The Crime of Extortion Explained

 Posted on April 11, 2019 in White Collar Crime

It was in late March that Michael Avenatti, the attorney that became famous while representing Stormy Daniels, was arrested on multiple charges, including extortion.  Extortion becomes a federal crime when certain factors are involved, such as the use of mail or computer communication to extort someone, or when the victim of the crime is a federal employee or public official.

There are many different types of extortion covered under the United States Code, and each carries its own penalties. When a person is facing charges of extortion, it is important they speak to a federal criminal defense attorney that can help them retain their freedom.

What Is Extortion?

Extortion occurs when a person uses force or threatens to use force in order to take money or something else of value from another person. This threat of harm is essential to any extortion case, but that does not mean the harm must be physical in nature. A person charged with extortion may threaten financial harm, destruction of property, and abuse of power.

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What Is Obstruction of Justice?

 Posted on April 04, 2019 in Federal Crimes

The term “obstruction of justice” is one that is heard a lot in the news these days. What does it really mean though, to obstruct justice? What is involved in the crime, and what are the penalties if convicted? To answer these questions, one must look at the legal statutes found in The United States Code.

Obstruction of Justice, Section 1503

When most people think of obstruction of justice, they think of the type that falls under 18 U.S.C. Section 1503. Under this federal statute, obstruction of justice occurs when a person influences, obstructs, or hinders the administration of justice through corruption, force, threats, or threatening letters.

This is the legal definition most news stories today point towards. President Donald Trump, for example, has been accused of obstructing justice in Robert Mueller’s investigation. Now that Mueller’s report has gone to the U.S. Attorney General, if it is found there was obstruction of justice, Trump would have had to obstruct the federal judicial system.

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What Happens If You Violate Federal Probation?

 Posted on March 28, 2019 in Probation

Federal probation works just like probation in the state of Illinois. If someone is convicted of a federal crime, the judge may place them on probation in conjunction with a sentence in a federal prison. A judge may also determine the person simply pays a fine and serves probation, without a prison sentence. Also just like probation in Illinois, anyone found in violation of their probation could face serious consequences. It is for this reason that anyone placed on federal probation fully reads and understands the federal conditions of probation. Violations of Federal Probation There are a number of ways a person can violate probation, even if they do not realize they are doing so at the time. These include:

• Failing to report a change of address to their probation officer;
• Moving without first obtaining permission from their probation officer;
• Committing a crime;
• Failure to pass a urine test;

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What Is Mail Fraud and Honest Services Fraud?

 Posted on March 21, 2019 in Fraud

In mid-March, news of the college entrance scam involving Lori Loughlin and Felicity Huffman broke throughout the country. Loughlin is accused of bribing school officials at USC to allow her two daughters admittance into the university. Her husband, Mossimo Giannulli, was also arrested for his involvement in the alleged crime. Huffman meanwhile, was arrested for bribing school officials into giving her daughter more time during the SATs.

Now all three face charges of conspiracy to commit mail fraud and honest services mail fraud. What do the legal statutes say these crimes involve?

What Is Mail Fraud?

Generally speaking, mail fraud is any scheme that involves the United States Postal Service to defraud someone or perform fraudulent acts. This crime is covered under Title 18 of the United States Code, Section 1341. The Code also states that not only is committing the act of defrauding a crime, but an attempted act is as well. This means the act does not have to be successful in order to be considered mail fraud.

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What Is Bankruptcy Fraud?

 Posted on March 14, 2019 in Fraud

In February 2019, a man from Madison, Wisconsin was sentenced to one year in federal prison for bankruptcy fraud. Before a guilty plea was entered, it was found that the man lied about a real estate property on his bankruptcy claim, lied at the Meeting of Creditors, and then lied again while testifying in federal court. While this man may have attempted to hide assets, what about those that simply make a mistake when filing for bankruptcy? Do they face the possibility of bankruptcy fraud charges, too? What exactly is bankruptcy fraud? What Is Bankruptcy Fraud? When a person is suspected of bankruptcy fraud, they are first investigated by the Federal Bureau of Investigation. They are then prosecuted by the U.S. Department of Justice in federal court and, if convicted, are sentenced to federal prison. The amount of time they spend is often at the discretion of the judge. Most of these crimes are committed by the debtor, or the person filing the bankruptcy claim. There are times though, when creditors, bankruptcy trustees, court personnel, and other third parties are found guilty of bankruptcy fraud. Types of Bankruptcy Fraud Bankruptcy fraud is covered in the federal statute 18 of the United States Code, Sections 152 and 157. This statute identifies many different types of bankruptcy fraud including:

• Failure to include assets in the bankruptcy claim;

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Differences in Federal and State Embezzlement Charges in Illinois

 Posted on March 07, 2019 in White Collar Crime

Embezzlement is considered a white-collar crime. It occurs when one person entrusted with money or property on behalf of someone else misappropriates those assets for their own personal benefit. Many people think that embezzlement is automatically a federal crime. However, this is not true. There are both Illinois statutes pertaining to the crime of embezzlement, as well as federal statutes. The circumstances surrounding the crime will determine which charge is laid.

