Orange County Criminal Attorney Blog

A grand jury in Orange County, New York indicted Jessica Vega on April 10, 2012 on six felony and one misdemeanor counts for fraud and larceny. Vega allegedly pretended to have terminal cancer prior to her wedding, receiving donations for the wedding and honeymoon after the media reported her story. Four months after the wedding, her husband, Michael O'Connell, told the media that she had faked her cancer diagnosis in order to "scam" him and others. The two have since divorced and reunited in Virginia. The New York Attorney General's Office accuses Vega of profiting from the community's generosity.

Vega allegedly claimed that she had terminal acute myeloid leukemia in early 2010, with less than a year to live. Friends, family, and others reportedly joined together to help raise money and plan her wedding to O'Connell. The Times Herald-Record reported her story on April 26, 2010, saying that the then-23-year-old Vega needed a wedding dress by May 2 for her dream wedding. The media coverage brought in even more donations. Vega reportedly accepted thousands of dollars worth of donated goods and services.

Vega and O'Connell were married on May 2, 2010, and took their honeymoon in Aruba. By Labor Day weekend that year, the couple had separated. The Times Herald-Record reported O'Connell's fraud allegations on September 6. Vega's health had not worsened, O'Connell said. He also said that he believed the letter Vega had that supposedly confirmed her leukemia diagnosis, from Dr. Dan Costin, was fake. Staff members at Dr. Costin's office confirmed that Vega had never been a patient there. Vega denied any and all allegations of fraud. She told a Times Herald-Record reporter that she had begun seeing a different doctor, although that was never confirmed.

Prosecutors charged Vega with six felonies, one count of first-degree scheming to defraud and five counts of fourth-degree grand larceny; and one misdemeanor, third-degree criminal possession of a forged instrument. Each felony charge carries a penalty of one-and-a-half to four years imprisonment. "Grand larceny in the fourth degree," under New York law, includes stealing property worth more than $1,000. "Stealing" is generally defined as wrongfully taking or obtaining property from its owner "with intent to deprive" the owner of the property. Prosecutors must prove that Vega intended to deprive people of their money and services, and that her intent was wrongful. Vega has pleaded not guilty. She is in the Orange County Jail on $10,000 cash bail or $30,000 bond.

Continue reading "Woman Who Faked Cancer to Get Donations for Her Wedding and Honeymoon Charged with Fraud" »

An Orange County man faces multiple criminal charges, including money laundering and grand theft, for an alleged gold investment scam. In early 2011, William Scott Spalding allegedly set up several businesses to solicit cash from gold investors. According to prosecutors, Spalding would pose as a gold investor and promise a high rate of return if people purchased gold from him. One Huntington Beach woman reportedly entered into a contract with Spalding in March 2011. The contract stated that she would pay him $280,000 and he would provide her with a certain amount of gold "in the immediate future." She gave Spalding the money, but he allegedly never purchased any gold. After what she described as multiple unsuccessful attempts to contact Spalding to get her money back, she notified law enforcement.

The U.S. Marshals Service and Huntington Beach police arrested Spalding in August 2011 for suspicion of using business fronts to "extort" money from prospective investors for promises of gold. Investigators reported that, prior to his arrest, they found that Spalding's phone was disconnected and the address associated with his businesses was fake. Spalding had also legally changed his name to Jonathan Scott Morgan in April. After his arrest, police described Spalding "living the high life" at his home in Irvine, with several new cars and large amounts of cash. Investigators claim he put the money obtained from the Huntington Beach woman into personal accounts and used it to pay for expenses like the cars and the house.

Spalding had served forty months in federal prison for a scheme involving a movie deal that reportedly defrauded several people in Redondo Beach out of $300,000. He had only recently been released from prison when the alleged gold investment scam would have taken place. The requirements of his release from prison included payment of restitution to his victims and avoidance of criminal activity. He reportedly did not pay restitution as required and was already considered a fugitive at the time of his arrest.

Spalding's recent prison release and fugitive status, in combination with his reportedly lavish lifestyle, led investigators to speculate that he had more than one victim in the gold investment scheme. Huntington Beach police requested assistance from the public in identifying additional victims after Spalding's arrest.

