Federal Crime

Published on: January 13, 2014

Pinellas County Federal Criminal Defense Lawyer :: Largo Woman Receives Four Year Sentence for Tax and Student Loan Fraud

by Whittel & Melton, LLC

A 44-year-old Largo woman was sentenced to four years in federal prison on Thursday for defrauding student financial aid and filing false claims with the Internal Revenue Service. Additionally, the Court also ordered her to pay restitution to the IRS, in the amount of $110,971, and to the Federal Stafford Loan Program, in the amount of $22,350.

The woman pleaded guilty to the charges against her on October 10, 2013.
Court documents indicate that the woman had previously obtained several student loans with outstanding balances, then had the balances dismissed due to a disability. She apparently managed to procure additional student loans by submitting forged physician forms stating that her condition had improved, and agreeing to repay her past loan balances.

The woman then applied for further student loans to attend Walden University, which court documents show she did not attend. She received more than $27,000 in loans, from which a total of $22,350 was disbursed to her.

In connection with the IRS, the woman apparently established four fictitious Florida corporations and then filed corporate tax returns claiming more than $500,000 in refundable tax credits. She opened bank accounts in the names of the corporations, where the refunds were directly deposited.

According to reports, the woman used the refunded tax credits for personal expenses.
She admitted that these corporations were created just to file false corporate tax returns and were not legit businesses.

The Internal Revenue Service, Criminal Investigation and the U.S. Department of Education and the Office of Inspector General all investigated this case.

The Internal Revenue Service, or IRS, has seemingly unlimited resources at its disposal when it comes to investigating tax crimes. These investigations often start out as civil matters, but can quickly intensify to criminal matters based upon the evidence they obtain. Tax fraud can legally be defined as many different things, including reporting false income, not disclosing certain assets, reporting more deductions than you are actually owed and even changing personal expenses to be represented as business expenses.

Published on: December 30, 2013

Duval County Criminal Defense Lawyer :: Jacksonville Insurance Salesman Pleads Guilty to 15-Year Ponzi Scheme

by Whittel & Melton, LLC

A Jacksonville insurance salesman pleaded guilty to a 15-year scam in federal court Friday. Reports suggest that more than 50 people were bilked out of nearly $5 million.

Prosecutors claim that the investments the man promised large returns on were actually a Ponzi scheme that he used to buy commercial property, luxury cars and other items.

The 49-year-old man faces up to 80 years in prison, a fine of over $1 million as well as paying restitution to the victims involved in all 34 counts of the federal grand indictment.

Court records indicate that many of the victims were Duval County School Board employees who invested money from their Deferred Retirement Option Program, also known as DROP. There were also out of state investors in Georgia and North Carolina.

The man pleaded guilty to two counts of mail fraud, one count of wire fraud and one count of money laundering. All other charges were dropped.

The man remains free pending a sentencing hearing, which has yet to be scheduled.

Court records claim the scheme started in 1996 when the man set up a shell corporation, Abaco Securities International, in the Turks and Caicos Islands, British West Indies, as a fake offshore investment company. The man was listed as the director of the company, but the only location was a post office. The man solicited his victims to invest their retirement savings in an investment product he described as ASI and promised interest rates sometimes exceeding 12 percent.

While some of the money was sent to a financial services company where the man had told his investors the retirement money would be invested, prosecutors claim the majority of the funds were deposited into SunTrust accounts set up by the man and then stolen by him. This apparently lasted until 2011.

A Ponzi scheme, also known as a business or investment pyramid, is defined as an investment plan where early investors are paid with the investments of later investors. While the plan may have started out legitimately, with everyone intention of delivering appropriate funds to investors, somewhere down the line the manager of the funds found that the investment strategy could not meet its goals, and in order to meet the demands of initial investors, used the money from later investors to pay early backers.

Due to the large sums of money involved in Ponzi schemes, these criminal cases are usually tried in federal court. They often include charges of mail fraud, wire fraud and money laundering. When Ponzi schemes are uncovered and a person faces criminal charges in federal court, it is not surprising to find out that law enforcement has been investigating them for months, possibly for a year or more.

Published on: December 13, 2013

Pinellas County Federal Criminal Defense Lawyer :: St. Pete Property Owner Facing Criminal Charges for Failing to Notify Tenants of Lead Paint

by Whittel & Melton, LLC

A 56-year-old St. Petersburg property owner was recently indicted on charges that he failed to make tenants aware of the dangers of lead paint in their apartments, according to the U.S. Attorney’s Office in Tampa.

