Convicted Felon – Can You Ever Escape the Stigma?

To groups all around the country, I say the following words – Every choice has a consequence! At times the consequences we face are short lived and often forgotten. But, there are some choices we make in life that have permanent long-lasting implications. They will never be forgotten – we, likewise, cannot hide from their continued effects.

As a Sales Executive for a public company and ethics speaker, I am open about who I am, my past and the lessons I’ve learned. I speak about them often and have found that most people (not all) find hope and inspiration from the words they hear. But, just when I think that the message – you reap what you sow – is beginning to take hold, I get a reply that sends me backward, realizing that no matter how much good you do – someone, somewhere, is standing ready to throw stones.

Today I got a post to one (well…actually all) of the videos that I have posted on YouTube. You can view the video by clicking on the image to the right on your screen. The posting must have been from a disgruntled former employee who felt the need to blame his or her failure on someone other than themselves. Here’s the comment with the foul language removed:

This is incredible! What a crock of XXXX! This guy is a crook and I have reported him to Texas Dept of Insurance as he is getting commissions off agents when he can not be licensed himself. The investigation is going on at present. I worked for this jerk, and he is no more than an ex-con, working for a company that knows his history but continues to keep him on knowing that he embezzled from families and back in the same line of work, only in a different state. This makes me sick!!!!!!!

It is always interesting to me the approach we, as humans take, when we face failure. It continues to ring true, no matter what spin you put on it, every choice has a consequence. In the company where I serve as Sales Exec. I have grown more successful sales execs for the company during my 15 year tenure than any other. Yet, for someone who found this career opportunity not for them, I am a crook. It is truly all a matter of perspective.

To set the record straight – which is a matter of public record – I was convicted of embezzlement and tax evasion for crimes which occurred in the mid to late 1980’s. I was a CPA at the time and not in any way associated with the industry to which I serve as a Senior Sales Executive today. I am not proud of my past, but I cannot change it either.

People do ask me if I had it to do over again would I change anything? The answer: yes…I wouldn’t do what I did. Prison is no fun. It was, however, an unusual learning environment. I learned many things but three come to mind:

1. Much of life is an illusion. That is shown in the comment above. It is an illusion to think that one persons failure at a job is somehow the result of my crimes over 20 years ago!
2. Every choice has a consequence. My choices certainly did. Not only did I go to prison, but many relationships I had in my life failed due to my choices and the consequences that followed. It is sad but true and the pain follows to this day.
3. Success comes in many ways. It is not always measured in material possessions, but more times than not measured in the impact that you have on another’s life.

So if there is a part of the above comment that is saddening, it is that the effort that I put into speaking in order to use my experience as an example to help others was somehow lost on this person. You can’t win them all…but perhaps, upon reflection, folks will come to understand that you might make a mistake, but you aren’t a mistake.

God bless. And if I could leave you with one thought it would be: Look past the illusion, make good choices and claim your success!

As always your comments are welcome!

Former NASA Contract Employee Guilty in Child Pornography Case! You Never Know Where They Will Come From!

The internet is a virtual playground for child predators. Parents, for the most part, have no idea what the environment is like and how dangerous it can be for those who need our protection – our children.

Likewise, we never know who the predators are and where they might come from. Often we think of them as the lowest element of society. Yet, sometimes we find that they are rocket scientists!

Ernst John Rohde, 63, a former contract employee at NASA Ames Research Center, Moffett Field, California, pleaded guilty on Friday to receiving images of minors engaged in sexually explicit conduct.

Rohde admitted to having used computers to access images of minors engaged in sexually explicit conduct from both the NASA Ames Research Center, Moffett Field, while employed there, and from his home in Stockton. During the plea hearing, the government prosecutor informed the Court that Rohde had downloaded thousands of images and videos of child pornography.

Every choice has a consequence. Often, however, we think of the consequences as only directly affecting the party in question – in this case – Rohde. That is an inaccurate assumption. The children – whose images were transmitted – were victims. In many cases, such crimes go undetected at home or under the nose of the parents, since they don’t know what to look for or how to spot inappropriate activities.

As a teen ethics speaker, I find that often I am called upon to speak to groups about protecting children from the predators found in cyberspace. While I wish this were not such a hot and important topic, I find that parents find great benefit when they understand what to look for and how to be more vigilant against child pornography and predators.

