Mortgage Fraud - Chuck Gallagher Ethics Speaker Discusses FBI Report

In an effort to deter mortgage fraud the FBI has listed (from their investigations) typical fraud schemes. Some are listed below:

Backward Applications: After identifying a property to purchase, a borrower customizes his/her income to meet the loan criteria.

In effect the borrowers determine from the lender what the criteria should be to qualify for the mortgage loan. Then income is "customized" or fabricated to meet the criteria. This sort of fraud is usually a single loan fraud. The fraud can involve others - as mortgage professionals may coach the borrower thus participating in the fraud.

In many cases, as I've addressed mortgage industry professionals, we find that such frauds involve the mortgage broker knowing that they are paid based on production and production can't take place without sufficient income.

Air Loans: These are non-existent property loans where there is usually no collateral. An example would be where a broker invents borrowers and properties, establishes accounts for payments and maintains custodial accounts for escrows. They may set up an office with a bank of telephones, each one used as the employer, appraiser, credit agency, etc. for verification purposes.

These loans represent a clear intent to commit fraud. Many convictions this past year have involved the complete creation of fabricated documentation. Other than "money for nothing" these frauds when caught will result in prison time.

While presentations to industry professionals focus on various types of frauds and the consequences that follow...rarely have I seen this other than from experienced criminals.

The last fraud scheme identified by the FBI that will be reviewed in this blog is:

Silent Seconds: The buyer of a property borrows the down payment from the seller through the issuance of a non-disclosed second mortgage. The primary lender believes the borrower has invested his own money in the down payment, when in fact, it is borrowed. The second mortgage may not be recorded to further conceal its status from the primary lender.

This fraud is common especially with first time home buyers, low income buyers or those who are new at investing in real estate for profit. In some cases, borrowers don't see the fraud involved in this scheme. Based on experience there are two types of people involved: (1) folks who, as first time buyers, borrow the money from relatives and knowingly don't disclose to the lender (otherwise they wouldn't qualify) or (2) folks who clearly don't have the fund to purchase the real estate and use funds (401(k) loans, personal loans from relatives or friends. or personal loans from undisclosed lenders.

For information about presentations related to ethics choices and mortgage fraud contact Chuck Gallagher at http://www.chuckgallagher.com

Mortgage Fraud - Prison and 1.2 Million in Restitution - Ethics Speaker Chuck Gallagher Comments

Manager of Nations Title Agency of Florida, Robert W. Hulbert, Jr., age 46, was sentenced to three years in prison, 4 years supervised release upon release from prison, restitution of $1.2 million and forfeiture of more than $4 million of assets.

Not only was Hulbert manager of Nations Title where several mortgage frauds were obtained, but he was personally involved in obtaining fraudulent loans on two properties he acquired in his name.

According to the Mortgage Fraud Blog (an excellent source for up to date material on mortgage frauds):

According to court documents, the scheme operated this way: Conspirators negotiated to buy residential real estate at a given price. A conspirator who was a licensed real estate appraiser then fraudulently appraised the property for a substantially higher amount than the actual negotiated price. Documents reflecting the inflated appraisal price were submitted to a lender, along with other fraudulent documents, to obtain first and second mortgage loans on the property. The total amount of the loans was at or near the inflated price.

At the closing on the property, the difference between the actual sales price and the inflated appraisal price—the proceeds of the fraud—was disbursed to one or more of the conspirators as an “assignment fee” or “payoff of third mortgage” that did not exist. During the course of the scheme, the conspirators obtained a total of about $17.7 million in mortgage loans, which would not have been approved but for the fraudulent documents. The conspirators received approximately $4.024 million in proceeds from the fraudulent transactions.

As a business ethics speaker, I am finding that mortgage fraud (of one sort or another) is capturing the attention of law enforcement as the housing market declines. More and more institutions are finding it necessary to reinforce their ethical rules as it relates to this kind of business.

Every choice has a consequence. Having spent time in federal prison for unethical conduct, I understand how easy it is to become embroiled in unethical activity. Today I speak to groups about the Truth About Consequences.

As a result of unethical behavior Hulbert will find his life will dramatically change. He will get up early - go to work (in prison) - be back at 3:30 and be standing for one of the six or so times a day he will be counted. He will walk into prison a nobody and will be treated as such till he leaves. Once out, he will be branded a "convicted felon" and find it hard to regain a normal life. There will be times (many times in fact) while in prison he will wonder if the temporary enjoyment he received from his ill gotten gains was worth it. And, he will emerge a changed man.

Feel free to comment.

If you've been the victim of a mortgage fraud - fell free to share your experience.

If you've perpetrated a mortgage fraud, feel free to share your experience on the price you've had to pay.

Business Ethics Speaker - Chuck Gallagher signing off.

Not Now Senator Grassley...Not Now! Hinn Delays Response. Business Ethics Speaker Gallagher Reviews

Several months ago Senator Charles Grassley, R Iowa, ranking member of the Senate Finance Committee, sent questionnaires to six ministries asking numerous financial questions - probing whether the pastors and their ministries were complying with IRS rules related to their tax exempt work.

The deadline was today and it appears that Binny Hinn Ministries of Grapevine (Grapevine, TX) and Benny Hinn World Healing Center Church, Inc. have stated that they will not respond to Grassley's inquiry until next year (2008).

According to the Associated Press:

"A lawyer for preacher Creflo Dollar of World Changers Church International in suburban Atlanta had said Wednesday that the investigation should be referred to the IRS or the Senate panel should get a subpoena for the documents."

"Only Joyce Meyer Ministries of Fenton, Mo., has provided the detailed financial and board oversight information sought by Grassley."

Several questions have been raised by both sides. Many of the ministries through their spokes persons have taken the position that they comply with the law and the IRS is the watchdog. Hence, they feel that Grassley has overstepped his bounds by making such a broad request.

Again, according to the Associated Press in a report in the Dallas Morning News:

"Grassley, an Iowa Republican, said in a Wednesday conference call with reporters that he "can't be impressed" by the argument from some of the preachers that the IRS already monitors them, because his past inquiries have unearthed information that the IRS never knew.

Grassley has insisted his investigation "has nothing to do with church doctrine" and is strictly concerned with making sure nonprofit groups are following the law."

Some of the ministries have suggested that Grassley get a subpoena if he plans on capturing the information he's requested. Should the ministries refuse to turn over the information, a very interesting court fight could ensue.

"Hopefully these organizations will work with us," said Grassley, who has been investigating nonprofit compliance with IRS rules for years. "I don't think I've had to issue a single subpoena in the five years that I've been trying to get cooperation from organizations."

So here are the questions and your comments are welcome:

What does not complying to Grassley's request mean to the ministries?

If one believed that they were fully compliant, would it be best to turn over the records or stand on principle (perhaps the belief that Grassley over reached)?

Since the IRS rules provide that a tax-exempt organization cannot be a conduit for excessive personal gain, is it possible to define that in a highly successful ministry?

For the record, the ministries targeted by Grassley's requests were, in addition to Hinn: Bishop Eddie Long of New Birth Missionary Baptist Church and Bishop Eddie Long Ministries of Lithonia, GA; Randy and Paula White of Without Walls International Church and Paula White Ministries of Tampa, FL; Joyce Meyer Ministries of Fenton, MO; Creflo Dollar of World Changers Church International in Atlanta, GA; and Kenneth and Gloria Copeland of Kenneth Copeland Ministries of Newark, TX.

Every choice has a consequence. In fact, in Galatians it states, "Do not be deceived, God is not mocked: for whatever a man sows, this he will also reap." As this unfolds the truth will be revealed...whatever that truth may be.

Comments?

Which Cities Top The List For Corporate Crime? Business Ethics Speaker Chuck Gallagher Comments

The Corporate Crime Reporter, a print weekly legal newsletter based in Washington, D.C., released a report on November 27th, 2007 naming Washington, New York, Los Angeles, Philadelphia, Boston and Newark are the corporate crime capitals of the United States.

“Every year, the FBI releases its Crime in the United States report,” said Russell Mokhiber, editor of Corporate Crime Reporter. “This report is misnamed. It is actually a report on street crime in the United States. It ignores corporate crime. So, while the Crime in the United States report documents rape, robbery, murder, robbery and assault – it ignores health care fraud, bribery, environmental crimes, and other major corporate crime prosecutions.”

“We believe that America deserves to know not only where most of the street crime is – but also where most of the corporate crime is being prosecuted,” Mokhiber said.

The Corporate Crime Reporter conducted a survey of 2006 prosecutions, settlements and sentences and the results identified the top six corporate crime capitals of the US.

“These are the cities where most of the corporate crimes are being prosecuted,” Mokhiber said. “New York is an obvious hub – that’s where Wall Street is and that’s where the money is. Washington is also an obvious contender – corporations rip off the government and government prosecutors act to recover the defrauded funds.”

