Fraud

It’s no surprise to many that Richard and Mayumi Heene – the Colorado couple who said their son was aboard an escaped balloon in October – pleaded guilty to charges.

The parents plead guilty to criminal charges of staging the event in a publicity-seeking hoax after telling authorities their 6-year-old son Falcon was trapped inside a large silver balloon floating over eastern Colorado.

On Oct. 15, millions of people across the U.S. tuned in to watch the scene for almost two hours as military aircraft tracked the floating balloon in the air and rescuers chased it on the ground.  Everyone thought that the little boy was trapped inside floating high in the sky without any way out, when in actuality he was safe in the Heene’s home the entire time.

When asked why he didn’t come out of hiding when his parents were supposedly calling for him, Falcon accidentally admitted it was a hoax saying to his parents, “You guys said that we did it for the show.”

To make sure Mayumi, a Japanese citizen, would not face felony charges that could lead to her deportation, the couple plead guilty to multiple charges as part of a plea deal. Richard plead guilty to the felony of “attempting to influence a public servant” and faces the possible penalty of two to six years in prison and a fine of $2,000 to $500,000. His wife Mayumi plead guilty to a misdemeanor charge of “making a false report to authorities” and faces a possible sentence of six months in county jail and a fine of $50 to $750.

According to their lawyers, both are hoping for probation and are scheduled to return to court Dec. 23 for sentencing.

Although the Heenes were attempting to gain positive publicity by staging the incident and getting their 15 minutes of fame, it only brought along negative media attention and serious legal repercussions. Don’t try this at home; especially if your 6-year-old has a big mouth.

To learn more about the potential penalties relating to various felonies and misdemeanors in Colorado, take a look at the the list of Colorado Penalties for a variety of criminal charges.

How can you defraud your mother? That was probably the thought of witness and close friend of Brooke Astor, Henry Kissinger.

In 2007, well-known New York socialite and philanthropist Brooke Astor passed away at the age of 105. Today, however, her name is still running through headlines as her son Anthony D. Marshall, 85, has been found guilty of being involved in a conspiracy to defraud his late mother of her nearly $200-million fortune.

Marshall, a former U.S. ambassador and Tony Award-winning Broadway producer, has been undergoing a five-month trial for allegedly coercing his mother into unknowingly signing away millions of dollars to him.

Before her death due to pneumonia, Astor suffered from Alzheimer’s disease and dementia. During this time, Marshall, along with estate attorney Francis Morrissey, allegedly “tricked” Astor into signing a number of misleading papers in a private meeting in 2004. Because of her confused and unaware state, Astor unknowingly signed away millions of dollars to her son thinking all of the money was going to various charities.

According to close friends and family, Astor’s Alzheimer’s was so intense that she was unable to recognize the people close to her.

Marshall Found Guilty

The case came to light five months ago, and after 11 days of deliberation the jury found Marshall guilty on 14 of the 16 counts against him. Witnesses on the stand included Marshall’s close friends including Barbara Walters and Henry Kissinger, along with Astor’s former nurses, maids and butler who aided her through the years of her illness.

The charges against Marshall included grand larceny, which involved the theft of cash and expensive art pieces, possession of a variety of stolen property, and conspiracy to defraud the late Astor. With these charges, Marshall could receive up to 25 years in prison. Morrissey, on the other hand, was convicted on five charges against him, including conspiracy, scheming to defraud and forgery for altering Astor’s will. He could spend up to seven years in prison.

Marshall, how come you just didn’t ask instead of stealing from your own mother?

Last night TV host David Letterman’s opening monologue took an unforeseen turn. Viewers tuned in to hear Letterman make usual cracks at current celebrities and politicians in the news, but instead learned something about the 62-year-old host they’d never expect.

Letterman, who is married to longtime love Regina Lasko, admitted to the audience that he’s had various sexual affairs with a number of female coworkers over the years working at The Tonight Show. Not only was his infidelity to his wife – and mother of his child – shocking and disappointing to the millions of viewers watching the show, he soon revealed another scandalous aspect to the story: blackmail.

Until the known suspect was arrested, Letterman had been the victim of an on-going extortion plot by CBS’s 48 Hours employee Robert J. Halderman. For a few weeks, the suspected Halderman threatened to publish a book and screenplay about Letterman’s office affairs if he didn’t pay him a specified amount of money. Halderman is accused of trying to extort $2 million from Letterman, who issued a fake check during the investigation which ultimately got Halderman caught.

Letterman stood before the grand jury issuing his story and Halderman was eventually arrested shortly after.

Extortion is a criminal offense which occurs when a person acquires money or property from an individual through coercion or blackmail. Other relating white collar crimes include fraud, bribery, counterfeiting, embezzlement, forgery and larceny. Penalties for such crimes vary from fines to a prison sentence or both. Criminal laws sanction maximum penalties, but most defendants receive less than the maximum sentence issued by the judge.

If you want to learn more about white collar crimes, visit the New York State Department of Criminal Justice Service’s website . To better understand the laws pertaining to white collar crimes, also visit the New York Penal Law website.

Sergei Fedorov wins White Collar Crime Lawsuit in Detroit

Michigan hockey player Sergei Fedorov, formerly of the Detroit Red Wings, was recently awarded $60 million in a fraud and embezzlement lawsuit against Joseph Zada. The guilty Joseph Zada of Grosse Pointe Shores befriended the hockey player in the late 1990s and was soon entrusted as an investment manager for Federov. Both were introduced at a Detroit car dealership by a mutual friend.

Joseph Zada has cheated Federov of $43 million during the last eleven years. Federov is not the only person cheated by Zada. At least eight other businesses and individuals have named Zada as a crook and a cheat in Wayne Circuit Court.

Sergei Fedorov is well-known for surpassing a record in October 2008 by Alexander Mogilny for most goals (475) by a Russian born NHL player.

IRS Files Tax Lien on Nicolas Cage’s Louisiana Property

It looks like actor Nicolas Cage doesn’t understand the sure things in life: death and taxes. Cage has joined a celebrated list of individuals who have forgotten they have to pay taxes to Uncle Sam. Nicolas Cage has been indicted for tax fraud because he neglected to pay his 2007 income tax to the Internal Revenue Service (IRS). Reports have said he owes the IRS over $6,000,000.

Tax Fraud and Celebrity White Collar Criminals

Tax fraud is considered a white collar crime. A white collar crime involves business or financial conspiracies by a respected person, government official, or business person. The Department of Justice, Federal Bureau of Investigation investigates cases of federal white collar crimes.

Louisiana Tax Lien

The IRS has placed a tax lien on Cage’s Louisiana home which had been up for sale. A tax lien is when the IRS stakes a claim on your property in exchange for the tax you owe them.

This isn’t Cage’s first run in with the IRS. In 2008, he improperly filed his personal expenses and paid over $660,000 to the IRS.

Other Celebrity Tax Evaders

Cage isn’t the only Hollywood tax evader. Other stars that have been indicted for bilking the IRS are:

Helio Castroneves, 2008, tax evasion

Wesley Snipes, 2006, false refund claims

Richard Hatch, 2006, failing to report income from the show Survivor

Boris Becker, 2002, tax evasion

Darryl Strawberry, 1994, tax evasion

Pete Rose, 1990, tax evasion

Willie Nelson, 1990, tax evasion

Leona Helmsley, 1989, tax evasion

Nicolas Cage, I’m sure many of these stars will tell you – the IRS will always find you and yes, you will pay your taxes.