Robert M. MacLafferty, age 46, of Portland, Tennessee was sentenced January 29th to serve 5 months in prison, followed by 3 years of supervised release. His sentence also included the requirement to pay restitution to the IRS of $37 plus thousand.
According to the US Attorney's news release:
MacLafferty pled guilty on October 12, 2007, to five counts of income tax evasion. During his plea hearing, MacLafferty admitted that he earned income which required him to file federal income tax returns for years 1996 through 2003, however, he failed to file such a return in each of those years. MacLafferty also admitted that he had adjusted gross income totaling $227,993 from 2000 to 2003. During this period of time, MacLafferty provided false documents to his employer claiming he was not a citizen of the United States and therefore not liable to pay federal income taxes. MacLafferty also admitted that after the Internal Revenue Service filed a federal tax lien against his residence in Sumner County, he quitclaimed his interest in this property and another property to his wife.
Similarities? Let's see - Snipes claimed that he was not a citizen of the US and not liable to pay federal income taxes. Likewise, Snipes filed to file tax returns for a number of years during which he had approximately $37 million in earnings.
Possible Outcome! Snipes, due to "star power" avoids prison and makes right with the IRS and federal government. Or, Snipes gets a "hand slap" prison sentence like MacLafferty and is told to pay up for his misdeeds.
Since it will take time to see what the outcome is...want to weigh in with your thoughts.
Prison (light sentence) or freedom - which will the judge order?
Business ethics speaker, Chuck Gallagher, off for now...
Showing posts with label chuck gallagher. Show all posts
Showing posts with label chuck gallagher. Show all posts
Sunday, February 3, 2008
White Collar Crime - Week In Review From South Carolina to California to Florida - Comments by Ethics Speaker Chuck Gallagher
After reviewing the verdict in the Wesley Snipes case - both guilty and innocent - it makes sense to consider what else is taking place on the white collar crime front.
South Carolina: Christina J. Williams, age 32, of Conway, South Carolina, was sentenced in federal court for aggravated identity theft and credit card fraud.
Williams worked as the office manager in a doctor’s office in Surfside Beach, South Carolina. From August 2003 to July 2004, Williams made unauthorized charges using the doctor’s personal and business credit cards, and used his personal information to secure a card for herself. Williams also embezzled money from the doctor’s office and had her name added to his cellular phone account. Investigators determined that Williams stole more than$104,000.00 during the course of the scheme.
Rhode Island: Cory Johnson, the former president of Mixitforme, a company that sold electronic devices over the Internet and by telephone, pleaded guilty today to fraud and money laundering. Johnson admitted that he defrauded a credit card processing firm out of about $2.2 million worth of customer orders that Mixitforme failed to fulfill.
Between November 2005 and March 2006, NOVA processed millions of dollars worth of credit card transactions on behalf of Mixitforme for orders the company received over the Internet and by telephone. In March 2006, Mixitforme ceased operations, and hundreds of customers subsequently complained to NOVA that their credit card accounts had been charged for orders to Mixitforme but the merchandise had not been delivered.
NOVA refunded customers a total of $3,178,347 in charges for unfulfilled orders. NOVA was able to recoup $954,460 from a bank, but was left with a net loss of $2,223,887.
Johnson, 29, of Morrisville, Pennsylvania, pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. He is free on bond pending sentencing, which Judge Smith scheduled for June 20. The maximum prison sentences are: conspiracy -- five years, and money laundering -- ten years. Each offense also carries a maximum fine of $250,000.
Pennsylvania: William D. Edgar, a resident of Verona, Pennsylvania, has been sentenced in federal court in Pittsburgh, Pennsylvania to 37 months of incarceration and five years supervised release on his conviction of Conspiracy, Bank Fraud, and Wire Fraud.
Edgar, who was a mortgage broker licensed by the Pennsylvania Department of Banking, operated a mortgage brokerage business known as America's Mortgage Outlet in Monroeville, Pennsylvania. Between May 2001, and October 2003, Edgar participated with loan officers at America's Mortgage Outlet in a scheme to defraud banks and private lenders by making false representations in more than seventy mortgage loan applications submitted on behalf of his customers.