Comments are welcome!

Cheating the IRS Doesn’t Pay – Another California Man Sentenced to Prison for Filing False Claims with the IRS!

There are times when I write these blog entries that I wonder about the thought process behind the crimes reported. Although, looking back, some one could have said the same about me. So, I hope I never lose my sense of compassion, as I report on business ethics issues and white collar crimes.

According to a news release from the US Department of Justice – Roger Lexin Mai, age 33, was sentenced to 2 years in federal prison and ordered to pay restitution of $57,481 for presenting false claims to the Internal Revenue Service.

Mai, 33, of San Francisco, pleaded guilty on November 15, 2007 to 17 counts of filing false claims, in violation of 18 U.S.C. § 287. In pleading guilty, Mr. Mai admitted that from about January through April 2003, he filed 17 false tax returns with the IRS. He purchased names and social security numbers through the internet site, Craigslist for $20.00 per identity. He created false Wage and Tax Statements, Forms W-2, using the identities he purchased. He then created false U.S. Individual Income Tax Returns, which he filed electronically, claiming tax refunds of $107,049. The individuals to whom the identities belong did not authorize the sale or use of their identities.

Mr. Mai further admitted that in addition to the 17 false returns, to which he pleaded guilty, he electronically filed an additional 125 false Forms 1040 and Forms W-2, claiming refunds totaling $734,448.

As a white collar crime speaker, let me say from experience, you can’t fool the IRS. It isn’t worth it. You might think you can pull of the perfect crime, but most of the time, if not all of the time, the laws of the universe are in play. You will reap what you sow.

Just like many others, not only will Mai spend time in federal prison (time he won’t like), but he’ll have to pay his ill gotten gains back.

But like I say often, Every Choice Has A Consequence!

Fake Tax Returns Earns Charlene Saucier a Stint in Federal Prison – White Collar Crime Speaker Chuck Gallagher Comments

Now there are many things that one could do to earn time in federal prison, but the choice that Charlene Saucier made was just – dumb!

According to the US Attorney’s office, Saucier, age 37, of Sacramento, California was sentenced to 18 months in federal prison for her role in a scheme to submit fraudulent tax returns to the IRS. Oh, and by the way, she was also ordered to pay $2,273 in restitution for a refund that was issued based on a fraudulent return.

Yes – $2,273 – and for that she is going to prison for 8 months and will be marked as a convicted felon for the rest of her life.

TAVORIS TIMANE SAUCIER, 28, of North Highlands, California, was previously sentenced by Judge Jensen on November 13, 2007, to five months in prison and three years of supervised release in connection with the same scheme.

Husband gets five years and wife gets one and one-half. Not a good way to have a marriage!

CHARLENE SAUCIER admitted in her guilty plea that, in 2004 and 2005, the SAUCIERs recruited individuals willing to submit fraudulent tax returns to the IRS, and that she prepared tax returns for at least two such individuals using false income and dependent information so that they appeared to qualify for refunds under the Earned Income Credit (EIC) provisions of the tax code. She and her former husband had agreed to split with those individuals any refunds issued by the IRS as a result of the false claims. No refunds were issued by the IRS on those returns. She also filed false tax returns in her own name for the years 2003 and 2004, using false income information to claim EIC refunds, and received one refund for $2,273.

Now one might ask – isn’t that sentence a bit harsh for such a minor infraction? Perhap, but here’s the rest of the story. In 2000, CHARLENE SAUCIER pleaded guilty in Sacramento federal court to a nearly identical phony tax return scheme, in which she admitted preparing false tax returns seeking EIC refunds. She served a one-year sentence in that case.

Every choice has a consequence! As a business ethics and white collar crime speaker, I state those words often. Some of us learn and others have a harder time getting the concept, you do reap what you sow. Perhaps Charlene and her husband, Tavoris, will get it this time. For their sake – I hope so.

Business ethics speaker, Chuck Gallagher, signing off…

Your comments welcome!

Mortgage Fraud Alive and Well! Justin Barker Sentenced – 7 Years and $2.3 Million in Restitution

Mortgage Fraud – this time from Jacksonville, Florida. Seems that Justin Barker, age 31 and Robert Hulbert, age 45, both pled guilty to conspiracy to commit wire and bank fraud. Barker just received his sentence – 7 years in federal prison – $2.3 million in restitution and $4.4 million in forfeited property jointly and severally owned with other conspirators.

