white collar crime

February 17, 2023

7 Charged in Million-Dollar Identity Theft Scheme

by Law Offices of David L. Freidberg, P.C.

Federal authorities have just unsealed an indictment against seven defendants accused of identity theft and draining the bank accounts of their victims. According to the indictment, they stole over $1 million in funds from unsuspecting victims draining their accounts of tens of thousands of dollars at a time.

The scheme allegedly involved the purchase of stolen identifying information that included information like bank accounts, passwords, and more. That information was then passed to ID forgers who would create fake IDs for stolen identities.

In some cases, the alleged fraudsters were accused of tricking the victim’s cellphone provider into swapping in a new sim card under the control of the fraudsters. In other cases, they paid employees of cellphone companies to do that. Once they had the victim’s cellphone information, it was easy to gain access to their personal bank accounts.

November 11, 2022

Man Receives Eight Years for Embezzlement From Employer

by Law Offices of David L. Freidberg, P.C.

A man has been sentenced to 90 months in federal prison after eight years as a fugitive in Utah. The man was charged in connection with the theft of over $2.2 million from his employer when he worked as a bookkeeper. The defendant was responsible for paying invoices to vendors, but fabricated duplicate invoices for work already paid and diverted the money into his own account. In 2012, he was caught and charged with wire fraud, money laundering, and tax evasion, but he fled the police while on house arrest. He was caught eight years later and will now serve eight years in federal prison.

The Crime of Embezzlement

What is embezzlement specifically? Well, you can steal money from anyone, but when you embezzle, you steal from someone with whom you have a duty of service, it is considered embezzlement. Companies and governments can be the victim of embezzlement. Employees and actors who operate on behalf of governments can be the perpetrators of embezzlement. Nonetheless, there is no “crime of embezzlement” under federal law. Instead, you have wire fraud.

July 28, 2021

U.S. Charges Ukrainian Industrialist With Conspiracy to Bribe

by Law Offices of David L. Freidberg, P.C.

In a case filed against a foreign national who had never set foot in Chicago (or the United States for that matter), a Ukrainian industrialist is facing charges related to a conspiracy to bribe an Indian official. Unfortunately, the bribe never happened and the deal fell apart. However, that has not stopped the U.S. from attempting to extradite the man to the U.S. to face charges related to a failed bribe.

Dmitry Firtash is a well-known and well-connected Ukrainian natural gas magnate. The question perplexing many is why a Ukrainian citizen who has never been to the United States ended up getting charged in a failed attempt to bribe an Indian official. Attorneys for Firtash claim that there is no case to be made since the bribe never happened, and even if it did, the U.S. lacks personal jurisdiction over the case.

What is going on?

July 14, 2021

Manhattan Jury Convicts Chicago Banker of Bribery

by Law Offices of David L. Freidberg, P.C.

A Trump associate was convicted in Manhattan after he enabled Paul Manafort to get $16 million in loans in exchange for an interview for a job with the Trump Administration. Stephen Calk was convicted of financial institution bribery and conspiracy. Calk insisted that he had broken no law nor done anything wrong.

Calk insisted that although he was given an interview for the job, he was not hired. Hence, there was no quid pro quo. However, Calk enabled Paul Manafort to get $16 million in loans related to his real estate ventures. This was money that would not have been offered to him had he used above-board channels.

Testimony

September 16, 2020

Chicago Rabbi Facing Charges Related to Ponzi Scheme

by Law Offices of David L. Freidberg, P.C.

A Chicago rabbi is facing federal charges alleging that he defrauded at least 75 people out of a reported $23 million. One of the people, federal officials noted, was a survivor of the holocaust. The fraud involved the purchasing of nursing homes and assisted living facilities.

Zvi Feiner will face charges related to 10 counts of wire fraud, federal officials say.

The Indictment

June 19, 2020

Chicago Businessman Faces Federal COVID-19 Fraud Charges

by Law Offices of David L. Freidberg, P.C.

