White Collar Crime

Published on: July 5, 2009

Medical Fraud Investigation in Los Angeles Continuing in Michael Jackson Case

The Federal authorities and Los Angeles law enforcement are combing through vast amounts of evidence to ascertain whether there was Los Angeles Medical Fraud and Holmby Hills white-collar fraud in the death of singer Michael Jackson. Investigators have been looking at a total of five doctors who were writing prescriptions for the famous singer, some under fake names. Los Angeles pre-filing defense attorneys are making great headway in protecting their physician clients from potentially devastating results. It is very important if a professional is under investigation to immediately hire a top notch Los Angeles investigation defense attorney to manage the investigation in a parallel manner to law enforcement. Thereby, providing key evidence and witnesses who can either clear the professional from further harm to their reputation, or worse, a criminal filing and lose of license.

Dozens of prescription bottles have been found in the Los Angeles home rented for the singer since his death last week. The investigators have let slip that many of the bottles have no labels, other have names other then the singers true names. It has been reported that Jackson had been suffering from an addition to prescription pain pills for many years. In fact, the singers family has publicly come forward and blamed his many doctors for enabling the singer with these powerful drugs. One of the drugs of most concern to law enforcement is the drug Diprivan. The drug is one of the most power sedatives on the market. Usually only used in operating rooms by anesthesiologists in surgery. Some of the bottles in Jackson’s home were full of the drug, while others were completely empty.

Published on: June 29, 2009

Bernie (Bernard) Madoff Sentenced to 150 Years for Los Angeles White Collar Crimes

by Michael Kraut

Bernard Madoff was sentenced on June 29, 2009 to 150 years in federal prison for his white-collar crimes in Los Angeles as well as throughout the United States. His Los Angeles Ponzi scheme effected thousands of victims. Many were here in Southern California, but the fraud was determined to have occurred throughout the world. Madoff was represented by a top notch Los Angeles white-collar defense attorney.

The sentence was the absolute maximum that United States District Court Judge Denny Chin was able to imposed under the Federal sentencing guidelines. US Marshalls had to quiet the gallery when the spectators let out screams of joy as the 71-year-old Madoff was sentenced. Southern California White-collar crimes usually do not carry heavy sentences. Usually, people are able to payback some or all o the victim’s money and the courts tend to go more lenient on the defendants. For example, a well known Hollywood producer was recently arrested for stealing half a million dollars from a major movie studio here in Los Angeles. The Southern California white-collar defense attorney was able to convince the District Attorney to allow the defendant to plead to one felony count of forgery with no jail time, and after three years of probation, the case can be reduced to a misdemeanor and dismissed from his record entirely.

Those interviewed outside of the courthouse claimed that Madoff was a given a life sentence just as the victims had been a life sentence for the loss of their entire fortunes at the hands of Madoff.

Published on: January 28, 2009

Los Angeles Stanford Law Grad Pleads Guilty to Tax Evasion for For Failing to Declare Escort Money

by Michael Kraut

A Los Angeles woman plead guilty to tax evasion after denying and shifting blame for 5 years with Federal prosecutors. Cristina Warthen, 35, admitted she failed to pay income tax on money she earned while running an escort service while she was attending Standford Law School.

She will be sentenced in June, however, it has already been determined that she will pay the IRS over $300,000 and could face a fine that could be as high as $100,000. She will also be ordered to spend one year on home confinement and three years of probation. It is clear that her Los Angeles white collar defense attorney was top notch. If she had been convicted of all of the charges, she could have served many years in Federal prison. Now she will be ordered to send a year in home confinement in a home she shares with her husband, and Ask.com founder, David Warthen.

Because she was being charged with a Los Angeles white collar crime, asset forfeiture laws were triggered at the time law enforcement found substantial cash hidden in her residence. Asset forfeiture laws were enacted to make sure that ill gotten money and property does not remain in the hands of those charged and eventually convicted of a crime.

Newspaper articles in the 80’s were replete with stories of assets that were seized in drug related cases. Soon thereafter, law enforcement began to expand the powerful tool. Items that are commonly seized include cash, cars, houses, property, and in one case a race horse.