“Federal prosecutors in Boston have developed perhaps the premiere health care fraud prosecution team in the country – outside of Washington,” Mokhiber said. “The U.S. Attorneys’ offices in Los Angeles and Philadelphia have both developed white collar and corporate crime expertise.”

Several interesting facts arose from the study. What is most obvious is that corporate crime is centered in our largest cities and money hubs. It would be no surprise that New York, Los Angeles and Washington are there based on their sheer size and the consolidation of business and power. What I don't see is a relationship between number of cases (prosecuted or settled) and size of the location. It would be interesting to see the top areas as a percentage not just by number.

Another issue is location and interest of federal prosecutors. As stated in the report, Mokhiber acknowledges that Boston and Washington focus on health care fraud while L.A. and Philly have developed white collar expertise. Again, is crime in these cities higher or is it that the prosecution effort is more focused?


As a business ethics speaker, I know, from presentations nationwide, that issues with ethics breeches and crime don't seem to be strongly centered in one geographic region or another. I fully recognize that larger metropolitan areas have more, just by the sheer numbers, but where people are gathered, when the components for crime exist (need, opportunity and rationalization) - there will be crime.

Do you believe that crime is centered in these cities (predominately) or do you think that corporate crime is alive and well where you are. Feel free to respond with your thoughts.

Ethics In The Fast Lane - Dummy!

O.K. I admit most of my posts are serious in nature and hopefully, for those who read, have a profound meaning. I state often - Every Choice Has A Consequence!

Sometimes, however, our choices provide some fun for those delivering the consequence! Take for instance this dummy, driving down the road in Washington State in the HOV lane. I know what he was thinking...get there with less traffic...get there a bit quicker. Yep, let me take the HOV lane. Of course, to do that it requires "High Occupancy" hence the name HOV lane. Two people at least right?

Right - two people.


Well, some folks are creative in their choices. Like this man who was riding with a dummy. No, not an unintelligent person, but a real mannequin (dummy) stuffed in a sweatshirt and wearing a hat. Even the head had been painted beige to give it a more realistic appearance.

The driver was cited for an HOV violation after being reminded by the officer that the requirement to drive in the HOV lane is at least two humans inside a vehicle. Get it...two humans - "dummy!"

Oh well, every choice has a consequence. His consequence for riding with a dummy - a ticket. Hum...maybe he was the dummy?

Red Cross President Mark Everson Ousted - Business Ethics Speaker Chuck Gallagher Discusses

As a frequent speaker on business ethics, I state often - Every Choice Has A Consequence. Whether those choices relate to a large enterprise, like Enron, one of the nations leading charities, The Red Cross, or just your personal life, it is clear daily that my statement to audiences nationwide is true.

Every Choice Has A Consequence!

Former commissioner of the Internal Revenue Service, Mark Everson took on the job of running the Red Cross on May 29th 2007. The charity had been the target of much criticism following it's response to Katrina. Having had now five leaders in the past six years, the charity struggles to regain its focus and public image.

According to many news stories, on Tuesday, November 27th the board of governors for the Red Cross accepted Mr. Everson's resignation after it was reported that Everson was having a "personal relationship" with an employee of the Red Cross - one of Everson's subordinates.
Several news sources are linked here:

http://fe6.news.re3.yahoo.com/s/ap/20071127/ap_on_re_us/red_cross_president

http://www.bloggossip.com/index.php?id=29698

http://www.time.com/time/nation/article/0,8599,1688266,00.html

The following comments are reported from an AP news story:

"The board acted quickly after learning that Mr. Everson engaged in a personal relationship with a subordinate employee," a statement said. "It concluded that the situation reflected poor judgment on Mr. Everson's part and diminished his ability to lead the organization in the future."

"I am resigning for personal and family reasons, and deeply regret it is impossible for me to continue a job so recently undertaken," he said. "I leave with extraordinary admiration for the American Red Cross."

Not only do choices and the consequences that follow have a direct personal impact, but they clearly impact those who are closest to you. As a man with children, his family well also be the unintended beneficiaries of Everson's actions. The pain that othes experience as a result of one's personal actions, are often the hardest to bear.

Having made choices in my past that had unexpected and unintended consequences, I understand the emotions behind the experience of the consequence. Perhaps, Mr. Everson will have time to evaluate his actions and other may come to understand that ethics in business or in one's personal life are critical if we wish to achieve positive results.

Business Ethics Speaker - Chuck Gallagher states - Michael Vick Facing Longer Prison Sentence

Many thought that Michael Vick would be sentenced to a year and a day for his conviction on "dog fighting." Some had said that he threw his career to the "dog" as it were, but with a short sentence and voluntarily surrending and starting the sentence now, it was thought that Michael might just be back in the game for the '08 year.

Not so fast. today two of Michael Vick's co-defendants in the federal dog-fighting case received sentences at the high end of the Sentencing Guidelines range. Now there is some thought that Vick might face a longer prison term at his sentencing in December.

According to the Associated Press, "A federal judge made clear his disdain for animal cruelty when he sentenced two of Michael Vick's dogfighting cohorts to 18 months and 21 months in prison Friday.

"You may have thought this was sporting, but it was very callous and cruel," Judge Henry Hudson told Quanis Phillips of Atlanta, who received the longer sentence.

The prison terms for Phillips and Purnell Peace of Virginia Beach are a little longer than prosecutors recommended, but less than the five-year maximum Hudson could have imposed.

Vick still could get a sentence above the negotiated range in his case -- a year to 18 months -- if (Judge) Hudson concludes 27-year-old Vick is more culpable than the others because he admitting bankrolling the operation and providing gambling money.

According to court papers, Vick not only financed the "Bad Newz Kennels" but also participated in executing several underperforming dogs by drowning, hanging and other means. "

Should Vick be sentenced to the mid to upper range of the sentencing guidelines, he would be out for at least half of the '08 NFL season.

Every choice has a consequence!

My guess is Michael Vick would have never considered this as a result of his actions. Frankly, neither did I expect the consequences I received. My misdeeds were illegal and I deserved the punishment I received. But, during the time of the illegal actions, I never expected prison.

Hopefully, Vick will use his influence to help others so that they don't face the consequences that he is facing today. Holidays behind bars are no fun.

As always, your comments are welcome.

Business Ethics Speaker - Chuck Gallagher - signing off...

Texas Man Sentenced to 40 Years for Mortgage Fraud - Dude That's Over Half His Life!

There is a wonderful blog called the "Mortgage Fraud Blog" http://mortgagefraudblog.com that is a good resource for information on this specific type of fraud. On November 27, 2007 the following was reported as is quoted here:

Stevie L. Johnson, a former licensed Escrow Officer, was sentenced to 40 years in prison for his part in a multi-million dollar mortgage fraud scam in the Houston, Texas area. The case involved the fraudulent acquisition of mortgage loans associated with approximately 300 residential properties valued at nearly $40 million. The prosecution was the result of a long-term investigation by the Consumer Fraud Division of the Harris County District Attorney’s Office and the Texas Department of Insurance (TDI) Fraud Unit. TDI is the state regulatory agency responsible for licensing title insurance companies, title agents and escrow officers.

Two other defendants in the case were previously convicted for their part in the fraud scheme; Mark A. Jones was sentenced to 25 Years by the 232nd District Court and Reginald Washington was sentenced to 8 years by the 184th District Court.

Markay Stroud, the Assistant District Attorney in Harris County responsible for prosecuting Johnson‘s case, emphasized that the investigation is ongoing and additional indictments are expected.

Earlier this year, the 80th Texas Legislature took action to address mortgage fraud by creating the Texas Residential Mortgage Fraud Task Force under House Bill 716, authored by Rep. Burt Solomons (R-Carrollton) and Sen. Kip Averitt (R-Waco). The 2007 legislation was intended to reduce false or misleading information on residential home loan applications by increasing cooperation among regulators and requiring new disclosures at closing.

Now, I'll be the first to say, I don't know Mr. Johnson's age, but unless he started his mortgage/escrow career as a teenager, he'll likely either die in prison or exit as an old man. Neither is a fitting way to end one's life.

As a national business ethics speaker, I speak around the country about one primary topic: Ethics = Choices and Consequences. Every choice has a consequnce! No matter what we might think or how we might rationalize it - Every choice has a consequence.

Was Mr. Johnson just a bad, unethical man? Some, who are quick to judge might say yes - otherwise how could he have committed such a crime? My guess, however, is that he didn't start out unethical in his profession. Rather, the perfect storm existed for his crime to be committed.

The "perfect storm?" Yep...and here are the three components: Need, Opportunity and Rationalization. When those three are present, in many cases, an otherwise ethical person may make unethical decisions - under the illusion that it's really O.K.

