Showing posts with label white collar crime. Show all posts
Showing posts with label white collar crime. Show all posts

Friday, May 11, 2018

WHITE COLLAR CRIME DEFINED

[Photo of Sociologist Edwin Sutherland from wikipedia]

In 1939, famous sociologist Edwin Sutherland defined white collar crime as crime committed by a person of respectability and high social status in the course of his occupation.

This definition has been criticized by many other the years since then.  For example, as a part-time criminal justice professor, I have often taken issue with Sutherland's definition because it requires that the crime must have been committed by a person of "high social status" in order to be classified as white collar crime.  In my opinion, even an embezzlement committed by a low level bank teller would constitute white collar crime.

Do you agree? What is your opinion about Sutherland's definition of white collar crime?

Friday, January 4, 2013

Edwin Edwards In New Reality Show

[Gov. Edwin Edwards' Portrait from La. Sec. of State's site]
So, what does a former governor and convicted white collar criminal do following a ten year stint in a federal prison? Well, according to A&E and various news sources, they sometimes get their own reality television shows! At least, that is what is reportedly occurring in the case of former Louisiana Governor Edwin Edwards!

The flamboyant Edwards was released from prison in 2011 after serving a ten year sentence based on federal racketeering and extortion charges. That same year, following his release, the now 85 year old former governor reportedly married Trina, a 32 year old woman who had written to him while he was in prison.

And now, according to reports, A&E will produce "The Governor's Wife," which premieres in late February. What do you think? Will you tune in?

Tuesday, December 11, 2012

HSBC Banking Company Settles With DOJ

[Photo of HSBC's London Headquarters from wikipedia]
Although I am a former federal prosecutor, (and also, currently, an Augusta, Georgia criminal defense lawyer), I have also taught criminal justice courses part-time at a local university. One of the topics which we recently discussed in my course about White Collar Crime dealt with whether or not some white collar corporate defendants in some cases can unfairly avoid criminal liability -- for the corporation and/or its officers -- by simply paying a fine. In other words, do some white collar criminals get away with fraud and corruption with just a slap on the wrist in the form of a monetary penalty?

Have you read about the case involving HSBC, one of the world's largest banking companies, which is headquartered in Great Britain? According to various news reports, HSBC has been under investigation by the U.S. Department of Justice for allegedly laundering or transferring funds from Mexican drug cartels and for allegedly transferring funds to benefit Iran, in alleged violations of various sanctions. While everyone is entitled to their day in court, and while everyone should be presumed innocent until proven guilty, these are some pretty serious allegations, don't you agree?

Today, according to various news reports, HSBC is reportedly entering into a "deferred prosecution agreement" with the U.S. Department of Justice, whereby prosecution of HSBC and its executives will apparently be deferred, or avoided, and HSBC will simply pay a whopping $1.9 billion penalty.

Look, let's be fair: no one here is saying that any particular individuals in that situation should be prosecuted. We do not know all the facts. And no one should be judged based upon some news reports. And no one can fairly claim that $1.9 billion is merely a slap on the corporate wrist.

But the question still remains, as we discussed in my college class: Generally, do you believe that, in some criminal cases, (without focusing on that one), some corporations and corporate executives can avoid jail time by simply paying their way out of problems? Are there different standards or considerations in white collar crime, as opposed to street crime? What is your opinion?


Tuesday, November 27, 2012

White Collar Crime, the Salvation Army, and the Holidays

[Salvation Army depiction from wikipedia]
The holidays are here, so, hopefully, that means that there is a lot of "peace and goodwill toward men." But unfortunately, it also generally means that crime is everywhere. too. Just pick up any newspaper or check any news website. It will quickly show you that -- in addition to "joy to the world" -- the holidays also bring a lot of crimes and crime victims to the world, too.

As a former federal prosecutor, I am particularly drawn to news stories about thefts from charities, particularly around Christmas. In other words, as an Assistant U.S. Attorney, here, in Augusta, Georgia, I prosecuted a number of criminal cases, including one involving a former state senator, which dealt with thefts from charities.

