In the News

August 9, 2010

Manhattan DA: Haitian Immigrant Scammer Defrauds at Least Six By Posing as a Lawyer

In a far too common storyline, Manhattan District Attorney Cyrus Vance, Jr. is using a press release as his sword to tell the tale of a 28 year old man alleged to have defrauded at least a half a dozen Haitian men and women in an immigration scam. According to prosecutors, Marc Payen either claimed he was associated with the United Nations (UN) or was an immigration attorney who could assist Haitian immigrants with obtain residency through green cards or other documents. It is alleged that between 2009 and 2010, Mr. Payen defrauded these people out of $12,500 while never assisting them in legalizing or obtaining proper status in the United States. When these people asked for confirmation or receipts it is alleged that Mr. Payen provided fraudulent United States Citizenship and Immigration Services forms. Compounding matters, despite Mr. Payen’s alleged legal work, Mr. Payen was and is not an attorney.

A 23 count indictment charged Mr. Payen with crimes including Grand Larceny in the Third Degree, Forgery in the Second Degree, Criminal Possession of a Forged Instrument in the Second Degree, Scheme to Defraud in the First Degree, and the Unauthorized Practice of Law. Grand Larceny in the Third Degree, Forgery in the Second Degree and Criminal Possession of a Forged Instrument in the Second Degree are each “D” felonies punishable by up to seven years in prison while Scheme to Defraud in the First Degree and the Unauthorized Practice of Law are both “E” felonies punishable by up to four years in state prison.

August 4, 2010

Caroline Giuliani Arrested & Issued a Desk Appearance Ticket For Shoplifting: The Law of NY PL 155.25, Possible Scenarios & Your Criminal Defense

by Jeremy Saland

I certainly don’t have the statistics, but countless number of people are arrested and / or issued Desk Appearance Tickets (DATs) in New York for shoplifting and violating the laws of Petit Larceny and Criminal Possession of Stolen Property. Unfortunately for former New York Mayor Rudy Giuliani, at least one local New York City newspaper is reporting that his daughter, Caroline Giuliani, was arrested for shoplifting at Sephora and will join the ranks of the accused. It is likely that she has not and will not go through the system, but will be given a New York Desk Appearance ticket (DAT) that will require her to return to court in lower Manhattan where she will be arraigned.

While the potential offer or disposition in these types of cases vary from county to county, barring the property being valued in excess of a few hundred dollars, it is likely prosecutors will offer her a Disorderly Conduct violation. The Manhattan District Attorney’s Office might move for an adjournment in contemplation of dismissal (the case will be dismissed and sealed in six months) if the value is less than one hundred dollars.Both of these scenarios will include some form of community service. Although a plea or acceptance of one of these offers will not result in a criminal record, a real concern for individuals pleading to Disorderly Conduct is that a background check may reveal the underlying arrest and ultimate plea even though the courts seal the cases. In other words, the “gift” of a shoplifting arrest may not go away. Therefore, it should go without saying that her criminal defense counsel should pursue either an adjournment in contemplation of dismissal or advocate to get the case dismissed procedurally or on other legal grounds if applicable.

July 30, 2010

DA: Manager of Tarrytown’s Castle on the Hudson Arrested for Grand Larceny Embezzlement in Excess of $400,000

by Jeremy Saland

Westchester County District Attorney Janet Difiore has announced the arrest of Mourad Boulas, a manager at Castle on the Hudson in Tarrytown, for Grand Larceny in the Second Degree (New York Penal Law 155.40). According to the Westchester County District Attorney press release, Mr. Boulas embezzled in excess of $400,000 during a four year period ranging from December 2004 through October 2008. It is alleged that during this time, Mr. Boulas wrote checks to his wife and to companies created by Mr. Boulas for purpose of siphoning money fom Castle on the Hudson.

Although jail is not mandatory for a first time offender, Mr. Boulas faces up to five to fifteen years in state prison. It is likely that prosecutors will seek some amount of state prison.

