White Collar Crimes

December 1, 2011

Queens DA Obtains Indictments on Nearly $2 Million Car Loan Fraud Scam

Queens District Attorney Richard Brown keeps motoring on obtaining one Enterprise Corruption indictment after another. Whether the top prosecutor in Queens is chasing down identity thieves, gamblers or other alleged fraudsters, when he finally catches them he brings out the “big guns” found in the New York Penal Law. According to a press release from earlier today, DA Brown has done it again. Eighteen individuals, arrested for and charged with Enterprise Corruption, Grand Larceny, Criminal Possession of Stolen Property, Falsifying Business Records, Criminal Possession of a Forged Instrument and Conspiracy, are all alleged to be part of an auto loan fraud scheme. It appears that obtaining indictments against these individuals was not enough to satisfy DA Brown’s voracious appetite for justice as he also obtained indictments for three separate corporations.

According to prosecutors, eighteen individuals and three corporations have been indicted for their alleged roles in two massive automobile loan fraud schemes that resulted in nearly two million dollars in losses to 18 financial institutions on 47 loans. A fairly basic, yet lucrative, scheme it is alleged that the defendants were involved in obtaining loans to purchase high end automobiles – BMWs, Mercedes, Porsches – with the assistance of “straw borrowers.” These borrowers had good credit that enable them to allegedly purchase vehicles that were later resold or rented on the black market and used in criminal activities.

November 17, 2011

UPDATE – Manhattan DA Takes a Bite Out of Crime: Steakhouse Credit Card Fraud & ID Theft Ring Served by Waiters, Grilled by Prosecutors

by Jeremy Saland

While they may be best known for serving choice cut steaks, a few of New York’s most famous steakhouses may need to add an arrest profile to their Zagat’s ratings. According to reports, Manhattan District Attorney Cyrus Vance, Jr.’s prosecutors busted a credit card fraud ring allegedly run by men and women whose day jobs were to serve as waiters at some of New York’s flagship restaurants. From Smith and Wollensky, Capital Grille and Wolfgang’s Steakhouse in Manhattan to Morton’s in Stamford and the Bicycle Club in New Jersey, it is alleged that more than two dozen arrested waiters dined on patrons’ credit card numbers as their unsuspecting customers grazed on filet mignon, porterhouse and the occasional rib eye (bone in, of course). Although the allegations have yet to fully materialize, it is alleged that these waiters stole approximately fifty account numbers from the high-end credit cards, including the fabled American Express Black Card, and used these account numbers to go on expensive shopping sprees.

The means by which these accused waiters perpetrated the Enterprise Corruption, Identity Theft (although not technically charged with this crime), Grand Larceny, Criminal Possession of a Forged Instrument and other crimes is clear. The alleged fraudsters used hand held skimming devices to kick off the alleged scam. Fairly easy to purchase online, these devices can be hidden in one’s palm and can scan a credit card in the time it takes to take one swipe. Once the reader glides over the magnetic strip, the account number is then stored for later use. Armed with the credit card numbers, the alleged defendants then encoded a new credit card with the stolen account number.

November 16, 2011

Brooklyn DA: Former Stockbroker Yearns to Rejoin the 1% by Allegedly Defrauding Investors Out of $200,000

by Jeremy Saland

According to Brooklyn District Attorney Charles Hynes, a scamming former stock broker managed to cheat and lie his way back into the 1% at the expense of fellow one percenters and on the backs of the 99% as well. While the arrest and indictment of Boris Shteyngart will likely not stop the #OWS from disrupting lower Manhattan on Thursday, it may send a strong message to would be thieves in Kings County. It is alleged in a multi-count indictment that Shteyngart defrauded a dentist from the “Show Me State” out of $142,000 and an 84 year old retiree out of $10,00 which consisted of a significant portion of the latter’s life savings. All of this, according to Brooklyn prosecutors, was stolen and used to support Shteyngart’s lifestyle.

DA Hynes claims that Shteyngart perpetrated his criminal scheme by “cold calling” potential investors. At some point after his alleged victims began to trust him, Shteyngart would convince these “investors” to send him money by wire transfer or check payable to “Bori.” Once he received these checks, prosecutors allege that Shteyngart merely added an “s” next to “Bori.” Not rocket science, “Bori” became “Boris” and Shteyngart was able to deposit the checks in his own account. In total, prosecutors believe the scheme netted the defendant approximately $200,000.

November 16, 2011

Manhattan DA: Three Indicted After Nearly $300,000 ATM Debit Card Skimming Bust

by Jeremy Saland

As prolific as the drug trade was in Manhattan and all of New York City from the 1970s through the 1990s, Identity Theft has easily surpassed it. In fact, Identity Theft and related crimes have crept into almost every business – private and public – well beyond the offices and apartments of Gotham. Arguably, Identity Theft, in terms of the volume of crimes perpetrated and the associated damages, makes almost every other offense in the New York Penal Law seem pedestrian. Case in point, Manhattan District Attorney Cyrus Vance just unsealed an 81 count indictment against Nikolai Ivanov, Dimitar Stamatov and Iordan Ivanov for allegedly committing a fairly common and easy to execute scheme. Although this indictment is “insignificant” when compared to the Queens District Attorney’s Office’s indictment of over 100 people in a multi-million dollar Identity Theft scheme, It is alleged that N. Ivanov, Stamatov and I. Ivanov scammed as many as 1500 people by placing skimming devices and disguised cameras on ATMs early this year. These ATM machines, located in Astor Place, Union Square and the East Village, were treasure troves of personal information that prosecutors claim were used to help the defendants steal nearly $300,000.