One news report which caught my eye today occurred in Toronto, but it could have been anywhere. The reported case involves the alleged theft of approximately $2 million worth of toys from a Salvation Army warehouse by a Salvation Army Executive Director, David Rennie. Of course, all defendants are entitled to their day in court and the burden of proof remains on the prosecution.

But the facts of that single case aren't the point here. The point here is that, while we should all enjoy the holidays, we should also remember that there is a lot of crime "out there" and a lot of innocent crime victims who are suffering at this time of the year.

Maybe we should all put a little extra in the kettle. What do you think?



Monday, August 27, 2012

A Goolsby "War Story:" The Most Interesting Kickbacks Ever!


Presently, I am a criminal defense lawyer in Augusta, Georgia. As a former federal prosecutor for over 20 years, I prosecuted all kinds of white collar crime cases, including every kind of fraud and public corruption one can imagine! One of the interesting aspects of many of the fraud cases which I prosecuted involved the types of kickbacks which were paid, either to crooked government officials, or to employees who failed to give their employers their "honest services."

The latter category gave me an idea for a series of blog posts. In short, on occasion, I want to give you some examples of the most interesting kickbacks I have seen, as a former Assistant U.S. Attorney. Here goes....

In one major mail fraud case I prosecuted, among other expensive kickback gifts, the owner of a construction company bought two new Corvettes, (of different colors, of course), and a new Dodge Viper, for the employee of another company who approved payment of his invoices! 

Most folks would be content simply to have one sports car!  Don't you agree?

Saturday, February 25, 2012

Insurance Fraud--The Hard Way!

[Photo of hand from wikipedia]
As a former federal prosecutor, I handled a large number of white collar crime cases involving insurance fraud.  In my twenty year career as an AUSA, I thought that I saw it all!  But I was wrong!

Did you read about the South Carolina man who was charged in federal court this week with essentially conspiring with two other men to intentionally cut off the hand of one of the other two men (with a pole saw) and then file for insurance!?  According to news reports, the three men then submitted insurance claims on a homeowner's insurance policy (and "accidental" death and dismemberment policies) and fraudulently obtained a whopping $671,000! 

Of course, as an Augusta, Georgia criminal defense lawyer, I must emphasize that the indictment is only a charge which must be proven by the government and that the defendant is entitled to his day in court.

But, as to the alleged incident, it makes one wonder how the parties would determine who would be on which end of the pole saw!  Which end would you select?  And it also raises the question of whether any of us would be willing to "lose" a hand for this (or any) amount of money!

What do you think?

Thursday, January 12, 2012

White Collar Crime: Location Doesn't Matter!

[Photo of Sioux Falls, S.D. from wikipedia]
One of the common themes of this blog, (which is written by a former federal prosecutor and current Augusta, Georgia criminal defense lawyer), is that white collar crime can be found everywhere and in virtually every facet of our lives!  For example, today, I did a quick internet search of the State of South Dakota, (which is about as far away from Augusta, Georgia as one might need for this experiment!), on the topic of "fraud."  Would you guess that there might be fraud, and other white collar crime, even in South Dakota!?  The answer is "yes!"

One of the news reports which I found during this internet search involves a Sioux Falls, S.D. deputy sheriff.  According to the reports, the South Dakota deputy has recently entered a guilty plea to a charge of theft by deception.  The charge relates to an alleged fraudulent insurance application which appears to have no relationship to his duties as a law enforcement officer.

Of course, this simple exercise is not meant to demonstrate anything at all negative about the fine State of South Dakota!  Naturally, anyone searching the internet for "fraud" in Georgia, or in any other state, for that matter, would also quickly find plenty of examples! 

Again, the simple point is that fraud, (like other types of white collar crime), can be found everywhere and in just about every aspect of our lives.  But you already knew that, didn't you?

Wednesday, December 21, 2011

Fraud Against the Elderly: The Tire Repair Scam


As you know, I am a former federal prosecutor for over 20 years.  Presently, I am a criminal defense lawyer in Augusta, Georgia where I practice law with my son.  I have focused on handling white collar crime cases for much of my career as a Georgia attorney.

