Defending Mail Fraud

by Pete Strom on November 7, 2011

South Carolina Mail Fraud Attorneys

Fighting An Allegation of Mail Fraud

The United States Code criminalizes, “any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses” involving the U.S. Mail system.

The problem with an allegation of mail fraud is that each act committed in a post office of taking out or putting in a letter that furthers the scheme, is a distinct and separate violation.  Accordingly, with a mass mailing, hundreds of violations may have been committed.

Defending a mail fraud allegation requires a complete understanding of what the Government must establish to secure a conviction.  The Strom Law Firm, LLC, provides the sound legal knowledge and the resources to effectively represent you against charges of mail fraud.  If you have been arrested for mail fraud in South Carolina, contact us today for a free consultation to hear how we can help.  803.252.4800

As a former U.S. Attorney, Pete Strom handled these types of criminal fraud cases. Mr. Strom’s experience will provide you with an aggressive, strategic, and well planned defense.

What is Required to Set Forth a Mail Fraud Case

To secure a conviction of mail fraud, the government must establish:

  • that you utilized the US postal system
  • “for the purpose of executing” the fraudulent scheme.

To prove their case, the government only needs to prove that the mailing was incidental to an essential part of the scheme.

By: Pete Strom, South Carolina Mail Fraud Attorney

Reduction in Federal Crack Cocaine Sentences Could Release 12,000 Inmates

by Pete Strom on November 2, 2011

South Carolina Federal Defense Attorneys

A reduction in federal prison sentences for crack cocaine took effect on November first in a move that could release an estimated 12,000 inmates get reearly.

The changes reduce federal penalties for the more addictive crack cocaine to bring them more in line with those for powdered cocaine. The sentencing disparity had long been criticized as racially discriminatory because it disproportionately affected African American defendants.

Chris Burke, a spokesman for the Federal Bureau of Prisons said, ”Up to 1,800 inmates are immediately eligible to go free and prison officials are processing a growing number of release orders,” 

The pace has picked up in the last couple of weeks and we don’t expect it to abate any time soon,’ he said.

The U.S. Sentencing Commission said they estimate this summer that about 12,000 inmates could be eligible to seek a reduced sentence, with the impact spread over decades. The average reduction sentence per inmate  would be 37 months.

President Barack Obama signed the sentencing changes in 2010. The Sentencing Commission voted this past summer to make the new law apply retroactively to its guidelines.

One Example

Inmate  Stephanie Nodd, who was sentenced in 1990 to 30 years in prison on crack cocaine charges, could be released as soon as this month, claimed her brother Dan Nodd, of Mobile, Alabama.

‘We planned on having a big celebration for her. It would be a day of celebration, a day of jubilation for me,’ he said in a telephone interview.

Ms Nodd, now 44, has five children, and has earned a high school equivalency degree as well as a forklift license while in prison. Her brother said he hopes to help her get a job when she was released.

By: Pete Strom, South Carolina Federal Criminal Defense Attorney

 

Theft on the Rise in SC

by Pete Strom on October 26, 2011

South Carolina Federal Defense Attorneys

State 2nd in nation; increase partly blamed on recession

According to the Greenville News, the state of South Carolina is second in the country for property crimes, with only Washington, D.C. having a higher rate.

The state has above-average rates in all the categories of theft, including larceny-theft, burglary and motor vehicle theft. Many South Carolina residents found this surprising, many of whom stay in or moved to the state because of the perceived low crime rates.

Greenville County Sheriff, Steve Loftis, believes that the bad economy is responsible, at least in part.

Greenville County has seen a 7.6 % increase in property crimes. Other counties in the region saw increases as well : Property crimes rose 15.6 % in Anderson County and 18.4 % in Pickens County. Nationally, the crime rates have decreased, including property crimes.

The theft of copper and other building materials from construction sites and existing buildings seems to be driving these numbers in the Greenville region. Law enforcement officials hope that a new law that requires a permit to sell copper may reduce this type of property crime.

