Fraud

Published on: February 18, 2013

Florida Identity Theft Attorney :: Feds Focused on Florida as a Hotbed for Tax Identity Theft

by Whittel & Melton, LLC

Investigative news reports are claiming that Florida is the new hotbed for tax identity fraud in the United States, concentrated mostly in Tampa and Miami.

According to the report, Miami has 46 times the per-capita rate of false tax refund claims than the rest of the country, and 70 times the national average in terms of dollars.

Florida’s high proportion of older residents, who may be more vulnerable to fraud, may be one reason for the high levels of fraud in the state. Victims in Florida have varied from hospital patients, to Holocaust survivors at an elderly Jewish community center, as well as active duty military serving overseas.

Published on: October 26, 2012

Marion County School System Employee Accused of Embezzling Funds from School Collections :: Whittel & Melton

by Whittel & Melton, LLC

Ocala, Florida – A 38-year-old veteran employee of the Marion County Public School system was arrested and charged with organized fraud Wednesday. She was taken to the Marion County Jail and released about 24 hours later on a bond of $2,000.

The woman is on paid administrative leave while an investigation is conducted. She is a finance clerk in business services and has worked for the school system for 16 years.

An Ocala police officer was called to the district’s Internal Auditing Division on Oct. 5 to take a report about possible embezzlement. School system officials had apparently conducted an audit on money collected from various school collections and found that $15,758.07 was missing.

School officials told police that the woman had been “flagged” for an incident in July after an error was found related to the account she was in charge of.

Reports indicate that an audit was performed on the various collections the woman received from July 1 to Sept. 21, which allegedly revealed the amount that was missing. School officials claim the woman was given the money from collections to deposit the checks or cash. She allegedly deposited the checks, but not the cash.

The case was passed along to a detective to further investigate the claims. At the conclusion of his investigation, the woman was arrested and taken into custody. She apparently refused to speak to the detective regarding the accusations against her.

The state of Florida tends to prosecute those accused of fraud-related offenses rather harshly. Prosecutors devote a lot of time and resources to white collar crimes, like embezzlement. Typically these crimes involve complex financial transactions, and you may be under investigation without even knowing it. In fact, it could take months for the prosecution to build its case against you before making an arrest and filing charges. As soon as you know you are under investigation for embezzlement you should consult with a white collar crimes defense lawyer. Every white collar case is unique, so it is essential to the outcome of your case to make sure you are properly represented as early on as possible.

Published on: July 30, 2012

Juror’s Facebook Comments Lead to Murder Case Mistrial :: Whittel & Melton

by Whittel & Melton, LLC

A Canadian judge declared a mistrial Wednesday morning in the first-degree murder trial of a man accused of killing his ex-girlfriend due to comments posted by one of the juror’s on a Facebook site.

The man’s family apparently visited some Facebook pages after the 12-person jury was selected and cross-referenced the names of the jurors with comments made on the sites.

They discovered that juror No. 12 was a member of a group that disliked the suspect and had posted comments on the site.

The family immediately alerted the Crown about the juror’s social media history.

The judge claims he had no choice but to declare a mistrial, seeing that the woman could have tainted the rest of the jury.

The misuse of social media outlets such as Twitter and Facebook by jurors during trials can lead to the overturning of court rulings, convictions and as this case shows, mistrials. Using social media sites has become an everyday task to many people, and continued use during a trial can be very tempting to jurors. With most people owning smartphones, it’s even easier now for jurors to violate the rules of banning them from chatting about the trial. It’s hard to control the use of smartphones as jurors are free to use these devices once outside the courtroom.

According to a Pew Research Center survey, nearly 66 percent of adult Internet users use social median platforms. The increasing popularity of sites like Facebook and Twitter make it extremely hard to regulate a juror’s conduct via social media sites during a trial. Social media use by jurors has become a more recent problem and attorneys and judges are wrestling with how to deal with the problem as well as how to stop it from happening in the future.

Florida is one of 20 states that explicitly instruct jurors to steer clear of newspaper and television reports on the case, as well as stay away from social media outlets like Twitter, Facebook, Google and e-mail. Jurors are expected to decide the outcome of a case based solely on the facts presented at trial. In fact, courts can hand out harsh punishments to jurors caught using social media sites during a trial. Recently, a Florida court held a juror in contempt and sentenced him to three days in jail after he apparently used Facebook to ‘friend’ a defendant in a personal injury case.

Published on: April 3, 2012

Florida Credit Card Fraud Defense Attorneys Whittel & Melton :: Volunteer Firefighter Accused of Using an Agency Fuel Credit Card to Purchase Gas for Himself and Friends

by Whittel & Melton, LLC

A volunteer firefighter with the Columbia County Fire Department was arrested on March 7 for allegedly using an agency fuel credit card to pay for more than $7,500 worth of gas for his personal vehicle and his friends’ vehicles.

