Hi, How Can We Help You?

Category Archives: 100B Conspiracy 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.

CONSPIRACY to TRANSPORT DANGEROUS DRUGS (Meth) for SALE and TRANSPORTATION of DRUGS for SALE REDUCED to POSSESSION of DRUG PARAPHERNALIA (Class 6 Open/Misdemeanor) with PROBATION and ZERO DAYS in JAIL- State v. Ms. S (DMC No. 7531) (Apache County Superior Court CR2006-280): Ms. S was a drug addict who also had bipolar disorder who was staying at her aunt’s just prior to checking into rehab. Her drug addict boyfriend showed up and convinced her to get in a car in order to travel to New Mexico. While driving they were stopped by the Police for minor traffic infraction and a large amount of cash and packaged methamphetamine was found in the vehicle. Both Ms. S and her boyfriend were arrested and charged.

We became involved and filled multiple Motions regarding the questionable nature of the stop. We also pointed out that it would be difficult for the state to prove Ms. S had knowledge of what was in her boyfriend’s car. Ultimately we secured a Plea Agreement which gave Ms. S Probation with zero days in jail. Unsuccessful completion of Probation, her case was designated a Misdemeanor and she had no Felony convictions on her record. Her ex boyfriend was not as lucky.

NOT CHARGED | FEDERAL TRANSPORTATION of  DRUGS FOR SALE/CONSPIRACY NOT CHARGED – State v. Mr. S. (DMC No. 6762) (DEA Investigated): Mr. S. was in a fraternity and he drove with a fraternity brother towards L.A.  He was stopped in Arizona, and a quarter pound of marijuana, cocaine, and 200 pills of ecstasy were found in the vehicle.   His fraternity brother was taken into jail, and Mr. S. was released.  We were able to enter into cooperation deal with the DEA Investigator and no charges were ever brought against Mr. S.

NOT CHARGED | AGGRAVATED ASSAULT – (Maricopa County) (DMC No. 6977): Ms. K. had a very volatile relationship with her boyfriend and had recently broken up with him. When she went to his house to retrieve her items, he became abusive and violent towards her. Ms. K. had 2 male companions who then engaged in a fight with her boyfriend. He suffered a concussion and some various broken bones as a result of the fight, and he sought to have her charged with Aggravated Assault and Conspiracy to Commit Aggravated Assault. After having Ms. K. take a polygraph test (which we submitted to the Detective), we were able to show that in fact her ex-boyfriend had attacked her 2 male companions, who were utilizing self-defense. No charges were brought against her, and she avoided being charged with a crime that carried a range of 5 to 15 years in prison.

DISMISSED | MORTGAGE FRAUD – Ms. V. was employed as an escrow officer in Phoenix and was charged with 37 Felony counts, including Wire Fraud, Conspiracy to Commit Money Laundering, Conspiracy to Commit Wire Fraud, and Engaging in Illegal Monetary Transactions Greater than $10,000.00. While she was an escrow officer she submitted to lenders several preliminary HUD-1 forms, also known as “Pre-audit” and final HUD-1 forms.  Other defendants and their family members were buyers (or the backers of “straw buyers”) of several homes (27 total) where Ms. V. was the escrow agent.  The alleged “cash back scheme” stemmed from these HUD-1 forms Ms. V. drafted that resulted in large sums of unearned/undeserved monies to be distributed to the buyer.  The charges against Ms. V. and the other Defendants arose from these illegal pay-outs.  Per the Assistant United States Attorney, the range of loss was between $2,500,000.00 and $7,000,000.00.  Ms. V. was unwittingly duped into submitting these HUD-1 forms without knowing illegal kickbacks were taking place.  Her charges were ultimately dismissed in full.

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

Call Now Button