By: Pete Strom, South Carolina Federal Defense Lawyer

Centrally located in Columbia, South Carolina, our firm has been serving clients for over 15 years.  Founded by former U.S. Attorney and assistant solicitor, Pete Strom, our experienced criminal  defense attorneys include a former public defender, and a former Assistant Attorney General and Richland County Assistant Solicitor, as well as a tax lawyer familiar with IRS investigations.  Our experience and familiarity with prosecutorial techniques provide the basis for experienced and effective legal representation. We will fight hard to have your charges reduced, or even dismissed.

 

Connecticut Man Claims to have killed 17 People

by Pete Strom on October 24, 2011

South Carolina Federal Defense Attorneys

Fox News is reporting that a Connecticut man convicted in a deadly home invasion bragged in a letter from death row that he has murdered 17 people and collected victims’ sneakers as trophies.  He also ridiculed his accomplice as “not even worthy” of being his partner in crime.

The New Haven Register reported over the weekend that it had obtained a letter that Steven Hayes allegedly wrote from prison, where he has been sentenced to death for the 2007 home invasion that resulted in the death of a mother and her two daughters.

Hayes’ convicted collaborator, Joshua Komisarjevsky, had attempted to have Hayes’ letters introduced into evidence as part of his defense after they were confiscated by prison authorities. The judge on the case rejected the request.

The letters have not been released to the public, and the Register did not specify in its report how it acquired access to the letter it attributes to Hayes.

Hayes and Komisarjevsky were convicted of murder, sexual assault and other offenses in the July 2007 deaths of Jennifer Hawke-Petit and her daughters. They also were convicted of assault and other crimes against the lone survivor of the brutal attack, Dr. William Petit.

Connecticut authorities confiscated four handwritten letters allegedly written by Hayes to a North Carolina individual identified only as “Lynn.” In the letters, Fox News claims he declared he had killed 17 people, committed numerous sexual assaults of drugged victims in motels, taped 16 hours of one kidnapping and assault, and kept a collection of some victims’ sneakers as trophies.

State’s Attorney Michael Dearington and an FBI spokesman did not say whether Hayes’ purported crimes are being investigated or whether authorities are aware of 17 unsolved homicides matching the information in his letters.

Hayes and Komisarjevsky said each other were at fault during their trials for escalating the violence that left the Petit women dead.

By: Pete Strom, South Carolina Federal Defense Attorney

 

 

ICE Deports Record Number of Immigrants in Year

by Pete Strom on October 19, 2011

South Carolina Federal Defense Attorney

(Miami, Fl) Director John Morton of the U.S. Immigration and Customs Enforcement said yesterday his agency deported nearly 400,000 individuals during the fiscal year that ended in September, the highest number of removals in the agency’s history.

Morton announced said a little more than half, or approximately 55 percent of those deported, had felony or misdemeanor convictions. Officials stated the number of illegal immigrants convicted of a crime has risen 89 percent from 2008.

Authorities could not immediately say how many of those crimes related to re-entering the U.S. after being deported.

Individuals who have been deported can be convicted of a felony for returning to the U.S. and/or being found in the U.S. after deportation.

Officials also stated that of the nearly 400,000 individuals deported:

  • more than 1,000 convicted of homicide.
  • 5,800 were sexual offenders, and 
  • approximately 80,000 people were convicted of drug related crimes or driving under the influence.

While these numbers are signficant and the crimes listed above are severe, it is important to remember that there is no indication of what the majority of immigrants deported were convicted of.  

“This comes down to focusing our resources as best we can on our priorities,” Morton said. “We continue to hope for comprehensive immigration reform at a national level, working with the Congress, but in the meantime, we work with the resources we have, under the laws we have.”

The message comes as the Obama administration has sought to respond to critics on both sides of the immigration issue. Immigration supporters protest law enforcement officials saying they are spending too much of their scarce resources rounding up families living illegally in the country who otherwise are law-abiding.

Others say the administration is not doing enough to minimize and prevent the flow of illegal immigration and protect Americans from potential foreign terrorists and other criminals.

