California Criminal Defense Lawyer Blog

A Yorba Linda, California man is under fire from the Securities and Exchange Commission after an investigation revealed what appeared to be a Ponzi-like scheme to defraud investors while paying off older investors.

Matthew Jennings, 39, a resident of Yorba Linda, California, a pleasant suburb of Orange County, is looking at having all of his assets frozen by a federal judge while the government takes a look at his records to see how much money was inappropriately diverted from investors.

In one instance, the SEC alleges that Jennings took $300,000 from investment accounts and deposited it into his own accounts. In the SEC's view, it appears he was enriching himself wrongfully.

White Collar fraud takes many forms. investment fraud is one version, and requires a lot of effort to accomplish. In this case, many companies were created, possibly with a view to divert funds improperly, without being discovered. Whether or not Jennings intended to service these investment accounts will be an issue, in terms of degree of culpability. In any event, he will need an experienced White Collar defense attorney to assist him, to try and head off a criminal filing.

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You can't steal this much money and be stupid, can you? Apparently, Kathy Chen thought so. Now, not so much. Chen was arrested recently for buying 35 properties using stolen names or likely paying people to use their identity to get loans.

The total amount of fraud? 17.5 million dollars. She had help. Two others, believed to be in Mexico, helped her steal the money. This kind of fraud has become rampant, especially during the credit boom earlier in the decade. Lenders didn't look too hard at borrowers, instead relying on rising home values to protect them in case of default.

Chen, 49, of Westminster, California, is facing over 100 years in prison on these charges. Most thieves don't save their money. White collar fraud cases can resolve well if the defendants can pay back the money, but if not, the state prison system awaits.

White Collar fraud takes many forms. Mortgage fraud is one version, and requires a lot of effort to accomplish. Whether or not Chen intended to service these loans will be an issue, in terms of degree of culpability. In any event, she will need an experienced White Collar defense attorney to assist her.

Continue reading "Orange County Woman Defrauds Lenders of Millions" »

The Securities and Exchange Commission today charged Irvine-based Brookstreet Securities and it's CEO, Stanley Brooks with Fraud, alleging they sold risky mortgage-backed securities to investors and failed to inform them properly of the risks.

These types of investment vehicles are at the heart of the collapse of the U.S. and global financial system last fall. Crafty Wall Street investment houses figured out how to bundle together all kinds of mortgages, some solid, many high-risk, and then sell them to investors looking to make money on the interest payments. Investment firms all over the United States, California and Orange County got in on the gold rush and sold them along to others.

Many of the people selling these securitized loans didn't realize what a time bomb they were pushing on unsuspecting clients. Moody's Investment Service gave many of the bundled loans a high rating, sending a message to the market that the loans were safe. and AIG made side deals to insure the loans, making them appear even more risk-free. An open question is to what degree the packagers were disclosing the contents of the bundled loans, known as tranches.

Brookstreet allegedly sold $300 million dollars worth of these loans. Many of those loans were used for margin trades by another company, further increasing the risk of default.

The case against Brookstreet is a civil one. There have been no criminal filings to date, though that can't be ruled out. The U.S. Attorney would have to investigate whether the conduct on the part of Brookstreet rose to the level of criminal fraud, Additionally, there may be a better chance for the SEC to recover money in a civil setting than criminal. Additionally, the level of proof is lower in the civil arena, requiring only a preponderance of evidence to show liability vs. proof beyond a reasonable doubt in the criminal context.

White-collar fraud is on the rise as new, arcane and confusing investment vehicles are cooked up out of the sight of the regulators. If you are charged with any type of securities fraud, you will need help dealing with regulators, the SEC and other investigative agencies, as well as the US attorney's office. Whether you live in Santa Ana, Laguna Niguel or anywhere else in southern california, if you are charged with fraud, call an experienced criminal defense attorney right away to assist you.

Continue reading "San Clemente, California Man Charged with SEC Fraud" »

Margot Jean Strawn was a former accountant and trustee to the Pellissier family. She was in charge of managing trust funds for two children of the family. Over a six year period, Strawn stole more than $500,000 from the fund to buy herself a doll collection. She would write personal checks to herself from the fund and then deposit it into her own checking account. She also failed to file her tax returns and worked as an accountant even after her license expired. She was sentenced to two felony counts of grand theft with enhancements for aggravated white collar crime. This week, she was sentenced to four years in prison and ordered to pay back the money she stole.

A white collar crime is a crime committed by someone in the course of their occupation. Types of white collar crimes include fraud, forgery, embezzlement, etc. Most people think that people charged with white collar crimes get special treatment since they have a lot of money. They are also thought to be sentenced to less time in prison and are sentenced to low security prisons that have many amenities. This is becoming less true as more and more white collar crimes are being recognized and prosecuted. Whether you live in Irvine, Newport Beach or Coto De Caza, if are you charged with white collar crime or grand theft, call an experienced criminal defense attorney right away to assist you.

Continue reading "58-Year-Old Laguna Hills Woman Charged With Grand Theft" »