White Collar Crime

Published on: August 16, 2013

Monroe County Man Wanted charged with Credit Card Fraud arrested while fleeing the Florida Keys to Russia

by Whittel & Melton, LLC

Florida Keys resident Alex Bogomolny had an outstanding $1.5 million arrest warrant based on allegations that he conducted multiple counts of fraud, specifically, trafficking in counterfeit credit cards and identity theft.

According to reports, he was picked up by the Monroe County Sherriff’s Office Tuesday as he was trying to catch a flight to Russia.

That day, the sheriff’s office received word that Bogomolny had flown out of Key West to New York but had missed his connecting flight to Russia. He was waiting in the John F. Kennedy airport for another flight, when he was apprehended.

Working with Immigration and Customs Enforcement agents, the Monroe County Sheriff’s Office alerted ICE agents that he was trying to flee the country. ICE agents found Bogomolny at the JFK and took him into custody.

Bogomolny will be returned to Monroe County to face charges.

Bogomolny’s scheme was discovered when he was picked up for allegedly stealing a bicycle in Big Pine Key. When his personal belongings were collected when he was questions, Officers found over two dozen credit cards with different people’s names on them. Bogomolny was unable to give a good explanation for his possession of so many cards, which prompted law enforcement fo start an investigation. During this investigation, investigators found that he was opening up credit accounts under other people’s names, according to the sheriff’s office, prompting the arrest warrant.

Published on: September 18, 2012

South Florida Man Facing Various Fraud Charges for Allegedly Filing False Claims with BP Oil Spill Fund :: Whittel & Melton

by Whittel & Melton, LLC

A Homestead, Florida man was charged Friday with several counts of mail, wire and access device fraud after allegedly filing false claims for thousands of dollars with the BP oil spill fund.

The man is currently being held without bail.

Prosecutors claim the man filed papers with the Gulf Coast Claims Facility falsely indicating he had worked for a Florida Keys business and had lost wages due to the 2010 oil spill in the Gulf of Mexico.

He apparently pursued a total of $37,000.

The man now faces several decades in prison for the charges stacked against him.

Fraud offenses are usually classified as “crimes of confidence.” Meaning, people are charged for these crimes for profiting from abusing the trust of another person or entity. While lacking the physical violence usually involved in most traditional crimes, white collar crimes such as wire, mail or credit card fraud carry severe punishments. If you have been charged with white collar fraud, a criminal defense attorney can analyze your case and advise you on how to best proceed given the circumstances.

Any crime utilizing U.S. mail or electronic communications, such as phones, Internet or e-mail can be considered mail or wire fraud. Both of these crimes are federal charges and carry harsh consequences. Both wire and mail fraud charges carry a 20 year prison sentence if convicted. If you are found guilty of defrauding a financial institution or federal agency, you can be sentenced to 30 years in prison. However, in order to obtain a conviction, prosecutors must be able to demonstrate that you knowingly and willfully attempted to defraud someone and that you intentionally used the mail or interstate electronic communication to purposefully commit a crime. Whether or not you were successful in completing the crime or defrauding someone else is irrelevant.

Published on: May 2, 2012

Florida White Collar Crime Defense Lawyers Whittel & Melton :: FBI Undercover Bust Results in the Arrest of Three Former Football Players

by Whittel & Melton, LLC

Two ex-NFL football players and a former high school football star were arrested in an undercover operation set up by FBI agents Monday for allegedly cashing dozens of fraudulently obtained tax-refund checks and seeking a loan, totaling hundreds of thousands of dollars.

FBI agents apparently set up a check-cashing store “front” in Miami as a response to the escalating number of reported identity-theft crimes in South Florida and nationwide. The FBI claims the bust was designed to prevent an alleged identify-theft and tax-refund scheme.

The men arrested include: William Joseph who was drafted in the first round by the New York Giants in 2003 and last played with the Oakland Raiders in 2010, Michael Bennet who also was drafted in the first round by the Minnesota Vikings in 2001 and finished his career with the Raiders in 2011 and Louis Gachelin, a Miami Jackson High and Syracuse University defensive lineman who signed as a free agent with the New England Patriots in 2004, but failed to make the final roster.