The Tierra Verde man has been charged with four counts of failing to provide approved Environmental Protection Agency lead paint warning notices and brochures to his tenants and two counts of alteration or falsification of records in a federal investigation.

Federal investigators became suspicious of the man after they allegedly found lead in the paint and soil at a property just west of Crescent Lake during a renovation in 2011.

The man apparently owns the property under his management corporations. According to federal EPA guidelines, the landlord must make sure tenants are aware of all possible dangers linked to lead paint before leasing.

According to the indictment, the man backdated disclosure forms when the EPA began investigating him in order to delay the investigation.

If convicted, the man could serve a maximum of one year in prison for each count of failing to provide a warning notice and up to 20 years for each count of falsification of records.

St. Petersburg officials claim the man is well known in the area because his nuisance issues have resulted in thousands of dollars in fines for various properties he owns.

Altering, deleting, destroying, erasing or modifying any business record with the intent to defraud can result in falsification of records charges. These charges are quite serious and can lead to jail time, fines and other penalties. If you are under investigation for or believe that you will be charged with alteration or falsification of records in a federal investigation, it is in your best interests to speak with a criminal defense lawyer as soon as possible.

Published on: October 10, 2013

Boca Raton lawyer receives 3-year sentence for obstruction, money laundering and witness tampering relating to Rothstein Ponzi scheme

by Whittel & Melton, LLC

Add another attorney to the collateral damage of Scott Rothstein’s $1.4 billion Ponzi scheme.

The Sun Sentinel is reporting that a Palm Beach County lawyer and former counsel to Kim Rothstein received a three-year prison sentence for plotting to help her conceal more than $1 million in jewelry she hid from federal authorities, as they seized her husband’s assets.
Charged conspiring to commit money laundering, obstruct justice and witness tampering, Rothstein’s attorney faced a maximum penalty of five years in prison.

After pleading guilty to these charges in January, the Boca Raton attorney was disbarred. His 36-month imprisonment will be followed by two years of supervised release. As part of his plea deal, the attorney agreed to forfeit $515,000 to federal authorities — including compensation he received for legal fees from Kim Rothstein, as well as four expensive pens and jeweled cuff links.

According to reports, the attorney’s lapse in judgment was a result of viewing Rothstein as a friend and not as a client. When pleading to the judge for a minimal sentence for her client, his attorney stated that “he saw this woman drowning and he tried to help her…she was losing everything in the world through no fault of her own. … He handled this horribly, and what he did was absolutely wrong.”

Published on: October 3, 2013

Clay County Criminal Defense Attorney :: YMCA Employee Accused of Receiving Child Porn via Internet

by Whittel & Melton, LLC

A 57-year-old Clay County man who taught sports part-time to children at a Clay County YMCA was arrested last month on a federal charge of receiving child pornography over the Internet, according to the U.S. Attorney’s Office.

According to a statement from a YMCA spokesman, the man has been suspended indefinitely from his job as a gymnasium monitor. His duties consisted of officiating sports games from time to time. He has been at the facility since 2005.

The YMCA claims a background check was conducted on the man as well as thorough screenings into any criminal history. No suspicious criminal activity was every found and no reports of mistrustful activity was ever mentioned during his years as a Y employee, according to the YMCA.

Authorities executed a federal search warrant at the man’s home where they allegedly found child porn on his computer. He apparently told investigators a file-sharing program had been used to download and share the images.

In recent years, federal investigators have started to seriously crack down on child pornography. In an effort to catch as many alleged distributors of child porn as possible, it is common for federal law enforcement agents to pose online in chat rooms and other web sites as suppliers and drum up conversations with unsuspecting individuals to see if they are interested in sending or receiving child porn via a file sharing program or through email.

Published on: September 10, 2013

Palm Beach County Criminal Defense Attorney :: Suburban Lake Worth Dentist Accused of Performing Root Canals without a License

by Whittel & Melton, LLC

A suburban Lake Worth woman who was previously arrested for practicing dentistry without a license was arrested last week on similar allegations, according to authorities.

As of last week, she was being held at the Palm Beach County Jail with no bail.