Two types of fraudulent schemes were used. One form was to falsely represent to the lenders that mortgage loan applications presented to the lenders were for refinance loans, when in actuality the applications were for purchase loans. The refinance scheme deceived the lenders into approving and funding loans on terms and conditions they would not have otherwise approved or funded.
Another form of the scheme was to accurately represent loans as purchase loans, but to falsely inflate the sale prices and values of real properties being purchased in order to cause the lenders to approve larger loans than they would have otherwise approved. This scheme deceived lenders into financing down payments and other cash disbursements from mortgage loan proceeds. In total, more than $3,000,000 worth of loans were issued in connection with this scheme.
California: BARRY HOLLAND, age 60, of Carmichael, entered a guilty plea to accepting unlawful bribes while serving as Superintendent for the City of Sacramento’s Water Distribution Branch. HOLLAND pled guilty to a one count information charging him with bribery in connection with a municipality that receives federal funds.
From at least 1999 through 2005, one Sheldon M. had an oral agreement with the Water Distribution Branch under which he would retrieve used meters from the Water Distribution Branch, transport the same to a recycler, and sell the same for profit. Sheldon M. would then keep a portion of the meter sale proceeds for himself as a fee and would maintain a separate portion of the meter sale proceeds in a “slush fund” which he later would disburse to certain employees of the Water Distribution Branch, including HOLLAND, or utilize to make purchases for the benefit of the Water Distribution Branch. Between October, 1999 and November, 2005, defendant HOLLAND accepted approximately 16 checks and cash totaling approximately $10,371 as rewards from Sheldon M. for allowing Sheldon M. to sell the water meters. HOLLAND also accepted various machinery (then retained by the Water Distribution Branch), including two air motors with a combined value of approximately $7,200, and a tapping machine with an approximate value of $8,000 to $9,000 from Sheldon M., also as rewards from Sheldon M. for allowing Sheldon M. to sell the water meters.
Florida: It was announced that owners of nine separate Miami-based health care corporations have been sentenced to prison terms within the past two weeks. Collectively, the nine defendants filed fraudulent claims with Medicare for $56,599,832 worth of unnecessary durable medical equipment (DME) and infusion therapy.
The nine defendants sentenced in Miami are: (1) Luis Soto, 41, sentenced to 87 months in prison; (2) Noel Rodriguez, 50, sentenced to 51 months in prison; (3) Rosabel Gonzalez, 32, sentenced to 30 months in prison; (4) Christian Vasquez, 22, sentenced to 41 months in prison; (5) Maria De La Serna, 55, sentenced to 19 months in prison; (6) Ariel Betancourt, 35, sentenced to 24 months in prison; (7) Jose Prieto, 58, sentenced to 41 months in prison; (8) Armando Jorge Herrera, 27, sentenced to 36 months in prison; and (9) Reinaldo Lopez, 40, sentenced to 46 months in prison.
Comments: First, as a business ethics speaker (http://www.chuckgallagher.com/) I often speak to groups about the Truth About Consequences. My workshops on white collar crime and fraud are well attended as it appears that anyone can get caught up in criminal activity - and I speak from experience - the consequences can be devastating.
The Florida issue clearly is one of pure greed and seemingly opportunity. Time after time people (especially in dealing with the government) think that the customer - US Government - is too big and would never catch their "slick" illegal scheme. And, more times than not - they do and the consequences are less than pleasant. Prison terms no matter their length are unpleasant.
In California we see an example of someone being found guilty for participating in a scheme. I would be that this person would have felt that it must be O.K., someone else is making the choice - he was just a recipient. Wrong! Illegal is illegal.
Pennsylvania, Rhode Island and South Carolina - well that was just fraud pure and simple. Most of the time when a fraud is committed there are three components: (1) Need; (2) Opportunity and (3) Rationalization. While I don't know how the three came together in there cases...you can bet they did.