Once the property is taken by the Government, it must be maintained. That means that the asset cannot loose its value because of anything the Government does with it. If the Government looses the criminal case, then the asset must be returned to the person or company from which it was taken. In the case of the race horse taken, it was given back almost immediately because the Government would have been responsible for making sure that the horse was fed, trained and cared for like it was at the owners stable.

That forfeiture complaint had said Schultz operated an interstate prostitution business since at least August 2001 — three months after earning her Stanford Law School degree — by charging as much as $1,300 for two hours, $5,000 for overnight and $15,000 for three days to serve clients in the Bay Area, Los Angeles, Washington, D.C., New York City, Chicago and Seattle. Her own April 2003 posting to an escort-reviews Web site had said that when she finished her law degree, she “owed over 300 thousand in loans and hated the prospect of being a lawyer for the next twenty yrs.”(sic)

A federal judge dismissed the civil forfeiture action in 2006 as Warthen and the government reached a secret settlement. Prosecutors filed the tax evasion charge against Warthen in September.

Published on: January 25, 2009

Los Angeles Welfare Fraud Conviction Result in Serious Consequences

by Michael Kraut

Three people, who were previously arrested for Welfare Fraud in the Southern California area around Los Angeles called Antelope Valley, have not been convicted and sentenced to serious time in custody. They were represented by a Los Angeles welfare fraud defense attorney who worked very hard to prevent the individuals from spending decades in prison for stealing from the welfare fraud system. Due to the exhaustive work of the attorneys, these people will serve little to no additional time in custody.

Authorities have stated that the individuals took enough money and benefits that they were not entitled to and used some of the money to purchase a very expensive house. They were convicted of welfare fraud and Los Angeles grand theft. In most cases those that commit a Southern California welfare fraud will be charged under the California Welfare and Institutions Code Section `0980(c)(2). In addition, most cases the fraud are committed by filing false documents under oath, a perjury charge will also be filed pursuant to Penal Code Section 118
Kim Johnson, James Earl Brown and Jacqueline Hervey, were all arrested in a one of the Counties largest fraud busts in recent history. These three individuals were convicted of stealing money from the Los Angeles Housing Authority, the Social Security Administration and the Home Social Services program. In total, over $400,000 was stolen.

It has become much more prevalent for those involved in welfare fraud to also file false claims for Section 8 funds. In this case, the three were able to accumulate over $100,000 in Section 8 funds in violation of the law. The heavy in the case, Johnson, was sentenced to 4 years in prison
In most cases, welfare fraud is committed by the filing of false documents with social service agencies which are responsible for dispersing large sums of money and other benefits to welfare recipients. The recipient commonly makes false statements as to assets in his or her possession, incorrectly declares the number of children in a household, makes false statements concerning whether they have other income being earned, and in some cases, the recipient claims they are the care givers for incapacitated persons and will be paid for those services, when in fact they are no doing so, or the person does not even exist.

The statute of limitations is 5 years from either the date the crime occurred, or when the fraud was discovered. The punishment for each count can be 5 years of state prison, parole or probation, full restitution for all of the monies illegally taken, the cost of investigating the crime by the State and law enforcement, a complete bar from every being able to collect social services again, and finally, being labeled for life as a criminal.

Published on: January 21, 2009

New Beginning for Los Angeles and Southern California Criminal Law

by Michael Kraut

As we see the beginning of a new President and Vice President for the United States, we will most likely see a new beginning for criminal prosecutions for Los Angeles DUIs and Southern California criminal law.

Already the new administration has claimed that there will be a clamp down on crime. The local administrations have also claimed that they will vigorously prosecute even minor offenses. It will not matter if you are arrested for a Los Angeles DUI, a Long Beach crime, a San Fernando robbery, or a Pasadena DUI, the police will be trying to enforce the law to the fullest. For that reason, it is important to hire a Los Angeles criminal defense attorney who has the experience and knowledge to defend you.

The new emphasis on punishment for minor offenses is going to put regular citizens in a bad position. In the past, judges and prosecutors understood that there is a clear difference between people who are law abiding but who make a mistake, and those who a repeat offenders. Now, even minor offenses are going to punished more severely.

