money laundering

BurgerFi Chain Involved in Embezzlement Lawsuit

Andrew Stine — Mon, 30 Apr 2012 12:56:20 GMT

The popular BurgerFi chain has been blossoming throughout South Florida. Many residents in the area have nothing but positive remarks when it comes to the chain. The restaurant also boasts its humane and natural meat, which is becoming a must-have in reputable burger restaurants. However, the chain is falling under some scrutiny as the current partners of the BurgerFi business entity are filing several lawsuits against David Mainiero after he abruptly split from the company earlier this year, without giving a reason why.

BurgerFi and Competition

According to an article in the Palm Beach Post, Mainiero’s ex-partners claim he was stealing from the restaurants to support his lifestyle, decorate his home and open competing restaurants. The estimated loss is around $1 million, according to Lee Goldberg, one of the ex-partners.

The lawsuit alleges that beginning in 2010, Mainiero, and wife, Lynn, started diverting money to themselves from vendors who served the restaurants. For instance, the lawsuit claims between December 2010 and March 2011, Southern Wine & Spirits paid $73,500 to a Mainiero entity, instead of the restaurants.

The lawsuit also claims that Mainiero, during a trip to California to scout locations for BurgerFi, decided instead to open a competing burger joint called Urbun Burger in Laguna Beach, Calif., using the trade secrets of BurgerFi. The lawsuit claims that $67,500 was paid by Southern Wine to Urbun, even though the money was supposed to be for BurgerFi. Even West Palm Beach-based Cheney Brothers provided equipment valued at $5,000 that was intended for the restaurants but instead was diverted to David’s son, David Jr., and Urbun, the lawsuit claims.

And that’s not all. Restaurant Development Group LLC, the entity that owns such eateries as The Office and Vic & Angelo’s, just filed a “cybersquatting” lawsuit in U.S. District Court, alleging the Mainieros have not surrendered the restaurants’ websites, vicandangelos.com and theofficedelray.com after turning over ownership of the two restaurants. They allege in the lawsuit that the Mainieros have “hijacked the domain names and attempted to use them as bargaining chips.”

Goldberg said he believes law enforcement is looking into the allegations of theft. But Robert Saraga, an attorney for Mainiero, said he has no knowledge of any law enforcement investigation. He also said he planned to file an answer, with counterclaims.

Money Laundering and Embezzlement

Money laundering is a felony, which may be charged in state or federal court. The penalties include jail time, a fine, and the forfeiture of any cash seized by the government. If the cash from an illegal enterprise is deposited in a bank account that contains other funds, the entire bank account could be seized.

Embezzlement is the act of dishonestly appropriating funds or assets for one's own use rather than its intended use. The charge is also a serious felony.

If you have an investigation filed against you for money laundering or embezzlement, you are in for a long legal process. A criminal defense lawyer can conduct his own investigation into your case to make your you have the best possible proactive defense in this situation.

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Can You Be Forced to Decrypt Your Computer?

Andrew Stine — Mon, 27 Feb 2012 05:11:49 GMT

According to an article posted on CNet, a federal judge in Colorado ruled in January that American citizens can be ordered to decrypt their hard drives to allow police room for more thorough investigations when acting on search warrants for cases that involves things like wire fraud or child pornography. This ruling could truly set precedents in terms of privacy and is encouraging people to argue the Fifth Amendment.

The Fifth Amendment in Question

According to the article, Judge Robert Blackburn ordered a Colorado woman accused of being involved in a mortgage scam to decrypt the hard drive of a laptop computer. She was charged with bank fraud, wire fraud, and money laundering in an attempt to falsify court documents to illegally gain titles to homes near Colorado Springs. Blackburn, ruled that the Fifth Amendment (an amendment that states no one should be compelled in any criminal case to be a witness against himself) does not provide protection from his order.

Blackburn wrote: “I find and conclude that the Fifth Amendment is not implicated by requiring production of the unencrypted contents of the Toshiba Satellite M305 laptop computer.”

This is not the first time this issue has been addressed. In 2010, a federal judge in Michigan stated that a man accused of receiving child pornography did not have to relinquish his password in an effort to protect his invocation of his Fifth Amendment privilege. Clearly, these recent events will set a precedent in how legislation interprets Fifth Amendment protection when it comes to encrypted data.

The key to this entire situation is what exactly a password amounts to. Many of the arguments are saying that PGP passphrases are similar to a person holding the key to a safe containing incriminating documents. In this case, a person can be legally compelled to hand over the key. However, the Fifth Amendment shields a person from “compelled testimonial communications,” which protects a person from admitting encryption passwords.

Criminal Defense

If you have been accused of fraud (including wire fraud), and have questions about what documents or files you are required to hand over to the court, contact a criminal defense lawyer immediately.

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Ponzi Scheme in Fort Lauderdale

Andrew Stine — Fri, 16 Dec 2011 15:51:00 GMT

One of two Ponzi scheme suspects has been freed from jail on bond after he and his alleged accomplice were arrested on charges they defrauded more than a dozen investors out of more than $6 million, records show.
Victor Brown, 54, of Hollywood, posted $150,000 bond for his release from Broward's Main Jail on Thursday evening. On Friday morning, his business partner, Roger Green, 78, of Stuart, remained jailed on the same bond amount. Both men were taken into custody Wednesday on charges of racketeering and conspiracy to commit first-degree racketeering, authorities said.

The Florida Department of Law Enforcement began investigating the men and their Fort Lauderdale company, Military Air Parts International, after people claiming to have been victimized stepped forward with complaints, a probable cause affidavit said.

From 2004 to 2007, Brown and Green raised millions of dollars by promising 18 percent returns on the resale of parts for military transport aircraft. But the pair, in control of company bank accounts, made out checks to themselves to withdraw a total of $1.7 million, and used debit cards to make other "extensive cash withdrawals," the FDLE said.

In what investigators described as a Ponzi scheme, Brown and Green kept the deception going by paying off some investors with funds raised from other investors.

As part of their inquiry, FDLE agents obtained sworn statements from 17 of 24 identified investors who were defrauded, the affidavit said. One investor told authorities that he kept investing because he received his money back from an initial transaction and "thought everything was legitimate," the affidavit said.

Brown's attorney, Thomas Sclafani, said the bulk of the alleged acts occurred more than five years ago, and questioned whether the alleged crimes were beyond the statute of limitations. The statute prevents charges from being filed when a certain amount of time elapses after the alleged crime's occurrence.

"I have a serious question about whether this case can even go forward," Sclafani said. "Even if it does, my client's innocence will be established in court."

A Ponzi scheme is a specific type of fraudulent investment. It is the act of using money received from investors to pay off other investors and personal expenses. Ponzi schemes are tactically organized to avoid using real profit for payments.

Usually when a Ponzi scheme makes the news, it involves short-term returns that are abnormally high – making the perpetrator more noticeable. Ponzi schemes only work if there is an increasing flow of money from investors. Without an increasing amount, the plan will eventually collapse in on itself if the money flowing in is not enough for return payments to the investors involved.

Fraud Criminal Defense

Fraud charges in the state of Florida are taken very seriously. Depending on the amount of money you are accused of, the minimum years in prison can vary between five and 30 years. The fine can vary from $5,000 to $300,000. If you have been accused of fraud, or worse, creating a Ponzi scheme, you need a criminal defense lawyer in your arsenal immediately. Only a criminal defense lawyer will be able to understand your circumstances and help avoid maximum sentences.

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