But, this week has past - Snipes has been found innocent and guilty - and we face another week. Perhaps, it would help if people understood two simple facts:
Every choice has a consequence! and You reap what you sow!
Your thoughts and comments are welcome!
South Carolina: Christina J. Williams, age 32, of Conway, South Carolina, was sentenced in federal court for aggravated identity theft and credit card fraud.
Williams worked as the office manager in a doctor’s office in Surfside Beach, South Carolina. From August 2003 to July 2004, Williams made unauthorized charges using the doctor’s personal and business credit cards, and used his personal information to secure a card for herself. Williams also embezzled money from the doctor’s office and had her name added to his cellular phone account. Investigators determined that Williams stole more than$104,000.00 during the course of the scheme.
Rhode Island: Cory Johnson, the former president of Mixitforme, a company that sold electronic devices over the Internet and by telephone, pleaded guilty today to fraud and money laundering. Johnson admitted that he defrauded a credit card processing firm out of about $2.2 million worth of customer orders that Mixitforme failed to fulfill.
Between November 2005 and March 2006, NOVA processed millions of dollars worth of credit card transactions on behalf of Mixitforme for orders the company received over the Internet and by telephone. In March 2006, Mixitforme ceased operations, and hundreds of customers subsequently complained to NOVA that their credit card accounts had been charged for orders to Mixitforme but the merchandise had not been delivered.
NOVA refunded customers a total of $3,178,347 in charges for unfulfilled orders. NOVA was able to recoup $954,460 from a bank, but was left with a net loss of $2,223,887.
Johnson, 29, of Morrisville, Pennsylvania, pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. He is free on bond pending sentencing, which Judge Smith scheduled for June 20. The maximum prison sentences are: conspiracy -- five years, and money laundering -- ten years. Each offense also carries a maximum fine of $250,000.
Pennsylvania: William D. Edgar, a resident of Verona, Pennsylvania, has been sentenced in federal court in Pittsburgh, Pennsylvania to 37 months of incarceration and five years supervised release on his conviction of Conspiracy, Bank Fraud, and Wire Fraud.
Edgar, who was a mortgage broker licensed by the Pennsylvania Department of Banking, operated a mortgage brokerage business known as America's Mortgage Outlet in Monroeville, Pennsylvania. Between May 2001, and October 2003, Edgar participated with loan officers at America's Mortgage Outlet in a scheme to defraud banks and private lenders by making false representations in more than seventy mortgage loan applications submitted on behalf of his customers.
Two types of fraudulent schemes were used. One form was to falsely represent to the lenders that mortgage loan applications presented to the lenders were for refinance loans, when in actuality the applications were for purchase loans. The refinance scheme deceived the lenders into approving and funding loans on terms and conditions they would not have otherwise approved or funded.
Another form of the scheme was to accurately represent loans as purchase loans, but to falsely inflate the sale prices and values of real properties being purchased in order to cause the lenders to approve larger loans than they would have otherwise approved. This scheme deceived lenders into financing down payments and other cash disbursements from mortgage loan proceeds. In total, more than $3,000,000 worth of loans were issued in connection with this scheme.
California: BARRY HOLLAND, age 60, of Carmichael, entered a guilty plea to accepting unlawful bribes while serving as Superintendent for the City of Sacramento’s Water Distribution Branch. HOLLAND pled guilty to a one count information charging him with bribery in connection with a municipality that receives federal funds.
From at least 1999 through 2005, one Sheldon M. had an oral agreement with the Water Distribution Branch under which he would retrieve used meters from the Water Distribution Branch, transport the same to a recycler, and sell the same for profit. Sheldon M. would then keep a portion of the meter sale proceeds for himself as a fee and would maintain a separate portion of the meter sale proceeds in a “slush fund” which he later would disburse to certain employees of the Water Distribution Branch, including HOLLAND, or utilize to make purchases for the benefit of the Water Distribution Branch. Between October, 1999 and November, 2005, defendant HOLLAND accepted approximately 16 checks and cash totaling approximately $10,371 as rewards from Sheldon M. for allowing Sheldon M. to sell the water meters. HOLLAND also accepted various machinery (then retained by the Water Distribution Branch), including two air motors with a combined value of approximately $7,200, and a tapping machine with an approximate value of $8,000 to $9,000 from Sheldon M., also as rewards from Sheldon M. for allowing Sheldon M. to sell the water meters.
