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Tag Archives: Fraud

South Georgia Bank Director, Accused of Stealing $40 Million and Believed Dead, Arrested on I-95 in Georgia

Posted in Bank Fraud

Aubrey Lee Price, the former Director of Montgomery Bank & Trust in Ailey, Georgia, was arrested last week following a traffic stop on Interstate 95, as reported by the Associated Press. Price is under indictment in Federal court in Georgia and New York. The U.S. Securities and Exchange Commission has also filed a civil complaint… Continue Reading

New York Physician Acquitted in $279 Million Insurance Fraud Case

Posted in Acquittal

Last year, authorities arrested Dr. Billy Geris of Staten Island, New York, as well as dozens of other persons and nine other physicians, who the government alleged were involved in “medical fraud mills,” in which persons involved in automobile accidents were given allegedly medically unnecessary treatments in order to defraud insurance companies. The doctors were… Continue Reading

6th Circuit Court of Appeals Undoes Amazingly Soft 1 Week Sentence for CEO Convicted in $18 Million Fraud

Posted in Sentencing

Michael Peppel, the former CEO of  MCSi Inc., based in Dayton, Ohio, was convicted on charges of conspiracy, fraud, and money laundering for a scheme which defrauded investors of $18 million. Peppel allegedly cooked MCSi’s books to cause its stock value to remain high. Peppel faced between eight to 10 years’ imprisonment. However, according to… Continue Reading

4th Circuit Court of Appeals Overturns Money Laundering Convictions in $100 Million Life Insurance Investment Scheme

Posted in Money Laundering, Reversal

Adley H. Abdulwahab was convicted of fraud, conspiracy, and money laundering in 2011 in the U.S. District Court for the Eastern District of Virginia relating to a $100 million life insurance settlement scheme which defrauded more than 800 investors.  As reported by the Fort-Worth Star-Telegram, Abdulwahab, a Texas resident, and four other co-conspirators fraudulently marketed… Continue Reading

6th Circuit Court of Appeals Reverses Convictions in $7 Million Fraud Case for Speedy Trial Violations

Posted in Reversal, Speedy Trial

Yesterday, as reported in The Republic, the 6th Circuit Court of Appeals in Detroit reversed the convictions of Michael Heshelman and Bryce Sherwood of Battle Creek, Michigan, who had been serving sentences of imprisonment for defrauding investors of approximately $7 million, including $2.5 million from the family of a pastor. The reason–the Speedy Trial Act… Continue Reading

9th Circuit Reverses CA City Treasurer’s “Honest Services Fraud” Convictions

Posted in Acquittal, Fraud

On Monday, the U.S. 9th Circuit Court of Appeals ordered Albert Robles, former Treasurer for South Gate, California, acquitted on three charges for “honest services fraud,” 18 U.S.C. 1346, which Mr. Robles had been convicted on in 2006. The Court also reversed the honest services conviction of Robles’ business associate, George Garrido. The reversals were… Continue Reading

“BadB” Sentenced to 88 Months in $9 Million Worldwide Identity Theft Scheme, Including from Atlanta-Based Company

Posted in Uncategorized

“BadB,” also known as Vladislav Anatolievich Horohorin, a citizen of Russia, Israel and Ukraine, was sentenced on Friday to 88 months’ imprisonment in the U.S. District Court for the District of Columbia for participating in a worldwide identity theft scheme which resulted in losses of $9 million. Horohorin was indicted in 2009 in the District… Continue Reading

Pine Mountain, GA, Couple Indicted on Federal Tax Charges

Posted in Tax Fraud

A Pine Mountain, Georgia, couple have been indicted in the U.S. District Court for the Middle District of Georgia for allegedly engaging in conspiracy and filing fraudulent tax returns. The government has charged Natashia and Detrick Tucker, who own and operate a tax preparation business, T&T Express, with illegally claiming inflated tax refunds for their… Continue Reading

Ellijay VP of Appalachian Community Bank Sentenced to 5 Years, 10 Months

Posted in Bank Fraud, Sentencing

Adam Teague of Ellijay, Georgia, former Senior Vice President of Appalachian Community Bank, was sentenced to 5 years’ and 10 months’ imprisonment Friday after pleading guilty last August to conspiracy and fraud charges in the U.S. District Court for the Northern District of Georgia. Teague was also ordered to pay $5.8 million in restitution, his… Continue Reading

Second Circuit Reverses Attorney’s Conviction for Exclusion of Public from Jury Selection

Posted in Jury Selection

Raghubir Gupta, a New York attorney, was convicted in 2008 in the Southern District of New York of preparing fraudulent immigration applications and sentenced to 51 months’ imprisonment. On Friday, the U.S. Court of Appeals for the Second Circuit reversed Gupta’s conviction, holding that the trial court violated Gupta’s Sixth Amendment rights by excluding the… Continue Reading

3 UBS Execs Convicted of Municipal Bond Bid Fraud

Posted in Fraud

Three former Union Bank of Switzerland–UBS–executives were convicted on Friday in the U.S. District Court for the Southern District of New York, as reported by NASDAQ. Peter Ghavami, Gary Heinz and Michael Welty were found guilty of fraud relating to bids to invest the proceeds from municipal bonds and other municipal finance contracts between 2001… Continue Reading