Rahul Shah became the first person in the Chicago area with the dubious distinction of defrauding the federal government for coronavirus relief funds. Shah applied for a $441,000 federal loan earmarked for small business relief during the coronavirus pandemic.

When confronted concerning the suspicious forms used to apply for the loan, Shah said he had workers in India file the forms for him. Later, however, he reversed course and admitted that the loan was keeping his business afloat. Shah is charged with bank fraud and making false statements to a financial institution.

The Paycheck Protection Program

December 12, 2019

State Senator Charged With Embezzling from Teamsters

by Law Offices of David L. Freidberg, P.C.

State Senator Tom Cullerton is now facing federal charges that embezzled funds from the Teamsters. Federal authorities are accusing Cullerton of collecting a nearly $190,000 salary plus bonuses for vehicle and cellphone usage. He is also said to have taken $64,000 in health and pension contributions while doing apparently nothing for the Teamsters union.

Cullerton faced a grand jury indictment in August on one count of conspiracy to embezzle from a labor union, one count of lying about a public health matter, and 39 counts of embezzlement from a labor union.

Cullerton is one of three elected officials to face federal charges amid a federal probe into corruption in Chicago and Illinois. Cullerton has pleaded not guilty to all charges and expressed eagerness to clear his good name.

April 12, 2019

Spoofing Case Ends in Mistrial

by Law Offices of David L. Freidberg, P.C.

10 of 12 jurors did not believe that the state had proven its case against Jitesh Thakkar, but the remaining two refused to budge and thus the criminal trial resulted in a hung jury. The federal government had accused Thakkar of “spoofing,” which, in the context of illicit trading and finance, means utilizing algorithms to place trades for the sole purpose of manipulating stock prices. The spoofers place bids on stocks and then cancel the trade. The traders can then time trades to maximize their own profit while disrupting the market.

Under the Dodd-Frank Act, spoofing is defined as “the illegal practice of placing a bid with the intent to cancel before execution.” The legislation outlawing spoofing was passed in 2010 and outlines some of the pitfalls of market trading in a post-machine-learning world that allows algorithmic trades.

Spoofing is closely tied to the practice of layering. As an example, a trader may offer a number of stocks below asking price to drive the cost of stocks down. They repeat this process as the price of the stock becomes lower and lower until they place a legitimate bid at far below the stock’s value.

February 27, 2019

How Society is Affected by White-Collar Crime

by Law Offices of David L. Freidberg, P.C.

White-collar crime may consist of various charges at both the state and federal level. The stereotype of an individual engaging in white collar crime may be the high-level corporate executive in a tailored suit who sacrifices the future of his company for personal gain. But a crime of this nature could be perpetrated by anyone in the office, from a mailroom clerk all the way up to the C-suite.

Additionally, a white-collar crime does not have to be committed by a person in a corporation or even someone employed. The criminal may be a charming neighbor who cons an individual out of his or her retirement savings. Offenses like credit card theft or counterfeiting do not typically involve violence, but they do have a serious impact on individuals, society, and the economy.

A white-collar criminal defense attorney can provide a level of protection against the severity of the penalties associated with these types of charges.

December 12, 2018

Categories of White Collar Crimes

by Law Offices of David L. Freidberg, P.C.

To better protect consumers and business owners, courts have been punishing those who commit white collar crimes more severely. After the banking system in the United States nearly collapsed, the prosecution of Bernie Madoff, Martha Stewart, Enron executives, and many other high-profile cases took center stage. Many executives of large organizations find themselves under unprecedented federal scrutiny.

The term “white collar” was initially used in the 1930s to describe criminal acts that were not violent. Frequently, individuals faced charges of white collar crimes when more serious criminal violations could not be proven. Think of Al Capone’s conviction of tax evasion in 1931.

There are many crimes that are categorized as white collar violations. Most are related to money or property that was the responsibility of an organization’s trusted employee. The most common form of a white collar crime is embezzlement and is often committed by accountants, payroll clerks, and bookkeepers. Depending on the amount of money or the value of property stolen, embezzlement can be charged as a felony or misdemeanor.