Now, I can't speak for Mr. Johnson, but I can speak for myself. That was exactly the sequence in the fraud that sent me to Federal prison.

So how do we create a way to keep the storm from brewing? As I consult with companies I find three things to be true: (1) if you evalutate your employees for example, you can often see when the need issue arises (without a severe need there is no fuel for the fraud); (2) a good system of internal controls reduce the opportunity (and without opportunity one cannot perpetrate the fraud); and (3) keeping people focused on right behaviors - consistently - helps to eliminate or difuse "rationalization."

For information on programs that might help your organization on ethics and anti-fraud visit my web site at www.chuckgallagher.com

Comments are welcome...

Business Ethics Speaker - Chuck Gallagher signing off...

Mortgage Fraud - 30 Years in Prison - Business Ethics Speaker Chuck Gallagher Asks - Excessive?

O.K. I say often - Every choice has a consequence! I live and breath that concept. I've lived it - serving time in prison. But, I have to ask in these comments - Is 30 years excessive?

According to the White Collar Crime Prof Blog the following was stated: "United States Attorney's Office for the Southern District of Florida issued a press release that Samantha Johnson and Scott Warren Johnson, husband and wife, were sentenced following their guilty please to "a wide-ranging mortgage fraud scheme." The sentences were 60 months for Samantha Johnson and one year for Scott Johnson. The press release said that they received "in excess of 2.5 million in ill gotten gains."

Now compare this to the sentence received by Chalana McFarland, a first offender who was sentenced for mortgage fraud (see here) to 30 years imprisonment for her role in an extensive mortgage fraud scheme that skimmed $20 million from the sale of over 100 homes from 1999 to 2002.

Why such a disparity in sentence? Could it be that the first group of individuals plead guilty and the second person risked trial? When the stakes are so high, do you really have a constitutional right to a jury trial?"

The White Collar Crime Prof Blog goes further to state:

30 Years to Non-violent First Offender in White Collar Case

The case of Chalana McFarland, pending in the 11th Circuit, is a case that should be closely watched as it involves a sentence of 30 years for a non-violent first offender in a white collar case. The defendant argues that this sentence is unreasonable. The preliminary briefs are below:

Download final_11_cta_brief.pdf

Download appellee_brief_feb_28_06.pdf

Download mcfarland_reply_06.pdf

The parties also filed briefs in response to the Rita case. As noted in McFarland's supplemental brief -

"Ms. McFarland also has a young child and has lost her reputation in the legal community as well as in the general community. Her incarceration has been very difficult for her parents and young child. If President Bush is correct that Libby's sentence of 30 months is 'excessive' than surely Chalana McFarland's 360 month sentence is excessive as well, and should be reversed."

So here are the questions:

(1) If President Bush said that Scooter Libby's sentence was unreasonable, what do you think about this sentence?

(2) Was this sentence the outcome of electing to take advantage of the constitutional right to a jury trial vs. pleading?

I elected to plead guilty to my crimes and had the agreement with the U.S. Attorney as to the length of sentence according to the sentencing guidelines. Today, I share with businesses and associations that - Every Choice Has A Consequence. http://www.chuckgallagher.com

But 30 years...Wow!

Any comments?

Post Katrina Bribery - Corruption Doesn't Pay Says Business Ethics Speaker - Chuck Gallagher

Today a Grand Jury handed down an idictment against members of "The Scruggs Law Firm" for alleged bribery of Third Circut District Court Judge, Henry Lackey, of the State of Mississippi. According to the indictment Scruggs tried to bribe Judge Lackey with $40,000 to provide a favorable ruling on a case they were a party to.

To read the indictment see the following link: http://online.wsj.com/media/LB_wsj071127-show1_case_doc.pdf

Smart...real smart. How often do folks think that somehow there isn't a consequence to choices they make. Every Choice Has A Consequence!

As a business ethics speaker, I understand that fundamental law of the universe so well. I, too, felt that choices made could avoid consequences. Wrong! You cannot avoid the consequences of your choices and actions. You may not see them immediately and often the time between choices and consequences create the illusion that they don't exist. They do.

The story has all the trappings of a good John Grisham book. The problem is - the outcome will likely be prison...a place I've been and don't care to go again.

In my newest presentation, "The Truth About Consequeces," I explore with business groups the reality about the choices we make and the consequences - either positive or negative - that can follow. For information about that presentation, contact me at http://www.chuckgallagher.com/contact.html

Read the indictment and offer your comments here.

Business Ethics Speaker - Chuck Gallagher - signing off...

How Much Is Three Years in Federal Prison Worth?

While there are those who would disagree with me - I feel that there is no amount worth the pain of prison. Having been there myself, I speak from experience.

But the Department of Justice released today that the former president and owner of ATE Tel Solutions, Rafael G. Adame, will spend three years in prison following his conviction for his involvement in a scheme to defraud the federal E-Rate program. The E-Rate program subsidizes the provision of Internet access and telecommunications services, as well as internal computer and communications networks, to economically disadvantaged schools and libraries.

The news release is attached: http://www.usdoj.gov/opa/pr/2007/November/07_at_936.html

According to the news release, ” Adame was convicted of submitting fraudulent invoices for payment to the Schools and Libraries Division of USAC from December 2001 to May 2003. As a result of the scheme to defraud the E-Rate program, Adame fraudulently obtained $106,514 in payments from USAC.”

$106,000+ in theft = three years in federal prison? I don’t get it. But then again, I did something equally as dumb and paid the price. Adame will now come to know the lesson: Every Choice Has A Consequence.

As a business ethics speaker and Senior Sales Executive in a public company, I speak to groups nationwide about choices and consequences. In fact, my most recent presentation is entitled - The Truth About Consequences! While every choice has a consequence - the fact is we can determine whether the consequence is either negative or positive.

For information on Chuck's presentations visit his web site: www.chuckgallagher.com

Texas Motivation Speaker - Chuck Gallagher speaks on "Saving A Life! One Choice At A Time..."

Being stuck in traffic really stinks at times and this morning was no exception. I had just heard the radio play the commercial that I had made for a local company and recall the up coming news tickler. Planning to turn my radio off or switch to satellite radio, I heard something that peaked my interest - so I left it on that station just a bit longer.

The announcer, returning from a commercial break, began to share a story that so touched me, I elected to include it in my presentations - as it spoke clearly and innocently to the focus of every presentation I make - that being - Every Choice Has A Consequence.

It seems that a young man - actually better put a school kid - in the sixth grade was being acknowledged as the citizen of the week by this station in Dallas, TX. Now, Dallas isn't small...so for a school kid to be the citizen of the week, well I just had to hear the story.

Seems that one fine morning the kids had gathered at lunch, just visiting with each other, when one of his buddies got choked on an orange slice. Now, for any of us who have been choked...one thing you can't do is ask for help - kinda hard when you can't breathe. When the kids noticed what was happening most of them gathered around just looking in disbelief. You can imagine the scene - one kid choking to death - as others gathered and watched.

But not our citizen of the week. He, without giving it a thought, jumped into the middle of the group, placed his arms around his buddy and did the Heimlich maneuver dislodging the orange slice and rescuing the choking victim. He seemed to think nothing of it - but I'm sure the kid he saved has a much different feel for the whole experience.

Faced with mounding publicity, this young man seemed to take it in stride. Of course his mother was beaming with pride as her son was recognized for his heroic action. The reported asked, "Just how did you learn how to do the Heimlich?" Without hesitation the boy answered, "Why watching the movies - of course!" Taken back his mother leaned over and asked, "What movie, sweetie?" With an almost indignant tone, he replied, "Mom...Mrs. Doubtfire! Don't you remember?"

The news anchor laughed and for once I enjoyed hearing something that created hope - good news on the radio.

Just today another story was reported out of Jacksonville, Florida. http://www.news4jax.com/news/14652643/detail.html

This story was similar in content and in the feel good human interest side of the news. It's wonderful to talk about those choices in life that make a profound "life and death" difference. What makes them so interesting to me...is that neither of those two kids woke up, got dressed for school, and on the way out the door told their parents, "You know I think I'll save someone today."

When others stepped back and refused to take action, these two people stepped forward and made choices - unanticipated choices - that saved lives.

That happened to me back in 1990 - I mean someone then entered my life quite unexpectedly and made a profound statement that was life changing. He said, as I was experiencing my "Dark night of the Soul," - "You made a mistake, but You are not that Mistake! The choices you make next will define who you really are and the legacy you will leave for your children." As I considered suicide that night, he, in a few simple words, made the choice to stick with me and help me clear away the fog and see clearly who I could become for the first time in a long time.

Today, as a Texas Motivational Speaker, I speak to groups nationwide about choices and consequences. These two youthful examples show the power that one choice can have - saving a life. What choices have you made that have made a difference to you or other peoples lives?

