In the state of New York, there are people who seek to obtain money by setting up schemes. There are two major types of schemes: pyramid schemes and Ponzi schemes. While both types of schemes are illegal, they are set up and work in different ways.
New York residents may have seen media reports concerning a number of proposals made by a federal panel that would change the way penalties are calculated for white collar crimes such as fraud and embezzlement. While defense attorneys have criticized the proposed reforms for not going far enough, the U.S. Department of Justice has come out against the measures. The department made its views known by releasing a letter during a March 12 U.S. Sentencing Commission hearing.
Most people have probably heard of identity theft in New York, but they may not be completely aware of what it involves. Generally, identity theft involves a person obtaining and using another person's identifying information in order to gain a benefit. Normally, the benefit received is a financial one.
A New York attorney general announced on Jan. 15 that he planned to bring fraud cases against large banks that were accused of selling securities that were mortgage-backed prior to the United States' 2008 financial crisis. Some of the targeted banks include Bank of America Corporation, Citigroup Inc. and JP Morgan Chase & Co.
On Dec. 10, a 48-year-old man was the fourth former employee of Bernard L. Madoff Investment Securities LLC. to be convicted and sentenced on securities fraud charges and conspiracy. The man worked as a computer programmer from 1991 to 2008, an era of Madoff's Ponzi scheme that cost investors billions.
Individuals in New York may have heard of Ponzi schemes. A Ponzi scheme is an illegal investment scheme in which money is generated from new investors. It is named for a man named Charles Ponzi who ran a fraudulent investment scheme in New England in the 1920s related to postage stamp speculation. Ponzi told investors they would get a 50 percent return after 90 days. After first supporting his scheme with international mail coupons, he then turned to using the funds of new investors to pay longer-term investors in the way that Ponzi schemes are known for today.
A 38-year-old man from Bayside, Queens, was taken into custody on Aug. 7 in connection with fraudulent credit card and counterfeit document use. A Westbury hotel reportedly experienced losses of $18,000 due to the man's presentation of fraudulent cards in payment during his time staying at the premises. Payments were eventually declined by the credit card company. Authorities indicate the man rented another room in East Garden City where a search was reportedly made with his consent. The search allegedly turned up several identifications and credit cards that were fraudulent as well as counterfeit driver's licenses. He was also allegedly in possession of equipment and materials needed for the production of such documents.
New York concertgoers may have heard that six people were indicted on July 23 for stealing account information from StubHub in order to illegally buy approximately 3,500 tickets. Prosecutors charged the accused individuals with 117 counts that included money laundering, possession of stolen property and grand larceny.
A New York man pleaded guilty to being involved in a child-modeling fraud scheme that defrauded clients out of approximately $236,000 and was sentenced to a maximum of five years in prison. According to the report, the 45-year-old Smithtown resident pleaded guilty to two counts of third-degree grand larceny and one count of first-degree scheme to defraud in addition to one count of fifth-degree conspiracy in May.
The owner of a New York jewelry store has admitted to participating in a massive credit card fraud scheme. According to the New Jersey U.S. Attorney, he one of 19 members of the alleged conspiracy to plead guilty. The man is scheduled for sentencing in September and faces harsh penalties under federal law. He could receive a prison term of up to 30 years as well as a fine of up to $1 million.