Articles Posted in Fraud

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Brooklyn DA Busts 32 Alleged Welfare Fraud Cheats: Nearly $1 Million in Fraud Alleged

Fraud is a broad term that refers to a variety of offenses involving dishonesty or “fraudulent acts”. In essence, fraud is the intentional deception of a person or entity by another made for monetary or personal gain.

Fraud offenses always include some sort of false statement, misrepresentation, or deceitful conduct. The main purpose of fraud is to gain something of value (usually money or property) by misleading or deceiving someone into thinking something which the fraud perpetrator knows to be false. While not every instance of dishonesty is fraud, knowing the warning signs may help stop someone from gaining any unfair advantage over your personal, financial, or business affairs.

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The pervasiveness of insurance fraud drives up costs for all consumers and costs the insurance industry billions of dollars each year. One authority estimates that the annual value of insurance fraud approaches $80 billion. Detecting insurance fraud is difficult because of the surreptitious nature by which the criminal perpetrates the fraud.

Depending on the specific issues involved, an alleged wrongful act may be handled as an administrative action or law enforcement may handle it as a criminal matter.

Generally, securities fraud occurs when someone makes a false statement about a company or the value of its stock, and others makes financial decisions based on the false information. Although the crime itself isn’t complicated, securities fraud can be particularly difficult to grasp if you lack an understanding of securities regulation. Below, you’ll find information on common forms of securities fraud and how to protect your assets.

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Checking your credit report is the best way to detect criminal fraudulent activity done in your name. Evidence of identity theft typically comes in the form of fraudulent or inaccurate information on your credit report, such as incorrect addresses, name, initials or Social Security number.

Here are some other signs of identity theft:

• Failing to receive bills or other mail related to your accounts (an identity thief may have taken over your account and changed the billing address).Receiving credit cards for which you did not apply.

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Bank of New York Melon Computer Tech Indicted for Identity Theft of 150 Employees and $1 Million Fraud

Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain.

Unlike a robbery or burglary, identity theft often occurs without the victim’s knowledge. Most identity theft victims only find out after they see strange charges on their credit card statements or apply for a loan. While prevention is always the best policy, sometimes personal information is exposed through security breaches at banks or companies with which you do business. Thus, criminal identity theft can happen to even well-prepared consumers.

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Whatever the recipe, the dough was a little too sticky. According to the Manhattan District Attorney’s Office and a Grand Jury has indicted a bagel wholesaler for Grand Larceny, Offering a False Instrument for Filing and violating the labor law through unemployment insurance tax rate manipulation. Prosecutors allege that the bagel wholesaler, the owner of H & H Bagels, collected, but failed to pay, $369,318.77 withheld from his bagel business employees. This occurred during a six year period from 2003 through his arrest in 2009.

According to the Manhattan District Attorney’s Office: “The investigation further revealed that during the period of this criminal indictment, the bagel wholesaler filed State and City withholding tax returns under six successive company names. Sporadically, he made nominal payments to the New York State Department of Taxation and Finance even though he knew he was obligated to turn over all withheld tax. Through shell companies, he committed unemployment insurance tax rate manipulation by transferring a large segment of his workforce from an existing business to a new business for the purpose of obtaining a lower unemployment insurance tax rate. Although he formed a new company, many of the same workers were being employed at the new company and he was able to therefore obtain an advantageous rate for his unemployment insurance payments to the trust fund operated by the New York State Department of Labor.”

The first prosecution of unemployment insurance tax rate manipulation under the New York State Unemployment Tax Act (also known as the SUTA dumping statute) since it became effective on January 1, 2006, it was stated: “This case is a wakeup call to all employers who fail to fulfill their fiduciary obligation to pay over taxes withheld from their employee’s salaries. It also demonstrates how tax evasion hurts our workers when an employer deliberately fails to contribute the appropriate amount into the unemployment insurance trust fund.”

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Bagel Man Hides the Dough: H and H Bagels Owner Arrested for General Tax and Unemployment Insurance Tax Fraud

Insurance fraud occurs most often when an insured individual or entity makes a false or exaggerated insurance claim, seeking compensation for injuries or losses that were not actually suffered. Insurance fraud can also be committed upon customers, through 1) the sale of unlicensed or bogus insurance coverage to unsuspecting clients, or 2) an insurance broker or agent’s diversion or theft of insurance premiums paid by clients.

Insurance fraud refers to any duplicitous act performed with the intent to obtain an improper payment from an insurer. Insurance fraud is committed by individuals from all walks of life. Law enforcement officials have prosecuted doctors, lawyers, chiropractors, car salesmen, insurance agents and people in positions of trust. Anyone who seeks to benefit from insurance through making inflated or false claims of loss or injury can be prosecuted. The pervasiveness of insurance fraud drives up costs for all consumers and costs the insurance industry billions of dollars each year. One authority estimates that the annual value of insurance fraud approaches $80 billion. Detecting insurance fraud is difficult because of the surreptitious nature by which the criminal perpetrates the fraud.