For information on presentations on the Power of One visit my web site: http://www.chuckgallagher.com

Any comments?

Texas Motivational Speaker - Chuck Gallagher - signing off...

Multiple Guilty Pleas and 433 Months in Prison - And That's Just In Three Days!

Seems that it's been a busy week for guilty pleas and sentencing for Mortgage Fraud and related crimes.

Let's start from the beginning of the week. The multiple members of the Dorean Group were found guilty of multiple counts of various types of fraud in a scheme to eliminate client's debt. Their scheme involved creating mortgage and home equity fraud in order to obtain hundreds of thousands of dollars in home equity loans from unsuspecting lenders. The scheme covered investigations in California, North Carolina, South Carolina, Texas, Utah, Washington, Florida, Montana, Nevada, and Colorado. Their sentencing is set for March 18, 2008. Expect their sentence to be stiff - certainly not "Club Fed" for them.

Then theres Anthony Belletteiri, a real estate attorney, who was sentenced to 121 months in prison for his creative and elaborate scheme involving his law firms corporate and escrow bank accounts - using funds marked for real estate closings. Belletteiri also admitted that he stole approximately $2 million from a client, falsely telling the client that he had invested the client’s money in private mortgages. In order to conceal his theft, he created phoney mortgage documents, which he provided to the client, so that the client believed that his money was secured by mortgages, when it was not. This (former?) attorney was ordered to surrender to Federal prison on December 26, 2007 to begin serving his sentence. At least he got some grace in that he will be able to enjoy his last holiday season for a long while with his family - a small gift.

According to the Mortgage Fraud Blog (an excellent source for mortgage fraud information), Wesley Snyder, age 71, plead guilty to fraud for his mortgage scheme. The mortgage fraud blog reports, "Snyder defrauded more than 800 individuals throughout Central and Eastern Penn. via his “Wrap Around, Equity Slide Down Discount” Mortgage Program and his “Mortgage Participation” Investment Program. The charge carries a potential penalty of 30 years imprisonment and $1,000,000 fine." It would appear that once incarcerated he may never see freedom again in his lifetime. I am confident that once confined, he will have many nights sleeping on a thin prison mattress wondering if it was worth ending his life in confinement?

Bang the gavel drops and Matthew Bevan Cox, age 38, is sentenced to 26+ years. In the federal system, one must serve 85% of one's sentence...so Matthew will be a little over 60 years old when he's released. Every choice has a consequence! In this case Mr. Cox made choices that will mean that, what is typically some of the most enjoyable and productive years of one's life will be spent in prison - working for 12 cents per hour. He and his girl friend ran mortgage and real estate scams that spanned several south eastern states.

"Cox will now be serving the long prison sentence he deserves for his crimes,” said United States Attorney David E. Nahmias in Atlanta. “While the subject of a nationwide manhunt, Cox repeatedly used the stolen identities of minor children, the homeless and others to place multiple fraudulent loans on the same property without the knowledge or consent of the true owners. His crimes resulted in clouded property titles in several states with years of unresolved litigation, a trail of over 100 victims, and millions of dollars in losses that cannot be recovered.”

“The Secret Service has taken an aggressive stance in the prevention and investigation of mortgage fraud and other forms of identity theft”, said James Byers, Special Agent in Charge of the United States Secret Service Atlanta Field Office. “This case shows both the wide-reaching effects of identity crimes as well as the importance of cooperation among law enforcement to focus resources and respond effectively to uncover and prevent this type of financial fraud.”

Every choice has a consequence. On a personal level I feel for the people mentioned above. Not to be mistaken, I do not in any way condone their crimes or actions - I don't. I just know that since every choice has a consequence, the price paid will be significant. Perhaps they will find, like I, that they can make their time in prison useful - either for themselves or for others.

As a business ethics speaker, I know first hand the pain of incarceration, as I've been there. I also know that no matter what someone might believe, you cannot escape the consequences of your choices. Likewise, if you make positive ethical moral choices the results can be quite remarkable. I, too, am living remarkable results.

For more information on presentations I make...feel free to visit my web site: http://www.chuckgallagher.com

Any comments?

Texas Ethics Speaker - Chuck Gallagher - signing off...

24 Months Can Seem Like A Lifetime!

One of the hot areas of fraud these days - one that you'll see a lot of attention paid to is - mortgage fraud. With the housing market slumping (crashing some would say) and the sub-prime mortgage wows being echoed far and wide, more and more you'll see reports like the one in this blog being reported.

According to the St. Louis Business Journal Bennie Clark was sentenced to 24 months in prison for his conviction on federal mortgage fraud charges. The full report is here: http://www.bizjournals.com/stlouis/stories/2007/11/12/daily75.html

It seems that Mr. Clark participated with others in a scheme to defraud mortgage lenders through a system of buying and selling properties at inflated prices. This is not new, but certainly capturing more media attention as we witness the housing collapse in many parts of the country.

Every choice has a consequence. This is the mantra that I speak on as a Business Ethics Speaker around the country. Having made poor business choices in my past (all be it 20+ years ago), I understand full well the consequences.

Some twelve years ago I spent time in federal prison as a consequence of my actions (something I am not proud of). While some call it "Club Fed" I can assure anyone who has not been there that it is no "club". It is federal prison - make no mistake.

Perhaps the unethical actions of those associated with World Wide Financial LLC will truly sink in as they have time (no pun intended) to truly grasp the concept of choices and consequences.

While I would never want to go back...once was enough to get the message - I learned many valuable lessons, not the least of which is - EVERY CHOICE HAS A CONSEQUENCE. The nice thing is - we get to enjoy the positive results that can come from positive ethical choices.

Your thoughts?

Business Ethics Speaker - Chuck Gallagher (http://www.chuckgallagher.com) signing off...

Prison - What About My Safety? Yagman's Choices and Consequences

Stephen Yagman - recipient of the 2004 Clay awards for his outstanding achievements in Civil Rights Law was convicted of tax evasion and bankruptcy fraud in June of '07.

Claiming that he made enemies in law enforcement for his campaigns against police abuse, Yagman (through his attorney) argues that he should be spared an active prison term due to his fear he would be physically harmed in jail.

His story is stated here by the Associated Press: http://ap.google.com/article/ALeqM5gbqVxIYShXyLtwSjK8kYiLIy_7QgD8T2GLA80

Creative...I'll give him that. But I would be shocked if the Federal Government prosecutors would have any interest in Yagman avoiding an active prison sentence and instead - teaching at a university.

Here's a reality check - Yagman will find that his ego will be severely deflated upon entering prison. First, most of the inmates have no clue who he is and, frankly, won't care. For his crime he'll likely be sent to a minimum security prison.

Fact One, the inmates there are short timers and are anticipating getting out. They have no desire to do anything that will prolong their stay. So his safety is not an issue.

Fact Two, he'll likely be sent to a place where his enemies won't be. For example, he would likely be shipped to a federal minimum security facility out of state - fewer people who have any knowledge of his identity.

Fact Three, Yagman has shown from his conviction that he has a disregard for the law through his actions related to hiding assets in bankruptcy and from the IRS (tax evasion). Hence, it would be far reaching to think that the government would consider him a likely candidate to teach morality.

I know what Mr. Yagman is facing as I've spent time in Federal prison for tax evasion myself. I did not enjoy the experience. It was humbling to say the least. However, there are several things that I learned from my prison experience that were invaluable:

To learn about yourself - what and what you really are - after having all aspects of ego stripped away is priceless. Sometimes you might not like what you see or come to learn, but you do learn and from that have the opportunity to grow.

I learned that success was not in any way defined by the things that surround us - those are the things that feed our ego's. Rather, I learned that success comes truly from the impact you have on other people. My time in prison gave me the opportunity to come to know others and myself. It gave us all a chance to become real rather than to hide behind the illusion of who we project ourselves to be.

I learned that Every Choice Has A Consequence. Whether the consequence is negative or positive is up to you and the choices you make. You are in control of your choices and therefore the outcomes.

Finally, through a simple opportunity to speak to others about what not to do...I found my life's calling - speaking to others and sharing simple truths. http://www.chuckgallagher.com

Perhaps Mr. Yagman will learn as I did about the truth of who he is and what true justice means. I wish him well and respect his fight...but over time, when ego identity is stripped away, perhaps he'll come to learn more that he could have ever taught.

Any commensts?

Business Ethics Speaker - Chuck Gallagher - signing off...

Thowing Assets to the Dogs! - Michael Vick's Continued Consequences

According to CNN - “In a motion filed in U.S. District Court for the Eastern District of Virginia, U.S. District Judge Henry Hudson noted that Vick, in his plea agreement, agreed to pay “restitution for the full amount of the costs associated with the disposition of all dogs” in the case.”

