Articles Posted in White Collar Crimes

U4-Disclosure-300x166Financial professionals who have taken and passed the Series 6, 7, 63, 65 or 66 exams know that an arrest and conviction can decimate careers regulated and overseen by FINRA. Many of these men and women, however, are unaware that New York State allows people with no more than two criminal convictions, of which only one can be a non-violent felony, to apply to have their criminal record sealed pursuant to NY Criminal Procedure law 160.59. Although not expunged, once the record is sealed, except for some specified organizations and law enforcement agencies, employers and the general public are prevented from “seeing” their past. With the above in mind, the following questions come time mind that are worthy of review with a lawyer versed in New York sealing law.  If, for example, you were convicted of Assault, Criminal Possession of a Controlled Substance or even Grand Larceny, must you disclose on your FINRA U4 the old arrest and criminal conviction if you successfully had the same sealed? For that matter, if you already shared the information as broker-dealers are obliged, is there a way to remove these records or prevent FINRA from keeping or sharing your history or taking adverse actions? Simply (albeit, not that simply), before responding to Criminal Disclosure questions 14A and 14B and determining how to protect yourself if you already disclosed a now sealed criminal conviction, it behooves you to discuss your specific matter with a knowledgeable attorney experienced in NYS’s pseudo-expungement law, FINRA’s U4 and relevant statutes including NYS Human Rights Law 296(16).

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As miserable as it likely was for Kristaps Porzingis to play for the perennially cellar-dwelling New York Knicks, the current Dallas Maverick’s All-Star forward is in the type of foul trouble that outweighs any he experienced at Madison Square Garden. Either a victim of Extortion and Blackmail or a man on the precipice of an arrest for a heinous Rape crime, the “Unicorn” finds himself playing both offense and defense as the game clock is expiring.

If what alleged is true, forcing another person to engage in sexual intercourse by a threat or use of physical force – defined as “forcible compulsion” in the New York Penal Law – is not only a statutorily identified “violent crime” of First Degree Rape, but exposes a person to registration as a sex offender upon conviction. Alternatively, if the complainant’s allegation was nothing but a money grab to unjustly enrich herself, then in lieu of find himself with handcuffs slapped on his wrists, 7’3” Latvian can steal the ball of public opinion and the criminal justice system and demand that the Manhattan District Attorney’s office prosecute his accuser for Second Degree Attempted Grand Larceny by Extortion in violation of New York Penal Law 110/155.40.

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Some may deem Paul Manafort’s roughly seven and a half year sentence in Federal Court as light, but should the Manhattan District Attorney’s Office prevail in its prosecution of Manafort, the former Trump campaign chairman, lobbyist and jet-setter will likely not be so fortunate the second time around. While there may be Double Jeopardy grounds that the criminal defense team can explore to dismiss the indictment if close enough to the Federal case, if convicted of First Degree Residential Mortgage Fraud or the lesser offense of Attempted First Degree Residential Mortgage Fraud as reflected in New York Penal Law sections 187.25 and 110/187.25 respectively, Manafort’s days (years?) of yearning for the penthouse will be that much longer as he cools his heels in the Big House.  Whether or not he is deemed a “predicate felon” for his Federal conviction, meaning New York views his plea and sentence as a prior felony in this state, Manafort would face up to 25 years in prison and no less than 1 to 3  years for the class B felony of Residential Mortgage Fraud in the First Degree. In the event he is deemed a “predicate felon,” his minimum sentence would be 4.5 to 9 years “upstate.” All of this ignores the lesser, but nonetheless serious crimes of Attempted First Degree Mortgage Fraud, a class C felony, and the class E felonies of First Degree Falsifying Business Records, Fourth Degree Conspiracy and First Degree Scheme to Defraud. If convicted, as a predicate, Manafort’s sentencing judge would be mandated to incarcerate him to no less than 3 to 6 years and 1.5 to 3 years on these two respective felony classes and a corresponding maximum of 15 and 4 years as a temporary leasee of an 8 by 8 SRO with unobstructed views of New York’s finest concrete and iron construction.

Understanding Residential Mortgage Fraud

If what prosecutors claim is true, Actresses Felicity Huffman and Lori Loughlin could have Razzy worthy roles starring next to Marlon Brown in a remake of 1989’s “How I Got into College.” The alleged easy way out amateurs who, with others, collectively paid millions of dollars to “assist” their genetic lottery winners’ successful college admission into such universities as USC, Yale, Stanford, Georgetown, Wake Forrest, Ramsey (well, not really), and others, relied on the good old power of the almighty dollar to perpetrate the nationwide college entrance scheme. In lieu of cheating the old-fashioned way, “Operation Varsity Blues,” the relatively unoriginal but cutely named federal bribery and cheating investigation, resulted in dozens of arrests involving paid off Division 1 coaches, photoshopped pictures of high schoolers playing sports when they were likely absorbed in selfie inspired “insta” posts, and some old school cheating on SATs and ACTs. A heck of a scheme if you don’t get caught, this entire criminal enterprise had nothing on the one-man professional test-taking operation and self-proclaimed “GMAT Hero” along with his larger band of [admission slot] thieves. Responsible for taking in excess of 500 GMAT, GRE and TOEFL exams (go ahead, Google “Lu Xu” and “GMAT”), his proficiency  and skill was unparalleled even among his test-taking cohorts. Sorta’ a lesser known of the Uncanny Xmen of the college admissions underground.

