Business Crimes Hotline

NEVADA

Accounting Consultant Sentenced to 46 Months for Defrauding His Employer

The defendant, an outside accounting and financial consultant, was sentenced to 46 months in prison after pleading guilty to defrauding his employer, a commercial franchise operator, of over $2 million, according to the U.S. Attorney for the District of Arizona. The defendant had signature authority over numerous of his employer's accounts, and used that authority to write himself additional payroll checks without his employer's knowledge. He also wrote company checks to pay his personal credit card bill, make car payments, and for personal financial transactions with his stockbroker. In addition, he used his position to fraudulently inflate the value of a loan he made to the company and to write himself several loan repayment checks from different company accounts. In a related civil forfeiture case, the defendant forfeited to the government his $2 million home and several luxury cars, which were used to pay restitution to his employer. (United States v. Kolk, 06-CR-00950, D. Az.)

NEW YORK

President of Consumer Rights Group Charged with Defrauding Litigants

The president of a company that purports to investigate consumer complaints and conduct research in connection with fraud cases has been charged with wire fraud in an alleged scheme to defraud parties in high-profile lawsuits, according to the U.S. Attorney's Office for the Southern District of New York. The defendant is accused of contacting counsel engaged in high-profile civil litigation and offering to provide incriminating information relevant to the litigation for a price. After collecting his fee, but failing to deliver the allegedly non-existent evidence, it is alleged that the defendant approached the opposing counsel and offered to sell them evidence that the first party had hired him to undertake an illegal or unethical investigation. The defendant allegedly bolstered his claims by providing counsel with forged email that purported to show that opposing counsel had asked him to use illegal investigative techniques. (United States v. Lair, No. 06-mj-01609, S.D. N.Y.)

ARIZONA

Tax Preparer Sentenced on Charge Related to Bogus Charitable Trust

The Department of Justice has announced that an Arizona man who held himself out as a tax attorney has been convicted of conspiracy to defraud the United States on charges related to a bogus charitable remainder trust scam. The defendant told his clients that he could use his experience and connections to get them large tax refunds. He also claimed to have special permission to use a loophole in the tax code to shelter the refund money in a charitable trust for the future benefit of their families. Unbeknownst to his clients, he inflated the charitable contributions and other deductions on the clients' return to increase their refunds. He then diverted a portion of the resulting monies to his own use and that of his girlfriend. He concealed the plan by refusing to show his clients copies of their returns, claiming they were held in a 'blind trust.' The scheme was uncovered when suspicious clients reported him to the IRS. (United States v. Deguzman, 04-cr-01674, D. Az.)

NEVADA

Accounting Consultant Sentenced to 46 Months for Defrauding His Employer

The defendant, an outside accounting and financial consultant, was sentenced to 46 months in prison after pleading guilty to defrauding his employer, a commercial franchise operator, of over $2 million, according to the U.S. Attorney for the District of Arizona. The defendant had signature authority over numerous of his employer's accounts, and used that authority to write himself additional payroll checks without his employer's knowledge. He also wrote company checks to pay his personal credit card bill, make car payments, and for personal financial transactions with his stockbroker. In addition, he used his position to fraudulently inflate the value of a loan he made to the company and to write himself several loan repayment checks from different company accounts. In a related civil forfeiture case, the defendant forfeited to the government his $2 million home and several luxury cars, which were used to pay restitution to his employer. (United States v. Kolk, 06-CR-00950, D. Az.)

NEW YORK

President of Consumer Rights Group Charged with Defrauding Litigants

The president of a company that purports to investigate consumer complaints and conduct research in connection with fraud cases has been charged with wire fraud in an alleged scheme to defraud parties in high-profile lawsuits, according to the U.S. Attorney's Office for the Southern District of New York. The defendant is accused of contacting counsel engaged in high-profile civil litigation and offering to provide incriminating information relevant to the litigation for a price. After collecting his fee, but failing to deliver the allegedly non-existent evidence, it is alleged that the defendant approached the opposing counsel and offered to sell them evidence that the first party had hired him to undertake an illegal or unethical investigation. The defendant allegedly bolstered his claims by providing counsel with forged email that purported to show that opposing counsel had asked him to use illegal investigative techniques. (United States v. Lair, No. 06-mj-01609, S.D. N.Y.)