Florida: It was announced that owners of nine separate Miami-based health care corporations have been sentenced to prison terms within the past two weeks. Collectively, the nine defendants filed fraudulent claims with Medicare for $56,599,832 worth of unnecessary durable medical equipment (DME) and infusion therapy.
The nine defendants sentenced in Miami are: (1) Luis Soto, 41, sentenced to 87 months in prison; (2) Noel Rodriguez, 50, sentenced to 51 months in prison; (3) Rosabel Gonzalez, 32, sentenced to 30 months in prison; (4) Christian Vasquez, 22, sentenced to 41 months in prison; (5) Maria De La Serna, 55, sentenced to 19 months in prison; (6) Ariel Betancourt, 35, sentenced to 24 months in prison; (7) Jose Prieto, 58, sentenced to 41 months in prison; (8) Armando Jorge Herrera, 27, sentenced to 36 months in prison; and (9) Reinaldo Lopez, 40, sentenced to 46 months in prison.
Comments: First, as a business ethics speaker (http://www.chuckgallagher.com/) I often speak to groups about the Truth About Consequences. My workshops on white collar crime and fraud are well attended as it appears that anyone can get caught up in criminal activity - and I speak from experience - the consequences can be devastating.
The Florida issue clearly is one of pure greed and seemingly opportunity. Time after time people (especially in dealing with the government) think that the customer - US Government - is too big and would never catch their "slick" illegal scheme. And, more times than not - they do and the consequences are less than pleasant. Prison terms no matter their length are unpleasant.
In California we see an example of someone being found guilty for participating in a scheme. I would be that this person would have felt that it must be O.K., someone else is making the choice - he was just a recipient. Wrong! Illegal is illegal.
Pennsylvania, Rhode Island and South Carolina - well that was just fraud pure and simple. Most of the time when a fraud is committed there are three components: (1) Need; (2) Opportunity and (3) Rationalization. While I don't know how the three came together in there cases...you can bet they did.
But, this week has past - Snipes has been found innocent and guilty - and we face another week. Perhaps, it would help if people understood two simple facts:
Every choice has a consequence! and You reap what you sow!
Your thoughts and comments are welcome!
Tuesday, January 29, 2008
Wesley Snipes - Patriot or Plain Idiot?
How many times did I hear in federal prison, people convicted of tax fraud claiming that they were just patriots imprisoned by a government gone amok. Fact was - they were in prison for their misguided belief. Considering that today the closing arguments were being made in the Wesley Snipes tax fraud case, we will likely see either a conviction (my prediction) or the miracle of the century - Snipes acquittal.
Federal prosecutor M. Scotland Morris portrays Wesley Snipes as a common criminal with worked with idiots like Eddie Ray Kahn to defraud the government of their duties as a citizen to file and pay their taxes. While Robert Barnes, Snipes attorney, portrays Snipes as a patriotic American who was legitimately seeking information about his tax liability. (If the jury buys that one - well, there's some outstanding property in the Everglades for sale.)
According to Rick Cundiff with the Star-Banner:
Prosecutor Morris went first, telling jurors Snipes conspired with Kahn and Rosile to file a fraudulent refund claim for $7.3 million in taxes on his 1997 return, and sought to illegally deny his ongoing tax liability for 1999 through 2004.
"Nobody likes paying taxes. Nobody," Morris said. "But paying taxes is the privilege we pay to live in a civilized society ... That's what this case is about - three men who believe they are above the law. They're not above the law. Tell them that."
Barnes invoked the Founding Fathers and said the Internal Revenue Service deprived Snipes of his civil rights by not responding to his letters seeking information.
