Philadelphia Criminal Defense Lawyer Blog

On the same day that the United States Court of Appeals upheld the dismissal charges against 13 former KPMG executives due to a finding that their constitutional rights had been violated, the United States Justice Department announced new guidelines for the prosecution of white collar crime. In the KPMG case, federal prosecutors would not allow KPMG to pay the legal fees of its executives. This was just one of the many tactics used in the past by federal prosecutors to compel cooperation from corporations and its individuals. The department faced criticism from corporations, attorney groups, and legislatures over its practice of “cooperate or face indictment”. Often times, cooperation would involve compelling privileged information and testimony from corporate officers, attorneys, etc., and as seen in the KPMG case, restriction on the company from paying legal fees for its officers.

The new guidelines set forth that prosecutors may not undermine attorney-client privilege, consider whether the company is paying the legal fees of its employees, officers or directors being investigated for wrongdoing, and whether a company has made joint defense agreements with other firms or individuals. Prosecutors may also only consider whether a corporation has disciplined employees “that the corporation identifies as culpable, and only for the purpose of evaluating remedial measures or compliance program”, whereas before prosecutors could consider whether a corporation disciplined or fired employees for the purposes of evaluating cooperation. Some critics have called for permanent legislation rather than simply guidelines, including Pennsylvania Senator Arlen Specter, but agree that this is a step in the right direction. Corporate law groups also hope that similar guidelines are adopted by other government agencies, such as the Securities and Exchange Commission.

There are many types of white collar crime, ranging from RICO and Money Laundering to all types of Fraud. Attorney Marc Neff has over 20 years experience successfully representing corporate and business executives, professionals, public officials, and others charged with federal white collar crimes. For a confidential consultation, contact our office via phone at (215) 563-9800 or via e-mail at Marc@nefflawoffices.com.

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Posted In: Federal White Collar Crime , Money Laundering and Racketeering (RICO)

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Richard Gottfried, an ex-convict, concealed his criminal past in order to obtain employment as a court-appointed sentencing consultant in both Philadelphia and New York City. He advertised himself as a mitigation specialist, offering his services to criminal defense lawyers, promising to help gather information that would benefit defendants at sentencing hearings. In doing so, he was able to cheat the Philadelphia Court system out of nearly $400,000 and New York City Courts out of $60,000. Gottfried admitted to the Philadelphia scheme, but pled not guilty in New York, to charges of grand larceny, offering a false instrument for filing and falsifying business records.

Gottfried was involved in a New Jersey Real Estate scam in 1996, for which he served 20-months of a federal sentence; a crime for which District Attorney dubbed Gottfried a “Great Pretender”. However, he was able to charm himself into a position with the Philadelphia criminal court system. Five years later, he was accused of forging a phony law-degree, a phony psychologist’s license, and forging lawyer’s signatures on invoices which defrauded the city of nearly $400,000. He pled guilty to charges including theft by deception, in February of 2007, and was sentenced to as many as 23-months in prison.

In 2004, Gottfried began working for the New York City Court system and is accused of billing the city for over $60,000 worth of non-existent work relating to 42 defendants, one of which had already closed his case. Gottfried is currently on work-release for the charges he pled guilty to in Philadelphia. He faces a potential 15-year prison sentence if convicted in the New York City case.

The Law Offices of Marc Neff have over 20-years of experience successfully defending clients charged with fraud and related offenses. If you are under investigation of fraud, or have been charged with a criminal offense, contact our offices immediately. There are defenses available to you, and the Law Offices of Marc Neff can assist in developing a successful defense.

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Posted In: Federal White Collar Crime

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The late 1990’s saw the beginning of a housing boom, brought on by Federal programs which made buying a home easier through government-sponsored loan programs; such as Fannie Mae and Freddie Mac. This led to a sharp appreciation in housing values throughout the country; however it also led to a growing rate of mortgage fraud. Mortgage fraud continues to top the list of white-collar crimes throughout the country, and is considered a major factor in the bursting real-estate bubble we see today. Even now that the bubble has burst, we continue to see an increased rate of fraud in the form of foreclosure fraud and subprime shenanigans, says Michael J. Anderson, who oversees the FBI’s white-collar crime division in the Dallas, Texas area.

Federal Agencies have stepped-up their efforts to crack-down on the problem of mortgage fraud. In an operation dubbed “Operation Malicious Mortgage”, 406 people have been charged in 144 different cases throughout the country, between March 1 and June 18 of this year. Over the past 3-years, the FBI’s mortgage fraud caseload has doubled to about 1,400 cases. Although neither Pennsylvania nor New Jersey is considered amongst the top-10 states experiencing mortgage fraud, cases have been brought in the Delaware Valley. The FBI is focusing its efforts on fraud committed by industry insiders, such as appraisers who inflate a properties value for purposes of attaining a loan. During the housing boom, this practice was masked by the fact that housing values were increasing, making the value catch-up to the inflated rate of appraisal. However once the bubble burst, housing values slowed to a halt, making such fraud easily apparent.

According to the FBI, common forms of mortgage fraud include Property Slipping, Silent Second, Nominee Loans/ Straw Buyers, Equity Skimming, Inflated Appraisals, and Foreclosure Schemes. According to Anderson, “Mortgage fraud has continued to be a growing crime trend and it’s just a matter of how quickly can law enforcement catch up.”

Mortgage Fraud is just one area of white-collar crime handled by our offices. Marc Neff has over 20-years of experience successfully defending those accused of fraud and similar white-collar offenses. The Law Offices of Marc Neff can assist in your defense. For a confidential consultation, please contact our office at your earliest co

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Posted In: Federal White Collar Crime

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Recently, a piece of legislation which would make it illegal for federal prosecutors to order companies to turn-over privileged documents as part of a cooperation agreement, passed a U.S. House of Representatives vote; and now is backed by a dozen U.S. senators, 32 former federal prosecutors, and coalitions such as the ACLU. The practice of federal prosecutors obtaining privileged information through cooperation agreements has led to the obtaining of information which would otherwise have never been uncovered and in-turn, larger investigations and convictions. The Bill, which would make this practice illegal, has not been described as “pro-company” or “pro-business”, but rather based on the fundamental principles of legal counseling. Attorney-client privilege has always been a staple in our legal system, and the practice of forcing a company to disclose such privileged information contradicts this basic standard.

The Bill comes after a federal judge threw-out several individual indictments against employees of KPMG, after learning that federal prosecutors banned KPMG from paying their employee’s legal fees. The judge ruled such imposition on the individuals as onerous. Stemming from this decision, and similar decisions following the ruling, the Attorney-Client Privilege Protection Act was written; and if passed, would limit the right of prosecutor’s to demand privileged information from companies attempting to seek a plea agreement or deferred prosecution agreement. The Bill would not impose penalties on prosecutors who violate the law, however, it would make information obtained illegally inadmissible. The Bill is expected to pass either before the Senate’s summer recess or soon after the inauguration of the next President.

Attorney-client privilege is a legal concept that protects communications between a client and his or her attorney and keeps those communications confidential. For a confidential consultation regarding current or potential legal issues, contact the Law Offices of Marc Neff at your earliest convenience.

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Posted In: Federal White Collar Crime

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