Janet Napolitano, Department of Homeland Security Secretary, has said the agency is “focusing its resources on criminals, recent border crossers, those who repeatedly cross the border and those people the department considers fugitives.”

Law enforcement officials claim two-thirds of those deported last year either recently crossed the border or had done so repeatedly.

By: Pete Strom, South CarolinaFederal Defense Attorney

Is the IRS After You?

by Pete Strom on October 17, 2011

South Carolina IRS Tax Lawyers

Aggressive IRS Criminal Tax Fraud Defense

Signs An Indictment for Criminal Tax Fraud is Looming:

  • The IRS Revenue Officer who has been pressing you for payment suddenly disappears and won’t return your phone calls. This is not necessarily a stroke of good luck. Instead, he may be back at the office writing up a referral to his friends in the Criminal Investigation Division.
  • The IRS Revenue Agent who has been auditing your tax returnsdisappears for days or weeks. Again, this isn’t cause for celebration. The case may have been referred. When the Criminal Investigation Division is in a case, or even considering whether to accept a referral from another division, no action is taken for fear that something done by the Examination Division or the Collection Division will harm the chances of a successful prosecution down the road.
  • Your bank notifies you that the Criminal Investigation Division of the IRS (using a summons), or the local U.S Attorney’s Office (using a grand jury subpoena), has requested copies of your bank records. You need representation to track the IRS investigation and secure the same records the IRS gets in these cases. Knowledge is power.
  • Your accountant is contacted by Special Agents or is subpoenaed to appear before a grand jury and bring your tax records. Since conversations with your accountant are not protected in a criminal investigation or prosecution, discussions you may have had in the past are fair game for questions by the IRS or the grand jury. Obviously, this means that once you know you are under investigation you should say nothing at all to your accountant, or you may someday watch him being forced to repeat the conversation from the witness stand. Accountants are an integral part of the defense team in any criminal tax matter, but only when they have been retained by counsel and thus are brought within the attorney-client privilege under U.S. v. Koval , 296 F.2d 918 (2d Cir. 1961) and other cases which have followed it. The so-called accountant-client privilege provided under state law, and even under the Internal Revenue Code itself, does not apply in a criminal case.
  • You are notified by the IRS that one of your previous tax returns has been “selected” for audit, and you know that in the tax year in question there was an understatement of income or an overstatement of deductions. If the returns you filed contain either understatements of income or overstatements of deductions, you should not have any further discussions with your accountant or anyone else until you have retained legal counsel. This is often referred to as the “egg shell audit” situation. While it may at present be only a civil examination, Revenue Agents are trained to watch for “badges of fraud,” and to refer potential fraud to the Criminal Investigation Division. The “accountant-client privilege” does not extend to criminal investigations, so your accountant may be forced to tell the IRS and the grand jury everything you have told him.

If you or a loved one has been contacted by the IRS contact our criminal tax fraud defense team at the Strom Law Firm, LLC for a free consultation to discuss the best way to proceed.  We offer flexible payment options and accept Visa and Mastercard.

 

10 Facts to Consider When the SEC Knocks

by Pete Strom on September 26, 2011

As we have repeatedly told you, speaking with an investigator before talking to your attorney is never a good idea regardless of your innocence.

There is a lot at state if you are under investigation for criminal fraud.

Consider the following:

1. Federal criminal investigations are conducted by the U.S. Attorney’s Office and the grand jury.   A Federal criminal investigation may or may not occur simultaneously with an SEC investigation.

2. Generally, you client can assert your Fifth Amendment privilege against self-incrimination during an SEC investigation or litigation. This may not be true with regard to responses to SEC discovery requests.

3. Securities and Exchange Commission (“SEC”) investigations are civil enforcement actions and may result in a civil complaint being filed against you in federal court, subjecting you to possible civil money penalties, and disgorgement of any profit which you allegedly received.

4. Evidence obtained during an SEC investigation or litigation may be used in a criminal prosecution.

5. Any statements made by a person during an SEC investigation or during litigation with the SEC may is fair game for the U.S. Attorney’s Office to use in a criminal prosecution, yet another reason why you should keep your mouth shut.