The 34-year-old doctor was arrested in April on charges that she prescribed painkillers despite having a suspended license. According to Palm Beach County court records, she was scheduled to go to trial later this month.

The woman is the owner of Terrific Smiles, with offices in West Pam Beach and North Palm Beach.

The state Department of Health suspended the woman’s license in October, claiming that she posed a danger to the public with her previous behavior.

However, deputies recently learned that the woman was still practicing and according to patients, apparently performed substandard work.

According to a sheriff’s arrest report, a woman claims the former doctor performed several root canals on her in March and April. The woman told police she suffered pain and was not given antibiotic medications for the pain following the surgeries.

The woman said she consulted other dentists, who advised that the root canals were not properly performed and would need to be done again.

According to investigators, she paid the woman $8,000 for the work.
Investigators apparently spoke to another patient who said he received dental care from the woman during May and June. The man claims the woman requested a cash payment from him though he had dental insurance.

He allegedly paid $3,141 for a root canal procedure.

The man told investigators that after experiencing ongoing pain he was referred by another dentist to a specialist. According to the report, the specialty dentist concluded that the root canals were not performed properly and advised the man to request a refund.

The man alleges that the woman did not return his calls.

Detectives have reason to believe there are additional victims, but no other patients have come forward at this time.

Published on: June 29, 2012

Port Charlotte Man Arrested for Posting Bomb Threat on Facebook :: Whittel & Melton

by Whittel & Melton, LLC

The Charlotte County Sheriff’s office arrested a 29-year-old Port Charlotte man Wednesday after he allegedly sent a comment to his “friends” alerting them of a bomb at Town Center Mall.

One of the man’s “friends” called CCSO immediately. Deputies and Charlotte County Fire/EMS went to the mall and began evacuating employees and shoppers right away.

Detectives went to the man’s home and advised him they were informed about his comment on Facebook mentioning a bomb in the mall. The man allegedly denied posting the comment and said he was not currently using his Facebook account.

The man apparently allowed detectives into his home. Detectives claim they found the man’s computer on with Facebook running and could see the man’s post about the bomb on the screen.

Detectives told the man they needed to know where the bomb was in order to protect people from injury. The man allegedly told detectives there was no bomb and that he posted the comment because he was suffering from stress and depression since he could not find a job.

The man was arrested for felony False Bomb Threat. He was taken to the Charlotte County Jail with bail set at $5,000. Mall management and security were notified of the facts and allowed employees and shoppers back in the mall just before 1 p.m.

The state of Florida takes bomb threats and false statements regarding explosive devices quite seriously. Knowingly making a false bomb threat is classified as a felony in Florida. A conviction can carry a lengthy prison sentence and hefty fines. However, being arrested or charged with this crime does not mean your case is hopeless. The Florida Criminal Defense Lawyers at Whittel & Melton can provide you with the aggressive legal representation needed to negotiate and defend these charges in order to receive a positive resolution.

If you are charged with making a bomb threat, it is essential to speak with a criminal defense lawyer as soon as possible. The Florida Criminal Defense Lawyers at Whittel & Melton can assist you with telling your side of the story. We can explore the facts surrounding your arrest and examine whether your Miranda Rights were read to you, whether the police conducted any illegal search and seizure and whether any of your rights were violated during questioning. By thoroughly investigating the circumstances and facts surrounding your case, we may be able to get your charges reduced or dismissed.

Published on: January 3, 2012

Florida Drug Crimes Defense Lawyers Whittel & Melton :: Ex-Chicago Bears WR Sam Hurd Released from Federal Jail after Posting $100K Cash Bond

by Whittel & Melton, LLC

Sam Hurd was released from the Metropolitan Correctional Center on Dec. 16 after posting $100,000 cash bail, but the former Bears receiver will now have to look for a job elsewhere.

The team decided to cut Hurd on Dec. 16 after reviewing the drug allegations stacked against him.

Hurd was arrested on Dec. 14 outside of a Chicago steakhouse. He is accused of accepting a kilo of cocaine from an undercover federal agent masquerading as a drug dealer. He is also accused of attempting to set up a major drug network.

Police claim that Hurd told the undercover agent that he wished to purchase five to 10 kilos of cocaine and 1,000 pounds of marijuana a week to sell in Chicago and that he was supposedly moving four kilos of cocaine a week.

