Child Porn Law Upheld by Supreme Court! “Protecting Our Kids” Speaker Chuck Gallagher Comments

Justice Antonin Scalia wrote the majority opinion for the Supreme Court in which they upheld the law aimed at preventing child pornography. Scalia called internet child porn a “threat.” He’s right. As a frequent speaker on teen ethics and computer crimes, it is clear that the internet is becoming a distribution haven for child porn and more importantly it is a playground for child predators.

A federal law, the “Protect” Act enacted in 2003 made it a crime not only to produce and possess child porn, but also to “pander” material, conveying the belief that material contains minors engaged in sexually explicit conduct. The pandering provision covers anyone who “advertises, promotes, presents, distributes, or solicits” this material.

According to CNN in a recent report: As part of a 2004 sting operation, an undercover Secret Service agent (using the screen name “Lisa–n–Miami”) communicated with Williams in an Internet chat room. Williams allegedly wrote, “Dad of toddler has ‘good’ pics of her an (sic) me for swap of your toddler pics, or live cam.” He posted nonpornographic photos of a young girl and claimed he had “hc,” or hard-core, kiddie pictures, prosecutors contend.

The man then allegedly posted photos of youngsters involved in “sexually explicit conduct,” according to court records. Twenty-two other child porn images were found on his home computer.

A federal appeals court upheld a possession conviction against Williams, but threw out the separate soliciting charge, which carried a five-year mandatory minimum sentence. A three-judge panel concluded the provision was “substantially overbroad and vague,” and that “non-commercial, non-inciteful promotion of illegal child pornography, even if repugnant, is protected free speech.” In other words, the judges said merely talking about child porn is not necessarily criminal.

Today’s ruling by the high Court upheld the law by ruling that a provision dealing with “pandering” illicit material does not violate constitutional protections on free speech. The ruling was 7 to 2.

Scalia stated, “Child pornography harms and debases the most defenseless of our citizens. This court held unconstitutional Congress’ previous attempt to meet this new threat, and Congress responded with a carefully crafted attempt to eliminate the First Amendment problems we [earlier] identified.”

There has been some concern that some people might be targeted unfairly when engaged in lawful, artistic or editorial free speech. Example were used among them were mainstream movies such as “Lolita,” “Traffic,” and “Titanic,” all of which depicted scenarios in which underage girls were engaging in simulated sex.

According to the AP – Justice David Souter, joined by Justice Ruth Bader Ginsburg, dissented. Souter said promotion of images that are not real children engaging in pornography still could be the basis for prosecution under the law. Possession of those images, on the other hand, may not be prosecuted, Souter said.

“I believe that maintaining the First Amendment protection of expression we have previously held to cover fake child pornography requires a limit to the law’s criminalization of pandering proposals,” Souter said.

The reality is child porn is too easy to get and in so many ways our children aren’t protected. Odd, but the profile of a person convicted of child porn is – ANYONE. Most recently a Plano, Texas minister who was arrested in an internet sex sting operation has resigned his position as a pastor at a Dallas-area megachurch. Joe Barron was charged with solicitation of a minor. The solicitation was via the internet.

As a white collar crime speaker, unlike traditional forms of white collar crime, convictions related to Child Porn seem to carry far greater sentences and long term consequences. One of the most significant things that parents can do is become educated. Child porn is more accessible via the internet and that – THE INTERNET – is where parents need education. Social networking sites such as MySpace, Facebook and others are not dangerous on the whole, but Child Predators can use those mediums as a way to deceive and commit their crimes. I teach seminars and workshops on cyber-crime and what every parent should know to protect their children.

If you or your organization is interested in my newest program – PROTECTING OUR KIDS: What Every Parent Should Know About Computer Crimes – contact me at chuck@chuckgallagher.com.

Ovid Timothy Hughes Gets Prison Sentence – Former Employee Steals From Company!

As a business ethics speaker, it is interesting to observe how many people believe that theft from their company is somehow O.K.! What’s even more interesting is the fact that, in most cases, they don’t think they’ll be caught.

It takes three things to create a fraud: (1) need; (2) opportunity and (3) rationalization. Seems that Ovid Timothy Hughes fell into the trap of theft for which there is always a consequence.

Ovid Timothy Hughes of Madison, Tennessee was sentenced to 12 months and a day in prison for committing mail fraud. (By the way, wire and mail fraud seem to be the issues that the government uses today to gain an easy conviction)

Hughes previously worked for a well-known computer company. Shortly after the company terminated his employment, Defendant came to possess certain account and credit-card information of the company’s customers. From November 2006 to September 2007, Defendant fraudulently used that account and credit-card information to purchase thousands of dollars worth of computer equipment and other items for his personal benefit. Defendant committed his crime by posing, over the internet and in e-mails, as a representative of the companies whose account information he obtained. He would then order merchandise and have it shipped to his apartment, but have the bill for that merchandise sent to the company’s real address with the intent that the company would pay the charges without realizing the fraud.