As we have often discussed in this blog, the elderly are frequently targeted by white collar criminals.  The number and types of scams appear to be endless!  I recently read about yet another fraudulent scheme focused on senior citizens which allegedly occurred in a nearby town.  Here is how it works:

The perpetrator drives around and looks for a potential target:  a senior citizen who is driving an automobile alone.  Then, the bad guy somehow gets the senior citizen's attention and gets them to pull over.  The bad guy then informs the elderly target that he has noticed something is wrong with the elderly target's tire.  Naturally, there really is nothing wrong with the tire.  The bad guy also offers to repair the tire for them.  Of course, the bad guy then demands an exhorbitant payment for supposedly fixing the tire.

In the case I recently read about, the bad guy was arrested and awaits trial.  Of course, no one disputes the fact that he is entitled to a fair trial.  But if a person is convicted of such a crime, then he should be thrown under the jailhouse!  Don't you agree?

Saturday, December 10, 2011

A White (Collar Crime) Christmas

[Depiction of Dr. Seus book from swotti.com]
If you want to get depressed, then try googling the words "Christmas theft" and see how many examples of Christmas greed you will find!  Everywhere, some people are stealing other peoples' gifts from their cars, decorations from their yards, and even money from their charity's donation kettles!  Sometimes, it seems that our dreams of a white Christmas have become overshadowed by nightmares involving white collar crime!

Maybe I am more alert to this problem, because I am an Augusta, Georgia criminal lawyer and former federal prosecutor.  But you already knew about this problem, too, didn't you?  I'll bet that you have read about or experienced this seasonal problem -- of theft and greed at Christmas -- in your own home town.

So, please be careful!  Lock away your shopping purchases in your car trunks.  And be more alert to those around you at the mall.  Look, Christmas is still a wonderful time of year.  Most folks still believe in peace and good will.  But be careful and don't let a grinch take away your Christmas from you!

Saturday, November 19, 2011

A Goolsby "War Story:" Some Vain White Collar Criminals I Have Prosecuted!


[Carly Simon and Song Depiction from wikipedia]
Surely, we all love the classic Carly Simon hit, "You're So Vain."  Over the years, as a former federal prosecutor for over 20 years, (and currently, as an Augusta, Georgia criminal defense lawyer), I have witnessed some vain criminal defendants!  Here are a few quick examples:

1.  I once prosecuted a nursing home bookkeeper who stole the patients' money so that she could feed her clothes-buying addiction.  She bought so many clothes that her husband had to build an extra room to hold them!

2.  I also once prosecuted a bank employee for embezzlement who was so vain that, when her daughter gave birth to a baby, the new grandmother allegedly broke off all ties with her daughter, (and new grandchild), so that her friends would not know that she was, in fact, old enough to have grandchildren!

Now, that's what I call vanity!  I'll bet you have met a few vain folks in the past, too!  

Wednesday, October 26, 2011

A White Collar Crime Haiku


A WHITE COLLAR CRIME HAIKU
Fraud, greed, everywhere.
No one hears the victims' cries.
Some things never change.

Wednesday, October 19, 2011

White Collar Crime: Size Doesn't Matter!

[Photo of White House from valdosta.edu]
Hey, are you looking for a cheap house to rent in Washington, D.C.?  Then, a guy from Atlanta, Georgia may have a real "bargain" for you!  But you may have to look him up in an Atlanta area jail!

According to news reports, the man has been charged with leasing homes in the Atlanta area which did not belong to him to various tenants.  According to reports, the man allegedly broke into one house, changed the locks, prepared a bogus lease, and rented the house to a poor victim for $1,000 per month, (with a $3,000 security deposit, up front)!  Later, the actual owner of the home discovered that someone was living in his house and apparently reported it to police! 

Of course, these are only the charges and the alleged perpetrator is presumed innocent unless proven guilty in a court of law.

Look, I realize that this case is not the biggest case of white collar crime "out there."  But that is the point of this post.  Occasionally, I like to include such posts to illustrate the point that most white collar crime is, in fact, just relatively small thefts or fraud committed by relatively ordinary folks.

Now, does anybody "out there" really need a good deal on a house in D.C.!?