"It may have been protest," he said of filings by Snipes and by Kahn on Snipes' behalf. "Protest is not criminal. It may have been disagreement. Disagreement is not criminal. It may have been frivolous. Frivolous is not fraud."
Barnes urged jurors to acquit Snipes in the name of American freedoms.
In the name of American freedoms? What American freedom is it that allows us to avoid filing tax returns? What American freedom is it that allows us to avoid paying income taxes on the money we earn? What is Barnes talking about?
"The liberty to ask questions ... the liberty to challenge your government. The liberty to engage your government. These liberties are American liberties," Barnes said. "The Liberty Bell may be cracked in Philadelphia, but it can still be heard in Ocala."
The last time I checked, challenging your government was perfectly legal as long as it was done through the legal legislative or judicial process. Here Snipes is taking the judicial road to challenge something he will lose and ultimately end up paying the price with his freedom. Sorry, but that to me is the mark of a plain idiot.
Every choice has a consequence. Snipes (unless I'm dramatically wrong) will pay the price of his choices with his freedom and while he spends time in federal prison, perhaps will come the knowing that he was duped by the likes of Kahn. But, maybe not, maybe they'll share a cell together so they can experience the joy of knowing they took a stand for the civil liberties of us all.
For now, I'm going to do my tax return.
Federal prosecutor M. Scotland Morris portrays Wesley Snipes as a common criminal with worked with idiots like Eddie Ray Kahn to defraud the government of their duties as a citizen to file and pay their taxes. While Robert Barnes, Snipes attorney, portrays Snipes as a patriotic American who was legitimately seeking information about his tax liability. (If the jury buys that one - well, there's some outstanding property in the Everglades for sale.)
According to Rick Cundiff with the Star-Banner:
Prosecutor Morris went first, telling jurors Snipes conspired with Kahn and Rosile to file a fraudulent refund claim for $7.3 million in taxes on his 1997 return, and sought to illegally deny his ongoing tax liability for 1999 through 2004.
"Nobody likes paying taxes. Nobody," Morris said. "But paying taxes is the privilege we pay to live in a civilized society ... That's what this case is about - three men who believe they are above the law. They're not above the law. Tell them that."
Barnes invoked the Founding Fathers and said the Internal Revenue Service deprived Snipes of his civil rights by not responding to his letters seeking information.
"It may have been protest," he said of filings by Snipes and by Kahn on Snipes' behalf. "Protest is not criminal. It may have been disagreement. Disagreement is not criminal. It may have been frivolous. Frivolous is not fraud."
Barnes urged jurors to acquit Snipes in the name of American freedoms.
In the name of American freedoms? What American freedom is it that allows us to avoid filing tax returns? What American freedom is it that allows us to avoid paying income taxes on the money we earn? What is Barnes talking about?
"The liberty to ask questions ... the liberty to challenge your government. The liberty to engage your government. These liberties are American liberties," Barnes said. "The Liberty Bell may be cracked in Philadelphia, but it can still be heard in Ocala."
The last time I checked, challenging your government was perfectly legal as long as it was done through the legal legislative or judicial process. Here Snipes is taking the judicial road to challenge something he will lose and ultimately end up paying the price with his freedom. Sorry, but that to me is the mark of a plain idiot.
Every choice has a consequence. Snipes (unless I'm dramatically wrong) will pay the price of his choices with his freedom and while he spends time in federal prison, perhaps will come the knowing that he was duped by the likes of Kahn. But, maybe not, maybe they'll share a cell together so they can experience the joy of knowing they took a stand for the civil liberties of us all.
For now, I'm going to do my tax return.
Thursday, December 20, 2007
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.
Friday, December 7, 2007
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?
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?
Wednesday, December 5, 2007
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.
“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?
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?
Saturday, December 1, 2007
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.
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.
Friday, November 30, 2007
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!
Thursday, November 29, 2007
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...
Monday, November 26, 2007
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
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
Saturday, November 24, 2007
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...
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...
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...
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...
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...
Thursday, November 22, 2007
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…
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…
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