Former FirstCity Bank CEO Sentenced to 12 Years for Multimillion Fraud Scheme

Posted in Bank Fraud

Former President, Chief Executive Officer, Acting Chairman and Vice Chairman of FirstCity Bank Mark A. Conner was sentenced to 12 years’ imprisonment in the U.S. District Court for the Northern District of Georgia, as reported in the Canton-Sixes Patch. He had been indicted in March, along with FirstCity Vice President Clayton A. Coe. Conner and… Continue Reading

Former Director of Montgomery Bank & Trust Indicted for Embezzling $17 Million; Has Fled; Possible Suicide

Posted in Bank Fraud

Aubrey Lee Price, former Director of Montgomery Bank & Trust, was indicted yesterday in the U.S. District Court for the Southern District of Georgia in Savannah on charges of embezzling approximately $17 million from the bank. Price, however, disappeared in mid-June, according to SFGate. Price left a rambling confession which has caused investigators to believe… Continue Reading

National Lampoon’s Federal Fraud Trial

Posted in Fraud

The trial of the former CEO for the National Lampoon, Inc., Timothy S. Durham, on ten counts of wire fraud and one count of securities fraud, commenced yesterday in the U.S. District Court for the Southern District of Indiana, as reported by the San Francisco Chronicle. Durham is alleged to have defrauded approximately 5,000 investors,… Continue Reading

KY Attorney Bryan Coffman Ordered to Forfeit Millions from Oil-Drilling Scam

Posted in Forfeiture, Fraud

Lexington, Kentucky, attorney Bryan Coffman was convicted last year in the U.S. District Court for the Western District of Kentucky on eight counts of mail fraud, nine counts of wire fraud, two counts of securities fraud, 10 counts of money laundering and one count of money laundering conspiracy. His wife, Megan Coffman, was acquitted of the… Continue Reading

Horse Soring – A Federal Crime

Posted in Fraud

Largely playing out under the radar, except in local media, is a fascinating case out of the Eastern District of Tennessee. Last week 4 defendants, Jackie L. McConnell, 60, Jeff Dockery, 54, John Mays, 50, all from Collierville, Tennessee and Joseph R. Abernathy, 30, of Olive Branch, Miss., were arrested on a 52 count indictment… Continue Reading

Execs of Medical Laser Manufacturer Acquitted on Most Counts

Posted in Acquittal, Fraud

As reported by the Colorado Springs Gazette, former Chief Executive Officer John Schulte of Spectranetics Corp., a manufacturer of medical lasers, was convicted in the U.S. District Court for the District of Colorado yesterday on one count of lying to federal investigators but was acquitted on 11 counts of conspiring to defraud the Federal government. Trung Pham,… Continue Reading

7th Circuit Reverses Mail and Wire Fraud Conviction of Contractor for Alleged Bid Rigging

Posted in Fraud, Mail/WIre/Honest Services Fraud

Steven Fenzl was the principal of Urban Services of America, Inc. ("Urban"). Fenzl was charged with alleged mail fraud and wire fraud in the U.S. District Court for the Northern District of Illinois. The charges related to alleged bid-rigging under the Sherman Act on a 2005 contract to refurbish the City of Chicago’s garbage carts…. Continue Reading

Former Cartersville, GA, Mayor Sentenced for Mortgage Fraud

Posted in Fraud, Mortgage and Foreclosure Fraud

H. Gregory Cordell, the former Mayor of Cartersville, Georgia, was sentenced to over two years imprisonment last Friday in the U.S. District Court for the Northern District of Georgia for mortgage fraud, as reported by the Chattanoogan. According to statements by the U.S. Attorney’s Office for the Northern District of Georgia, Cordell inflated the purchase… Continue Reading

Northwest Georgia Banks and Credit Unions Hit By Debit Card Fraud

Posted in Fraud, Identity Theft

Federal investigators are investigating an outbreak of debit card fraud in Northwest Georgia, according to a story by WCRtv in Chattanooga. Customers of the Bank of LaFayette, Cohutta Banking Company, and Tennessee Valley Federal Credit Union in Chickamauga, LaFayette, Rossville and Trion in Northwest Georgia have reported having their accounts drained. Authorities believe that the… Continue Reading

Florida Attorney and Police Officers Acquitted of Federal Mortgage Fraud Charges

Posted in Acquittal, Fraud

Prosecutors with the U.S. Attorney’s Office for the Southern District of Florida have dropped charges of mortgage fraud against Plantation, Florida, attorney Steven Stoll and police officer Dennis Guarancino, according to the Miami Herald. Stoll and Guarancino were charged in relation to a $16.5 million dollar loan fraud scheme by Guarancino’s brother, Joseph Guarancino, also… Continue Reading

California Businessman Acquitted on Tax Charges; Did Not Review or Authorize Tax Filings Due to Kidnapping of Son

Posted in Acquittal, Fraud

Earlier this month, as reported in the Wall Street Journal’s MarketWatch, a Federal jury in the U.S. District Court for the Central District of California acquitted Howard H. Berger, a business consultant, on four criminal tax charges. The charges stemmed from Mr. Berger’s alleged filing of 2006 personal and partnership tax returns allegedly claiming a… Continue Reading

Atlanta Man Indicted in New York for Securities Fraud, Insider Trading

Posted in Fraud, indictment, Securities Fraud

Image source: www.google.com/imgres Scott Allen, of Atlanta, was charged last week with securities fraud and insider trading in the U.S. District Court Southern District of New York, according to the Wall Street Journal. The government alleges that Mr. Allen and John Bennett of Norwalk, Connecticut, conspired to make more than $2.6 million in profits on insider trades… Continue Reading