Friday, July 29, 2011

Cemetery Theft and Hot Places In Hades

[Photo from stockphotos]
Sometimes, it seems like nothing -- not even a cemetary -- is sacred any more.   We have posted here before about the growing problem of cemetery thefts.  And now, it has happened again.  This time, it is in California.

According to various news reports, thieves have stolen approximately 113 bronze vases from graves located in a Newhall, California cemetery.  It seems like this is happening all over the country.

As I have concluded before, we can only hope that there is an especially hot place in Hades reserved for anyone who will steal from or desecrate a grave, or cemetery.  Sadly, nothing is sacred any more.

Are crimes and criminals getting bolder and bolder?  Are there an solutions?  Or are we all just going to Hell in a handbasket?  What do you think?

Friday, April 15, 2011

White Collar Crime, Problems of Proof, and the Meat We Eat!

                                                           [Photo from Healthsignal.net]

An article in today's New York Post illustrates an interesting problem in white collar crime prosecutions. The article deals with the problem of the presence of drug-resistant staph bacteria reportably being found in nearly one-half of sampled meats found in grocery stores.  Laying aside the merits of this story, the issue which this situation illustrates, for me, as a former federal prosecutor, is that, often, it is difficult, in many white collar crime cases, to know who to go after and who to try to prosecute when fraud or corruption occur. 
For instance, in this type of case, assuming that misconduct appears to exist, involving allegedly tainted meat, who would you investigate or try to lock up?  The rancher?  The meat processor?  The butcher?  Someone else in the food distribution chain?  Or, none of the above, because it would be too difficult, if not impossible, to hold any particular party responsible, criminally, for harm done to consumers.  In some criminal cases, it takes a whistleblower, such as a meatpacking plant employee, to come forward and "blow the whistle" on alleged improper practices, in order to jump start a criminal investigation. 
Of course, other potential problems also exist in developing such cases, too.  For example, generally, the government would be required to prove that the tainted product caused the harm, or injury.  Also, in many cases, just as in environmental pollution cases, the harm to consumers might not be discovered until many months, or even years, later.  By then, the "bad guys," and the proof, are long gone!
Again, let me emphasize that no one has suggested any criminal wrongdoing on anyone's part in this particular story.  It is offered here only as an illustration.  But I hope that you can see some of the difficulties inherent in proving some white collar crime cases.  Unlike homicides or robberies, which are releatively easy to prove, in contrast, white collar crime can often be difficult to ferret out.
Hamburger, anyone!?

Friday, November 19, 2010

White Collar Crime: Size Doesn't Matter!

In addition to being a former federal prosecutor, (and currently, a criminal defense attorney), for many years, I have also been a part-time criminal justice professor at a local university. One of the courses I teach is aptly called, "White Collar Crime."
But I still haven't gotten to the point of this post. My point is that the textbooks for college courses dealing with white collar crime tend to over-emphasize size when they provide illustrations of fraud, corruption, and other white collar crimes. In other words, criminal justice textbook authors tend to focus almost exclusively on the "mega cases," such as the Enron corporate fraud case, or the Madoff investment fraud case.
But look around you. The simple truth is that most white collar crime cases are relatively small theft and fraud cases committed in every community around the globe. For instance, today, I read in the news about a student who was arrested in London for leaving upper scale restaurants without paying for meals. Also, closer to home, I read that four men have been arrested for operating a small-scale gambling operation.
Again, the point is that college textbooks, by focusing only on the big cases, fail to recognize that most white collar crimes are actually just "small potato" cases committed by ordinary folks. The textbooks make it appear that all white collar crimes are big crimes, but most are not. So, in one sense, size really doesn't matter, at least when you are defining white collar crime!
Don't you agree?

Wednesday, September 8, 2010

Healthcare Fraud: The Bogus Mammogram Scam

As a criminal defense lawyer in Augusta, Georgia, naturally, when I talk about pending criminal cases around the country, I probably should first emphasize that each defendant is entitled to a presumption of innocence, unless and until proven guilty beyond a reasonable doubt. After all, that is what our Constitution provides! And besides, we all know that we cannot believe everything we read in the newspapers, don't we!?
But laying all caveats aside, have you heard about the new criminal case in Perry, Georgia in which a former hospital employee is accused of submitting false mammogram test results? In other words, according to news reports, in over 1289 cases, women were falsely told that doctors had read their mammogram scans; whereas, they actually had never seen them! Sadly, according to reports, false test results were allegedly submitted by the defendant for ten women who were later re-tested and learned they actually had breast cancer. Isn't this a horrible crime!?
Don't you agree that white collar crime, or "crime in the suites," can be even more costly than "crime in the streets!?"