June 28, 2010

DA: $1.1 Million Tax Refund Fraud Scheme Lands Accountant, Her Family and Male Model Client in Jail

by Jeremy Saland

The tax man comes for everyone. Seems like the Queens District Attorney does so as well. While the New York taxing authorities take their payment in money, District Attorney’s Offices seek not just your money, but your freedom as well. Unfortunately for Diana Rabin, an accountant, her mother Lyidmila Levy, sister Alisa Derabin and clients Merced R. Baumer and Nyemah Johnson, they are now facing up to fifteen years in state prison for allegedly attempting to obtain a combined $1.1 million in New York State tax refunds.

Not only are the defendants alleged to have claimed hundreds of thousands of dollars in income, but tens of thousands of dollars in taxes withheld from this purported income. According to the District Attorney’s Office, this income was made up as some of the defendants did not even work.

June 22, 2010

DA: Fake Attorney Dupes Three Mexican Immigrants Out of $12K for Promise of Green Cards

by Jeremy Saland

New York County District Attorney Cyrus Vance, Jr. is following his predecesor’s commitment to not only cleaning up crime in the streets, but fraud in the suites as well. This mantra does not stop with white collar crime and DA Vance appears to be ready to build upon the principles and objectives of the Immigrant Affairs Program established under Robert Morgenthau. In fact, DA Vance announced yesterday an indictment of Teresa Nora Martinez for allegations of immigration fraud. If this case and others are any indication, DA Vance is fed up and displeased (dare I say incensed ?) with alleged swindlers and scammers in the arena of immigration fraud. According to the DA, Ms. Martinez stole $12,000 from immigrants after informing them she was an attorney or was associated with attorneys who could assist them with their immigration issues.

The District Attorney press release states as follows:

June 17, 2010

DA Vance, Jr Announces $1.9 Million Settlement with Distributors of Illegal Knives in New York

by Jeremy Saland

Manhattan District Attorney Cyrus Vance, Jr. is trying to be more proactive when it comes to crimes involving knives. Last year, In Manhattan alone, there were 2,269 arrests involving the possession of illegal knives. Mere possession of certain weapons such as “gravity knives” and “switchblades” is punishable as an “A” misdemeanor pursuant to New York Penal Law 265.01 – Criminal Possession of a Weapon on the Fourth Degree.

According to the District Attorney’s website, DA Vance, Jr. has reached an agreement with national and local retailers of knives that are illegal in New York. Retailers, such as Home Depot, Eastern Mountain Sports, Paragon Sports, and four others, will enter into deferred prosecution agreements. The law permits these companies, like individuals, to be prosecuted for crimes – a fact recently addressed by DA Vance in an earlier press release. In return, these companies will provide the Manhattan District Attorney’s Office the past four year’s profit. In total, that amount is approximately $1.9 million. Additionally, the companies will finance an education campaign regarding illegal knives. Lastly, Frederico Gebauer, a managing director at Kroll, Inc. and former Manhattan prosecutor, will serve free of charge as the District Attorney’s “Knife Sales Monitor” to review and keep track of knife sales. Hopefully, the Manhattan District Attorney’s Office recognizes that many upstanding people who possessed knives for legitimate purposes, such as for work, purchased these knives from these and other stores assuming (with good reason) that there was nothing illegal about it.

June 14, 2010

DA: Mayor Michael Bloomberg Campaign Volunteer Arrested and Indicted for $1.1 Million Theft

by Jeremy Saland

While it may be the functional equivalent to a theft of nickles and dimes to the average New Yorker, Manhattan District Attorney Cyrus Vance, Jr. has announced the indictment of John Haggerty for defrauding New York’s billionaire mayor out of over $1 million. Charged with Grand Larceny in the First Degree, Money Laundering in the Second Degree and Falsifying Business Records in the First Degree, Mr. Haggerty faces up to 25, 15 and 4 years respectively on each offense.

