Job Losses: Another Cost of White Collar Crime

Depiction from foreclosure.org]

We have discussed some of the serious costs of white collar crime before in this blog. Costs of fraud and corruption include not only the economic or financial costs, but also the social costs, including increased cynicism, or lack of trust, in our basic social institutions. But have you ever also considered that white collar crime can also, in some cases, cost jobs? Consider the following case.

According to the Atlanta Journal-Constitution, Peter DeSantis, of Engineered Architectural Systems in Alpharetta, Georgia, explained yesterday that he had to lay off employees during this recession due to recent thefts allegedly committed by a former employee. According to the news report, the former employee, Karalee Sciukas, was indicted this past month by a Forsyth County grand jury for allegedly stealing about $250,000.00, over several years, while employed as comptroller with the architectural company. According to the report, she allegedly wrote checks to herself and to other businesses which she reportedly controlled, and which were allegedly disguised as vendor payments.

Of course, Ms. Sciukas is presumed innocent and is entitled to her day in court. And the facts of that particular case are not the point of this post, anyway. The point is that white collar crime can have many serious costs and consequences, including lay-offs of employees during a bad economy.

As a former federal prosecutor, (and currently, as an Augusta, GA criminal defense lawyer), I have seen the devastating losses caused by fraud and corruption. I believe we can all agree that job losses are a serious problem and a serious cost of white collar crime.

A Goolsby "War Story:" More Examples of Kickbacks in Fraud Cases

[Stacks of Cash Depiction from wikipedia]

Recently, I started a series of posts in which I describe examples of kickbacks which were paid in major fraud cases I saw as a former federal prosecutor. Currently, I am a criminal defense lawyer in Augusta, Georgia, where I practice law with my sons, but I handled a number of significant white collar criminal cases as an Assistant U.S. Attorney for over 20 years.

In one major "honest services" mail fraud case, the defendant construction company paid a total of $2.7 million in kickback payments to an employee of another company, in exchange for being awarded profitable construction contracts by the other company's employee. One of the many kickbacks, or rewards, paid in this case included a total of $13,945.00 paid to two dating services, (for the employee's benefit and enjoyment), including one dating service located in Atlanta and another one located in San Diego. In addition, the defendant construction company actually paid for the (other company's) employee's travel costs to fly around the country to date all the women he met through the dating services!

Now, you must admit, while fraud is wrong, those are nice kickbacks!

The GBI's Latest Probe of a GA State Senator

[Photo of Scales of Justice from ehow.com]

According to the Atlanta Journal-Constitution, the Georgia Bureau of Investigation has reportedly been requested by the State Attorney General to investigate false expense reports allegedly submitted by State Senator Don Balfour of Snellville.  Of course, Senator Balfour is presumed to be innocent of any wrongdoing, and his criminal defense lawyer has essentially indicated simply that mistakes were made and that there was no intentional wrongdoing.

The newspaper also pointed out that this is the first GBI investigation of a State Senator since a case which I handled as a (former) federal prosecutor against former Georgia Senate Majority Leader Charles Walker, here in Augusta, back in 2007. The GBI has some really talented agents. My case against Senator Walker also involved other law enforcement agencies and a number of other more complex criminal charges. It will be interesting to see what, if anything, happens in this latest investigation.

  

Search Warrants v. Subpoenas: Practical Considerations on Which Method the Feds Will Use

[Photo from southeastsun.com]

According to various news reports, earlier today, state and federal law enforcement officials executed a search warrant at a social services (DFACS) office in Columbus, Georgia. According to the reports, the agents were looking for evidence pertaining to an investigation of DFACS employees for allegedly falsifying records to obtain federal funding. It struck me as a little bit odd that government agents were doing a raid on a government office.

But the facts of that investigation really are not the point I wanted to make here. Instead, I want to discuss in this post some of the practical reasons why the feds sometimes select search warrants, as opposed to utilizing grand jury subpoenas, or some other method, to obtain evidence of a crime.

As a former federal prosecutor for over 20 years, (currently, I am an Augusta, Georgia criminal defense lawyer), I often had to advise or plan with federal agents about which evidence-gathering method to use. A common reason to utilize a search warrant, (instead of a subpoena), is if you are afraid that the "bad guys," or targets of the investigation, will engage in a "shredding party," if you tip them off, or that you may give them time otherwise to remove or destroy incriminating records.