Hughes scheme was extensive: During an 11-month period, Defendant used at least nine different account or credit-card numbers, to place over 70 different orders, with approximately ten different merchants. In addition to computers, Defendant also ordered various types of high-end electronic equipment and designer clothing. To conceal his fraud, he assumed several different false identities, created e-mail accounts in the names of those false identities, and made up several fictional scenarios to make his orders appear legitimate when he communicated with merchants’ sales representatives. Ultimately, Defendant caused or attempted to cause over $78,000 in loss, an amount later offset by the approximately $25,000 worth of computer equipment that U.S. Secret Service agents were able to recover at Defendant’s apartment at the time of his arrest.

Judge Trauger found the length and extent of Defendant’s fraudulent conduct to merit a 12-month prison sentence. Defendant was also ordered to pay over $29,000 in restitution to the victims for the merchandise not recovered and to remain on supervised release for three years following his release from prison. As noted by the Court, Defendant’s conduct occurred over nearly a year’s time, involved several very intentional steps on his part, and compromised “inside” information of his former employer. Accordingly, the Court determined that a significant prison sentence was necessary to reflect the seriousness of the offense.

“So-called ‘white-collar’ crimes are just that – crimes. And the U.S. Attorney’s Office is committed to aggressively prosecuting such crimes whenever and wherever they occur in the Middle District of Tennessee,” said U.S. Attorney Edward Yarbrough. “This case is yet another example of how criminals use the anonymity of the internet and e-mail, along with false identities and deception, to commit frauds. But it also demonstrates the hard work and skill of the federal agents who combat those frauds. The U.S. Attorney’s Office will continue to fully support the law-enforcement agents and agencies who help protect innocent fraud victims and bring those who target them to justice.”

Every choice has a consequence. While Hughes will find that the cost of the choices he made is far greater than the short term benefit he received, the “un-named computer company” will likely change their internal controls so that it will be more difficult to gain sensitive information.

White collar and business ethics speaker, Chuck Gallagher, signing off…

Taking a Dead Persons Social Security and Pension Earns Rolf Groer a Conviction!

And while I’m on the subject of Social Security Fraud (that was what my last post was about) – thought some might like this strange story of choices and consequences.

United States Attorney Mary Beth Buchanan announced that Rolf Groer, age 48, a resident of Allegheny County, has been sentenced in federal court in Pittsburgh, Pennsylvania to 5 years probation, including 12 months of community confinement, and ordered to pay approximately $22,000 in restitution as well as a $5,000 fine on his conviction of theft of government property and theft from an employee pension benefit plan.

According to information presented to the court Groer, between January of 2004 and September of 2006, embezzled approximately $27,904.00 in Social Security benefits, and approximately $14,699.19 in pension benefits paid by The Boeing Company. The Social Security and pension benefits were issued in the name of a person who had died in December of 2003.

As a business ethics and white collar crime speaker, I am a bit amazed that Groer got off with what seems to be a light sentence. But make no mistake, community confinement and 5 years probation is not insignificant. Groer’s life will change and any benefit he may think he got will be erased as he is now a convicted felon – which carries with it consequences.

As I say in most of my presentations, every choice has a consequence!

Business Ethics and White Collar Crime speaker – Chuck Gallagher – signing off…

Social Security Fraud Could Earn 27 Year Old Shawn R. Johnson Prison Time!

So you think you can pull the wool over the eyes of the government? Not so fast. Every choice has a consequence and one of the things that some of us learn the hard way is – what you do in the dark will be brought to the light. In other words, if you do something that is wrong it will be discovered.

You reap what you sow! I know. I sowed bad seeds and reaped the consequences. And now it seems that the same may be true for a young 27 year old.

Shawn R. Johnson, of Fayette County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of Social Security Fraud.

The one-count indictment named Shawn R. Johnson, age 27.

According to the indictment, Johnson failed to disclose to the Social Security Administration employment with and earned income from Polito Custom Carpet, located in Hopwood, Pennsylvania, and that such events affected his continued right to receive Supplemental Security Income benefits.

COMMENT: Now I can assure my readers that the minor benefit that Johnson received is not worth the cost he will pay. Facing up to 5 years in prison, a fine of $250,000, or both, Johnson will soon understand that cost of wrong choices is substantial.

