid a smaller-than-life jail cell. As predicted by this daily blog many times, however, the finger of suspicion and blame in this case is too large for just one man.

For example, we have already explored in earlier postings (look under the blog’s White Collar Crimes section to review) the pressures brought upon out-of-state Madoff associates to come up to Boston to answer questions by regulators. We have also witnessed how the regulators themselves have been on and off the hot seat. Then, there have been questions about Madoff’s wife and her habits with the United States Postal service.

Now, as sensitivities to this kind of thing have grown, a Massachusetts man has been accused of stealing $57 million from the descendants of a 19th century industrialist and using the money on personal extravagances, including three private jets.
John D. , 60, of Topsfield (hereinafter, “New Defendant”) was charged in a federal indictment Wednesday of assessing millions in phony fees, transferring company funds to himself and hiding the theft with various schemes, including false financial statements. New Defendant faces up to 20 years in prison, if convicted for the Massachusetts white collar crimes.

The U.S. Attorney’s office said in the indictment that New Defendant had stolen “more than $20 million” from Tenens Corporation, which was created to manage trusts for more than 100 descendants of the late Frederick Ayer Jr., who owned textile mills in Lowell. In a May 2008 lawsuit by Tenens against its auditors, the company estimated the theft at $57 million. Tenens attorney said New Defendant “looted” the family and “joins the likes of disgraced money manager Madoff…The family is heartbroken by [New Defendant’s] personal betrayal, and stunned by the scope and audacity of his criminal acts”.
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February 23, 2009

Debate Rages Over Sex For Money/Secrecy For Cash Case(United States Attorney Goes After Prostitute For Mistreatment Of Boston Gentleman, Part Two)

by Altman & Altman

Federal court in Boston has now seen what could be the final act in the drama of the United States Attorney versus The Hooker Who Would Extort. Michelle Robinson (hereinafter, the “Defendant” ) has pleaded guilty to the Massachusetts white collar crime of extortion in return for a rather unusual sentence.

Due to some unfortunate internet circumstances experienced out of state, this otherwise daily blog posting is the continuation Part One of the story which can be found here. It should have been posted last Thursday. However, in the meantime, the debate has continued to rage.

The alleged facts were laid out in greater detail in Part One. However, to briefly recap, a 60 year-old gentleman, (hereinafter, “John”), wanted what he calls a “last hurrah” with a young woman. He elected the Defendant, an alleged prostitute, to “hurrah” with him. After about 18 months, he ended his “hurrah”. The Defendant responded by informing him that, unless he gave her enough money, she would reveal his identity to the world as having engaged her services. At first, John paid. Then, when she wanted more, he hired a lawyer and made a deal with the federal authorities to blow the whistle on her scheme if they would grant him immunity from prosecution…as well as from identity revelation.

The feds had to jump through hoops in order to accommodate John. However, being as he had former United States Attorney Stern as his lawyer, and as John was an influential business man himself, jumped they did to build the case of wire fraud and threats in interstate communications, making what otherwise would have been a state-prosecuted case about prostitution and extortion.

The subject of the ongoing debate, however, is another hoop the government had to jump through. Namely, they had to keep John’s identity secret .

What to do?
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February 5, 2009

Madoff Associate And Lawyer Come To Boston As Fraud Probe(s) Continue

by Altman & Altman

As the “Madoff Wars”, fought by investigators, attorneys and accountants, rage, score one for lawyers of the Commonwealth. They finally got Robert Jaffe, a crucial witness to Madoff’s operation, to the Hub where he finally spoke to regulators. The result? Boston regulators are ramping up a probe into Bernard Madoff’s alleged $50 billion Ponzi scheme.

As any loyal reader to this daily blog knows, we have been “checking in” with the Madoff Nightmare since the beginning. In our last episode, January 27ths Boston Secretary Of State Tells Madoff Associate To Visit; Attorney Says “Nope”., the Commonwealth and the court were telling him to come up from Florida to talk. Through counsel, his response had been in the negative.
Apparently, he has changed his mind. Yesterday, he met with state investigators. It is not clear whether Jaffe, who went to court last month in a failed bid to block the state’s subpoena, told regulators anything of value, however.

Jaffe, a vice president at Madoff’s Cohmad Securities unit, introduced many alleged Massachusetts scam victims to Madoff. However, the 64-year-old has denied any knowledge of the reputed Ponzi scheme. Rather, Jaffe – the son-in-law of Hub philanthropist Carl Shapiro, who allegedly lost some $300 million in the scam – has said that he and his family are among Madoff’s victims.

“The responsiveness of Mr. Jaffe to (our) subpoena is presently being evaluated,” said State Secretary Galvin, whose office regulates Massachusetts securities sales. However, Galvin did say that his probe has expanded to include other “feeder firms” – companies that lined up Madoff investors.
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January 27, 2009

Boston Secretary Of State Tells Madoff Associate To Visit; Attorney Says “Nope”.

by Altman & Altman

..And now, let’s check in with the Bernard Madoff case, as we periodically do in this daily blog. You remember 70-year-old Bernie…admitted white collar criminal mastermind of the Boston-created Ponzi scheme that ended up bilking about fifty billion dollars from philanthropies, hospitals, rich people, poor people, charities, etc., across the country and, indeed, the globe.

When last we left Bernie, he and his lawyer were trying to prevent the government from convincing the court to have him await trial in jail instead of being in a probationary state in his luxury apartment. Guess what? He won that round.