Today the government asked a federal court to hold a portion of Michael Vick’s assets valued at more than $900,000 to be used to pay for the care and/or disposition of the 54 dogs found on Vick’s property when he was busted last spring.

For a full report of the CNN story see http://www.cnn.com/2007/US/11/20/vick.dogs/index.html

Again, according to CNN, “Vick agreed that those costs could include “the long-term care and/or the humane euthanasia of some or all of those animals,” which were seized from the “Bad Newz Kennels” on his property in Surry County, Virginia.”

As an Ethics Speaker, I routinely speak to groups about Choices and Consequences. Every choice has a consequence. I, like Michael Vick, have enjoyed the benefits of good or even great choices and the agony of the negative consequences that can follow poor choices.

Michael Vick is (was) a talented NFL rising star. He developed himself and his skill to rise to national fame. However, the choices he made on his “shadow side” have had consequences that go far beyond what Vick might have ever considered. Perhaps when the dust settles and the consequences subside…Vick will use the experience to help others learn the sometimes painful lessons of choices and consequences.

Your thoughts?

Texas Motivational Speaker - Chuck Gallagher (http://www.chuckgallagher.com) - Signing off…

Dumb and Dumber - Choices and Consequences from Prison

So let me get this straight, Mr. Van DeLaughter was being held at the Allred Unit of the Texas Department of Criminal Justice in Iowa Park on five counts of theft, aggravated robbery and attempted aggravated kidnapping. Not a good place to be and not looking good for the home team home boy.

Hum…sitting there…thinking, “what should I do to get myself out of this mess?” O.K., I can buy that, it would be reasonable for anyone to try to better themselves - improve their lives - turn things around, if you will, and get a “get out of jail” card. I left out “free” cause, it takes some effort to get into jail and getting out certainly isn’t free.

“What to do…what to do,” he must have thought. “Ah. I think I’ll write a letter!” And write a letter he did. Now here’s where the story takes an unexpected twist.

U.S. Attorney Richard B. Roper, of the Northern District of Texas said, Alan Van DeLaughter, 36, was found guilty of mailing threats to damage or destroy property and another count of mailing threatening communication. A federal jury in Amarillo convicted Roper, a prison inmate, who made threats to a judge and the editor of the Dallas Morning News.

Every choice has a consequence. That is a message I deliver frequently as a Texas motivational speaker. But I must admit that most of time my audience is a bit (well O.K. a lot) brighter than Mr. Van DeLaughter. I would almost say that if there were to be a remake of the movie, “Dumb and Dumber” he might be a candidate for a part. Oops…I don’t think he’d be young enough considering the time he’ll have to spend in prison for that stunt.

For more information on the story from Amarillo see http://www.amarillo.com/stories/082207/new_8287078.shtml

Sentenced to 20 years (240 months) without parole, I guess Mr. Van DeLaughter made his point and sealed his fate.

I realize that I’ve been taking this light heartedly, but there might just be a deeper side to this beyond what is obvious. I’ll never forget one day during my brief stay in a Federal Half-Way House in Raleigh, NC. I had just finished my active sentence and was overjoyed to be able to take the next step forward - incarceration in a half-way house. It was a privilege and one that I was not about to screw up.

People came and went so you never got close to anyone. Some used the experience as a building block to future success and others acted as if they were victims - that somehow society owed them something. Their time was another step back into prison - at least it seemed so based on their actions.

But I’ll never forget this one guy who slept above me in the bunks we shared. He was three days away from total freedom. He elected to stay in prison so when he did get out he would not have to serve any probation time. I must admit I thought to myself, “What a dummy!” But to each his own. Some seemed to want to get out quickly and get on with life…and others - well they had a different perspective.

Anyway, this young man talked to me some (not much as he was a loner). But he talked enough for me to know that he was scared - scared of freedom. In prison he had shelter, clothing and food. On the outside (as he called it) he had to be responsible for those things for himself. Considering he’d been in prison since he was 18 and he was now going on 28, he didn’t know how to start making a life for himself.

I was so excited for him on the day of his release…I went to the half-way house manager to find out when he’d be free as I wanted to wish him well. What I was told shocked me.

“He’s back in,” they told me.

“What are you talking about. He’s to be released today.”

“Last night he held up a convenience store. They picked him up and he back in.” The folks at the half-way house stated this as if it was common place. “He’s back in!”

I was dumbfounded. After all this time with freedom just an open door away, why would he do that? Their next comment stopped me in my tacks.

“Yea…and guess what. It was armed robbery. Yep. He used his finger. He put his finger in his pocket and told the cashier that he would shoot her. He asked her for $20. She gave it to him. Then he gave it back and asked her to call the police. She did and he was arrested. Guess he just couldn’t figure out how to make it?”

As I think about Van DeLaughter and his letter…perhaps he, too, didn’t know how to make it. Perhaps prison was his way of living a safe, secure and structured life. Or, perhaps he was just dumb or dumber?

Texas Motivational Speaker - Chuck Gallagher signing off...

Texas Motivational Speaker - Gallagher - Reflects On Michael Vick's Incarceration

According to the U. S. Marshalls service, Michael Vick, former Atlanta Falcon’s quarterback, turned himself into authorities today to start serving a prison sentence for his conviction for running an illegal dogfighting ring. Vick turned himself in around noon and is being held at Northern Neck Regional Jail in Warsaw, Virginia, until his sentencing hearing scheduled for December 10th.

CNN reported the following shown in italics -

Vick pleaded guilty in August after three associates admitted their own roles in the operation and agreed to cooperate with prosecutors.

“From the beginning, Mr. Vick has accepted responsibility for his actions and his self-surrender further demonstrates that acceptance,” Vick’s attorney, Billy Martin, said in a statement.

“Michael wants to again apologize to everyone who has been hurt in this matter and he thanks all of the people who have offered him and his family prayers and support during this time,” Martin’s statement said.

Don’t Miss

• Vick co-defendant pleads guilty to dogfighting

CNN Senior Legal Analyst Jeffrey Toobin speculated that Vick started his sentence early “to get it out of the way.”

“Also, by surrendering before he’s sentenced on December 10, he shows a measure of remorse to the judge who will sentence him and I think he hopes will get a somewhat lesser sentence because the judge does have some discretion,”

With Vick now behind bars several questions loom:

(1) Will Vick’s voluntary reporting for his sentence sways the judges decision to show some mercy at his sentencing hearing?

(2) With Vick suspended indefinitely by the NFL, will his acceptance of responsibility soften the NFL’s stance toward Vicks return to football?

(3) When his sentence is complete, will Vick use the experience and his fame to positively influence the lives of those who have faithfully followed his career?

As a motivational speaker - I speak frequently to businesses, associations as well as colleges and universities on the subject of Ethics and Choices. Every choice has a consequence. Michael Vick enjoyed, what he felt was the sport of dog fighting. It is not my intent to debate whether that action was a sport or not. What ever I might believe, reality is - that action was illegal and Vick today gained a taste of reality as he faced the first night of his incarceration.

I remember my first night and I can say with clarity of mind…it was not fun - nor would I wish it for anyone. I wish Michael the best in his new found circumstances. Likewise, I hope he gains personal insight and the wisdom to use this experience not only for his own good, but the good that he can bring to others.

Every choice has a consequence.

Texas Motivational Speaker - Chuck Gallagher signing off…

To Tell The Truth - Barry Bonds - Ethical Choices and Consequences

So just how important is it to tell the truth?

As a motivational speaker, I was recently speaking to a group of high school students about the importance of telling the truth and making the right choices. What qualified me to make this presentation - personal experience…perhaps one of the best teachers in life. Having spent time in Federal prison for making unethical decisions, I know first hand the impact that choices have in our life. I am not proud of those decisions, but, likewise, refuse to hide the fact that I made them and that the impact they had on my life were - well - life changing.

As reported in the Wall Street Journal law blog, MLB’s home run hitter Barry Bonds has been indicted for - well simply put - “lying!” http://blogs.wsj.com/law/

The post in the WSJ Blog states: “Bonds joins a line of individuals stretching from Alger Hiss to Martha Stewart to Scooter Libby to who were indicted not for commiting an underlying crime, but for lying to investigators. Each time this happens, critics argue that a perjury prosecution is nothing more than an excuse for overzealous prosecutors to bring a headline-grabbing case against a boldfaced name. On the other hand, in pursuing such well-known figures, the feds hope to send a message to the meek and mighty alike: Don’t lie.”

I couldn’t agree more. Whether Bonds is convicted like Martha Stewart or not…the fact remains that the consequences of lying can have dramatic, life-changing effects. Take it from one who knows, “Club Fed” isn’t all it’s cracked up to be. It’s prison and no one I know wants to be there.

I routinely speak to business groups and associations on ethics, choices, consequences and their total effect. Every choice has a consequence - and the sooner we recognize that telling the truth is a choice the quicker we control the type of consequences we face. I personally perfer ”positive results” from the choices I make.