The 19-year-old Lake City, Florida man was charged with grand theft and fraudulent use of a credit card.

According to the Columbia County Sheriff’s Office, 181 fraudulent transactions were made using the fuel card, which was apparently reported stolen from a fire department vehicle on March 2 after a number of charges were allegedly made on the card.

Police claim they identified the volunteer firefighter as the suspect after apparently viewing surveillance footage from gas stations.

The man was held on $21,000 bond.

Florida has very specific laws set in place to protect the public against credit card fraud. A misdemeanor or felony credit card fraud offense can be charged when someone is accused of signing, taking, forging, using, obtaining, selling or buying someone else’s credit card, debit card or account information. Simply put, knowingly using a stolen, expired, altered, counterfeited, forged or revoked credit card will likely result in theft charges. It’s very important to recognize that while credit card fraud is charged as either petty or grand theft, you could also face forgery and identity theft charges. As you may or may not know, grand theft is classified in Florida as any theft totaling more than $300. It can be a third-degree felony, punishable by up to five years in prison if the total falls under $5,000, but if the theft is more than $5,000 it can be labeled a second or first-degree felony.

The Florida Credit Card Fraud Defense Attorneys at Whittel & Melton can help you understand the complex legal issues that arise following charges of grand theft and fraudulent use of a credit card. By initially investigating the circumstances involved, we can often uncover flaws and irregularities in the government’s case that may help protect your legal rights. State and federal agencies may pursue cases of credit card fraud, however usually these cases are prosecuted by the U.S. Secret Service. Many of these typed of theft-related charges require the prosecution to prove there was intent to commit fraud. For many accused of credit card fraud, this is their best chance at avoiding a conviction.

Published on: March 26, 2012

Florida Business Fraud Defense Attorneys Whittel & Melton :: Collier County Deputy’s Wife Sentenced to Eight Years for Embezzling $250,000

by Whittel & Melton, LLC

A Collier County judge sentenced a 52-year-old woman and wife of a Collier County sheriff’s deputy to eight years in prison Friday for embezzling more than $250,000 from a former employer.

The woman was the office manager for a Naples company where she apparently wrote 211 fraudulent checks from the business’ account between 2005 and 2009.

Her husband received 31 of those checks and claims he knew nothing about what she was doing.

The State Attorney’s Office and the Collier County Sheriff’s Office economic crimes bureau joint investigation did not reveal any evidence to suggest the man had any dealings with his wife’s apparent scheme.

He has not been charged with any crime.

In addition to prison time, the woman was sentenced to 22 years’ probation. She must pay back the full $256,746 that she stole from her former boss. Currently, she has not paid back anything.

The judge claims he was forced to impose the eight-year sentence, the maximum under a January plea agreement, because the woman failed to pay back enough of what is owed to the business owner.

The judge said he may reconsider reducing her prison term if her family can pay back a good portion of what is owed within the next 60 days.

Embezzlement charges often result when there appears to be a misappropriation of funds by someone who has access to the company’s money including bookkeepers, accountants, treasurers or any other employee with the ability to write checks, make withdrawals and make payments with company funds. Many people find themselves slapped with business fraud charges because of questionable financial transactions made when in a position of trust at a business. Whether intentional or unintentional, embezzlement can occur in a variety of ways:

• Writing Fraudulent Checks to Others
• Pocketing Portions of Cash Deposits
• Fraudulent Use of a Company Credit Card
• Transferring Money from a Business Account to a Personal Account
• Appropriating Business Funds for Personal Use
Embezzlement is classified as a theft crime. Commonly referred to as “employee theft” or “employee fraud,” embezzlement charges are often pursued by the federal government. Due to the federal government’s inexhaustible resources to thoroughly investigate embezzlement accusations, early intervention by a criminal defense lawyer is essential in order to avoid a criminal conviction. Although embezzlement is classified as a theft crime, it differs from other theft offenses due to the relationship of trust that exists between an employer and an employee. Because of this, employee theft is generally prosecuted quite aggressively.

The Florida Business Fraud Defense Attorneys at Whittel & Melton may be able to help you avoid the penalties and prison sentences associated with embezzlement charges by crafting together a solid defense strategy. The employer does have the option of waiving prosecution if restitution is paid early in the investigation process and if other necessary steps are conducted in a timely manner. Sometimes an out of court settlement or repayment plan can be the best resolution for all parties involved. At Whittel & Melton, we are dedicated to helping those facing embezzlement accusations or charges throughout Florida.

Published on: March 8, 2012

South Florida White Collar Crime Lawyers Whittel & Melton :: 22 Accused of Stealing Money in Palm Beach Public-Fraud Sting

by Whittel & Melton, LLC

Authorities in Palm Beach County filed charges against 22 individuals Wednesday, alleging they stole nearly $1 million.