Seven years and likely bankruptcy. So what does Barker has to show for his fraudulent activities? A convicted felony record? By it’s end 20% of his life in prison? Both?

The scheme operated in 2005 and 2006. Barker negotiated the purchase of residential real estate properties, either on behalf of himself personally, on behalf of an entity he controlled, or on behalf of a third-party buyer. Barker, the entity, or the buyer entered into a purchase and sale agreement with the seller of the property. Barker then retained a licensed real estate appraiser to appraise the property at a significantly inflated price. The appraiser would appraise the property at the price that Barker requested, using inappropriate comparable properties and other fraudulent methods to obtain the price requested. At the closing on the property, Barker or an entity controlled by him would receive the difference between the loan amount, which was based on the inflated appraisal, and the actual purchase price, usually described with terms such as “assignment fee” or “payoff of second mortgage” that did not exist. This difference was the proceeds of the fraud.

During the course of the scheme, fraudulent loans totaling about $17.7 million were obtained on more than 40 properties. These loans would not have been approved but for the fraud. Barker received approximately $4.4 million in gross proceeds from the fraudulent transactions. To recover some of these illicit proceeds, the government seized from Barker a 2004 Bentley Continental, a 2007 Cadillac Escalade, a 2002 BMW 745Li, a 2005 Chaparral 330 Signature 36’ boat, a 1997 19’ Wellcraft boat, a 2006 Yamaha motorcycle, a 2001 Yamaha motorcycle, a 2-carat loose diamond, a 1-carat diamond necklace, a .5-carat diamond necklace, diamond stud earrings, and two Movado watches.eds of the fraud.

Every choice has a consequence! As a white collar crime and ethics speaker, Barker is a prime example of choices gone bad – very bad! There is a statement that is true – you will reap what you sow. While these next comments I am not proud of, but having spent time in federal prison for poor choices, I know first hand the answer to the question – was it worth it? The answer – a resounding – NO!

Barker will find that federal prison is no fun. Some call it “club fed” – let me say…it is fed – there is no club to it. Working every day for 12 cents per hour cleaning toilets and urinals is nothing that anyone would do at the “club.” My guess – Barker will have time to figure out a lot about himself. Perhaps, like me, when he emerges he will have a different perspective and can use his new found wisdom to benefit others.

More Mortgage Fraud reports to come…

Your comments are welcome!

T. Milton Street Guilty of Not Filing Tax Returns – Same Verdict as Wesley Snipes

The similarities are amazing. T. Milton Street was charged with mail and wire fraud along with failure to file tax returns. Just like in the Snipes trial – all the government got was a conviction for failure to file tax returns. The jury acquitted Street of mail- and wire-fraud offenses in an alleged scheme to sell an airport-maintenance contract they did not control.

“No corruption, no fraud. No corruption, no fraud,” Street, 68, said outside the federal courthouse in Center City after the verdict. “Failure to file – that’s what we were found guilty of. But as long as there’s no corruption, no fraud, and no wrongdoing with this whole issue, then I’m happy.”

While innocent of the more serious charges, Street admitted on the stand that he did not file tax returns for 2002, 2003 and 2004, claiming the federal income tax was unconstitutional. The jury did not accept that argument, which the Supreme Court has ruled is no defense no matter how sincere the belief.

According the the White Collar Crime Prof Blog: “this case has similarities with the prosecution against Wesley Snipes in that both were charged and acquitted of substantive charges beyond the failure to file taxes. In both cases, the individuals accused of crimes was only found guilty of misdemeanor tax offenses for some of the years in question. And in both cases the jury did not immediately reach a verdict.”

Now the question for both Wesley Snipes and T. Milton Street is will the government impose jail time for the crime they are convicted of? As a white collar crime speaker, I think they will. This, however, is speculation on my part. It just makes sense that two popular cases where folks who have garnered some attention and been convicted will not escape some jail time. IF they do – what message will be sent to the public at large?

Remember, we operate on a system of voluntary compliance. If that system has no teeth – then people won’t be motivated to comply.

Your comments are welcome!

Business ethics speaker, Chuck Gallagher, signing off…more to come!