What about you? Comments?

Barry Bonds Image from the Wall Street Journal Law Blog

There's No Such Thing As Business Ethics - Yea Right!

I’ve heard that statement, “There’s no such thing as business ethics!” said way too many times. The arguement is that businesses don’t have ethics - people do. Therefore, there is no such thing as business ethics.

As a motivational speaker addressing corporations and associations on business ethics from coast to coast - my response is - Bull!

If that is true (there is no such thing as business ethics) then the appeal by Enron CEO Jeffrey Skilling of his 24+ year prison sentence is doomed. Seems that Skilling and his legal team are relying (in part) on the Fifth Circuit’s decision in U.S. v. Brown that limited the “right of honest services” theory when the defendant believes he or she is acting in the corporation’s best interest as defined by management. In simple terms, if the corporate employee is acting in the corporations best interest or under the direction of management, then they can’t be guilt of “fraud”.

According the the White Collar Crime Prof Blog (http://lawprofessors.typepad.com/whitecollarcrime_blog/) ”The government argues that Brown does not apply because it is limited to lower-level employees and not a CEO who it describes as the leader of the fraud. The problem with that argument, however, is that Brown does not seem to create a “CEO exception” to its analysis of the applicability of honest services fraud theory in a private setting in which the company is the victim of the fraud.”

There are numerous legal issues at play and not the prime subject of this blog. Rather, in laymans terms…Skilling was found guilty of (simply put) unethical conduct - fraud, consispracy, etc. Skilling was guilty because, as CEO, he acted in a manner that was unethical and costly to those who placed there confidence in he and Enron senior management.

Personal ethics only…? No such thing as business ethics?

Simply stated, looking at the complex legal arguements in Skilling’s appeal and the governments response - the arguement seems to strongly indicate that businesses have a legal existence and “soul.” If I’m acting at the direction of management then the “honest services fraud theory” would apply. Business ethics 101 as far as I can see.

After each Business Ethics keynote speech I give…there is at least one who just has to say that business ethics doesn’t exist. I do understand where they are coming from. Yet, most every business I encounter has a culture - a spirit if you will. And, that spirit, soul or corporate culture is the foundation of that enterprises - business ethics.

Not only is there business ethics - but it is now, as best as I can see, becoming part of legal defense against fraud, etc.

Interesting. Your opinion?

Ministry Accountability - What Do Benny Hinn, Kenneth Copeland and Eddie Long Have In Common?

In an age of increased corporate accountability under the Sarbanes-Oxley rules, it seems that Senator Chuck Grassley, ranking member of the p0werful Senate Finance Committee, is seeking detailed information from six major ministries concerning the application and use of their members contributions.

From his news release on November 6th the following is stated: “Grassley has reviewed a wide range of non-profit issues over the last five years, first as Finance Committee chairman and now as ranking member. The committee has exclusive Senate jurisdiction over federal tax policy, including the policy governing the billions of dollars donated to and controlled by the nation’s tax-exempt groups.”

He goes further to say, “I’m following up on complaints from the public and news coverage regarding certain practices at six ministries,” Grassley said. “The allegations involve governing boards that aren’t independent and allow generous salaries and housing allowances and amenities such as private jets and Rolls Royces. I don’t want to conclude that there’s a problem, but I have an obligation to donors and the taxpayers to find out more. People who donated should have their money spent as intended and in adherence with the tax code.”

What do you think about Senator Grassley’s request? Do you feel that prosperity enjoyed by church leaders is unethical? Should the Government be involved in the affairs of the Church? Are these individuals being singled out or is there a broader issue at play?

Every choice has a consequence. Is it possible that opulent prosperity can go too far?
To read the news release see:

http://www.senate.gov/~finance/press/Gpress/2007/prg110607.pdf

What do you think?

Working and Ethics in America

From a recent blog I read I share the following and ask you to comment on your perception of “work ethics”:

I recently read a newspaper article on attitudes towards work.

America: The more you worked, the more you billed, and more the profit you generated for yourself and your company.

France: The fewer hours you work, the more vacation you take, more the time you get to grumble about the state of the universe, and smarter you feel.

Australia: On Mondays, they would talk on how they enjoyed the just-ended weekend; on Thursdays, the talk would be on what one would do on the coming weekend; on Friday afternoons they would not be any talk as they are already driving off to the nearest beach or hill ranges.

Urban India: When I meet software professionals, I see that the talk is like as in America – billings and profits. While attitudes of work are seen in some other areas of businesses, most others exude a chalta hai attitude; anything will do; performance and good work be damned !

The question for this blog is not about other countries, but more about what you think.

What does “work ethics” mean to you?

Is it more “ethically” sound to achieve your personal goals or to achieve the goals of the employer?

Is it possible to meet both?

Has the strong focus on business performance in America helped or hurt our country?

Feel free to respond- the commentary should be interesting!

Earnings Pressure - Business Ethics - Consequences

According to the US Attorney for the Southern District of NY - Paul Humphreys, former CFO for Safety-Kleen, was sentenced to 70 months in prison for securities and bank fraud.

It seems that Mr. Humphreys was convicted for his role in manipulating Safety-Kleen’s financial statements. The indictment alleges that this was a fraud designed to help Safety-Kleen meet earnings targets projected for the completion of a merger with Rollins Environmental Services.

“Approximately eight to ten business days following the close of each quarter, senior management held operations conference calls with representatives of various field offices to discuss the quarterly results and compare them with budgeted and/or prior year results. Thereafter, HUMPHREYS met with one or more co-conspirators, informed them of a higher “target” earnings number which HUMPHREYS wanted the company to publicly report.”

70 months!

He’ll serve a 60 month active sentence in Federal Prison - almost 10% of his life will be spent there. And all done in order to make a company meet projections. Wonder if today he would say that was a good investment of his time and energy?

As a motivational speaker on Business Ethics I hear people say so often, “There’s no such thing as business ethics.” Frankly I want to look them in the eye and ask them what planet they’re from. “No. NO,” they’ll say. “People have ethics not businesses.”

Well that’s true. People do have ethics. But, I’ll submit to anyone reading that most people are, in fact, ethical. We know right from wrong and how to apply ethical principles. Yet, I went to prison. (Not something that I’m proud of, but a fact none-the-less). I was not inherently unethical. And, I would bet neither was Mr. Humphreys. Rather, we both fell into similar traps. We had a need. We had an opportunity. And we could rationalize our behavior. Perfect circumstances for bad choices and even worse consequences.

Every choice has a consequence! Mr. Humphreys is soon to experience the continuation of his - and he won’t like it - not one little bit.

I speak to groups all over the US about business ethics - choices and consequences. I know first hand what Mr. Humphrey’s will face. I also know how to break the chains that can bid us.
What prison are you in? How have your choices brought about life changing consequences? And what do you think about business ethics?

Choices, Consequences, Humor (?) and E-mail

There are some folks you just can please. Makes no difference what you do or how you do it, it seems you just can win. And those are often the folks that provide the greatest lesson. Often those are lessons we need but least desire!

Take for example a customer I recently had the opportunity to work with. Seems that nothing the folks in our sales and service department did, could provide satisfaction. Every time I would hear this customers name I kept hearing in my head the old Rolling Stones song, “I can’t get no satisfaction!”

No one could please him and as one might expect…the less he was satisfied the more he wanted to take his request to higher authorities. Well the buck’s gotta stop with someone…and in this case it was me. So I did what any good sales executive would do…I listened - and listened - and listened. And no matter what solutions were offered - it wasn’t good enough.

Demanding - probably a minor understatement, but at least the communication was via e-mail (at least most of it). I was the conduit between our customer and our supplier and it seemed with the completion of each request - more demands were made. Either I couldn’t give him what he wanted when he wanted it or the supplier could get his requests done correctly or timely enough.

The frustration was increasing with each passing day. More importantly, I thought, I’m spending way to much time on someone who doesn’t seem to appreciate my service or effort. And more demands!

Lesson: Watch what you put in an e-mail - because Every choice has a consequence!

I was frustrated with the customer, he with me and the supplier with both - and yet the supplier still hadn’t complied with the customer’s last request.

So out of a moment of anguish…I e-mailed the supplier and stated the following:

Guys…I know it seems I’m bugging you, but this guy (referring to the customer) would drive Jesus crazy. Can you please send me what he’s requested so I can get him off my back?

You have no idea how happy I was to find an e-mail in my in box with the customers request met from the supplier. “Finally!” I thought. “Now I can get him off my back!” And then I did what seemed to make perfect sense at the time.

Any readers want to guess what that might have been? What choice did ole Chuck make? Yep, you’re right - I forwarded the response to the customer. I was so pleased to provide him what he wanted…I just sent the response forward.