You may recall I had predicted that, with a catastrophe this large, the finger of accusation would not be satisfied with just one man. Well, those who were supposed to have been regulating people like Bernie have been lounging around in the hot seat. But, now, it is someone else’s turn.

Robert Jaffe was a 64-year-old business associate of Bernie’s. He helped raise millions of dollars for Bernard L Madoff Investment Securities (BMIS) from Boston and Palm Beach’s wealthy social sets. He was vice-president of Cohmad Securities, a brokerage that was 20 per cent owned by Madoff. Cohmad paid commissions to financial advisers who steered cash to Madoff’s fund. He is also the son-in-law of Carl Shapiro, 95, a Boston philanthropist who is said to have lost $545 million invested with Madoff.

There are a number of investigations going on, both criminal and civil, regarding the Madoff Nightmare. Mr. Jaffe is currently being sought for his turn in the limelight. Unfortunately, he does not seem to want to go.
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January 20, 2009

Boston Arrest For Sexual Assault On “T” Train

by Altman & Altman

When I returned to Boston as a defense attorney from New York, where I had been on the other side of the aisle, I discovered a few differences between daily in Beantown and the Apple. One of these was the subway experience. While in New York, the experience could be compared to an excursion through the land of “Wearehostileville”, The “T” was much more calm…much more safe.

Well, that may be changing a bit. For example, this past Friday, a Beverly man was arrested after he allegedly groped a plainclothes Massachusetts Bay Transportation Authority Transit Police detective on a train. As www.universalhub.com/mbta, a site dedicated to The MBTA, puts it, “a plainclothes transit detective put the pinch on a Beverly man after he allegedly put the moves on her on the Blue Line this morning, the MBTA says.”

Jeffrey N., 51, (hereinafter, the “Defendant”), was charged with indecent assault and battery for the rush-hour incident in East Boston around 8:45 a.m. by the transit police’s Anti-Groping Unit at State Street Station. He is scheduled to be arraigned today in Boston Municipal Court, according to MBTA officials

According to T spokesman Joe Pesaturo, the Transit Police Anti-Groping Unit had been monitoring the Blue Line after a passenger complained about groping. Following the highly-publicized April 2008 launch of an anti-sexual harassment campaign, reported incidents of people being indecently assaulted rose from 44 in 2007 to 69 last year, according to the MBTA.
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January 13, 2009

Boston Area Police Officers Approve Of Defense Attorneys When Facing Charges Of White Collar Crimes And Drunk Driving

by Altman & Altman

So far, 2009 has been an active year for certain Boston-area law enforcement officials in terms of legal problems. Take for example Stoughton’s police chief, Manuel, C., 57 (hereinafter, “Defendant 1”), this week appearing beside his defense attorney, standing trial on white collar charges that he tried to use his authority to threaten a former Stoughton businessman in April 2002 to drop a complaint of misconduct against a former police sergeant.

He’s also accused of trying to cover up the sergeant’s attempt to coerce a settlement of a civil claim against the businessman.

Defendant 1 has been on paid leave since he was indicted nearly four years ago. He began trial in Dedham Superior Court yesterday.

Then there is the tale of Brockton Police Officer Daniel M., 31, (hereinafter, “Defendant 2”) who has finally returned to work for the first time since his May 2005 arrest on a rape charge. He is now undergoing retraining before hitting the streets again, Police Chief William Conlon said.

Superior Court Judge Paul Troy is said to have dismissed the rape charge last week after a series of legal proceedings and after the woman making the allegations failed to appear in court at any time. Because the charge was dropped, Defendant 2 will receive back pay from the city. Conlon said the city is now calculating that amount.

Defendant 2 had already served a five-day suspension given by then Police Chief Paul Studenski in connection with the case, Conlon said.
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January 7, 2009

Boston Watches As Bernard Madoff’s Criminal Lawyer Tries To Keep Him Out Of Custody

by Altman & Altman

…Meanwhile, back in the Bernard Madoff (hereinafter, the “Defendant”) drama, Magistrate Judge Ronald L. Ellis awaits written argument from the Defendant’s criminal lawyer as to why his client should not be incarcerated while awaiting trial for his artful recreation of the Boston – originated “Ponzi Scheme”.

The issues involved are an interesting combination of typical bail-related considerations as well as a novel twist to the “danger to the community” approach.

First of all, for those of you just waking up from about a month-long nap, the Defendant was arrested on December 11th on a securities fraud charge after the FBI said he confessed to swindling investors. Authorities say he told his sons he ran a $50 billion Ponzi scheme and had only a few hundred million dollars left.

The results of the fraud have been felt around the globe and across all strata of society.

He has been under house arrest at his multimillion-dollar Manhattan penthouse with an electronic bracelet and 24-hour guard.

But that status may be about to change.

On Monday, prosecutors asked the court for the Defendant’s immediate incarceration, saying he and his wife violated a court order by sending jewelry and antique watches worth more than $1 million to relatives and friends over the holidays. They argued that the action violated a freeze of the Defendant’s assets and demonstrated a danger to investors that he might dissipate assets. In effect, that by dissipating assets, he was continuing his thefts from his victims.

The judge asked lawyers on both sides during a bail hearing Monday to submit arguments this week to help him decide whether the Defendant should be jailed before trial.
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