Los Angeles Criminal Defense Attorney Blog

The Department of Justice emerged victorious on Tuesday in a case against Alan M. Ralsky, the self-titled Godfather of Spam. The 64 year-old Ralsky was sentenced to jail time as well as substantial fines for computer fraud in southern California and elsewhere.

The DOJ had argued that Ralsky -- in conjunction with a ring of associates -- violated the CAN SPAM Act and engaged in money laundering, mail fraud, wire fraud, and illegal use of emails and computer networks. Court documents said that his spammer ring worked for about a year and a half (from 2004 to mid 2005) to artificially jack up the prices of certain stocks by sending out bulk spam emails to people. After the stock prices went up, other individuals in the white collar crime syndicate traded on those stocks. Collectively, they thus managed to rake in millions of dollars in illegal gains.

The spammers used sophisticated software to avoid detection and conducted their operations not only here in the United States but also in China and Hong Kong.

Microsoft, in particular, seemed delighted by the news of the conviction of these white collar criminals. A company spokesman remarked: “Yesterday’s sentencing is a significant success and sends a clear message that the courts take this type of illegal conduct seriously.”

As a good white collar criminal defense attorney in Southern California might note, Penal Code sections 502(c) and 530.5(e) respectively cover computer access and fraud and mail fraud. Of course, with intricate computer fraud cases like this one, the issues of law can get quite complex. For instance, to prepare for the Ralsky matter, prosecutors no doubt had to consider not just applicable federal and state laws but also international laws.

Putting together a strategic battle plan for a fraud case can get incredibly technical. Both sides must assemble complicated cause-and-affect arguments. The prosecution, for its part, has to identify the mechanisms by which the alleged fraud acts were committed -- no small task, particularly when you're dealing with sophisticated spammers and computer gurus. The defense doesn’t have it easy either. In order to combat charges of computer fraud, the defense must aptly challenge the logic of the prosecution's arguments and cite relevant laws and cases.

If you or a family member or friend has been charged with a white collar crime, like computer fraud in Los Angeles, you may want to speak with veteran criminal defense Attorney Michael Kraut of the Kraut Law Group. Attorney Kraut has impressive intellectual firepower -- he is a graduate of Harvard Law School. He also has lots of experience "in the trenches" -- he served for years as Deputy District Attorney for the City of Los Angeles prior to representing white collar defendants. He has a knack for anticipating and deftly deflating prosecutorial arguments -- arguments that often leave even experienced defense attorneys confused and helpless.

With so much on the line -- not just for you but also for your family -- it makes sense to work with one of Southern California’s most trusted fraud defense attorneys.

Continue reading " Alan M. Ralsky, the "Godfather of Spam," Convicted of Fraud in Southern California (and elsewhere) " »

Nicholas Cage has long been one of Hollywood's leading lights. Unfortunately, a combination of overspending and possible Los Angeles embezzlement -- along with the collapse of the global markets in 2008 -- has beset the A-lister with serious financial problems.

Cage will soon face off against his former business manager, Samuel Levin -- the two parties have sued and countersued each other -- over charges that include embezzlement in Los Angeles.

According to an AP story, Levin has accused Cage of engaging in no-holds-barred spending sprees -- against his counsel -- over the course of many years leading up to the banking collapse in the fall of 2008. The actor allegedly purchased 15 houses, 22 cars (including nine Rolls-Royces), a "flotilla of yachts," a pair of European castles, a Gulfstream jet, ornate jewelry and pieces of rare art, and other "exotic items." In addition, the actor allegedly spent lavishly on "Gatsby style" affairs at his various estates, further undermining his cash flow. Cage maintains that his business manager kept him in the dark about the state of his finances.

The legal battle between the actor and his former manager will surely soak up a great deal of media attention when it commences in February 2010.

Even an experienced white collar criminal defense lawyer in Los Angeles might be challenged by a case as complex and as public as this one. An extensive investigation into financial practices, accounting ledgers, and other records may be required to build a solid defense; and it can be quite difficult -- even for experienced investigative teams -- to determine the "truth" about such convoluted financial situations.

Charges of embezzlement are relatively common in Hollywood, where individuals with lots of liquid cash -- such as movie stars and studio heads -- rely on proxies to manage their day-to-day financial operations. If someone's convicted of embezzlement in Los Angeles, he or she can be charged with either a felony or a misdemeanor. Common punishments can include:

• forced restitution
• fines
• jail sentences
• loss of professional credentials and licensing

If you or a friend or family member has been charged with embezzlement in Southern California or a Los Angeles DUI, it may behoove you to speak with attorney Michael Kraut of the Kraut Law Group. Attorney Kraut boasts extensive experience with white-collar crimes in Southern California. He's worked on literally dozens of relevant cases -- including a jury trial, which he argued successfully. He's a Harvard Law School alumnus and a former prosecutor for the city of Los Angeles. He has a natural acumen for the law, and he provides each client with compassionate and proactive representation.