Think about it. Absorb it. Let it really sink in. Then please…feel complete permission to laugh. Although, I can assure you it was no laughing matter.

Keep in mind, every choice has a consequence.

As I traveled home that day I was alerted to a message on my cell phone. Not being able to take the call when it came in…I retrieved the message only to find my entire demeanor change.

“This is (name deleted to protect the innocent customer) and, Mr. Gallagher, I wanted to call and let you know that I just got off the phone with your boss explaining to him my dissatisfaction with the service I’ve received - especially your comment that I would ‘drive Jesus crazy’!”

The rest of the story - well that isn’t relevant to this blog. What is relevant is the use of e-mail and the consequences that can follow from unintended thoughts sealed in fate when you hit the “send” button. In the White Collar Crime Prof Blog the following is stated: “The ’send’ button — together with its evil cousins, ‘forward’ and ‘reply all’ — are causing a world of trouble for corporations as they connect to evidence in legal proceedings and create a new mess for in-house lawyers to clean up.”

Fortunately, for all involved, my mess was cleaned up by profuse apologies and extraordinary service to follow. It was not a legal issue, but e-mails certainly can be.

Issues related to frustration with employees can rear their ugly head in a wrongful dismissal suit. Or, e-mails between employees who (for a time) are fond with each other can become the foundation for a sexual harassment suit. Name it and an e-mail can be either wonderful evidence to prove an issue or become a disaster upon discovery.

Morale to the story: Keep your personal thoughts personal…cause anything you say can and will be used against you in a court of law. Don’t forget - Every Choice Has A Consequence.

Genarlow Wilson - Choices and Consequences!

Every CHOICE has a consequence! Just ask Genarlow Wilson. Freed on October 26, 2007 after spending more than two years in Georgia State prison for a teen sex conviction, Genarlow became a "lighting rod" for Choices, Change and Consequences on many fronts.

According to CNN, "Wilson was an honor student, a football star and his high school's homecoming king before his conviction. At the time of Wilson's conviction, Georgia law made the crime punishable by 10 years in prison. Changes in the law made such conduct "punishable by no more than a year in prison and no sex offender registration," the Georgia high court noted. But those changes were not made retroactive, so they did not apply to Wilson."

But, beyond the inequity of Genarlow's sentence, a larger question exists: What will Genarlow Wilson do to benefit others from his experience?

Genarlow stated upon release, "I got a new life."

Certainly, his sentence and incarceration has caused a law to be changed in Georgia. One could say that is good. But beyond that, Genarlow is an example of a simple, yet profound, principle: Every choice has a consequence.

As a motivational keynote speaker, I make presentations to young people frequently about Choices and their consequences. The responses I receive are sometimes troubling.

The formal part of the presentation I was making to young people at a high school had just finished, when I asked the group if they had any questions. One girl lifted her hand nervously and then asked, “What did your children think about their daddy going to prison?” That question caused me to pause. The consequences of my choices were devastating. My marriage was destroyed. My career was over. My assets were gone. Facing prison – well that was rock bottom. The “somebody” that I was once known as had changed to being the “somebody” that few wanted to know. All that said, the one thing that did survive, by the grace of God, was the love of my two sons. They were both old enough to understand what I had done and what was happening. And, I made a commitment that I would tell them the whole truth. I may have made serious mistakes, but I was not a mistake and had no intention to continue that process. If any good would come from this, my sons would understand that every choice has a consequence. I was living proof.

As soon as I finished my answer, out of the back of the room a young man blurted out, “You're not dishonest, if you don’t get caught!”

I was stunned.

As a motivational speaker and founder of the Choices Foundation, a non-profit organization dedicated to bringing the message of choices and consequences to young people, I had just finished a presentation that clearly and unequivocally said there is a consequence. Wobbled, stunned, I’m not really sure what I felt. What I do recall is the reaction that I saw and heard from the kids. A few looked shocked by this young man’s statement – a look of disbelief at what they had just heard. Others, although a small number, just giggled. It was as if this small, yet vocal, minority were testing me and the message I had just delivered. One thing was for sure, there was silence that followed as the group awaited a response.

The opinion that this young man had the courage to share is not that uncommon among adult audiences. The only difference is – they don’t state it out loud – they demonstrate it through their actions. And, since every choice has a consequence, they will reap what they sow. It’s the law of reciprocity in action – a universal law that we all must live by – and one many think does not exist.

No one is exempt from the law and the law does not discriminate based on age. Yet, young people are often misguided into believing that they can get by without getting caught. In fact, recent studies, concerning the ethical attitudes of youth, indicates that the majority of young people would make unethical choices if they felt they could “get ahead” as a result. Success at all costs seems to be a common theme.

As former inmate from Federal prison, today I share with business executives and young people that simple message: Every choice has a consequence.

I am pleased beyond belief that Genarlow is now getting the taste of freedom again. Genarlow's plight, has helped other young people evaluate the power of their seemingly simple choices. As the founder of the Choices Foundation, perhaps Genarlow would consider stepping up and helping others understand the power of choice.

After all...Every Choice has a Consequence.

OJ Simpson Again: The Theft is Fine, If the Stuff is Mine?

"If it doesn't fit, you must acquit," became Johnny Cochran's mantra as he tried to convince jurors that the case laid out by prosecutors against OJ Simpson was inconsistent and full of holes. This was reported on CNN.com on September 28th, 1995. Now, some twelve years later, OJ is back in the news with a new set of legal problems. This time what will the mantra be: “The theft is fine if the stuff is mine?”

Every choice has a consequence. OJ is just another person who seems to be having a hard time figuring that out. Of course, his celebrity keeps him in the news and gives us all an opportunity to see universal laws at work. Perhaps, it would serve the greater good to look at OJ’s choices and the consequences that followed.

Whether OJ Simpson is guilty of killing Nichole Brown Simpson and Ron Goldman is not a subject of debate. Clearly, a jury has found OJ innocent of capital murder. Yet, OJ made, before and throughout the trial, himself a target by his behavior. Leading police on a nationally televised police chase didn’t represent a choice that fostered a feeling of innocence. Does it make him guilty? No. But, the choice he made had a consequence – at a minimum the consequence was doubt as to his innocence. That doubt still exists today.

Now, twelve years later OJ is back in the media with a brush with the law. According to Fox news…”Prosecutors charged Simpson with 11 criminal offenses in all, including the first-degree kidnapping charge.

Simpson was arrested after a collector reported a group of armed men charged into his hotel room at the Palace Station casino and took several items that Simpson claimed belonged to him. He has been held since then in protective custody in a 7-foot-by-14-foot cell.
The Heisman Trophy winner was charged with kidnapping, robbery with use of a deadly weapon, burglary while in possession of a deadly weapon, coercion with use of a deadly weapon, assault with a deadly weapon, conspiracy to commit kidnapping, conspiracy to commit robbery and conspiracy to commit a crime.”

Once again, every choice has a consequence. If, in fact, OJ believed that his personal effects were wrongly in someone else’s possession, would it not make sense to alert law enforcement and allow them to deal with the issue of stolen goods? Knowing that you are a celebrity in the media eye, would you think if you’re OJ that the choice of attempting to retrieve you own personal goods could be a legal problem? Regardless of ownership of the memorabilia, if the property should be returned there are choices and methods that would yield a better consequence.

OJ’s entry and attempt to retrieve “his memorabilia” demonstrates another poor choice with a disastrous outcome. Charged with 11 criminal offenses, OJ was released on $125,000 bail. Again according to Fox News, “The memorabilia taken from the hotel room included football game balls signed by Simpson, Joe Montana lithographs, baseballs autographed by Pete Rose and Duke Snider and framed awards and plaques, together valued at as much as $100,000.

Although Simpson was acquitted of murder charges in the deaths of his ex-wife, Nicole Brown Simpson and friend Ron Goldman, a jury later held him liable for the killings in a wrongful death lawsuit and ordered him to pay a $33.5 million judgment. On Tuesday, a California judge gave a lawyer for Goldman's father a week to deliver a list of items Simpson was accused of taking from the hotel room, raising the possibility that they could be sold to pay off the judgment.”

Perhaps OJ will once again escape the clutches of the legal system. Although with the counts he is facing, one might assume that he will have an up hill battle. Either way, his choices are getting him a set of predictable consequences much like mine did 20+ years ago. Having served time in Federal Prison, I fully understand the Law of Reciprocity (You reap what you sow!). The difference is that I have had the opportunity to learn from the experience and use the experience for the greater good. It would appear that OJ has missed the point.

Every choice has a consequence. The dynamic thing is, we can choose the consequence. It can be incredibly negative (such as what OJ is experiencing right now), or it can be extremely positive. On a personal level I know the shame and loss that prison brings and the joy of rising from the ashes of my former self to being asked to speak to audiences nationwide – helping others see the direct relationship to choices and consequences. As humans we can make a mistake, we are not the MISTAKE.