Continue reading "Alleged Gold Investment Fraud Results in Multiple Criminal Charges for Orange County Man" »

A man robbed a TD Bank location in Titusville, Florida at about 12:30 p.m. on Sunday, January 29, 2012. Wearing a wig and sunglasses, he reportedly went up to a teller and passed a note that said "give me the money." He also gave the teller a bag, who filled it with $1,200 and a GPS tracking device. Witnesses reported that they did not see a weapon, and no one was injured. The man fled the scene, police said, in a custom-wheeled gold or silver SUV. Law enforcement enlisted the assistance of the public in identifying the robber. The subsequent course of events has been unusual.

Police arrested Johnny Lee Bell, a 43 year-old Orlando resident, on February 8 on warrants for grand theft and robbery. A search of his home reportedly turned up what police believe was his disguise worn during the robbery, as well as the getaway vehicle.

While holding Bell on $150,000 bond, Titusville police identified Bell's wife, Sharon Reynolds-Bell, as the likely accomplice who drove the SUV in which he left the bank. Reynolds-Bell works as a school bus dispatcher for the Orange County School District in Titusville. Police requested further assistance from the public on February 11, specifically identifying Reynolds-Bell as a suspect and asking anyone with information about the case to come forward. They arrested Reynolds-Bell for robbery but have not filed formal charges against her yet.

According to Orlando's WFTV news, "court records" show that Reynolds-Bell dropped Bell off at the bank, and that she waited for him while he robbed the bank and drove away with him when he came back out. WFTV also cites "court records" that say Reynolds-Bell admitted to participating in the robbery, although it is not clear when or to whom she made this admission.

Although Reynolds-Bell does not face a formal criminal charge in the robbery, she has entered a plea of not guilty. Her attorney maintains that she was not involved in any robbery and that police and prosecutors have been "overzealous" with the case.

Continue reading "School Bus Dispatcher Suspected as Bank Robbery Getaway Driver" »

A Florida woman who formerly worked as a legal assistant faces charges of credit card fraud stemming from alleged use of several law firm credit cards. Prosecutors allege that Kristina Petrik, age 38, defrauded her former employer, a Melbourne, Florida-based law firm, out of around $12,000. She reportedly used credit and debit cards belonging to the law firm at least eighty-eight times over the course of a year, Petrik has been charged with three counts of fraudulent use of a credit card and one count of scheming to commit fraud.

According to police, Petrik had run into some "family trouble" when she began using the law firm's credit cards for her own purchases. She had access to the firm's credit accounts because of her position of employment. The firm represents clients in claims for Social Security disability benefits. Petrik allegedly purchased clothing and other goods, software, and paid the cost of a family portrait with law firm credit cards.

Petrik reportedly requested two weeks' leave to spend time with family. During her leave, others in the office discovered the alleged purchases. Police arrested her the morning of Wednesday, February 1, 2012. According to Florida Today, police arrested Petrik at her "new place of employment." It is not clear when she ceased employment with the law firm.

Florida law defines "fraudulent use of credit cards" as any use of a credit card to obtain something of value with the intent to defraud, without the consent of the cardholder, and by purporting to be an authorized user of the card. Penalties vary depending on the length of time the card was used and the total amount of value obtained. Use of a card more than twice, and for amounts exceeding $100 is treated as a third-degree felony in Florida. Petrik potentially faces penalties of up to five years in prison and fines up to $5,000. She would also most likely have to make restitution of the amount of the alleged fraud.

Continue reading "Former Law Firm Employee Charged with Credit Card Fraud" »

A judge sentenced a Queens family to a collective 418 year prison sentence for a con job that took about $2 million from fellow immigrants. The Ramsundar family, consisting of Shane, age 50, his wife Gomatee, 46, and their daughter Shantal, 23, were convicted in November 2011 of multiple criminal offenses including grand larceny and money laundering. They are immigrants from Trinidad, located in the Caribbean. Their alleged con had two parts. One involved obtaining money from other members of the immigrant community purportedly to purchase properties that had been seized by federal law enforcement. The other involved convincing immigrants that they could assist them in obtaining green cards and in removing immigrants' names from various law enforcement lists. Shane Ramsundar would impersonate an Immigration and Customs Enforcement (ICE) agent. He kept false identification, a fake badge, and an air pistol as part of the ruse. He approached many of his victims at Hindu temples in and around his Queens neighborhood and built trust through shared religion and nationality.

He would reportedly tell victims that federal agents could bid preferentially on properties seized by the IRS and DEA before they were auctioned to the public. He received as much as $1.5 million from ten victims, who were told the money was to buy properties in Florida and Queens. He would also tell victims that he could help them, for a price, to obtain green cards, and that he could have their names removed from certain government watch lists. He received up to $250,000 from twelve people for this. In all, the family reportedly defrauded nineteen people, with some of them giving money to both scams.