The alleged debit card skimming scheme, one that is routinely perpetrated throughout New York and other cities and states, was fairly easy to pull off. It is claimed that the defendants placed devices on the “mouth” or access point where a customer would slide his or her debit card into an ATM machine. As the customer conducted his or her regular business, a hidden video camera pointed at the keypad recorded the PIN number or code used to access the bank accounts. With this information, the defendant’s then allegedly accessed the bank accounts at different locations in New York, Canada and other states. It is alleged by the Manhattan District Attorney’s Office that the defendants placed eleven different skimming devices at four separate Manhattan ATM locations. Ultimately, however, it is alleged that one of the Ivanov brothers, along with Stamatov, was arrested in May when he attempted to retrieve one of the skimming devices in Manhattan.

October 12, 2011

When New York Credit Card & Debit Card Theft May Not be a Felony: Possession & Theft of ATM Cards

by Jeremy Saland

Any New York criminal lawyer will tell you that the best way to avoid an arrest, indictment or conviction is to steer clear of any and all criminal conduct. While that may sound easy, often time individuals make mistakes or get caught up in criminal acts that they truly had no intention of getting involved with in the first place. Two particular crimes that prosecutors can elevate from less serious conduct into felony crimes are the theft of credit or debit cards and the possession of stolen debit or credit cards. These two felony crimes, New York Penal Law 155.30(4) and 165.45(2), are violations of Grand Larceny in the Fourth Degree and Criminal Possession of Stolen Property in the Fourth Degree. Simply, if you steal a credit card or debit card or possess a stolen debit card or credit card then you will face up to four years in prison. Each individual card is a separate chargeable offense. As a result, if you have three stolen credit cards, for example, each individual credit card possession constitutes a separate and distinct crime with its own potential punishment.

Cases involving felony credit card theft and criminal possession of a stolen debit cards truly illustrate the value of both educating yourself on the law and retaining an experienced criminal lawyer to defend you against the criminal allegation. As the following case demonstrates, in terms of credit card and debit card crimes, mistakes can be made by both inexperienced criminal attorneys as well as their prosecutorial counterparts. Here, the question is clear. Are all debit cards, credit cards, and ATM cards created equal? The answer is clear, but often difficult to fully grasp.

October 7, 2011

Operation Swiper: Queens DA Notches 111 Person Indictment in International Identity Theft Scheme

by Jeremy Saland

Well before I became a New York criminal lawyer, I served for over seven years as a prosecutor in the Manhattan District Attorney’s Office. During that time, I was appointed to the Identity Theft Unit upon its creation as well as the Major Case section where I investigated criminal networks immersed in multi-million dollar Identity Theft schemes. Many of these schemes crossed continents and involved dozens of individuals. None, however, were as large scale in terms of the number of people charged and arrested in Queens County. In fact, according to the Queens County District Attorney’s Office, District Attorney Richard Brown may have the “honor” of spearheading the largest Identity Theft scheme in the history of such cases in terms of individuals involved. That number, to be precise, is one hundred eleven. These defendants were indicted by a Queens Count Grand Jury for their various degrees of involvement in forged credit card and Identity Theft rings. While the crimes of Forgery, Criminal Possession of a Forged Instrument and Identity Theft are all felonies with a serious bite, prosecutors have flexed their muscles by also obtaining indictments for Enterprise Corruption, New York’s RICO statute.

Although “only” eighty-six of the defendants are in custody, Queens prosecutors claim that fake and fraudulent credit cards were created and used by these individuals to steal well north of thirteen million dollars during a sixteen month period. Thousands of American Express, Visa, MasterCard and Discover Card customers were the alleged victims. Additionally, some of the crew are even alleged to have perpetrated burglaries and robberies at Kennedy Airport and the Citigroup Building in Long Island City where they allegedly netted close to a million dollars of ill-gotten gains.

September 28, 2011

Nassau DA Rice: Emory Student Sam Eshaghoff Paid Thousands to Use Fake Drivers License & Cheat SAT on Long Island

by Jeremy Saland

The pressure and drive to exceed in school never ends. Instead of studying a little longer and a little harder, however, the answer for some students is figuring out the best shortcut. According to the Kathleen Rice and the Nassau County District Attorney’s Office, Sam Eshaghoff, a former University of Michigan and current Emory student, was arrested after sitting for the SAT on behalf of at least a half a dozen high school students in exchange for thousands of dollars. Not a full fledged criminal enterprise, but more than an amateur operation, its further alleged that Eshaghoff sat for the SAT on Long Island at schools where administrators would not know the real students. Further, it is claimed that Eshagoff was armed with fake and phony New York State drivers licenses.