The former football players, Joseph, 32, of Miramar, Gachelin, 31, of Miramar, and Bennett, 33, of Tampa were granted bonds Tuesday. Arraignments are apparently scheduled for May 15.

The sting operation yielded five other arrests Monday as well.

Joseph, Gachelin and those five defendants were charged with cashing a total of about $500,000
in fraudulently obtained tax-refund checks, forging signatures on the checks and unlawfully using identification documents such as a driver’s license.

As part of the undercover sting, the FBI apparently charged 35 percent to 45 percent in fees to cash their checks with the bureau’s own funds.

Bennet allegedly tried to obtain a $200,000 loan on April 18 from the check-cashing store front using a UBS financial statement falsely showing that he had $9 million in collateral for the loan. He was charged with wire fraud.

The FBI claims fraudulently obtained tax refunds are costing the government $5 billion or more.

According to the U.S. Government Accountability Office, people filing false tax returns have abused a hole in the IRS electronic filing system.

It appears that the IRS does not actually match tax returns to the W-2 income forms that employers file until several months after the filing season ends on April 15. Employers file returns at the end of February or early March, but the agency apparently does not match them up with employees’ incomes reported on 1040 forms until sometime in June.

According to the GAO, the number of identity theft-related fraud incidents on tax returns reached 248,000 in 2010, which is around five times more than in 2008.

Federal investigations into white collar or financial crimes can arise out of nowhere. In fact, these investigations can intensify quite rapidly, sometimes even before you are ever approached by investigators. It is critical to consult with a criminal defense lawyer if you have any reason to believe that you are under investigation for a financial crime. Often there are signs that can clue you into whether or not an investigation is in progress, including behavior changes in those around you, unusual questions or suspicious activities.

White collar crimes can include:

• Tax Crimes
• Fraud

• Identity Theft

• Embezzlement
• Antitrust Crimes

• Hacking
• Forgery
Financial crimes require a strong defense, and in order to be effective you must retain a trial attorney prepared to practice in state and federal court. The Florida White Collar Crime Defense Lawyers at Whittel & Melton understand how a strong defense against financial crimes is built. We know how to identify loophole’s in the prosecutor’s case and leverage them to work in your favor.

It is important to realize that when you are charged with a crime, your future depends on early representation. Unfortunately, early mistakes cannot be undone and the prosecution will use any information they can against you.

Published on: April 21, 2012

Florida Fraud Defense Lawyers Whittel & Melton :: Two Volusia Women Face Charges in Alleged Timeshare Scheme

by Whittel & Melton, LLC

Investigators claim more than a dozen people, possibly more, have been bilked out of thousands of dollars related to an alleged timeshare scam in Ormond Beach.

The investigation began in January after the Volusia County Sheriff’s Office was contacted by the Hillsborough County Consumer Protection Agency, which claims they had received complaints about a company selling timeshares.

People that wanted to sell their timeshares apparently sent money to the company through wire transfers. Police claim the money was picked up in Volusia County, but the alleged victims never heard anything from the company again.

A 45-year-old Ormond Beach woman was allegedly identified by police as the person who had picked up 15 of the wire transfers.

The Ormond Beach Police Department was apparently investigating the woman and combined forces with the Volusia County Sheriff’s Office to complete the investigation.

A 39-year-old Ormond Beach woman was also investigated by the two agencies for her alleged involvement in the scheme. She was arrested a month ago and accused of two counts of grand theft.

Police claim that during an interview she admitted to the fraud scheme. She allegedly told investigators she was provided with “lead sheets” that contained information about potential victims, and she would call them to offer to sell their timeshares.

The women would allegedly tell people how much money to send for nonexistent services and how to send it through a wire transfer.

The pair apparently picked up the wire transfers together. The 45-year-old woman was allegedly the one that actually had to collect the cash because the other woman was apparently banned from using Western Union.

Police believe the 39-year-old woman gave the 45-year-old woman 5 percent to 20 percent of the payment.

The 45-year-old woman was arrested this week on charges of organized scheme to defraud and five counts of grand theft.

The 39-year-old woman is now facing two counts of theft from a person 65 or older, six counts of obtaining property by fraud and four counts of grand theft in addition to the charges filed last month.