Continue reading " Los Angeles Bankruptcy Case Pits Actor Nicolas Cage against His Former Business Manager " »

According to the AP, Los Angeles authorities have arrested and indicted 20 people for Los Angeles health care fraud over the past two weeks. The suspects allegedly scammed the Medicare program out of $26 million. The strike force that conducted the operation has been working since 2007 to combat criminal organizations that steal literally billions of dollars every year from the coffers of Medicare and Medicaid. All told, 331 people have been indicted in a series of 4 separate sweeps since 2007.

A Los Angeles white collar crime attorney will likely be assigned to help the defendants develop a strategy. A Justice Department official said the accused may have been active members in a criminal gang. One defendant, 30-year-old Michael Martinez, allegedly recruited friends and relatives to help with the scheme, which involved purchasing wheelchairs for people who didn't exist or who had already died. They also billed for hospital beds that no one needed or used.

If you're convicted of health care fraud or white collar crime in Los Angeles, penalties can be swift and can include a jail sentence, forced restitution to victims, and other fines. Many suspects make ill-advised statements to authorities that can compromise or even cripple their chances at an adequate defense. To develop a solid strategy often requires combing through reams of paperwork and potentially challenging the government investigation on technical points. In cases of Medicaid fraud in Southern California, defendants may not have much margin for error. Presidential Obama's Justice Department and Attorney General Holder have both publicly committed to reining in Medicare and Medicaid fraud and making examples out of those arrested to deter gang members and other organized criminal elements from further defrauding government entitlement programs.

Continue reading " 20 Suspects Arrested for Los Angeles Health Care Fraud: Allegedly Bilked Medicare of $26 million " »

Prosecutors and top rated defense attorneys faced off in court today over the allegations of sex, lies and screenplays in the David Letterman extortion case. Extortion is a serious crime. A person convicted of this offense will most likely be sent to state prison for many many years. Extortion is defined as the use of either threat of violence or some other criminal means to cause any harm, including financial, to another person or their reputation, to obtain property from someone else with their consent.

In this case, Halderman is accused of threatening to divulge personal information about Letterman that could cause harm to the entertainer's reputation.

The case revolves around Halderman, a well known TV producer,whose wife had a long running affair with Mr. Letterman. Halderman is the accused extortionist who wrote a screenplay about Letterman's sex life with female staffers. The case stems from Halderman, who was angry over his wife's affair could not find any way to make his wife stop the relationship with the late night comic. Records indicate that he continually confronted his wife about ceasing the affair. She apparently apologized and committed to her relationship with Halderman. Things seemed to be mending between the couple until he found that she had not stopped the affair.

Halderman decided to take his revenge out on the keyboard. Penning a script about Letterman's hostile work environment. Then on September 9, 2009, Halderman delivered a portion of the script, which contained changed names, to Letterman's driver, with documents which corroborated Halderman's facts in the script. He then gave Letterman an opportunity to buy the script rather then see it made into a movie. Halderman met two times with Letterman's lawyers and in taped conversations in which he was recorded demanding money. Afterward, a check for $2 million was given to Halderman.

Halderman's criminal defense attorney indicated that their client was merely selling a screenplay and by filing the charges, the prosecutors were infringing on his First Amendment right of free speech.

Continue reading " David Letterman Is Informed That The White Collar Fraud Was Not What Halderman Intended When He Demanded Money To Keep His Mouth Hush " »

California laws appear to be getting more harsh for those charged with Southern California DUIs. Legislators in recent months have begun to amass together to bring sweeping changes to the existing DUI laws. As of today, the laws are fairly straight forward. Los Angeles DUI defense Attorneys who are former prosecutors, and have trained law enforcement officers, are well versed in the penalties in DUI cases. The DUI defense attorney who who almost exclusively handle DUI cases are often in the best position to ensure that these penalties do not fall on their clients' shoulders. Those charged and convicted with a first time Los Angeles DUI can expect the following to occur:

1. Driver's License suspended for 4 months.
2. Must enroll in a 3 month DUI alcohol awareness program.
3. Pay huge court fines.
4. Receive a criminal record.
5. Be placed on probation for a period of at least two years.
6. Have a public record of conviction.
7. Mandatory jail sentence.
8. Sky rocketing insurance rates.

Because these penalties are so sever, it is always recommended that if a person is stopped and arrested for a Los Angeles DUI, that they immediately hire a pre-filing DUI defense attorney. Often times the criminal defense attorney is able to raise legal questions so that charges are either reduced or in some cases fully dismissed.

Those charged with a second time DUI have significantly higher penalties. A second time DUI is determined by a person having been convicted of a DUI sometime within the last 10 years before the most recent DUI. The penalties include the following:

1. Mandatory jail sentence of between 4 and 10 days and a maximum of 6 months in county jail.
2. Dui alcohol school that lasts 18 months at a minimum or a maximum of 30 months.
3. Driver's license suspended for 2 years.
4. Court can mandate formal probation.
5. Court may order a DUI interlock device. This device will need to be blown into before your car can start. While this may not seem that inappropriate, if your job requires you to drive at all, you may likely be fired.
6. Huge fines from the court.
7. Loss of car insurance or significantly increased fines.