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As of November 2018, New York Coercion laws and crimes have changed. Penal Law 135.61 replaces Penal Law 135.60 as the “new” Second Degree Coercion making the latter statute the Third Degree offense. This class “E” felony adopts much of the language from the lesser misdemeanor but adds a new and critical element that in turn elevates the direct and collateral consequences of an arrest and conviction. Although you should fully examine the law with your attorney to ensure you do not conflate Extortion and Blackmail with any level of this statute, the following provides some basic insight into the definitions, elements and punishment of and for PL 135.61.

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It is a crime to use a computer without permission? The short answer is “depends.” if a person uses your computer without authorization he or she is potentially committing a crime. Of course, that statement needs clarification on many levels. First, must permission be express and is permission to use a computer carte blanche authorization to access anything and everything therein? Second, what the heck is a “computer” as it relates to the New York Penal Law? The answer to these questions and more is either codified in New York Penal Law Article 156 or the case law that interprets the criminal code. The following blog generally addresses the above questions and can serve as guidance for further discussion with a computer crime attorney.

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Even though RICO crimes are not prosecuted by the New York State Attorney General or by one of the many District Attorneys such as those in the boroughs of New York City, organized crimes does not get a pass in the State of New York. While large-scale schemes, whether they involve crews or organizations, routinely involve allegations of Money Laundering, Criminal Tax Fraud, Grand Larceny and other offenses, the underlying acts and how they violate the law are not always the central component of these prosecutions. Instead, even if the crime or crimes committed don’t amount to a more serious felony, law enforcement in New York has a weapon in its enforcement arsenal that exposes an accused to significant incarceration post-indictment. This New York version of RICO is Enterprise Corruption, New York Penal Law 460.20.

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Thanks to the passage of New York City Administrative Code 10-177*3, Unlawful Disclosure of an Intimate Image, victims of Revenge Porn and the unauthorized sharing of compromising images in New York City – Manhattan, Brooklyn, Queens, Bronx and Staten Island – now can protect themselves in a court of law. Not only are distributors of intimate images, videos, pictures and other recordings committing a crime, but you, as a victim, can also file a lawsuit to hold them financially accountable for, among other things, punitive damages. Simply, if an ex-boyfriend, former spouse, or even an affair, shares your intimate images that he or she may have lawfully had at some point but were not permitted to send out to friends, business associates or online, a NYC Revenge Porn lawyer can help you secure justice in every sense of the word. No longer will you have to shrug when you ask, “How can I protect myself as a victim of Revenge Porn?”

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With a collective sigh from all sides of the gambling isle, both in relief and pain, what to date has often been associated with Las Vegas and spawned Classics from “Goodfellas”  to “Casino,” may now be offered to the masses across the United States and in the light of day. Practically speaking, what does Murphy v. NCAA mean to New York? Have the crimes of Promoting Gambling and other related New York Penal Law offenses just been normalized? If our highest court says gambling is legal, then, well, it can’t be criminal. Right? Arguably one could conclude that, but it behooves you as a bookie or anyone facilitating sports gambling in or touching New York to truly understand not merely the magnitude of this decision, but what it really means. You might be surprised…

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Whether you reside in New York City, the Hudson Valley or any municipality from Manhattan to Buffalo, Rochester to White Plains, or Syracuse to Albany, you are not immune from predation by would be extorters, coercers, blackmailers, stalkers and harassers. While the New York Penal Law covers these criminal acts as both felonies and misdemeanors, as of the time of this blog entry there is no New York statewide statute covering what is often referred to as “Revenge Porn.” Fortunately, however, thanks to New York City Administrative Code 10-177*3, Unlawful Disclosure of an Intimate Image, there is recourse for victims of “Revenge Porn” crimes in New York City. In fact, not only can the person sharing your intimate and sexual images without your consent find him or herself charged with a misdemeanor crime (can you say “hello” Rikers Island?), but NYC Admin. Code 10-177*3 also provides for civil remedies such as those involving punitive damages, compensatory damages, attorneys fees and injunctive relief so that your harasser ceases sharing and distributing your naked, sexual or intimate images.

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