Federal and state government agencies are cracking down more than ever on timeshare fraud violators. Prosecutors tend to show little mercy on those accused of timeshare fraud, making the need for a criminal defense lawyer extremely vital. To successfully defend yourself against fraud accusations, you often need to deal with a large and complicated investigation that may have been constructed over several months or possibly years by government investigators. An effective defense is an absolute necessity when facing such a serious situation.

Courts take fraud charges quite seriously and a conviction often results in jail time and other consequences. Dealing with these charges can be overwhelming and stressful as you may not fully realize the extent of your case. Understanding the charges against you can prepare you for what to expect in court. You do have rights and options in defending your case. The Florida Fraud Defense Attorneys at Whittel & Melton can help you face your criminal charges properly, so that you can move forward with your case and your life.

Published on: April 17, 2012

South Florida Extortion Defense Lawyers Whittel & Melton :: Former TSA Officer Admits to Accepting Cash Bribe from Drug Trafficker

by Whittel & Melton, LLC

A 46-year-old former Transportation Security Administration officer pleaded guilty Monday to federal charges of extortion and receipt of a bribe.

According to the U.S. attorney’s office, the Palm Beach Gardens resident admitted to accepting cash in exchange for allowing illegal prescription painkillers to pass through airport security without detection.

Authorities claim the man accepted cash from a trafficker to guarantee that he would not be detained by TSA as he made his way through airport security carrying oxycodone pills while en route to Connecticut. He was one of 20 people arrested last year following an investigation by a Drug Enforcement Administration task force.

The man allegedly accepted $500 from the trafficker last year on four separate occasions while employed as a TSA officer at Palm Beach International Airport in West Palm Beach, Florida.
The trafficker was apparently working with authorities.

The man is scheduled to be sentenced on July 5.

The man faces up to 20 years in prison for the extortion count and another possible 15 years on the bribe count.

Extortion is classified as a white collar crime, often penalized with automatic incarceration. A person charged with extortion is accused of acquiring money, goods, services or a desired outcome from another through the use of threats or violence. There are several offenses that are categorized under the crime of extortion, including:

• Bribery
• Ransom
• Blackmail
If a public servant receives money that is not owed to them legally, this is considered extortion. Extortion is a federal crime, and therefore taken quite seriously. A conviction for extortion can result in a number of criminal penalties, including prison time, fines, probation, parole and possibly restitution to the victim. Penalties can vary depending on the severity of the crime and the defendant’s criminal record. It is important to be aware that even the attempt to commit extortion can result in criminal charges carrying potential jail time.

As former prosecutors, the Florida Extortion Defense Lawyers at Whittel & Melton have the background needed to aggressively defend extortion charges in both state and federal court. Defending these charges often requires gathering physical evidence to establish the defendant’s true character as well as expert and witness testimony. To be able to deliver a strong defense, early preparation and a thorough investigation into the facts of the case needs to be conducted as soon as possible. Early intervention is critical when facing extortion charges.

Published on: April 10, 2012

Tampa White Collar Crimes Attorneys Whittel & Melton :: “Millionaire” Date Pleads Guilty to Bank Fraud

by Whittel & Melton, LLC

A 36-year-old Tampa resident that appeared on Bravo television’s The Millionaire Matchmaker in 2009 claiming he was worth $400 million and operated a company with business in 36 nations plead guilty Monday in federal court to bank fraud charges.

The man apparently confessed that he received a $3 million loan in the months before his television appearance by faking he had tens of millions of dollars squirreled in two banks.

The plea came in Monday afternoon and was a shock to lawyers working the case who had apparently spent the morning selecting a jury in a trial that was anticipated to last a week.

The man entered an open plea, which means he has no deal on a sentence arranged with prosecutors. The judge scheduled his sentencing for Aug. 9.

The man’s court-appointed attorney claims the man feared losing at trial and decided against taking a risk.

The man will remain in custody until sentencing. His bail was revoked last year after prosecutors accused him of attempting to purchase two luxury vehicles while awaiting trial.

Prosecutors allege the man began pursuing the loan in 2008, telling the bank he needed the funds for his business, a company specializing in processing electronic payments on the Internet.