Federal Embezzlement Charges

Federal embezzlement charges are covered under Title 18 of the U.S. Criminal Code, Chapter 31. These charges are laid when the misappropriation of funds or property crosses state lines, as that falls under federal jurisdiction. In addition, if the embezzlement involved a federal agency such as the United States Postal Service, federal charges will also be laid.

Other considerations in a federal embezzlement case will involve the nature of the offense, the amount of money involved in the embezzlement scheme, and whether or not the accused took responsibility for the crime or took it to trial.

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Tax Mistakes Are Sometimes Considered Tax Fraud

 Posted on February 28, 2019 in Fraud

Approaching tax season, many taxpayers in Illinois and across the country are thinking about their tax return. It is a frustrating time, as some people may owe income taxes, but the Internal Revenue Code itself is extremely confusing. It is also changing all the time, making it even more difficult to keep up on all the different tax laws. Understanding these laws is crucial. The IRS may consider just one mistake on a tax return fraud, which could result in severe penalties for the taxpayer. Below are some of the most common mistakes misinterpreted as tax fraud. These are sometimes referred to as “accidental fraud.”

Incorrect or Incomplete Information

 Before filing an income tax return, it needs to be double-checked and then checked again. Even a mistake in basic information such as a social security number or address can result in a charge of tax fraud. Incomplete tax returns are easier to file than some may think. This is particularly true when someone is claiming a credit. Claiming credits often requires the taxpayer to fill out additional forms. When the credit is claimed but the respective form is not filled out, this makes the return incomplete. Most of these mistakes will not lead to charges of tax fraud. However, if additional mistakes are made or there are extenuating circumstances around the return, even these simple errors could result in criminal charges. Inaccurate Deductions It is difficult for taxpayers to understand what counts as a valid deduction and what does not. When deductions for a business are involved, it is even more challenging. Any deductions claimed are subtracted from a person’s overall income. The more claimed, the less a person may owe in income taxes. It is for this reason the IRS consider inaccurate deductions as tax fraud. They also understand it is difficult to know all possible deductions, which is why they have created a guideline of credits and deductions on their site. Even the simple mistake of claiming a lunch as a business lunch when it was not can result in a charge of tax fraud. This is why it is so important to also double check any deductions, and ensure they are accurate. Omitting Income All Americans are required to fill out their income tax return completely and honestly. This includes detailing all income earned the previous year. When the IRS suspects a person of not claiming all of their income, that person is likely to get audited. If the IRS finds unclaimed income, they can then press charges for tax evasion. This mistake is also an easy one to make. Even a small oversight such as leaving tips unclaimed can result in a tax evasion charge. Unlawful Tax Shelters A tax shelter is a financial agreement a person makes in order to pay fewer taxes. They are legal, however, there are tax shelters that operate illegally. This is often difficult for the taxpayer, as they may not even know a tax shelter is illegal until it is too late. However, the IRS can still hold them responsible for creating or using the shelter. Tax Return Preparer Fraud The tax laws in the country are very confusing, which is why so many taxpayers hire a knowledgeable professional to complete their tax returns for them. In most cases, tax preparers are scrupulously honest and careful with these returns. Sometimes though, a tax preparer may inflate a person’s income so that they get paid more. Like unlawful tax shelters, a taxpayer that made the mistake of hiring the tax preparer may have no idea they are dishonest until it is too late. Contact a Chicago Criminal Defense Attorney for Help Today

Facing tax fraud charges, like facing charges of any federal crime, is very scary. It is extremely challenging for those that thought they were simply following the law by filing their tax returns on time. However, charges do not have to lead to a conviction. A dedicated Chicago tax fraud lawyer can help. If you have been charged with tax fraud, contact the Law Offices of Hal M. Garfinkel at 312-629-0669 for a free consultation. We know the tax laws, and we know how easy it is to make a simple mistake. Do not go up against the IRS alone. Get the help you need by contacting us today.