Gomatee Rasmundar was accused of facilitating the immigration scam by convincing victims that they could get them green cards. Shantal Gomatee was accused of laundering the money obtained from the victims. The family reportedly used eleven different bank accounts for the money, eight of which were in Shantal's name.

The Rasmundars were indicted in March 2010 on thirty-four counts. In addition to money laundering and grand larceny, they faced conspiracy charges, criminal impersonation, and a charge related to unlawful possession of an air pistol. They all pleaded not guilty, and the case went to trial in late 2011. A jury convicted all of them on November 22, 2011. Shane Rasmundar received the maximum allowable sentence of 235 years. Gomatee Rasmundar was sentenced to 153 years in prison, and Shantal Rasmundar received a 30-year sentence.

Continue reading "Family Convicted of Fraud and Money Laundering Scheme Gets Over 400 Years in Prison" »

After an attempt to modify her home mortgage went wrong, a Mission Viejo homeowner took it upon herself to investigate the company, eventually taking them to small claims court to recover around $7,000. Her efforts brought the company to the attention of law enforcement, and the company's owners now face multiple charges for theft and conspiracy.

Danielle Holmberg, as reported in the Orange County Register, met with a representative of a company, Green Credit Solutions, that claimed it could cut her mortgage payments in half. A friend had referred the company to her, so she took a meeting in mid-2009. She and her husband agreed to an up-front payment of $3,495 to modify their loan. They also paid the same fee to modify the mortgage on a house they own in Florida.

Weeks passed, and she reportedly tried to contact the company every other week. They told her repeatedly that the modification was in progress but would take time. Holmberg had researched the company online and found a large number of complaints, but she trusted her friend's endorsement and had proceeded with Green Credit anyway. After multiple conversation with the company, she decided to look deeper.

Holmberg learned that the California Department of Real Estate had ordered the company to stop collecting what it called "illegal upfront fees" several weeks before she and her husband met with them to pay the fee. The state also contended that Green Credit did not have a valid real estate license that would allow it to engage in the business of loan modification. Holmberg researched the company, its owners, and others affiliated with the business. She began to send letters, with the help of a legal aid organization, demanding the return of her $6,990.

Eventually, Holmberg filed suit in a small claims court to recover her almost $7,000 from Green Credit. She learned that her letters had drawn the attention of the California State Bar. An investigator with the Bar told her that the Bar has raided Green Credit's offices and found her demand letters. She also learned that the Department of Justice had gotten involved in the Bar's investigation. She subpoenaed the investigator, the Department of Real Estate, and the Department of Justice to testify at her small claims trial. She prevailed against Green Credit at the trial, and the court pierced the corporate veil and held the two owners personally liable.

Continue reading "Prosecution of Mortgage Loan Company for Fraud Results from Investigation by Orange County Homeowner" »

In a scene reminiscent of the Bernard Madoff scandal in New York, two Orange County men who held themselves out as investment and financial experts have pleaded guilty to multiple felony counts of theft, fraud, and more. Both were accused of taking money from investors and, instead of managing and investing it as promised, keeping it or using it to pay previous investors. In all, the two stole upwards of $10 million, according to the charges brought against them. Cases such as these, often known as "white collar" crimes, present many difficulties for criminal defense lawyers. The burden of proof for the prosecution is very high, but the risks to a defendant are also quite high, not to mention the risk of negative publicity.

Hitomi Tsuyuki initially faced 200 felony charges for stealing more than $2.8 million from his clients. This occurred over a 10-year period from 1997 to 2007. In September 2011 he pleaded guilty to 29 of the charges, including 17 counts of false statements regarding the sale of securities, 10 counts of theft from the elderly, and one count each of grand theft and using a scheme to defraud. Among the 33 clients he defrauded were family members, people he met through his father's church, and numerous elderly people. He had known some of his victims since childhood. Tsuyuki's legal problems began earlier than the criminal case. The same day the Orange County District Attorney announced the indictment of Tsuyuki in June 2008, a lawyer filed a judgment for almost $400,000 against him based on a securities arbitration claim filed in 2006. The claim related to a family of investors who accused Tsuyuki of fraud and theft. A judge sentenced Tsuyuki to the maximum of 18 years in state prison in early November.