“Operation Leap Fraud,” apparently one of the biggest public assistance fraud roundups ever in Palm Beach County netted suspects from across Palm Beach County Jupiter to Delray Beach, and from Pahokee to West Palm Beach on charges ranging from mortgage and insurance fraud to public assistance fraud.

According to the Palm Beach County State Attorney’s Office, only 15 of those charged have been arrested at this time; seven others remained at large Wednesday evening.

Authorities claim the 22 individuals racked up $967,647.37 in fraud.

Authorities did not mention how long the operation took place, but the investigation, which included the U.S. Department of Housing and Urban Development and U.S. Department of Agriculture, apparently targeted people suspected of defrauding housing and other agencies.

At a press conference Wednesday afternoon, the State Attorney’s Office and the Sheriff’s Office said more arrests will follow and there will be no tolerance for even minor cases.

One of the men arrested in the sting, allegedly only defrauded $817.14. Authorities claim the man bilked an elderly woman out of her government-issued Electronic Benefit Transfer card, leaving her without the means to buy food.

It will definitely be interesting to see how the State Attorney’s Office will prosecute these cases. The government and insurance companies do not look fondly on those that attempt to defraud various benefits meant to assist qualifying individuals with their day-to-day needs. There are many ways to defraud the government, and the Florida White Collar Crime Lawyers at Whittel & Melton can assist those facing various fraud charges, including:

• Health Insurance Fraud
• Petty Theft & Grand Theft

• Organized Fraud
• Identity Theft
• Insurance Fraud

• Welfare Fraud
• Medicare/Medicaid Fraud

• Public Assistance Fraud
Florida public assistance fraud can be charged as a misdemeanor or felony depending on the amounts wrongfully obtained. The fraud charge can be classified as a felony if the amount of the assistance illegally gained is worth more than $200 over a 12-month period. Misdemeanor charges can be filed if the value of the assistance is less than $200. If convicted of public assistance or insurance fraud you will be required to pay back the amount of wrongfully obtained benefits and may be perpetually prohibited from receiving future benefits. You may also face jail or prison time, community service or a variety of other criminal punishments.

If you have been arrested for any public assistance fraud in Florida, it is crucial to your defense to consult with the Florida White Collar Crime Lawyers at Whittel & Melton as soon as possible. We will do everything in our power to protect your Constitutional rights. At Whittel & Melton, we can provide you with the aggressive legal representation you need for every stage of your criminal case up to and including trial.

Published on: February 2, 2012

Orlando – Tampa Sinkhole Fraud Defense Attorneys Whittel & Melton :: Questionable Sinkhole Repairs in Florida’s “Sinkhole Alley” Raise Costs and Suspicions of Fraud

by Whittel & Melton, LLC

A Seminole County contracting firm owner is accused of racketeering and insurance fraud after State Farm Insurance claims the company billed for work that was never done and charged for products that were never used in order to fix homes damaged by sinkholes from Orlando to Tampa Bay.

Although the source of the suspicions are dubious, it is suspected that the overcharges in sinkhole claims can be linked to the reason insurance losses from sinkhole claims have skyrocketed. This increase has allegedly increased premiums for all Florida policyholders and not just those throughout Florida’s “sinkhole alley.” Most likely this is the sort of talking point that an Insurance company lobbyist would feed a reporter to avoid the most obvious source of any rate hikes…the Insurance company themselves.

Citizens, a state-run company that insures more than one million property owners allegedly lost more than $200 million dollars in 2010, which they claim is seven times more than the premiums collected for sinkhole coverage.

Published on: January 27, 2012

Florida Tax Crimes Defense Attorneys Whittel & Melton :: Palm Beach Tax Preparer Accused of Filing False Returns

by Whittel & Melton, LLC

A 39-year-old Royal Palm Beach, Florida man has been charged with one count of filing a false personal income tax return for 2008 for himself and seven counts of filing false tax returns for his clients.

He is also charged with fraudulently claiming the First-Time Home Buyer Credit and other tax credits and deductions.

The man apparently ran a tax return preparation business in Palm Beach County.

Prosecutors claim the tax loss to the government was between $400,000 and $1 million.

The man allegedly improperly claimed earned income tax credits, home mortgage interests, business credits, gifts to charities and medical and dental expenses for his clients.

If this man is convicted of tax evasion, he faces potential penalties of up to three years in prison and up to $250,000 in fines for each charge. While searching for ways to dodge tax liability is legal in the U.S., intentionally not paying the taxes you owe can result in felony tax fraud charges. Charges of criminal tax evasion can include:

• Filing a False Tax Return
• Failure to File Taxes
• Failure to Pay Taxes
• Assisting in Preparing a False Tax Return
Additional charges that can arise in tax fraud cases may include mail fraud, making false statements and making false claims. Criminal tax evasion charges may also result from failing to report all income or claiming false deductions. In tax evasion cases, the government must prove knowledge and willfulness to deceive. The penalties are unique to the charges you face and are contingent upon the amount of taxes you owe the federal government.