Saturday, February 13, 2010

Auto and Product Safety Recalls v. Criminal Prosecution?

In light of all the deaths, suffocations, and amputations from poorly designed baby beds and strollers, you might justifiably wonder why the companies which manufacture such products are almost never prosecuted. The simple truth is that, in our society today, while you may see lawsuits and recalls, you will rarely see criminal prosecutions in such situations.
In my opinion, here are a few of the reasons why. First of all, most prosecutors and criminal investigators are not geered to handle such prosecutions. Even the U.S. Department of Justice lacks sufficient resources and is already overloaded with plenty of "traditional" criminal cases to prosecute. But in my opinion, as a former federal prosecutor, prosecutors nationwide can do a better job! They should more often make the time, "think outside the box," and target for prosecution those who clearly endanger our lives with defective products and automobiles.
But other challenges exist. In addition, such cases are difficult to prove. For example, unless you have a corporate insider who discloses confidential email memoranda to a government agent, it would be difficult, in most cases, to prove criminal intent. In other words, the government would need to prove that corporate executives knew their product would kill or injure, and that they deliberately concealed such evidence from the public or safety inspectors.
To further compound the difficulty in making a criminal case, often, the deaths and injuries occur years after the alleged criminal activities have occurred. This problem is present in many white collar crime prosecutions. For example, if a company pollutes the environment, by the time they are caught, years and years may have passed. The original parties responsible for the crimes may be dead and gone. Appropriately, consumer activist Ralph Nader has observed that, due to this problem of "delayed violence," which is often inherent in white collar crime, it is often difficult to bring criminal cases.
In conclusion, not all companies having safety issues deserve prosecution. And even when they do, many challenges exist to making a criminal prosecution stick against a corrupt company which knowingly produces defective products. However, in my opinion, the Department of Justice and state prosecutors nationwide should try even harder to bring criminal prosecutions in appropriate cases. After all, bad guys carry ink pens as well as guns!

Tuesday, February 9, 2010

New Task Force to Fight Mortgage Fraud in Georgia











I'll bet you'll never guess what the above four pictures have in common! Here's a hint: all four pictures relate to the State of Georgia, (where we, at The Goolsby Law Firm, practice law)! The simple answer is that Georgia leads the nation, (or is near the top), in the production of all four: broilers, (i.e. young chickens), along with cotton, peaches, and ...mortgage fraud! Actually, Georgia ranks only fourth in the nation as to the growing problem of mortgage fraud. But fortunately, Georgia Governor Sonny Perdue is reportedly trying to do something about it.
The Governor's office has announced plans to form a new mortgage fraud unit in the Georgia Bureau of Investigation. I can tell you from experience, as a former federal prosecutor, that such task force units are essential to combatting complex crimes involving fraud, such as mortgage fraud.
While task forces may be costly, mortgage fraud is costly, too. According to a recent estimate, the State of Georgia has lost a whopping $144 million to mortgage fraud (and bank fraud) in the past four years. Here's hoping that the State of Georgia will follow through by creating the mortgage fraud task force soon. And here's also hoping that, in the near future, Georgia will rank high only in the production of young chickens, cotton, and peaches!

Thursday, December 31, 2009

The Happy New Year Haiku!


The (No-So) Happy New Year Haiku From The Goolsby Law Firm, LLC:
New Year Certainties:
Death, Higher Taxes, Divorce
And White Collar Crime!
[All haikus and all kidding aside: We wish you a Happy New Year!]

Thursday, December 24, 2009

From The Goolsby Law Firm: "Merry Christmas!"


From all of us at The Goolsby Law Firm, LLC to all of you around the world: "Merry Christmas and Happy Holidays!"