6. An SEC investigation does not automatically lead to a criminal, grand jury investigation, but you should still seek the advice of an attorney if you are faced wth an SEC investigation.

7. Your attorney will have an opportunity during the SEC’s investigation to argue why you should not be sued by the SEC.

8. An SEC investigation may also result in administrative proceedings against you, which are heard before the SEC’s administrative law judges.

9. In an administrative proceedings, the SEC may seek an order prohibiting you from working in the securities industry if you even participated in an alleged scheme to defraud or to manipulate stock prices.

10. If you serve as a company officer or member of the board of directors the SEC can seek to prohibit you from serving in this capacity if they sue you alleging a fraudulent scheme or scheme to manipulate stock pricing.

By: South Carolina Federal Defense Attorney Pete Strom

Fake Medicaid Claims Cost Healthcare Company Over $150 Million

by Pete Strom on September 21, 2011

Maxim Healthcare has suffered a multimillion dollar deficit in fines, penalties and reimbursements for their involvement in medical aid fraud.

Richard West, a New Jersey Vietnam veteran, helped spur this fraudulent discovery when he noticed his Medicaid benefits were maxed out in 2004, according to the New York Post. After further review of his personal records he later learned that his healthcare provider, Maxim Healthcare, had been billing the government for care he never received.

Enraged with the company for trying to make money off his disability, West hired a lawyer to file a federal lawsuit against Maxim, resulting in the largest financial settlement in home healthcare fraud history.

“From my wheelchair, on a ventilator and oxygen, I have spent the last seven years in this fight,” said West.  “Sometimes, the good guy wins.”

Maxim, who has 300 offices and is represented in 40 states, was found to have made $61 million from phony reimbursements.

The company was fined $20 million, and in addition agreed to pay $121.5 million in reimbursements for the fake claims and $8.4 million to the Veterans Administration.

West received $15 million for his efforts as federal law states he is entitled to a percentage of the cash Maxim was ordered to pay back.

 

By: Pete Strom, Federal Criminal Defense Attorney

 

South Carolina’s Federal Criminal Defense Lawyers

Centrally located in Columbia, South Carolina, our firm has been serving clients for over 15 years.  Founded by former U.S. Attorney and assistant solicitor, Pete Strom, our experienced criminal  defense attorneys include a former public defender, and a former Assistant Attorney General and Richland County Assistant Solicitor, as well as a tax lawyer familiar with IRS investigations.  Our experience and familiarity with prosecutorial techniques provide the basis for experienced and effective legal representation. We will fight hard to have your charges reduced, or even dismissed.

An Arrest Puts Your Rights, Your Freedom, Your Family, and Your Livelihood At Stake.

The criminal defense attorneys at the Strom Law Firm, LLC will fight to protect your rights and your personal and professional future.

Whether you are charged with:

or any other Federal charge, you are likely facing a personal, family, social, business, and/or financial crisis unlike any you have ever faced before.

I Don’t Understand the Federal Sentencing System

by Pete Strom on September 19, 2011

ONCE ARRESTED

 

Every individual who has been charged with a crime is entitled to a reasonable bond. What is considered reasonable depends upon the type of crime committed, whether you are a flight risk, and whether you are a danger to the community.

Nobody wants to sit in jail for months or years before the government decides to call his case. We understand that individuals who have been charged with crimes still have family obligations and need to be released on bond in order to effectively assist in preparing for trial.

Bond hearings are often held within hours of an individual’s arrest. At the hearing, judges will evaluate whether the individual is a danger to the community or a flight risk. If an individual is charged with a crime that carries a possible punishment of life imprisonment, a bond hearing must be held before the Court of General Sessions.

FEDERAL SENTENCING SYSTEM

The United States Federal Sentencing Guidelinesare regulations that set out a consistent sentencing policy for individuals and organizations convicted of felonies and serious Class A misdemeanorsin the federal courts system. The guidelines do not apply to less serious misdemeanors.