After appearing in court and posting bond, Hurd’s attorney did not respond to any of the specific allegations in the criminal complaint, but did address the rumors that Hurd was supplying drugs to various NFL players as 100 percent false.

Charges against Hurd have been filed in Texas, which is where his next court date will be. While no date is set as of yet, it should be scheduled within the next 30 days, after a grand jury hears the case.

A former federal prosecutor shared that the case against Hurd appears to be solid based off the criminal complaint, but other factors could play a role in how the case shapes up, including what information Hurd can offer prosecutors build a case against others.

It is not mentioned whether Hurd will attempt to get picked up by another team as he fights the drug case with the potential to put him in jail for 40 years.

The most serious drug crime in the state of Florida, whether prosecuted in state or federal court, is drug trafficking. Under Florida Statutes, a person in possession of less than a kilo of cocaine can be charged with drug trafficking. In fact, the only difference between cocaine possession and cocaine trafficking boils down to the amount of cocaine seized during the time of arrest. Individuals could face anywhere from three to 25 years in prison for drug charges in Florida, contingent upon the type of drug and the amount seized.

In Florida, oftentimes drug trafficking charges stem from undercover sting operations. Depending on how initial contact was made between the accused and an undercover officer as well as how the drug evidence was seized, possible trafficking charges could be dropped. Undercover drug busts must follow clear-cut procedures and drug charges can be dismissed if law enforcement officers neglected to acquire an appropriate warrant, used an illegal wiretap or failed to link the accused to the alleged drugs due to scarce evidence.

Despite the allegations surrounding your drug arrest and what federal agencies may be involved, the Florida Drug Crimes Defense Lawyers at Whittel & Melton may be able to assist you in combatting state or federal drug charges. If your charges cannot be dismissed, we prepare for trial and in the meantime will negotiate with prosecutors for the least amount of prison time or even request a suspended or alternative sentence. Many times in drug cases, the State’s case may fall under a gray area and our attorneys can pick out the strengths and weaknesses of the prosecution’s case to better defend you.

Published on: November 18, 2011

Tampa Bank Robbery Defense Attorneys Whittel & Melton :: Amateur Comedian Accused of Robbing Local SunTrust Bank Twice

by Whittel & Melton, LLC

Officials with the Hillsborough County Sheriff’s Office have arrested a Citrus Park, Florida amateur comedian for allegedly robbing a SunTrust Bank, twice.

According to police, the man allegedly entered the SunTrust Bank on Tuesday, claimed he had an explosive device, demanded money and fled the scene. On Thursday, detectives said the same man targeted the bank again, requesting money from the same teller.

Witnesses supposedly saw the man exit the bank and gave a description of his physical being and car to authorities.

The man was supposedly known to investigators for past events, and was picked up, positively identified and later arrested.

The man has supposedly performed at open mic nights for comedy clubs throughout Tampa. He has performed at a comedy club in Carrollwood, FL several times this year.

The man faces numerous charges, including robbery and possession of cocaine. He has supposedly been arrested before for similar charges.

Robbery in the state of Florida is considered the intentional and unlawful taking of money or property from another person while endorsing threats, violence, force or assault. The crime of robbery is a second degree felony punishable by up to 15 years in prison, up to 15 years of probation and a maximum of $10,000 in fines. However, since most banks are federally insured, bank robbery can be amplified to a federal offense. This means that if you are charged with bank robbery, not only are you facing a possible Class A, B or C felony you must also face federal prosecution, which can be quite aggressive considering the government’s resources. The type of felony you are charged with depends on whether weapons or violence was inflicted, if anyone was injured and how much money was taken. If a weapon was used, the penalties for this crime are often enhanced, but even if there was no use of weapon in the robbery, a conviction can carry a prison sentence of anywhere between one and 10 years.

Today’s technology has made evidence against bank robberies, including credit unions and savings and loans associations, much stronger due to several factors:

• High-technology security systems
• Exploding dye packs located in the money
• Locator devices
• Marked bills
• Silent alarms
Charges of bank robbery can damage you and your family’s life in more ways than one. Not only do you run the risk of being prosecuted by the Federal Bureau of Investigation, but you ultimately face the possibility of hefty prison terms, probation, parole, large fines and a record that could limit all aspects of your future life. The Florida Bank Robbery Defense Attorneys at Whittel & Melton can discuss your best line of defense to combat federal charges and help you avoid a conviction with potential prison time.