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Different Types of Health Care Fraud

 Posted on February 21, 2019 in Fraud

Health care fraud is considered a white collar crime, but it can come with very serious penalties. Doctors and healthcare workers typically think of this type of fraud as stealing from a government healthcare program, such as Medicare. The government, however, sees it very differently. To prosecutors and federal agents, even small errors are considered fraud, and allegations that can be proven will result in strict penalties, including loss of program eligibility. It is important that anyone working in the healthcare industry understands just how broad health care fraud is. Below are ten of the most common types of healthcare fraud. Inaccurate Billing and Coding Of all the different types of healthcare fraud, inaccurate billing and coding procedures are some of the most common. Double-billing a healthcare program, billing for costs not applicable under a program such as operational expenses, and billing for services at stand-alone rates rather than bundled rates are all examples of this type of healthcare fraud. Even an unintentional mistake when applying for reimbursement from a government program is often enough to have an individual or organization charged with healthcare fraud. Penalties for committing this type of fraud include a minimum fine of $21,000 for every false claim, additional fines, and loss of eligibility for the program. Kickbacks The federal Anti-Kickback Statute makes it illegal for any healthcare provider to knowingly and willfully offer or receive any funds from a federal healthcare program in order to procure a purchase, lease, or patient referral. It is important for healthcare workers to understand that while the law states this kickback must be taken or received ‘knowingly or willfully,’ that is not always the case. Like billing and coding errors, if a mistake was made that affected funds from the federal program, healthcare institutions can be prosecuted. The term ‘knowingly and willfully’ is not the only confusing terms within this statute. There are exceptions to this law that are also not as clear. Compensation to W-2 employees, some risk-sharing and purchasing agreements, and safe harbors for certain transactions are just a few examples. A healthcare fraud lawyer can help healthcare organizations understand what is and is not a crime. Physician Self-Referrals Many areas of healthcare fraud law apply broadly to many different healthcare organizations and workers. The law pertaining to physician self-referrals applies only to doctors. This law is also known as the Stark Law. Under this law, doctors cannot refer a patient to another doctor or health service in which the referring doctor has a financial interest. False Claims While there are many different types of healthcare fraud, making false or fraudulent claims is one of the broadest. The False Claims Act makes it illegal for anyone to purposefully make false claims when applying for reimbursement from any federal health care program. This can include billing and coding errors, illegal forms of remuneration, and more. Those found in violation of the Act can face both criminal and civil penalties. Billing for Unnecessary Services, Supplies, or Equipment Federal healthcare programs are in place to provide doctors with necessary services, supplies, or equipment so those doctors can then give their patients the best treatment. In cases when a healthcare worker provides inpatient treatment beyond the length of stay Medicare approves, prescribes medications to treat a condition that does not require a prescription, or provides healthcare services in a facility when a lower-cost facility was available, these are all considered to be unnecessary billing practices. Billing for Services, Supplies, or Equipment Not Provided Just as healthcare workers cannot provide services or equipment that is unnecessary, they are also forbidden from doing so when those services are not actually provided to patients. This practice is also known as phantom billing due to the fact that healthcare workers are billing federal agencies for items never passed on to patients. Sometimes this is done intentionally by a healthcare organization but more often than not, it is a simple mistake with big consequences. Prescription Drug Fraud Prescription drug fraud has garnered a lot of attention in the past few years due to the opioid crisis. This crime can include falsifying prescriptions, selling fraudulent prescriptions, prescribing medications without first examining a patient, and more. Falsifying Patient Records and Test Results When the federal prosecution charges a healthcare worker or organization with falsifying patient records and test results, they will argue the worker did so in order to increase their profit or the profit of the facility. The truth is though, that many times there is no falsification. The records of one facility are simply far above national or regional averages. This happens more than people think as this crime relies heavily on data analytics. Fraudulent Physician Certifications This may sound like a crime in which a doctor falsifies their own certificate from medical school or other institution. However, it is not. Instead, this crime refers to beneficiaries of Medicare or other healthcare programs that require home health or hospice care. These patients must be certified every 60 days and that certification requires a physician to perform a full examination. Once the exam is finished, the physician then needs to certify that the patient still requires home care. When that certification is falsified, it is a crime. Problems with Election Statements for Hospice Care Just as hospice care patients need to be certified, they also need to sign an election statement. Within these statements, the patient will acknowledge that they have received complete and accurate information about the nature of hospice care and that they have waived their rights to Medicare coverage for treatment not provided by the hospice provider. In order to be protected from this law, hospices should always keep all election statements from their patients. Healthcare Workers Need the Illinois Federal Criminal Defense Lawyer that Can Help

