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!

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.

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.

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...

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?

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

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...

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.

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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