If you are under investigation for filing false tax returns, it is best to contact a Florida Tax Crimes Attorney immediately. At Whittel & Melton, we can best protect your rights by getting involved as early on the case as possible. Depending on the circumstances exclusive to your case, we may be able to negotiate with the IRS to avoid criminal penalties.

Published on: April 13, 2011

Inverness, Florida Criminal Defense Attorney :: Citrus County Couple Arrested for Swindling Money from Supermarkets

by Whittel & Melton, LLC

The Citrus County Sherriff’s Office arrested a 25-year-old Lecanto, Florida woman and a 29-year-old Beverly Hills, FL man for scheming to defraud, criminal conspiracy and giving worthless checks.

A deputy arrived at a Publix Supermarket in Inverness, FL after receiving a call from the store manager regarding a woman trying to return purchases made with a check for cash. The manager told the deputy that the checks the woman was using were from an account that allegedly had insufficient funds.

According to the Citrus County Chronicle, the woman and her boyfriend had been buying items at local Publix supermarkets with worthless checks and then going to different Publix stores to return the items for cash.

It is the understanding of law enforcement that an account was opened for $50 on April 1, 2011. Further, the allegation is a total of $530.77 that was written on this account and the total cash refunds were for $167.90.

According to the arrest report, the man and woman took turns making purchases and returning items.

The couple was transported to the Citrus County Detention Facility in Lecanto. Her bond was set at $4,100; his bond was set $3,500.

In Florida, you could face a worthless check charge by writing a check with reasonable knowledge that the check won’t clear or the account has been closed. The charge of Worthless Checks is a first degree misdemeanor carrying a potential jail sentence of up to one year and fines of no more than $1,000. If a single worthless check is more than $150 or multiple bad checks written total more than $150, you will face third degree felony charges with a potential sentence of five years in prison.

Many people bounce checks due to difficult financial situations. Due to a miscalculation of funds or a simple error in balancing their checkbook, people can write checks that bounce and end up facing criminal charges. Under Florida law, unknowingly writing a bad check can be a defense to a worthless checks crime. If the person cashing the check was notified there were insufficient funds available at the time of receipt, this too can be a defense to a worthless check charge and may prevent prosecution under Florida law.

Published on: April 9, 2011

Brooksville, Florida White Collar Crime Lawyer :: Bushnell Woman Strips In-Laws Bank Accounts to Feed Gambling Habits

by Whittel & Melton, LLC

Hernando County Detectives arrested a 42-year-old Sumter County, Florida woman Tuesday for various theft-related charges which fueled an alleged gambling book of more than $14 million at a Tampa casino over two years. She has been accused of draining six of her in-law’s accounts taking at least $513,535, leaving the elderly couple with nothing.

According to the St. Petersburg Times, the family of the elderly Brooksville couple knew something was wrong when a check to the dentist on the couple’s account bounced. Family members knew that there should be plenty of money to cover the check.

The family spoke with the bank and learned that the couple’s assets — including savings and checking accounts, CDs, annuities, life insurance and retirement funds — had been exhausted. They immediately notified the police.

A five month investigation revealed that the Bushnell woman’s husband had power of attorney over his parent’s finances, but his wife controlled the accounts. The husband supposedly had no clue that his wife deleted his parents’ accounts, transferred funds and used the money to gamble.

Police reports show that the woman spent more than $14 million over two years at the Seminole Hard Rock Hotel & Casino in Tampa. Her winnings’ were around $13 million, leaving her with a deficit of more than $700,000.

She faces charges of exploitation of the elderly, organized scheme to defraud, forgery of checks and uttering forged checks. She was taken to the Hernando County Detention Center with bail set at $64,000.

Forging checks qualifies as bank fraud, a very serious federal and state charge where federal prosecutors often seek maximum penalties. Federal agencies usually conduct extensive investigations to gather evidence against someone for bank fraud, just like this case where investigators spent five months uncovering alleged fraudulent behavior. Forging checks occurs when someone signs a check owner’s name on the bottom of the check and endorses it to be cashed. Forgery can be punished by both federal and state laws, and even the smallest sum of money forged can be classified as a felony.

A conviction for bank fraud can include penalties of 30 years in state prison and fines up to $1,000,000. Check forgery has a definite outcome of fines and restitution, meaning all the money that was stolen must be paid back. If the person cannot pay the full amount back, courts can order the defendant’s assets to be seized and given to the victim. The United States Criminal Code has 45 statutes pertaining to fraud and forgery that the category of banks fraud falls under. Along with federal laws, there are state laws that can be applied to a conviction. A multiple court conviction will likely increase penalties.