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Category Archives: 40 Theft and Fraud Jury/Bench Trial Victories

State v. Mr. X (DMC No. 15553) – Felony Wire Fraud ($710,290) and Felony Embezzlement – Not Charged Due to Cooperation and Co-Defendant Conviction – United States Attorneys Office, District of Arizona and FBI Investigated). Mr. X owned a company that sold large shipping containers, electronic control panel systems, and other types of business equipment. Mr. X had an employee who was locating the same types of equipment on the internet and purchasing them for lower prices. This employee then engaged in a Fraudulent Scheme whereby he would have Mr. X’s company pay the full price of what piece of equipment would normally be, and then he would simply purchase it for less on the Internet. The employee would then fulfill the order to the end-user, while also diverting new equipment manufactured by Mr. X to be sold separately.
There were 43 such transactions and the FBI became involved. They had issued a “Target Letter” to Mr. X indicating that the US Attorney was involved and that Mr. X may need to hire an attorney. When we spoke with the FBI agents and the Assistant US Attorney, we were able to show them that Mr. X had no knowledge of his former employee’s Fraudulent Scheme. The former employee was ultimately charged and sentenced to 30 months in prison. Specifically, in his plea agreement, it indicated that Mr. X had no knowledge, nor did his company, of the underlying scheme being perpetrated by the employee. Originally, Mr. X could have also gone to prison if we were not able to keep him from being indicted. He has no criminal record whatsoever.

NOT GUILTY / COMPLETE ACQUITTAL | FELONY 6 COUNTS BANK AND WIRE FRAUD – Mr. J was a partner in JWJ Construction and Contracting.  This company handled projects that included paving the runways for the Sky Harbor Airport, amongst other large scale jobs.  At the direction of his partner and their accountant, he was tricked into signing various loan documents which did not properly reflect JWJ’s assets and liabilities.  Eventually, the loans defaulted which resulted in a $1,500,000.00 loss to the bank, and $18,000,000.00 loss to the bonding company.  Mr. J was subsequently charged with one count of Bank Fraud, three counts of Wire Fraud, one count of Conspiracy, and one count of False Statements to a Federally Insured Institution.  His case went to Jury Trial and David Cantor received a Not Guilty verdict on all six counts (a Complete Acquittal).  Mr. J’s partner and accountant each cut a deal with the prosecution to testify against Mr. J.  The accountant received a felony and was placed on probation, and Mr. J’s partner was sentenced to over one year in prison.

US District Court of Arizona No CR98-809-PHX-EHC

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