But, trust me, there are also some practical reasons NOT to use a search warrant! For instance, if you go in with a search warrant, you may be required to seize everything!  This can amount to millions of pages of documents that you are then going to have to inventory, store, and actually read! On the other hand, if you use a subpoena, you can make a rifle shot request for a relatively few, selected documents and avoid all the trouble and mess of a search warrant!

Another problem with utilizing a search warrant involves the serious disruption it causes to what may be otherwise be a legitimate office or business.

Every white collar crime investigation is different! And that is what made it exciting to be a federal prosecutor! These are just a few of the practical reasons why one evidence-gathering method may be chosen over another. What do you think?

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?

Internet Fraud and a Letter to Good Old Igor

Sadly, we are all potential victims of fraud on the internet.  It is everywhere! And even though I am a former federal prosecutor for over 20 years, (and currently, a criminal defense lawyer with my sons in Augusta, Georgia), I receive unsolicited emails from con artists all the time!  Here is a sample which I just received at the Goolsby Law Firm:

Hello, 

Greetings of the day. My name is Igor Iv__, I represent Mr. Mikhail 

K., he is the former CEO of Y. Oil Company here in 

Russia. A briefing on Y. Oil Company can be checked via this link:

(omitted)

I have a very sensitive and confidential briefing from the top 

(Oligarch) to ask for your partnership in re-profiling some fund 

running into several millions of United States Dollars. This will be 

done in barges to ensure a smooth business venture. I suggest that 

this business deal be kept discreet as my client is not in favor of 

the current Russian government. See link for more details:

(omitted)

Note that this transaction is a Bank to Bank transaction and all 

documents backing this transaction will be sent to you for subsequent 

confirmation.

I look forward to your soonest and positive response.

Regards,

Igor

Wouldn't it be nice if we could all stop such phony email solicitations? Although I won't reply to "Igor," because it would probably just cause me to receive even more such emails, I wish I could send ole' Igor the following:

Dear Igor,

Greetings of the day to you, too.  However, please be advised that your pathetic, phony email solicitation has erroneously been sent by you to a former U.S. federal prosecutor who once enjoyed prosecuting con artists for ripping off innocent victims, and that I am still sick and tired of people who attempt to prey on others over the internet.

Accordingly, please be advised that your fraudulent email solicitation has been forwarded to the Federal Bureau of Investigation, along with INTERPOL, and that, if and when you are caught, you will face prosecution to the fullest extent of the law! So, please do not send me any more emails and please consider trying to make an honest living, before you are arrested!

No Regards,

Richard

A Goolsby "War Story" About Heroism, Fear, and Fighting Crooked Cops

[Although the following "war story" draws upon my personal experiences, please view it as a fictional account, and please also remember that all people, including alleged crooked cops, are presumed innocent until proven guilty!]

I learned many years ago that heroes don't exist at three o'clock in the morning. That night, I certainly didn't feel like a hero. I was at home. I was alone. And I was downright scared -- for me, and for my wife, who was eight months pregnant with our first child. She was asleep in the next room.

I was a young, aggressive, but naive, prosecutor with a cause. I wanted to save the world, shake some trees, and lock up all the bad guys. A fellow Assistant D.A. and I were investigating one of our local sheriffs. And the sheriff knew about our investigation. Among other allegations, a major drug dealer had named the sheriff as an accomplice who had allegedly provided guns to protect a drug deal. The sheriff denied the allegations.

I could tolerate the harassment by the sheriff and his deputies. One of the deputies followed me to court whenever I entered that county. Another would playfully frisk me in the courtroom. And they all gave me their best, most menacing, "go to Hades" glares. I could handle all that.

But earlier, that afternoon, my secretary had received a threatening, anonymous telephone call. The unknown caller had simply said, "Tell Mr. Goolsby I'm gonna come to his house tonight and blow his f_ _ king head off!" Now, that was hard to handle!

I will never forget that long, lonely night! As I sat in my recliner, with my .38 special nearby, I remember wondering whether the cause was really worth it. I would never give up the fight. But I had learned that fighting corruption often comes with costs. 

I had also learned that heroes don't exist at three o'clock in the morning.