Archive for the ‘Money Laundering’ Category

Former CFO, lawyer plead in St. Louis pre-arranged funeral fraud case

July 16, 2013

ST. LOUIS • Two more defendants involved in what prosecutors have called a “Ponzi-like” pre-arranged funeral scam that could cost $600 million pleaded guilty Tuesday to federal charges.
The former chief financial officer of National Prearranged Services, Randall K. Sutton, 67, of Chesterfield, pleaded guilty to charges of bank fraud, mail fraud, money laundering and insurance fraud.

A few hours later, the company’s former lawyer, Howard A. Wittner, 76, of Chesterfield, pleaded guilty to two counts of making false statements intended to deceive insurance regulators, and to willfully permitting a felon to engage in the insurance business.

Wittner admitted lying to state regulators and concealing the source of money used to buy a medical malpractice insurer. The third count refers to former owner, James “Doug” Cassity, a convicted felon.
Under the plea deal with prosecutors, Sutton faces up to seven years in prison, and Wittner faces up to five years when sentenced Nov. 7.

The pleas leave one remaining defendant, former investment adviser David R.

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Former CFO, lawyer plead in St. Louis pre-arranged funeral fraud case

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Disbarred Attorney Indicted for Allegedly Stealing More Than $400K From Elderly Woman

April 24, 2013

Ohio Attorney General Mike DeWine and Hamilton County Prosecutor Joseph Deters announced today the indictment of a former attorney who allegedly stole more than $400,000 from an 83-year-old woman from Morrow.

William G. Goetz of Cincinnati, was indicted Tuesday by a Hamilton County grand jury on two counts of Theft from the Elderly, two counts of Money Laundering, and one count of Tampering with Records.

If convicted, Goetz faces a maximum of 31 years in prison.

According to investigators, Goetz prepared legal documents and participated in a complex real estate transaction for the homeowner. He allegedly took more than $400,000 from the homeowner that was intended for future tax payments stemming from the land deal. Goetz is accused of depositing the funds into his business accounts for his own personal use.

As part of the deception, Goetz also allegedly created a fake letter from the Ohio Attorney General’s office to further his crimes.

Goetz was disbarred by the North Dakota Supreme Court in 1991 for fraudulent dealings with his clients. He is not and has never been an attorney admitted to the practice of law in Ohio.

The Ohio Supreme Court sanctioned Goetz for unauthorized practice of law and fined him $30,000 in 2005.

A warrant has been issued for Goetz’s arrest. 

Source:
Man Allegedly Stole $400,000 From Elderly Morrow Woman

Yet Another California Fiduciary Arrested For Elder Financial Abuse

March 6, 2013

Rod Hormell, a California Certified Senior Estate Planner, Elder Care specialist, located in Thousand Oaks, California, was recently arrested on suspicion of embezzling and laundering money from an 89-year-old client.

In October 2012 the Ventura County Sheriff’s Office received a report alleging that Rod Hormell, 56, had embezzled and laundered money from an 89-year-old client.

The report came from a relative of the client.

Hormell was arrested Feb. 19 at his business in the 900 block of BroadBeck Drive in Newbury Park. Hormell is accused of financial elder abuse and money laundering.

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Yet Another California Fiduciary Arrested For Elder Financial Abuse

New indictment accuses jailed lawyer of defrauding utility of millions

March 3, 2013

Jailed since November, when federal prosecutors accused him of a role in a claimed conspiracy to launder $600 million in Mexican drug cartel money, a once-prominent South Texas lawyer is now facing a new indictment issued Wednesday by a federal grand jury in El Paso.

Marco Delgado, 46, also known as Marco Delgado Licon, is charged with wire fraud and money laundering, accused of diverting $32 million that should have gone to a Nevada company into an offshore account he controlled in the Caribbean, according to the Pittsburgh Tribune-Review. Delgado reportedly brokered a deal in which the Nevada company, FGG, was to provide turbogenerators to a Mexican state-owned utility.

Delgado allegedly used some $1.5 million from the offshore account to purchase two homes and furnishings and to make a hefty contribution to Carnegie Mellon University, where he formerly served as a trustee. The feds are now seeking forfeiture of $2.5 million in cash, notes a KBTX article about the indictment.

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New indictment accuses jailed lawyer of defrauding utility of millions

Trial Opens for 2 Accused of Defrauding the Dying

November 19, 2012

An estate planning lawyer and one of his employees fraudulently made more than $30 million by making investments in the names of people who were terminally ill with ailments such as cancer and Lou Gehrig’s disease, a federal prosecutor said during his opening statement at the pair’s trial Tuesday.

The lawyer, Joseph Caramadre, and his employee Raymour Radhakrishnan are charged with dozens of counts, including wire and mail fraud, identify theft, conspiracy and money laundering. Caramadre is also charged with witness tampering.
Prosecutor Lee Vilker told the jury that Caramadre bragged he had discovered a loophole in variable annuities and so-called “death-put bonds,” both of which offer a benefit if the owner dies.

“It’s not a loophole if you have to lie to get it,” Vilker told the jury.

Both men have pleaded not guilty.

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Trial Opens for 2 Accused of Defrauding the Dying