Lighthouse Point White Collar Crime Lawyer

Lighthouse Point FL fraud case defense lawyer

Fraud is a broad umbrella term that describes an intentional misrepresentation someone makes with the intent to obtain someone else’s money, property, or anything else of value such as a professional service. Some examples of different types of fraud are:

• financial institution fraud
• mail fraud
• wire fraud
• mortgage fraud

FINANCIAL INSTITUTION FRAUD

Also known as bank fraud, financial institution fraud refers to deceptive schemes that involve banks, credit unions, trust companies, and any other financial institution. There are several different types of bank fraud. Some bank fraud schemes target the financial institutions themselves while others target businesses and customers. Examples of different types of bank fraud include:

• ATM fraud
• check fraud
• credit card fraud
• identity theft

Identity theft is often categorized as a type of bank fraud because when criminals steal victims’ personal data, the goal is usually to perpetrate some variety of bank fraud. The thieves use the victims’ personal information to gain unauthorized access to the victims’ existing accounts or open new accounts in the victims’ names. Identity theft rings also sell stolen data to other people and criminal organizations that use the information to engage in fraud.

MAIL FRAUD

Mail fraud occurs when an individual or business uses the federal postal service or a private carrier to engage in fraud. Prosecutors may charge mail fraud as a standalone offense; however, it is often added on to other white collar criminal cases. Some example of mail fraud schemes are:

• foreign lottery scam
• fake sweepstakes
• fake check scams
• fraudulent charities

Mail crime is a federal crime. If convicted, a defendant may be sentenced to a maximum of 20 years in prison and ordered to pay a fine of up to $1 million.

WIRE FRAUD

Wire fraud is similar to mail fraud. The main difference is the federal wire fraud statute incorporates wired and digital technology into the covered methods of communication. An individual may be charged with wire fraud if he or she uses any of the following communication devices while advancing a fraudulent scheme:

• landline phones
• wireless phones
• email
• text messages
• the Internet

Like mail fraud, wire fraud is a standalone offense, and it is often added to other white collar criminal cases. Today, most fraudulent schemes involve communication through a telephonic device or the internet. Therefore, most types of fraud also involve an element of wire fraud.

MORTGAGE FRAUD

Florida is home to some of the hottest real estate markets in the country. Mortgage fraud refers to deceptive schemes that occur during the mortgage loan process. There are two main types of mortgage fraud: fraud for housing and fraud for profit.

Fraud for housing occurs when a mortgage loan application materially misrepresents a fact with the goal of getting approved for a mortgage or getting a better interest rate on a mortgage loan. Mortgage applicants most commonly misrepresent:

• employment information
• income
• assets
• debt

Straw buying is a version of fraud for housing. A home buyer will fraudulently use a straw purchaser to pose as the buyer and apply for a mortgage to receive more favorable loan rates. When the loan is approved and the transaction closes, the real buyer will take possession of the property.

Fraud for profit generally involves mortgage industry professionals. Real estate agents, property appraisers, and loan officers may work together to illegally inflate the price of a property. When an unsuspecting buyer makes an offer based on the inflated price, the real estate professionals who colluded to illegally raise the price will split the additional profit.

Florida Ponzi scheme cases

Ponzi schemes target everyday people who are looking to invest money. The fraudster may actually work in the finance industry or misrepresent him- or herself as a finance professional. Victims are lured into Ponzi schemes with promises of safe investments that yield unusually high rates of returns. Fraudsters present the fake investments as best-kept secrets in finance and rare offers potential victims would be foolish to refuse. In the beginning, the victims may feel as if they are part of an exclusive club of savvy investors. Unbeknownst to the investors, the fraudster uses their money to finance his or her lavish lifestyle, which is part of the marketing that lures victims in.

Early investors in Ponzi schemes are more likely to be able to make withdrawals from the fake investment account in the interest of creating the appearance that the fake investment is yielding returns. Allowing investors to believe they are making legitimate withdrawals from their own investment account creates a sense of comfort that makes victims feel comfortable recruiting others to invest in the scheme. Ponzi schemes rely on continual recruitment to keep the scheme going. However, after the next round of investors join, the fraudster cuts off communication with the victims and typically leaves town. The investors usually do not realize the investment product is fake until they discover they are unable to contact the fraudster.