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Under the law, white collar crime can describe a wide variety of crimes, but they all typically involve crime committed through deceit and motivated by financial gain. The most common white collar crimes are various types of fraud, embezzlement, tax evasion and money laundering. Many types of scams and frauds fall into the bucket of white collar crime, including Ponzi schemes and securities fraud such as insider trading. More common crimes, like insurance fraud and tax evasion, also constitute white collar crimes.

Fraud and financial crimes are a form of theft/larceny that occur when a person or entity takes money or property, or uses them in an illicit manner, with the intent to gain a benefit from it. These crimes typically involve some form of deceit, subterfuge or the abuse of a position of trust, which distinguishes them from common theft or robbery. In today’s complex economy, fraud and financial crimes can take many forms. The resources below will introduce you to the more common forms of financial crimes, such as forgery, credit card fraud, embezzlement and money laundering.

Many white collar crimes are frauds. Fraud is a general type of crime which generally involves deceiving someone for monetary gain. One common type of white collar fraud is securities fraud. Securities fraud is fraud around the trading of securities stocks, for example.

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At the outset, we emphasize that, in order for prosecutorial jurisdiction to lie in New York County, it is that county, and not the City generally, that must suffer a particular effect as a result of defendants’ alleged conduct. The statutory requirement that the conduct have a materially harmful impact may thus be satisfied only by a concrete and identifiable injury or the welfare of the county’s community. Moreover, to be materially harmful, the criminal impact must be more than minor or incidental, and the conduct must harm the well being of the community as a whole, not merely a particular individual. In addition, because the jurisdiction of the county seeking to prosecute must be established before the grand jury, the type of personal injury or offense contemplated by the particular effect statute must be perceptible and of the character and type which can be demonstrated by proof before a Grand Jury. Because particular effect jurisdiction is to be applied only in limited circumstances, it has been rarely invoked.

There is no dispute that criminal defendants’ conduct, if true, had a materially harmful impact on the governmental processes or community welfare of New York City as a whole. By underreporting income on their New York City tax returns, defendants deprived the City of revenue that would otherwise have been available to meet its financial obligations and fund its governmental operations. Such a loss of revenue, which could lead to cuts in city services or increases in taxes, clearly constitutes a perceptible injury to the City of New York. The question presented, however, is whether the evidence before the grand jury establishes a concrete and identifiable injury suffered specifically by New York County. We conclude that it does not.

The People’s theory of venue is based on New York County’s status as the seat of City government, and the resultant processing of city income tax revenue in that county. Under this theory, defendants’ alleged tax evasion has a particular effect on New York County because New York City taxes are processed and remitted to the City through the Transitional Finance Authority, which is located in New York County, and through city bank accounts also located there. Further, these fraud accounts are controlled by the New York City Commissioner of Finance, whose office is located in New York County, as is the Department of Finance’s Bureau of Treasury, which oversees the collection and management of the City’s tax revenue.

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Defendants ST, a Queens County resident, and International Mortgage Servicing Company (IMSC), a New Jersey limited liability company in which ST owns a half interest, were indicted by a New York County grand jury on 34 counts arising from an alleged scheme to steal millions of dollars through the imposition of allegedly inflated mortgages on Ocean House Center, a Queens County not-for-profit adult home for residents with mental disabilities.

On this appeal, defendants challenge New York County’s jurisdiction to prosecute five of these counts, each of which charges defendants with the class E felony of offering a false instrument for filing in the first degree; jurisdiction as to the remaining 29 counts, including the class B and C felonies of grand larceny in the first and second degrees, is uncontested. The challenged counts are based on defendants’ filing of allegedly false New York State and City tax returns, which did not reflect certain interest income derived from the mortgages held by IMSC on Ocean House.

Inasmuch as the evidence before the grand jury did not establish that defendants’ tax returns were either mailed from or received in Manhattan, or that defendants committed any other act in Manhattan establishing an element of the relevant offenses, the People relied on a theory of particular effect jurisdiction in order to establish venue in New York County with respect to these counts.1 This theory permits a criminal court of a particular county to exercise geographical jurisdiction, or venue, over an offense when even though none of the conduct constituting the offense occurred within that county such conduct had, or was likely to have, a particular effect upon such county or a political subdivision or part thereof, and was performed with intent that it would, or with knowledge that it was likely to, have such particular effect therein. Conduct constituting an offense has a particular effect upon a county when it produces consequences which, though not necessarily amounting to a result or element of such offense, have a materially harmful impact upon the governmental processes or community welfare of the particular county, or result in the defrauding of persons in such county.

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What are the pros and cons of filing bankruptcy?

Chapter 7. In chapter 7 you eliminate debt, but if you have non-exempt assets you may lose them.

Chapter 11. In chapter 11, you get the same relief that you obtain in any bankruptcy chapter, but without an asset or debt cap which gives you more breathing room. However, chapter 11 is more complicated, time consuming and expensive. This chapter is most frequently utilized by businesses that have assets to protect.

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