Being charged with healthcare fraud is very serious. Healthcare workers can expect large fines, and could even have their license taken away. It is for these reasons that anyone accused of healthcare fraud needs the experience of a passionate Chicago federal criminal defense lawyer. If you are facing healthcare fraud charges, let the Law Offices of Hal M. Garfinkel help you beat them. We know the many laws pertaining to healthcare around the country, and we know the defenses that can be used for them. We also know that simple, honest mistakes can cost healthcare workers dearly. Call us today at 312-629-0669 for your free consultation.

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What Is Suborning Perjury?

 Posted on February 14, 2019 in Federal Crimes

When a person makes statements under oath, they have sworn to tell the truth. If they intentionally lie, they may face perjury charges. A person providing sworn testimony knowing that it was false is often the first type of perjury people think of when they imagine this crime. There is another type of perjury under federal law, however: suborning perjury.

Suborning Perjury

BuzzFeed made headlines in January with a story surrounding suborning perjury. In their report, they state Trump committed the crime of suborning perjury after directing Michael Cohen to lie to Congress. Since that publication, CNN has reported Special counsel Robert Mueller has disputed the Buzzfeed report. Still, it has gotten people asking: what is suborning perjury?

If a person encourages, persuades, or influences another person to give false testimony as a witness in a legal proceeding, they are guilty of suborning perjury. The person trying to persuade someone to lie under oath does not need to use threats in order to be changed with suborning perjury. They simply need to try and persuade someone else to give dishonest testimony.

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Options After a Federal Indictment

 Posted on February 07, 2019 in Federal Crimes

A federal indictment is a legal document charging someone with a federal crime. The prosecution can only obtain an indictment after arguing their case to a grand jury. The jury then convenes and determines whether or not there is probable cause that the individual committed the crime. If the grand jury determines there is probable cause, an indictment is issued. Receiving a federal indictment is very stressful and can cause those charged to think the worst as they imagine spending several years in federal prison. However, not every federal indictment ends this way. Those charged with a federal crime do have options, and they should discuss all of them with a federal criminal defense attorney. Dismissal This is the best chance a person has at retaining their freedom after receiving a federal indictment. When a case is dismissed in federal court, the charges are dismissed and the case is thrown out of court. According to the Federal Rules of Criminal Procedure, Rule 47, when the defense wishes to have a case dismissed, they must file a motion with the court. In order to obtain a dismissal of the case, the defense must show within their motion that the defendant should not have been charged with the alleged crime, or that their constitutional rights were violated. Obtaining a dismissal is much more difficult in federal court than it is in state court. This is due to the fact that in federal court, a grand jury consisting of 12 people has determined there is probable cause. In a state court, only one judge is convinced of probable cause. The law views the opinions of 12 people as more substantial than the opinion of just one. However, when the prosecution has a weak case, dismissals are still a possibility. Plea Deal Under Rule 11 of the Federal Rules of Criminal Procedure, the defense team and the prosecution can strike a plea deal. This is the best option when the defense believes they will not receive a successful verdict at trial. During a plea deal, the defense team will meet with the prosecution and agree to plead guilty to lesser charges in exchange for a lesser sentence. Certain sentencing factors, such as enhancements, are often thrown during the negotiation. It is important for defendants to understand that when a plea deal is made between the prosecution and the defense, the court must approve it. If the court decides not to approve it, the case will go to trial. Trial After receiving a federal indictment, many defendants think taking the case to trial is the worst option. This, however, is not always true. A jury made up of 12 people will determine a defendant’s innocence or guilt throughout the course of a trial. This means the prosecution must convince the entire jury of a person’s guilt beyond a reasonable doubt. When they fail to do so, the jury must find the defendant innocent. Going to trial is often the best chance a defendant has at beating the charges and retaining their freedom. Review Your Options After a Federal Indictment with a Chicago Federal Criminal Defense Attorney

Anyone that is indicted on federal charges may think they are out of options. This, however, just is not true. A passionate Chicago federal criminal defense attorney can help. If you have been indicted by a grand jury, contact the Law Offices of Hal M. Garfinkel at 312-629-0669. We know the many options available, and we will review them all with you to determine which one is right for your specific case. We offer free consultations, so call us today and we can begin discussing your case.

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