Mark Alan Helsing pleaded guilty in October to 68 felony counts for defrauding twelve investors out of $6.9 million during a period from 2004 to 2007. The charges included 55 counts of grand theft, seven counts of false recorded documents, and six counts of financial exploitation of elders. He had previously pleaded guilty to six theft and check fraud charges in June 2009. Many of Helsing's clients were apparently his longtime friends. He operated as a "hard money lender," loaning money using private investor funds instead of banks. Authorities alleged that he would take investor money and, instead of lending the fund, use some money to falsify interest payments and embezzle the rest.

Continue reading "Two Orange County Investment Advisers Plead Guilty to Multiple Theft, Fraud Charges" »

A life-size statue of former president Ronald Reagan in a Newport Beach park sustained damage in a theft attempt. A witness reported seeing a man attach a rope or chain to the base of statue and attempt to pull it out with a pickup truck. The man only succeeded in breaking the bronze statue off of its foundation. Authorities found it tilting forward at about 5:30 the morning of Sunday, November 6, 2011, but lost the alleged perpetrator. The attempted theft occurred some time during the night. A Newport Beach police sergeant noted, "Either someone really didn't like Reagan or they tried to steal it so they can sell it for scrap metal." The City of Newport Beach has offered a $5,000 reward for information on the incident.

The statute was dedicated in Bonita Canyon Sports Park in Newport Beach on October 9, 2011, in honor of the 100th anniversary of the former president's birth. Nearly a year of controversy preceded the dedication, with dispute among residents about whether to rename the park for President Reagan. The $60,000 statue was financed entirely by private donations. Authorities have not said how much it will cost to repair the statue. City work crews removed the statue from its base in order to perform repairs.

Since the statue was a donation to a city park, it is publicly-owned property. The reward offered by the city certainly indicates that they wish to find the alleged culprit. The question then pertains to what crime was actually committed. California identifies theft of most types of property valued over $950 as "grand theft." At a cost of $60,000 and unknown repair costs, the statue certainly fits this definition. The penalty of up to one year imprisonment would not apply in this case, because no actual theft occurred. The Penal Code allows for a lesser punishment, usually one-half of the punishment prescribed for a specific offense, for an attempted offense. With the statue itself and witness testimony, a prosecutor may feel confident in bringing attempted theft charges, if the alleged perpetrator is ever found.

Continue reading "Statue of Ronald Reagan in Orange County Park Endures Theft Attempt" »

A federal judge in Boston sentenced a Dorchester, Massachusetts man to six years imprisonment, followed by three years' supervised release, for a series of false claims for physical therapy treatments submitted to automobile insurance companies. The man was convicted for submitting false claims to 19 different insurance companies. The court further ordered him to pay restitution totalling $461,624 and to forfeit an additional $303,195. A licensed physical therapist in his employ, charged as a co-conspirator, received a five-year prison sentence for the fraudulent claims.

The man owned a physical therapy clinic in Brockton, Massachusetts. According to evidence presented in court, he directed the physical therapist to falsify patient records to show nonexistent treatments. Some patients' charts had false entries added to them, while other charts were completely fabricated for patients who had never even received physical therapy treatment at the clinic. The man received hundreds of thousands of dollars from auto insurance companies for the false claims.

Health care fraud has become a serious problem all over the country. Health care practitioners can commit fraud in a number of different ways, and all of them have the potential to pass costs on to patients and consumers. In addition to false claims like those in the above case, fraud cases can include duplicate claims for the same service, altering dates or descriptions of services, deliberate incorrect reporting of treatments or diagnoses to increase payment amounts, and even prescribing unnecessary medications or treatments. The federal government estimates that the cost of fraudulent health care claims accounts for 10 cents of every dollar spent on health care.

Federal law requires insurers to pay legitimate claims within 30 days of the date a patient or health care provider presents the claim. While this protects patients and legitimate providers who may need quick access to treatment and funds, it makes the job of investigating and stopping payment on fraudulent claims difficult. The investigation of health care fraud is often handled internally by insurance companies. Jurisdiction for these investigations legally falls on the United States Postal Service, the Federal Bureau of Investigation, and the Office of the Inspector General. The Health Insurance Portability and Accountability Act (HIPAA), which became law in 1996, created a Health Care Fraud and Abuse Program to support investigation and prosecution of fraudulent claims in both public and private health care plans.