As interesting and as appealing as this case is, I have witnessed these types of scams on a much larger and even an international scale. As a Manhattan prosecutor, I led the investigation and prosecution of approximately two dozen individuals for either fraudulently taking or paying another person to take the GRE, GMAT and TOEFL. Education Testing Service (ETS) administers these examinations as well as the SAT. The Manhattan criminal enterprise, which extended well beyond the borders of New York and the United States, was extensive. Using faking passports at examinations centers and providing fraudulent diplomas, recommendation letters, transcripts, bank statements and other materials to universities and colleges throughout the United States, hundreds of students began their studies not on merit, but on fraud. In fact, the investigation revealed these students enrolled at NYU Stern School of Business, Columbia University Teachers College, Baruch College, UCLA, University of Michigan, Tulane Medical School, Canada’s McGill University and many other prestigious institutions.

September 17, 2011

New York Criminal Lawyers Avoid Criminal Record for Client Charged with Two White Collar Felonies in Manhattan Court

by Jeremy Saland

The New York criminal lawyers and former Manhattan prosecutors at Saland Law PC are pleased to announce that one of our clients pleaded guilty to a violation of Disorderly Conduct after being charged with two felonies of Grand Larceny in the the Third Degree (NY PL 155.35) and Identity Theft in the First Degree (NY PL 190.80) as well as three misdemeanor counts of Forgery in the Third Degree (NY PL 170.05). If convicted, not only would our client have a felony record, but he would have faced up to two and one third to seven years in prison.

It was alleged that our client had perpetrated “credit card fraud” after he randomly received a pre-approved credit card application in his mailbox addressed to another person. Upon completing the application, our client allegedly opened a secondary credit card account under his name. Upon doing so, prosecutors claimed that our client purchased a Honda Accord and filled out a loan application for that vehicle in the amount of $25,000. Using the credit card he allegedly obtained fraudulently, our client charged $7,000 as payment to Honda. As a result of these alleged actions and upon recognition by the creditor bank that there were issues with the use of the credit card, detectives from the New York City Police Department arrested our client. Shortly thereafter, prosecutors charged our client with these felonies in Manhattan.

September 13, 2011

Grand Larceny in New York: How to Ascertain Value of Stolen Property & Degree of Larceny – NY Penal Law 155.20

by Jeremy Saland

As both a New York criminal lawyer and as a Manhattan prosecutor, I have faced the issue of determining the legal value of property in a Grand Larceny case that was not readily apparent. While a theft of cash or certain property is easily ascertainable based on market value or the actual value of the currency, some items are not as clear. Fortunately, for prosecutors, criminal attorneys, victims and the accused, New York’s theft statutes set forth a guideline to follow. More specifically, certain written instruments, not including such items as some public and corporate bonds, have a value as calculated as established in New York Penal Law 155.20(2).

Regardless of whether or not a written instrument has actually been issued or delivered, a value has to be placed on those items to determine not only the degree of the Grand Larceny charged in a New York court, but to also come up with a restitution number should “payback” be part of any disposition. Accordingly, NY PL 155.20(2) deciphers the calculations as follows:

August 31, 2011

Forgery, Falsifying Business Records & Fraud Crimes in New York: Defining “Intent to Defraud” & Your Criminal Defense

by Jeremy Saland

A critical element of numerous fraud crimes in New York is one’s “intent to defraud.” This specific language is often in the criminal statute itself and is an essential part of numerous crimes prosecutors must prove beyond a reasonable doubt including the crimes of Forgery (New York Penal Law sections 170.05 through 170.15), Criminal Possession of a Forged Instrument (New York Penal Law sections 170.20 through 170.30) and Falsifying Business Records (New York Penal Law sections 175.05 through 170.10). More times than not, “intent to defraud” is associated with some form of theft or stealing. While larceny is often the criminal act or motivation behind the “intent to defraud,” the law is much more broad. In fact, “intent to defraud” is not defined in the New York Penal Law. Instead, it is defined through case law.

According to Black’s Law Dictionary (not the New York Penal Law), “intent to defraud” means an “an intention to deceive another person, and to induce such other person, in reliance upon such deception, to assume, create, transfer, alter or terminate a right, obligation or power…” The Court of Appeals, New York’s highest level court, has made it overwhelming clear that “intent to defraud” does not require an intent to steal, but can be formulated “for the purpose of leading another into error or disadvantage.” People v. Briggins 50 N.Y.2d 302, 309 (1980) (concurring opinion)(Jones, J.). Taking this even further, other legal decisions have fortified that “intent to defraud” need not be tied to an underlying Grand Larceny (Article 155 of the New York Penal Law) type scheme. In fact, in People v. Kase 53 N.Y.2d 989 (1981), “intent to defraud” was found where a defendant filed a false statement with a public agency. In that case, there was no desire or attempt to steal or obtain any amount of wealth. Instead, the defendant sought to interfere and disrupt the State’s ability to carry out the law.