Perhaps OJ will have, yet once again, the chance to make the right choices and use his fame and celebrity for the benefit of others. Through the Choices Foundation, a non-profit organization I established, I speak to audiences from coast to coast, with a dynamic ethics message. Especially well received by university students, I focus on making clear to them that every choice has a consequence – a message much needed in today’s environment.

As a business ethics speaker and sales motivational speaker, my business and personal experiences over 30 years provides a powerful framework for presentations, workshops and consulting. Understanding the business and ethical challenges facing individuals and organizations today, whether corporate, government or association, the message focuses on the pressing issues found so often in the media…just like the “new” OJ story.

For information on my programs or how they may benefit your organization, visit my web site: www.chuckgallagher.com or contact me at chuck@chuckgallagher.com.

Nifong - Former Duke Prosecutor: Choices and Consequences

Sentenced to jail! That was the verdict read by the judge to Mike Nifong, the disbarred Durham County, NC former district attorney who gained national fame in his attempt to prosecute Duke University lacrosse players on rape charges. Nifong rather will spend a day behind bars for criminal contempt of court.

How often have I said in presentations around the country, "Every choice has a consequence! It is an inescapable truth...just like gravity." Yet, it seems daily we are bombarded with media rich coverage about bad choices and the consequences that follow. The Duke Lacrosse fiasco and Mike Nifong's prosecution continues to show vividly the application of the law of reciprocity (simply put you reap what you sow).

As an Ethics Keynote Speaker I often observe that there seems to be a common thread that runs through issues like this. I understand clearly how choices can be made that can have disastrous consequences. I know – I made them and lived through them. Perhaps if they are exposed, others may consider more carefully their choices before reaping the consequences that follow.

It has been said that Nifong's judgment was blurred by political ambition. It has been argued that Nifong's political career could be catapulted forward with a high profile conviction in this case. Suppose that the Duke Lacrosse students had, in fact, raped an African American stripper. Imagine, if you will, the headlines following a conviction. Nifong would have brought to justice those wealthy Caucasian boys who, assuming they were above the law with their wealth and privilege, harmed in a violent way those who were underprivileged and disenfranchised. Headlines like that would get one votes, and votes gets one power in the political machine.

The problem is - it wasn't true. Certainly the Duke Lacrosse students may be judged guilty of poor judgment. As we all know, college students often exercise poor judgment. Judgment aside, they did not break the law. Regardless of what was said, in this case the truth was exposed - Choices and consequences.

But what were the choices and consequences in this case? First, it didn’t start with Mike Nifong. He, along with the Duke lacrosse players and their families all experienced consequences from choices made. Mike Nifong today may very well have been the Durham County, NC prosecutor had the lacrosse stripper party not have taken place. Nifong’s actions are not excused here, rather, there is a reality check recognizing that every choice has a consequence and the Duke students created the environment for the drama to unfold.

What were the choices that created this whole series of unfortunate but universally destined consequences? (1) The Duke students, by most accounts, exercised poor judgment and suffered as a result. None of the students in question will become Duke University graduates – a consequence none would have expected moments before the party began. (2) The stripper must have thought, “Hum, here’s a chance to make some money. You know they’ll settle.” The fact is, the truth of a situation eventually will come out. Some may believe that the truth can be hidden. Perhaps that’s true for a while, but the truth and the consequences thereof will always be revealed – at least at some point in time. (3) Nifong, while knowing he didn’t have a case, continued to move forward hoping that he would gain the conviction he so desperately wanted – thereby moving his political career forward.

All choices have consequences - either positive or negative. That is an inescapable truth. Having experienced much of what Mike Nifong is going through, I understand the pain is very real. The effects or consequences of our choices can be seared into our beings for the rest of our lives. Likewise, this is not the end for Nifong as there are pending civil suits against him.

In a report from the Associated Press this comment was made: "Today felt like the end of a Greek tragedy," said Jim Cooney, on of the lacrosse player’s attorney. "It was a tragedy for the boys and their families, but it was also a tragedy for Mike Nifong who at one point seemed to be a decent, honest prosecutor and lost his way."

At times it may seem like the end, but some ends are nothing more than beginnings. As the founder of the Choices Foundation, a non-profit organization, I know that bad endings and the consequences of poor choices can be the catalyst for an incredible amount of good. Like Mike Nifong, my poor choices earned me time in prison, yet that time, today, affords me the opportunity to speak to college and university students about Choices and their Consequences. Perhaps, when the Nifong drama comes to an end, Mike can use his experience for good. After all, we may make mistakes (some very significant) but we are not the mistake. Every choice has a consequence – so good choices can bring about positive results.

Michael Vick - A Career Gone To The Dogs!

Most everywhere you turn when looking at sports these days you’ll see and hear stories about the prosecution of Michael Vick, the Atlanta Falcons football star quarterback. Expecting to be prepared to advance his career, Vick has now pled guilty and accept the government’s plea deal. Sentencing is to come in a few months, but Vick could face up to five years in prison.

As stated in the White Collar Crime Prof Blog, “A best-case scenario for Vick that the defense lawyers may be seeking is a “Martha Stewart” double-nickel sentence: five months in prison, five months of home confinement. The government’s offer would most likely call for a term of a year-and-a-day, which under the Bureau of Prisons guidelines would allow Vick to receive a 15% good time credit, reducing his sentence by 54 days to a bit over ten months. Any sentence under a year that his attorneys are trying to negotiate would have to come in under ten months for it to be an advantage because there is no good time credit if the sentence is a year or less.” http://www.chuckgallagher.com

Not only is this going to be difficult for Vick, but others who were charged in this Federal dog fighting conspiracy accepted plea agreements and decided to cooperate with the government. In more ways that one - Vick is in the proverbial “dog house.” His actions have had multiple and far reaching consequences. Not the least of which is that Vick has been suspended indefinitely without pay from the NFL.

Likewise, Nike and Reebok have given Vick the boot. According to ESPN.com news services, “Nike suspended its lucrative contract with Michael Vick, while Reebok took the unprecedented step of stopping sales of his No. 7 jersey.” Likewise, Donruss, a major trading card company pulled Vick from future releases and Upper Deck removed autographed material from its on-line stores. And finally, Rawlings decided to end its relationship with Vick due to the conspiracy charges. All of these changes have huge financial implications.

All of the above consequences came directly as a result of Vick seeming to enjoy a non-football passion – dog fighting. Now the question that is worth reviewing is did Vick at any time give any serious consideration to the consequences of his illegal actions? I can imagine that he saw this as a sport (perhaps one that isn’t recognized), but to him a testosterone filled pastime. After all what harm can come from fighting pit bulls (a cruel sport)? Obviously more than Vick would have ever imagined!

Once you look past the surface abuse of animals (a big issue for PETA), the fact it’s an illegal activity, etc., you’ll find that Vick rationalized his behavior just like any of us who have been convicted of an illegal action. I am convinced that Martha Stewart, for example, had no clue that her choice to sell stock on a tip from her broker was going to end in a prison sentence. The fact is that many an unsuspecting person may make choices that can have immediate or prolonged consequences in unexpected ways.

The consequences of actions are not limited to activities that folks even understand are illegal. Take for example, Genarlow Wilson, a young man who is incarcerated for 10 years for his sexual activity with a minor. His case has received national attention, yet, even after the law that convicted him was changed, he remains in prison. Whether the consequence is fair isn’t always relevant. What is a fact is EVERY CHOICE HAS A CONSEQUENCE. Michael Vick is just another example...and an unfortunate example of one who is suffering far reaching consequences for his choices.

The Choices Foundation, a non-profit organization, is dedicated to teaching young people the relationship between choices and consequences. “If we can impress on the mind of our youth the direct correlation between what we choose and the consequences that follow, perhaps we can help them avoid consequences like those Michael Vick are facing,” stated Choices Foundation founder Chuck Gallagher.

In a presentation to a youth group not long ago, one young man stated, “Well, it’s not dishonest if you don’t get caught.” Attitudes like that are what empowers people to make unethical decisions and expect no direct consequence. From my personal experience, I know that one can rationalize a choice all day long and it doesn’t color the action or change the consequence. “My actions left me incarcerated in Federal prison, an experience I will never forget.,” stated Gallagher.

As a motivational speaker and ethics keynote speaker, I share my experience in a way that connects with his audience, whether a business executive group or a youth group from a university. http://www.chuckgallagher.com “Understanding the effect of Choices and Consequences from one who directly knows can be powerful and an influence for ethical behavior.” Perhaps, when the smoke clears, Vick can see the effect clearly from the choices he made. And maybe, just maybe, Vick will use his powerful influence for good, helping those who have looked up to him understand that Every Choice Has A Consequence