Ponzi Scheme Nets 110 Year Sentence for Allen Stanford

[Allen Stanford Mug Shot from wikipedia]

Did you hear the news about the sentencing yesterday of Defendant R. Allen Stanford in a Houston federal court?  He was sentenced to serve a whopping 110 years in federal prison!  

In March, a jury reportedly convicted Stanford on thirteen counts of mail and wire fraud for his role in a massive $7 billion ponzi scheme.  According to government prosecutors, Stanford treated investors "like road kill" in an international investment fraud scheme, whose scope was apparently exceeded only by the ponzi scam of investment fraud "king," Bernie Madoff. According to news reports, Stanford's criminal defense lawyers plan an appeal.

Stanford's 110 year sentence was surpassed by Madoff's 150 year sentence.  But is there really a difference?  

As a former federal prosecutor, (and currently as an Augusta, Georgia criminal defense attorney), I am reminded of a story once told by a judge about another sentencing.  The judge had sentenced a bank robber to serve 77 years in prison.  The defendant told the judge, "But I can't make 77 years!"  The judge replied, "Well, just make it the best you can!"

Well, I guess Mr. Stanford, like Mr. Madoff, will just have to make it the best he can, too.  What do you think?

De Niro to Portray Madoff in New HBO Movie

[Photo of De Niro from wikipedia]

Have you heard the news about who plans to star in a proposed new HBO movie about the life (and crimes) of convicted ponzi scheme king Bernie Madoff?  The answer is...Robert De Niro.

According to various news reports, De Niro, the Academy-award winning actor from Raging Bull, (and star of one of my favorite gangster movies, Goodfellas), will both produce and star in the new HBO movie.

You don't have to be a former federal prosecutor, (and currently an Augusta, Georgia criminal defense lawyer), to look forward to this movie!  What do you think? 

Restitution in the Bernie Madoff Fraud Case: A Case of Too Little, Too Late!

As the Bernie Madoff fraud case demonstrates, restitution often comes too little and too late in white collar crime cases.  You will recall that Madoff, the "king of the ponzi scheme," was sentenced in 2009 to serve 150 years in prison for masterminding the largest investment fraud scheme in U.S. history. 

Tragically, Madoff's tough prison sentence did little to assuage the losses inflicted on hundreds of crime victims, many of whom were elderly people who saw their life savings taken away.  I will never forget the report of one elderly victim who was forced to return to work as a grocery store clerk after losing his retirement nest egg to Madoff's crime. 

Since Madoff's sentencing, a bankruptcy trustee, assisted by the U.S. Marshal's Service, has been selling off Madoff's property, including homes, jewelry, and even his clothes, to try to help make some restitution to Madoff's victims.  (I started to bid on something in the online auction, but the red tape was too complicated!)  Unfortunately, this restitution effort is not enough.  For instance, according to reports, last week, the trustee distributed $312 million to victims, but this constituted just pennies on the dollar compared to the total amount stolen.  

Also, according to reports, up to one-half of the $17.3 billion taken by Madoff may ultimately be recovered and distributed to victims, but only after time-consuming litigation.  However, many of the elderly victims simply don't have the time.  At least eight of Madoff's elderly victims have already died during the past couple of years.  As a result, sadly, many of Madoff's victims will never be made whole.

And sadly, this case shows that restitution often comes too little and too late in white collar crime cases.

Just Another Typical Investment Fraud and Ponzi Scheme

[Photo from socyberty.com]

You may have thought you had a bad week.  But did you hear about what happened this week to Georgia businessman Jeffrey Wallace Edwards and his company, Frontier Holdings, Inc.? 

According to various news reports, Edwards and his company were found guilty in a Rome, Georgia federal courtroom on an indictment charging numerous federal criminal counts, including mail fraud, wire fraud, and money laundering.  The charges reportedly centered around on old-fashioned ponzi scheme, or investment fraud scam, in which investors, including thirty retirees, were induced by Edwards to invest their money, with outlandish promises of rates of return, which, of course, never materialized. The news reports indicate that Edwards spent their money, instead, on himself, for vacation cruises, fur coats, and other luxury items. 

As a former federal prosecutor, (and currently, as an Augusta, Georgia criminal defense lawyer), I have handled a number of fraud cases like this one.  Most of them followed this same pattern.

Edwards will be sentenced later, in accordance with the federal sentencing guidelines.  Now, compared to this defendant, don't you realize that your week wasn't so bad, after all?!