Money laundering in South Florida

Virtually every criminal organization uses the process of money laundering to “clean” dirty money. Depositing large sums of money into a bank account is likely to trigger alerts U.S. financial institutions have in place to help the federal government detect illegal activity. Conducting transactions with large sums of cash also draws unwanted attention. The money laundering process allows criminal organizations to hide their criminal activity and create the appearance that the money came from a legitimate resource.

PLACING MONEY INTO THE MONEY SUPPLY

The first step in the money laundering process is the placement stage. During the placement stage, money launderers are most vulnerable to being caught. To avoid creating the appearance of criminal activity, money launderers employ several strategies to introduce the money into the mainstream money supply. Some of the strategies criminal organizations use are:

• placing money into cash-based businesses
• dividing large sums of money into smaller amounts to be deposited into bank accounts
• smuggling cash into other countries where banking regulations are not as strict
• transferring money through money transfer businesses

Money laundering organizations often recruit people to deposit money on their behalf or to smuggle money across the border. Working with a money laundering organization, even under casual terms, is a serious crime. When members of immigrant communities work with money launderers, their immigration status may be jeopardized.

Layering money laundering transactions

Once the criminal organization has placed the illegal proceeds into the money supply, the next step in the money process is the layering stage. Layering refers to the complex series of transactions money launderers use to distance the money from the illegal activity. Some examples money launderers use during the layering phase are:

• purchasing real estate
• purchasing recreational vehicles
• purchasing high-end artwork
• trading securities
• purchasing cryptocurrency

By the time the layering phase is complete, it is virtually impossible to trace the money back to its illegal origins. At this point, the money appears to have come from legitimate transactions.

INTEGRATING LAUNDERED MONEY BACK INTO THE MONEY SUPPLY

The final step in the money laundering process is integration. Money launderers integrate laundered money by using it however they choose with minimal risk of detection.

Racketeering in Lighthouse Point FL

Racketeering is illegal under federal and state law. Florida’s racketeering statute closely mirrors the federal Racketeering Influenced and Corrupt Organizations (RICO) Act of 1970. Both statutes allow prosecutors to charge people for being involved in a criminal organization. Florida’s law takes things one step further by allowing state prosecutors to charge entire criminal organizations at once.

The federal RICO statute and Florida’s racketeering law requires prosecutors to prove a defendant who is accused of racketeering to prove the defendant’s affiliation with a criminal organization. The prosecutor must also show the defendant engaged in a pattern of racketeering activity. Both statutes include an extensive list of criminal acts that qualify as racketeering activity. Florida law requires the defendant to have engaged in at least two racketeering activities within five years, which is Florida’s statute of limitations. The federal statute of limitations for racketeering is also five years.

Under federal law, the maximum sentence for racketeering is up to 20 years in federal prison and a fine of either $250,000 or double the amount of proceeds the defendant received from the illegal activity. The state law maximum sentence for racketeering in Florida is up to 30 years in prison and a fine of up to $10,000. Additionally, state courts may order the defendant to pay treble damages, and the prosecutor may seize any property the defendant received through illegal activity.

Under investigation for white collar crime in Lighthouse Point?

Fraudsters, money launderers, and other white collar criminals often employ others to help with their criminal activities. For example, businesses that operate telemarketing scams may hire telemarketers. Someone who operates a Ponzi scheme may employ people to work in his or her office. People who work for illegal enterprises may not suspect their employer’s involvement with illegal activity. When a law enforcement agency investigates the employer, the employees may also be included in any raid, arrests, and police interviews.

The best way to protect yourself from the potential fallout from your employer’s criminal activity is to contact a Lighthouse Point white collar crimes defense lawyer as early as possible. Even if you have not been formally charged, consulting with a lawyer may help you separate yourself from criminal liability and protect your reputation and freedom.

Lighthouse Point defense lawyer for white collar crimes

Highly effective counsel is imperative in white collar criminal cases. David Joffe has demonstrated a proven ability to win challenging state and federal cases for more than 35 years. Contact the experienced legal professionals at Joffe Law to receive outstanding legal counsel and representation if you are facing a white collar charge. A member of our team will review the facts of your case and determine the best approach to defending you against the charges you may be facing.