Continue reading "False Health Care Claims Lead to Six-Year Prison Sentence" »

Philadelphia police arrested three people this weekend after a landlord found four mentally disabled adults held captive in the basement of his building. He found them while investigating a dog dish he found in the basement, expecting to find a dog hidden somewhere. Investigators believe the four spent a week trapped in a tiny room, 10 feet by 15 feet, with little food or water. One person was chained to a radiator. The three suspects and the four captives apparently traveled together from Texas to Florida and then Philadelphia. The suspects are accused of holding the people captive in order to steal their social security checks and face numerous criminal charges.

Both Philadelphia police and the FBI are investigating the case. The suspects face multiple charges, including aggravated assault, kidnapping, and criminal conspiracy. Since the group may have crossed state lines in the course of committing various crimes, they could face prosecution under both Pennsylvania and federal criminal statutes.

Authorities have charged the suspects with multiple offenses related to the crime of kidnapping. "Kidnapping" is legally defined as the act of transporting a person against that person's will, often with the intent to keep the person confined. The purpose of the kidnapping is not as important as the intent to move the person without consent, although punishment may be enhanced if the kidnapping is for ransom or if the defendant used a weapon. Kidnapping is considered a serious felony. The suspects also face charges of unlawful restraint and false imprisonment. These offenses refer to the act of holding a person against the person's will, particularly by restraining someone to an object like the radiator. False imprisonment is both a felony criminal offense and a civil tort claim.

The suspects have also been charged with aggravated assault. This could refer to the act of transporting the people or holding them against their will, as well as the harsh conditions in which they kept them. Besides lacking food and water, police reported that the room reeked of human waste. The crime of assault can include more than a stab or punch. It can involve any sort of physical contact without consent. The severity of the peoples' confinement allows authorities to enhance the offense by adding the "aggravated" factor.

Continue reading "Four Mentally Disabled People Kidnapped and Held Captive in Philadelphia" »

A man who worked as a manager at an Orange County fireworks company has pled guilty to stealing over $100,000 from his employer.

TNT Fireworks of Fullerton was the victim of the thefts. Nearly 200 fraudulent checks were written by the defendant, allegedly for city permits. The victim discovered the loss in 2008 during a review of the company's finances.

Part of the plea will be a prison sentence of approximately 2 years and restitution of over $100,000. The defendant will plead guilty to 5 felony counts.

The difficulty for a criminal defense attorney in representing an individual charged with this kind of crime is twofold. First, because these incidents occurred over a very long period of time, the amount of the theft is very high and there can be multiple felony counts involved. Second, because these thefts were committed by someone in a position of trust, embezzlement charges are typically involved and such charges can bring a very substantial amount of incarceration time.

Victims in these types of cases are understandably upset. The companies are often small businesses and the loss of $100,000+ can effectively destroy their day-to-day operations. When you couple all of this with the feeling of betrayal caused by what may have been a trusted employee, or even a friend, great care must be taken by the defense attorney.

Government officials have uncovered nearly 52,000 fraudulent tax returns in Georgia in 2010. The Director of the State Revenue Department-Office of Special Investigations says this type of crime is becoming very prevalent. This 52,000 is up from 29,000 in 2009 and they still do not know how much of it they are catching. Nearly 41 million dollars in refunds are being held up.

Many taxpayers do not know they have been a victim until it is too late. Before one taxpayer could file his 2010 taxes, he received a bill from the IRS in the amount of $3,400. The defrauded taxpayer had learned his social security number had been stolen. This theft not only prevented him from filing his return, but actually put him in debt as well.

People who commit this type of crime usually use stolen social security numbers or bank information. However, some unscrupulous tax preparers have been known to use client information to commit tax frauds. The Office of the U.S. Treasury Inspector General for Tax Administration has recently required all professional tax preparers to register with the Treasury Department by 2014.

It is important for taxpayers to be very wary when dealing with anyone who claims to be from the IRS or anyone who calls and asks for confidential information, especially social security numbers. It is also a good idea for people to seek quality referrals to tax preparers. Criminals who conduct these types of scams are experts at getting confidential information, so it is important to carefully guard all of your sensitive information.

To anyone who has traveled in Southern California, traffic jams are a part of everyday life. The traffic jam Northern China is now experiencing, however, dwarfs anything Southern California has ever seen. The traffic jam, nearly 60 miles long and expected to last almost 3 weeks, has had some motorists stuck in their cars for 5 days. The truly amazing thing about this mammoth gridlock is the lack of violent road rage. No assaults, batteries, domestic violence or even theft incidences have been reported. I shudder to think what would have happened had this occurred in L.A.