Under the guidelines, the severity of the offense and the extent of your criminal history will largely dictate the sentence you receive. In some cases, your criminal history alone may be the key factor. Federal law mandates severe sentences for persons with certain types of prior convictions. As you can see, your criminal record may play a significant role in your decision to plead guilty or go to trial.

Your sentence also will depend, in part, on whether your decision was to plead guilty or go to trial. The decision to plead guilty or go to trial is a critical decision in your case. You must discuss the application of the guidelines with your attorney to ensure that your decision is fully informed.

FEDERAL SENTENCING IN SC

The court will schedule a sentencing hearing if you have been found guilty. Prior to the hearing, the court will order that a Presentence Investigation Report be prepared by the U.S. Probation Office. Sentencing guidelines, which are law, will be used to determine your sentence.

 

WHAT IS A PRE-SENTENCE REPORT?

Your attorney will get a copy of the pre sentence report investigation or PSR, and you will have an opportunity to review it for accuracy before you are sentenced. You may want to speak to the judge at your sentencing hearing. If so, you should discuss that with your attorney well before the sentencing hearing. Do not wait until the day of the sentencing to make this important decision.

If you enter a guilty plea in your criminal case, or if you are convicted by a jury, a U.S. Probation Agent will be assigned to your case to create pre-sentence report investigation

This report will be used by you, your federal criminal attorney, the United States Attorney’s Office and the Judge to look at the facts of your case, your personal history and financial condition, and your Sentencing Guideline Range. You should review this report carefully and look for errors legally or factually that may be present and discuss this document with your lawyer in great detail.

ONCE THE CASE GOES TO TRIAL

How Long Will I Wait Before My Jury Trial?

The law provides that, unless exceptions are granted by the court, you will be tried no earlier than 30 days or later than 70 days after your first federal court appearance. Actually, however, there are many things that can extend the 70-day speedy trial limit. Remember that your attorney has criminal defense expertise. Your criminal defense involves strategic and well planned decisions regarding how and when issues should be presented. Your attorney will keep you informed of the reasons for certain decisions.

If you need legal advice, we recommend that you seek the advice of a licensed attorney.  If you have any questions about this blog and/or need to talk with an attorney, contact us today for a free, no cost consultation to discuss your legal rights. At Strom Law Firm, LLC, our attorneys provide comprehensive legal services designed to protect your rights and your interests.  Our lawyers are licensed in South Carolina, New York, and Georgia.

 

By: South Carolina Federal Defense Lawyer Pete Strom

Vietnam Veteran Uncovers Multi-Million Dollar Qui Tam Scam

by Pete Strom on September 14, 2011

A New Jerseywheelchair-bound Vietnam veteran with muscular dystrophy uncovered a multi-million dollar medical aid fraud.

The New Yorkpost reported Richard West, 63, first discovered his Medicaid benefits were wrongly maxed out in 2004 during a visit to the dentist and spent the past seven years investigating why.

Following the dentist visit, West returned home and looked at his own records.  West found the agency that provided his benefits Maxim Healthcare, had billed the government for care he never received, including visits from nurses he never met.

After unsuccessfully trying for months to get government officials to investigate the scam, he hired a lawyer and filed a federal lawsuit. Those efforts resulted in the largest financial settlement in home healthcare fraud history.

West stated, “From my wheelchair, on a ventilator and oxygen, I have spent the last seven years in this fight. Sometimes, the good guy wins.”

“The more I uncovered, the more pissed off I got that someone was making money on my disability,” he said. “It’s people like me that will keep these big companies honest.”

Maxim Healthcare which has 300 offices in 40 states across the country was found to have made $61 million from phony reimbursements.

Fox News reported the corporation agreed to pay $121.5 million in reimbursements and penalties for the fake Medicaid claims and $8.4 million to the Veterans Administration. It was also fined $20 million.

West received $15 million for his efforts because federal law states he is entitled to a percentage of the cash the company was ordered to pay back. He said he will spend his settlement on a new van, home improvements and donations to charities for the disabled.

By: South Carolina Criminal Defense Attorney Pete Strom

 

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