The man had two co-conspirators, prosecutors allege. One apparently worked at a bank and produced a fraudulent letter confirming the man had $21 million on deposit, which the man used as collateral on the $3 million loan.

Additional fraudulent documents were allegedly used to obtain the loan including bank statements and tax returns for 2006 and 2007. According to reports, the man did not file returns in those years.

The man apparently met with a bank official in the Caribbean regarding the loan in November2008. Another alleged co-conspirator impersonated a Caribbean bank representative claiming the man had $145 million on deposit there.

Also on Monday, one alleged co-conspirator pleaded guilty to bank fraud charges. He will also be sentenced in August.

A second alleged co-conspirator has apparently agreed to cooperate with authorities.

In the state of Florida, bank fraud is classified as a serious federal crime that can carry consequences of up to 30 years in state prison and fines up to $1,000,000. These cases are investigated by federal agencies that devote countless hours and resources to uncovering evidence of bank fraud and other financial crimes. In an effort to seek the maximum penalties, these same agencies will often employ federal prosecutors to try these cases in court.

Bank fraud may be committed in a number of ways. Some of these may include:

• Falsifying loan documents
• Making false statements
• Forging checks
• Wire fraud involving a bank

• Mail fraud involving a bank

• Loan Fraud
• Counterfeiting loan documents

• Forging Letters of Credit
Regardless of the specific bank fraud charges you are facing, the Florida White Collar Criminal Defense Lawyers at Whittel & Melton can help. The federal laws related to bank fraud can be confusing. If you are suspected of bank fraud, do not waste any time seeking legal counsel. These charges are serious and can deliver life-altering consequences.

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 30, 2012

Florida White Collar Crimes Defense Attorneys Whittel & Melton :: Columbian Man Arrested in Orlando for Having Counterfeit Bills

by Whittel & Melton, LLC

A 52-year-old Columbian man was arrested in the Orlando area Saturday morning for having $6,500 in counterfeit U.S. currency in his possession.

A Kissimmee police officer pulled the man over Saturday morning driving a dark blue BMW with a tinted front windshield. The officer apparently instructed him to pull over while he was conducting an unrelated traffic stop in the same area.

After checking the vehicle, it was allegedly determined that the car was not properly registered to the driver. The man was detained while the officer performed a field investigation.

Investigators claim the man gave his consent for officers to search the vehicle where they allegedly uncovered a black purse containing three separate envelopes, one of them apparently containing 50 counterfeit $100 bills.

The man was placed under arrest and taken to the Kissimmee Police Department to be interviewed by Kissimmee Police Detectives and a United States Secret Service Agent.

According to the Kissimmee Police Department, a thorough search of the vehicle revealed $14, 802 of valid U.S. currency, $6,500 of counterfeit U.S. currency and 46 random gift cards from various retailers.

The man was charged with possession of more than 10 counterfeit bills and was transported to the Osceola County Jail. At the man’s request, the Columbian Consulate was contacted.

Counterfeiting represents the act of generating false currency and distributing it or attempting to distribute it as a genuine form of cash. Counterfeiting can also include other criminal activities including possession of counterfeit money or goods or trafficking in counterfeit money or goods.
When counterfeiting involves money or government bonds, it is charged as a federal crime. Like most white collar crimes, this means federal agencies will investigate and prosecute the case. Not only do these federal agencies have more resources than law enforcement organizations at the state level, they tend to show fewer leniencies to those accused of counterfeiting.

In order for the prosecution to obtain a conviction in a counterfeiting currency case, it must be shown that the accused knowingly committed the offense. A Florida Counterfeit Defense Lawyer may be able to present compelling evidence to the jury that may result in a dismissal of charges if the following can be demonstrated:

• The accused did not commit the crime of counterfeiting
• The accused unknowingly was in possession of counterfeit money
• The accused had no intent to commit the crime of counterfeiting
• Any evidence pertaining to the charge of counterfeiting is insufficient or inconclusive
When accused of a counterfeiting offense, it is important to consult with a Florida Counterfeit Defense Lawyer at Whittel & Melton as early on in the process as possible. It does make a difference how soon a defense attorney is brought into the process. By consulting with legal counsel during the early stages of an investigation, the prosecution may be persuaded that they do not have a convincing case against you which could result in no charges being filed.