Published on: December 25, 2008

Christmas and Holiday Wishes From Los Angeles and Southern California

by Michael Kraut

I want to wish everyone in the Los Angeles and Southern California area who reads or is redirected to this Los Angeles and Southern California Criminal Defense Blog a Merry Christmas and Happy Hanukkah. This blog is now six months old and I am pleased that it seems to have helped so many people. I have received many comments from people around the area that they have been helped by the information here.

In an attempt to wrap it up for the year I want to make sure that people are safe for this holiday season. I also want those people people who get into a Los Angeles DUI that if they should be stopped by the police in at a Southern California DUI checkpoint, or by Los Angeles law enforcement, that a Los Angeles DUI defense attorney is available 24/7 to assist if you or a loved one.

Because Southern California DUIs are taken so seriously, you need to know your rights and responsibilities. Remember you do not need to take the Los Angeles Law Enforcement PAS test in the field. If you are stopped by the police make sure to be polite. If they ask you to take the Los Angeles field sobriety tests you must comply. But if they ask or demand that you take a PAS test you are allowed to refuse. It is the recommendation of this Los Angeles DUI defense attorney to refuse this test. It can only be used against you. If you blow a significant BAC then you will be arrested. If you are taken to the police station you will be offered a choice of the breath or blood test. The choice is yours. But try to delay the test as long as possible. The law requires that the blood test must be taken with a specific time. If it is not done within the allotted time then the results will be thrown out in court.

Published on: December 20, 2008

Celebrity Crime and Show Business Meltdowns in Los Angeles Almost Done for 2008

by Michael Kraut

2008 is almost over and the star studded, celebrity crimes including Los Angeles DUIs, Southern California drug possessions, and other movie star crimes is in its final countdown for the year end.

In Los Angeles, celebrities not only entertain us in the movies, on TV and in theaters, but also on the nightly news. Just as there is a countdown to the top music hits and movies for the year, so do we countdown the top celebrity crimes and sex scandals.

A brief summary of those crimes are as follows:

Britney Spears, Paris Hilton and Lindsay Lohan have been the top eye catchers this year. Jail time, rehab time, and parenting counseling have led all stars to the front line of the blogging circuit. All have found themselves in the Los Angeles DUI headines being represented by top notch Los Angeles and Southern California DUI criminal defense attorneys.

Amy Winehouse may have won 5 Grammys this year, but she will always be remembered for her drug induced behavior including smoking crack cocaine and becoming thinner then anyone could possibly believe. Once again she attempted to find her way to rehab only to try, try again.

Actor David Duchovny made the news this year for his sex scandal followed by a confession that he was entering rehab to avoid falling into a hole of sex addiction. While Los Angeles sex crimes are waning in the last year, celebrity sex scandals are hitting an all time high. The role that Duchovny plays in his Emmy nominated role as sex-obsessed writer Hank Moody in Showtime’s Californication, is eerily similar to his real life confessions. Oddly enough, he will be back again this year playing the same role on screen he is trying to vex from his system in his personal life.

Madonna did not escape the year of controversy when she was rumored to have a sex affair with the Yankee star Alex Rodriquez. This might not have seemed to be such a wild story but it was soon followed up by behind the scene statements that she and her husband of many years, Guy Richie, were breaking up.

Published on: October 2, 2008

Senate Passes Wall Street Bailout, Now Its Time For the Feds to Prosecute White Collar Executives in Los Angeles

by Michael Kraut

Now that the Senate has passed the bailout for Wall Street, and it is anticipated that the House will follow things are going to happen to those who caused this financial havoc. The Feds are now going to be stepping up prosecutions for white collar crimes here in Los Angeles as well as on Wall Street. For the first time in many years we are going to see a huge increase in the number of executives being prosecuted for various state and Federal crimes relating to investment and mortgage fraud. The American people are not going to stand still and passively watch their homes be taken away in foreclosure, their 401k retirement accounts become depleted, and their savings accounts vanish, while the CEOs rake in millions of dollars in pay and golden parachute.