According to the Manhattan District Attorney’s Office, Mayor Bloomberg was duped out a cool million after Mr. Haggerty received the monies to operate an Election Day security and polling organization to be run by the New York State Independence Party. It is alleged that Special Election Operations LLC was to run the security. Instead, prosecutors claim that Mr. Haggerty’s Special Election Operations LLC was a scam. In lieu of using this money to secure the polls, Haggerty is alleged to have spent merely $32,000 for this purpose while using approximately $600,000 to purchase his own home. Compounding matters, prosecutors claim that Mr. Haggerty did not come clean when questions arose as to where the money went. It is further alleged that Mr. Haggerty produced fraudulent paychecks to corroborate that staffers were paid the missing money to watch the polls on Election Day.

June 2, 2010

Cuomo’s Boys Bust Alleged Medicaid Fraud Ring in NYC: Dental Practices Accused of Bilking State Out of $5.7 Million

by Jeremy Saland

Grabbing yet another headline, Attorney General Andrew Cuomo announced the indictment of four individuals and numerous companies for their involvement in an alleged Medicaid Fraud Scheme to the tune of $5.7 million. According to Attorney General Cuomo, three men, David Ibragimov, his son Arthur Ibragimov and his son-in-law Mikhail Isakov, operated three dental clinics in New York City (Bronx, Brooklyn and Queens). Although they owned these establishments, the men were not dentists and, if true, were not permitted to own those dental clinics.

It is alleged that these men had arrangements with dentists that they hired. This deal was that the dentists must pay the men’s companies – AN International LLC, MA Concord LLC and MB Globus LLC – two thirds of the revenues received through Medicaid. Compounding matters, it is alleged that “flyer boys,” the term us for recruiters, brought Medicaid patients to the clinic for treatment that was unecessary. In return, it is alleged that the “flyer boys” were compensated as well as the patient. It is alleged that not only did these patients receive cash and unecessary procedures, but sometimes they were paid with electronics such as CD players as well as coupons for McDonalds. It is alleged by the Attorney General that the defendants were so zealous that they pushed the dentists in their clinics to force “Medicaid recipients to agree to being fitted for dentures the same day their teeth were extracted and before their gums could heal.”

May 13, 2010

Queens DA: $3 Million Mortgage Fraud Scheme Nets 17 Arrests Including 2 Attorneys

by Jeremy Saland

Manhattan, home to Wall Street and other global institutions, has always viewed itself as the center of the financial universe in terms of growth, management and even fraud. Once again, however, the Queens County District Attorney’s Office may have taken a larger share of the “fraud pie.” According to the Queens District Attorney’s Office press release, 17 people, including two attorneys, have been arrested in a Mortgage Fraud and Grand Larceny scheme were 26 residential properties, valued at nearly $13 million, were used to defraud legitimate homeowners and lending institutions out of $3 million.

According to District Attorney Brown:

May 12, 2010

No Pre-Summer Party in the Hamptons: DA Announces Bust of East End Heroin Ring

by Jeremy Saland

To the likely chagrin of the hard partying summer Hamptons crowd, Suffolk County District Attorney Thomas Spota is already cracking down on the “fun” before the season has even started. District Attorney Spota has announced that twenty people have been arrested in a heroin ring in and around the East End of Suffolk County. It is alleged that as much as 2500 bags of heroin with a street value of $40,000 were being sold each week since the investigation began in October. Reports indicate that the bust was one of or the largest heroin drug rings ever taken down in the area. It is alleged that the crew made over two million dollars a year peddling heroin with names including “google,” “black ice,” “quicksand” and “privilege.”

According to law enforcement and local reports, 40 bags of heroin, 5.6 ounces of crack cocaine and more than $70,000 in cash was recovered from the home of Shawn Badgett when police executed a search warrant. Compounding matters, it is alleged at the time of the execution, Mr. Badgett was displaying his best Martha Stewart and Rachael Ray. However, instead of cooking a delectable treat, it is alleged that he was cooking cocaine.