Every choice has a consequence is a comment I make in most presentations. As a white collar crime speaker, I speak from first hand experience about the truth about consequences. Reality is – no one escapes the consequences of their choices. While Johnson may have enjoyed the money for a time and avoided the consequences – they did not avoid the consequences all together. Prison is no fun and Johnson is facing several years plus substantial restitution for this conviction. Likely he will serve time and that will prove to be a dramatic change from his prior activities. You do reap what you sow.

White Collar Crime Speaker – Chuck Gallagher – signing off…

Ohio Pediatrician – Robert Reinhold – Pleads Guilty to Receipt of Child Pornography! Sad and the Consequences will be Significant!

Several programs are underway to catch those who victimize children via child porn. In this case, Operation Predator, a nationwide ICE initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders, and child sex traffickers was the vehicle to catch a pediatrician who engaged in child porn.

Operation Predator is a comprehensive initiative designed to protect young people from child pornographers, alien smugglers, human traffickers, and other predatory criminals.

Robert Reinhold, age 55, and a pediatrician in Troy, Ohio pleaded guilty to one count of receipt of child pornography.

According to a statement of facts filed with his plea and agreed to by Reinhold, between April 22, 2003 and October 24, 2007, Reinhold knowingly received and possessed visual depictions of minors engaged in sexually explicit conduct, those depictions having been mailed and transported in interstate and foreign commerce by any means, including by computer.

Reinhold admitted that he received and possessed the child pornography at his house, by purchasing multiple subscriptions to commercial child pornography websites which offered members-only access to images of child pornography. He saved more than 600 images and movies on his home computer and on an external hard drive connected to it. Reinhold printed out hundreds of the images which he kept and stored at his home. Among the child pornography found were images of prepubescent minors and minors under the
age of 12. As part of his plea agreement, Reinhold agreed to forfeit to the United States his computer equipment and storage media, as well as his interest in his house.

The Dayton Daily News reported: TROY — Catherine Peoples, 34, of Troy is a mother of four with a fifth child on the way who has taken her children to pediatrician Robert Reinhold for seven years.

She said that in light of the doctor’s arrest Wednesday on charges of possessing child pornography, she’ll be taking her children to another pediatrician.

Peoples said she learned of the arrest while reading news stories on the Web.

“He gave good care to children,” she said. “I’ve always been in the room with my kids” when they visited, she noted. “The thought is really upsetting. It’s really a shock. I would not have suspected this.”

COMMENT: Whether Operation Predator or Project Safe Childhood – the government’s efforts to crack down on Child Porn is paying off. Multiple arrests are being made across the nation with substantial indictments and long prison terms that follow. Every choice has a consequence. In the case of Child Porn – it is likely that one will be caught one way or the other and the consequences are substantial.

Federal law mandates forfeiture of both personal and real property used or intended to be used to commit or
promote the commission of certain child exploitation offenses, including receipt or possession of child pornography. Reinhold agreed to pay to the United States more than $130,000, which was the value of his interest in the house.

Receipt of child pornography is punishable by at least five and up to 20 years imprisonment, five years up to a lifetime of supervised release, and a fine of up to $250,000.

“Investigators have determined that these are images of real children,” Lockhart said, “but at this time, none of the victims appear to be patients of his.”

COMMENT: As a white collar crime speaker, unlike traditional forms of white collar crime, convictions related to Child Porn carry far greater sentences and long term consequences. One of the most significant things that parents can do is become educated. Child porn is more accessible via the internet and that – THE INTERNET – is where parents need education. Social networking sites such as MySpace, Facebook and others are not dangerous on the whole, but Child Predators can use those mediums as a way to deceive and commit their crimes. I teach seminars and workshops on cyber-crime and what every parent should know to protect their children.

Since Operation Predator was launched in July 2003, ICE agents have arrested more than 11,000 individuals, including more than 110 in Ohio.

“It a tragedy when those who are supposed to protect children choose to sexually exploit them instead,” said Brian M. Moskowitz, special agent in charge of the ICE Office of Investigations in Ohio and Michigan. “Fortunately, the combined aggressive efforts of ICE and the U.S. Attorney’s office helped prevent Mr. Reinhold from further exploiting the child victims by illegally using and sharing their images.”

Robert V. Reinhold, 55, will be sentenced Aug. 1 by U.S. District Judge Thomas Rose. Under the plea agreement reached, should Rose accept it, Reinhold will be sentenced to a five-year term. He could have faced a maximum 20 years in prison.

ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.

If you or your organization is interested in my newest program – PROTECTING OUR KIDS: What Every Parent Should Know About Computer Crimes – contact me at chuck@chuckgallagher.com