While these penalties are sever, Sacramento legislators are considering apply the Three Strikes Law to driving under the influence cases, making the penalties even harsher. The law makers are publicly upset about cases in which people have been convicted of eight or nine separate DUIs are still able to get back behind the wheel after their sentence is complete.

The most recent statistics from the California Department of Motor Vehicles indicate that almost 1,500 people were killed in DUI related deaths in 2007. In addition to those killed, well over 30,000 people were injured in DUI accidents during the same time period.

Statistics from 2006 point to an alarming increase in the rise of Los Angeles DUIs, as well as driving under the influence cases throughout Southern California and the rest of the State. The State reports in excess of 5,000 drivers had amassed four DUI conviction within the last 10 years.

Based upon these statistics, law makes are talking about instituting a Three Strikes type law which would permanently take these repeat offenders off the roadways. Tougher DUI laws are already being enacted. Beginning next year, first time DUI offenders In Los Angeles who are convicted of either Driving under the Influence of Alcohol or drugs in violation of CVC 23152(a) or of having a blood alcohol level in excess of of .08% in violation of CVC 23152(b), will have to have a ignition interlock device installed on any vehicle they drive.

Continue reading " California Legislators Begin to Call for DUI Convictions To Fall Under Three Strikes Laws " »

During the last several months, the Los Angeles County District Attorney's Office as well as State and local law enforcement have been working diligently to amass a group of Los Angeles fraud cases, medicare fraud cases, and Los Angeles white collar criminal cases against local lawyers and chiropractors. In the last week, two dozen professionals were arrested for white collar fraud cases throughout Southern California and Los Angeles. The lawyers and chiropractors arrested were alleged to have participated in a large scale auto insurance fraud ring that Nearly two dozen men and women, including lawyers and chiropractors, were arrested Tuesday, accused in a large scale auto insurance fraud ring that netted hundreds of thousands of dollars.

There were at least four lawyers and four chiropractors that were arrested during the raid. The auto insurance fraud division of the DA's Office is prosecuting the case. Top rated white collar criminal defense attorneys are being hired to handle these fraud cases.

The lawyers and chiropractors are accused of ripping off over a dozen insurance companies by filing false medical claims and lawsuits. The case has grown to involve more then 28 defendants and may involve a conspiracy that involves in excess of 300 suspects.

The Los Angeles white collar fraud charges stem from a series of Los Angeles grand theft charges, including grad theft of personal property. The attorneys are charged with insurance fraud in Los Angeles County. One attorney also faces money laundering charges.

The charges of grand theft are in violation of Section 487 of the Penal Code. The prosecutors also added the the white collar enhancement under 186.22 of the Penal Code. This section allows for enhanced punishment if the suspect is convicted, including mandatory prison time.

Continue reading " White Collar Crimes in Los Angeles Nab Lawyers and Chiropractors in Fraud Case " »

Rising blood alcohol is a very viable defense in Southern California DUI cases. Before a person is arrested for a Los Angeles DUI, they are usually given what is commonly known as field sobriety tests. After the tests are completed, the officer often will ask the DUI driver to take what is known as a preliminary alcohol screening (PAS) test. This is a little handle held device used to measure the blood alcohol content of the driver.

In the old days, this test was not admissible in a court of law. Changes in the evidence code and the accuracy of the device has now allowed DUI prosecutors to use the PAS test in their case before a jury. After a person is arrested for a DUI they are usually taken to the police station or the a hospital for a chemical test. The test can be either a DUI blood test, or a DUI breath test. These tests also measure the amount of alcohol in the driver's blood.

Some people get very scared when they see the results of a the blood test. in many cases the PAS test result is lower then the blood or breath test taken at the police station. Once the test results are known to be 0.08% or greater,then the person is going to be charged with driving under the influence of alcohol in violation of CVC 23152(a). In most cases the person will also be charged with CVC 23152(b), having a blood alcohol level in excess of 0.08%.

The issue that now arises is what was the person's blood alcohol level at the time they were driving. He know that the results of the PAS test are lower then the secondary tests. Therefore, the blood alcohol level is rising and the results may not be the BAC level at the time they were driving. This theory is based upon the scientifically proven rising blood alcohol DUI defense. Top notch Los Angeles DUI defense attorneys know how to use this evidence to the benefit of their clients.

Most experts say that a shoot of alcohol or a beer take approximately 50 minutes to be fully absorbed into the blood stream. So the trick for the prosecution is to try to get expert evidence to determine what the BAC level was at the time of driving, not when the test are taken at the police station.

The argument then becomes, if a person has a BAC just over 0.08%, then they may not have violated the law when they were actually driving.

Continue reading " Rising Blood Alcohol Defense in Los Angeles DUI Cases " »